Being a promising fourth-generation entrepreneur for CICO, having immense knowledge, global exposure, and strong fundamentals, Abhiroop Gupta, Managing Director, CICO, has made an impact in the construction chemicals sector. Read on to know more about his journey and what future growth plans he has for the company.
Briefly, tell us about the role played by your company in the construction space and the services offered…
CICO is India’s oldest construction chemical brand in the country. We have played an important role in India’s infrastructure growth since 1930. Over time, we have continuously innovated and offered solutions to enhance the life of structures and to future proof what is built. Starting from innovative waterproofing solutions in coalmines to the most advanced construction chemicals used to construct Nuclear Power stations, CICO has been fortunate enough to work in virtually every segment in the construction space.
Can you tell us about the recent projects where your products are presently being used and name some of your clients?
CICO is involved in almost every large infrastructure project that is happening in India. We extensively supply to NHAI road projects, Metro rail projects, real estate projects, NTPC power projects, Hydroelectric project by NHPC. Few of our current project supplies include DMRC phase 4, Rishikesh to Karnprayag railway project, Central Vista and various projects under the Bharatmala.
Recently you have been appointed as the Managing Director at the CICO, how does it feel?
It is a great honour to be given the opportunity to lead a company of CICO’s stature and reputation. The responsibility on the other hand is also enormous, we are dealing with times that have not been seen before and every member in the organisation looks towards the management to provide direction and guidance during such uncertain macro-economic times. Having been appointed MD, my primary responsibility is to ensure our fundamentals remain strong and to strategically guide the company to ensure maximum value creation over time.
What are the emerging trends in the chemical industry? And what are your future plans for the company?
The company in the last three years has gone through a strategic reorganisation. We have relooked at our go to market strategy, the key areas to focus on and our product mix. We have hired very experienced professionals in senior leadership roles as well who will be the driving force for the company. We have set ourselves ambitious targets of top line and bottom line growth. For this, we will be looking at certain key processes in our manufacturing process where we are able to integrate backward. This capex investment will not only support us with our margins but also open new revenue channels to sell to the market. Similarly, we are constantly looking at innovative diversified solutions that we can introduce to the Indian construction space by leveraging our existing relationships a example of this is our tie up with a Canadian firm to offer innovative digital IoT solution to construction sites. Similarly, we are constantly exploring both organic and inorganic growth opportunities in India and overseas.
What are your thoughts on the current scenario of construction chemical business?
While there is a constant rise in demand for construction chemicals, the market itself is getting crowded by the unorganised sector. With lower overheads and regional presence, they are able to sometimes cater better to localised project needs and lower prices. However, I do believe that a consolidation will take place in the industry. COVID has left various contractors in financially dire straits and impacting working capital cycles of construction chemicals companies. A lot of these companies will not be able to sustain these stretched receivables. Moreover, innovation and a strong R&D still remains the path to long-term success in the industry, without which survival becomes difficult. Therefore, I am of the firm view that organisations that can make this their key differentiator will be the ones succeeding in +96the market.
Your views on coping up with challenges posed by the recent pandemic.
The pandemic has challenged the robustness of our business models, way we interact with our stakeholders and the way we conduct business. We have had to relook our organisation structure and renegotiate a lot of our contracts. The pandemic in certain ways has made every organisation focus on area that were previously ignored. Going forward we need to account of such business disruptions in our functioning. Other than the basic health and safety processes in place, from a business point of view innovative solutions are needed to serve the customer better. The infrastructure and construction industry has been notoriously slow in adapting to change and technology and this needs to change if they are to increase on site productivity during a pandemic. Solutions like as remote site monitoring and automating quality control processes are the need of the hour.
What message would you give to budding entrepreneurs?
Always have a purpose in everything you do and create. Having a purpose will allow you to set direction and make decisions that align with your overall purpose. In the market your purpose will eventually differentiate you from everyone else and become the soul of your company. Everything you do must be guided by your over purpose which is your reason for being.