In this exclusive conversation, Mr. MK Gupta, Managing Director of Envirotech Systems Limited, outlines the company’s journey, the significance of acoustics in modern engineering, and its commitment to developing sustainable and high-performance noise control solutions.
Mubina Kapasi: Hello and welcome to Small Cap Spotlight. Today the company that we are going to be talking to is in a very different industry, the acoustics industry. There are very few listed players in this space.
So let’s get chatting with the management of Envirotech Systems Limited. We have with us Mr. MK Gupta, the managing director. Hello Mr. Gupta, thank you so much for joining us. Please introduce Envirotech to our viewers, what does Envirotech exactly do and what kind of product it supplies?
MK Gupta: Thank you Mubina for allowing me to speak over my vertical. So we at Envirotech Systems Limited are manufacturer for acoustics and noise control products. This is a very unique field and new field of engineering I can say because of with the you know continuous development and the growth. This noise and acoustic is nowadays playing a major role. Noise pollution is the side effect of urban development. There are lot of mental and physical problem due to which we need acoustics. For example, if you live in high noise area, blood pressure, headache, stress and anxiety increase. Due to which, acoustics in an interesting field and in a way we are early entrants in this field.
So we are a publicly listed company in NSE and we are providing customized solutions for the noise related issues.
Mubina Kapasi: As I said, this industry is very different, so tell us over the course of your career and your you know journey, how did you form EnviroTech Systems? How did you enter this industry?
MK Gupta: Mubina ji, it is like this. I started in 2007. It is a first generation business. So we started from the point of view of business, I am telling you honestly. And we started making genset acoustic enclosure.
At that time that was in huge demand. But as our way of working is a bit innovative and we have a passion for experimentation while we work out in making the noisy machine soundproof, then we found that there is a lot of scope because not only the generator but there are several equipments and machineries which are making huge noise and creating disturbance to the human being. So after that as we studied more about it, we found a lot of opportunity.
And we did a good amount of know-how, we did a lot of experiment, we did a lot of R&D. Then we came to you know in position that we can provide the solution for the several noisy environment and you know acoustical properties. So yes, we started with business, today we are providing almost all kinds of acoustics and noise control related services.
Mubina Kapasi: Who would you consider as your competitors, even if they are in the unlisted space?
MK Gupta: As you well said, in this field we are the first listed company because of understanding the market demand and future prospects. We are the first listed company. If you are asking me about competition, in this field we are catering to the invisible energy which is not visible.
But our convenience, our comfort is being distracted or disturbed. So if we talk about competitors, there is nothing like that. So there can be some local competitors in the name of competition, but they are making a general type of acoustic enclosure like generator or such type of that.
But the field which we have adopted and the experience we are having is quite large. Another USP is that our products are well tested from the government laboratory. We introduce the product, but first we get it tested from the laboratory, evaluate its performance, its noise reduction performance, how much noise absorption performance it has. Then after that, its appropriate uses in the different type of equipment, different type of application plays a major role. So this makes us unique. Our technical team also has high level professionals, who are well qualified in the field of acoustics and vibrations.
So yes, that makes us unique. So it’s not like I cannot say any competitor. It’s not like I’m hesitating to make it in front of you.
But genuinely, there is no such technical know-how and expertise in this field yet.
Mubina Kapasi: Okay, so where do you sell your product? Which industries are your key clients?
MK Gupta: Look, we are catering to almost all segments in India. If you take our major, defense, we are doing a lot of work in defense.
Because of noisy equipments, that makes a huge noise. If the fighter plane is moving around, you can understand what type of noise it is generating. So we are making test cells, exhaust detonator systems for defense and different applications.
Besides that, automobile is a very big segment of ours. We are serving almost every leading automobile company in India. We are serving them in some way or the other.
Whether it is for testing different components or complete assembly. For example, there are many components in automobiles. And if there is any rotating equipment, that is creating a noise. So if we need acoustics, we need a manufacturer. And finally, when it goes to the principal, it also needs a noise test. So almost all segments of automobiles go with a noise test for a quieter experience while you are sitting in the car. Besides that, home appliances are also a big segment of ours. Because any rotating equipment, as I said earlier, generates noise. Whether it is a refrigerator, a washing machine, a ceiling fan or an air conditioning unit. So there are certain quality norms that have been laid. It is important to comply to those norms. So that you will find a quieter environment while you are utilizing those appliances. So we are doing a lot of work in home appliances.
Besides that, we are also doing a lot of work in projects. If you talk about a project, there are many things where noise is being generated. If you talk about a prestigious project, we have also worked in the parliament. There we have done acoustic treatment of chillers and cooling towers. We are working on many different projects with L&T. We are working on many prestigious projects. So there we are providing a complete solution. Besides that, if you take any manufacturing unit, if 8 hours are being worked on anywhere, then it is mandatory that there should be a noise level to be maintained by 85 decibels. Noise is measured in decibels. So it is wrong to stay in that environment for more than 8 hours than 85 decibels. We have made many guidelines for this, in India CPCB has made few guidelines, Occupational and Health safety too has certain guidelines. So, if we live in any noisy environment for more than 8 hours, it can have health impacts. . . So as you asked me, what segment, almost all large-scale industries which are generating manufacturing . . components or the final components or the final product. There are so many noisy equipment and machine. noisy equipment and machine. So, the opportunity is for all . Right now, it is related to awareness. . Earlier, development was not taking place in India as it has been taking place for many years now. . So, with the urban development, with the manufacturing enhancement, there are so many noisy equipment . . . . which needs to be, you know, attended for the noise separation. So, there is a lot of scope in manufacturing industry, in all segment..
Mubina Kapasi: Okay, clearly, there’s a wide range of applications for range of applications for for these acoustic products. Would I . . be right in saying research and development, innovation, should be the core of your comapny. . Because you have to provide differentiated products, customized products, to depending on who the client is.
So, do you have enough of investment in R&D and innovation?
MK Gupta: Having innovative products and applying them innovatively is very important things. So we as an EnviroTech always believe that we can provide some innovative solution.
So we continuously work on that. As I said, we do proper testing of our products, get the certification done from the third party agency, we don in-house stimulations. We have in-house licensed software. In the design stage itself, we try to reduce or absorb the noise. So in-house R&D team, we have government laboratory from where we get the testing done. There is no such thing as patent, as of now. Because, we are working on the application of available material.
Noise is an energy, which translates to the high, mid and low frequency like a current. There is a technology to block/stop every frequency. For example if we are working for theaters or auditorium, different material will be used for it vis-a-vis the high noise machine. Application of appropriate material in a designed manner, that makes us different.
We keep experimenting and innovating with different available material in India. We can proudly say, we are make in India company. We are using appropriate material available in India to develop high quality material in India. Our successful and satisfactory customers tell us, the performance of products supplied EnviroTech is excellent.
Mubina Kapasi: What cost is incurred to implement the acoustic solutions?
MK Gupta: See, we don’t have any specific product but we provide solution. So, if you have any noise related problem, which is disturbing you or your wellbeing, we are providing solution. In customised solution, it matter what kind of material we are utilising. So, our basic material is make in India. So, if we are designing equipment for a noisy material, then our key factor will be steel, from which we give rigid structure or skeleton but the insulating material, which will be used is the differentiator. So, the cost varies project to project. because we make smaller enclosures to large turbine. We keep the appropriate margin with our business.
Mubina Kapasi: Mr. Gupta, as you mentioned there are several clients from across industries, theatre, automobile, defence, etc. So, tell us how do you adapt to these varied industries, as there will have different requirements for these industries and companies too?
MK Gupta: For example, if we talk about home appliances, we make noise test chamber for ceiling fan, compressor for refrigerator. Besides that if there is a defence equipment or any other high noise equipment, we have different solution for it. So, the product range varies. We not only make acoustic enclosures but also sound proof doors for auditorium etc. One new thing we are making is noise barrier. Noise barrier is a huge field in India. Due to urban development, infrastructure is rapidly expanding. Be it metros, highways, flyovers, high speed trains, all these are creating noise, we are making noise barrier for all these things. Another new things, which we are making is construction noise. Very few people have been working on this. For example, if there is a construction of any new building near your house, it is going to disturb you for several years. For this we have made a temporary noise barrier, which a builder can utilise till the time building is constructed. As the multiple activity related to construction creates noise. . We provide specialized acoustic solution, which is called anechoic chamber. Anechoic chamber means where there is no echo.
Noise is a natural energy, measured in decibels and the normal range is about 30 to 40 decibels. So, anechoic chamber we also go below the law of nature, where you will get noise level of 20-25 decibels. . It is such a quitter place so, we make such creative products too, which is utilised for several R&Ds and testings. Besides that we are also present in commercial acoustics. Today, we have open offices, where acoustics is required. Understanding all this, we have launched telephone booth and meeting pots. So, people can utilise these spaces for their personal calls and meetings. So, you can understand, these new requirements are coming up which is necessary for quitter environment and good working experience.
Mubina Kapasi: What are the emerging trends and opportunities in technology and entire environment acoustics business, which can impact your business?
There is lot of work going on related to acoustics, globally and in western countries lot of work is already done. And in India, as it is a developing country, new kind of requirements are coming up?
MK Gupta: We keep a watch on new technologies available, about their research and development. We try to adopt it and customise it according to Indian environment and the specific type of industry.
As of now, we don’t have a any challenge as we are able to provide similar solutions available in developed countries. Let’s talk about the partnerships, I understand your company is in advance discussions with siemens energy for export opportunity. And you also have a collaboration with IIT Delhi, which you have recently announced.
Mubina Kapasi: How do these partnerships align with your growth, goals and the scope of innovation in your industry?
MK Gupta: In today’s time the world has become a global village, and if any innovation is going on in another country then it can happen in India as well. . . . In India, the cost of product and production is comparatively cheaper. So, yes we are in talks with several companies and Siemen is one of those. This is be make in India, which will be exported. Coming to IIT Delhi, we are trying to develop innovative acoustic material and sustainable noise barrier. . utilising the plastic waste and agri-waste. This is a revolutionary work. There is lot of work going on, on plastic waste and agri-waste but there is no product related to noise, available in the market. We have had several discussion with IIT Delhi and the prototype that we have developed is high performance, used for high noise barricading and very cost effective. . We are not only providing solutions related to noise but also eliminating plastic.
In Delhi, there is a huge problem due to stubble burning, so we are utilising agri-waste as well. So, it is not only a high quality product but will create new income opportunity for people new lower income group. The discussion has been done, MOU has been signed. We are proud that we are developing such a great product with a prestigious institution like IIT Delhi. . . . . We will launch it at the earlier and it is going to be a very revolutionary solution for the noise related products, that is for sure. . .
Mubina Kapasi: Mr. Gupta, you have a big expansion plan in place as well, you are expanding the manufacturing capacity from 2000 to 10000 square meter. Please explain us, how will this contribute to your business and market expansion. Also, for the next 3-5 years, what will be the focus area of your business?
MK Gupta: With a huge demand. I am telling you, this is related to awareness.
In India, the way wealth is increasing, comfort is needed. The current two facilities that we have, are totally occupied. We have acquired our third facility. Its final work is going on. It is three times bigger than that. We have acquired the plant and machinery. Because we have to fulfil the market requirements. We are coming in an upgraded way. After the new facility, which will come in the next three to four months. Our plan was for the current financial year. But it is in process. After that, our capacity will be multiple times.
Be assured about that. And further you ask, what are we going to do with the new segment? There are a lot of things. Wait a little. I am going to give you such unique products, EnviroTech. We are in an informative mode. We are in an awareness mode.
People take noise very lightly. Noise will come and go. What can we do? We don’t have to ignore noise. It is also a type of pollution. I am telling you, we talk about water pollution, air pollution, soil pollution. But there is no awareness about noise pollution. Why? It is a well-declared noise pollution. It is like a slow poison. It affects slowly, so we are ignoring it.
In the media, in the papers, everywhere, it is being said for all kinds of pollution. Why not for noise? It is very dangerous. As per the WHO guidelines, a lot of things are being said by them. You will do research. And we are ignoring it. So there is a lot of scope.
Because it is also a type of pollution. I see that awareness is increasing. I have a lot of paper cuttings. Every week, I see that in a newspaper, there is news related to noise. There are old people, there are children, and they are worried about the noise of traffic. There is construction going on somewhere. People are complaining about it. . There is a problem with the noise of the metro construction to residents nearby. There is a problem with the highway and flyway. There are increasing number of problems.
So we are providing solutions to different products. There will be two major ones. Number one, we should reduce the noise at the source.
For example, if there is a highway, a flyway, or noisy equipments, it should be reduced at the source. If we are not able to reduce it at the source, the affected zone, or the user, we should be able to provide a solution to them. If they are not able to install it near the flyway, metro, or railway, then we should reach your home. We should soundproof your windows, soundproof your curtains, soundproof your doors, so that you will be in a comfortable level. Many things are going on. Wait for it. We will announce many products very soon. We are working on that. .
Mubina Kapasi: Mr. Gupta, who are the people in your company, individuals, or groups, who are helping you achieve these targets and the vision you have for the company?
MK Gupta: Yes. . no organization, no business, can grow without a team. We are very happy that in EnviroTech, we pay a lot of attention to our team efforts.
Here, there is no relation between the employer and the employee. Everything is about ownership. That means, our team, their focus is on highest productivity and the company’s growth.
In different segments, different key persons are working. For example, if you want to hear their names, our CFO, commercial head, Mr. Ashok Shekhawat he has a big role. Our CEO, CS, and our heads are in design, production heads.
So, in different segments, all our team members, best of their output, they are delivering to us. And because of the team, we are able to carry out our next plan. A single person cannot do anything. The system needs everyone’s support. Well, noise pollution, of course, has a big impact on everyone’s health.
Mubina Kapasi: Since you are in this industry and you are sort of helping solve this problem, could you just share with us some of the ways in which noise pollution impacts all of us?
MK Gupta: There are lot of physical and mental health effects due to noise pollution. It leads to hearing loss, hyper-tension and high blood-pressure. The most important thing is sleep disturbance, poor quality sleep is becoming a huge problem. If you don’t have sound sleep, your next day is going be be ruined, there is no doubt in that. There is lot of work going in terms of sleep therapy, if we live in a better ambient environment and better sound, then we can improve our sleep disorder. If we talk about mental health, youth is not able to concentrate because noise is directly related to concentration and productivity. If your office doesn’t have a quieter environment in your office, then your productivity is going to hamper. If you don’t sleep well, you will get stressed, you will get irritated, your mood will change very quickly. There are a lot of guidelines, and this has been found out by international research. Anxiety is a very big problem.
I mean, a lot of people, I would say, if we make our environment quieter, then a lot of people, we don’t even have to go to the doctors because if we are constantly surrounded by excess noise or disturbing noise, then our blood pressure, anxiety, productivity, concentration, are all related to this. If we have a quiet environment, then our productivity always increases. Besides the human being, there is a lot of disturbance for animals.
In urban cities, the food cycle of the animals changes. Their navigation issues become a problem. I mean, if we are going to the jungle, the government has also taken a good initiative and put noise barriers on the highways and flyways that are being built there.
If it is not installed, there is a navigation issue. That is, if an animal goes from one place to another, then it is not able to come to its place. If it is trying to eat something, there is noise, then its fooding habit changes, so it goes from there. So its food cycle is completely disturbed. If you recall, a long time ago, the bird used to sing, where is it now? All this is also related to noise. So, quite a requirement, quite an environment, is really indeed, it’s a necessity of the society nowadays. We cannot stop urban development, it is necessary for us. But we should do something about its side effects. We should be aware. We should be aware. We should be alert about mitigation techniques. We should search.
Be sure, company like EnviroTech is working for your convenience. We will provide you with better and quieter environment as soon as possible.
Mubina Kapasi: All right Mr. Gupta, it was great having you with us and thank you very much for joining us on Small Cap Spotlight.
There you have, that’s the management of EnviroTech limited, talking about his business.