“Epsilon has a customer base spanning 22 countries and is dedicated to providing innovative and high-quality carbon products”, Saiprasad Jadhav, Group CEO, Epsilon Carbon

Saiprasad Jadhav looks after the overall business operations of the Group. He has around three decades of experience, more than a decade in an entrepreneurial career. During his tenure of entrepreneurship, he had run two manufacturing facilities for Fluorine-based speciality chemicals & active pharma ingredients and pharma formulations, respectively.

In his association with Epsilon, Saiprasad Jadhav has been instrumental in setting-up greenfield capacity for the Carbon Black business with a capacity of 115,000 TPA & has been mentoring the management team for the subsidiary company, Epsilon Advanced Material Private Limited in establishing Anode material business. Prior to joining Epsilon Carbon, he was associated with Deepak Nitrite Ltd as President – Fine & Speciality Division.

AlCircle: Could you share the journey of Epsilon Carbon from its days of inception? What was the story behind starting Epsilon Carbon and becoming India's leading coal tar derivatives manufacturer?

Saiprasad Jadhav: Epsilon Carbon Pvt Ltd was established in 2010 and is a leading manufacturer of coal tar derivatives. Our 320,000 TPA manufacturing capacity makes us a partner of choice for some of India's biggest names in aluminium, carbon black, tyres and mechanical rubber goods, graphite, speciality and construction chemicals, dyes and pigments, and other sectors.

Epsilon's story began with creating a value chain for a carbon derivatives market from a by-product of steel plants. We ensure sustainability at every stage of our production process using cutting-edge technologies, our state-of-the-art ZLD manufacturing facilities, greater use of renewable and waste resources for energy and compliance with global norms resulting in stakeholders' trust in us. Within a short timeframe, Epsilon became one of the largest global exporters of solid coal tar pitch (solid CTP). We are now the preferred domestic supplier for the aluminium industry, with a market share of around 40%.

Epsilon has a customer base spanning 22 countries and is dedicated to providing innovative and high-quality carbon products. We are committed to being a responsible care company. We are proud to be rated Silver by EcoVadis in 2022 for our sustainability practices within a short period from the start of operations. Our vision is to be a leading provider of quality carbon products. Our mission is to support global industries with a reliable supply of quality carbon products that are sourced using environmentally friendly practices.

We have ISO certifications such as – 9001 for QMS, 14001 for EMS, 45001 for OH&SMS, and 50001 for Energy Management Systems. These certifications help build credibility for our product quality, process, and safe operations. Also, we are certified by IATF 16949:2016 – Automotive QMS, ISO/IEC 17025:2017, ISO 27001:2013 - Information Security Management System, and ISO 28000: 2022 – Supply Chain Security Management which highlights our approach to data credibility and integrity.

AlCircle: What are the sectors Epsilon Carbon caters to for its carbon products? Which sectors in India Epsilon Carbon's products are mostly adopted and why?

Saiprasad Jadhav: At Epsilon, we cater our products to Aluminium, Anode for Lithium-ion Batteries, Graphite, Tyre, Dyes & Pigments, Automobile, and Construction sectors. In India, our product has a 40% market share in the Aluminium segment (CT Pitch) due to our consistent supplies, better quality, excellent customer service, and best industry standards in manufacturing, supply chain, and quality. Our commitment to quality, rigorous safety standards and practices, ethical governance standards and industry-certified processes sets us apart.

Our company’s sustainable business growth is driven by quality and commitment. Our raw material security helps us with an uninterrupted and monitored supply of inputs. We believe in using sustainable production means and ensuring zero discharge at the facility. Our manufacturing facilities are strategically located to leverage supply chain advantage and service our customers seamlessly.

AlCircle: What percentage of Epsilon Carbon's production is absorbed in the aluminium sector? Kindly detail us with the supply of the product.

Saiprasad Jadhav: Epsilon's 45% production is absorbed in the aluminium sector. The main product we supply to the aluminium industry is coal tar pitch, and we have a well-established supply chain to ensure uninterrupted supply per customers' requirements.

AlCircle: How has Epsilon Carbon's supply to the aluminium industry changed the dynamics of the Indian aluminium sector? Who are your major consumers in the Indian aluminium sphere?

Saiprasad Jadhav: As the second most consumed metal, aluminium is called the “metal of the future”. India was a net importer of CT Pitch before Epsilon. After Epsilon started supplying the country with the product, the import dependency was removed, and India became a net exporter. Our major customers are the key players in the Indian aluminium industry.

AlCircle: How would you rate your company's performance for FY22-23? What major areas will you invest in in the next financial year?

Saiprasad Jadhav: We made great strides in FY23 by becoming a leading organization in exports of solid CT Pitch globally.

Next fiscal year, we focus on creating India's first 'liquid CT Pitch port' for exports. With these efforts, we estimate to export around 3 Lakh MT in the next 5 years.

Additionally, we're investing heavily in R&D, digitalization, and sustainability initiatives. With the projected growth of the aluminium industry and the reduction of CT Pitch availability from China, we're planning for organic growth. We're setting up a 500 KTPA Coal Tar distillation plant at a second location in India and preparing for speciality chemicals facilities.

AlCircle: What are the sustainable measures Epsilon Carbon, as an organization, has taken?

Saiprasad Jadhav: We constantly integrate sustainability into our design & operations, and the concept of circularity has been designed to ensure minimum wastage and emissions across the manufacturing facility. Our governance principles guide us to consider the environment while making business decisions.

Our second sustainability report was published in December of 2022 and was based on the Global Reporting Initiative (GRI) Standard. We have developed a green belt with 47,500 trees to help minimize air pollution. We are continuously optimizing our operations and usage of non-renewable utilities like water and power, as evident from our consumption trends of utilities per metric tonne year-on-year basis. 

Our company is committed to sustainable business growth, providing a secure source of captive raw materials and long-term contracts. Additionally, our products reduce emissions by using cleaner fuels, low Sulphur feedstocks, and zero discharge. Our 100% backwards integrated process of manufacturing products and using captive feedstock from our operations testify to circularity.

Gas generated during our process generates steam and electricity in our Captive Power Plant. This helps us reduce our carbon footprint significantly, to the extent that our product Carbon Black has nearly 20% lesser footprint than our domestic peer industries. Also, our value-added product, synthetic graphite for Anode material, has almost 77% less CO2 footprint than China. 

Our CSR and CER goals are aligned with the United Nations' SDGs for Good Health & well-being. We have supported the elderly, Covid-19 care, specially-abled people, and hospitals. Over 4 Lakh lives have benefited in the last 4 years. Quality Education is another goal we are passionate about; we have upgraded teaching & learning facilities in 4 Direct Impact Zone villages and developed model libraries, which have helped more than 5000 students.

Further, we are working to support animal welfare trusts and restore ecological balance through afforestation and wildlife conservation. We have also contributed to women's empowerment, sports development, village street lighting, livelihood programs, relief funds, solid waste management programs, and many other initiatives. We are a Responsible Care logo holder and EcoVadis -Silver Rated company. Many rating agencies well recognize our efforts towards sustainability.

We are preparing for SA 8000 certification, an international certification standard that encourages organizations to develop, maintain and apply socially acceptable practices in the workplace.

AlCircle: How do you envision the global aluminium industry for 2023?

Saiprasad Jadhav: Global aluminium demand will likely rise in 2023 due to China’s economic recovery and relaxation in its Covid policies, with consumption expected to grow by 4.7 per cent. Aluminium demand in emerging nations like India with good economic growth prospects is expected to increase during 2023. Rising demand for the product in the automotive and transportation industry is one of the key drivers to surge market development.