Masters of industrial coating for over a century, Shalimar Paints aims to become one of the top three Indian manufacturers by the end of 2024, targeting a revenue of INR 750 crore in this fiscal. It plans to become an INR 1,000 crore company and explore the Middle East market in the near future. Mr. Suresh Nair, Vice-President, Shalimar Paints Limited, revealed this and much more during an exclusive interview with Tube & Pipe India.
Tube & Pipe India: Kindly walk us through your illustrious business journey, highlighting major achievements and crucial milestones.
Suresh Nair: Shalimar Paints has been in the industry for the last 120 odd years. We started our journey in 1902 and have two primary businesses- decorative business and the industrial business. I’m handling the industrial vertical and our participation in the Tube and Pipe Fair 2024 is part of our efforts to take this august venture to greater heights.
Over the last 50-60 years, we have been the pioneers in introducing innovative coatings for a variety of substrates and applications. We were the pioneers in introducing specialized coatings for the steel industry. We have many firsts to our credit. Shalimar Paints was the first company to introduce paints for fighter aircraft in the 1950s. We were the first company to introduce long-lasting protective coatings for the shipping industry. We were one of the largest players in the nuclear market.
TPI: How sustainable are your operations?
SN: We have been working on sustainability for around two years now. We are doing it in stages since any change in this direction involves a lot of investment. We do business with corporate giants or big manufacturers in the tube and the pipe industry, such as the Tatas, Welspun World, Man Industries (India) Limited, Surya Roshni Limited, etc. Their expectations are crystal clear. They like to associate with vendors, who are themselves making conscious efforts towards achieving a sustainable future. We are doing the same, partnering with sustainable vendors.
The coating industry is extremely wide. We need to make sustainable efforts at all stages, starting from the raw material stage, formulation stage, transportation stage to the customer level. We are the only company which supplied solvent-free epoxy coating for the prestigious NEOM project of Saudi Arabia, one of the biggest projects in the world. We are a listed company and maintain transparency in our dealings. People look up to Shalimar Paints to see how they can adopt sustainable practices.
TPI: What factors have helped Shalimar Paints to achieve its present positioning?
SN: There is a very beautiful quote by Mr. Natarajan Chandrasekaran, Chairman of Tata Group, “If you have a resilient manufacturing facility, you can deal with various situations.”
For us, Covid-19 was a game changer. During the pandemic, rather than reducing our outputs, we invested heavily to make our infrastructure robust. We doubled the capacity of all three plants. It was only a matter of time before the economy came back on track. We believe the people who did not see this game happening, lost out big time.
We would like to extend a big thanks to the Union Government for pushing the Make in India campaign. It has really been a game changer. A lot of organizations have started using indigenous products.
TPI: What is your overall production capacity and applications areas within tube & pipe industry?
SN: We started at around 3000 KL per month across our three plants two years ago and today we are close to around 4000 KL. Right now, we cater to two specific pipeline industries. First is the ductile iron pipe industry and second is the mild steel or the Longitudinal Submerged Arc Welded (LSAW) industry. This is where the coatings are typically used.
Ninety percent of coatings are used for drinking water pipes because India is investing heavily in drinking water projects. We are not really present in the contracting segment because we have to be absolutely sure about the payment schedules of such contractors. We tend to stick clearly with the manufacturers and that is one part of the business, which we would not like to move away from.
TPI: Please share details about your market footprint.
SN: If you were to look at pipe manufacturers, they are present in the Western zone and the Eastern zone as well. At both these places, we have dedicated facilities and are able to service the requirements very promptly. Between the three plants, situated at Nasik, Chennai and Secunderabad near Ghaziabad; and across 50 depots in the country, we are able to service our customers within a 7 day period.
We are actively exploring the export market. It’s not that the Indian market is saturated. We still have a long way to go in the country, but we also want to have an international footprint. Currently, we are exporting to the UAE, Oman and Kuwait. We are also selling our products through our dealer channel in Bhutan and Nepal. We did one of our biggest projects last year in Saudi Arabia, which is currently the most promising market in the world.
TPI: Take us through some of the challenges you as a manufacturer have been encountering in the last few years.
SN: In terms of opportunity, post-Covid, the opportunities have increased to a great extent. There is no dearth of orders or requirements as such. The industry is massive and we don’t see the production requirements at the manufacturer level of pipes going down in the near future. One interesting challenge in the industry nowadays is that no two customers are the same. So the pain area of one customer need not be the pain area of another. It is a diverse field, wherein we have to ensure that our products are able to deliver in different environments. For example, if you stay in a very cool location, it may pose certain types of problems to the structure being built in that particular area. If you were to set up the same type of an industry on the shores of Bombay or Gujarat, the type of environmental attack on the structure would be entirely different.
TPI: What kind of policy intervention would you like or expect from the government?
SN: Make in India is a very robust model. Our economy is resilient enough in that essence. We have one of the best performing economic indicators in India.
However, the biggest challenge for us is that a lot of paints are manufactured using crude oil, and we import nearly 70 percent of the country’s domestic crude requirements. India does not have the capability to manufacture crude. We have the capability to address the refining part of it. We have to get crude from Russia, Venezuela, Iran, Iraq etc. With the ongoing geopolitical crisis around the world, it be difficult for us to be cost effective, reduce our wastage, and increase our operational efficiencies. We hope for de-escalation of situations and smooth passage for our products.
TPI: What kind of growth prospect do you see in the tube and pipe industry?
SN: Right now, the Indian tube & pipe industry is flourishing. The DI pipe manufacturers in the country are tripling their manufacturing capacities. They are debottlenecking their production lines and investing in newer technologies. Same is happening in the mild steel or LSAW type industry. India is being looked upon as an alternative to China, to source the requirements across a lot of Middle Eastern countries.
The economy of Europe is currently not very promising. Even the US economy is just about teetering on the edge of the recession. They are barely able to hold themselves alive. The economies which are actually going to drive and make it big in the coming years are India and the Middle East.
TPI: What is the USP of Shalimar Paints?
SN: Our clients know of us as a dependable and reliable vendor, who is in a position to deliver as per the customers’ requirement.
We are looking at quality in the entire sphere. Customers very minutely observe how you are able to pitch your products with zero complaints and with the right approach in the very first time. We have seen the challenges posed by small companies and the cut-throat competition given by large manufacturers.
Sometimes we take a backseat because we don’t want to take each and every order that comes our way. We prefer to deliver workable products, which will not attract complaints.
We are a sustainable company, which delivers quality products on time. Trust, consistency and reliability form the core of our business. Besides, we have a dedicated team of application engineers who offer a complete package of products and application expertise. We have an entire supply chain, which sets us apart from others.
Also Read: Venus Pipes and Tubes Aims to Become Market Leader
TPI: Where do you see Shalimar Paints 4-5 years from now?
SN: We are targeting a revenue of around INR 750 crore in this fiscal. We are working on strategies to become an INR 1,000 crore company in the near future. With regards to the industrial paints market, we are currently among the top five Indian manufacturers and aim to be in the list of top three by the end of this year.
TPI: What’s your message to the tube and pipe manufacturers in India?
SN: The tube and pipe manufacturing industry has taken a lot of strides in the last three to five years. The entire world is looking at India in terms of innovative products coming out of this industry. The importance of pipe manufacturers is growing.
There are two challenges which are immediately going to impact the Indian tube and pipe industry. The first is the transportation of hydrogen and carbon as the current architecture of the pipe manufacturing process is not robust enough to carry hydrogen. HIC (hydrogen induced corrosion) is the biggest deterrent. The pipe manufacturers should look into that.
Second is the ageing infrastructure in India for the effluent pipe replacement market and the government’s focus on clean drinking water for various households. We believe a lot of pipe manufacturers would be required to look at systems and processes, which would increase the life of such pipes and that is going to be a huge game changer for the industry.
TPI: What should be your take away from the second edition of Tube & Pipe Fair?
SN: This is the second time we are participating with TPF. The experiences have been extremely pleasant both times. This is an absolutely unique show where a lot of pipe manufacturers are able to meet their vendors. As a paint manufacturer, we are able to showcase our products and strengths. We have got almost around 15-20 manufacturers coming over to see and try our products. We’ve made it a touch and feel experience. It’s a visual treat for visitors. They are able to see how things work at our end. TPF is a very good platform for sharing knowledge and interacting with the manufacturers. As I suggested earlier, we should be looking at the Middle East as a market the next time. The Tube and Pipe Fair show must go on!!
