Interviews

Interviews



Pradip Kumar Menon
CFO, Pidilite Industries Ltd.

"We have bounced back at a faster rate than the market"

What is the key learning Pidilite Industries has taken from the current pandemic?
The unprecedented nature of the pandemic took everybody by surprise, especially the lockdown. It became imperative for organisations to be agile from top to bottom as one had to assess situations precisely, adapt and respond quickly to every changing event. At Pidilite Industries we first made sure that our people were together and aligned. We formed two leadership teams – one was an ‘Act Now’ team and the other was a ‘Plan Now’ team. The Act Now team focused on ensuring safety, security and day-to-day operations and the Plan Now team focused on how we could be at the forefront of change that was likely to come after this crisis. The volatility of the situation has reiterated to us the importance of adaptability, resilience and agility.

What are the various strategic initiatives taken by your company to improve its market share?
Pidilite Industries has remained focused on its strategy of creating categories through holistic brand management, innovation and driving distribution to meet the unmet needs of consumers. This is supported by a resilient supply chain, digital wave and culture.

What is your product mix strategy to maximise revenues?
Our approach is to innovate and add premium value to our products. In the process we keep our consumers upgraded and thereby drive a better mix. An example of this is ‘Fevicol’ where we have upgraded consumers from the SH variant to more premium variants such as ‘Marine’ (water-resistant), ‘Heat X’ (heat-resistant), ‘Ezeespray’, etc. We have strengthened the business through inorganic opportunities such as the recent acquisition of the Araldite brand in the Indian sub-continent.

What is your outlook on the Indian economy and how do you see Pidilite Industries growing over the next two to three years?
Consumption has seen green shoots in the last two months, especially around the festival season, in many sectors, although it remains to be seen to what extent it would sustain in the coming months. A lot depends upon the trajectory of the pandemic and vaccination measures. While we are seeing input costs hardening, we remain cautiously optimistic on the steadily improving demand recovery and expect the economy to get back to growth by early 2021. Our focus remains on profitable double-digit volume growth both in the medium and long term.

What are your opportunity areas in 2021? What is the growth status of your international markets’ expansion?
While we are seeing input costs hardening, we remain cautiously optimistic on steadily improving demand recovery and expect the economy to get back to growth by early 2021. This will be positive for our business and all the categories we operate in. On the international front our business focus remains on emerging markets in Asia, Africa and the Middle East where we can replicate the India–like model. We have seen strong double-digit growth in recent quarters across our international markets as the impact of the pandemic has receded. This is building on our robust performance during 2019-20 as well.

Is your business back to the pre-pandemic levels? Overall, the consumer and end-user segments have registered volume and value growth in excess of 20 per cent during Q3 FY20-21, exceeding the pre-pandemic level across geographies. The recovery is also aided by strong growth in rural and semi-urban areas while the urban regions have also shown good recovery. Overall, the B2B segment has grown by double digits in the last quarter. Given our strong brands and organisational resiliency, we have probably bounced back at a faster rate than the market and hope to sustain the growth going forward.



Achal Bakeri Founder,
Chairman & Managing Director, Symphony Limited

"We have opened up new markets"

Symphony, an Indian multinational company with presence in over 60 countries is the world’s largest manufacturer of air coolers. From inventions to innovations, energy responsibility to environment stewardship, Symphony is a market leader which has been cooling customers for generations. The interview indicates the growth drivers that will take the company back to its pre-pandemic growth level

How is the business (demand) outlook for 2021?
All the current indicators point to a strong demand outlook possibly due to pent-up demand from previous summer as the operations were affected due to the pandemic, overall optimism in the consumer market and the early onset of summer. All told, overall, 2021 looks to be very promising year ahead.

Is your business back to the pre-pandemic levels?
In our case, being a seasonal products-based business, our business will be back to the pre-pandemic levels by next summer i.e. the summer 2021. The current financial year 2020 has been majorly affected but by the summer of 2021 we will be back to the pre-pandemic levels at the very least.

We will keep adding new models in new segments in the inter-domestic market.

What are Symphony’s growth drivers?

We have multiple growth drivers; our new growth driver is industrial and commercial air coolers. And export is also a primary growth driver. We have opened up new markets, especially in Australia, USA and Brazil where we are seeing major growth over the past few years. The third factor is the inter-domestic market where the new products introduced by us have been received very well and are proving to be growth drivers.

What steps are being taken to increase your market share?

We will keep adding new models in new segments in the inter-domestic market.

Do you see any change in the consumption trend? How is it impacting your profitability?

Regarding the consumption trend, there is greater optimism and propensity to buy consumer products which will give an overall boost to our sales and in turn our profitability.



Shujaul Rehman CEO,
Garware Technical Fibres Limited

"Our Q3 results bear testimony to the success of our continuous endeavour to grow"

As the interview indicates, Garware Technical Fibres continues to make good progress and is aiming to launch new products

What are your top three strategic priorities for 2021?
We have four strategic priorities for 2021. The first is geographic expansion in both international and domestic markets. Secondly, our continuous growth has been possible because we have a constant focus on our client solutions for which we have a high-tech R&D department which has 20 patents granted so far. At the heart of every endeavour that GTFL undertakes, it ensures that adding to the customer’s bottom line is a prime objective. In 2021, we aim to better our client solutions for identified applications to help our global and Indian clients improve their productivity. Thirdly, we are also looking at deeper market penetration in our key markets. And finally, 2021 will also be the year when Garware Technical Fibres will introduce further new products based on our analysis of client needs.

What is your growth outlook for 2021? What are your key growth drivers?
Despite the pandemic hitting the global economy, GTFL’s Q3 results bear testimony to the success of our continuous endeavour to grow. Our drivers for growth are also the organization’s key priorities. While we will continue to consolidate our leadership in markets where we are well-entrenched leaders, we will also continue to grow in new markets and introduce new products.

Please share with us your revenue mix while highlighting the growth-oriented business segments. For FY21 ending December 20, the nine-month turnover of GTFL was approximately Rs 700 crore of which the cordage segment contributed to 85 per cent and the fibre, industrial products and projects contributed up to 15 per cent.

What are the key business risks that may make it difficult to achieve your internal growth targets?
The monsoon plays a significant role in our domestic business because our major part of revenue is generated through fishing and agriculture, and that which affects fishermen and farmers also cascades to us. In the international markets, the future impact of the pandemic 19 may have an influence in terms of customer interaction and their investment cycles into placing orders. The habit of eating out might get further restricted and as a result the demand for fish consumption may be impacted. We are leaders in farmed salmon protection solutions, and are among the global leaders in aquaculture, with one-in-three salmon across the globe protected by GTFL solutions. We have fortunately not seen the pandemic impact our international business much.

Who are your customers and at what rate are you adding new customer?
We are a multi-divisional business with reach in various industry segment such as aquaculture, agriculture, geo-synthetics, railways, infrastructure, defence, fishing, shipping, sports, among others, due to which our customers are varied ranging from fisherman-to-farmer to sportspersons-to-truck owners, industrial customers, defence and the major salmon farms across the globe. We continuously focus on entering new markets where we have the potential to grow.

Amit Kumat
MD and CEO, Prataap Snacks

"We are looking at more brand value than ever before"

Prataap Snacks is a large-scale snacks’ manufacturer that runs nine manufacturing facilities and has an extensive distribution network of 240 super-stockists and more than 4,100 distributors. In this interview, Managing Director and CEO Amit Kumat indicates how the return to normal life in the post-pandemic scenario will once again boost demand for snacks

What is your earnings’ outlook for 2021?
As we swiftly recover from the pandemic, there is absolutely no hassle in our efficient supply chain and we are looking at a quick pick-up in performances for 2021. While there is subdued demand in urban markets, our heightened initiatives in rural markets and smaller towns have helped us get back on a smooth track. We are very optimistic about positive growth from Q4, even as India bounces back to normal and children and adults alike step into the outside world without fear. With the vaccinations rolling out and with us moving back to our daily lives, the products, which are a favourite across dynamics, are sure to pick up quicker than ever.

Is the business back to the pre-pandemic level?
We have come up with various initiatives in recent times to ensure that the business resumes completely. We look to recovery in the coming days especially with opening up of trains, schools and institutions which is likely to bring in tremendous business. Though the business is not completely back to the pre-pandemic, we hope to have positive growth from this quarter onwards.

Quality and uniqueness take the centre seat, and this reflects in our customer loyalty, which is propelling us towards a great growth curve

What are the new products you plan to launch in CY21?
We are currently testing and experimenting with many new flavours and products which are in the works. Our current lot are tasty impulse-driven treats, but we are looking to experiment with products that can go in-house and want to diversify beyond the MRP of Rs 5 and Rs 10 categories. While we are ever evolving to hit the right spot with the modern consumer’s taste buds, we look to make our coming products as exciting as possible.

What are your growth drivers?
For us, quality and uniqueness take the centre seat, and this reflects in our customer loyalty, which is propelling us towards a great growth curve. While we do have good penetration in urban hotspots, we are growing more than ever in the semiurban and rural space, which is a very positive indicator. Another key driver for us is that we are an organised player in the packaged food segment with meticulous safety standards in place. As the customer of today is looking for responsible, trustworthy brands to meet their quick cravings, we are looking at more brand value for us than ever before.



G. V. Bhaskar Rao
CMD, Kaveri Seeds Company Ltd

"We are among the top three across all crop types"

In this interview, G V Bhaskar Rao, Chairman and Managing Director, Kaveri Seeds Company Ltd., explains the strategy which has helped keep the company on the growth path as also the important role played by research and development

What are your top three strategic priorities?
We are a farmer-centric organisation and for us our biggest priority is the farmer’s prosperity. All that we do circles around this aspect, be it about investing in research and development to ensure seeds which increase farmer productivity and yield, investments in a robust supply chain management to ensure that the seeds reach out to the farthest of corners across the country well in time for the sowing season, and investments in relevant infrastructure to ensure longevity and germination vigour of the seeds. Over the years we have focused on building an organisation which would help the country achieve food and nutrition security while also making the farmers attain prosperity by improving productivity through unlocking the latent power of seeds via the process of ideas and science.

Today we are the only Indian seed company which has a diverse product portfolio across also all key crops like cotton, corn, rice, jowar and bajra as well as vegetables such as tomato, okra and gourds. So, we have invested significant man-hours and capital in strengthening our connection with the farmers while strengthening our research and development capabilities and infrastructure as well as diversifying our product offerings and not being dependent on one particular crop. The results of this approach are showing results.

What is the growth outlook for the coming quarters?
Our growth outlook is strong. As mentioned earlier, we have a diversified product portfolio which our vision of creating an organisation which does not have dependence on only one crop type. This has played out well given the changing climatic conditions i.e. early or late arrival of monsoons and changing commodity prices that may affect the cropping patterns for a particular year. The company has gained market share in both falling and stable markets across all crops. This determines our leadership in the entire industry.

We are encouraged by our performance and in particular the success of our new launches. Our selection rice and hybrid rice portfolios have grown strongly by over 45 per cent YoY. Vegetable sales too have grown very well on the back of strong growth in hot pepper, tomato, gourds and okra. We are optimistic of maintaining this trajectory on the back of our strong connection with the farmers, diversified product portfolio and established research and development capabilities.

What is your budget for research and development and is this expected to increase in 2021?
We know that the biggest portion of increase in agriculture production is caused by technological innovation. As a part of our sustainable growth strategy we consistently have invested in research and development. Our expenditure in research and development has doubled in the last three years. We spend close to 3.5 per cent of our revenue on research and development every year. As a strategy we blend traditional breeding techniques with advanced biotechnology, which enables us to develop superior seeds that are high-yielding under varied climatic conditions. Our research and development team comprises about 100 professionals, including more than 20 scientists and our research base is recognised by the Government of India’s Department of Scientific and Industrial Research (DSIR) since 2001.

What strategic initiatives are being taken to help improve the market share?
Our strategy towards improving market share is two-pronged. The first is at the front end which is towards engaging with the farmer and agronomists to best understand their preferences, needs and concerns and then at the back end to develop the best possible hybrids and enhance our portfolio of offerings. Along with this our thrust is towards enhancing our market reach and distribution with the objective of reaching both wider and deeper into the market.

What are your growth drivers?
Kaveri Seeds is among the top three across all crop types i.e. rice, vegetables, cotton, maize, etc. It has been our conscious endeavour to have a leadership position and significant market share in all seed segments. With the requisite infrastructure in place coupled with strong research and development we have been able to replicate our success story in cotton across other crops too. Going forward we see growth potential in the segments of hybrid rice, maize and vegetables.

We have been continuously innovating and coming up with new products to cater to the agro-climatic conditions across India and also the export markets that we operate in. We have also been expanding our geographical footprint by entering new regions and states and also countries. We had earlier expanded our presence to Maharashtra and Gujarat and have now entered the northern states with encouraging results.

What are the challenges faced on the supply chain management front?
We have over 60,000 distributor touch-points across the country. It is imperative to have a robust supply chain management to ensure timely delivery of products across the nook and corner of the country. At Kaveri Seeds we have fostered strategic partnerships within our supply chain to ensure easy and timely availability of seeds to farmers. The big challenge on the supply chain front is to ensure that the seeds retain their quality and content for as long as possible. This ensures improved output and decreasing sales returns.

Towards this objective our investments towards extensive cold chain storage infrastructure has held us in good stead and increased longevity in the life of the seed. Simultaneously, the need is towards improving the speed at which we reach the farmer with a quality product. Better packaging and improved road infrastructure combined with increased but efficient transportation helps towards addressing these challenges.


Rajneesh Chopra
Global Head Business Development VA Tech Wabag Ltd 

"We will look to selectively target high technology orders"

What are your top three key strategic business priorities?
WABAG is a leading Indian MNC and a pure-play water technology company. Backed by our decades of experience and technical expertise, we are focused towards honouring our motto of providing sustainable solutions for a better life. Our top three key strategic business priorities, evaluating the current global scenario post-pandemic and our business interests are as follows: Enhanced focus on digitization, automation and the use of artificial intelligence to build plants with enhanced performance while operating with optimised manpower. Given our strong order book, which currently stands at Rs 10,700 crore, we will focus on scaling up execution of orders to ensure timely completion. Being a technology player and backed by a healthy order book, going forward we will look to selectively target the high technology orders to strengthen our order book as well as to improve our margins. 

What is the growth outlook for your company in the coming quarters? As you are aware, VA Tech WABAG is a pure-play water technology company having a multinational presence and spread across four continents and over 20 countries. WABAG has executed projects in over 30 countries across various segments. Post the pandemic, the entire water and sanitation sector has assumed increased importance. Water is now an imperative factor for health and sanitation. Thereby, most of the governments in various countries, including our home country India, now have enhanced focus on water and sanitation, more than what it has been historically.

In our home country India, the outlook is extremely positive, driven mainly by the government’s initiatives, which were reaffirmed in the recent Union Budget. The ambitious Jal Jeevan Mission with an outlay of Rs 2.87 lakh crore which involves resource augmentation, improved focus on recycle and reuse and leveraging the vast coastline for desalination are a few key segments where technology players like WABAG will have a key role to play. The ‘Namami Gange’ programme, under which WABAG has bagged a few orders, is now planned to be replicated across major Indian rivers, which will again open up huge avenues for wastewater treatment and management.

On a global level, compliance to United Nations’ Sustainable Development Goals (SDGs), especially SDG 6 (clean water and sanitation) and emphasis on environment, sustainability and governance (ESG) are expected to be the key growth drivers. Once the market starts growing, especially in India where we foresee double-digit growth YoY, being a market leader we would like to retain our leadership position on the technology front and like to grow in line with the market growth.

What is your research and development budget and is it expected to increase in 2021?
WABAG over the years has been known for its technical expertise worldwide, backed by comprehensive research and development and proven global references which have successfully demonstrated our technological prowess. Currently we have three research and development centres – Chennai in India, Vienna and Switzerland. We have tie-ups with several leading development partners, which include Vienna University, IWW Water Centre, Istanbul Technical University, to name a few. WABAG currently holds about 90 patents to its name across the fields of water treatment, wastewater treatment, water reclamation and sludge treatment.

In the present scenario, especially post-pandemic, there is an enhanced focus on digitization and automation in water sector. We have been allocating a significant portion of our revenue for research and development and going forward we will be prioritizing our emphasis on research and development, driven by our focus on incorporating digitization in our business and infusing innovation, knowledge, data and expertise. We have invested in real-time monitoring remotely in the past and that has paid rich dividends especially during the pandemic phase.

Going forward, investment in automation, digitization and AI will help us build plants with enhanced performance and optimised operations. Reiterating our focus on research and development, WABAG has emerged as a global leader in the removal of micro pollutants, an area which requires state-ofthe- art advanced technologies. In Switzerland, which is the first country to pass a legislation mandating removal of micro pollutants, WABAG has implemented seven plants with a cumulative capacity of 1,50,000 cubic metres per day with a further 12 plants under execution.

What kind of opportunity does WABAG see in waste water management and the ‘Clean Ganga’ project?
Wastewater management in India is an extremely critical issue. At present, only 37 per cent of the total wastewater generated in India is treated. This leaves a huge gap, wherein almost two-thirds of the wastewater generated in India today has to be treated. When it comes to wastewater treatment and management, the Clean Ganga project has been an extremely successful model in ensuring pollution abatement across the river Ganga belt. The model, under which WABAG has been one of the frontrunners, has been an example of successful execution of wastewater treatment. As mentioned earlier, drawing from the success of the Clean Ganga project, the government now plans to replicate it across various rivers under NRCD, starting off with rivers which are the most polluted.

WABAG will be a serious player when it comes to the hybrid annuity model (HAM) projects under Namami Gange. HAM is fast emerging as the preferred model, and we expect this model to be replicated across various Indian states in the water sector. Hence, WABAG will definitely be a frontrunner to play its role in pollution abatement and river rejuvenation. Being a technology player, WABAG will strive towards making its infrastructure sustainable by incorporating the resource recovery model by reusing the treated water, utilising the biogas generated from sludge to generate green energy and by converting the treated sludge into useful manure or fuel for further application.

What are your key growth drivers?
WABAG has been growing consistently and going forward we look at continued growth in line with the market. The key growth drivers, as listed below, are governed by a multiple factors such as revised regulatory norms and key government initiatives in the markets where we are present. We foresee that the factors mentioned below will help further consolidate our position as technology leader.

In the industrial segment, zero liquid discharge (ZLD) is going to be mandated, in which 100 per cent of water has to be recycled and reused to make the large industries self-sufficient in terms of water.
Industries located on the coastal belt have now started to adopt captive desalination as a sustainable, affordable and reliable source of water.
The Government of India’s ambitious plan to provide water under Jal Jeevan Mission, for which a massive outlay of Rs 2.87 lakh crore has been allocated over the next five years, will require significant need for resource augmentation with 20 per cent of demand to be met by recycled water.
Egypt’s mega desalination programme estimated at USD 15 billion, under which 10,481 MLD of desalination capacity has to be created over the next three decades. n Kingdom of Saudi Arabia’s large-scale expansion of desalination to meet the increasing water demand.
One city, one operator model in India, which we foresee as the next multi-billion dollar segment. n Draft wastewater regulations approved in Vietnam, compliance to which mandates an expenditure of USD 8-10 billion.
Substantial outlay of USD 6.5 billion in Philippines for wastewater collection and treatment with 16 large-scale greenfield WWTPs in the coming years.

What steps are being taken to expand internationally?
If you look at the history of WABAG, we have been an international organisation since our inception in Germany. In a proud feat for us, the Indian subsidiary of VA Tech WABAG acquired the erstwhile parent company to establish the Indian MNC, which is now a renowned company. As you might be aware, our business is now spread across the India cluster – India and SE Asia, the Middle East and Africa (MEA) cluster and Europe cluster, with footprints across 30 countries. Also, we will focus on multilateral funded and G2G projects.

We have in the past said that we want the contribution from our overseas business to increase, and we have been working to ensure the same, expanding our overseas business. We have our footprints across 30 countries, and even our order book for FY21 till date has substantial contribution from our overseas projects with WABAG securing projects across Saudi Arabia, Tunisia, Libya and Switzerland, which is evident of our focus to expand our overseas business and in turn ensure an increase in contribution from our overseas business.


C. J. Pathak
Wholetime Director, Garware Polyester Ltd

"Research remains at the core of all our growth strategies"

What is the international demand outlook for specialty films? The global demand for specialty films continues to grow at a robust rate. We aim to retain exclusivity in our current and future business lines along with adding new customers. The international business growth is steadily increasing along with new product introduction, research and development and increased demand for specialty film products. The electrical grade film business is also successfully contributing towards our international growth strategy. Presently, exports contribute 67 per cent of our revenue.

Are there any new products that will be launched in 2021?
We have recently launched paint protection film (PPF) for automobile paint protection which is estimated to contribute 20 per cent to the revenue of FY23, estimated at an incremental Rs 300 crore. It is manufactured on a new line which is a highly efficient and flexible manufacturing setup. Our window films are uniquely curated with specialised applications designed for high performance. We are now aiming to expand this category across safety, architectural and front window screen glasses.

How important is research and development for your business and what is your budget for it?
Research and development remains at the core of all our growth strategies and we are a high-chemistry dominated segment making high-technology films for niche uses. Our research and development is led by our analysis of future demands for speciality premium films. We have advanced research facilities at our plant that have been recognised by the Department of Science and Technology, Government of India. Additionally, the research and development unit also continuously undertakes research on new product applications, modifications and process improvements to help in the betterment of products and processes.

What is your outlook on export markets for GPL?
GPL is the pioneer and one of the largest exporters of high-technology performance films in India and the winner of top exporters’ awards for continuous 33 years from PLEXCOUNCIL. Exports to nearly 80+ countries contribute to nearly 67 per cent of our revenue. Our brand has grown to become a force to reckon with in the global high-technology performance film industry. Our exports have seen continuous growth every year and we expect this trend to continue with our foray into PPF. The key market is the US where we continue to increase focus since there is a growing demand for window film, paint protection film and industrial products. That apart, the Middle East or the desert-ringed countries, also offer tremendous potential for PPF as the sand damages the paint of expensive cars. We have also observed an increase in demand from the African continent.

What are some of the USPs of GPL products?
Why are they in demand? We are global market leaders and the only Indian company to manufacture sun control films internationally for building, safety and automotive applications. On the global front, Garware Polyester is placed in the second position when it comes to the manufacturing of coloured polyester films in a global duopoly. The company always focuses on products that are high in quality and the best in the market. Our team comprises of highly research-oriented and experienced individuals with expertise in developing and creating new applications. With advanced facilities, our teams continue to innovate using the latest technology. We have been successfully providing quick delivery, exemplary services and consistency in providing quality output. With attractive pricing control due to having built integrated chip-to-film capabilities we give the market the advantages of brand, quality and price.

What are the key focus areas in 2021 for GPL?
Currently, we are in a high growth mode. With the launch of PPF in India, we are now expeditiously working towards a global expansion strategy. We plan our product lines very carefully and the next steps will be to ensure our new PPF line is working to full capacity by March 2023. We will continue to innovate, making new and better products and continue to proudly be an Indian company establishing a footprints across the globe.


Prakarsh Gagdani
CEO, 5paisa.com

"We Are Confident Of Growth As Compared To Last Year"

One of the biggest positive fallouts of the pandemic and the ensuing lockdown was that there was a sudden spurt in new investors looking at the equity market to create wealth. Against this background, 5 Paise.com has thrived and, as the interview indicates, is looking forward to an upward spiral in its business

How is the market share growing for 5 Paisa.com?
The previous year has been a historical one in terms of business where overall the brokerage industry experienced exponential growth and we also managed to do well with keeping up our market share. We are a multiproduct platform offering financial products that can be served end-to-end online with minimal human intervention. Our offering ranges from trading and investments in gold and insurance to P2P lending and international investments from India. These products, coupled with services like the research tools we offer, should pretty much help us drive our share.

What is your outlook on the broking industry in India?
The outlook for the broking industry is extremely positive. The pandemic has acted like an inflection point for the dematerialisation account growth in the country. Since then the numbers have exploded. Looking at the industry trends, we are confident that this growth that has come after the onset of the pandemic will continue as more and more young millennials approach the capital market and make equity investments their primary investment. So our outlook is extremely bright.

Are an increasing number of retail investors participating in the equity markets?
Yes, retail participation in the equity market is high. It is on the back of strong dematerialisation growth, which is the best year in a long time in terms of new client additions. The second parameter is the participation of retails in IPOs. For instance, the Happiest Minds IPO was subscribed 150.98 times in September and the Route Mobile IPO that was open for subscription from September 9 and 11 was subscribed almost 73.3 times.

Similarly, Chemcon Specialty Chemicals Ltd. was subscribed almost 149 times on the final day of bidding in the same month. The third factor is that new millennials are participating from Tier II and III cities. States that were hitherto lagging in the equity market have now started investing in the capital market. So we have an increasing number of retail investors from unexplored areas now participating in the stock markets. One more reason is that the folios in mutual funds have crossed around 60 million now, which is also a good driving factor.

What is your estimate for 2021 in terms of new dematerialisation accounts?
It is really difficult to predict the estimate in terms of growth because in the year 2019 and 2020 there has been a significant spike. Obviously, the percentage growth might not match because of the factors that drove the growth then, but in absolute terms we are confident of growth as compared to last year.

What are your growth levers, and can you explain how you intend to achieve your internal growth targets?
Our growth levers include the organic traffic and organic account opening owing to the references through our strategic partnership and the digital marketing we do.


Kapil Agarwal
Joint Managing Director UFO Moviez

"We expect the film flow to regularise soon"

The film industry of India was among the first ones to face the brunt of the pandemic and the lockdowns. And even though the cinema halls are now open for screening of films, business has not yet returned to normal. In this interview, Kapil Agarwal, Joint Managing Director, UFO Moviez, is, however, optimistic that the revenue stream will return to pre-pandemic times by Diwali this year

How important is technology in your line of business? What new technologies do you hope to adopt that can help your business grow?
Technology is the core of our business. In fact, when it comes to digital cinema, we are a pure-play technology company which deals in encoding, encryption, transmission of data, digital rights management, amongst others. Going forward we will be deploying our technological capabilities to develop newer products in the digitization of cinema such as Impact Media Exchange, a portal for the Indian film industry to interact and conduct transactions online.

What are your key growth drivers?
Going forward we will be focused on sustaining our core digital cinema business to reach our goals in the coming months of 2021. We will be working on quickly ramping up our advertising in theatre and film distribution business.

What are your top three strategic priorities?
While the pandemic has impacted businesses across industries, it has also prompted the world to think out of the box to sustain. The same applies on us. It has helped us to search and establish alternate revenue streams too. We are working at establishing a strong footprint of our latest venture – content distribution business – which will provide feeding to cinemas and drive the advertising business. Additionally, we are also working on certain new-age businesses in the digital media space, namely, Zinglin and Plexigo which could be potential winners.

How has current pandemic impacted your business profitability?
Just like the entire film fraternity, especially the exhibition industry, we too have been similarly impacted as cinemas were the first to shut down and even after opening up there was reduced capacity. However, now with Hollywood and Bollywood movies slated to release in the coming months, we are confident that this may bring about a positive change for the Indian cinemas.

What is your growth outlook for the coming three to four quarters?
Right now, the big-ticket films have slowly started to release. The South Indian film industry especially has witnessed great success with the release of big budget films such as ‘Master’. Now this is prompting the North Indian Hindi industry too. We expect the film flow to regularise with the release of ‘Sooryavanshi’, ‘83’ and other big films. We are seeing very good traction in film release date announcements and many big films are scheduled for release in the coming quarters in Hindi and the other key languages such as Tamil, Telugu, Malyalam, Kannada, Marathi and Punjabi. Also, with the corona virus cases going down and the vaccination drive picking up we expect things to start normalising in the coming quarters. As such, the advertising business should stabilise by Diwali.


Amit Kaushik
CFO and CEO, INFLAME India

"Our core strength is research and development"

Inflame is a known manufacturer of chimneys, gas stoves and gas hobs and is now planning to start making dishwashers too. As this interview indicates, the company’s unwavering focus on innovation is what has kept it on the growth path

What is the demand outlook for kitchen appliances in India?
Inflame is into manufacturing kitchen appliances such as chimneys, gas hobs and gas stoves. Here, the market for chimneys is the fastest growing in India among kitchen appliances with approximately 15 per cent year-on-year growth. This growth rate is expected to stay forth for the coming decade or so. Chimneys are presently manufactured mainly by Chinese companies and are imported in India by various brands or small traders for feeding the ever-growing demand of approximately 1.8 million annually. There are a few big brand owners in India who manufacture these products for their own brands, but the total quantum is less than 10 per cent.

Hence, there was a huge opportunity to get into manufacturing of chimneys to cater to the vast requirement by major brands such as Hindware, Sunflame, Prestige, Kaff, etc. The same is the case for gas hobs as this is also a very high growth segment on account of the changing cooking dynamics in Indian kitchens. There are no manufacturers in India who are involved in manufacturing dishwashers and as Inflame is planning to venture into this segment in the next 18 months, it’s going to be a first by any Indian company. The demand for dishwashers is decently going up after the pandemic-triggered lockdown.

What is your strategy to improve the market share for your products?
Inflame is the first in the organised sector to start manufacturing for other brands and therefore has been competing directly with Chinese suppliers. This has helped expand the opportunity. The company has created a complete service industry to cater to the components’ requirements. It is worth noting that from almost 50-60 per cent of the import content to almost an insignificant 2-3 per cent of import content, we stand tall among other manufacturers who have created a complete infrastructure to manufacture chimneys in India. This has created a competitive advantage for our products in terms of pricing and quality.

Further, with freight component as high as 10-15 per cent in chimneys for import of these products from China, we have a great chance to sustain the price competition with Chinese suppliers. Both these factors are crucial for long-term sustainability. The company has a plan to achieve 1,00,000 units of production by June 2023, which will make us a substantial player in manufacturing these products in India and would keep us ahead in the race for a long time to come. Further, our core strength is research and development which we have created especially after the lockdown. We are working on innovations to benefit our consumers in terms of both commercial and technical aspects.

What is your product mix strategy?
In the next three years our major products would be chimneys (70 per cent), gas hobs (15 per cent), gas stoves (10 per cent) and dishwashers (5 per cent).

What is your earning outlook for the coming three quarters?
We are continuously improving over the previous months’ production and we hope with all the development, including spare parts and components, completed by March 2021, our next three quarters would be a significant improvement over the previous quarters. We foresee continued growth for the next 3-5 years.

 

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