June 30, 2025

Godavari Biorefineries, one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India, has a diversified product portfolio. The portfolio comprises of bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol and power. The company is the largest manufacturer of MPO worldwide and the fourth largest manufacturer of ethyl acetate in India, and the only company in India to produce bio ethyl acetate. Samir Somaiya, Chairman and Managing Director, Godavari Biorefineries, talks about the emerging market scenario as well as his company’s expansion plan…

Q. Biorefineries have gained significant attention in the quest for sustainable and renewable energy sources. How does Godavari Biorefineries contribute to the development and production of sustainable bio-based products?      

A. The world continues to rely on fossil resources to meet its needs.  If you take the example of energy, about 85 per cent of the world’s energy needs are met from coal, oil and gas.  Countries such as Norway consume over 100,000 kwhr per person, China consumes 30,000 kwhr per capita and India is still at 8,000 khwhr per capita.  As India develops, its energy consumption will increase.  It is important that this growth comes along with renewable resources so that we can grow and mitigate climate change at the same time, ensuring the sustainability of the planet.  

Godavari Biorefineries is a company that is demonstrating this transition to the use of renewable resources.  Godavari converts agricultural feedstock physically, chemically and biologically into food, fuel, chemicals and materials. Innovation is the cornerstone of our development.  We have over 50 scientists constantly working with feedstocks, conversions and end-use applications.  We partner with our customers to co-create solutions to aim and create renewable substitutes that have enhanced properties than the fossil intermediate that they substitute.   

Finally, we are also working in the area of soil.  Soil is the source of our feedstock.  Fossil economies extract carbon, deplete the resource and then move to the next carbon source to extract the resource.  Renewable economies extract carbon from the soil, deplete the same, but if farming is done right, then regenerate the soil.  Renewable economies are circular, but this circularity must be worked on as we regenerate the resource.  To improve agriculture, Godavari along with the research institute K. J. Somaiya Institute of Applied Agricultural Research (KIAAR) are working with our farmers to actively ensure soil is healthy for the immediate and the longer run.  

Q. How is the favorable government policy accelerating the growth of bioenergy, ethanol and bio-based specialty chemical segments in the country? 

A. India is rich in soil, sun and has millions of farmers.  With these resources, we have to play to our strengths and have to transition from the oil economy to the soil economy.  With this in mind, the Government of India is focusing on the green energy transition. Biofuels enhance energy security, mitigate climate change and help farmer income security 

The Government set a target to achieve 20 per cent blending by 2030 and that was advanced to 2025, which we have achieved.  The NITI Aayog is now examining to expand this beyond 20 per cent.  When policies are well articulated, the ethanol industry, the farmers, the automakers, the equipment manufacturers, all come together to make this transition a reality.    

Q. How is Godavari Biorefineries as a strong player in the sector contributing to the government of India's ambition? 

A. Our business is into sugar, biofuels, co-generated electricity and bio-based chemicals. As the government is going for 20 per cent blending, Godavari is actively making ethanol from sugarcane juice and B Heavy-molasses. We expanded our capacity from what was 200,000 liters per day in phases to 600,000 litres per day. Now, we are adding a 200,000 liters per day facility of grain/maize based ethanol, which will use maize and other grains to add to feedstock to supplement and increase capacity. It would be implemented in the second half of FY26. 

Q. The biorefinery industry is constantly evolving and requires continuous innovation. What role does R&D play in the overall growth of the company? 

A. There are three aspects of the research we do. First is the research on the soil. The carbon and soil regenerative practices that will make sure that we have the carbon which is required to be transformed. The fossil economy is extractive, and biorefining can also be regenerative. We can always extract from the soil but if we do it wrong, it can get poor in carbon. But if we do it right, the soil has the ability to regenerate.  

The second area of research is the conversion of this biomass into food, fuel and biochemicals. We have a lot of scientists working on physical, chemical and biological transformation.  

And the last aspect is where we work with customers to co-create with them. They also have their transitional journeys and are looking at products that we make including drop-ins or could be an applicational substitute with enhanced properties.  

Similarly, when I talk about regenerative farming, we have to co-create value with farmers. It is an emphasis on renewables, emphasis on co-creating work with either the farmers or customers, and the emphasis on innovative science whether physical, chemical or biological.  

Q. Godavari Biorefineries has a strong focus on sugarcane based products. How does the company ensure sustainable sourcing practices and support for the local agriculture community? 

A. We are working with our farmers on regenerative agriculture which is good for both short term and long term. We have a separate independent, agriculture research institute, KIAAR, where a lot of research is done in combination of drip farming, intercropping with sugarcane, looking at regenerative practices and remote sensing. This involves the whole range of traditional with modern science, looking at sustainability in the short and the long run and to help farmers improve crop yield and income.  

Q. Can you highlight any recent advancements or technological innovations that Godavari primarily implemented to enhance its biorefinery operation?  

A. We are advancing three aspects. One is we are going into a maize/grain based ethanol facility to supplement the feedstock from sugarcane and to mitigate climate risk. The second aspect is that we are in the bio-based specialty chemicals and continuously co-creating value added products with customers. Whether that is the need for a product which has properties in the substituting fossil or substitutes purely as a drop-in, we are working on new chemicals continuously. We will come with new products or enhance capacities as we go forward.  

Q. Sustainability has become a key priority for businesses worldwide. How does Godavari Biorefineries integrate sustainable practices into its overall operations, including resource consumption and emission reduction? 

A. We are fundamentally sustainable as much of our feedstock is biogenic carbon. Our energy also primarily comes from biogenic carbon - bagasse is our main energy source. We do use some amount of coal, but overall our energy matrix, the carbon we consume for energy or for chemical operations, the majority of that is biogenic carbon. 

 Q. In addition to bioethanol, what other bio-based products does Godavari produce? 

A. We make a host of bio-based chemicals that find applications in a variety of fields including skin-care, cosmetics, agrochemicals, paints, coats, and pharmaceutical intermediates. Our scientists are continuously working, and co-creating with customers to expand the bouquet of products available to them. 

Q. What are the key strategic priorities and growth plans for the Godavari Biorefineries in the segments that you operate? 

A. Climate change has to be addressed and also in terms of transition to green energy, Godavari will continue to contribute and play its role. In this direction, there could be three sets of customers. The first set of customers are an end use customer who may want to buy a product that comes from natural or renewable feedstock. Another set of customers may be looking at a green substitute for an existing fossil product that has enhanced properties. The third would just be looking at reducing the chemical footprint.  

Our customers are in either one category or in two or all three of the above.  We are seeing the growing interest among our chemicals in this transition.  In summary, there is a wider interest in the green transition in chemicals.  In India, there is an articulated policy in the transition to renewable energy.  We are actively participating in both these transitions.   

We are living in exciting times. We have to realize that each one of us, individually and as institutions, have to look at sustainability in our processes and co-creating with customers and also co-creating value with the supply chain. We have to create value and look at research as a bedrock of that value. That's how I look at it and Godavari follows this process very sincerely. 

June 29, 2025

Maulik Mehta, CEO & Executive Director, Deepak Nitrite Limited shares his perspectives on the growth strategy of the company as well as current market dynamics...

Q: Emerging trends in the global chemical industry and its impact on the Indian chemical industry in the wake of the ongoing geopolitical situation and US-China trade war?

A: The global chemical industry in 2025 is navigating a transformative phase, driven by innovation, sustainability, and geopolitical shifts. Key trends include the adoption of digital technologies like AI and predictive analytics to enhance efficiency and sustainability. The industry is also focusing on decarbonization and circular economy initiatives to meet environmental goals. However, challenges such as supply chain disruptions, high energy costs, and regionalization due to geopolitical tensions persist.

The ongoing US-China trade war has significantly impacted the global chemical landscape. With US tariffs on Chinese imports have disrupted supply chains, the trade war has led to increased costs and market fragmentation, affecting global efficiency. For India, these global dynamics present both challenges and opportunities.

The Indian chemical industry, a key pillar of the economy, is benefiting from robust domestic demand and government initiatives like the Production-Linked Incentive (PLI) scheme. India's specialty chemicals sector is poised for growth, driven by demand in agriculture, pharmaceuticals, electronics semiconductor and advanced polymers. The long-term outlook for the Indian chemical industry remains positive, with opportunities to strengthen its position in the global value chain.

Q: Key milestones achieved by the Deepak Group during FY24-25?

A: The year 2024-25 has been very challenging for the Indian chemical industry including Deepak group with pressures on demand due to oversupply and Chinese dumping, pricing pressures due to recessionary trends in the European and US markets. However, due to our resilient business and focused strategies, we were able to achieve significant milestones during this period.

Deepak Group, through its subsidiary, Deepak Chem Tech has set up a production facility at Dahej to manufacture polycarbonate resins with an initial capacity of 1, 65,000 MT per annum for which we have entered into an agreement with Trinseo. We recently began production of engineering polymers at our state-of-the-art polycarbonate compounding plant at Manjusar, Savli in our subsidiary Deepak Advanced Materials.

Q: With a diversified portfolio catering to multiple industries, which segments have shown maximum growth and how has the company adapted its operations to meet varying demands?

A: We cater to multiple industries and products having varied end applications ranging from agro intermediates to dyes and pigments, plywood industry, epoxy resins, textiles, petrochemicals among many others. At Deepak, our philosophy has always been to drive import substitution and help reduce the nation’s import bill — phenol being one of the most recent products introduced under this strategic approach. We are further targeting other products such as polycarbonate resins for which currently the country is completely dependent on imports. By adding new chemistries such as fluorination chemistry, Deepak group has created a strategic backward integration for our agro chemicals.

Q: In the light of the financial performance during Q3 FY25, are there new strategic initiatives or adjustments to existing plans to enhance profitability and operational efficiency? How do you see your performance in FY 2024-25?

A: Performance during FY 24-25 was marked by a unique confluence of events. Normally, the business cycles of advanced intermediate and phenolics are such that on an overall basis they complement each other. Persistently, stubborn raw material costs have also impacted product margins. We have taken several measures to ensure that profitability and productivity are meaningfully improved.

The company has entered into medium term agreements which align well with its expanded capacity. We have also completed our expansions and cost improvement initiatives for agrochemicals and dye intermediates. This will yield higher volume at a lower cost for segments where demand is resilient.

We introduced new products from existing assets which will have revenue and margin improvement, Methyl Isobutyl Ketone (MIBK), Methyl Isobutyl Carbinol (MIBC), acetophenone and other backward and forward integrations are expected to be commissioned shortly. This will expand our footprint in the energy sector as well as establish our foray into advanced solvents for life science applications.

Q: The company has signed MoUs with the Govt. of Gujarat and a binding term sheet with Petronet LNG. How do these agreements fit into Deepak Group's long-term strategic vision and what benefits are anticipated?

A: Deepak group has been an early adopter of Make in India, Make for the World. We aim to make India self-reliant in responsible chemistry. We as a strategy believe to produce products which substitute imports and thereby reducing India’s import bill and making India self-sustained. Towards this, we have signed two MoU’s with Govt. of Gujarat to cumulatively invest Rs 14,000 crore to set up state-of-the-art units in PCPIR region at Dahej to manufacture specialty chemicals for agrochemicals and pharma sector, phenol and acetone which cater to laminates and plywood industry and bisphenol which cater to epoxy and adhesives sector.

Further down the chain, we plan to manufacture polycarbonate (PC) resins, PC compounds and other advanced materials which have applications in electrical and electronic components, high end telecommunication devices, automotives, aviation, mobility industry, renewable energy medical and consumer devices, construction, lighting and furniture industries, to name a few.

Q: What is the latest development on acquisition of Trinseo’s polycarbonate technology license and stade equipment assets? How is this acquisition going to contribute to Deepak's growth?

A: Our long-term plan for the polymer business is rapidly taking shape. Having entered into long term agreements for pipeline supply of critical feedstock and contracted to acquire German assets for the final product viz polycarbonate resins, we are actively working to complete the entire value chain. We are acquiring their globally accepted brand. India continues to import almost 300 KTA of polycarbonate resin. Deepak will be producing about 160 KTA in the first phase. The project is targeted to be commissioned by December 2027.

Q: In March 2024, Deepak Chem Tech Ltd. (DCTL) commissioned a fluorination plant in Dahej, Gujarat. Could you elaborate on the strategic importance of this plant and how it enhances the company's backward integration for agrochemical intermediates?

A: Last year in March, we commenced our state-of-the-art fluorination plant, and it was a landmark moment for Deepak as the group forayed in the expertise of fluorination chemistry which is core to our future growth plans. Fluorination chemistry plays a significant role in various fields, including materials science, pharmaceuticals, agrochemicals, and electronics, offering a diverse range of properties and applications. This development strengthens Deepak's backward integration for crucial agrochemicals, enhancing the company’s value chain resilience as well as participation in various contract manufacturing opportunities.

Q: Deepak Group has been focusing on strategic investments and building a resilient business model through strong integration. Key initiatives that were undertaken in FY24-25 that align with this strategy?

A: The current developments strengthen the company’s backward integration for crucial agrochemicals and establish Deepak Group as a R&D hub for responsible chemistry in India. It is because of the company's integrated model and India's stability and consumption push that has provided a significant bulwark to our growth fundamentals.

Our considerable investment plans include upstream, downstream and sunrise segments. We are implementing world-scale capabilities which shall be used as a specialty chemical in flavors and fragrance segments, manufactured from recovered byproducts of phenol.

We are undertaking projects to manufacture PC and compounds which are downstream derivatives of the phenol chain. With the commissioning of photo halogenation and fluorination capacities, we are securing our key raw material supply and gearing up for new product capabilities.

Q: What is the overall expansion plan of the Group? How much investment is earmarked for these expansions? How are you going to arrange the investment? Could you provide details on these projects and their expected impact on the company's growth?

A: We have signed 2 MoUs with the Govt. of Gujarat, which encompass an investment to the tune of about Rs 14,000 crore towards the fulfilment of our objective of enhancing our capabilities and seizing the opportunities in both domestic and international markets particularly in building blocks, intermediates and specialty chemicals.

Various projects entailing an outlay of around Rs 2,000 crore are in the final stages of implementation, and these are being commissioned which include projects to manufacture MIBK and MIBC, which are products in the phenol chain, Nitric Acid plant, enhanced nitration and hydrogenation facilities and agrochemicals. We have also signed an agreement with Trinseo to procure the assets, license the technology for manufacture of Polycarbonate which is currently imported in India.

These projects shall be funded by a mix of debt and internal accruals. Since we have a very strong balance sheet and cash generation of around Rs 1,000 crore, we are holding a very healthy financial position for funding the investments.

Q: What is the current status of the development of the R&D Centre at Savli, Vadodara. By when is it expected to be ready and what will be the focus of this facility in terms of developing new products or technologies?

A: With its ability to develop advanced intermediates, our R&D facility is crucial to our success. Our state-of-the-art R&D facility at Savli, Vadodara shall be commissioned soon. Central to the mission of the Savli R&D Centre is the emphasis on sustainability. The facility will prioritise the development of processes and products that minimise environmental impact, aligning with global trends toward greener and more sustainable industrial practices. 

We have a strong line of products offered to various segments of industries for varied applications. These products shall be announced at appropriate time in due course.

Q: Beyond the current projects, what are Deepak Group's plans for capital expenditures in the upcoming fiscal years, and which areas are prioritized for investment?

A: Currently, the company is focussing on the commissioning and completion of the various ongoing projects such as the MIBK and MIBC project and Nitric Acid projects. We are targeting to commission these projects in the upcoming year as well as rapidly progress on the Poly Carbonate project which shall be a key growth driver for Deepak group with our strategy of import substitution.

Q: Deepak Group has a dedicated policy for Employee Health, Safety, Environmental Protection, and Quality. What specific initiatives were undertaken in FY 2024-25 to enhance sustainability, and what outcomes have been observed?

A: In November 2024, Deepak Nitrite released its inaugural Sustainability Report, reaffirming our unwavering commitment to embedding ESG principles in every project. Sustainability is integrated into our core operations—each initiative is designed with energy-efficient technologies to minimize carbon footprint, repurpose waste into value-added products, and align with the 3R principles: Reduce, Reuse, and Recycle.

Over the years, we have implemented wide-ranging measures to cut carbon emissions, recycle water and waste, improve energy efficiency, and prioritize people-centric practices. Notable efforts include scaling biomass use in our boilers from 30 MT to 100 MT per day by utilizing ETP sludge, thereby reducing dependence on conventional fuels. We have also invested in energy-efficient infrastructure, such as a biomass conveying system and Advanced Process Control (APC) systems in our cumene and phenol plants, leading to significant utility and chemical savings.

In FY 2024 alone, we invested over Rs 22 crore in environmental conservation projects. Milestones include the commissioning of a Spent Sulphuric Acid Concentration (SAC) unit at Nandesari, and the deployment of advanced wastewater treatment technologies—Activated Sludge Process (ASP) and Membrane Bio Reactor (MBR)—achieving 80–90 per cent treatment efficiency. We've also implemented Ultra Filtration (UF), Reverse Osmosis (RO), Mechanical Vapour Recompression (MVR), and Multi-Effect Evaporator (MEE) systems to maximize water reuse.

Q: How is Deepak Group leveraging digital technologies to enhance manufacturing processes across its facilities, such as those in Dahej and Vadodara, to improve efficiency and product quality?

A: We have formed a Digital Innovation Lab with an IT team and innovative business team members. This team shall be identifying use cases and experiment the same on our Private LLM. Presently, we are in the Multi Cloud Environment wherein we have created a Data Lake created by collecting data from SAP, CRM, LIMS, and likes on google cloud using VERTEX AI. This data lake can be used in predictive analytics – based on past data, the model will get trained with the trend and give predictions based on regression on Demand, price; Scenario simulation - Financial Planning & Demand Forecasting, Automation in Projects AI is driving our plant.

We have set up Smart Manufacturing using Advanced Process Controls (APC) at our phenol facility. Real-time monitoring of critical variables allows APC to optimise performance and make timely decisions. Due to this, we were able to increase our production by 2 to 3.5 per cent, decrease our CO2 emission, and reduce process deviations by 2 to 7 per cent.

Q: The company has been recognized for its ESG efforts, receiving awards for Health & Safety Excellence, Waste Reduction, and Green Innovation. Can you share more about these achievements and the initiatives that led to them?

A: At Deepak, we believe that ethics, aesthetics, and economics can harmoniously coexist, guiding our journey toward responsible industrial leadership. In 2024, we published our inaugural Sustainability Report, marking a key milestone in our commitment to sustainable growth. By integrating future-focused, sustainable practices, Deepak Group is well-positioned to lead the chemical industry’s shift toward greener operations. In FY 2023–24, we reduced our annual emissions by 12.49 per cent and significantly expanded the use of renewable energy to reduce reliance on fossil fuels.

Recently, we have registered a S&P Global ESG Score of 56/100 which is an impressive 20 per cent growth from the previous year. We have received a rating of “B” in the CDP (Carbon Disclosure Project) on two key categories – Climate Change and Water Security. This is a milestone in our sustainability journey. Our Hyderabad unit won Gold award at the 16^th EXCEED Green Future Environment Awards 2024 for Water management. We also earned seven Gold Awards for safety case studies at the National Safety convention.

June 10, 2025

What inspired you to launch Scimplify, and how is your vision to simplify specialty chemical sourcing and manufacturing come to life?

India has factories. India has talent. What we needed was a bridge. Coming from a deep manufacturing background and having worked with companies like ITC and Zetwerk, both leaders in the manufacturing space, I saw firsthand how underutilized India's vast industrial and scientific potential truly was. Despite the brilliance of our R&D ecosystem, many factories were running far below capacity due to the lack of demand generation and limited R&D capability. Scimplify was born to connect these dots and unlock India's full strength in specialty chemicals.

We envisioned a full-stack platform, from R&D to manufacturing to global distribution, built to simplify and scale innovation. India does around $50 billion in specialty chemicals today, but even without adding new infrastructure, better utilization alone could double the figure. The potential is massive, we just needed a system to connect the dots.

Today, we’ve exported to 15+ countries, getting repeat orders from global players, and enabled multiple manufacturing units to reach profitable utilization levels. Our ambition is to take molecules from India to customers worldwide and showcase India as a global hub of capability, reliability, and innovation.

How has been the performance of Scimplify in 2024 and what are your expectations from 2025?

2024 was our first year and a strong one with focus on building a solid foundation. We scaled up our R&D team and onboarded experts for chemical innovation.  On the manufacturing front, we partnered with 200+ factories across the country and began production at scale. A big win was substituting several China-sourced products with Indian-made ones.

2024 also reaffirmed our belief that the world is ready to trust India for innovation, quality, and reliability, not just validating our model but also highlighting the broader opportunity for India in specialty chemicals.

In 2025, we aim to deepen our global footprint, expand R&D, and strengthen our manufacturing network. Our mission is to take Indian innovation and manufacturing to the world.

How would you explain the emerging trends in specialty chemicals in India and globally?

India is fast emerging as a global powerhouse in specialty chemicals. With growing exports, strong domestic demand, and active government support, the country is stepping into a central role on the world stage. Global supply chain disruptions have prompted companies to rethink their sourcing strategies. India’s unique combination of cost-efficiency and scientific talent positions it as an ideal alternative. As international firms increasingly look to outsource production, India is becoming deeply embedded in the global value chain, offering reliability, scale, and innovation.

Scimplify emphasizes a "science-first" approach. Can you share how your R&D capabilities set you apart from other similar companies in the business?

We integrate R&D from process development to tech transfer till fulfillment. While our model remains asset-light, our capabilities are full-stack.

What truly sets us apart is that our R&D is not limited by our own lab infrastructure. Through our proprietary matchmaking platform and data intelligence, we connect the right projects with the right scientific expertise. This allows Scimplify to cover a broader base of chemistries and capabilities.

 We empower India’s SME manufacturers by offering deep scientific expertise. We also co-develop with global players in the pharma and agro sectors, ensuring Indian innovation reaches the end-use markets worldwide.

This interconnected, science-led model allows us to scale faster, deliver better outcomes, and unlock value across the specialty chemical ecosystem.

Scimplify has raised $54 million, including a recent $40 million Series B round. How do you plan to deploy this capital to accelerate growth, and what does this investment say about confidence in your model?

The capital will drive three growth pillars: international expansion (particularly in the US and Europe), scaling R&D with more talent and infrastructure, and onboarding capable but underutilized SME manufacturing units.

This investment is more than a validation of our model. It’s a strong vote of confidence in the broader India opportunity: in our talent, our manufacturing depth, and India's potential to lead the next era of global specialty chemical supply chains.

What is your expansion plan? What’s your strategy for further international growth, and which markets are you most excited about?

Our expansion strategy is rooted in leveraging India’s scientific talent and manufacturing strength to serve global markets. Domestically, we’re onboarding more contract manufacturing plants, especially those with idle capacity, while our R&D team designs custom synthesis routes based on global demand.

Internationally, our goal is to scale products we’ve built offering strong value propositions for API intermediates, agro inputs, or high-performance additives. Our ability to offer quality at globally competitive prices has been well received.

We’re also entering new segments like personal care, food, Nutraceuticals and industrial downstream chemicals where India has manufacturing strength but limited global visibility. Our key focus markets include the United States, Japan, Southeast Asia, and Europe.

India is a rising star in specialty chemicals. How does Scimplify leverage the country’s manufacturing expertise and capacity to serve global demand?

India has close to 10,000 chemical plants, many operating below capacity. Scimplify taps into this latent potential by partnering with small and mid-sized manufacturing units that have solid infrastructure but limited global reach. By providing international access, quality projects, and regulatory support, Scimplify turns these units into export-ready hubs.

We offer cost-effective, high-quality manufacturing with full transparency and science-backed support. It creates mutual value for the global supply chain and for India’s manufacturing ecosystem alike.

We don’t build factories, we onboard them. It’s a win-win for both as we scale fast, and they gain visibility and growth opportunities in global markets.

Green chemistry and sustainability are buzzwords in the industry. How does Scimplify integrate these principles into its operations, and what impact do you see this having on your customers?

For us, sustainability is a responsibility, not a trend. From the beginning, we believed that science and sustainability must go hand-in-hand. We integrated green chemistry principles from the start by designing efficient routes, reducing waste, and avoiding hazardous reagents as and where it is possible.

We’ve built dedicated infrastructure for hazardous reactions to ensure safety and sustainability coexist. We prioritize responsibly produced raw materials and work only with partners who align with our sustainability values.

The specialty chemicals sector is facing supply chain disruptions and geopolitical shifts. How does Scimplify address these challenges differently from traditional manufacturers?

The past few years have made it clear that global supply chains can’t be taken for granted. From geopolitical shifts to logistics disruptions, building resilience is more important than ever.

At Scimplify, we’ve addressed this structurally by putting R&D at the center for greater process control and flexibility. We also invest in close collaboration with our manufacturing partners to improve yield, reduce costs, and enhance quality.

Importantly, our supply chain strategy is not dependent on any single country or geography. This means we are insulated from the ripple effects of tariffs, trade wars, and regulatory bottlenecks that often disrupt traditional supply chains. Instead of getting caught in global traffic jams, we ensure seamless, reliable delivery through a diversified, de-risked network.

How does Scimplify approach product development and what new products are you planning to launch in 2025?

We anticipate demand through deep market intelligence, primary research, and regulatory foresight. We proactively scout and select molecules with strong commercialization potential and initiate process development well ahead of market demand.

In 2025, we're expanding into complex pharma intermediates and sustainable agrochemical ingredients while also co-developing high-value molecules with global formulation firms rooted in green chemistry and future-ready demand.

Where do you see Scimplify in five years, and how do you plan to shape the future of the specialty chemicals industry?

In five years, we see Scimplify as the preferred innovation and manufacturing partner for pharma, agro, and specialty chemical companies worldwide. Our goal is to enable end-to-end development across 50+ chemistries, R&D, scale-up, manufacturing, and distribution through a single, integrated platform.

We envision 1,000+ enterprises across 50+ countries relying on Scimplify to deliver complex, high-value chemicals at scale. We aim to transform the way specialty chemicals are sourced and developed.

We are aspiring to go public and prove that India can create global scientific and manufacturing platforms.

May 12, 2025

Thomas Braig - EVP, Head of Business Entity Elastomers, Covestro talks about his company's focus on sustainable offerings 

The elastomer industry is evolving rapidly with demands for durability, flexibility, and sustainability. What trends do you see shaping the future of elastomers, and how is Covestro responding to these shifts? 

We see three major trends for elastomers. There is demand for high performance, higher processing efficiency and sustainable/circular elastomers. We see increasingly rubber moving to polyurethane elastomers because of higher performance, more energy efficient processing and also lower investments needed to set up a production. Within polyurethane elastomers, we see the trend moving from hand casting to reliable and predictable machine casting. Covestro elastomers is addressing all three of them. 

We are continuously investing in innovation to improve our performance. We are also improving the process ability with our machinery, making it scalable. Sustainability is the key element for us. We are offering solutions with reduced carbon footprints. For example, take some already available mass balance solution with, let’s say, around 60% reduced carbon footprint. So, we are addressing all of them: performance, process efficiency and sustainability. 

You recently announced plans for a pilot plant to recycle elastomers chemically. Can you tell us more about this breakthrough and how it could redefine end-of-life solutions for elastomer products? 

The pilot plant is dedicated for elastomers made of our Vulkollan product range. The parts made of Vulkollan are already outstanding in their life cycle performance because of the material’s long durability. Its product life cycle is very sustainable. We are already offering a solution with a reduced carbon footprint and the chemical recycling solution will then go even beyond to make it really fully circular. The pilot line is under construction and will be the basis for the scale up to a commercial plant subsequently. We are investing double-digit million in this pilot plant. 

Vulkollan recently completed 75 years. How this product has evolved in the last 75 years and where it stands today? 

Vulkollan evolved by continuously exploring because of its performance, superior performance, and more and more applications. We have continuously increased its performance. The processing of Vulkollan elastomers requires very specific handling procedures. This is why, we developed an easy- to- handle Vulkollan prepolymer Version, representing a significant process advancement for the customers. This innovation simplified the moulding of parts made of Vulkollan, enhancing efficiency and reducing investment requirements for the partners working with this unique material. 

Covestro has made bold commitments to circularity and climate neutrality. How is the Elastomers division specifically contributing to these goals, and what challenges do you face in balancing performance with sustainability? 

First of all, sustainability and circularity are key strategic priorities for Covestro. We see increasing demand for a sustainable and circular solution and our existing products offer these. We are offering a mass balanced version with a reduced carbon footprint of around 60%. We expect it to be about 80% or even beyond. Its the same molecule. Its the same process, just with a reduced carbon footprint and the same we are aiming for the chemical recycling and building a pilot plant. 

Covestro is emphasizing on Crafting Solution for customers. How do you ensure elastomer division stays closely or with the needs of the industry like automation, renewable energy and material handling? 

Being close to the customer creates opportunities to engage with customers, to develop innovations with customers, develop prototypes and help them to scale up and grow together. We have our own Technical Centers across the world. We also partner with long-term technical distribution partners who invest in dedicated Technical Centers. 

How competitive is the market? 

The market is quite competitive, though we see a demand for performance, efficiency and sustainability. We perceive that the market interprets competitiveness, not only in a raw material price, but the market is looking at a total cost of ownership. We can help the market with our products, processing equipment, and expertise.

May 12, 2025

India’s chemical and petrochemical industry is expected to maintain its strong demand growth, with key players focusing on technological advancements, sustainability, and foreign direct investment (FDI) inflows to boost competitiveness…

How has the global chemical and petrochemical industry performed in 2024? What are the key trends and challenges in 2025?

In 2024, the global chemical and petrochemical industry faced overcapacity, weak demand, and portfolio realignments, with utilization rates dropping due to capacity surges, particularly in China. Sustainability pressures intensified, with regulatory demands prompting a shift toward greener practices, though concerns remain about their economic impact. Financial restructuring became a priority, with a focus on cost cuts and strategic investments, while divestments and asset sales reflected industry adaptation. Moving forward, the sector needs to navigate shifting regulations, economic uncertainties, and the drive toward sustainability while balancing profitability and innovation. The global chemical and petrochemical industry is projected to experience varying growth rates from 2025 to 2035:

Chemical Industry: According to Deloitte’s 2025 Chemical Industry Outlook, global chemical production is anticipated to grow by 3.5% in 2025. 

Petrochemical Industry: Boston Consulting Group (BCG) projects global petrochemicals demand to grow at approximately 3% through 2035, slightly down from the 3.3% growth observed between 2014 and 2024. 

Cautious optimism means 2025 may be the year that kick-starts a longer-term recovery as the transition toward greater sustainability and decarbonization is likely to accelerate alongside technological advances.

Tighter margins will demand greater efficiencies in advanced process conditions, like higher temperatures, higher pressures, and improved chemistries. This can create more corrosive environments and the need for more corrosion-resistant materials.

For asset owners, these drivers will increase the need for advanced materials technologies to withstand the harshest applications and make their operations more efficient, profitable, and sustainable.  

How has the Indian chemical and petrochemical industry performed in 2024? What are the key trends and challenges in 2025?

In 2024, India’s chemical and petrochemical industry experienced significant growth, driven by rising domestic demand across sectors such as construction, automotive, agriculture, and pharmaceuticals. The country remains a bright spot for petrochemical demand, with continued investments and expansion efforts shaping the industry’s trajectory. However, challenges persist, including import dependency, with India still relying on imports, impacting self-reliance and competitiveness. Additionally, global overcapacity, particularly from China, poses a risk by flooding the market with low-cost imports, affecting domestic producers. To counter this, India is eyeing $87 billion in investments in the petrochemical sector over the next decade, as part of its push for self-sufficiency and industrial growth, according to Reuters. (Source: Reuters)

Meanwhile, environmental regulations are becoming more stringent, requiring significant investments in cleaner, sustainable technologies. Moving into 2025, the industry is expected to maintain its strong demand growth, with key players focusing on technological advancements, sustainability, and foreign direct investment (FDI) inflows to boost competitiveness. State owned companies like BPCL are planning major refinery and petrochemical expansions, in South India, underscoring the long-term vision for the sector. However, balancing growth with regulatory compliance, sustainability, and market fluctuations will remain critical to maintaining momentum.

How do you see technological advancements in the chemical and petrochemical industry with respect to digitalization and automation?

The chemical and petrochemical sector like other industries is undergoing a major transformation, driven by digitalization and automation. As industries push for greater efficiency, sustainability, and safety, several key technologies are shaping the future:

AI & Predictive Analytics – Enhancing process efficiency, minimizing downtime, and improving yields through data-driven insights.

Smart Automation & Robotics – IoT-enabled systems, autonomous robots, improving operational precision and worker safety.

Energy Optimization & Sustainability – Digital tools driving smarter energy use, lowering emissions, and improving resource efficiency.

What’s next for 2025?

By 2025, the industry will see a broader adoption of AI-driven automation, digital supply chains, and real-time monitoring solutions. Smart energy management systems will play a critical role in sustainability efforts in the industry. Companies that embrace these innovations will gain a competitive edge, driving cost efficiency and operational resilience.

Digital tools can optimize the use of resources, supporting recycling and circularity and helping operators align with sustainability goals.

At Alleima, we are actively exploring digital technologies to enhance resource efficiency, recycling, and circularity, in line with our sustainability goals. By leveraging AI and IoT-powered monitoring, we aim to optimize processes, reduce waste, and maximize material utilization. Predictive maintenance extends the lifespan of our equipment, cutting down raw material usage, while smart recycling and material tracking improve scrap management and support closed-loop production. Additionally, digital simulations and life cycle assessments help us transition to low-carbon, energy-efficient solutions. As we integrate advanced digital innovations, we reinforce our commitment to sustainable manufacturing, ensuring a more resource-conscious and environmentally responsible future.

Technological advancements with respect to sustainable production practices? What's the plan for 2025?

At Alleima, technological innovation and sustainability goes hand in hand. Our commitment to sustainable production practices is driven by cutting-edge advancements that optimize efficiency, minimize environmental impact, and promote circularity.

Energy-Efficient Manufacturing

We continuously invest in state-of-the-art technologies to reduce energy consumption and lower carbon emissions across our production facilities. Key initiatives include:

* Transitioning to renewable energy sources such as solar and wind hybrid power.

* Implementing electrification of processes to reduce reliance on fossil fuels.

* Enhancing energy recovery systems to optimize efficiency in production.

Circular Economy and Resource Optimization

Sustainability is embedded in our material development and production processes. We actively work to maximize the use of recycled materials in our products. At Alleima, we see engineering as a force for sustainable good. Approximately 80% of our products incorporate recycled materials, and we support our customers in meeting their decarbonization targets. We provide life cycle assessments (LCA) for our bar steel to support the increasing focus on sustainability in the global petrochemical and chemical industries. We conducted an in-depth analysis for one of the Solid bar products, Sanmac 316L, which showed an 81% reduction in carbon footprint in comparison to the global average. The Sanmac 316L uses an average of 95.6% recycled materials. The remaining 4.4% accounts for 61% of the total emissions of carbon footprint. Moreover, Alleima uses renewable sources of electricity, such as wind energy and nuclear energy, for production requirements.

* Develop closed-loop recycling systems in processes to minimize waste.

* Optimise raw material dependency through optimising alloy compositions that extend product lifecycles.

Low-Emission and Eco-Friendly Processes

To align with global sustainability goals, we focus on reducing industrial emissions by:

* Improving water efficiency in production through closed-loop cooling systems and wastewater recycling.

* Exploring green manufacturing techniques that reduce chemical usage and environmental footprint.

By combining technological advancements with responsible production practices, Alleima remains a leader in sustainable innovation – helping industries transition towards a greener, more efficient, and resource-conscious future. Going forward, we plan to continue to strive to be more sustainable in our production and collaborate with our customers to find solutions so that they also can become more sustainable.

How do initiatives like "Make in India" and environmental regulations influence investment, technology adoption, and overall growth in the Chemical and Petrochemical industry?

"Make in India" and environmental regulations are helping the Indian chemical and petrochemical industries to grow by fostering investment, encouraging technology adoption, and aligning with global sustainability trends.

"Make in India" promotes domestic manufacturing by offering production linked incentives enabling infrastructure development, and 100% foreign direct investment in the chemicals sector.

This supports increased investments in production facilities, such as the Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) and plastic parks. These dedicated hubs are designed to enhance domestic manufacturing, reduce import dependency, and attract global players by providing integrated facilities, policy support, and streamlined regulations.

How does international partnerships and collaborations balance knowledge exchange, technology transfer, and foster a global perspective within the Indian chemical industry while also promoting development of local expertise and capabilities?

Partnerships with international companies can provide Indian firms with access to advanced material technologies that can boost efficiency, profitability, and sustainability. They can support a greater understanding of international requirements, quality standards and sustainability regulations to increase global competitiveness while accelerating local development and expertise.  

Solutions provided by Alleima to the Chemical and Petrochemical industry?

Our chemical and petrochemical offerings include application tubing products for hydraulics and instrumentation, heat exchangers, process piping, high-temperature applications, and high-pressure equipment for fertilizer production. We also offer a comprehensive range of alloys in duplex, austenitic, super austenitic, nickel alloys, titanium and zirconium alloys as composite and bimetallic tubes.

Example application areas are the manufacture of fertilizers in high-pressure parts of the urea process. Hydraulic and instrumentation tubes are used to monitor temperature, pressure, and processes in various chemical and petrochemical plants, and heat exchanger tubes are used for heat transfer between different corrosive process media in condensers, evaporators, heaters, and reheaters where safety and performance reliability are critical. 

At Alleima, we are an innovative material solution provider and continuously work towards developing new materials to solve our customers' challenges. The success of Sanicro 35 in the last few years is a testimony to this. Sanicro 35 has a great value proposition due to its high performance-to-cost ratio. It has replaced nickel alloys in several applications globally.

Any new solutions that you are planning to provide in 2025 to this industry?

Building on our strong R&D legacy, we introduced SAF 3006, a high-alloy duplex (austenitic-ferritic) stainless steel designed for superior corrosion resistance in acidic and caustic environments. Engineered for heat exchangers in the chemical and petrochemical industries, it offers a cost-effective alternative to austenitic stainless steels and nickel-based alloys, ensuring enhanced durability and performance in demanding applications

This new duplex alloy, SAF 3006, will be a key focus area as we continue to push the boundaries of material innovation. With its enhanced corrosion resistance and cost-effectiveness, it is set to play a crucial role in optimizing heat exchanger performance across the chemical and petrochemical industries. As industries shift toward sustainable and efficient solutions, SAF 3006 aligns with the demand for high-performance materials that improve longevity, reliability, and operational efficiency in harsh environments.

Our materials redefine industry standards, combining cutting-edge performance with unmatched reliability. Backed by world-class R&D and integrated production capabilities, we continue to drive innovation, delivering high-performance solutions that meet the evolving demands of modern industries.

April 15, 2025

April 15, 2025

April 15, 2025

April 15, 2025

April 15, 2025