In conversation with Ashwin Muthiah, Founder & Chairman, AM International

As we conclude another year, Ashwin Muthiah, Founder & Chairman, AM International, reflects on the evolving business landscape. He shares how the US$ 2 billion diversified multinational entity, headquartered in Singapore is overcoming challenges with resilience.

Here are edited excerpts:

As the year ends, tell us about the journey and achievements across AM International businesses?

AM: With a legacy rooted in trust, AM International businesses have consistently demonstrated resilience in the face of market challenges. This trust stems from building businesses that are not only financially robust but also trusted by society. It is this ethos that guides our commitment to meeting customer needs and enduring difficulties with integrity.

During the year, a testament to this is our ability to sustain the sales contraction amidst the impact of cheap imports to India and a general market slowdown. Particularly in the petrochemicals sector, where external pressures like high energy prices were pronounced, our resilience prevailed. The fertilizer business, buoyed by consistent demand and adept management of raw material price fluctuations, achieved stability during turbulent times. Customer centricity and greener product solutions were the key goals that we achieved despite a tough macro-economic scenario.

A pivotal ability for us is weathering the revenue pressures by aligning our strengths: agile cost optimisation and operational efficiency enhancements.

Fundamentally, this stems from our belief that in the face of challenges, it is not the obstacle itself but our response and resilience to it that defines success.

2. How do you see companies navigating the future in an increasingly uncertain global environment?

AM: Today, businesses need to recognise that geopolitical conflicts are likely to persist, rendering uncertainty as the new normal. As leaders, we must embody rigour, resourcefulness and resilience to navigate this ever-changing global landscape. Amidst the surprises it brings, our ability to remain steady is a testament to our strategic discernment.

In the current environment, it is imperative that we maintain focus and make well-informed decisions. Our strategy for the long-term involves not only navigating uncertainties but also proactively engaging in cost optimization and strategic investments that enhance our value chain.

Ensuring stability and fostering growth in the face of unexpected disruptions arising from geopolitical conflicts is paramount. This hinges on our strategic investments especially in brownfield expansions and opportunistic M&A’s, a commitment to a diverse and talented workforce, and prudence in financial decisions. With this approach, we are well-positioned to navigate our businesses through challenges, embracing opportunities, and ensuring sustainable growth.

3. Across AM International businesses, Environmental, Social, and Governance (ESG) & diversity were key focus areas during the year. Tell us about the larger philosophy towards environment-friendly manufacturing, greener products and talent?

AM: The environment, societal impact and stakeholder trust are at the core of our philosophy. We have been strategically investing in environmentally conscious manufacturing, aligning with our customers' net-zero ambitions. While the primary benefits resonate with the planet, our ESG commitment reinforces our customers' agendas, particularly for multinational partners. An eco-friendly product program is crucial for strengthening long-term partnerships.

For example, Tuticorin Alkali Chemicals and Fertilizers Limited (TFL) produced the world’s first green soda ash. Southern Petrochemical Industries Corporation Limited (SPIC) has moved towards natural gas as a raw material source. Manali Petrochemicals Limited (MPL) implemented carbon capture technology. These instances demonstrate that our commitment to a circular economy remains firm. Balancing the cost of green investments against returns is critical. Hence, prudent optimisation of production costs and selling prices is essential.

Recognising the integral role of society in business is imperative, especially towards making it more equitable. Our CSR arm, AM Foundation, focuses on primary healthcare, sanitation, and wellness and well-being for communities. It helps us prioritise societal well-being for a harmonious coexistence of our plants and people living around them. During the year we contributed to the progress and development of local communities, especially, around our manufacturing plants.

Good governance, a key aspect for stakeholders, may not be visible with an immediate financial impact. But it influences the standing and credibility of our businesses in the long-term. Diversity is equally pivotal. It brings varied strengths and perspectives. At the same time, equal opportunities with meritocracy at the core, underscore our commitment to efficiency and gender parity.

4. AM Foundation has implemented quite a few measures during the year, in the areas of sanitation, healthcare, and education awareness. Tell us about the ethos driving the foundation’s goals.

AM: For us, primary healthcare is a significant priority with limitless potential. Our focus is on grassroots-level initiatives which present substantial opportunities for creating a meaningful impact.

A good primary healthcare system not only has immediate benefits to individuals but reduces the burden on hospitals, government agencies, and the broader healthcare system over the long term. Upgrading and building new infrastructure, especially sanitation facilities for young girls and boys in government schools and co-opting sanitation workers, is making a genuine difference to the overall education environment

5. How do you see the year 2024 unfolding?

AM: In 2024, I see AM International businesses continue their journey with a focus on growth, sustainability and profitability. Our priority will be on capacity expansion and modernisation through strategic brownfield expansions. Our approach to mergers and acquisitions will be discerning and will augment the value of our core businesses, both within India and internationally. In parallel, the emphasis will be on the development of key leadership and managerial personnel, and capabilities to foster innovation, agility and growth.

Dedicated investments will be directed towards the optimisation of costs, adoption of green technology, and adherence to ESG practices. These endeavours will span both the fertilizer and petrochemicals sectors, reinforcing practices for sustainable and responsible business growth. Overall, our approach will remain firmly grounded in our ethos, built on societal trust.