Economic Times (ET): What business is MCON Rasayan into and what are the products it manufactures? How and why did it decide to enter this line of business?
Mahesh Bhanushali (MB): MCON Rasayan India is a decade-old company in modern building material and construction chemicals. Today, we are a leading manufacturer and supplier of high-quality construction chemicals and building finishing products to the Indian industry.We have a suite of over 80 products under building materials and construction chemicals, admixtures for concrete, tile adhesives & grout, waterproofing coating products, concrete repairs & wall finishing products & protective coatings, paints & polymerised wall textures, etc.
We were into distribution of construction chemicals for one of the popular brands in this segment and during that period, I developed a natural affinity to this segment. I had been a businessman before and had tried my hands at different businesses like octroi clearance, oil distribution, fabric glue and so on. So, when I got to understand the business of construction chemicals, I understood it was a business with potential and would give me a lot of mileage in days to come. Along with my brother, Chetan Bhanushali, I ventured into the field of construction chemicals manufacturing in 2010.
ET: India has seen an infrastructure boom over the last few decades. How has the company’s products and solutions evolved and how has this made a difference?
MB: MCON Rasayan is the first company to get listed on the National Stock Exchange in the construction chemical segment.
The growth of a construction chemical manufacturing company depends largely on the research and development activities of the company. There is a constant need for innovation in the product spectrum. On the other hand, strong R&D set up ensures quality management and cost reductions. Since MCON Rasayan has its own R&D center in Mahape, Navi Mumbai, we are evolving with new and technologically advanced products.
The strategic pillars of growth were led by up-gradation strategies and deeper penetration into new cities, setting up mechanisms to reach alternate channels and increasing the depth in the distribution through targeted openings.
MCON will look at a PAN India expansion and in the next few years, we are also eyeing the overseas markets.
ET: What are the opportunities in the construction chemicals business and what are the threats?
MB: With India focusing on extensive infrastructure development, there is a growing demand for construction chemicals. Similarly, with sustainability as a big theme for India as it is worldwide, there is an increasing demand for construction materials that meet green building standards. Government initiatives like Make in India and a focus on affordable housing can boost the construction sector.
Having said that, there are threats which include steering through the regulatory framework, which is very tedious in a country like ours. The Indian market is very price sensitive as well, so maintaining a delicate balance in this cut-throat business environment is not easy either. Then there are other threats and challenges like local competition, variation in weather throughout the year and in various geographies, etc.
ET: The company has its own R&D unit. What are the types of research happening in this unit and the result from such efforts?
MB: Our efforts to continue innovating and providing newer offerings to consumers paid rich dividends. We got inroads by giving some innovative epoxy coatings to the industry and thus penetrated the infrastructure projects related to the water supply chain. The two-component epoxy food grade paint has found excellent response from the specifiers (different government bodies), the government officials and the contractors and it also helped us in bettering our bottom lines.
In the exterior product segment, we introduced the deco floor & deco wall range of premium exterior decorative floor finishes and wall finishes that are much sought after by architects and structural consultants.
We are working extensively on the anti-corrosion systems that will ensure that the buildings stay healthy for a longer period. The major challenge faced by the construction fraternity today is how to protect the steel reinforcement from corrosion that can happen through moisture or carbon dioxide, which is there in the atmosphere because of heavy pollution. MCON Rasayan has brought some innovative anti corrosive admixtures and systems which will ensure that the steel is well protected throughout its life.
ET: Where are the company’s manufacturing units located and what is the production capacity?
MB: MCON has two manufacturing facilities – the existing one is at Sarigam near Vapi in Gujarat and the new greenfield project is at Ambethi, Vapi. This is being developed over a total area of 3 lakh sq. feet. This manufacturing plant will ensure that MCON Rasayan can service all big customers of the Western zone.
The first phase of the plant has already started, which will increase the manufacturing capacity of grey powder products. The plant will be fully operational by the end of the calendar year and will have multiple zones to manufacture the grey powder products, white powder products, polymers and paints, admixtures and also the high-end specialized repair products. Grey powder products are tile adhesives, ready-mix mortars, etc, while the white powder products are wall putty, crack fillers, etc. The total capacity of the company once all the units are operational will be around 40000 MT, including powder and liquids.
ET: What are the different projects the company is involved in currently and what does the order book look like?
MB: We are mainly operational through our over 50 distributors and over 500 dealers who are spread across the Western zone of India. Hence, we cannot give you any specifics about the projects or the order book. But yes, currently we are doing a lot of infrastructure projects like supplying our products for the repairs of dams and bridges, food grade coatings to the reservoirs, admixtures to the roads and flyovers being built. We are also taking part in the Prime Minister Awas Yojana projects across the geography.
ET: What are the expansion plans for the company?
MB: We are currently focusing on certain new products in the admixture domain as well as the geographical expansion is on cards. We have already made some strategic plans of having a manufacturing base in the North and South zone of the country so that we can address that market well. Predominantly, our growth has always been over 60% YOY and we are confident that we will do better in years to come.
ET: What was the company’s revenue last year and what is the company expecting to clock this year?
MB: We closed last year at over Rs 31 crore turnover and we are looking at a 60% YOY growth.
