Sika Pakistan started its operations in 2010 at the 100th anniversary of Sika world-wide. With the aim to become number one construction chemical company in Pakistan, Sika Pakistan opened its head office in Lahore with regional offices in Karachi, Islamabad and Faisalabad. Simultaneously, Sika Pakistan also launched a small manufacturing facility in Lahore during the first year of the start of operations in Pakistan to facilitate its customer needs. Following are the edited excerpts of a conversation with Mr. Naveed Chaudhry.
BR Research: Tell us about yourself and your organisation?
Naveed Chaudhry: I have been heading this company since its inception in Pakistan in 2010. Before Sika, I was working in AkzoNobel Pakistan, which at that point in time was ICI Pakistan. Sika Global is a 100 year old company with a much diversified history of working in all the five continents of the world. At present, we have our own offices in more than 92 countries and 160 manufacturing facilities across the world. This company is the backbone of the modern construction and chemical being used around the world. The global group has been awarded the Sustainability Construction Chemical Award by the United Nations; it is also part of US Green Building Council, and SIka Pakistan is part of Pakistan Green Building Council.
In the five years of the operations in Pakistan, we have been trying to establish the company with offices in Lahore, Karachi and Islamabad. And now we are planning to set up our own automated factory, which is going to be in Sundur Industrial Estate. It is for the same reason that we got into contact with Punjab Government; we have finalised the deal, and the factory will be completed in about a year's time.
BRR: What is your view of the market we have in Pakistan, and what kind of solutions do you offer?
NC: In terms of talent, Pakistan has very good local and foreign qualified professionals and engineers. However, it is the chemical knowledge that is lacking, which has been due to the absence of big companies in the sector, making people unaware of this technology.
Sika operates in seven target market fields, specialising in a range of low end to high end products in each. Concrete is one. For example in concrete, we manufacture first generation admixture, which is generally used in Pakistan, as well as third generation admixture based on the strength and structure requirements. Due to complex strength requirements, we are the main construction solution provider for the Orange Line being constructed in the country.
The other segments are waterproofing, roofing, ceiling and bonding, refurbishment, and Industry. Each of these segments have a diversified range of product range starting from very basic to complex and hi-tech structures where we can collaborate with consultants and contractors to build things.
Also, our product range is for both the domestic and industrial users. In our distribution division, we brought the concept of knowhow from site to shelf as the evolution of our product started from site all the way through to the domestic users. We have two divisions: B2B deals with institutional sales where we work with contracting companies, consultants, architects etc, while the B2C deals with our 162 franchise retail shops that stock our products.
Here our target is not just product placement; we work very hard to educate the shopkeepers about our products. As I said, 162 retail outlets are supporting our products, and the idea is to increase these shops to 1000 in the next two years. Our ultimate goal is to transform the country to start using good chemicals, and we do that very effectively world-wide.
Along similar lines, we are planning to conduct educational seminars in universities with some initial training and knowhow disseminated to the students. For this we are thinking of collaborating with the country's civil engineering institutes.
BRR: What is the size of the global company, and how is Sika Pakistan doing?
NC: We are a growing company where every year is a growth year for us. We have a team of over 16,000 employees world-wide. We are in a pretty good shape. Our revenues are plus five billion Swiss Francs; we are a profitable company, and we are expanding. We feel Pakistan is an excellent market with more than 180 million people.
Our products are for both the low end customers and high end customers. And with improving per capita income and standard of living in the country, the demand for good quality products is increasing. For example, our tile adhesive comes in the lowest economical range, and interestingly it turned out to be the highest quality tile adhesive in Pakistan. Today, we are getting repeat orders to an extent that we are unable to fulfil the demand. That is why we are coming up with our own state-of-the-art factory in the country.
Here I would like to share some interesting facts about the firm: 80 percent of the company's activities are into construction, while 20 percent are in industry; World-wide, 50 percent of the vehicles are manufactured using Sika products like sealants, adhesives etc.
BRR: The world is moving towards energy efficiency. How is Sika contributing there?
NC: As I mentioned earlier, we are part of US Green Building Council; the council has an agenda of constructing building that are green, energy efficient, and are environmental friendly. The technology that Sika Global has for roofing reduces the energy requirement in all-weather conditions. This is just one product in one category; we have many solutions where our focus is primarily energy conservation.
BRR: Tell us more about the plant?
NC: It is a four million Swiss Francs investment that includes the plant, land, and the prefabricated constructed building. It is a fully automated powder mixing plant which will be producing our powder products like adhesive and grouts. Its capacity is 10,000 tons per shift. Initially we will be starting with one-shift operations, which will eventually move to three shifts in the years to come. In addition to this, we will be setting up an acrylic production plant and an admixture plant as well; it will eventually be a set of three plants under the same facility.
However, this is not all; we will not only be blending, but there will be a complete transfer of technology to us in a step by step process. We have over 500 products globally; and whatever is demanded in the country, that technology will be transferred to Sika Pakistan. We also will have a separate R&D centre at the facility.
BRR: What are some of the projects where Sika products have been used?
NC: You name any construction activity, and we have a product for it. We have worked for Coca Cola Beverages Pakistan for strengthening of concrete beams. We have provided Duber Hydroelectric Plant with swell able water bars and concrete grouting admixtures. We have also provided sealant and bonding solutions for concrete at Fauji Fertiliser Bin Qasim, Rawalpindi. Our chemicals have been used in the rehabilitation of Jinnah Barrage in Mianwali. Our roof waterproofing technology has been used at Kohinoor Maple Leaf Group, Lahore. We are a provider of concrete admixtures and grouts at Emporium Mall under construction by Nishat Group.