Chairman of S&D Chemicals speaks to LMD Magazine

This article was published on LMD | Sri Lanka Business Magazine on 27^th December 2023

https://lmd.lk/sd-chemicals/

Q: Can you give us an overview of the evolution of your company?

A: Established in 1998, S&D Chemicals is a Sri Lankan chemical manufacturing company that has expanded globally and operates in over 12 countries with production facilities across three continents. Having a highly professional workforce including graduate chemical engineers, research scientists and textile experts, we excel in the global textile chemical manufacturing field.

Distinguished by polymerisation and intermediate manufacturing capabilities, S&D stands out for manufacturing a wide range of polymers tailored to diverse industry segments, boasting an extensive catalogue of over 1,000 chemicals.

While initially focussed on certain raw materials for cleaning chemicals for the hospitality and healthcare sectors, our products gained approval from major manufacturers, propelling our expansion into diverse market segments. Our robust infrastructure – featuring cutting-edge R&D labs, and specialised application facilities – positions us at the forefront of innovation. Committed to the latest advancements, we surpass customer expectations.

Operational adherence to guiding principles from reputable bodies like bluesign, ZDHC, Global Organic Textile Standard (GOTS), Responsible Care and ToxServices reflects our commitment to improving environmental, health and safety performance.

Certified with ISO 9001, ISO 14001 and ISO 45001, we uphold quality, environmental, and occupational health and safety standards.

As a signatory to the United Nations Global Compact (UNGC), we abide by principles covering human rights, labour standards, environmental aspects and ethical business practices.

Q: What prompted you to diversify into different industries such as textiles?

A: The strategic decision to diversify into various industries – particularly textiles – was driven by the company’s expertise in industrial chemical manufacturing with a focus on coating and textiles.

Proactively expanding its product range and engaging with customers, the company successfully developed specialised products tailored to the unique needs of the textile industry. This intentional diversification has played a key role in broadening the company’s reach and tailoring its offerings to diverse industrial requirements.

Q: How has this strategy impacted the company’s presence abroad?

A: This strategic goal aimed to expand the company’s presence with a focus on strengthening its position in Southeast Asia.

Acknowledging challenges in certain product markets, the company invested significant energy and effort particularly in research, with a primary focus on Southeast Asian countries. This effort resulted in successful market penetration in Bangladesh and Pakistan.

Q: What challenges does the company face and how does it look to overcome them?

A: The company faces two primary hurdles – fierce competition from multinational corporations and the prevalence of economically priced Chinese products.

In response, the company strategically focusses on enhancing both product quality and service standards to provide exceptional value to end users and the sector.

This involves continuous updates aligned with industry advancements, which requires a commitment to improving manufacturing standards, and investing in cutting-edge research and development facilities. These initiatives aim to surpass stakeholder expectations, positioning the company competitively in the global market.

Q: Could you shed light on the innovations S&D Chemicals has introduced?

A: What sets us apart are our innovative textile processing products – including low temperature soaping agents and a revolutionary ‘scourless’ dyeing system for completing reactive dyeing in only six hours.

And our lineup also offers amino-based silicones for reducing salt consumption by 50 percent – all proudly certified with bluesign certification for sustainability.

Our commitment to continuous service is evident through tailored development efforts addressing dynamic product profile evolution. Sustainability and environmental concerns guide our focus, requiring innovative and cost-effective solutions in managing multiple research projects simultaneously.

Adapting to textile industry priorities, our solutions minimise energy and water consumption while enhancing overall efficiency. Innovations like low temperature, open-air, scourless dyeing systems, and controlled use of amino-based silicone, optimise fabric feel and moisture management.

Our strategic shift to bio-based production includes collaborations with an Indian research organisation in biotechnology, extending to co-producing certain pharmaceutical-related molecules.

Future plans involve a biotechnology manufacturing facility in Sri Lanka by the end of 2024, emphasising biological molecules – particularly bio-surfactants and specialised enzymes for the industrial segment.

Q: How is the shift to more ‘green’ solutions impacting industrial chemicals firms?

A: The industrial chemicals landscape including S&D has witnessed a significant shift towards environmentally-friendly and sustainable solutions, in response to heightened climate change awareness, stricter environmental regulations and evolving consumer preferences.

This change is marked by rising demand for greener products, emphasising reduced environmental impact, lower toxicity and enhanced safety.

In adapting to these market shifts, S&D has invested in research and development to align its product offering with sustainability goals.

Central to this evolution is a focus on minimising waste and emissions, driven by the sector’s increasing pressure to reduce carbon footprints and adopt cleaner manufacturing processes.

S&D’s commitment extends to exploring energy efficient production methods, responsible sourcing of raw materials and implementing waste reduction strategies. This not only contributes to a more sustainable future but also enhances operational efficiency.

The embrace of green solutions has fostered collaboration within the sector, with companies joining forces to develop innovative technologies and solutions. S&D’s participation in such partnerships enables the leveraging of collective expertise and resources, accelerating the transition to greener practices that benefit both the environment and their overall performance.

Q: What are the latest trends in industrial chemicals?

A: The circular economy is crucial for the chemical sector’s long-term sustainability and competitiveness, emphasising resource efficiency, reduced environmental impact and innovation in product design. Green solvents, process intensification and a focus on biodegradability underscore the sector’s commitment to environmental benefits. In addressing the sector’s significant global resource and energy consumption, the circular economy optimises resource use by designing products for reuse, recycling or remanufacturing, reducing reliance on virgin resources.

Unlike linear production models, the circular economy prioritises efficient material use, encouraging innovation in creating more durable, repairable and recyclable products, thereby diminishing negative impacts like emissions and pollution.

Consumer demand for sustainably produced products propels chemical manufacturers to explore greener solvents and adopt process intensification for enhanced efficiency and sustainability.

A notable trend is the rise of bio-surfactants, produced by microorganisms, plants and animals, with surfactant properties suitable for industrial and environmental applications. These compounds offer biodegradability and lower toxicity compared to synthetic alternatives.

Q: Could you tell us about your plans to spread your wings to the Southeast Asian market?

A: Currently spanning 14 countries, S&D has evolved from a chemical manufacturer to a holistic solutions provider, emphasising comprehensive environmental solutions. This commitment goes beyond conventional manufacturing, focussing on minimising environmental impact through process optimisation, green solvents and sustainable practices.

The strategy includes integrating biotechnology, starting with converting agricultural waste into bioethanol and obtaining other plant-based materials. This shift reduces environmental impacts significantly – particularly in terms of biodegradability and toxicological effects.

S&D distinguishes itself as a provider of comprehensive solutions, with a team of local experts and European professionals offering industry specific solutions. These core values prioritise efficient and effective services.

The company’s regional presence offers enhanced service efficiency, challenging past dominance by European multinationals in technical solutions. My vision involves expanding into the world with specialised offerings while upholding a commitment to value addition.

Operating various production arms, including industrial chemicals and natural product extraction, S&D uses distillation processes to provide value addition for fatty oils like coconut oil, and supercritical extraction methods to extract natural oil and make derivatives.

The objective goes beyond exportation, leveraging chemical expertise for additional processing steps and reinforcing the commitment to value addition.

Q: What is your message to aspiring entrepreneurs?

A: The critical factor lies in practising patience as you endeavour to attain a specific level of achievement.

In the initial phases, encountering setbacks or facing challenges in achieving specific product profiles is a common occurrence. Navigating through these obstacles demands diligence, hard work and a steadfastly patient approach to advance to the next level. This strategic approach has been instrumental in the global expansion of our influence.

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