Traditionally characterized by complex processes, the chemicals and petrochemicals industry is undergoing a profound transformation driven by digitalization and automation. The smart digital technologies are reshaping the landscape, offering unprecedented opportunities for efficiency, safety, and innovation. 

Industry experts recently brainstormed on the need for leveraging digital technologies to enhance their capabilities at the 4th edition of NextGen Chemical and Petrochemical Summit 2024 organized by the Indian Chemical News in Mumbai on July 11-12, 2024.  

The third session, ‘Digitalization & Automation: Transforming Landscape’ was moderated by Pravin Prashant, Executive Editor, Indian Chemical News. 

“There is a five pronged ABCDE strategy that we follow as an industry. Firstly, it is the Artificial Intelligence (AI) that has become a fundamental part of our businesses, not just Generative AI but the traditional AI that has been experimented with to enhance safety and reliability.  Second is the Business Model where the chemical companies are looking at enhancing operational excellence including e-commerce, circularity, green products are a few examples. Third is Cybersecurity that has become more accentuated post Covid in terms of priority. Similarly, cloud strategy by now has become hybrid cloud strategy to see what works best for your organization rather than following a blanket approach. The fourth is the data and with data privacy regulations, it becomes very important,” said Namrita Mahindro, Chief Digital Officer, Aditya Birla Chemicals.

 Talking about the fifth strategy, Mahindro highlighted the growing awareness on the data pricing regulations and ESG. "Companies are spending on technology platforms and taking part in COEs for capacity building. At the same time, the perception of the government is changing, the recent examples being data privacy law and ESG regulations." 

“Indian Oil started with many workshops and 49 case studies were identified. We have 512 initiatives now and we saved Rs 1,000 crore over five years since 2020. Earlier yield optimization went up to 92% from 62% in the Mathura refinery. The cost optimization is Rs 58 crore in three months which later went to RS 92 crore in the later quarter. The same model has been implemented in other plants. Likewise, the customization has happened in business development within the petrochemicals division. We saved Rs 114 crore for FY 23-24. For the LPG and gas division, we have implemented many initiatives. Earlier, there was a lag as the user was not applying the knowledge in the plant. With digitalization, the knowledge is getting applied and the savings are enormous. The idea that has worked in PSUs must also be emulated at a broader scale. One of the projects is the Mathura refinery's implementation of private 5G (by BSNL) to detect the LPG leakages to prevent unnecessary shutdown. Second project involves an R&D group for implementing solar power  to generate green hydrogen. This can help in saving thousands of crores of rupees annually,” said Nagendra Pratap Singh, General Manager, Strategic Information Systems, Indian Oil Corporation. 

“AI is not just a buzzword but a reality and if you look at every dimension, be it manufacturing, operations, supply chain or procurement where it is used to drive efficiency. The driver for AI adoption is to improve the sustainability, reduce the cost, bringing in operational efficiency and competitive advantage. In terms of supply chain efficiency, I can share two examples. The demand forecasting was always a pain-point but now using AI models is helping by using the data from marketing, past sales history etc, the forecast has improved and also the cost. IoT devices to monitor the real time movement of raw materials and finished goods. It helps the supply chain personnel to optimize the schedule and maintain the environmental conditions so that customers can get benefits. The robotic process automation and use of AI in procurement are helping and there are many use cases available in this space,” said Krishnakumar Pandey, Assistant Vice President – IT, Epsilon Carbon. 

Dr Pratap Nair, Founder, President & CEO, Ingenero Technologies emphasized the unlimited potential of digital tools and Artificial Intelligence in bringing in higher reliability and better optimization of processes. “We started deploying technologies in 2015 and the tendencies that we have seen earlier is that players get carried away. Identifying the use cases and applying the technologies to achieve the set objectives takes time but if the companies would just go by purely technology driven implementations without assessment, it would not lead to much value. Being careful during the digital implementation is very important.” 

Roshansingh Navlur, Vice President, India & SEA, Cadmatic Software Solutions said, “To overcome the challenges and move from traditional approaches, we as digital technology providers have to bring out the best technologies, tools and expertise to empower industry. This is especially when we are competing with European countries and China. IoT and AI-ML based solutions can Augmented Reality and Virtual Reality. We design the entire plant and customers can walk into the vacant places to match the expectations and whether any modifications are required. The 3D technology allows a lot of simulations and allows you to put all the parameters and make the right decisions for better processes and meet regulatory norms. We have a proven track record across the industries.” 

Ranjan Chatterjee, Head Business Strategy, Forbes Marshall said, “The chemicals and petrochemicals industry has been grappling with cost pressures, environmental pressures and thin margins. To tackle it in a way, the improvement of energy efficiency and process efficiency could help a lot. We identify the gaps and take curative actions for the customers. With the advent of digitalization, we are using digital tools to do things in better ways. On the thermal side, when we are using the digital tools, we see huge additional benefits. We see a saving potential of 10-15% but when we apply the tools, we see it enhancing up to 25%, This is because when we monitor the KPIs in real time around energy efficiency, distribution, and process utilization, the potential is bigger as compared to traditional approaches.” 

Jigyasa Kishore, Vice President, Moglix, “There is a growing shift from offline to online. AI based solution where the sales negotiations are happening online and  not just chat boxes. Supplier audit is not a one time thing but an ongoing process and becoming stringent at the level of ESG. Generative AI has become challenging but the implementation requires patience. We have to stay invested in it and there are a lot of opportunities for the chemicals and petrochemicals industry going forward.” 

While challenges remain, the potential rewards make it imperative for industry players to embrace these advancements. As the industry continues to evolve, those who successfully navigate the digital transformation journey will be well-positioned to lead in a competitive and rapidly changing global market. The future of chemicals and petrochemicals is digital, and the time to act is now. 

The Summit was supported by DCM Shriram Chemicals as principal partner, Somaiya Vidyavihar University as academia partner, Cadmatic as platinum partner and Andhra Pradesh Economic Development Board (APEDB), Govt. of Andhra Pradesh as state partner.

Gold partners for NextGen Chemicals & Petrochemicals were Epsilon Carbon, Forbes Marshall, Gharda Chemicals, Indofil Industries, Ingenero, IPCO, Jaaji Technologies, Moglix, PIP, Port of Antwerp - Bruges, RIECO and Re Sustainability. Associate Partners are: HPCL and Nuberg EPC.

Supporting partners included Aarayaa Advisory Services, Archroma, India Glycols and Tata Steel Special Economic Zone and industry association partners are: ACFI, AMAI, CropLife India, Gujarat Chemical Association and PMFAI.