Message From Chairman
Customer to Consumer – a transformative journey….
From a Gas based chemical complex mindset of over 35 years, last year we took an outside-in strategic deep dive to create a vision for our next decade into covering the four sectors we find ourselves in, namely: Crop Nutrition, Performance chemicals, Mining and Life style. What will give us sustained strength… what will create value…Drawing from the deep-rooted, soul-searching, emerged a confluence of the classical two ends of strategies – Commoditization and Customization. Commoditization, as is typically known to be, relies on the strength of size, scale, efficiencies and back-ward integrations for delivering sustained results. The outcomes would bring – Market Shares, Cost Optimization, Risk Mitigation and Industry bench-marked returns. Customization, as is typically known to be, relies on the strength of segmentation, focus, value addition and holistic offerings. The outcomes would bring – Premium Pricing, Entry barriers, Brand creation, Sky-high innovation scope. Commoditization and customization do sit at contradictory ends, requiring mindset allocations of different kinds, namely – High capital management v/s intense empathy, narrow product range v/s wide holistic end user offering, cost optimization v/s Value-enhancement. What has now emerged as our game plan for the next decade is a happy convergence of the two ends and the beginning of a transformative journey from customers to consumers. Our thrust on distilling the advantages of commoditization is reflected in:
- With the tripling our capacities of the NPK Fertilisers commissioned last year that has helped climb our market share from 3% to over 20% this year. In the year ahead, we plan to further enhance the cost optimization drive as we spread our sharpened fixed costs over more volumes.
- With the new Acid capacities soon to be commissioned at Dahej, now we will scale up to probably be Asia’s largest Acid complex serving three unique end industries.
- With the effective steps taken to double our manufactured IPA capacities and combining with strategic trading in solvents, we plan to be a holistic and favoured supplier to the Pharma Sector.
- With the acquisition of world-class ready unused assets, we will scale up our TAN capacities by another 60% and inch-up to become among the Global top three TAN suppliers to the Mining Sector.
- Above all, again with the advantageous acquisition of a world class Kellog-Brown-Root/70 years unused facilities for Ammonia, will provide at one-go a 100% backward integration to our ready Chemical, TAN and Fertiliser ready downstreams mitigating the risks of timely availability of cost effective life-line Raw Material.
The above steps promise a strong consolidation in our strategy towards further entrenching our past 40 years strength in the commodity business. Despite the large capex plan we see a Risk Mitigation enfold since:
- For every single capex plan, we are advantageously relying on our 40 years of proven strengths in Raw Material Sourcing, Manufacturing, Energy management, Safety, Pollution norms, Logistics, Sales, Distribution, Collections and Regulatory environment management.
- For each of the Capex Plan we have captured cost effective top class assets which will not only give us lower capital costs but also a head start in project delivery schedules as well as simpler project complexity management.
- The capex plan being in the very same products where we already have strong market presence, we see the lowest gestation phase to ramp up from commissioning to rated capacity utilization which could otherwise have been a typical painful initial phase in any capex cycle
- With the help of top-class Management consultants, we are already on our way to size up our IT, Sales, Operations. However, the strengthening and scaling up on the commodity strategy is only half the story.
The other half is the transformative journey towards the consumers by way of customizing. While we have begun that exciting journey too, should we not leave that story for next time….
A leader who takes his company from strength to strength needs little introduction – his work speaks louder than his words! Mr. Sailesh C. Mehta is one such inspiring leaders who has steered his organization towards success. Mr. Mehta assumed office as Deepak Fertilisers & Petrochemicals Corporation Limited’s (DFPCL) Managing Director in 2002 and was appointed Chairman in 2012. Under his able leadership, the company has emerged as one of the world’s top five manufacturers of Technical Ammonium Nitrate, Asia’s leading manufacturer of Nitric Acid and a domestic market leader in specialty fertilisers and crop nutrients. He also led the company to become one of the largest producers of Iso-Propyl Alcohol (IPA), Ammonium Nitro Phosphate and Bentonite Sulphur and has been instrumental in launching its first indigenously manufactured water soluble fertiliser. DFPCL has also been ranked no. 3 amongst chemical companies in India by Dun & Bradstreet.
AN EARLY BEGINNING
Sailesh Mehta’s involvement with DFPCL extends over three and a half decades when he first started work on the brand’s manufacturing operations, following his management degree from Texas, USA. He then spearheaded the expansion of the company from only an ammonia manufacturer to a multi-product market leader spanning fertilizers, mining chemicals, petrochemicals and value added real estate. Focus on growth and confidence in his business model prompted Mr. Mehta to embark the next phase of growth journey. The company has already announced its expansion in the fertilizer business, from the current 300,000 MTPA to 800,000 MTPA and is also in the process of doubling the capacity of Bentonite Sulphur, its specialty fertilizer. Apart from this, the company has also announced a green field Nitric Acid project in Dahej, Gujarat.
With his keen focus on improving nutrient management and farm economics of the country, Mehta is reckoned amongst thought leaders in the Indian Agri-business sector. He has for several years been a part of top-office bearers of the Fertilizers Association of India (FAI) and has been the Chairman for FAI Western region for over 6 years. He has been keenly associated with the International Fertiliser Association as well. His leadership style can be characterized as one with a democratic approach, wherein he continuously seeks ideas from people, encourages them to challenge status quo and drive innovation across the organization.
THE CSR INFLUENCE
Under his guidance and in association with Ishanya Foundation, several programs have been initiated with an objective to create a self-sustainable society. These programs majorly focus on women empowerment, vocational training, health and education. Uniquely, the focus is to ensure that the relationship with the beneficiaries is not one of misfortune but of pride which ensures a desired end-result of the CSR efforts to bring proud self- reliance among the recipients. DFPCL has been conferred with the Prestigious Special Jury Recommendation FICCI CSR Award in 2017.