Geo-political issues remained the biggest headache for the chemical industry
Vipul group of companies currently serves clients across a broad spectrum of industries ranging from textile, paint, printing ink, cosmetics & food industry, plastic and several other industries and has presence in both local and international markets. Mihir V Shah, Executive Director, Vipul Organics, shares the company’s performance and the expectations from 2025 to Divya Shetty.
How do you see your company’s performance in the calendar year 2024?
Our topline stood at Rs 1.17 billion in the first three quarters of the calendar year 2024, as against Rs 1.06 billion in 2023 for the same period, marking a 10.38 per cent growth, despite a lackluster year with geo-political issues, global elections and an understated economic growth. The saving grace was a robust Indian market, which was subdued in one quarter due to elections, but made a strong resurgence and we were able to benefit from our continued domestic thrust.
In the first quarter of this calendar year (Q4 of previous fiscal), our topline grew by 29.8 per cent Y-o-Y and PBT and PAT by 19.5 per cent and 34.5 per cent respectively. This was an impressive quarter and the growth was mostly due to the exports opening up after the geo-political situations starting to stabilize. In addition we witnessed a good response to newer verticals like Paper, cosmetics and seed colouring, etc.
In the second quarter of the year (Q1 of new fiscal), the topline went up only marginally but the bottom-line saw pretty decent uptick because of value added products and optimization at the manufacturing end. Since this was the year of global elections, where half of the world’s GDP went into elections – India, US, South Africa, UK, Mexico, Venezuela, Indonesia, amongst around 30 more, the buying was cautious and the countries developed a wait and watch policy, causing sluggish growth.
In the third quarter of the year (Q2 of the new fiscal), the topline grew by 7.7 per cent Y-o-Y and PBT grew by 64 per cent Y-o-Y and 11 per cent Q-o-Q. This was because of the continued domestic market growth for us.
Despite the global challenges for the industry as a whole, we managed a pretty decent growth in revenues and did massive capacity expansion at Ambernath Facility. We also opened up new verticals, esp. Paper where we saw some amazing success. In addition, our continued focus on new product development saw us develop a refined grade of organic intermediate for manufacturing a specialty chemical to be finally used for the Automobile Industry
What do you think were the gains as well as the missed opportunities in 2024?
Geo-political issues remained the biggest headache for the chemical industry. From 2020 onwards, we had started to focus on the domestic markets to hedge our bets and our focus started to pay off in 2023-2024. In the year 2024, we have increased the market share in domestic markets and today around 35 per cent of our topline comes from within the shores and this is the reason why our topline continues to grow, slowly but surely, despite headwinds. Despite challenges, we are bullish on the segment and this is witnessed in our capex in the year and this will start reflecting in our revenue growth shortly.
We can’t really think of any missed opportunity in 2024. In fact, we did quite well, all things considering.
What your expectations for the calendar year 2025 and fiscal year 2025 (in terms of exports, domestic operations, impact of global crisis)
We are optimistic about growth opportunities in the export market, particularly with favourable economic conditions under current global leadership. Our focus on innovation, sustainability, and strategic market expansion underscores our commitment to meeting the evolving needs of our customers worldwide.
Some of the key drivers of growth and the reason for our optimism are;
Adoption of digital printing inks: As digital printing technology gains widespread acceptance, the demand for high-performance pigments tailored for this market continues to grow. We offer advanced pigment solutions that ensure vibrant, durable, and eco-friendly outputs, making us a preferred partner for industries like textiles, packaging, and publishing.
Development of high-performance pigments: Our R&D team is dedicated to creating innovative pigment solutions with enhanced colour fastness, light stability, and environmental compliance. These products cater to diverse industries, from automotive coatings to specialty applications in inks and plastics.
Focus on sustainability: We’ve integrated sustainability into our operations by producing eco-friendly pigments that align with stringent environmental standards. Our products are designed to reduce carbon footprints while delivering superior performance.
Advanced manufacturing capabilities: With state-of-the-art production facilities, we ensure consistent quality, scalability, and efficiency. Our ability to produce custom pigments tailored to client needs strengthens our competitive edge in global markets.
We also believe that we will witness better than peer group growth because of our Strategic Expansion Initiatives:
Entering untapped markets: We are actively expanding our distributor network into the Northeast region, a market that offers significant growth potential. This move reflects our vision of increasing accessibility to our products across India.
Strengthening export reach: We export to over 45 countries and continue to build strategic alliances with international partners to enhance market penetration and explore new geographies.
Enhancing internal sales processes: By streamlining our sales funnel, we aim to increase conversion rates and reduce client churn. Data-driven strategies and improved customer engagement are central to this initiative.
Participation in global exhibitions: We actively participate in international trade shows and exhibitions to showcase our cutting-edge pigment solutions and connect with global industry leaders.
Commitment to customer-centric solutions: Vipul Organics focuses on understanding client requirements and delivering tailored solutions. Our agile approach ensures quick turnarounds and effective problem-solving, further strengthening client trust.
