India’s Nocil expects stronger sales as buyers pursue China Plus One

BENGALURU, Oct 19 (Reuters) – India’s largest rubber chemicals maker Nocil Ltd (NOCI.NS) is expecting higher sales volumes in the next couple of years, as firms globally push for diversified supplies beyond top producer China that is battling supply constraints.

Part of an over 100-year old Arvind Mafatlal Group (AMG), the Mumbai-based Nocil produces antidegradants, antioxidants, accelerators that are used by the tyre industry and other rubber processing companies.

In the backdrop of firms globally pursuing the China Plus One strategy, Nocil’s talks with customers in Europe, Americas, Southeast Asia and Japan have become “deeper and more strategic,” Priyavrata Mafatlal, vice-chairman of AMG, told Reuters in an interview.

“What China Plus has done for us globally is, it has broadened the discussions with customers to increase our volume share,” Mafatlal said.

In the last two years, Nocil’s profit grew more than five-fold to 664.8 million Indian rupees ($8.07 million), driven mainly by strong demand for tyres, while China was hit by supply bottlenecks during the pandemic.

“Even pre-pandemic we were reliable suppliers in the export markets of Europe, Americas, Southeast Asia and Japan, which constitutes a major share of tyre makers in the world outside of China,” Mafatlal said.

Nocil is also eyeing strong demand from the domestic markets, where China has a strong footing, with the government encouraging its ‘Make in India’ programme that is aimed at boosting local manufacturing.

Nocil’s sales volume had grown 17% on-year in the quarter ended June. Its shares are up over 11% so far this year after gaining a staggering 62% in 2021.

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