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Samir Somaiya's interview at the World Bio Markets Conference in Amsterdam, held in March 2018

• Read more about Samir Somaiya's interview at the World Bio Markets Conference in Amsterdam, held in March 2018

Text of Samir Somaiya's Gundu Rao Memorial Lecture address at the Annual Convention of the Deccan Sugar Technologists Association held at Belagavi, in July 2017.

Cane (Crop of the past or Feedstock of the future)

The world is living in a fossil fuel economy. And this has led to tremendous growth in the world economy. But as we progress, we have also seen, that the current methods of consumption, we are depleting resources. In the future, we will have to adapt to a more renewable future.

Renewables are interesting, and fundamentally different from fossil resources. The focus on fossil resources, is extraction. Every subsequent year, you will have less of the resource. In renewables, it is how much you can make available, and then what you can harvest. And, if done right, you could have equal resource every year.

So, I will speak on the raw material, the process, and the product. As I go along, I will also give suggestions for research that DSTA could consider.

Raw Material

Imagine having been prescribed medicine for your health, without having had a checkup. Would we even consider doing that? I think that the same is the case today, in the work we do in soil science. In the past couple of years, we have done over 4,000 tests for soil, and we have seen that the application of inputs to the soil is independent of what the soil needs.Farmers apply inputs to the soil as suggested by tradition, what the neighbor is doing, or what the marketing company is recommending.

To get better yields, we must focus on soil health. And to understand soil health, we must first understand it, what it has, and what it needs.

Once we know what it is, we must then focus on how to keep it good for all time. There are various ways in which we can do this. From having an educated understanding and informed application of what is being recommended by the fertilizer companies, to a greater education and understanding of the experiments being done in agro ecology. Using of farm produce itself, to make the farm productive. I have seen farms using a combination of cow urine, garlic, jaggery etc, to make combinations of fertilizer and pesticide additions to enhance soil health and fertility.

Experiments in Brazil (to keep the soil wild). There have also been experiments in Brazil, where the soil and cane have been allowed to grow using organic methods, and biological means of pest control.

Recommendation 1: We must encourage research that integrates modern research and traditional methods

There is also much research on use of some pesticides, and effect on human health. Recently, I read a book ‘Living Downstream, by Sandra Steingraber (http://www.livingdownstream.com/) that looks at modern practices and their detrimental effect on our health. Can we look at this research, and examine our response.

Recommendation 2: Being mindful of our agricultural practices and study their effects, if any, human health.

Soil is one aspect of sustainability. The next aspect is water. We are constantly being reminded, that we are in the Deccan plateau, and that water is scarce. Sugarcane drives the local economy. Sugarcane contributes to livelihoods, and provides sustainable energy in the form of renewable electricity (cogeneration), and biofuels (ethanol). The business of sugarcane processing, is also carbon mitigating, when a carbon balance is drawn around the entire sugarcane economic envelope.

But, water is a scarce commodity, and its use must be measured. The advent of drip technology promises much saving, but it has not spread sufficiently. As of today, total penetration of drip is small. Estimates in Maharashtra are about 18% and Karnataka about 10%. Even though the use of this reduces water consumption by 50%, and increases yield by 30-40%. Systematic efforts need to be made by the mills with their farmers to increase adoption.

There is an explosion of technologies that further help in the monitoring of cane (or for that matter, any plant growth). IOT (internet of things) and new wireless technologies allow for monitoring moisture, and subsequent automation in delivering water when dry will further help plant growth and optimization.

Drones are being used in agriculture. They help the farmer see his/her plot in a way that is not seen otherwise. See patterns, multi-spectral, and also over time.

Recently, when in the USA, I saw a chip being implanted in a tree, that wirelessly communicates moisture content.

Recommendation 3: How do we best integrate these technologies including IOT for better yields.

But even if we have so much information, what recommendations are we providing. Are these static? Have these changed with time? There is an explosion of data, are our recommendations dynamic? Are we learning.

Recommendation 4: How do we give personalised recommendations, instead of static, one size fits all approaches

There is a company, ‘The Climate Corporation’, that was purchased by Monsanto. This gives detailed analysis of the farmer’s plot. And what needs to be done on it. Also, the introduction of cane varieties, intercropping, In March this year, there was an article in the New York Times, ‘How to Steal a River’. This talks about a river in Kerala. Sand acts as an aquifer. When the rainfalls, it helps recharge the ground. The article said, that illegal sand mining has ensured that what were flowing and perennial rivers have become seasonal, and the water tables have dropped. So, while we try to reduce use of water, we have to also see that the harvesting of water (or its conservation) also takes place. Otherwise, we will continue to see what we have been. Rajendra Singh, waterman of India, says that the water that falls on the ground, must be taken under water. Through the planting of trees, and we have to also ensure, that our sand in the river bed is conserved.

Recommendation 5: Water Conservation, and a holistic approach to achieving this.

Ultimately, all this has to be done, with a view on the farmer, and their livelihood. Unlike Brazil or the USA, where farms are very large, and there is corporate agriculture, our agrarian economy is small holder farming. We have to ensure that the farmer continues to make a good livelihood of cane.

What is the area under cane? Are we going to accept that we will always have 90 tons per hectare of cane, and that recoveries will remain static or decline. Will we look at the growth in recoveries that UP has accomplished this past year? How do we combine higher yields, higher sugar content, and a smarted application of knowledge and inputs, so as to ensure that the farmer gets the best yield, and the earth is healthy enough to sustain this agriculture for a long time to come.

Recommendation 6: Targeting better yields without compromising soil fertility and improving farmer livelihoods.

Process:

There are two words that are gaining currency in the world of manufacturing. Cascading, and Circular. What is cascading? And what is circular? By Cascading, we mean the processes that the sugar industry, the world over has been practicing for decades. You make sugar, the molasses cascades to ethanol production, the spent wash cascades to biogas, or steam, or spent wash cascades to make biocompost, etc. Similarly, bagasse cascades to the manufacture of power, or it cascades to make paper or particle board.

By circular, we mean how much of the product Is recycled. So, if I consume water, and sugarcane itself can be considered as a bottle of water, how much of this circles back to the process. Does the water that we get from the sugar plant circle to the fermenters? Does any of this circle back to the power plant? Today, at Sameerwadi, except for the initial filling of water, we require no fresh water to run the sugar process. In fact, the excess condensate is recycled to the cogeneration plant and distillery. It was in recognition of these efforts that the company received an award from ICC and FICCI.

Recommendation 7: Reducing raw water consumption to 0

The use of bio-compost to the farm encircles a wider circular envelope.

This also applies to heat. If I use the heat in the flue gas, to dry the incoming bagasse stream, then once again I have a circular process.

This brings me to energy

How much energy are we putting into the plant? What is the steam % cane? Where are the opportunities for energy recovery? What is the minimum that we can go to? What technologies are we using to discover this minimum, and how do we arrive at what is optimum.

When I joined the business 50% steam on cane was the norm. Exhaust steam used to be used at many places in the plant. And with good reason. One did not want to save bagasse. The creation of a power PPA encouraged energy and subsequent bagasse saving, for use in high pressure turbines for export to the grid. Today, continuous pans and FFEs have made 30% steam on cane possible. When there was no ability to sell excess power, there was no generation of excess power. Today, it is possible to export 110 units per ton of cane crushed. A paper published in 2001, detailing schemes of a gasifier and an integrated gas turbine demonstrated a much larger number of exportable surplus.

Recommendation 7: Steam% cane to 30%

So, the point that I am making is, what do how do we look at the resources we generate. How do we cascade them, and how do we reuse them?

Products

Sugar is our main product. As they say, it is our bread and butter. A few months ago, I attended the NY sugar dinner, and had a chance to meet the head of the WSRO. The website home page of WSRO (www.wsro.org) says, ‘researching the effects of sugar on nutrition, health and wellness worldwide’.

I think that this is important. Much money is being spent, by NGOs, and Governments, trying to find evidence to say that sugar is not healthy. And there is no research being done or supported by the industry, to see the effects of sugar on health and nutrition. On whether, our traditional dietary approaches to using sugar are healthy.

She mentioned that there is a storm, but sugar technologists and management are more concerned with their mills, their efficiencies, their climate, and their Government policies. She mentioned that research must be done that addresses the public perception that is being built simply because of the incredible amount of money being spent to find sugar guilty.

We all need to find out what the facts are, and promote a healthy lifestyle, and a healthy diet. But we should be mindful, that our market is being eroded. ANd we should put the correct research there, and not just lose because we did not put our money or resources to the research.

Recommendation 8: Sugar and health, nutrition research

Ethanol

Now we know that ethanol is very versatile, and it can be used for transportation, drinking, and the manufacture of chemicals and pharmaceuticals.

We are here in Belgaum, and I did an analysis of the petrol consumption here. In Belgaum, petrol consumption is 1010.5 KL/month. Or 10 million litres per month, so 1.2 billion litres per year. Or, 12 crore litres per year. The amount of cane crushed in Belgaum district is 79 million tons. At the approximation of about 10 litres of ethanol per ton of cane crushed (assuming that ethanol is only made from molasses), we can have the production of about 8 crore litres of ethanol per year.

Litre for litre, that is 65% of the petrol consumption, and in terms of energy value (since ethanol as 67% of the energy value as petrol), about 40% of the petrol consumption. This means, that at current levels of consumption, if we followed the Brazilian model, where all ethanol, or a percentage of this, could be used as a fuel in the vehicles, we could meet 40% of the need of petrol consumption in this district.

Recommendation 9: Working with auto companies to enable wider use of ethanol as a fuel

Biogas is also produced as a product of bio-methanation. This could also be converted into a transport fuel.

Recommendation 10: Biogas as a fuel

Petrol prices in Belgavi are Rs. 63 per litre. In energy value, this is equivalent to Rs. 42 per litre. Could we not, as the sugar industry be allowed to sell ethanol as a fuel into the market. The demand for petrol is growing, will this demand only be met from imports. When we talk of a circular economy, can we not draw a boundary around what we have.

Many say, where will the ethanol come from. I think we have to take a wider view. Are we going to assume that the productivity of cane will remain static. We are all aware, that in smaller plots, cane yields of over 200 tons/hectare have been witnessed by many of us. Can we not, then target a yield of 125 tons per hectare as an average? There is much happening in the field of cellulosic ethanol. Maybe, in the future, there can be a drop-in conversion costs of converting bagasse to sugars. Coupled with lower steam on cane percentages, the higher bagasse savings can be converted to cellulosic ethanol.

Or, the electricity generation can also be used to power transportation. I have just returned from the USA. My friend has a Tesla. Volvo has just announced, that it will fully transition to electric or hybrid vehicles. At so many places in California, there are electricity charging stations.

Other products

On this same trip, I was at San Fransisco airport, there was 2 bins at the airport for trash. One that said ‘recyle bottles and cans’, and the other for ‘composting’. And the sign above it said, almost everything that you purchase here is compostable. Once again, a circular economy. From the earth, back to the earth.

Like compostable utensils from bagasse, or other agricultural residues, much work is happening in bio polymers, bio chemicals, and also using synthetic biology to convert sugars to high value compounds. The possibilities are endless.

We have to transition to a cleaner and a more renewable future, and must certainly, a sustainable future. One that is a more self-contained economy.

Our past has laid the strong foundations. Let us chart out and build a futuristic path.

Samir Somaiya

• Read more about Text of Samir Somaiya's Gundu Rao Memorial Lecture address at the Annual Convention of the Deccan Sugar Technologists Association held at Belagavi, in July 2017.

Our Chairman, Samir Somaiya's article on 'Building a Modern Biorefinery' appeared in the June edition of Industrial Biotechnology

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• Read more about Our Chairman, Samir Somaiya's article on 'Building a Modern Biorefinery' appeared in the June edition of Industrial Biotechnology

Foundation stone-laying ceremony of Cellulose project and Bagasse based Biorefinery Project

Godavari Biorefineries Limited (GBL) is currently operating in Sameerwadi (Dist. Bagalkot, Karnataka) an integrated sugarcane processing complex which consists of sugar factory of 15,000 MT per day sugarcane crushing capacity, distillery of 2 Lakh Liters per day, Co-generation power plant of 48 MW, bio-fertilizer unit & organic chemicals.

GBL decided to embark upon journey to create unique biorefinery using agro feedstock (essentially sugarcane & its derivatives) & to produce various chemicals which have applications in Paints & Coatings, Construction, Pharmaceutical, Flavour & Fragrances, Personal Care & Cosmetics, Food & Beverage industries.

On 28th April 2017, we laid the foundation stone for our next generation bagasse based biorefinery and ethanol based specialty chemicals projects.

Our proposed next generation bagasse based biorefinery & specialty chemical project in Sameerwadi is a step in achieving the stated objective of creating a biorefinery and to optimize the value from the feedstock currently being used in producing sugar, ethanol & power. The bagasse based biorefinery would produce cellulose & Xylitol, an alternate sweetener in the first phase.This will be one of the few integrated cascading biorefineries in the world.

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A Story Sweetened Over The Years

Godavari is a story sweetened over 77 years and stands on the pillars of three generations. From sugar production to over 20 different products from sugar cane, the company has come a long way.

Almost eight decades back, a young man, looking for work, met a few Marwari traders. They asked him if he could help them trade sugar in Maharashtra. He said “yes” and started trading. Slowly and eventually, he entered into the manufacturing of sugar and in 1939, Godavari Sugar Mills was established. Today, Godavari is a story sweetened over 77 years and stands on the pillars of three generations. Since its inception, Godavari Sugar Mills donned upon numerous avatars- from sugar production and sugarcane farming to ethanol distillation in the 1960s and later it entered into the manufacturing of ethanol based chemicals by the early 70s.

More recently, the company reinvented itself as Godavari Bio-Refineries and added value to agriculture feedstock by not just making sugar, but also, bio fuel, renewable electricity and a range of commodity and specialty chemicals.

Milestone of change

Staying ahead of times, Godavari, in its very early phase decided to think beyond the borders and work towards international trade. Change in government policies in 1992 created a challenging environment for the company. Godavari decided to confront the challenge and reinvent itself.

“During the time of liberalisation, the government lowered the import duties into India. They also removed the controlled price of molasses, which was the raw material for us. Taken together, the government regulations changed as far the local molasses market was concerned and with the lowering of duties on chemicals, we were exposed to international competition,” said Samir Somaiya, chairman & managing director, Godavari Biorefineries Ltd.

“These were the two significant changes in the external environment which made us think that as we prepare ourselves for the future, we want to grow in a way so that we can compete with the global competition. This meant that our products need to be of exportable quality and we need to be knowledge driven,” continued the third generation entrepreneur of the company.

And thus, Godavari steered its organisational direction towards strengthening its research knowhow. “In those days, the 90s, research and development was just a quality control measure. We however decided to start developing our own knowhow and become a company that would be at the cutting edge of research,” said Somaiya.

Today, Godavari Biorefineries boasts of its deep rooted research and development practices for enabling the company to become one of the largest sugar producers in India in single location and one of the leading manufacturer of ethanol, ethanol based organic chemicals, renewable power & bio fertilizers.

“As a fresh chemical engineering graduate, the first assignment that my father gave to me was to develop a department for research that can make products to face international competition and a department that will try to strengthen company’s exports. My skills were put to test immediately and the team that I built then is still there today,” recalled Somaiya.

The company currently has a team of over 30 persistent scientists working towards making new products and innovation.

Manufacturing Excellence

The company has two large manufacturing locations in Maharashtra and Karnataka. Sugarcane as a feedstock is converted to sugar, ethanol and electricity. Ethanol is then converted to a range of commodity solvents and specialty chemicals. The company currently manufacturers about 20 products from sugarcane and is now working on making products from Bagasse other than electricity.

The company also manufactures natural waxes and compost and has also recently entered the branded segment with sugar, salt and turmeric under the brand name Jivana. “Our chemical products go into a wide variety of fields such as printing inks, intermediates of pharmaceutical, paints, cosmetics, frothers, etc. This all comes from a knowledge driven approach to business,” said Somiaya.

Solutions for the industry

• Flavours and Fragrances
• Mining: Replacing MIBC as a frother due to its carcinogenic property
• Plasticizers: Working on replacing carcinogenic phthalates
• Cosmetics: Making natural skin-friendly emollients
• Renewable Power: Using sugarcane as feedstock to make renewable energy via Bagasse.
• Inks & Coatings: Using Green and renewable solvents

Quality Measures

An organisation’s credibility comes from its quality. Godavari Biorefineries has ingrained quality in its DNA. “Quality is not just one thing but needs to be looked at as a whole in terms of product quality, process quality, the quality of the facility and the quality of the relationship that the organisation has with the people it works within the company and outside in the community,” said Somaiya.

Apart from a combination of certifications, the company believes in improving quality and productivity from the base level. “We continuously work with our farmers to see how their yield can be improved, ensure their soil is healthier and employ sustainable practices to get higher and good quality yields while improving the farmer’s productivity,” he added.

Sustainability Quotient

The company has been striving to reach sustainability in every aspect of production and functioning. Their work towards water conservations and management and their recent endeavour to reduce water consumption in the facility by half, got them recognition from ICC and FICCI. In a time where every global organisation is striving to achieve high sustainability in their operations, interestingly at Godavari, more than 65% of the inputs come from renewable resources already. “For more sustainability, we are now focusing on the new products and are trying to make them from renewable resources as well. We are also trying to see how we can make our farmers more sustainable in terms of inputs they use in their farm,” explained Somaiya.With various collaborations with agricultural institutions, research organisations, and experts along with farmer education, awareness and participation, the company has been constantly trying to achieve more productivity with less land, chemicals, water and other natural resources are develop solutions to ensure sustainability of agriculture.

Growing Together

An organisation is built by its employees. Moving ahead with over 1,500 people employed by the organisation, Mr. Somaiya believes in going beyond the ordinary. The motto - Earn with a 100 hands and give back with 1,000, is just one way in which company believes in paying back its debt to the society.

“A combination of various factors culminates into making us a company which constantly works towards productivity enhancement. In this process we also try to do a whole social transformation with us. And we have been doing this way before ‘social responsibility’ became a buzz word,” said Somaiya.

Future outlook

The company recently launched three products in the last two years and has over five to seven products in the pipeline to be commissioned in the next 2 to 3 years. These products also have a stream of expansion plans lined up. “We try to make transformation of biomass and this transformation can be chemical, physical, biological or agricultural. Our focus is on expansion of the existing business and introduction of new product lines,” said Somaiya.

The company has a current turnover of over Rs 1,365 crores where over 35 percent of turnover comes from export. These are numbers that quantify a business.

However, it is not the number that is generated in business but the number of lives that are touched that matters more. And the number of lives that Godavari continues to touch is an endless journey.

THE AUTHOR: DEBARATI DAS

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Godavari Biorefineries Limited increases production capacity to 50 million litres per year of fuel grade ethanol up from 15 million litres currently

Godavari Biorefineries Limited has commissioned its expanded facility for dehydrated ethanol (fuel grade) manufacturing at Sameerwadi in Karnataka. With this expansion, the company has the capacity to make 50 million litres per year of fuel grade ethanol, up from 15 million litres currently. The expansion of the fully automated plant using Molecular Sieve Dehydration Technology was completed in 5 Months. The facility will use byproducts of their sugar manufacturing process as raw material.

Godavari Biorefineries Ltd. is a biorefining company producing sugar, biofuels, chemicals, power, compost, waxes, and related products, using sugarcane as the primary feedstock. The company has manufacturing plants at Sameerwadi, Bagalkot district in Karnataka and Sakarwadi, Ahmednagar district in Maharashtra.

Samir Somaiya, Chairman and Managing Director said, "The expansion, is an extension of our strategy to create more value from our renewable stocks. The expansion will help our greater participation in the blending Programme of the Government of India that mandates target of 5 percent blending of bio fuel with petrol.

The company had recently raised private equity from Mandala Capital, a part of which was for the setting up of this plant.

About Godavari Biorefineries Limited

Godavari Biorefineries Ltd., a member of the Somaiya Group, was established in 1939 and is one of the leading companies in the Indian sugar industry. It has sugar, power and chemical plants in Karnataka and Maharashtra. Godavari Biorefineries Ltd. expects a turnover exceeding Rs. 1,200 Crores for the year ended March 2016.

The company undertakes continuous research and innovates for making new products and entering new markets in order to derive maximum value from its feedstock. The company has been pioneers in the making of ethanol based chemicals and is now working on the utilisation of biomass to make a wider variety of products.

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Ahead of what's next

Samir Somaiya, CMD, Godavari Biorefineries, which has entered the branded foods category by introducing the ‘Jivana’ brand for its sugar, salt and turmeric products, speaks to Progressive Grocer about the growth prospects of his products and its plans to expand the reach across markets and consumer segments

Tell us about your foray into the food industry. How did a maker of biofuels and specialty chemicals come into the food business?

Our roots have always been in agriculture. We started in 1939 as a company that processed sugarcane to make sugar. Over time, we also took up the manufacture of ethanol, biofuels, renewable power and chemicals to our product mix. But even now, sugar and agriculture are an important part of our business. We have also been in the business of making salt for many decades now. Recently, we decided to enter the branded foods category by introducing our ‘Jivana’ brand. Our sugar, salt and now turmeric products will be sold under this banner to consumers.

You started with salt and sugar and now into turmeric. Are there any special and particular reasons for getting into these categories?

Sugar and salt have been our ‘bread and butter’ for many decades now. And our products have always been acknowledged in the wholesale market as having good quality. We thought the branding of the same would be a natural extension of our offering. We have always promoted the growing of turmeric among our farmers as a rotation crop and, in some cases, as an inter-crop. In our country, farmers have smaller land holdings, and it is important for them to be able to get good value from their land. Th is crop combination would add value to the farmer’s income. As the programme grew, we naturally thought of buying the turmeric, processing it, and offering high quality turmeric to our ‘Jivana’ consumers. Turmeric is also among the most commonly used spice in most Indian kitchens because of its medicinal properties, which dates back to the ancient Vedic culture of India.

What is special about your products in these categories that sets you apart from your competitors?

We look at our foray into food products in two ways – creating access for farmers and food producers to the retail markets and providing individual consumers with food, which has been grown through sustainable means and is of good quality. This is very important to us. In all the areas that we work in, we maintain a close relationship with our farmers, and work to advance their social and financial sustainability. Our processing is also done in very good facilities, so that the product is hygienically packed, and is pure.

What is it that makes Jivana more appealing to consumers?

Jivana products appeal to the customers as they are of good quality, come in attractive packaging and at a competitive price. These factors ensure consumer trials and repeat purchase for Jivana products.

Which consumer segments and demographics are your products targeted at?

Our target group is decision makers for grocery purchases in Indian homes. In 98% of households, this target group comprises women. We started with branded sugar and salt, and have recently launched turmeric. Since these are the most basic food items in every kitchen, the opportunity for growth is limitless. We aim to be the favoured brand of foods in most if not all Indian kitchens. In recent times, SEC A, B & C homes are seeing an active shift from loose to packaged/branded products and this segment is going to grow exponentially. We are targeting this consumer household. Placements have been done in stores catering to these kinds of homes in metros, mini-metros and class I towns across a few states.

What is the retail presence of your brand in these product categories? 

Jivana is present in general & kirana stores across the states of Maharashtra, Gujarat, Rajasthan, and Karnataka across metros and mini metros and a few class I towns.

What is the consumption pattern, growth rate and market size for your product categories?

Jivana sugar was launched in January 2015, followed by Jivana salt in April 2015. We have seen very encouraging response for a new brand. We have recently been nominated as one of the fastest growing brands of 2015. Turmeric was launched in January 2016.

Sugar sells the most as consumption is the highest. The branded sugar space has few large players and a very large loose sugar market open for capturing. Salt, though a challenging product due to very low costs/margins, is also an amazing product category. Jivana salt has seen good growth as it competes well on price with the market leader TATA and several regional brands across the target cities. An increase in sales will make it more cost effective.

How do you see the demand for these products in the future?

Branded retail foods/ staples is a sector that is going to grow leaps and bounds in the coming years. Consumers are choosing better & safer food options for their homes. Th is translates to choosing packaged/ branded foods over loose. Like water, atta, oil, etc., most commodities will switch to being branded in the next few years. We expect good growth for Jivana sugar and salt, and are also confident about expanding into the spices category.

How do you see the growth trends for your products in urban versus rural areas? 

We are a new brand. The major markets to start with for any new brand would be ones that can bring in the volumes. We have started with metros, mini metros and class I towns and have seen good growth there. Our smaller SKUs are seeing good response in smaller towns too. Our plan is to have a systematic growth plan for both urban and rural areas.

What are your plans for strengthening the market share and consumer reach of your products?

Our promise is “purity in foods”. The aim is to provide good quality foods for Indian homes and that will remain our primary focus. Jivana Foods would be synonyms with purity, quality and consistency at all times. To strengthen market share and reach, aggressive placements are the first step followed by a clever marketing plan, as also relationship building with our channel partners and retailers. All these together will ensure our sustained growth.

Which are important factors for the retail pick up of products?

Good quality of products, aggressive placements, right price and effective promotions/ retail schemes will ensure that Jivana is purchased repeatedly.

What is your strategy for retail outreach?

Jivana comes from The Somaiya Group, a company known for its honesty, strong values and a will to uplift the community. Our strategy is simple – to make and retail foods that we want our country to eat and flourish with. Basic foods like sugar, salt and spices are bought from the neighbouring grocer so it is very important to be present there. The sheer number of retail/ kirana outlets bring in the volumes and reach. Visibility in modern retail is also important, so being present in the Big Bazaars, D-Marts and Reliance stores, etc., is also imperative. We believe that good quality products are the first stepping stone to building sales, followed by aggressive placements, good promotions for the retailers as well as consumers.

As a young brand, what do you think will be the challenges in distribution?

Price sensitive commodity brands, despite having a good distribution, can be quickly replaced by competitive brands. Th e challenge in distribution is to be present on the retail shelf each time. Distribution is cost intensive and there is high attrition in sales, which can be minimised by creating volumes and a good incentive structure.

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Godavari Biorefineries Ltd. launches ‘Jivana Turmeric’

Godavari Biorefineries Ltd. has entered the spices category under its food brand ‘Jivana’.Godavari Biorefineries Ltd. launches Jivana Turmeric after their successful foray with Jivana Classic Sugar, and Jivana Refined Iodised Salt.

Jivana turmeric is hygienic, pure, and rich in colour, flavor and texture with freshness intact.It stimulates protein digestion, and is an excellent blood purifier. The packages are available in 50gms, 100gms, 200gmsto cater to the demands of various segments. It will be available in Maharashtra, Gujarat, Rajasthan and Karnataka.The turmeric is finely packed in high quality packaging material such that it maintains its freshness and nutritional value.
Jivana turmeric is manufactured and packed in Bisnal Village, Bagalkot

Speaking on the launch`Jivana Turmeric', “Mr. Samir Somaiya,CMD Godavari Biorefineries, said the company has come out with two productsJivana Sugar, andJivana refined iodised salt which are the two most basic ingredients used by the Indian housewives in their cooking.The company has gained valuable experience in the foods segment after the launch of `Jivana Salt and Jivana Sugar' and the entry into spices segment was a natural extension of the foray into the market”

About Godavari Biorefineries Ltd
Godavari Biorefineries Ltd is one of India’s leading and sustainable company producing sugar, other foods, biofuels, chemicals, power, compost, waxes, and related products, using sugarcane as the primary feedstock. Our aim is to engage in research and innovate by continuously making new products and entering new markets in order to derive the maximum value from our feedstock. Our research areas include sustainable farming, transformation of biomass (chemical, mechanical and biological), product development, and process optimization. Founded in 1939, we have been pioneers in the growing, processing, and utilization of biomass to make a wide variety of products.

We are now working on the next generation bagasse-based bio refinery and also the biotransformation of sugar to biopolymers.

For more information, email at: consumercare@somaiya.com or call on: 022-61702111
For more information, please visit: www.somaiya.com

For media queries: aarohancommunications2@gmail.com
Tel: Meera: 9821156976/ Shirin: 9769229595

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61st ANNUAL GET-TOGETHER OF ISCMA

The Indian Speciality Chemicals Manufacturer’ Association (ISCMA) organised its 61^st Annual get-together on 10^th October 2015 at Mumbai, attended by the industry captains, invitees, members and media.

Speaking at the event, Mr. Deepak Bhimani, President, ISCMA, said reforms like cut in the base rate of interest has now started and the roll-out of GST would hopefully be effective by April 2016. He stressed the need for the chemical industry to innovate continuously to avoid obsolescence, and leverage the low average monthly wages, which at about $407 are far below $10,210 in a typical pharma industry in the USA. He stressed the relevance of solar energy, enzymes, catalysts and fermentation technology, etc.

Infrastructure development

Mr. Samir Somaiya, Guest of Honour and Chairman & Managing Director, Godavari Biorefineries Ltd. (GBL), spoke on innovation and sustainability to maximize profits. GBL, which derives feedstock from sugarcane farmers, ensures that all stake-holders, work in sustainable, collaborative partnerships.

The company is involved in making commodity chemicals like sugar, ethanol & ethanol-based chemicals, including ethyl acetate, and renewable power. “Knowledge should be a key differentiator,” he observed, in the transformation of biomass – physically, chemically and biologically. Instead of burning bagasse to generate power, the company is currently involved in a process to physically transform the bio-resource into cellulose, upgrade it, and convert into cellulose derivatives and micro-crystalline cellulose. Recently the company has put up two aldehyde plants, and the products find markets globally in the fragrance & flavor and cosmetic industries.

GBL is also investigating the possibility of making solvents and bio-degradable biopolymers from renewable resources. “These are opportunities because the world is struggling with waste,” Mr. Somaiya noted, adding that it is possible to innovate only if one is tenacious and goes after an idea relentlessly.

He also addressed the importance of the social bottom line – the “earn and give” philosophy of the group’s Founder through the creation of educational and healthcare institutions.

For more information, please visit: www.somaiya.com

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Sustainability Yeilds Sweet Success

BASIC ECONOMICS TEACHES that companies exist to maximize their profits. Godavari Biorefineries, an Indian producer of sugar, ethanol, and biobased chemicals, didn’t get that memo. Its managers appear focused as much on philanthropy and sustainability as they are on generating a financial surplus every year.

It’s an unconventional approach that is working for the firm. Sales at the 76-year-old company have risen steadily from $160 million in 2010 to $202 million last year, according to a recent financial report. Investors seem to like what they see. Godavari succeeded in securing a $15 million cash injection last month from a private equity fund.

Godavari is an unusual company. On the one hand, it does business in the standard way of producing price-competitive materials at large, integrated complexes. On the other hand, it funds medical services and the education of young people in the communities where it operates and also lends money to farmers that supply it with sugarcane.

“We have a strong sense of social mission that started with my grandfather, who was born poor,” says Samir Somaiya, Godavari’s third-generation chairman and managing director. “We take a very long-term perspective to business.”

The company was founded in 1939, when the elder Somaiya, after enjoying some success as a sugar trader, decided to start up his own sugar mill. In the decades that followed, Godavari’s business thrived, partly because it was protected by Indian import tariffs. When his grandson Samir Somaiya joined the company, those tariffs were in the process of being dismantled. The company had to close plants, a trauma that has guided Somaiya’s decision-making ever since.

“I decided to never rely again on tariff protection,” Samir Somaiya says. He went further than that, reorganizing the business so success doesn’t depend on any specific set of conditions. “We don’t want to be vulnerable to any technology, any one process, any customer,” Somaiya says.

India is a major sugar exporter, and Godavari is one of India’s major sugar refiners. Under Somaiya, a basic tenet has been to extract more value out of sugarcane farming. Starting with sugarcane, Godavari refines sugar, ferments ethanol, and derives an ever-expanding range of biochemicals. From plantation waste, it extracts energy at cogeneration plants that are integrated with its mills and chemical plants.

Ethanol is Godavari’s starting point for a family of downstream chemicals. It converts ethanol into acetaldehyde and then acetic acid. From there it produces derivatives such as ethyl acetate, crotonaldehyde, 1,3-butanediol, and flavor and fragrance ingredients. The company calls itself one of the world’s top 10 producers of ethyl acetate, and it exports more than two-thirds of the chemicals it makes. With the launch of new biochemicals and the commissioning of more power generation capacity this year, the company expects its sales to surge by 25% to $250 million.

IT’S UNUSUAL for a major biobased chemical maker to emerge from the sugar business, according to Sarah Hickingbottom, business development manager for oleo- and biochemicals at LMC International, a consulting firm based in Oxford, England. Most biochemical firms own a specific technology they use to produce chemicals from purchased feedstock. Or they are chemical companies that modify a petrochemical process to use a biobased feedstock instead.

But as the biobased chemical business matures, access to competitive feedstock may win the day, Hickingbottom predicts. Production processes in this relatively new business will eventually become standardized. When that happens, having access to cheap raw materials will be key.

As a major sugar exporter, India is advantaged, Hickingbottom says. But the country’s output varies from year to year, she notes. In poor harvest years, companies that maintain close relations with local sugarcane growers will likely be in a better position to secure raw materials. In that context, it’s possible that Godavari’s philanthropic bent may help the company businesswise, even if that wasn’t the point. Paul S. Zorner, an American member of Godavari’s board who has worked at and advised dozens of biobased fuel and chemical companies, notes that the firm helps fund the studies of thousands of young people in the communities where it operates. Godavari also loans money, when the need arises, to the 20,000 or so farming families that supply it with sugarcane.

According to Somaiya, several family foundations that he chairs pay for the education of 35,000 students in communities where Godavari operates. They also fund a 500-bed hospital and a rural health center.

Zorner first met Somaiya at a conference on sugar in South Africa. He has now been on Godavari’s board for seven years because the two men share similar ideas about how to extract value from sugar. The company’s manufacturing operations are highly efficient, Zorner claims. “Godavari’s plants have a very good scale and are well engineered both chemically and mechanically,” he says. “The only thing that is wasted is CO2, really.” Godavari was able to achieve this efficiency thanks to India’s abundance of engineering talent, he adds.

IN FACT, the company’s biobased chemicals are produced so efficiently that they compete pricewise against identical products obtained from petrochemical sources. There was a time when companies expected to receive a premium for renewably sourced chemicals, but according to Zorner, it’s a rare case when that happens.

Even without a price premium, at least one investor sees opportunity in Godavari’s focus on products from renewable sources. The Mauritius-based private equity fund Mandala Capital last month agreed to inject $15 million in Godavari. The cash will help to support product development and pay for a new specialty chemical plant. Mandala didn’t respond to a request for comment for this article, but in an earlier statement, the firm said it endorsed Godavari’s strategy of getting more value from sugar.

The academic world also sees value in Godavari’s approach. Somaiya teaches a one-month chemical engineering course on biorefining every two years at Cornell University. More broadly, Zorner says, Godavari can serve as an inspiration to the many parts of the world that have strong agricultural sectors but little industry. “It just shows what you can accomplish with the sun, water, and some manpower.”

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