Mexichem is a leading provider of products and solutions across multiple sectors from petrochemical to construction, infrastructure, agriculture, healthcare, transportation, telecom and energy, among others. Mexichem Specialty Compounds was created from the combination of AlphaGary (acquired in 2011) with Mexichem’s Compounds business in Mexico and Colombia. Mexichem Specialty Compounds’ leading brands include Megolon LSHF compounds, Smokeguard low-smoke flame retardant compounds, Evoprene and Garaflex TPE compounds, and Garathane TPU compounds.

Mexichem’s other companies, viz. Dura-Line and Wavin are already present in India in the pipe and conduit segments. Mexichem Specialty Compounds is now trying to penetrate the Indian market, including wire and cable, with its Fire/Flame Retardant PVC, Low Smoke Halogen Free (LSHF), TPE materials, Olefin compounds, injection grade compounds as well as extrusion grade compounds.

WCI recently interacted with Mr. Krishna Joshi, VP – Compounds Business, AMEA (Asia-ME-Africa), Mexichem Specialty Compounds. Excerpts:

Wire and Cable India: Mexichem has a strong presence in PVC resins and compound products. Is there any other product Mexichem is working on?

Krishna Joshi: Mexichem Specialty Compounds develops and produces compounds based on a wide range of chemistries. In addition to specialty PVC compounds for wire and cable, automotive and other applications, we have in our portfolio compounds such as LSZH/HFFR based on polyolefins, TPEs based on styrenics and polyolefins, TPUs and other polymeric blends and alloys.

WCI: Tell us about your existing manufacturing facilities. How will the new facility in Goa (India) be different from the others? Kindly share some more information on the thermoplastic compounding plant in India. Also, tell us about the products the new facility is going to manufacture.

KJ: Today, we have compounding facilities in the US, UK, Mexico and Colombia. Our Goa investment will seek to replicate the full breadth of Mexichem’s compounding capabilities to support growth in India as well as the broader Asian market. We will produce compounds for the wire and cable, medical, automotive, consumer and general industrial applications.

WCI: Apart from this, does Mexichem have any other expansion plans in India or anywhere else? Share with us any other recent developments with regard to product development, the new market reached and capacity addition.

KJ: For the last several years, Mexichem is operational in India in the Fluent (Pipes & Fittings) Business Group through the Dura-line and Wavin brand. We have our plant locations in Goa, Neemrana and Hyderabad for the manufacturing of pipes and fittings. With respect to Mexichem Specialty Compounds, this is our first supply chain and manufacturing investment in Asia, and we have plenty of space available for future expansions at our Goa site to meet our Phase II and Phase III demands.

WCI: Compounding remains one of the most dynamic segments wherein it does not take much time for a compound to become obsolete. What do you do to stay relevant in this fast changing demand scenario regarding polymers and compounds?

KJ: Each of our manufacturing locations have a full fledged R&D centre, where we are equipped to conduct product development and application engineering activities to meet the current and future demands of the market as a whole, and individual customers specifically. It is here that we study the future trends in the market and various new developments that occur in both polymer materials and processing, and deploy these lessons to develop new compounds that exactly meet the needs of the customers.

India is no exception and we will invest in building a world class R&D organization in India focused on delivering solutions relevant to the local market while leveraging Mexichem capabilities. Our current plans include investments in material characterization, performance testing, product and process development as well as applications development and testing support at the customer interface.

WCI: Tell us about your business strategy concerning Mexichem’s expansion in the Indian market. What kind of competition do you perceive with the existing domestic players and how do you plan to overcome that?

KJ: We see Asia and India in particular as an attractive and sustainable growth market for specialty compounds due to the increasing need and focus on infrastructure, energy and durable goods related investments.Our growth strategy is to build from our strong capabilities in the US and European markets. We aspire to represent the highest quality in the markets we serve, which will include wire and cable, medical, automotive and other industrial segments. Mexichem brands such as Megolon®, Smokeguard®, Garaflex® and Alphaseal® have established themselves as leaders in their markets and our effort will be to reinforce those exact capabilities for the benefit of customers in India and the broader Asian region.

WCI: Do you have any idea about the present compounding market size in India and where do you see it 5-10 from now? How would Mexichem like to contribute to that growth?

KJ: It is difficult to put an exact number on the market size for thermoplastic compounds, although we do have our own confidential estimates. We believe that the underlying fundamentals of the Indian economy support stable growth.

WCI: What are your present take on the Indian wire and cable industry and how is it going to grow in 5-10 years seeing the government initiatives and infrastructural growth, how do you see it coming?

KJ: Mexichem is extremely bullish on the growth of the Indian wire and cable industry. All the major initiatives related to Make-In-India, infrastructure in form of metros, railway, airports, industrial corridors are not only going to generate increasing need for wire and cable, but also may place high demands on the performance of the wire and cable industry. The next generation of telecom revolution in terms of fibres reaching homes is another example in point.