Forbes Asia - October 2018

OCTOBER 2018 FORBES ASIA | 69

even as he studied commerce as an

undergrad. He also worked on many a

shop floor.

In 1991 the extended Bangur family

split and his branch got the electrodes

business, among others. Another

prominent Bangur clan, led by patriarch

Benu Gopal Bangur (No. 22) of Shree

Cement, inherited the cement unit

Post-split, a partnership with Great

Lakes Carbon of the U.S. dating to

the 1 960s unraveled. “We were only a

domestic player until then and were not

even equipped to produce high-grade

electrodes,” recalls Bangur. “We had to

change the product mix, go into new

markets and build market share.”

His father’s death in 1994 propelled

him into the hot seat at age 34. “I be-

came head of the family too early in my

life—but such is life,” he says. (He has

an older sister who is not involved in

the business.)

Graphite India as it is now was

formed in 2001 through the merger of

two companies. Bangur slowly built

up and in 2004 took over a German

electrode-making company in bank-

ruptcy and turned it around.

To further his business interests

Bangur took permanent residency in

Singapore in 201 2, joining a grow-

ing tribe of Indian tycoons who have

sought such dual credentials (see

box, opposite). “We may be looking

at global opportunities, and it will be

easier to raise capital internationally,”

he says.

For all his instinctive caution, the

veteran of a long-volatile sector sees

new light. “his change is quite diferent

from past changes,” Bangur says. “I am

convinced that this is here to stay.”

for graphite electrodes to tumble and
prices to halve. As factories across the
globe started to shut, 20% of global
capacity (excluding China) was wiped
out. he industry started consolidating,
and in that shue Graphite India,
which used to be the ith-largest player,
moved to No. 3.
While the rest of the industry bled,
Graphite India continued to make prof-
its because it wasn’t saddled with debt.
he company sells more than half its
volume in India but also exports to the
U.S., Europe, the Mideast and Southeast
Asia. “We’ve never made a loss in our
entire history,” notes Bangur. He even
added 20,000 tons of capacity at a plant
in We s t Bengal at a cost of $43 million
in 201 4.
Indian rival HEG—now the fourth-
largest player in the world—was also
hit by the downturn and sufered losses
in iscal 2016 (for the irst time in 39
years) and iscal 201 7. But the Delhi
company has since recovered to make
net proits of $ 166 million for iscal
201 8. (HEG’s chairman and manag-
ing director Ravi Jhunjhunwala also

debuts on the India 100 at No. 99 with a

fortune of $ 1. 5 billion.)

Even though graphite electrodes are

being used in lower-polluting plants,

there are environmental concerns about

the components’ factories themselves.

In September, residents near Graphite

India’s Bengaluru plant protested

against air emissions and the Karnataka

state pollution control board conducted

an inspection. A report is awaited from

the board’s chief. he board had issued

a closure order in 201 2, which the

company contested in an appeals court.

It won, but the residents appealed to

the National Green Tr ibu nal (for cases

relating to environmental protection)

and the matter is pending.

Scalability is also a question. he lim-

iting factor is access to the key raw mate-

rial, needle coke, which is made from

crude and is sourced from a clutch of

manufacturers in the U.S. and Japan. he

limited supply is also subject to diversion

to lithium-ion battery makers.

So Bangur is looking at diversifying

beyond graphite electrodes into value-

added graphite and carbon products.

In September he agreed to buy a 46%

stake in Graphene Corp. of the U.S. for

up to $ 1 8.6 million in cash. Graphene

is a carbon-based product that could be

used in everything from touchscreens

to energy storage and aerospace. “It’s a

new idea,” says Bangur. “If it develops

well it can become another Graphite

India. But it has many years to go.”

Bangur’s life in business goes back

to 1976 when he turned 1 6. A fifth-

generation scion of a storied family

that was into everything from jute to

real estate, he got an early introduction

to different businesses from his elders F

Bangur’s father’s death in 1994

propelled him into the hot seat at age 34.

“I became head of the family too early

in my life—but such is life.”

SECTOR BREAKDOWN
THE ASIA-PACIFIC REGION NOW
COMMANDS MORE THAN A THIRD OF
THE GLOBAL GRAPHITE-ELECTRODE
CAPACITY.

FIGURES ARE FOR 2017, EXCLUDING CHINA.
SOURCES: BLOOMBERG; MACQUARIE RESEARCH.

EUROPE

30%

AMERICA

25%

INDIA

20%

JAPAN

14%

RUSSIA

%

MALAYSIA

4%