83rd Year | 2021-22 | Integrated Annual Report
We are building a portfolio of products and solutions focussed on Green Chemistry that serve diverse set of customers. We have initially directed our efforts in gaining expertise in fermentation platform-based products and Silica products.
Chemistry of High-Performance
Our Specialty Silica portfolio includes a range of high-performance silica products developed at our Innovation Centre in Pune. These superior materials are finding great demand in making high-performance and fuel-efficient green tyres amidst tightening automotive emission standards, labelling requirements of tyres and growth of the EV (electric vehicle) industry. There is also a growing demand in other application segments like silicone rubbers, battery separators, technical rubber goods, and oral care segments.
Our Specialty Silica products are essential inputs for various industries. Key products and their end-use applications are as follows:
Passenger Car Radial (PCR) and Truck & Bus Radial (TBR) segments for high-performance and energy-efficient tyres with better safety and mileage
We successfully stabilised and improved Specialty Silica operations at our Cuddalore plant in Tamil Nadu, reaching 85% operating rates. Improvements in the infrastructure and processes/systems were also made, leading to greater efficiency and more consistent product quality.
In FY 2021-22, during the pandemic, we successfully enhanced customer reach by supplying Silica for personal protective equipment (PPE) applications. We have also made progress in terms of receiving product approvals from key customers. The year saw us expand market reach by strengthening channel partner and distributor networks across the globe, enabling us to commence supplies to overseas customers (both rubber and non-rubber segments).
The battery separators industry needs high-purity Silica. Our innovation centre, business development and plant teams formed a cross-functional team in collaboration with a leading polyethylene battery separator company that has a global presence. With sustained efforts, a new grade of Silica – TAVERSIL 150 with custom properties was introduced. Having medium BET (i.e. surface area), uniform particle size distribution, lower oil absorption and low elemental impurity profile, especially iron and chloride contents (through new recipe and process conditions), this new product meets the specific industry requirements. We are further customising it by working with other product manufacturers for horizontal business growth.
Green Chemistry through fermentation platform
We are leveraging green fermentation platform to offer ingredients and formulations that improve health while delivering a positive food experience.
The Prebiotics & Formulations business develops specialised, nature-inspired and science-backed ingredients and formulations for
human and animal nutrition. FOSSENCE®, a clinically studied prebiotic dietary fibre, is our flagship product. It supports beneficial
bacterial growth in the gut, which is linked to improvement in vital health aspects: digestion, bowel movement, micronutrients
absorption, immunity, and weight management.
Our products are manufactured at the state-of-the-art facility in Mambattu, Nellore, which is FSSC22000-certified and IGBC gold-rated. We have a multi-disciplinary team of scientists working on microbiome science (the core science platform) and fermentation
technology (the manufacturing platform).
B2B: Wellness food and beverage (F&B), nutraceutical formulations and animal feed companies
Flavouring, fortification and essential nutrient applications for F&B, feed and pharma companies
Cane sugar, Cultures (Microorganisms), growth media
Biotransformation of Sugar to fructo oligosaccharides, for more than 95% purity
FOSSENCE® - short chain FOS in liquid and powder form
Through road, air & sea
50% domestic, 50% export
30% direct, 70% through channel partners
Food & Beverage
FY 2021-22 saw markets opening up and a revival in demand. We faced challenges of global container freight disruption, which impacted the import of ingredients for our formulations business. However, sustained engagements across the value chain helped maintain reliable supply. Efforts invested in the past couple of years, backed by strong scientific capabilities and application development, led to increased traction of our products globally. We also completed qualifications for all global key accounts and expanded our reach in Europe with customers developed across the region. This helped increase our total revenues by 93%.
Increased demand for products was met by improving plant capacity utilisation to over 67%. We also focussed on production efficiency, which increased plant throughput by 42%.
We undertook efforts to address concerns raised by customers, through various feedback mechanisms, thereby significantly improving customer satisfaction. This enhanced customer connect was leveraged to cross-sell FOS and formulations.
FY 2021-22 saw an increase in procurement cost, leading to higher variable cost. This was partly offset by increased realisation. Further, we implemented initiatives to improve cost efficiencies across the value chain, thus bringing down energy and material costs.
We maintained our track record of no major safety incident and exceeded the target on safety-related lead indicator Progressive Safety Index (PSI). We also delivered a robust environmental performance by exceeding reduction targets of specific CO2 emission, energy consumption and freshwater consumption.
Meeting farmer needs safely and sustainably
Rallis India Limited, subsidiary of the Company, is uniquely positioned in the Indian and global agrochemicals space. Having a wide range of quality products, R&D capabilities and ability to provide agronomy advice, Rallis continues to play an important role in India’s agriculture landscape for enabling farmers and farm productivity. Its products are also finding increasing acceptance globally. Rallis is tapping opportunities in contract manufacturing.
Rallis is amongst leading players in domestic crop protection formulations market and manufactures key active ingredient for ownand third-party sales. It has extensive manufacturing capacity across four locations and innovation capabilities supported by the Rallis Innovation & Chemistry Hub (RICH). Its products are sold pan-India and across multiple global markets. Rallis is trusted by millions of farmers, channel partners and leading MNCs for its capabilities in manufacturing and product development.
Crop Protection: Fungicides, Insecticides, Herbicides
Crop Nutrition: Organic / bio / water soluble fertilisers, Biostimulants, Nutrients
Seeds: Hy Rice, Hy Coarse Grain, Bt Cotton, Vegetables
Active ingredients and formulations (Insecticides,
Herbicides, Fungicides and Specialty Chemicals)
Global agrochemical companies
Organic and inorganic chemicals including derivatives of petrochemicals, Seeds, Organic compost
Formulation and process chemistry and others
Insecticides, Fungicides, Herbicides, Plant Growth Nutrients, Seeds, Soil Conditioners
10 gms to 625 kgs
50 ml to 200 ltrs
Sea, Rail, Road
In FY 2021-22, the global crop protection market was buoyant. Though domestic market was impacted by logistical challenges, cost pressures and unavailability of inputs which intensified as environmental policy measures in China hit their production and thus global supplies. Further, weather-related issues led to missed spraying of crop protection inputs and shifts in high-input crops, denting sales which impacted domestic agrochemicals business.
Rallis overcame the challenge through sustained initiatives in terms of sourcing strategy, frequent pricing decisions and agile coordination with logistics partners. Strong focus on optimising operational expenses and maintaining cash position to some extent helped mitigate the high input prices.
Rallis ensured zero lost time and recorded injuries led by its commitment to systems, processes, continued learning and rigorous risk assessment at every stage of its operations. This helped ensure sustained production to meet global commitments.
Considering the regulatory timeline for registering pipeline products in key geographies, Rallis is actively pursuing enhancing exports of highly demanded active ingredients to drive its growth. While it already has a reasonable global share in these, most of the plants are running at capacity. Rallis thus undertook strategic capacity enhancement projects which positions it strongly to capture market share.
Expansion in capacity of key herbicides Pendimethalin and Metribuzin, representing over 25% of global active requirements of these herbicides.
Expansion in capacity of in Hexaconazole, a leading fungicide for rice crop. Running at full capacity, the expanded capacity represents a major share of its global requirement.
of liquid formulation and
of solid formulation capacity added at the new state-of-the-art greenfield formulation plant at Dahej.
Setting up a new state-of-the-art multipurpose active ingredient manufacturing plant at Dahej for its strong pipeline and tapping into contract manufacturing opportunities.