SANGHAVI BROTHERS
Authorised Dealers of RIL & IPCL

In Conversation

Polymerupdate Team: How did you start your career in the polymer business?
Jitendra Sanghavi : I started my career in 1967. We were the agents for Bhor Industries for products such as PVC sheeting, PVC film, leather cloth, PVC flooring and PVC wallpaper. In the same year, we started our HDPE monofilament yarn factory at Bhavnagar with one extruder.

Polymerupdate Team : How did you strategize your operations from there?
Jitendra Sanghavi : When we started our factory, HDPE monofilament was used in the manufacture of fishing nets and ropes. We were the first company at that time to venture in the manufacture of HDPE woven fabrics. The basic activity remained manufacture of HDPE monofilament yarn while HDPE woven fabric manufacturing was a value addition. The yarn was taken to a power loom for the production of fabrics and strapping. The fabric found application in shopping bags and strapping was used in all kinds of moulded furniture, cloth to cover cinema hall seats, bedding, etc.

Polymerupdate Team : How did you expand base as the 60s decade ended?
Jitendra Sanghavi : Around 1969-70, we started importing raw material for manufacturing units and trading purposes. We used to buy raw material from Polyolefins Industries Ltd (PIL) or import raw material for which the channelizing agency was the State Trading Corporation (STC). Gradually our production increased with addition of 5 extruders of bigger size by 1977-78. When we started production in 1967, our consumption of raw material was 120 tons and by 1977-78 had increased to 125 tons.

Polymerupdate Team : Which are the countries from where you used to procure raw material?
Jitendra Sanghavi : At that time, we mostly used to import material from Japan. As the import from Japan was costlier, we started importing from USA, Russia, Romania and other East European countries.

Polymerupdate Team : How did you decide to increasingly concentrate on trading?
Jitendra Sanghavi : After 1984, many competitors set shop in Gujarat and started mixing reprocessed material with prime material except our company as we believed in following ethical business practices. Due to this unhealthy competition, we reduced our manufacturing capacity in a phased manner and by 1992 had closed all units and started to focus on import and trading of all polymers. In 1999, we were appointed as authorized dealers by Reliance Industries for trading in HDPE, LDPE, LLDPE, PP, HM. We were also appointed as agents for IPCL after the company was taken over by Reliance.

Polymerupdate Team : Tell us something about your association with Reliance?
Jitendra Sanghavi : I believe that Reliance is the only company in the country which has a maximum range of products which no manufacturer in India can offer. The company has a wide infrastructure and good communication network. A competent team further ensures good service like immediate delivery schedules. Maintaining flexibility in their dealings, they also provide excellent technical support. The company executes things at a lightning speed and they are expanding at a rapid pace. They have the vision and the capacity to visualize the future and they work accordingly. We believe that our future with Reliance is bright and we perceive a strong growth of sales.

Polymerupdate Team : As someone who has been associated with the polymer industry for so long, how do you see the future of the industry in India?
Jitendra Sanghavi : I foresee a growth of 12 per cent per year in PP in the near future. There will be a shortage of PE till 2009 in the country as demand has grown tremendously and no new PE plant has come on stream in the recent past which has affected the supply position adversely. Demand for HMHDPE is perceived as good due to the mall culture in the country and with SEZs coming up in a big way in India, demand for pipe grade will also increase. The growth of LDPE will be negative as processors will shift towards other polymers as LDPE is costly and has more weight. Overall growth of the polymer market in India is good.