Galaxy Surfactants expects to surpass last fiscal’s performance in FY21

Galaxy Surfactants expects to surpass last fiscal’s performance in FY21

 

Speciality chemical firm Galaxy Surfactants expects its performance to be better than last year’s, on the back of growing demand for cleaning materials in the personal home care industry, a top company official has said.

 

"With the COVID-19 pandemic raging across the globe, our production was also impacted till the lockdown. However, with the consumer behaviour changed the demand for cleaning materials, hand wash, body wash and shampoo have witnessed huge growth," Galaxy Surfactants Managing Director Mr. U Shekhar.

 

He added that despite continuing supply disruptions, "we expect to surpass last year’s performance as we manufacture a wide range of specialty chemicals used in consumer-centric personal care and home care products".

 

The company’s revenue from operations stood at Rs 2,596.38 crore during 2019-20, while its net profit after tax was Rs 230.41 crore. The company manufactures specialty chemicals used in consumer and personal care products, including skin care, oral care, hair care, cosmetics, toiletries and detergent products.

 

He said that as the frequency of using personal care cleaning products has gone up considerably due to the pandemic, there was growth in demand for mild cleaning products, he said.

 

"We see a huge potential in our products following the trend in the growth of the home and personal care industry in the backdrop of consumers increasingly looking for products with no formaldehyde, no sulphate and no parabens, especially in the baby care segment," he said. To meet the growing demand, the company has been investing towards expanding capacity for the past 3-4 years.

 

"We have been continuously investing towards capacity expansion for the past 3-4 years. In 2019-20, we invested around Rs 150 crore for capacity expansion and in 2020-21, we kept around Rs 170 crore for the same purpose," he said.

 

The company expects to see 10-15 per cent increase in the current capacity by the financial year 2021-22. The current installed capacity of the company is over 4.5 lakh tonne per annum. The company has five manufacturing units in Tarapur and Taloja in Maharashtra and Jhagadia in Gujarat. It also has two manufacturing units overseas, one each in Egypt and the US. Mr. Shekhar said that over 66 per cent of the company’s business is from the international markets.