Chakradhar chemicals

NEW DELHI: Chakradhar Chemicals is an example of a company that has braved all odds and emerged stronger. The company has been manufacturing zinc sulphate since 1990 and its sales have been growing at 75-80%. With the demand growing, the company is planning to enhance production capacities to meet future needs.

However, it wasn’t an easy ride for Chakradhar Chemicals, especially in the initial years of its existence. When the company was in its infancy, it undertook a large order; and it ended up as a bad debt. It took a number of years for the company to recover and write off the losses. But even losing a decade in writing off the debt and restarting the business on a clean slate did not disillusion the management.

One of the main drivers of success for Chakradhar has been its focus on providing good quality products that match international standards and innovative and out-of-the-box thinking. Chakradhar was a pioneer in using spray-drying technology to manufacture zinc sulphate monohydrate in India; and it is still the only company using this technology.

The company has also done all the groundwork for its accreditation to qualify for ISO 9001, ISO 14001 and OHSAS 18000. “It is important to maintain good and ethical relations with the marketers and consumers in this industry. Moreover, improvement in workplace environment, along with greater usage of ICT, has helped us get an edge,” says Neeraj Kedia, managing director, Chakradhar Chemicals.

The company now caters to the country’s agri-markets. It supplies its produce through co-marketing arrangements with large fertiliser companies. It is looking to expand into the international markets as well. Chakradhar Chemicals is in the process of expanding manufacturing capacity of zinc sulphate monohydrate to 8,000 tpa, the second largest in Asia.

According to the management, things may have changed for the better. However, new problems have emerged. “Human resources and good management systems are the biggest challenge. Broadly, we need regulatory reforms, along with good governance, for a more level playing field for SMEs,” says Mr Kedia. According to him, the role of banks and financial institutions is also very important in promoting SMEs.

In FY06, the company’s sales were Rs 8.4 crore and by October this year, sales have touched Rs 11.5 crore. In an industry driven by capacities, the company’s fixed assets have grown remarkably well in the recent past. It is projected to be worth Rs 4.6 crore by the end of 2007.