Indian chemicals maker Epigral expects revenue from newer products to surge this year

Epigral

21/09/2023 11:42

By Savio Shetty
       Sept 21 (Reuters) - Indian chemicals maker Epigral
 EPIG.NS  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.
    
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($1 = 83.0434 Indian rupees)

 (Reporting by Savio Shetty; Editing by Sonia Cheema)
 ((savio.shetty@thomsonreuters.com;))