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Dhimant Bhatt

Nagda, (M.P.), Feb. 19

HAVING commissioned a 6,000-tonne-per-annum benzyl alcohol plant at Nagda in Madhya Pradesh, Gwalior Chemical Industries Ltd has set a target to capture a 10 per cent share in the global market over the next five years.

The company's optimism stems from the fact that there is a huge export demand for benzyl alcohol. Gwalior Chemicals plans to export around 70 per cent of its production.

The total global market for chlorotoluene, the raw material for benzyl alcohol and other downstream products, is around Rs 2,500 crore and the company's current market share is less than 1 per cent.

Gwalior Chemicals, promoted by Mr Ashwin Kothari and Mr Harisingh Shyamsukha, is a leading producer of chlorotoluenes in Asia and among the top globally.

The company currently has seven plants located across two chemical complexes at Nagda and Ankleshwar (Guajrat).

"The new benzyl alcohol facility has been set up at a cost of Rs 20 crore. Capacity can be doubled to 10,800 tpa at an incremental cost of Rs 5 crore," the company's Chairman, Mr Kothari, told visiting mediapersons.

"The unique manufacturing process (a new technique of using plain water) developed for producing benzyl alcohol will help us produce it at least 15 per cent cheaper than any other manufacturer," Mr Kothari said.

Bayer and Gwalior Chemicals are the only two companies in the world using this technique.

Mr Shyamsukha, Director of the company, said that the quality of the product from this process is superior to those of its competitors. Bayer (Germany) delivers 99.99 per cent purity benzyl alcohol and the other Indian firms offer around 99.8 per cent purity. "But our facility within 15 days of being commissioned is producing 99.98 per cent purity."

Apart from benzyl alcohol facility, the company - the third largest manufacturer of benzyl chloride and benzaldehyde - has developed the process through in-house R&D in order to re-engineer its downstream products at cost-effective rates.

The company plans to further strengthen this set-up for creating a wide portfolio of high value downstream products for global markets over next two years. "We are in the process of establishing an European presence, by leasing a storage facility at Antwerp in Belgium. With this, we can enter that market and deliver the product within three days of a customer's order," he said.

The company is planning to come out with equity shares issue of about Rs 50-55 crore shortly to part finance its expansion plans.

The company's net sales and profit after tax for the nine months ended December 2004 were Rs 98.24 crore and Rs 9.12 crore, respectively.

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