We Will Be Offering EPC Services Built On In-House Expertise: Galaxy Surfactants | CNBC TV18

Summary

Galaxy Surfactants has entered a strategic collaboration with a global client to provide full EPC (Engineering, Procurement, and Construction) services for the commissioning of surfactant and specialty ingredient plants. This partnership includes technology know-how, plant setup, and operations. While specific revenue details are not disclosed, the project is seen as a strategic step to expand Galaxy’s presence in new markets. Challenges in the fatty alcohol market have led to a reduced growth forecast, but international growth prospects remain positive. The EPC business aligns with Galaxy’s long-term goals of leveraging core competencies and expanding globally.

Takeaways

• 😀 Galaxy Surfactants has entered into a strategic collaboration with a global client to provide full EPC services, including technology, plant setup, commissioning, and operations.
• 😀 The collaboration is focused on performance surfactant and specialty ingredient plants overseas, offering an integrated solution rather than just raw material supplies.
• 😀 The revenue impact of the project has not been disclosed, but the collaboration is aligned with Galaxy Surfactants' long-term growth strategy.
• 😀 The company’s core competencies in surfactants and specialty chemicals will play a key role in the execution of the project.
• 😀 The specific geography for the project remains confidential, but it involves a region where Galaxy Surfactants currently has no footprint.
• 😀 This project marks a significant first step toward expanding the company's presence in new, strategically important markets.
• 😀 The potential for EPC to become a separate business vertical is under discussion, but it's currently part of the strategic alignment with the global client.
• 😀 Fatty alcohol prices are still high, and the company is monitoring how the market responds, particularly after the Palm Oil conference.
• 😀 Galaxy Surfactants has moderated its full-year volume growth forecast to 4% from the original 6-8% due to challenges in the Indian market.
• 😀 While the international market remains positive, the company expects a potential uplift in the Indian market in the coming quarter due to government investments and infrastructure developments.
• 😀 For the fourth quarter, Galaxy Surfactants is cautious, observing market conditions before making firm conclusions about the impact on growth.

Q & A

What is the focus of Galaxy Surfactants' strategic collaboration with their global client?

The focus of the collaboration is to provide full EPC (Engineering, Procurement, and Construction) services, which includes technology, plant setup, commissioning, and operational support for performance surfactant and specialty ingredient plants overseas.

Is Galaxy Surfactants venturing into the EPC business as a separate vertical?

As of now, Galaxy Surfactants is not establishing the EPC business as a separate vertical. The EPC service is part of their strategic alignment with the global client, and they are integrating it into their core business.

How does this collaboration affect Galaxy Surfactants' revenue?

While the specific revenue details are confidential, the collaboration is expected to have a significant impact on the company’s revenue, especially with the resources and expertise it will bring to new markets.

What makes this EPC partnership different from just supplying materials?

This partnership involves a fully integrated solution, including technology, know-how, plant setup, and commissioning. It's not just a material supply arrangement but a comprehensive package that covers the entire process of plant establishment and operation.

What is the geographical focus of this collaboration?

The exact geography is not disclosed due to confidentiality, but it is clear that Galaxy Surfactants is targeting regions where they currently do not have a footprint, with a focus on markets of strategic importance.

How is the EPC collaboration aligned with Galaxy Surfactants' long-term strategy?

The EPC collaboration is seen as a key part of Galaxy Surfactants' long-term growth strategy. It helps the company establish a presence in new markets, strengthening its competitive position in the surfactant and specialty chemicals industry.

How does Galaxy Surfactants plan to expand its reach with this collaboration?

The collaboration serves as a strategic entry into new markets. By leveraging this partnership, Galaxy Surfactants aims to establish itself in regions where it has no current presence, creating opportunities for future business expansion.

Has the company disclosed any financial figures regarding the collaboration?

No, Galaxy Surfactants has not disclosed specific financial details related to the EPC collaboration due to confidentiality agreements with the client.

What impact has the Indian market had on Galaxy Surfactants' volume growth projections?

Due to uncertainties in the Indian market, Galaxy Surfactants has moderated its volume growth guidance for the full year to 4%, down from the initial estimate of 6-8%. The company is awaiting further developments in the market before adjusting its projections.

What is Galaxy Surfactants' outlook for the international market?

The international market is showing positive signs, and the company remains optimistic about growth in these regions. However, the outlook for the Indian market remains cautious, with a need to observe the effects of infrastructure investments and government initiatives over the next quarter.