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INTERVIEW

Calvatis-Chembond JV to start with food and beverages in first phase
Monday, 08 May, 2017, 08 : 00 AM [IST]
In the wake of the growing potential of food processing industries, the ministry of food processing industries (MoFPI) has developed an environment conducive to development in India. The need to maintain hygiene and germ-free solutions is the need of the hour today. With strong food safety norms, the government strives to provide safe food for all.

Besides all these developments, Calvatis GmbH, with its internationally well-known brand Calgonit, provides disinfection solutions and Chembond Chemicals Ltd has rightly picked up the nerve of the time.

Today, factories and manufacturing environments have to be kept clean to maintain quality standards. In this favourable environment, Calvatis GmbH, suppliers for comprehensive hygiene management systems, and Chembond Chemicals Ltd, a leading manufacturer and supplier of specialty chemicals, are coming up with its cleaning and disinfecting technological solutions under the name Chembond Calvatis Industrial Hygiene Systems Ltd.(CCIHS).

In a telecon with Pushkar Oak, Thomas Mohr, managing partner, Calvatis GmbH, mentioned how the joint venture (JV) will be beneficial to the Indian market, the company’s expansion plans, etc. Excerpts:

How will this joint venture benefit the Indian market?
The know-how transfer from Calvatis GmbH will allow Chembond-Calvatis to provide the Indian market with the latest state-of-the-art cleaning and disinfection technology. Due to the JV and it's countrywide distribution network, the Calvatis Group can become a reasonable market actor on the Indian subcontinent at a relatively short notice. Therefore the JV, which will be based in Mahape, Navi Mumbai, can be considered a classical win-win situation for both parties and will operate under the new name, Chembond Calvatis Industrial Hygiene Systems Ltd (CCIHS).

Will this JV be focused only in India?
The JV is for the South Asian Association for Regional Cooperation (SAARC) region. To start with, it will focus on the Indian market. And in the mid-term, expansion of the business to neighbouring countries, like Sri Lanka, Bangladesh, etc. may be on our agenda.

In what product ranges will this JV be operational?
In the first stage, the joint venture will start with food and beverage business, but step by step, Chembond-Calvatis will cover all major branches, as there are beverage, food, farm as well as institutional. As a leading provider of not just cleaning and disinfecting products, but also a one-stop purification technology provider, a comprehensive assortment of application equipment will also be available. Moreover, our clients can revert to the expertise of our skilled field staff, which guarantees an optimal trouble-shooting on-site.

Do you plan to set up any new manufacturing facility after this?
The initial focus of our JV will be to absorb the technology and build on gaining sales and market share. The manufacturing will be done at Chembond’s plant near Vadodara, and at an appropriate stage in the future, we would consider setting up the JV’s own manufacturing plant.

What are your expectations in terms of the business that will be generated?
No fixed indices have been decided yet. We will stay modest, but expect a steady growth year-on-year, sustainable in any respect.

What were Calvatis GmbH’s and Chembond Chemicals Ltd’s separate turnovers last year?  
Calvatis had a turnover of over 60 million Euros last year, while Chembond had a consolidated turnover of approximately Rs 200 crore.

How much is this JV expected to trigger business in India?
Generally explaining, Chembond-Calvatis intends to establish itself as a serious competitor of other market actors with consistently rising market shares. We are optimistic to achieve our targets due to advanced, environment-friendly and resources-saving technologies as well as a future- and customer-oriented attitude.

Which all regions and sectors will be tapped?
Presence throughout India is scheduled step by step. During the start-up phase, we'll focus on certain core segments of the industry, and will grow thereafter by adding more segments as well as regions. Initially we will tap the food and beverage manufacturing industries, and later, we will fetch business in other industries like poultry and animal husbandry. Cattle farms are also our target.

What are further plans?
To meet all the requirements of our customers and to make Calgonit the best-known brand on the Indian market. We also have a reserve land of 20 acres, which is a separate facility and will be utilised for manufacturing.
 
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