The Flosil Group, with interests in areas including oil and gas equipment and services, has drawn up plans to expand and become a multinational.
The strategy will be to adopt a combination of routes to spread its presence within and outside the country, Arun Rathod, CEO of the over Rs 300 crore group, told Moneycontrol.
As many nations increasingly take up a local manufacturing strategy following the Covid-19 outbreak, Flosil plans to also pursue overseas joint ventures in its quest to become a significant global entity in the oil and gas segment.
As part of the exercise, the Chennai-based, family-owned group has decided to deepen its focus on four areas – gaskets, fasteners, innovative coatings and cleaning products.
Key to the strategy is Goodrich Gasket, which the group acquired in 1997. Fully owned by the family, Goodrich Gasket had a significant presence globally, with about 30 distribution points internationally, Rathod said. Almost a third of the group’s revenue comes from Goodrich Gasket.
Rathod indicated that Goodrich Gasket could get into automobile gaskets, which would be a game-changer for the group, although he did not reveal when the entry into this segment would take place.
The group plans to increase the gasket business to a significant level over the next three to four years and then contemplate an initial public offering.
The other focus area would be fasteners. The group has an equal joint venture with an Indian partner in Goodrich Fasteners, which has set up a facility on a 15,000 square foot plot near Chennai. Catering primarily to process industries, Goodrich had landed good orders from the US, he said.
The group will rely on Flosil-Bet, a 50:50 joint venture with a Malaysian company that makes industrial coatings and cleaning products for the other aspect of its expansion plan.
The venture makes innovative coating formulations that protect a wide range of substrates and enhance aesthetics. It fetched revenue of Rs 35-40 crore, Rathod said.
Rathod said the new way of doing business in the changed context post Covid-19 offered significant scope for the group to explore joint ventures and reconfigure the business model into an integrated one.“Customers are ready to accept new technology and innovation to cut costs,” he said. Flosil is gearing up to cash in on the emerging new environment, Rathod said.