Make in India initiative can catapult India into top manufacturing economies: Pierre-Franck Valentin

Novecare, a global business unit (GBU) of Solvay, is the leading global producer of specialty surfactants and a major player in polymers, amines, guar, and phosphorus derivatives. Since 2010, Novecare has been engaged in an ambitious growth strategy directed at supporting expanding consumer markets, particularly in Asia. In conversation with Rakesh Rao, Pierre-Franck Valentin, VP & GM, Asia-Pacific, Solvay Novecare, focuses on the opportunities for the company in India and its growth plans for future.
 
How is Solvay catering to the needs of its customers?
Established in 1863, Solvay is a global company driven by proud and committed chemists. With our historical anchorage in Europe, our products serve diversified markets worldwide, from consumer goods to energy, with one main aim – to improve quality of life and customer performance. The drive to achieve our aim has resulted in 90 percent of our revenue being generated from businesses that are among the top three global leaders in their field. 
   
The Solvay group has been present in India since 50 years and has more than 600 employees on 10 plants/administrative sites. 

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Solvay develops high added-value, innovative, sustainable and competitive solutions, tailored to the demands of its end customers for the markets such as aeronautic & automotive, agro food, building & construction, consumer goods & healthcare, electrical & electronics, energy & environment and industrial applications.
 
In India, we produce engineering plastics, peroxygens, specialty polymers, surfactants, and guar derivatives.
 
Which end-user industries are key for the growth of Solvay Novecare in India?
The key end-user industries driving Solvay’s growth in India are consumer goods, agro, automotive, building & construction and industrial applications. Recently, we commissioned two major plants (investments) of Solvay Novecare at Roha and Rasal in Maharashtra. Novecare is among the largest global business units in Solvay offering customised specialty chemical formulations to its customers in home & personal care, agrochemicals, coatings, industrial formulations and oil & gas markets.
 
What is your view on the government’s ‘Make in India’ initiative? What are key hurdles in the path of ‘Make in India’ initiatives?
‘Make in India’ is a very enterprising concept by the new government, which can catapult India into top manufacturing economies of the world. In a growing economy like India, investment to satisfy local demand is not a zero sum game, but rather would produce exponential benefits. Hence, we hope that in due time, taxes can be eased and simplified; permits can also be approved faster. India still lacks notified chemical zones in many states which potentially can enable quick project execution.

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How is Solvay responding to the call of ‘Make in India’? Are you looking to enhance manufacturing activities in India?
We are fully supporting this initiative by localising most of the demand in India to be manufactured in the country, and also exporting locally made products to other geographies around the world. We listen to our customers and they are asking us to produce even more specialties in India in the near future.
 
How can the specialty chemicals industry act as an enabler for achieving ‘Make in India’ initiative?
Nothing ever gets produced in this world without the use of chemicals, and Solvay is a global leader in sustainable chemistry. Hence, we can say that the chemical industry is in a way a barometer of success of Make in India.
 
Could you share with the experience (global or Indian) of Solvay in solving some of the challenges faced by developing economies?
Almost all developing economies face challenge on successful execution and delivery of growth projects. Hence, it is important to have a strong local team for initiatives to be successful.

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Besides ‘Make in India’, the government has announced a host of other initiatives such as Swachh Bharat, Clean Ganga, etc. What do these initiatives mean to specialty chemical manufacturers such as Solvay?
I have read articles in leading newspapers on our key global customer keenly engaging in these initiatives. And I can tell you for sure, that we are fully supporting them with our specialty formulations for their initiatives. However our work is more on the background.
 
What are your short term and long term plans for India?
Our growth expectations from India are huge, given its demographic profile and exploding growth in e-commerce services to ordinary citizens of India. We see e-commerce in India, less as a disruption to established business models, and more as equitable distribution of product and services. This should increase the overall consumption pattern across the breadth of India, leading to higher demand for products.
 
Solvay Novecare wants to be ready with its product offerings at this important cusp and transitioning of the Indian economy. We are already investing in India and will be ready with more as and when our customers ask us to do so.