Balaji Chem is steering the paper industry toward a pragmatic, self-sustaining business model. In an exclusive interaction with Paper Mart, Mr. Navneet Singh Kaushal, Director of Balaji Chem Solutions, shared that the company is installing in-house chemical production facilities at paper manufacturers’ premises to make the paper manufacturers self-sustainable. He further revealed that Balaji Chem is introducing a new starch colloidal retention technology to effectively control starch circulation within the paper-making process.
Paper Mart: Please tell us about your participation here at Paperex 2025.
Navneet Singh Kaushal: Driven by the strong and encouraging response from our clients in Paperex 2022 and 2023, we are participating again this year, to meet industry leaders, technology partners, technical experts, professionals, and investors that come together to create meaningful business opportunities, new ventures, and the introduction of advanced technologies.
We are participating with a clear vision: promoting a self-sustaining paper industry model. We have already implemented this model successfully in one of the paper mills, demonstrating its potential and impact, and plans to expand this model in multifolds. We believe paper manufacturers should build their own chemical plants using modern technologies which will enable higher profitability, better quality control, and the ability to create tailor-made products, driving the industry’s transformation toward a self-sustaining model. We are proud to be part of this collective growth journey and are committed to contributing to the advancement of the paper industry.
Watch: Top Paper Companies 2023
PM: What are your latest innovations in speciality chemicals and additives catering the pulp and paper industry? Who are your key clients in the paper industry?
NSK: The major new solution that we are introducing to the Indian paper industry is our BANILOC technology. This is a cutting-edge, globally proven technology that has not yet been adopted in the Indian paper industry.
We are focusing on this innovation because it enables mills to control starch circulation within their system and create ‘wealth out of waste’. Today, most paper mills use starch, but a significant portion of it continues to circulate without being retained. This not only results in material wastage but also affects product quality and several operational parameters.
Mills outside India have already implemented technologies to control this issue, but within India, there is still a significant gap. We are coming up with this new technology that can help control this parameter and unlock substantial benefits for the mills. Our key clients include Satia Industries, Shreyans Industries, Khanna Papers, star paper mill, BILT along with many other Indian and overseas companies.
We are installing in-house chemical production facilities at the premises of paper manufacturers. We have already established the first such plant at Satia Industries, and have 3-4 additional projects planned for 2026-27.
PM: How do your specialty chemicals help address the specific challenges (such as fiber degradation and odour) faced by the paper industry and improve the overall papermaking processes?
NSK: One of the key advantages of the BANILOC Technology followed by an odor control program that has ability to address the root cause of odour issues in paper mills. Odour primarily arises from microbial activity, and the main food source for these organisms in the paper-making process is starch.
When mills lose control over starch circulation, they unintentionally feed these organisms, leading to a host of problems which ultimately increases the operational costs. If we can retain and control this colloidal starch, we can significantly reduce these issues.
Today, everyone in the industry talks about retention and drainage packages, but beyond that, there has been no major technological advancement. This is where our innovation comes in. We are introducing a new concept—colloidal retention. With the new technology, we can control the dissolved chemicals present in the paper-making system, including the colloidal starch that currently escapes conventional retention systems. With this technology, we can help mills overcome multiple challenges—whether related to odour, economic challenges, drainage, or retention. This is the critical gap we are addressing with our specialty chemical solution, and it is the main area where we aim to bring transformation to the paper industry.
We are buying a significant portion of raw materials, especially those used for specialty chemicals, from countries like China, Korea, Thailand, and Malaysia. India currently lacks sufficient domestic production of many key chemicals. However, this scenario is beginning to change. India is now moving toward manufacturing several of these essential raw materials, which will be a major advantage for the domestic industry.
PM: What is the current status of the specialty chemical market, especially in the paper industry ? How do you foresee its future?
NSK: The market today is showing an interesting trend. It is expanding, and at the same time contracting. In terms of specialty raw material, we are buying a significant portion of it from countries like China, Korea, Thailand, and Malaysia. India currently lacks sufficient domestic production of many key chemicals. However, this scenario is beginning to change as the country is moving toward manufacturing several of these essential raw materials indigenously. Until recently, specialty chemicals were primarily controlled by multinational European companies. Now, this technology is gradually becoming accessible to Indian mills. We are working to bring these technologies directly to the paper mills so they can benefit from them and eventually produce many of their specialty chemicals on-site.
Once mills gain this capability, their economic performance will improve significantly. Stronger economics will lead to better profitability, and with a self-sustaining model, Indian mills will be in a strong position to compete globally.
It is time for the entire industry to support the idea of producing chemicals within India. More production facilities should be established here, and for this Indian companies must invest in the right technologies to manufacture these chemicals domestically. By embracing the ‘Make-in-India’ initiative, we can strengthen our industry, reduce dependency on imports, and drive sustainable, long-term growth for the Indian paper sector.
PM: How do you plan to transition from import dependence for raw materials to building strong indigenous manufacturing capabilities in the specialty chemicals sector?
NSK: When we import raw materials from countries such as Korea and China, our objective is not merely to purchase the product but to adopt their technology and manufacturing processes so that India can fully benefit from the associated value creation and economic gains. Our focus is on building strong domestic capabilities rather than fostering long-term dependency on foreign suppliers. We have already initiated this effort, and by 2030, we aim to scale it significantly across the industry.
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PM: How do you ensure a one-stop solution for paper mills in the speciality chemical segment?
NSK: There was a long value chain in specialty chemicals, starting from raw material sourcing to manufacturing, distribution, and finally delivery of products to the paper mill. Our objective is to shorten this chain and supply products directly to the Indian paper industry.
One way of achieving this is that we are installing in-house chemical production facilities at the premises of paper manufacturers. We have already established the first such plant at Satia Industries, and we have 3-4 additional projects planned for 2026-27.
Additionally, earlier mills depended on foreign suppliers for automated chemical manufacturing systems, which significantly increased costs. We have now integrated automation into our own in-house installation model. Our goal is to develop a one-stop solution for the paper industry, combining automation, in-house chemical production, and raw material support under a single platform.
This approach drastically reduces the time required to address mill challenges. What previously took months or even a year to resolve can now be addressed within weeks, enabling faster decision-making, quicker optimisation, and better operational control for the mills.
Indian companies must invest in the right technologies to manufacture these chemicals domestically. By embracing the Make in India initiative, we can strengthen our industry, reduce dependency on imports, and drive sustainable, long-term growth for the Indian paper sector.
