GOEL AIRSHRINK (INDIA) LTD.

In Conversation

Polymerupdate : How were the early years when you started in the business ?

Mr. Pramod Goel : We started our first LDPE film plant in 1967. The project could not take off in the initial period as Brimco, from whom we were supposed to buy the extrusion machine for the plant faced a lockout. In 1977, we ventured into the manufacture of PP tubes for ballpoint pen refills. We also started manufacturing straws for mass consumption material for which we used to buy from State Trading Corporation (STC). After the formation of Indian Petrochemicals Corporation Limited (IPCL) we bought EBO730 grade PP for the manufacture of ballpoint pen refills. We supported IPCL with very good market in Eastern India.

Polymerupdate : After the initial start up, what was your next strategy ?

Mr. Pramod Goel : We were the first company to buy PP/HM machine from Brimco in 1979. In the same year, we tied up with Airshrink (UK) for the manufacture of PVC slips. This was the first project of RCTC which provided venture capital for the project started by Indira Gandhi in 1979. We were the first client of RCTC. The project was studied by Tata Economic Consultancy. Unit Trust of India along with RCTC had taken the share capital for the project.

Polymerupdate :  Tell us about your expansion activities ?

Mr. Pramod Goel : In 1998, Goel Airshrink went to Asagoe Japan for collaboration of PP mats. Goel Cottex launched a project in 1995 of acrylic blankets with Daihung of Korea, Paduana and Mora of Spain and funded by Industrial Development Bank of India. In 2001, we participated in a brand promotion exercise initiated by the Government of India which had established the India Brand Equity Fund with a corpus of Rs.100 crores. We had been accorded a fund of Rs.5 crores but we did not accept it as our Saurav brand of PP mats was firmly established in the market.  

Polymerupdate : What is the export market for your products ?

Mr. Pramod Goel :We have a market in Europe for beach mats. We also export to Mauritius, Sri Lanka, Middle East and South Africa. 90 percent of our products are exported while 10 percent are meant for local sales.

Polymerupdate : What is the consumption of raw materials in your production facilities ?

Mr. Pramod Goel : When we started, consumption of raw materials was 10 tonnes per month of PP which increased to 800 tonnes per month of PP.

Polymerupdate : Where are your factories located and how many machines do you have ?

Mr. Pramod Goel : We have factories at Sinnar in Nasik, Dahanu and Wada and we also have the largest flour mill in the country in Kolkatta in collaboration with Buhler of Switzerland.

Polymerupdate : Tell us something about your future plans ?

Mr. Pramod Goel : We are putting up a project on photovoltaic solar energy power with Schmidt of Germany with an investment of Rs. 1,200 crores. We expect that the worth of the Solar Energy project will go up to Rs. 5,000 crores within the next 5 years. The project would be located at the Special Economic Zone Indore and production at the site would commence by June 2008. Another group company,  PLG Industries Limited is putting up a project for regeneration of catalysts in technical collaboration with Eurotech of France with an investment of USD 60 million. The project will be based in Jamnagar and production at the facility will commence in 2008.    

Polymerupdate : What are the difficulties faced by the polymer industry today ?

Mr. Pramod Goel : The Government of India has reduced export assistance with import duty at 5 percent. The cost of electricity has also accelerated. The rate of interest is higher with banks levying heavy charges. Considering the export market, cost of labour is very high.     

Polymerupdate : What advice would you give to the new entrants in the polymer business ?

Mr. Pramod Goel : The young entrants who wish to make a career in the polymer industry should look at cost effective products. They should also concentrate on the manufacture of niche products and not hi tech products.