With a turnover of INR 109 billion and manufacturing capacity of over 1.4 million TPA, KLJ Group is a business conglomerate which has established itself as the biggest supplier of plasticizers and polymer compounds and the second largest manufacturer of benzyl derivatives in India. Talking about the global presence, they export to more than 90 countries, claiming to be the largest manufacturer of chlorinated paraffin in the world and the third largest plasticizer’s manufacturer in the world. KLJ Group has commissioned a state-of-the-art chlor alkali plant in Qatar. In an exclusive interview with Wire & Cable India, Mr. Sanjay Mittal, Vice President- Sales and Marketing, KLJ Polymers & Chemicals Limited, talks about the recent development at KLJ Group, expanding its sales operations in Dubai and Singapore.
Wire & Cable India: Kindly share about the recent development at KLJ Group?
Sanjay Mittal: The KLJ Group has recently began production of plasticizers and phthalic anhydride at their first integrated facility in Bharuch, Gujarat in June last year. By incorporating a phthalic anhydride (PA) unit, KLJ Group has achieved backward integration in India, enabling the company to utilize approximately 70-75% of phthalic anhydride produced for captive consumption. The company is also happy to share that they have started sales operations from 2 overseas locations – Dubai and Singapore.
WCI: From a humble beginning as Kundalia Industries in 1967 to becoming one of the largest manufacturers of plasticizers and polymer compounds in Asia, how has the KLJ Group evolved in all these years? Please share your major milestones and achievements.
SM: In 1967, KLJ Group started with a modest beginning with a PVC compounding plant in Delhi under the name Kundalia Industries. The progressing years saw the Group diversifying into manufacturing of primary as well secondary plasticizers, mainly catering to PVC industry along with serving many other industrial applications like adhesives, paints and coatings, perfumery, lubricants, catalyst, and many more products and byproducts.
Later on, under the vision and guidance of our management, KLJ Group progressed to be the market leader in the segments/industries that it operates in – be it polymer compounds, be it primary or secondary plasticizers or benzyl derivatives. Today, we can proudly say that KLJ Group is amongst the largest manufacturers and market leaders in plasticizers and polymer compounds in the world.
Throughout the span of 57 years, KLJ Group has never looked back and has added numerous feathers to its cap. The most recent advancement has been the opening of overseas offices in Dubai and Singapore to represent the Group for its various marketing activities abroad. KLJ Group has received many awards and accolades throughout its journey that speak leaps and bounds of its success. Some of these are – Udyog Patra Award in 1982 as self-made man, AIMO Best Productivity Award in 1986, Udyog Vibhushan Award in 1986, Yuvak Ratan Award in 1992 (Highest Honorary Award of Akhil Bhartiya Terapanth Yuva Parishad), State level appreciation by the Govt. of Rajasthan for services in the field of education as Bhamashah Educational Institutions in 1997, Swatantra Swaran Jayanti Udyog Award in 1999, Best Productivity Award from All India Plastic Industries Association for three consecutive years, Rashtriya Samman conferred by Govt. of India, Ministry of Finance on June 21, 2000, Outstanding Achievement Award at 3rd International PVC & Chlor Alkali Conference during Vinyl India – 2013, Award for “Product Innovator of the Year in Petrochemicals”. The award was conferred by FICCI on 4th Oct, at Mumbai, during India Chem-201, Shiksha Vibhushan Award 2018 by Govt. of Rajasthan for contribution in the field of education, and Pride of Rajasthan Award 2022 by Govt. of Rajasthan.
KLJ Group has achieved significant milestones over the years. The group entered PVC compounding in 1998, flame retardant plasticizers in 2001, and diversified into various compounds in 2004. With international expansion in 2008 in Thailand, KLJ brought its plasticizer capacity to over 300,000 TPA. Further the company’s expansion includes benzyl derivatives in 2016, a joint venture in Qatar in 2019, and engineering polymers in 2021. In 2022, an integrated plasticizer facility with 300,000 TPA capacity and 100,000 TPA of phthalic anhydride was launched in Bharuch, Gujarat, strengthening KLJ’s position in the global market.
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WCI: Kindly share about your infrastructure and manufacturing capabilities in both India and abroad.
SM: KLJ Group is a multi-product and multi-locational business conglomerate, with a turnover of INR 109 billion (USD 1.4 billion) having manufacturing capacity of over 1.4 million TPA and a 2200+ dedicated and qualified personnel persistently pursuing innovation, development and growth. We have also established ourselves as the 2nd largest manufacturer of benzyl derivatives in India.
The 21st century marked the company’s diversification into manufacturing of TPR/TPE, EVA, PP, engineering plastics, XLPE, semicon, EPR, ZHFR, PO, compounds etc. and a range of masterbatches, both color and functional. The polymer compounding at Silvassa and Agra has brought KLJ Group among the top Indian polymer compounders with a total capacity in excess of 200,000 TPA.
The Group produces a wide range of plasticizers across the globe and is the 3rd largest manufacturer in the world. Besides this, Group is also the largest manufacturer of chlorinated paraffin in the world. The Group has a dedicated research and development facility for each of its manufacturing units having the facility that spans over a landscape of a total of 55,000 sq. ft. The R&D facilities are recognized by the Department of Scientific & Industrial Research, Government of India. The focus on quality control is also demonstrated by the accreditation of the QA Labs, meeting ISO/IEC 17025:2017 standard, by National Accreditation Bureau of Laboratories (NABL), Government of India.
KLJ Group has advanced equipment like TGA, FTIR, UV, weatherometer, GCs, autoclaves, rheometer, extreme temp. UTM, etc. and application plants for wire, sole, foam sole, film, tubing, injection moulding, flammability, high voltage testing and many more.
Talking about the global presence, KLJ Group has commissioned a state-of-the-art chlor alkali plant in Qatar. The Group has also diversified into the chemistry of benzyl alcohol, benzaldehyde, benzyl chloride and its derivatives.
WCI: What is your USP that sets you apart from others? How do you retain your position as one of the global leaders in plasticizers & polymer compounds?
SM: We live by our motto ‘Trust Built on Performance.’ With our commitment to offer the best, be it products or cost-performance, we offer best value to the customers. We make continuous efforts to facilitate innovation in the company by constant up-gradation of skills of our people & hardware. The market accepts us as a solution provider with high-quality products that meet their evolving requirements. Our commitment towards our customers is to help them to ‘Stay Ahead-Stay Healthy’ and work with them in the true sense of partners-in-progress. This is the market value for us.
Our market presence is a result of our commitment to the customers. The long-term relationships with the customers are forged with mutual respect and transparent working, being a trustworthy partner with a true sense of collaboration. We are the biggest supplier of plasticizers and polymer compounds in the country. We export to more than 90 countries. It is a strong priority for us to remain in close contact with our customers & deliver quality products on time.
WCI: Kindly give details about your market footprint and major clients.
SM: KLJ Group is a multi-product and multi-locational business conglomerate, with a turnover of INR 109 billion (US$ 1.4 billion) having manufacturing capacity of over 1.4 million TPA and a 2200+ dedicated and qualified personnel persistently pursuing innovation, development and growth. We have also established ourselves as the 2nd largest manufacturer of benzyl derivatives in India. Moreover, the Group also have a trading arm namely KLJ Resources Limited, having Global Ranking among top 50 chemical distributor in the world, mainly into trading and distribution of chemicals and petrochemicals and also into development and building of real estate and infrastructure development, which has so far delivered over 4 million sq. ft. of space.
Our leading position is supported by the large variety of plasticisers we offer, including phthalate, maleate, specialty and flame-Retardant. The Group’s strong market position is underpinned by the large scale of operations and diverse clientele. KLJ Group is expanding plasticisers and polymer compounds capacities, which will further support revenue growth over the medium term. Also, backward integration through captive phthalic anhydride (PAN) capacity will help in improving its operating efficiency and strengthening competitiveness in the plasticisers segment, which should result in better profitability.
The financial risk profile of the group is expected to remain comfortably supported by high net worth, limited dependence on external debt and healthy cash surplus. KLJ Group’s clients include a variety of industries with diverse customer base and export to more than 90 countries. It includes footwear, cables, flexible Polyvinyl Chloride (PVC) films, leather, vinyl flooring, medical equipment, adhesives, perfumes, automobile parts, and rubber belts.
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WCI: Discuss the global trends of the polymer compounds sector and how do you foresee the future of the industry?
SM: Future trends in polymer science and technology include sustainable polymers, smart polymers, and nanocomposites. Sustainable polymers are expected to be a significant trend in the future of polymer science. As the world becomes more environmentally conscious, the demand for eco-friendly materials is increasing.
I see that the global polymer market is expected to grow, driven by a number of factors, including- rising demand, lightweight polymers, bio-based polymers, automation, and product quality. The demand for polymers is increasing across a number of industries, including packaging, automotive, electronics, and medical devices. The adoption of lightweight polymers is growing. Over time, there is a shifting focus towards bio-based polymers, and in the coming years, we plan to explore more on this.
Apart from that, increased automation and flexible production technologies are expected to improve efficiency and reduce production costs. Improved prediction of processes and product quality is expected to increase product reliability and prevent defects from entering the market.
Some of the interesting trends in the polymer industry is that the automotive industry is focusing on component downsizing and functional integration due to pollution control regulations. The Asia-Pacific region is the market leader and we contribute a major chunk in this. Additionally, thermoplastics are going to be the main revenue contributor for the polymer industry.
WCI: What are your long-term goals for the growth of KLJ Group? Where do you see your company after five years?
SM: The long-term goal of KLJ Group is to achieve well-balanced growth in all the businesses that we are into and make an impact on the industry strictly through ethical business practices, thereby keep building the trust of all the stakeholders. The Group is on a mission to be significantly instrumental to the nation’s economic growth while maintaining its uniqueness in whatever business we commit to.
KLJ Group believes that “Our people are the most valuable assets and key to our achievements, mission of quality, and customer satisfaction.” The trust in our strong dedicated workforce helps us tackle the day-to-day challenges that come in our way by providing the best possible solution.
Future is technology, and our founder asserts, “New technology has brought in tremendous change in the chemical industry. KLJ Group has already brought in resource optimization at its plants, which has resulted in more than 30% energy saving in one of the products.’’
The group pays special attention to the sustainability of its processes. Not only does this help the company in cost saving, but also helps against global warming. Continuous development of new products and customization as per customers’ requirements is also a step in this direction. Our new plant for manufacturing Benz products is based on a new technology, which has resulted in better yield and quality.
In the coming few years, there are a few new projects under active consideration such as-capacity expansion of Benz products from 15 KT to 40 KT per annum, and other greenfield/acquisition projects both in India and overseas.
