Germany-based Henkel is one of the leading solution providers for adhesives, sealants and functional coatings worldwide. With sectors such as auto, packaging, aviation, construction, etc booming, the demand for adhesives is expected to increase manifold. Henkel sees India as a market with high growth potential and intends create opportunities through innovative solutions that cut across different industry verticals, says Shilip Kumar, Country President – India, Henkel. The Government’s Make in India initiative is expected to give further fillip to the sector, placing India on the world map as a manufacturing hub. In this interaction with Rakesh Rao, Shilip Kumar explains unlimited possibilities with adhesives and the company’s growth for the country.

Could you please brief us about Henkel’s adhesives business?

In India, Henkel had two legal entities; namely, Henkel Adhesives Technologies India Pvt Ltd (a wholly owned subsidiary of Henkel) and Henkel Anand India Private Limited (a joint venture company with the Anand Group).

Henkel in India operates in two business areas - adhesive technologies and beauty care, both in the business-to-business domain. Headquartered at Navi Mumbai, Henkel has 8 manufacturing sites, 3 technical centers, a flexible packaging academy, an innovation center and 5 Schwarzkopf Academies.

Henkel is a leading solution provider for adhesives, sealants and functional coatings worldwide. In India, our powerful innovations and leading technologies under top-brands, such as Loctite, Bonderite, Technomelt, Teroson and Aquence, create sustainable value for our industrial customers.

The adhesive business in India is divided into 4 strategic business units, each focused on customers in select industries.

Packaging and Consumer Goods business develops innovative and sustainable solutions for articles such as packaged food and beverages, diapers and hygiene products, plasters and bandages, clothes, shoes & furniture.

Transport and Metal business provides customers in the automotive, aerospace, and metal processing industries with outstanding system solutions, a comprehensive technology portfolio, and specialised technical services.

General Industry business is a leading supplier of state-of-the-art industrial adhesives & sealants and high-performance coatings to a variety of industrial markets for assembly and maintenance, repair & overhaul.

Electronics business offers customers from the electronics industry a specialised portfolio of innovative high-technology adhesives and materials for the manufacture of microchips, electronic assemblies and thermal management systems.

How is the demand for your various adhesives and sealants brands in India?

India holds an important position for Henkel. It is one of the key countries contributing to company’s growth. Our adhesives, sealants and functional coatings are being used in almost every sector including renewable energy, automotive, construction, packaging and healthcare, among many others.

We see India as a market with high growth potential, and as market leaders we intend to take on the challenge of converting the latent potential into actual market sales. As a company, we are determined to grow double digit every year. We will do this by creating opportunities in the markets through innovative solutions that cut across different industry verticals. When we talk of market, we include both the existing market as well as the latent untapped market, which can be tapped into with innovative solutions that could replace existing products. The challenge here is to translate such opportunities into actual sales. The replacing or reducing mechanical fastening with liquid adhesives is just one such example.

In industrial adhesives space, what are your offerings?

Henkel offers a comprehensive portfolio of tailor-made solutions for our industrial customers across various industries. Our experts partner with customers to deliver best-in-class service. Our powerful innovations and leading technologies under top-brands such as Loctite create sustainable value for our customers.

With its extensive range of products and system solutions, Henkel is a key partner in the development, manufacture and maintenance of vehicles and transportation systems. The automotive industry, manufacturers of trains and trams, and the shipbuilding and aerospace sectors all benefit from Henkel’s high-performance adhesives and sealants.

Henkel also makes an important contribution to safety, comfort and value retention. Components made of highly rigid structural foams absorb impact energy in the event of a crash (improved safety); innovative sound-deadening materials improve vehicle acoustics (more comfort); and special pretreatment systems for car bodies optimise corrosion protection and paint adhesion. At the same time, Henkel’s know-how helps customers to conserve environmental resources and increase the efficiency of their production processes.

Every industrial assembly application carries its own set of challenges. Factors such as adhesive raw materials selection, temperature resistance, viscosity and curing time must be reviewed. Regardless of the industry, Henkel adhesives are designed to solve problems, provide consistent, reliable performance and surpass customer expectations. Henkel adhesives are at home on every type of machine, and cover almost every possible chemistry for a variety of products and industries such as protection wear, construction industry, furniture industry, shoe (footwear) industry, among others.

Modern product packages need to fulfill two functions: protect the content and sell the product. Henkel offers expert knowledge and innovative adhesives that are used in a wide range of industries. In addition to a full portfolio of adhesive solutions for different packaging applications we also offer related services from on-site support to special customer trainings. We partner with our customers right from the start, so that we understand their needs and develop tailored solutions.

What is driving the demand for industrial adhesives in India?

The market for industrial adhesives (and sealants/ functional coatings) is growing rapidly in India at a rate slightly higher than the GDP.

Demand is being driven by the rapid urbanisation as well as the growth in the middle class in India. As we move from food being sold without any packaging to food being packed in flexible & rigid packaging, the demand for adhesives used in packaging increase. As demand for consumer durables increases, the requirement of special grades of steel (functional coatings used in steel), pre-treatment required on steel, industrial assembly adhesives as well as MRO solutions for manufacturing sites increases. As demand for automobiles increases, the requirement of adhesives, sealants and functional coatings used in the paint, body & assembly shop increases. The increase in the population of cars also results in increased opportunities in repair and maintenance. These are just a few examples of the drivers for the growth in demand of Industrial adhesives, sealants and functional coatings in India.

What are your growth plans for industrial adhesives business?

India holds a strategic position for Henkel as part of the company’s long-term growth strategy both as a domestic market and a base to serve other international markets. Our biggest focus areas are strengthening Henkel India’s manufacturing and innovation footprints in the country as well enhancing product development resources. We have already made an investment of $ 36 million to set up the first phase of India’s largest manufacturing unit for adhesive, sealant and surface treatment products at Kurkumbh near Pune. This plant will enable us to localise our product portfolio and reduce imports while bringing the best global technology to India. We have also set up a flexible packaging academy at Thane and an innovation center at Pune.

These investments bear testimony to our commitment to the Indian market. The Innovation Centre at Pune is yet another step to provide an integrated one-stop for adhesive technologies, testing facilities, dispensing systems and application training.

We see India as a high potential market, with adhesives being used in almost every sector including manufacturing, renewable energy, auto, aviation, construction, FMCG and healthcare among many others. India’s manufacturing sector has the potential to account for 25% of the country’s GDP by 2025. The government’s Make in India initiative has further given a boost to the sector, placing India on the world map as a manufacturing hub. With increased investments in innovative solutions and leading technologies, we see great opportunity across different industry verticals. Henkel plans to consolidate its position as the largest industrial adhesive manufacturer in India.