Shree Pushkar Chemicals to forward integrate into dyes manufacturing

 
Dyes intermediates generates about 76% of the company’s revenues, while other three businesses - cattle feed, acids and fertilisers – account for the rest.
 
Speaking about the rationale behind forward integration plan, Makharia said, “The company, which produces 10 dye intermediates at one location, is into deep route backward integration. Hence, moving up the value chain with the foray into dyestuff manufacturing makes logical business sense. At the same time, demand for dyes is witnessing high growth in India, and thus providing huge opportunity for us.”
 
About 15 years back, the production of dye intermediates shifted to China and India with growing awareness of environment in Europe, and these two countries became major sourcing hub for global dye manufacturers. However, with China adopting a stricter environment regulations in the last couple of years, dye manufacturers are looking to increase their intermediates procurement from India. In addition, the shifting of textile manufacturing from China to other Asian countries has also forced global dyes maker to change their focus from China to India.

 
“USP of our company is that we are a zero-waste company. While other companies have to treat the waste (by-products) from their manufacturing facility (which increases their cost of production), we use waste as a starting material for our other products. Due to our zero-waste business model, we are in advantageous position to leverage the emerging opportunities as global companies are eyeing to procure raw materials from companies that are adopting environment-friendly processes,” said Punit Makharia.
 
In addition to dyes expansion, Shree Pushkar Chemicals is planning to set up a manufacturing plant for sulphate of potash (SOP), a soluble fertiliser. The company will invest about Rs 19 crore in the SOP plant, which will have 10,000 tonnes per year capacity.