Interview: India's Nocil expects stronger sales as buyers pursue China Plus One

Mafatlal Industries

19/10/2022 07:40

By Sethuraman N R
       BENGALURU, Oct 19 (Reuters) - India's largest rubber
chemicals maker Nocil Ltd  NOCI.NS  is expecting higher sales
volumes in the next couple of years, as firms globally push for
diversified supplies beyond top producer China that is battling
supply constraints.
    Part of an over 100-year old Arvind Mafatlal Group (AMG),
the Mumbai-based Nocil produces antidegradants, antioxidants,
accelerators that are used by the tyre industry and other rubber
processing companies.
    In the backdrop of firms globally pursuing the China Plus
One strategy, Nocil's talks with customers in Europe, Americas,
Southeast Asia and Japan have become "deeper and more
strategic," Priyavrata Mafatlal, vice-chairman of AMG, told
Reuters in an interview.
    "What China Plus has done for us globally is, it has
broadened the discussions with customers to increase our volume
share," Mafatlal said.
    In the last two years, Nocil's profit grew more than
five-fold to 664.8 million Indian rupees ($8.07 million), driven
mainly by strong demand for tyres, while China was hit by supply
bottlenecks during the pandemic. 
    "Even pre-pandemic we were reliable suppliers in the export
markets of Europe, Americas, Southeast Asia and Japan, which
constitutes a major share of tyre makers in the world outside of
China," Mafatlal said.
    Nocil is also eyeing strong demand from the domestic
markets, where China has a strong footing, with the government
encouraging its 'Make in India' programme that is aimed at
boosting local manufacturing.
    Nocil's sales volume had grown 17% on-year in the quarter
ended June. Its shares are up over 11% so far this year after
gaining a staggering 62% in 2021.
($1 = 82.3340 Indian rupees)
 (Reporting by Nallur Sethuraman in Bengaluru; Editing by Neha
Arora)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))