Mr. Lalit Agarwal, Director, Agarwal Industrial Corporation Ltd, in conversation with Fortune India Exchange expands on the value of relationships in their business ecosystem & the company’s future plans.
Road infrastructure is a very important and lucrative area of growth in India, but what made you focus on bitumen as a niche area?
The government policies framed in 1991 focused on development of India’s infrastructure. Given the country’s geographical scenario and lack of connectivity, it was foreseen that building of roads would be necessary for a developing India. Bitumen was a key component for road infrastructure development and was attractive for us as it was a niche area to concentrate on.
What was the first big success the company achieved to help take off on its growth and diversification path?
There were two major successes that the company achieved; the first was the setting up of a manufacturing plant in 2004; the other was in 2019, when we diversified into shipping, with the aim of establishing the company’s presence in the international markets.
What is the USP of AICL in terms of servicing its customers?
AICL is one of the largest importers of bitumen in India and has amassed a fairly big market share of the country’s private bitumen sector. Our USP is that we can offer services relating to the entire ecosystem of bitumen and bituminous products. We have an all-inclusive portfolio of services, including self-owned vehicles, import facilities, manufacturing units, vessels and direct sourcing. All this reduces reliance on externalities and enables us to fulfill our customers’ requirements effectively and efficiently.
What have been the challenges you have faced on this journey?
There have been a lot of challenges; initially the competition from the refineries and the government not allowing the use of imported bitumen made it very difficult to establish the company’s presence in the market. Being a very competitive and credit intensive market, it has been quite challenging to manage the day to day operations of the company.
You company appears to have done well even during the lockdown and stakeholders have also benefited in the times of the Covid-19 pandemic. Your view?
Firstly, the company is closely monitored and operated by the Promoters and a sudden declared lockdown initially had a very negative impact as the prices of the petroleum products had fallen by 50%. The management had no option but to put themselves in the shoes of their employees and continue operations. Our tagline ‘We Value Relationships’ paid off during the pandemic as there was equal support from both the sides. The company took it on as a challenge and took permission from authorities to restart activities within a few days… and work has been carried on non-stop ever since.
What, in a nutshell, would describe the reason the company has moved from strength to strength?
Hard work has been one of the important values focused upon by the founder. The other factors are the vast experience of the Board of Directors, the established customer base, catering to the demands of customers under a single roof, identifying and expanding the business in the same ecosystem. All these have been the key components of our success over the years.
Future plans?
The company has already established itself as a leader in providing end-to-end solutions for bitumen and bituminous products. The company foresees its future in the entire chain of backward and forward integration of bitumen and bituminous products. The company will continue its journey in supporting India’s infrastructure development.