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Interaction | October 2015

Emerging markets were the main growth drivers for Henkel

Pradhyumna Ingle, Business Director - General Industry, Henkel Adhesives Technologies India Pvt Ltd.

Could you tell us about your company and the line of products you manufacture? Henkel is a global market leader in adhesives, sealants and surface treatments for consumers, craftsmen and industrial applications. This 138-year-old company is now spread across 120 nations, with 50,000 employees, 170 manufacturing locations and 10 R&D sites. In 2014, Henkel had sales revenue of €16.4 billion, out of which adhesive technologies accounted for €8.1 billion.

Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG & Co. KGaA, Germany. Our adhesive products-from anaerobic adhesives, cyanoacrylate adhesives, silicone sealants, polymer composites, solvent based, solvent free to cold seal laminating adhesives used in flexible packaging industry-provide solutions for a whole spectrum of applications. Our solutions are used in diverse segments ranging from manufacturing, electronics, automotive, aerospace to biomedical industries. We partner customers to help them improve their productivity, profitability and sustainability. Through our unique value proposition of market know-how, worldwide capabilities and broad scope of technology offerings, we hold leading market positions in both the consumer and industrial business segments. Henkel has a wide portfolio of adhesives, sealants and specialty coatings that have been specifically designed to meet the requirement of a large variety of industrial needs.

Kindly share with us some of the work that you do specifically in the power sector.
We have numerous solutions for repair and maintenance in Power plants. Some of the key applications are threadlocking, threadsealing, surface rebuild and repair, and protective coatings for equipment and structure against wear and corrosion. To give an example, a power plant in India was facing the issue of corrosion in their heat exchangers. Tube sheets in heat exchangers that faces process water, had corroded heavily and a scale had built up on the sheets. A heat exchanger has two or more metals used in its construction, and combined with the surrounding environment, especially water, bi-metallic corrosion of the internal structure is inevitable. Prolonged corrosion can deplete the metal, and the cost of repair is extremely high. In some cases, replacement of the entire equipment may be the only remaining option.

The customer, in this case, was looking for a solution that could eliminate the buildup of scale and loss of metal due to corrosion. Henkel offered Loctite PC 7319 Chemical Resistant Coating as a solution to this problem. Loctite PC 7319 Chemical Resistant Coating is designed to protect equipment against extreme corrosion caused by chemical exposure.

In addition to the product, Henkel also offered application services to ensure complete adherence to best practices for product application. The heat exchanger was drained and all surfaces were cleaned by abrasive blasting and scraping. Corrosion and scale residues were removed and the metal was cleaned with solvent. Loctite PC 7319 Chemical Resistant Coating was applied on all internal heat exchanger surfaces. After 16 hours of curing time, the system was returned to service. It has been two years since the above application was completed. The coating shows little sign of wear, further corrosion has stopped and no new scale build up has occurred. We can share similar examples of satisfied customers who were able to protect their assets by trusting in Henkel´s superior products and services.

How has the growth of the company been over the years? What are your plans to take it to the next level?
Henkel has continued to grow its business profitably, more importantly sustainably, over the last few years. In recent years, we have further strengthened our leading position in the market. 2014 was a successful year for Henkel. In a challenging and very competitive market environment, we achieved our financial targets and made very good progress in implementing our strategy 2016. All our business units contributed with profitable organic growth to our good performance. The emerging markets were the main growth drivers for Henkel, with very strong organic sales growth of almost 8 per cent.

To support our strong organic growth, we continue to introduce innovative solutions in new markets and technology segments. Thus, we have a very strong focus on R&D. We strive to improve the conventional methods of equipment assembly, maintenance and repair with solutions that can help our customers save costs, while increasing the productivity and reliability of their products. The Henkel India Innovation Centre at Pune puts at customer´s disposal an integrated one stop offering of adhesive technologies, testing facilities, dispensing systems and application training. This means we can devise the adhesive solution, develop an optimal application procedure and demonstrate the assembly performance under simulated work condition, all under one roof with minimum expenditure of the customer´s time and resources. Networked with Henkel´s advance technical facilities globally, the Innovation Centre offers a wealth of expertise and resources.

Are there any new products that have been or will be launched soon? Tell us about them.
Our vision at Henkel is to be a global leader with our brands and technologies. Innovations are the basis for successfully turning this vision into reality. Henkel pioneered anaerobic adhesives in the 1950s and year after year, we have been launching new innovative solutions for our customers, which is evident from our innovation rate of 30 per cent.

For the Power segment, we have had very successful product and technology launches. I would like to highlight two of our recent innovations for this segment. Loctite® PC 7000 High Temperature Abrasion Resistant Coating is designed to increase the life of coal tip nozzles by upto two times, increase the efficiency and reduce costs of maintenance and replacement. It is a unique three-component rapid setting silica-based composite coating system, designed to protect industrial processing equipment such as coal tip burners in boilers and furnaces against harsh temperature and abrasion environment. Loctite® PC 7000 HTARC is designed for use on baffle plates of coal burner tips, aluminum and steel smelters, flue gas ducts, coal burner pipes and refractory brick structure of chimneys and kilns. The product has established significant savings for our customers by increasing the life of coal burner tips with no damage to the component itself.

Loctite® PC 9340 High Temperature Chemical Resistant Coating is a two-component product that is designed specifically to combat problems of corrosion and abrasion in industrial equipment. The product has a dry film temperature of 210°C; thereby, it is resistant to chemical attacks even at elevated temperatures and cures at room temperature. This product has been very successful in the market and has been widely adopted by the power sector in India. Loctite PC 9340 HTCRC can be used in pumps, heat exchangers, structure coating and tank exteriors, but is not limited to these.

Could you tell us a bit more specifically about your brands?
We have five Technology Cluster Brands:
LOCTITE® is the trusted choice for engineered, high performance adhesives, sealants and coating solutions.
BONDERITE® is the premier brand for surface technology and process solutions that creates competitive advantage across the industrial manufacturing marketplace.
TECHNOMELT® is the leading choice for hotmelt adhesives that deliver best results in our customers´ production processes and finished products.
TEROSON® is the driving brand for bonding, sealing, coating and reinforcing in automotive body, vehicle repair and maintenance and industrial applications.
AQUENCE® is the brand for innovative, sustainable, water based adhesive solutions.

How do you assess the market scenario in India? What impact do you think the new government policies or changing market conditions will have on your organisation?
India is a large market for various products and services with young and skilled workforce and qualified engineers. Moreover, with the current government focusing on providing a boost to the nation´s manufacturing capabilities, it will enable global companies like Henkel to bring cutting-edge technologies and expertise to India. Our recent investments in India highlight Henkel´s strategy and commitment to further accelerate its growth in the country. With the new Kurkumbh plant, we will be expanding our production capacity in one of the fastest growing emerging markets. It will strengthen the confidence of our customers and suppliers in Henkel as a committed partner. The plant will also create a new industry benchmark as the largest adhesive manufacturing base in India. Producing in the region for the region, the new site will enable us to grow even faster.

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