Italy’s Unicol S.r.l. has opened its India subsidiary with a joint venture for its adhesive technologies and woodworking products. Its President, Alex Fattorini, responds to Dhananjay Sardeshpande’s what, why and where. Excerpts:

Alex Fattorini, President of Unicol Adhesive Technologies, has some unusual takes on strategy, goal setting and enterprise value.

Welcome to India, Alex! What brings Unicol to open an India subsidiary?

India is a burgeoning economy; it has a vast skilled workforce; the market has untapped potential; and the business culture is changing for the better – it is turning more professional. The opportunities are everywhere. What more would I want!

To give you perspective, the adhesives sector worldwide is growing. The focus is now on performance and sustainability, where we are already ahead in many respects. As of now we operate in more than 40 countries. Apart from plants in Italy we have a production facility in Poland also.

Can you explain the arrangements of your new venture?

We have a joint venture with (Mumbai-based) Total Tools & Equipment, in which we found a safe, capable and experienced partner. They already have an extensive network and deep penetration in the Indian market – both at the OEM level and among the carpenter fraternity.

Our relation is a well-established and mature one. The chemistry between the stakeholders and teams is healthy. What is more, the Total Tools team is very enthusiastic, professional and dedicated to achieving goals.

Our first step would be to set standards for quality, consistency and reliability in the way our team handles Unicol’s product range in India. Plans and goals are being fixed for the next 4 years.

All our gains will be invested in our India operations. In time, Unicol might expand its product offerings to other materials. If things go well, I am not averse to the idea of setting up production facilities in India!

What is the range of Unicol’s adhesives globally?

Our share of our solutions for woodworking is a tad under 50%. We also have products for stone, glass, textiles, paper, leather and many special applications.

What is Unicol offering in India?

At the moment, we are focussed on the woodworking sector. We have EVA and HMPUR hot-melts, urea resins, PUR dispersions, liquid release agents and vinyl glues. These find applications in lamination of composite and insulation panels, edge banding, profile wrapping, parquet production and assembly, veneer making, joining curved panels and 3D vacuum pressing.

What is Unicol’s legacy?

Unicol began production in 1977, largely as a supplier to other brands in Italy. My father was shareholder (27%), but he was not actively involved in the management of the company. The management model was wrong, with many shareholders, differing views and business goals, which led to a crisis in 2008. There was talk of selling Unicol to bigger competitors.

In 2016, my sister and I – we both have other, profitable businesses – stepped in to set things in order. With our father we bought out the shares of the whole company, concerning trademarks, machinery and other infrastructure, retained our scientists and workforce. I chalked out a 4-year plan for Unicol’s revival. The main asset of Unicol were, are and will be Unicol people. They really make the difference!

Unicol operates in more than 40 countries. It has a production facility in Poland also.

Can you tell me more about your 4-year plans?

When my sister and I stepped in, we had a strategy to achieve certain goals by 2020: push the best resources to strengthen production of wood adhesives to 50% of our capacity, the other sectors accounting for the remaining output. We also aimed to manufacture 50% for domestic consumption, and the other 50% for exports. And we did it!

In my second 4-year plan (until 2024), we focussed on securing steady streams of revenue. We set up a new plant in Poland, opened Unicol North America – it is already cash-positive. We invested in more machinery and technological assets in Italy.

Could you tell us more about innovation at Unicol?

Our strength is our scientists and workforce: they are highly skilled in their respective professions. We seek out the best that academia and industry can offer. The head of our R&D division is 32 years old.

Our laboratory is an open book: all our customers and suppliers are welcome. They are encouraged to have us address their challenges. We also have scientists from large multi-national companies visiting it and collaborating. 

What is your philosophy about running a successful business?

Through my experience in my several other businesses I have learnt that a company must run independent of its owners. The first line of professional managers should be insulated from interference from owners and shareholders. I believe we should empower stakeholders – employees, suppliers and distributors – rather than shareholders.

How do you ensure growth?

We have a mix of technical and commercial approach to growth. We invest all our gains in R&D for innovation, upgrading machinery and adopting automation. We also opened the new plant in Poland recently, to cater to rising industry demands starting part of our production there.

But what about shareholder dividends, including you and your sister?

You see, we may not immediately benefit from our growing business. That said, we are now sitting on the legacy of a growing company with an expanding footprint across the world. I’m sure that, since I took over, Unicol’s enterprise value has multiplied at least 20 times. That should suffice to keep us happy for now!

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