Ramesh Patel, Director, Bodal Chemicals, has vast experience in commercial and financial domains. He has in depth knowledge of import export procedures, financial market and Forex market. He has the ability to manage the affairs of the company in an efficient and effective manner. He has traveled extensively to establish and market company’s products to MNCs and end users.
Bodal Chemicals Ltd. is one of the India’s leading manufacturer of dye intermediates and dyestuff, which are produced in 8 units, located in Gujarat. The products are marketed across the world. The company also manufactures a range of dye intermediates, which are consumed to manufacture dyes used in Textile, Leather, Plastic & Paper industries. Bodal has distribution facilities strategically located throughout Europe, Asia and Asia- Pacific region. The company has dominating role in international market, which consume 50% of production.
Replying to Anurag More of IIFL, Ramesh Patel, said, "We are looking at some new areas of business and will announce the same after they are formally finalized."
How do you see chemical industry in India developing? What is your share in the industry?
We have been witnessing shifting of this industry from west to east globally. It is expected that this trend will continue in near future also. India and China are the major players in this industry and hence growth of chemical industry in India will be inevitable.
When we say ‘chemical industry’ it is a very wide term and our share in it is very small. But if we talk about Dyestuff and Dye Intermediates our share is significant and it will further grow in near future.
What are the new trends you being seen in the dyestuff industry?
Dyestuff Industry in India is showing sustained growth. At present the Indian Dyestuff industry’s’ market share in Global Market is 10%, and looking at the growth of Indian Dyestuff Industry it will be more than 40% in coming 5 years span.
Global Textile Market is growing at CAGR of 4%. At present almost all Dyestuff Manufacturing has shifted from Europe and US to Asian countries like India and China, hence in coming years India will become hub for Dyestuff Business.
Brief us about your product portfolio?
Bodal has become the only company in India to offer Basic Chemicals, a wide range of Dye intermediates and dye stuff. We have expanded our range in keeping with the global market trends and today we manufacture over 25 varieties of Dye Intermediates and around 150 variants in Dyestuff. We have recently launched "Bodactive", a special brand targeted at the Textile Industry.
What makes you different from other players?
Our unique approach of backward & forward integration, optimum usage of resources and ensuring commitment to customers is our strength. We recognize market trends early and deliver highest quality of product at reasonable prices. Continuous innovation, Diversified product portfolio, Customer satisfaction and quality set us apart in the market.
Tell us about your sulphuric acid capacity?
Bodal Chemicals has already set up a Sulphuric Acid Manufacturing Plant at Padra, near Vadodara, recently. The Suplhuric Acid plant has a capacity of 1.45 lakh tons per annum. From this 70% will be for captive consumption and 30% for sale to other companies. It has commenced commercial production and we have invested Rs 62 crore in this plant.
Steam generation from the plant will reduce overall fuel cost for the company. With major volume of raw material being produced in-house, there will be saving in the transportation cost for the company.
Any plans to enter a new segment?
We are constantly innovating and improving on our product range. We are considering some new areas and will disclose the same once they are formally finalized.
Brief us about distribution facility?
Since Bodal’s main thrust area is to be self sufficient by offering various backward Integrated Products, our prime goal is to cater to the end user market with Bodal brand name through company’s own Distributor Channel Network in India and across the globe. Bodal has distribution facilities strategically located throughout Europe, Asia and Asia- Pacific region and exports about 50% of the production.
Bodal will set-up its own distribution network- nationally and globally. Across India, there will be total 25 distributors. For international markets, in the first phase, Bodal will establish its own distribution channel network, in 7 to 10 countries, where demand & potential for Dyes is highest. In the second phase, we plan to cover approximately 35 different countries across the world, with our own distribution channel partners."
Tell us about your R&D facility?
Company has four in-house laboratories. Apart from doing quality checks for our products they are busy in continuous up gradation of our products compared to what are available in the market.
What is the revenue break up between domestic and international?
At present almost 50% of revenue is generated from export and balance 50% from local market. Further, at present, the company generates revenue mainly from two categories i.e. Dye Intermediates (64%) and Dyestuff (36%). Due to capacity expansion and emphasis on the segment, share of the Dyestuff will increase to 50% in two to three years. From the current financial year, company will also be active in the field of basic chemicals.