We Have Set a Target of Achieving 10 Percentage of Market Share
22 May 2018
In an interview with Huned Contractor, the chairman and CEO of Sujanil Chemo Industries, talks about the company's product and ambitious expansion plans
Pune-based Sujanil Chemo Industries, a leading manufacturer of agro chemicals and pesticides along with household insecticides and various pest control and public health products has completed a long innings of 50 glorious years. Established in 1966 by late Anil Kumar Desai, the company has been able to set a benchmark for quality products with competitive pricing and sustainable technology. The company is known for its popular products such as Licel, a herbal oil-based lice killer; Nok 99, a multipurpose insect killer aerosol spray; Airoma Air Freshner, specially formulated using premium aromatherapy oils; Nok 99 Magic Gel, a cockroach killer gel; Nok Lines, extra strong chalk to eliminate all types of crawling insects; Wood Shield, a termite killer, etc.
Celebrating the company’s achievements over the past five decades, Ashish Desai, Chairman and CEO of Sujanil Chemo Industries, said that customer trust comes from excellent quality and consistent performance and this is the reason they have been able to create milestones despite increasing competition. The company currently has four production units at Kondhwa, Gahunje, Pirangut and Urawade installed with state-of-the-art technologies and manufacturing facilities. It also has an in-house research and development department at Wanowrie in Pune, which, as Desai puts it, has been a pillar of their success with innovative products to suit customer requirements. Recently, the company undertook a project to upgrade its plants to comply with the requirements of a line of products that are made as per standards laid down by the USFDA and WHO. Excerpts from the interview:
Could you provide a history of how the company was started and what was the impetus behind getting into this business venture?
Our founder, Anil Kumar Desai, was a postgraduate in Science and had been working in a pharmaceutical company. However, he was very keen to turn entrepreneur. He had many dreams and ambitions. At the time he was planning to start his own venture, he was approached by Sunderlal Shah and Jayantilal Shah, local traders, who wanted to venture into manufacturing. This is what led to the formation of ‘Sujanil’ – Su stands for Sunderlal, J stands for Jayantilal and Anil stands for Anil Kumar. We have been engaged in the manufacturing of various agrochemicals along with household insecticides and various pest control and public health products, air care and natural cosmetics. We offer a comprehensive range of innovative products known for their quality, competitive pricing and sustainable technology.
In a largely unorganised market, how has the company managed to grow over all these years? What has been the USP?
We at Sujanil aim towards working together for customer satisfaction with effective and efficient quality management system, strong focus on research and development, continual improvement and total involvement of our employees and associates in the field of manufacturing. Sujanil has a fine combination of future planning, focus on modern management, high productivity, and excellent and strategic partnerships. The sole target is to meet varied and ever increasing needs with quality reliable products.
Today, Sujanil stands tall and we feel proud and happy; proud for being a market leader and happy for being able to harness technology for bettering lives. All of this has led to attract reputed manufacturing companies like Bayer India Ltd., Indofil Industries Ltd., Hikal Ltd., Rallis India Ltd., Rotam India Ltd., R3 Crop Care (P) Ltd., etc. to associate with us for their needs. In this industry, we are known for our quality consciousness, product efficacy and consistent supply. Ethical business practices with integrity, zero tolerance level in production quality and long-term association with our partners and employees are our USPs.
How different are the chemical formulations used by the company as compared to your competitors? And how have these helped gain customer trust?
We have tried to add value by differentiating our products using innovative technology, thereby making them user-friendly with maximum efficacy. A 50-year-old legacy of consistent quality products with zero defect quality has helped us gain customer trust.
What is the size of the household chemical market?
The estimated market size of household insecticide and home care products is currently of an approximate value of Rs 4,500 crore as per the statistics available from Home Insecticides in India, EuroMonitor International, Nielsen (India) and an internet survey.
Could you provide details about the production infrastructure and capacities? As mentioned earlier, Sujanil has four units at Kondhwa, Gahunje, Pirangut and Urawade near Pune, well-equipped with latest infrastructure, machinery and technologies. The production processes are seamlessly integrated to achieve optimum superiority. Right from purchase of raw material to delivery of finished product, several intermediate quality checks are performed to ensure that only the best quality products are manufactured with speed and accuracy. Our units are ISO-9001:2008 certified and are in line with WHO, GMP and USFDA standards. All of our units have installed capacity of about 12,000 MT.
What kind of research and development does the company engage in to introduce new products?
Our team of research and development professionals strives to develop excellent products that take care of consumer needs with guaranteed solutions to their pest control problems. We are also striving hard to make our products more eco-friendly and moving towards developing 100% natural and organic products, thereby helping the environment.
What are the challenges faced in this sector?
There is always stiff competition from multinationals and Indian giants. Also, limited resources available to small manufacturers, thereby making expansion projects a little difficult to manage.
What are the company’s expansion plans for the coming year?
We have set a target of achieving 10% of market share in the upcoming years through a spread in marketing activities through the deployment of a dedicated and hard working sales force of more than 100 people.
How do the sales of your products in urban areas compare with rural regions?
The sales of our products are divided in a 70:30 ratio as far as urban and rural areas are concerned.
Do you also export your products? If so, to which countries and in what quantities?
We are a pioneer and leader in the industry with foot prints in nations like Russia, Nepal, Bangladesh, Middle East, Gulf, Thailand, Singapore, Nigeria, Malaysia, Kenya, etc. Our products are exported to the US as well and we will expand the geographies in the near future, which will take us a step closer to our dream of making Sujanil truly global. Though the volumes are very small at present, we are all geared up to take a major step to grow up globally. We export our agricultural pesticides to more than 65 countries.
What will your next growth phase consist of?
The next phase of growth is equally exciting. We are expanding our product range with new world-class products such as Vanashree Herbal Baby Massage Oil, Vanashree Insect Repellant Lotion and Wow Floor Cleaner. We will be setting up a new facility at Kurkumbh in the next phase of growth. With this, our main aim would be to grab 10% market share in the Rs 5,000 crore home insecticide market in the next five years. We currently have a pan-India distribution network of more than 3,500 dealers and this number will increase too.
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