Manali Petro adopts strategy to accelerate growth, revamps management

While the company is scouting for acquisitions, it is also focusing on the management team with global expertise and eyeing strategic and product domains, says a senior official of the company

Manali Petrochemicals, part of the SPIC Group, has readied a plan to accelerate its growth — an increase in revenue from outside India and a better balance between commodities and value-adds.

It is looking for acquisitions and has strengthened the management team, with global expertise, says Muthukrishnan Ravi, managing director. In late 2016, he recalled, they had acquired Notedome, a UK-based maker of neuthane polyurethane cast elastomers, for around Rs 1.2 billion. This was to help the value-added contribution. Notedome caters to customers in 45-odd countries; the plan is to expand this in South Asia. The current value-added contribution is around 30 per cent (in value terms) and the aim is to raise this to 50 per cent in two or three years. These products give better and sustained margins, while commodities are subject to fluctuation, said Ravi.

The general visiuon is to grow from an indigenous industry pioneer to a global chemical solutions provider. So, it is seeking opportunities to enter into new regions, technologies and product lines, beside strategic acquisitions. The revenue share from global operations is sought to be raised.

Toward these aims, the company recently inducted Abhishek Krishnan as head of strategy and E Venkatasubramanian as head of global marketing. Krishnan has over a decade of experience in strategy at entities in New York and London, most recently at JP Morgan. Venkatasubramanian has a little over 20 years of experience in various chemical industries. His most recent assignment was with Bayer/Covestro, of around 12 years. These inductions, said Ravi, would also help in expanding the product portfolio.

"The enhanced management team will also keep us in good stead to meet the technical challenges, steep competition, geopolitical risks, market fluctuations and even price wars with large multinational corporations, which can afford slimmer margins," he added.

The company's net profit was Rs 159.5 million during the quarter ended June, as compared to Rs 21.4 mn a year before. Total revenue was nerly Rs 1.8 billion for the quarter, as compared to Rs 1.6 bn in the same period last year.