Galaxy Surfactants aims to grow its business by continuing to focus on the home and personal care segment. Ganesh Kamath, chief financial officer of the company, said that the company’s focus remains on the end consumer market.
“We have always grown ahead of the Home and Personal Care industry, by constantly studying the consumer market, anticipating future consumer trends, and aligning our innovation process with those trends. We plan to capitalise on the changing trends that have the potential to expand our addressable Ganesh Kamath, CFO, Galaxy Surfactants told ETCFO in an interview. Kamath said that timely investments in capacities have effectively serviced the rising demand. Kamath expects the surfactant market to grow around 29-4%, depending on the region.
Below are the edited excerpts of the interview:
Q. How is your business doing and what are the major challenges that you faced during the peak of COVID?
Since all our ingredients are exclusively manufactured for Home and Personal Care products, which is an essential part of consumers’ daily lives the overall demand continued to remain robust. Amidst the pandemic, servicing intensified demand for hand washes and other hygiene products with our existing capacities was a challenge. Secondly, we had to face challenges on the supply side from Q2FY21 onwards, with freight rates rising abruptly and unavailability of containers for movement of goods. Managing rising commodity Pict was also when Commercialization of capex for expansion of capacities for Specialty Chemicals got delayed as a result of which servicing excess customer demand was a challenge. Despite all these we continued to move forward with resilience and grit. Q. How are you planning to grow your business, as surfactant business is expected to grow to $45 billion by 2024?? Though we are a B2B supplier, our focus re- mains high on the end consumer market, which primarily drives demand. We have always grown ahead of the Home and Personal Care industry, by constantly studying the consumer market, anticipating future consumer trends, and aligning our innovation process with those trends. We plan to capitalise on the changing trends that have the potential to expand our addressable market. We timely invest in capacities to effectively service the emerging demand. We expect the surfactant market to grow around 2% -4%, depending on the e region.
Q. Your business is heavily dependent on chemical business. How are you planning to make your organisation more environmentally friendly and reduce carbon footprint?
Sustainability norms are relentlessly practised at Galaxy. Though we deal in chemical business, protecting our environment and reducing carbon footprints have always been our agendas. We realised the significance of sustainable growth a decade ago and since 2012 we have been releasing a Sustainability Report’ every year conveying the endeavours and progress made in the sustainable goals. We will bring out our 10th Sustainability report soon. We had organised the ‘Galaxy of Sustenance event in October 2020, to celebrate the decade of good work done in the area of sustainability.
Q. Your company is doing well in the performance sector but the specialty surfactant sector has a greater margin, how are you planning to fix this?
Our demand for Performance and Specialty products is primarily driven by consumer trends. Though we plan to grow equally in both the segments of our business, consumer demand ultimately drives the growth. Revenue share of Specialty Ingredients now ranges from 35%-39% which was less than 30% at the start of the decade. Q. What is your current perception on recent reforms in taxation like faceless assessment?
This reform will certainly bring ease in the process of tax assessments. The world has already stepped into the era of Artificial Intelligence which is also believed to transform the finance sector by leveraging on Smart Automation. Post-pandemic, most of the physical activities/operations have shifted to virtual platforms with minimal impact on performance and productivity standards.