Graphene Nanochem (GNC) CEO Jespal Singh Deol describes the implications of its debt re-structuring and future plans for the company
Graphene Nanochem, the nanotechnology company, recently announced its plans to rationalise the business and restructure its short term debt. Speaking in an exclusive interview with Oil Review Africa, the company Deol said that the successful implementation of the debt restructuring plan is expected to significantly reduce the group’s debt balance and interest rate expense, which will have a positive impact of strengthening the group’s balance sheet. This will further allow them to utilise the operating cash flows in the near term for advancement of the recalibrated business plan rather than repayment of debt and focus on available resources and growth strategies.
“With the repayments mapped against the recalibrated business plan of the group this will enable us to realign the business portfolio to focus on solid, higher margin and longer term opportunities in oilfield chemicals and water treatment solutions,” he said.
Deol explained that the use of nanoprocesses and nanomaterials to enhance the performance of its products sets Graphene Nanochem apart from competitors. He said that their products work faster, allowing for HTHP operations without the need for expensive additives.
Future plans
Deol revealed, “GNC goes to market through a partnership-based model. We partner with global supply chain giants that control access to markets and enable our products to form part of the integrated offerings that are provided by them.”
He added that with current joint ventures providing market access in 23 countries and 67 locations globally, GNC will continue this strategy by crystallising partnerships with market leaders in industries outside oil and gas, including the water treatment sector.
The African market
“The African market is a compelling value opportunity. The requirements for energy and clean water are very large as many parts of Africa represent an underserved market place,” according to Deol.
The CEO pointed out that GNC is already in North Africa with presence in Egypt, Algeria along with Nigeria and DR Congo and now through their partnership strategy they intended to consolidate their presence in South Africa and Mozambique by the end of 2016.
Latest products
Graphene Nanochem’s latest products in the market include Graph Solve and Plat Clean.
Graph Solve is a product that enables onsite treatment of cuttings and negate the need for transportation of solids for disposal lowering the cost of waste management overall for the customers. Plat Clean enables chemical-free alternatives to current treatment methods for disinfection of drilling water.
