JSC NAPOR – 30 years in the Russian petrochemical industry

An interview with Natalia Ivanova, CEO of JSC NAPOR, originally published in the business outlet RBC. The article details the company’s history, the principles guiding its scientific and technological development, the specifics of its production model, and its strategic growth objectives. The interview highlights the continuity of the scientific tradition established by the company’s founder—Doctor of Chemical Sciences Ilya Matveevich Shermergorn—as well as current management priorities: modernizing business processes, expanding the product line, and strengthening the company’s position in the oilfield chemicals market.

The company was founded by Ilya Matveyevich Shermergorn, a distinguished Soviet and Russian chemical engineer and Doctor of Chemical Sciences. His scientific achievements include over 70 patents. Among them are unique developments for protecting oilfield equipment against corrosion and biological degradation—solutions that remain in demand within the industry to this day.

Despite a difficult life path—marked by being orphaned and his family suffering under political repressions—my grandfather managed to build a company based on professional independence and innovative developments that had long failed to gain support from the Soviet bureaucracy. After the collapse of the USSR, society had little regard for science, so my grandfather decided to strike out on his own. He gathered a team of highly skilled specialists and co-founded a joint-stock company named "NAPOR." However, his wife became his most important partner in developing the business.

The company was able to make a name for itself in the emerging market thanks to Ilya Matveyevich’s reputation. As a respected scientist, he enjoyed the trust of numerous oil companies and professional associations. He was granted access to conduct field trials and secured product supply contracts of steadily increasing volume. However, Ilya Matveyevich soon focused on his true passion: research and development. I remember him sitting for hours at a fold-down table, chain-smoking and filling sheets of paper with chemical formulas. In addition to this, he managed office operations—what we would today call setting up business processes. My grandmother handled sales; she spent a great deal of time traveling to various enterprises to demonstrate product samples and negotiate supply deals—painstaking work in an era before modern communication tools. After Ilya Matveyevich passed away in 1993, she took the helm and led the company for 32 years.

Our company has never owned its own production facilities. In the early 2000s, the company attempted to establish its own manufacturing operations. JSC NAPOR purchased a site intended for production, but it soon emerged that a residential development was planned nearby, making it impossible to build a plant there due to environmental regulations. It became clear that it was far simpler and more cost-effective to lease capacity at existing plants that already possessed the necessary equipment for manufacturing our chemical reagents. There are many such plants in Tatarstan and the surrounding regions. All that is required is to sign a contract for contract manufacturing using supplied raw materials, and operations can begin immediately. If a partner plant closes or difficulties arise, the company simply finds a new partner and continues operations without disruption.

Until recently, about 90% of JSC NAPOR’s products were manufactured using Russian raw materials—simply because no other option was available when the company first started out. The situation later became more complex as numerous new companies entered the market, purchasing concentrates from abroad, diluting them with methanol, and selling them under their own brands. Although domestic raw material production declined as a result, the company still managed to secure the necessary supplies. Over time, JSC NAPOR began slightly adjusting the composition of its raw materials to better align with new oil extraction and processing technologies. I believe that now—with the import of foreign equivalents having virtually ceased—the Russian raw material base will see active development, driven by a powerful incentive.

This move did not come as a surprise to me; I have been familiar with our business since childhood. As a child, I often spent time at the production facility and viewed the staff as part of the family—we celebrated all important occasions and holidays together. I always realized that I might one day lead JSC NAPOR, and when that moment arrived, I was ready for it.
First, I hold a degree in economics from the Plekhanov Russian University of Economics; in fact, the subject of my thesis was the operations of our company itself.

Second, I was intimately familiar with the team, the products, and all internal processes. Third, by that time, I already had successful entrepreneurial experience: I had founded an online school that helps people master modern, in-demand professions and develop financial literacy. Today, that project is actively growing, with a digital HR platform being built upon its foundation. However, it no longer requires my constant personal involvement, allowing me to dedicate myself fully to managing JSC NAPOR.

Over the past three decades, the company has enjoyed steady growth. This success has been driven by products in high demand within the petrochemical industry, superior quality rooted in scientific R&D and years of experience, and enduring partnerships—with most of our contracts spanning several years. A key indicator of this stability is that, throughout its entire history, JSC NAPOR has never operated at a loss nor relied on long-term loans.

Admittedly, the company has experienced stagnation in recent years; while we maintained our market position, we failed to increase our market share. Further growth required modernizing specific areas of the business, yet my grandmother—who served as CEO—was resistant to innovation. Out of respect for her, no changes were implemented at the time. However, there was no critical need to do so; our working capital was sufficient to maintain stable operations, fund R&D, procure raw materials, and pay salaries.

Today, we are actively revamping our business processes: integrating marketing strategies, strengthening our team, and revitalizing the sales department. I personally visit industrial facilities, build connections, and explore partnership opportunities—ranging from joint production ventures to participation in major tenders. Our primary goal is to expand our client base and achieve sustainable revenue growth for JSC NAPOR.

Today, the company holds over thirty patents, forming the basis for the annual production of tens of thousands of tons of product. Nevertheless, I plan to expand our product range.

The fact is that products manufactured over the last 20–30 years using domestic raw materials can no longer drive dynamic sales growth. Their production costs have become too high; consequently, the final price is nearly double that of competitors' offerings, making it difficult to win tenders.

We currently have several new products in development that are more cost-effective to manufacture yet highly efficient. One such innovation is "ALCID," a multi-action inhibitor designed to protect oilfield equipment. It is a versatile product with several key properties: it completely suppresses the growth of all types of bacteria—including the most harmful sulfate-reducing bacteria—provides reliable corrosion protection in environments containing hydrogen sulfide and carbon dioxide, and reduces the viscosity of oilfield fluids—all at low dosage rates.
At the same time, we are not abandoning our traditional product line, as it continues to demonstrate high effectiveness. We simply plan to introduce it to new clients gradually—only after a partnership has already been established.

But the most important thing—just as it was for my grandfather—is not merely business expansion or profit growth. I remain committed to the company’s mission: strengthening the Russian petrochemical industry and contributing to the country's technological sovereignty.