Chronicles of a steady rise to top

He said, “Back then too, it was the crème de la crème (of those championing the cause of industrial development) who participated in laying the foundation of the company that was testing uncharted territories.” Sankar highlighted the difficult infancy following the birth of the company on ‘4.5.67.’ The joint venture with BF Goodrich, a major manufacturer of PVC (Poly Vinyl Chlorine used for industrial purposes), was forged after long-winding negotiations. 

Sankar recollected that thereafter too, luck seemed to elude the company, which faced a catastrophic shutdown of its Mettur plant due to corrosion and crash of PVC price by 50 per cent. “It had to go through the regular global economic cycles and commodity pricing issues. Superimposed on this were the domestic problems such as 100 per cent power shutdown, campaigns against plastic use, sudden drop of duties and political turbulence. But surmounting all these challenges, Chemplast registered a gradual and steady growth.” 

He also acknowledged the contribution of co-creators in this huge business enterprise. Starting as a small company with 6,000 tonnes per annum capacity, Chemplast has now diversified into hydrogen peroxide, laying down the path for executing projects such as expansion of suspension PVC to 1 million tonnes annually and doubling paste resin capacity. 

The company has a proud 70-yearlink with the TVS group, and Venu Srinivasan, the Chairman, TVS Motor, who is a close confidante of Sankar. Sankar also recollected the valuable associations of Cabot Corporation (whose CEO Sean Keohane came from Boston) and supplier Supreme Industries (represented by MP Taparia, MD). On the research  front, Chemplast has tied up with IIT Madras to kick-start a research lab on Zero Liquid Discharge, for which a sum of Rs 1 crore was handed over to Bhaskar Ramamurthy, Director, IIT-M. 

Sankar also touched upon Prem Watsa, the Indian-origin Canadian investor heading Fairfax, who he refers to as a true friend. Their funding connection ($300 mn for a 30 per cent stake) had been forged on values, integrity and principles aimed at further enhancing Sanmar’s reputation. 

Watsa was guided by the ‘reputation is more important than profits’ philosophy of the Sanmar Group. He expressed his pride in associating with the company whose values mattered most for a stakeholder like him. 

His firm Fairfax (acronym for fair, friendly acquisitions) founded after he completed 13 years in Canada, in 1985, has invested $5 billion over 20 years of their many associations in India (Thomas Cook, Sanmar, ICICI Lombard). Despite the long presence, it is the Modi regime that has the Hyderabad-born and IIT-Madras bred Watsa upbeat about investing in India. The reason: the transformative stance taken by the PM. “His business-friendly policies, his ability to weed out corruption at the top (ministerial and administrative levels) and his intent of working for the country and not personal gains,” made the investor draw Modi’s comparisons to Singapore’s late PM Lee Kuan Yew. 

Though he is happy to meet young entrepreneurs such as the Ola promoter, it is an entrepreneur’s track record that inspires him to put his money on. “We are investing for long-term and backing honest people. We believe in principle-based investments,” he said. On the country’s development agenda, Watsa’s response was “in 1982, the economy of India and China were at the same level. Today, China is at $11 trillion, whereas India is $2 trillion. But under Modi, it will grow substantially,” is how he signed off.