“Our combined product portfolio and capabilities are well-positioned to address the emerging requirements.”
Alphagary is a global leader in the design and manufacture of specialty polymer compounds and a division of Orbia’s Polymer Solutions business group. The company specialises in the design, development, and manufacture of a wide variety of compounded materials including those based on PVC, TPE, Olefin, and urethane polymer systems. In June 2021, Alphagary entered into an agreement with Shakun Polymers Pvt. Ltd. to acquire majority share ownership. As a direct complement to Alphagary’s specialty product offerings that support a connected world, Shakun’s product development focus is on halogen-free, flame-retardant compounds and PVC-based compounds for data and power cables. In an interview with Wire & Cable India magazine, Mr. Gautam Nivarthy, Executive Vice President & President, Polymer Solutions-Alphagary, talks about the acquisition and future plans.
Wire & Cable India: Alphagary has acquired a majority share ownership of Shakun Polymers Pvt. Ltd. (Shakun). Could you please outline the details of this acquisition?
Gautam Nivarthy: Alphagary has invested to take a majority ownership stake in Shakun Polymers Pvt. Ltd. (Shakun) to create a world-leading specialty compounds solutions provider primarily targeting the wire & cable industry. The solutions of Alphagary and Shakun are complementary. Our market-leading solutions in Alphagary, sold under brand names MEGOLON® (HFFR compounds), GARAFLEX® (flame-retardant TPE compounds), SMOKEGUARD® (compounds for plenum applications), and our GW series (flame-retardant PVC compounds) have primarily been focused on the European and North American markets. Shakun has developed solutions sold under brand names ECOTEK® (HFFR compounds), FRTEK® (flame-retardant PVC compounds), and VINYLTEK® (flame retardant PVC/TPR compounds) that have a market-leading position in India, the Middle East and Africa. In many parts of the world, regulatory standards for wire & cable products continue to evolve with more focus on safety. Our combined product portfolio and capabilities are well-positioned to address the emerging requirements. With our combined capabilities and expertise, we intend to bring best-in-class solutions to customers globally. We will continue to invest in Shakun to allow for greater growth in this critical market.
“With our combined capabilities and expertise, we intend to bring best-in-class solutions to customers globally.”
WCI: In view of the recent investment, how would you describe the growth strategy of Alphagary and the kind of role this acquisition is projected to play in solidifying your position in the global market?
GN: Alphagary has a long-term commitment to growth in the specialty compounds market. This growth will be driven by geographic expansion into critical markets such as Asia, extension into new product offerings through innovation, diligent capital investments for organic growth as well as bolt-on acquisitions where relevant. The investment in Shakun gives us an opportunity to build and strengthen an innovation platform to primarily India, the Middle East, Asia, and Africa, but more broadly across the world.
WCI: What are your thoughts on the company’s prospects in the Indian wire & cable market? How do you think the Indian market is positioned in the global marketplace with respect to the innovations and technological upgradations and the future growth in the forthcoming years?
GN: The Indian wire & cable market is poised for significant growth in the years ahead. The need for infrastructure investments, robust safety standards and implementation of technologies such as 5G fibre to the home and alternative energy are all trends that will continue to empower strong growth in the years ahead. The market is also making technological strides of its own and the government has shown willingness to ensure that regulation and government spend are aligned with these trends which also bodes well for the market.
WCI: What will be your strategies for serving the needs of the wire & cable market in the country including the building of a robust local supply chain?
GN: We believe that the location of Shakun, centered in Gujarat, gives us an excellent footprint to serve our customers in India as well as other parts of the world. As next-generation requirements increase, we are prepared to make investments that support customer progress in this space.
“Besides local manufacturing and enriched product portfolios, our customers will benefit significantly from our shared model of building trust and servicing them with customized solutions.”
WCI: With Alphagary’s specialty product offerings and Shakun’s products – halogen-free, flame-retardant compounds and PVC-based compounds for data and power cables; what do you think is the impact of the investment and the resultant consolidation with terms to profitability and the productivity of the company?
GN: We have invested in Shakun because there are great synergies in this union. Besides local manufacturing and enriched product portfolios, our customers will benefit significantly from our shared model of building trust and servicing them with customised solutions. This means our combined R&D teams are progressive and agile, no matter which brand offers the necessary customer-focused solution. We will work hard to increase this innovative platform with collective resources starting with the solid reputation earned by the existing brands and building to capitalise on the familiarity and strength that already exists.
WCI: What can we hope to see from the company in the future ahead? What are your plans for sustaining and furthering the growth and reach of the company in the coming years?
GN: Alphagary’s focus on actively servicing our customers and their next-generation requirements in India, the Middle East, Asia, and Africa is the reason for this investment. Over the next several months, we will dedicate our collective resources to ensure our growing customer base experiences the immediate value by way of local manufacturing, combined technical innovation, and hands-on customer support. By staying close with our customers, we will continue to hear their needs and we will take action accordingly. In this way, we underline our commitment to being their innovative solutions provider. You will see us continue to make investments to support this growth and this will manifest in new products based on our combined innovation engine.
WCI: Any concluding thoughts on the interaction?
GN: At Alphagary, we are very excited about the investment we have made in Shakun and we are focused on using this investment to increase customer satisfaction not only in India or Asia but also in the rest of the world.
