In an interaction with Siddartha Cherukuri, Joint Managing Director of Vishnu Chemicals Limited
Siddartha Cherukuri, Joint Managing Director of Vishnu Chemicals Limited, discusses the company's remarkable performance in Q3FY23, its strategic priorities, and future plans
In this interview, Siddartha Cherukuri highlights the key factors that have contributed to the company's outstanding achievement and provides insights into the speciality chemicals sector's growth potential. He also discusses the recent announcement of the company's investment in a greenfield project in Gujarat and Andhra Pradesh and sheds light on new developments in the field of speciality chemicals, including the creation of the world's whitest paint.
The company witnessed a remarkable performance in Q3FY23, with an 11 per cent increase in net sales and a 29 per cent surge in net profit. For the first nine months of FY23, net profit surged by a remarkable 91 per cent YoY. What were the contributing factors?
The performance of Vishnu Chemicals is an outcome of its continued execution and demonstrated progress on its key priorities. The company has built a world-class infrastructure in an industry with high barriers to entry, and customers rely on it for consistent supply as performance ingredients are critical to their end products. Vishnu Chemicals also has a strong moat of being a leader in a niche industry, and its products continue to see robust demand across varied end-user applications in domestic and export markets.
Additionally, the company has a unique backward integration plant that is a milestone for the company and implies that it will be healthy and profitable while focusing on sustainability. The company has also generated strong cash flows over the years, which has helped in its growth.
Could you provide an overview of what we can expect from the speciality chemicals sector in the coming years?
India is emerging as a preferred manufacturing hub for speciality chemicals, and the nation is well-positioned to execute niche chemistries for economic and social change. The industry has high growth potential, and the more progress made, the more it will be able to inspire the best of young talent to take up manufacturing as a career of choice.
Could you provide some insight into the recent announcement of investing Rs 1000 crore towards the development of a greenfield project in the states of Gujarat and Andhra?
The expansion envisaged will take place in stages over five years, and the company will maintain a healthy balance sheet while executing its disciplined capital allocation strategy. The company is relentlessly pursuing niche chemistries for expansion and will be prudent with its investments, balancing the macroeconomic environment with its overall strategic outlook.
What are the top three priorities in your company's strategic plan?
The company's strategic plan is centred on EBITDA and PAT expansion through complex manufacturing of diversified performance-enhancing speciality chemicals. Its key priorities include understanding customer needs to form long-term relationships, nurturing speciality chemicals that are critical in nature with limited competition globally, and minimizing waste streams by adopting new techniques to eliminate and minimize environmental impact.
What are the new developments happening in the field of speciality chemicals?
Climate change is a real thing, and the creation of the world's whitest paint using a Barium Chemical, which cools outdoor surfaces by more than 4°C, is a path-breaking innovation. Vishnu Chemicals is expected to commission the brownfield expansion for producing the Barium Chemical from India's largest Barium Chemicals facility. The company is excited about this development as it delivers results to homes and offices in the most effective manner, such as painting rooftops.