Indian chemicals maker Epigral expects revenue from newer CPVC products to surge this year
(Reuters) - Indian chemicals maker Epigral will keep diversifying its business and expects the share of revenue from new products to expand significantly this year, its chairman and managing director told Reuters on Thursday.
The company, previously known as Meghmani Finechem, manufactures and sells chlor-alkali and its derivatives and set up a chlorinated polyvinyl chloride compound (CPVC) manufacturing facility last month in the state of Gujarat.
"Four years ago, we were (present) only in chlor-alkali. At that time, we were catering to seven industries," Maulik Patel told the Reuters Trading India forum.
The company now caters to more than 15 industries after entering segments like chloromethanes (CMS), hydrogen peroxide, chlorinated polyvinyl chloride (CPVC) and epichlorohydrin, Patel said.
Epigral is the largest producer of CPVC and the first to produce epichlorohydrinin in India, with its products being used as raw materials in industries ranging from pharmaceuticals to pipes.
The specialty chemicals market represents 22% of India's overall chemicals and petrochemicals market and is valued at $32 billion, according to KPMG.
Patel sees the Ahmedabad-headquartered company increasing its share of derivative products over the current and next financial year.
"As of fiscal year 2023, derivative and specialty segment contributed 30% of 21.84 billion rupee ($263 million) revenue, and by the end of this financial year it should reach 45% or 50%."
Epigral plans to triple its exports, which currently contribute to 4% of sales, over the next two years, Patel said. It exports its products to more than 20 countries including South Africa and the United States.
"Few of our products have good demand in global markets, like Epichlorohydrin. We will also have an export opportunity once we commission our Chlorotoluene plant. Exports could rise between 10% to 15% over the next couple of years," he added.