Mumbai-based VHCL Industries, primarily involved in the polymer business — plastic recycling — claims to be the single largest polymer recycling firm in the country. Promoted by the H. C. Valia group, VHCL was in news last year when it received exports order worth Rs 32.5 crore from a large trading house to supply 4,300 million tonnes of compounded recycled plastic granules.
VHCL, a pioneer in the plastics, polymers, petrochemicals, ferrous and non-ferrous metals businesses in the domestic market, is now focusing on exports in a bid to enhance its business performance. It is contemplating joint ventures and scouting for acquisitions in the global market to expand its footprint.
Back home, the company is already among the largest producers of recycled plastic granules. It is also engaged in wind-mill power generation; it has taken its first step by investing in a 2.1 mega watt windmill in Rajasthan. VHCL also has a metal division, which as per its annual report, the company is currently looking to de-merge. It plans to hive off the division into a separate entity and invite industry specific investments to unlock shareholder value.
In FY2013-14, sales of granules contributed 99.74 per cent to company’s total sales. The plastics industry in India has undergone a huge makeover in the last few years throwing up significant opportunities for budding entrepreneurs. An enormous demand in rural areas remains untapped. The overall industry is fragmented and comprises large numbers of small units scattered across the country. The potential to grow in this sector typically depends on a company’s ability to procure plastic wastes and produce recycled products as per market demand.
The VisionRecycling provides opportunities to reduce oil usage, carbon dioxide emissions as well as the heaps of waste requiring disposal. Plastic bags can be recycled into dozens of useful products such as sheetings, garbage bags, liners, industrial packing, shoe soles building and construction products, low-maintenance fencing and decking.
VHCL’s basic focus so far has been on sourcing raw materials, processing them and selling to customers. The group now imports and procures locally, trades locally and internationally, recycles and reprocesses all types of scrap, manufactures finished products and also exports. From being a trading house, it has tuned into a manufacturer of end-use products and an export house. In 2014-15, the company recorded a 77.8 per cent growth in net sales, while in 2013-14 and 2012-13, it recorded growth of 3.8 per cent and 110.4 per cent.
paramita@businessworld.in; @paramitachat
BW Reporters
Over 14 years in journalism, I cover corporate sectors and write on M&A, private equity, venture capital and healthcare. I also play the role of an editorial lead for proprietary events like BW Healthcare Awards and BW Young Entrepreneur Awards. I am also a guest faculty at The Indian Institute of Mass Communication (Dhenkenal). Prior to BW Businessworld, I have had stints with Forbes India, The Economic Times, India Today and The Indian Express. When not working, I love travelling and discovering new places - soaking in new culture, food and people. I also like to spend time with my fawn Labrador.
