INDUSTRY INSIGHTS

Comprehensive participation key for SABICs growth in India:

Janardhanan Ramanujalu
Saudi Basic Industries Corporation (SABIC) ranks as the worlds second largest diversified chemical company.
SABIC has been active in India for more than 20 years. With a manufacturing facility, a Research Centre, 11
offices in major cities like New Delhi, Gurgaon, Mumbai, Bengaluru, Chennai and Pune and over 550 employees
across India, SABIC seems to be set to participate in the multitude of possibilities presented by the renewed
economic vigor of one of the worlds fastest growing economies.
In an elaborate discussion with Lekhraj Ghai of POLYMERUPDATE, Janardhanan Ramanujalu - Vice President,
SABIC South Asia & Australia - speaks on topics such as:

SABICs ties with India

Business strategies
Manufacturing activities
Sustainability measures
Innovation and transformation in the
plastics processing industry

Make in India initiative

Skill development
Polymer market scenario in India
Sales and marketing within India
Experience at Plastindia 2015

Standing left: Mr. Janardhanan Ramanujalu; Right: Lekhraj Ghai

In the backdrop: SABIC-made components for OEM Mahindra Automotive
Interview of Janardhanan Ramanujalu (JR) with Lekhraj Ghai (LG):
LG: Could you tell us more about SABICs business strategies, especially SABIC 2025?
JR: Our current strategy SABIC 2025 aims at transforming ourselves into a more integrated, more differentiated
and customer-centric organization. SABIC 2025 is a global vision and it is a comprehensive strategy for SABIC to
grow in people, assets and business in new areas with valuable growth at its core.
Asia plays a very important role as it is a major market for five business units of SABIC, namely, Chemicals,
Polymers, Fertilizers, Performance Chemicals and Innovative Plastics and with over 3,000 employees. Within
Asia, China and India hold critical significance for SABICs growth. The Indian polymers market is growing at very

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attractive rates; much higher than the GDP growth rate of the country. SABICs growth strategy in India is
aligned with Indias growth strategy and we have an all-round participation in the Indian market.

LG: Where does SABIC have a manufacturing facility in India?

JR: We have a manufacturing plant based in Vadodara, Gujarat. In 2007, SABIC acquired GE Plastics globally. The
Vadodara plant is a part of that acquisition and we have been active in manufacturing in India for more than 20
years. The plant caters to the most advanced engineering plastics applications in the country. For instance,
almost all automotive brands have a presence in India and they have very specific and complex requirements,
which we have been able to successfully cater to, such as the electronic, electrical and interior applications in
the automotive industry. We have also been able to develop new applications like railway seats for the Mumbai
suburban rail system, and its new trains will be equipped with seats made of SABICs Lexan polycarbonate
material.
Another innovative example of locally developed application is the plastic structural housing for inverters.
Inverters are unique to developing countries like India where there are power consistency issues. Having a
manufacturing plant close to the customer helps us adapt to the local needs.
LG: How can ties between SABIC and India be further developed?
JR: SABICs strength lies in being a competitive producer and the close proximity between Saudi Arabia and
India. Further, there are applications and customers within India that need to be catered to with local presence
and local development and that is what we do with our Innovative Plastics business.
SABIC has been engaged in India for over 20 years and we participate comprehensively. For example, apart from
our products being imported into India, we have an Engineering Plastics Manufacturing plant in Vadodara to
cater to the needs of advanced manufacturing industries such as Automotive, Electronics, Electricals and
appliances. In addition, we have one of our largest Technology Centers with over 300 scientists in Bengaluru,
which caters to the research requirements of SABIC and SABICs customers globally. We act responsibly as a
good Corporate Citizen with many of our Corporate Social Responsibility (CSR) programs and skill development
programs to benefit the communities around our operations.
LG: Are there plans of SABIC to start full-fledged manufacturing in India?
JR: We already have a compounding plant in India. The Vadodara plant is one of the largest engineering plastics
compounding units in the country and has a capacity of approximately 30,000 MT. At the same time, it is
necessary to meet the demand for polymer products in India, which is still growing at a double-digit rate. Being
one of the largest petrochemical companies in the world, we focus on complementing local production with our
imports. India is a core market for SABIC and we are eager to participate in all ways; namely, imports, local
manufacturing as well as exports.
LG: How does SABIC intend to capitalize on the Make in India ideology advocated by Prime Minister
Narendra Modi?
JR: Make in India is an exemplary campaign by the government of India. Indias manufacturing sector has a
significantly low share of the countrys GDP as well as its growth. Considering that manufacturing creates urban
and semi-urban jobs it is essential that there is growth in the manufacturing sector to provide opportunities for
the nations youth. In terms of jobs creation, the plastics industry is already a big employer. In fact, the
projected polymers consumption in India of 20 million MT by 2020 could be reached a few years earlier thanks

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to the Make in India campaign. At that point, companies like us who have already invested in India will be
happy to expand as per the market demand.
LG: What are SABICs views on sustainability? How does SABIC contribute towards sustainable development?
JR: Sustainability is core to Chemical industries existence. We at SABIC are deeply committed to sustainable
growth. For us sustainability comprises three overlapping components; namely, social, economic and
environmental. Social sustainability is what we do as a corporate citizen. Economic sustainability is the benefit
we need to provide to our stakeholders, customers and employees. Environmental sustainability is a broad term
and involves various aspects such as carbon footprint, energy use, water use, material efficiency and safety in
manufacturing and in the use of our products. Our sustainability strategies and targets are reported in our
Sustainability Annual Report. In addition, as a part of our CSR program we also do community work at places
where we have a presence in India. Key projects undertaken include the Hosahalli Lake restoration project,
reconstruction of Hosahalli Government School, a Community Resource Center in Hosahalli Village and bus
shelters around the vicinity of our technology center in Bengaluru. Similarly in the vicinity of our Vadodara plant,
we have helped upgrade three government schools and conducted a large-scale comprehensive eye-care
program for over 20,000 less privileged school children covering screening, vision correction, treatment and
surgical support, for government and government-aided schools in National Capital Region (NCR), India.
LG: What are your thoughts on innovation in the plastics conversion industry?
JR: Plastics applications such as food packaging or household products can be catered directly by the plastics
conversion industry by using its own know-how. The other type of applications are those that are driven by the
customer industry. For instance, the requirements of the automotive industry decide the technology the plastics
conversion industry has to implement. Gradually, the plastics conversion industry is transforming and is
becoming increasingly customer-driven. To be able to supply to the automotive industry it is not enough to be
just a plastics converter; you also need to be able to bring in other non-plastic components and assemble the
final unit. Thus, value addition in the plastics converting industry can be achieved by the integration of plastics
processing with advanced component manufacturing for the end-user.
LG: What are SABICs contributions to the plastics
processing industry of India? How does SABIC spread
its technical know-how among small and medium
enterprises?
JR: At our Technology Centre in Bengaluru, we focus
on comprehensive application development starting
from design, performance simulation and analysis,
making the prototype and testing the product
extensively. There are times when neither the plastics
processor nor an automotive original equipment
manufacturer (OEM) has the expertise and material
knowledge to assemble a particular component. That is
where we step in. For example, we worked together
with Integral Coach Factory (ICF) to design a seating
system using injection-molded polycarbonate for the
Mumbai Rail Vikas Corporation (MRVC), which is
responsible for executing projects for the Mumbai

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The seating system for Mumbai Rail

Sitting Left: Janardhanan Ramanujalu; Right: Lekhraj Ghai

Photo: Manish Chaudhari

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INDUSTRY INSIGHTS
Urban Transport Project under the sanction of the Indian Rail Ministry.
As one of the largest polymer producers in the world, we focus on developing business for our materials and we
are happy to help in the integration of the material using sophisticated technology. We work collaboratively with
many small, medium and large enterprises and provide them with total solutions and support.
In addition, SABIC is also involved in promoting skill development in the plastics industry of India. In association
with Central Institute of Plastics Engineering & Technology (CIPET), SABIC is piloting a six-month fully-residential
skill-development program for 50 unemployed youth from less-privileged backgrounds selected through a
screening process undertaken independently by CIPET. SABIC will be providing full sponsorship to the
participating students, covering their course fee and boarding and lodging costs. On successful completion of the
course, the students will be provided with qualifications certified by CIPET and SABIC, thereby becoming
vocationally-trained frontline workers for the plastics manufacturing industry in India.
LG: What are your thoughts on India as an export market, particularly for polymer products from the Middle
East?
JR: India is a large market with demand driven by population size and the demographics. Cost competitive and
better performance products are constantly needed due to changing technologies. India is a just 45 days
shipping time from the resource-rich Middle East, which has always filled the gaps in supply both in volume as
well as quality to meet Indias growth ambitions.
LG: A few domestic petrochemical producers are soon coming up with new capacities? What is your take on
the increased competition in the Indian market?
JR: Petrochemical projects take a long time to be built and involve long-term growth plans. Eventually, all
ongoing projects will come online with the new capacities. This new supply can even spur growth in the industry.
Today, the countrys plastics consumption stands at 1011 million MT and India is still a net importer. With the
plastics consumption in the country projected to reach 20 million MT by 2020, India offers long-term growth
opportunities. Every plant that has thus far been built in India has been fully absorbed and this will continue.
Moreover, with government initiatives like the Make in India campaign the countrys appetite for plastics
could grow at even faster rates. So it can be imagined that the new polymer capacities will not be enough for
this country.
LG: The import duty for certain polymers in India has been an issue with some GCC producers operating in the
Indian market. Is the import duty a problem for SABIC too?
JR: Inter-country trade is not just governed by duties alone. Other factors such as demand-supply gap and free
trade agreements (FTAs) also come into play. Today, polymers come with 07.5 percent duty range also owing
to FTAs. As far as SABIC is concerned, we have a strong presence in the Indian market and we are growing at a
good rate. As long as we are able to deliver the right product at the right time to our customers offering superior
performance, we will continue to share Indias growth story.
LG: How are SABIC products marketed in India?
JR: Each Business Unit has its own marketing division. Polymers and chemicals are our main global products for
which we have individual marketing divisions. For fertilizers like urea, we also participate through tenders.
Engineering plastics need close association, development, understanding and consistent supply and we work
mostly OEMs and vendors to the OEMs. So there is a separate marketing team for each line of business.

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LG: To what sector does SABIC primarily supply?
JR: SABIC is perhaps the only petrochemical company that has everything from commodity plastics to highesttemperature engineering plastics in its product portfolio. In most polymers, SABIC is among the top three
globally. Then there are specific new applications like medical plastics applications.
In engineering plastics some of our major products are polycarbonates, high-temperature polycarbonates,
acrylonitrile butadiene styrene (ABS) alloys, polyether ether ketone (PEEK) and polyaryletherketone (PAEK). Our
customer industries include automotive, mass transportation, consumer electronics and lighting. We have
innovations everywhere, from household switches to railway train seats.
LG: How has the fall in global crude oil prices impacted the polymers business?
JR: Lifestyle changes and peoples purchasing power drive plastics demand more than crude oil prices. The
demand in turn drives the production of polymers. Megatrends such as global economic growth, growth rates in
developing countries like India, growth of the middle class, the demographic dividend and stable and
encouraging government are all positive drivers for plastics demand. Of course, the drop in crude oil process will
cause the prices to accordingly change. However, despite the fall in prices, the demand for polymers all over the
world is still healthy.
LG: How was your experience at the Plastindia 2015 exhibition?
JR: Plastindia is an international event having a strong presence not just in India but also across South Asia. It is
the major event for participants from neighboring countries like Bangladesh, Pakistan, Bhutan, Sri Lanka and
Nepal. As such, we would have participated in Plastindia irrespective of where it was being held. The move from
New Delhi to Gandhinagar is perhaps not such a bad thing as it lies in the heart of the plastics hub of the
country. Holding the event at such short notice and at such high standards is already a big achievement and it
highlights the countrys capability of delivering such exhibition centers and convention centers in a limited time.
The brand new facility has come up very well, the quality of stalls that have been put up is excellent and the
reception is very good. This years event will hopefully spur the industry to the next level of growth.
Janardhanan Ramanujalu (JR) is Vice President for SABIC South Asia & Australia.
In this role, JR is responsible for the growth of SABICs market leadership through
partnerships and collaboration with industry and government stakeholders
across Australia, India, Indonesia, Malaysia, Philippines, Singapore, Thailand and
Vietnam. He is based in New Delhi, India.
JR is a veteran in the petrochemical industry with more than 25 years of
experience from polyolefin to styrene & engineering plastics and chemicals. Prior
to joining SABIC, JR was the Head of Global Textile Chemicals for BASF. He also
held other regional and global roles with BASF in his more than two decades of
service with the company, including marketing, product management, sales & technical service, industry
management & market development for engineering plastics.
JR holds a Mechanical Engineering Degree from University of Mysore, India, and MBA from University of Madras,
India.
END
For further information, commentary and interviews, please contact Lekhraj Ghai at POLYMERUPDATE on
+91 9967828215 or e-mail lekhraj@polymerupdate.com

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ABOUT SABIC
Saudi Basic Industries Corporation (SABIC) ranks as the worlds second largest
diversified chemical company. The company is among the worlds market
leaders in the production of polyethylene, polypropylene and other advanced
thermoplastics, glycols, methanol and fertilizers.
SABIC recorded a net profit of SR 23.3 billion (US$ 6.2 billion) in 2014. Sales
revenues for 2014 totaled SR 188.1 billion (US$ 50.2 billion). Total assets stood
at SR 340 billion (US$ 90.7 billion) at the end of 2014.
SABICs businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and
Innovative Plastics. SABIC has significant research resources with 19 dedicated Technology & Innovation facilities
in Saudi Arabia, the USA, the Netherlands, Spain, Japan, India, China and South Korea. The company operates in
more than 45 countries across the world with around 40,000 employees worldwide.
SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the
hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals,
polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30
percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
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March 17, 2015

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