Pulkit Goenka, Managing Director of Advance Petrochemicals, shared how the company has evolved from a textile-focused chemical business into a growing specialty chemicals player, driven by capacity expansion and diversification into ethoxylation and distillation. He also highlighted the role of calculated risk-taking, legacy-driven trust, and India’s growing manufacturing strength in shaping the company’s growth journey.
Anjali Palod: Hello and welcome, you’re watching SmallCap Spotlight. This is Anjali Palod and joining us today on the show is Pulkit Goenka, the Managing Director of Advance Petrochemicals. Now, the company is decades old and he’s the third generation of the family stepping into it. So, we’re excited to learn all about the new things that you’ve brought in. But to start with, give us a brief overview of the company and how it has evolved over the years.
Pulkit Goenka: So, in 1985, my grandfather started this business. So, we started with the, you know, starting with the manufacturing of binders and all. So, my grandfather was basically from the textile industry. So, from textile, he came up to the backward.
So, I’d rather make a textile fabric or make a chemical for the textile units. So, we came into chemical. So, after that, we kept on expanding and in 1985 only we got it public.
And I being the third generation handling this business and we have been like huge, become huge after coming in the ethyl oxide derivatives, which is like in last, after COVID, I would say, we have expanded in production or in if I say we have already gone 3X already. So, we are hoping to expand more further with the production and quality. So, being the third generation handling it with the legacy of my grandfathers as we are going down and we believe in quality products and production.
So, that is, that is a basic theory of the company.
Anjali Palod: Right. So, take us through what are the segments that you are in right now? What are the biggest contributors to your group? So, we are into basically glycol ethos and amines products.
Pulkit Goenka: So, we cater to pharma pain, refineries. We even right now, you see there is a war situation already going on. So, we manufacture anti-icing which is used in a jet fuel.
So, it is rightly highly in demand product because you know the war situation is very high. So, that is there and agro-chemicals are there. We are already catering to lubricant like manufacturing vehicles for companies like Tata Motors, GPCLs and all because they don’t manufacture, they buy from us and they sell it in their own name.
So, our market has been expanding day by day and just because of some special chemical, we have a good capital in the market. Right. You said that you transitioned into these specialist chemicals somewhere along the way.
Anjali Palod: So, could you take us through a few big milestones or a few big key decisions that were taken for the company that has bought it to the state that it is today?
Pulkit Goenka: See, in 2019, my father passed away. So, we came up with, I came up with some solution that we were stuck with some production. We were stuck with some limited product supply only.
So, after he passed away, I took some risk. I took some calculated risk, I would say. We expanded to our old thing ethoxylation which we used to do and we started specialising in that.
In 2019 till 2021-22, we expanded in ethoxylation and all. After that, that was my one department. Then, I was stuck with that.
None of that was done. Okay, it’s done. What is next? So, then we came up with the expansion in the distillation range.
So, we used to have a distillation capacity of 50 to 100 tonnes. Now, we have a capacity of 500 tonnes of distillation. So, now we have new products what we have done and products which we have passed, we have started again.
So, now the product market is bigger than what my father has left.
Anjali Palod: And I’m sure that also expands the kind of demand that you see from different industries also. So, in the past 3-4 years or so, what do you think have been the key drivers of demand for the industry overall but also for the company?
Pulkit Goenka: I would give credit to Mr. Narendra Modi on this. To be very frankly, I’ve been travelling to so many countries. What India is levelling up is more than anyone would expect. If you compare with Europe, you compare US, UK is totally gone right now.
What India is doing, what expansion we have been given, what facilities we have been given, it’s just because of Modi government. So, the market what we are capturing and why our exports are going good, why market captures are going good because just everyone in the world has started seeing India as a manufacturing country. So, other than China, India is a big quality conscious country which we want to see.
Anjali Palod: So, have you also been exporting more lately?
Pulkit Goenka: Yes, we are doing very good. But I always believe first serve our own country. So, my priority is always first-first country and then we always do our export right now.
As you say, war is there. I’m exporting very nicely because it’s a good time, good opportunity for us to earn.
Anjali Palod: Right and also take me through what the competitive advantage for a company like yours is. There’s obviously the legacy but is there anything new that has now come into the picture that is giving you a competitive advantage over the rest in the industry?
Pulkit Goenka: We being an oldest, our own technology, our own experience is being a big advantage right now I would say. What my father gave me, what my grandfather gave me is something what I have and that is only taking it out because many new companies come up but today we being a 40 years old company, that is something meant to be and you know what at the end goodwill matters. So, as I’m already in an exhibition, 25 years old customer come to me and meet me and ask me that how are you and I did business with your grandfather, I did business with your father.
So, that is a trust what makes me different from the other.
Anjali Palod: The trust that has been built over generations for your company but also looking ahead are there any big expansions that you plan for new segments that you want to get into?
Pulkit Goenka: We might be expanding in the new area, it is still under on the paper yet but in near future we might be thinking to expand our new plant in Gahej. Reason is being we have to as our main source of raw material is reliance.
So, we need to be near to them for the more cost saving and all. So, that’s still on paper not yet to be decided but yeah an expansion is the only growth you need. You cannot be stable, my grandfather always say you cannot be stable with your turnover or capacity, you need to expand.
Anjali Palod: So, can you give us a little bit of history on this expansion, capacity expansion that has happened? Where are you right now? So, I will not go very behind but if I compare from 2016 to 2026, 10 years back.
Pulkit Goenka: So, that time our ethoxylation capacity was not 10 to 15 tonnes that was enough and distillation was 40-50 tonnes. So, in 2020 pre-covid I would say distillation was 100 tonnes, ethoxylation was 40-50 tonnes.
Now when we are sitting into 2026 ethoxylation has already reached 300-400 tonnes and distillation has started like we have a capacity of 500 tonnes but we have reached 200 tonnes at all.
Anjali Palod: Okay, so that’s a good three or four times sort of a growth that you’ve already done. What do you think was the major contribution? Have you become more confident of the future of the industry or is it the new segment that has led to this?
Pulkit Goenka: No, I would say I just started taking risk more and I have failed many times.
I will not say that I didn’t fail. I took wrong decisions also but wrong decisions only always help you to take the right decision.
Anjali Palod: And how is this capacity utilised right now?
Pulkit Goenka: Distillation is still a little low because we just started the distillation plant in post Diwali.
So, post Diwali is what we say. So, R&D is still going on because it’s not like a new car you start and you start running. So, we keep on developing here and there.
So, capacity is increasing. We are just doing some little R&D.
Anjali Palod: Okay, and if I ask you to look ahead five years from now, what do you think advanced petrochemicals is going to look like? What are you envisioning for the company?
Pulkit Goenka: See, I’m sure we’ll be more by 3-4x and we might come up with new fundraising also. So, this is some plan. My future plan is that we need to get some fundraising again because what we raised was in 1985. So, that doesn’t have any value further but I feel like we have to go for that.
Anjali Palod: All right. Thank you so much Mr. Goenka for joining us here on SmallCap Spotlight. It was lovely having this conversation with you and learning not just from you but also from your father and grandfather, the little anecdotes that you share.
With that, we’ve come to the end of another episode of SmallCap Spotlight. Thank you so much for watching. Please like, share and subscribe.