June 04, 2023

Rieco Industries Ltd. is setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

Major milestones achieved by Rieco during FY2022-23? Key targets set by the company for FY 2023-24?

Rieco has achieved record levels of order booking, both in international and domestic markets. Order growth of nearly 100% over last year and a substantial order backlog is a positive sign for us. The targets for this year will be to further accelerate by innovating, adding more solutions by investing in R&D, adding to our customer footprint and industries that we serve. One of the focus areas for Rieco would be to add more Industry 4.0 solutions which involves robotics, Artificial Intelligence/Machine Learning (AI/ML), etc. Through these product and solution level innovation, we will strive to be ahead of other players in the market.

Rieco recently bagged two large contracts worth Rs. 100 crores from the paint and petrochemical sector? Would you like to share the details? Key deliverables and timelines of the two projects?

In the first contract, we are overseeing construction and commissioning of paint raw material storage silos across three locations in India. The customer is making a big foray into the paints business and aims to challenge the market leader Asian Paints. In this construction of more than 80 silos with capacities up to 550 cubic meter, lot of critical technologies like tractor welding machines, auto beveling machines, and high capacity cranes of 500 T lift are being used. The deliveries have already started and it is expected to be completed by July 2023.

Secondly, we have been engaged by a Lithuania-based client who is a leading player in the oil and gas sector. Our scope of work for this project involves the supply of material handling systems to feed catalysts to the reactors. The demanding nature of industry and environment means that most equipment is being designed for operations at freezing temperatures of -35 degree centigrade. Additionally, they must be certified for safe operations in zone 21 and 22 and must confirm to CE/ATEX standards.

Being a leading player in powder and bulk solid technology, what have been your notable deployments in FY2022-23?

Apart from the two very large projects, we have several firsts and notable projects deployed. One is a very large size fluidized bed with diameters of 28 m for an aluminum storage silo. Then others involve complex material handling needs for wall putty (dry mortar) making and mixing plant for large paint players. We also got orders for ATEX rated equipment in which we are designing and constructing screw conveyors. 

How is the company leveraging its new facility in Ankleshwar and other facilities in Alandi and Chakan Phase 3? How have these facilities helped in capacity expansion for the company in terms of production?

All these plants have been equipped with both CNC high precision machines and also conventional manually operated machines. Through these, we can manufacture very high precision and quality equipments which are critical to the working of the integrated systems we design for our customers. Through these facilities, we have been able to witness better traction and confidence from our customers. Apart from direct addition to the revenue, there is a huge multiplier effect in our ability to get business.

Tell us more about your plans to add a fourth facility in FY 2023-24 in terms of Capex, location, and manufacturing?

Currently, the plans to add a fourth facility are under evaluation. Possible locations could be in Gujarat or Uttar Pradesh other than Pune. The exact numbers are still to be worked out, but the quantum of investments would range from Rs. 15-20 crore.

Objectives behind hiring 200+ new employees in the next 18 months? Expected outcomes and how will it drive the company's growth?

We are now 300+ already. We are a project-based company and with the robust inflow of orders, we also need to ramp up the employee resources to be able to fulfill the growing demand. The addition of human resources to our pool would increase our delivery capabilities, directly increasing the revenue.

Your revenues and profitability numbers during FY 2022-23? What is the forecast for FY 2023-24?

For FY 2023-24, we expect to have a revenue of Rs. 350 crore and EBITDA of around 11%. Our current year numbers are being audited so cannot disclose these now. 

How do you see the industry trends unveiling during the upcoming year and how is Rieco planning to leverage it in the long run?

Industry is moving towards adopting higher levels of automation and making the processes energy efficient. We are setting up a comprehensive team to support Industry 4.0 and other automation needs for our projects.

How has the company managed consistent technology upgrades to fulfill its customers’ evolving needs both nationally and internationally?

Technology upgrades are necessary, and we have added several new products and solutions to our portfolio. One of our successful products has been the Powtran which is a vacuum unloading system. Through these world class solutions we aim to serve the evolving needs of the customers.

June 03, 2023

What are the global trends in the Specialty Chemicals sector and its likely impact on Indian manufacturers?  

The Indian specialty chemicals industry is expected to register 15% growth annually. Foreign companies are shifting their manufacturing base to India, owing to the highly motivated creative workforce, huge pool of scientists and chemical engineers besides low labor and equipment cost. Indian companies must master the art of constantly developing and adopting new techniques and practices to tap the opportunities. In addition, India needs a modern regulatory framework that drives innovation and encourages growth and productivity. There is a need to promote innovation, better interactions between industry and academia and more chemical clusters. 

Most of the chemicals produced by the industry are commodity chemicals. Industry faces intense competition with international players on account of poor infrastructure, high capital cost, taxes, low economy of scale among others. Poor infrastructure, lack of storage facilities, poor road infrastructure, shortage of power and its costs deter the growth of the specialty chemical industry. At the same time, the advantages are price and raw material for specialty chemicals, innovation, and technology. Increasing the diversification of the product portfolio is extremely important for the industry to maintain competitiveness. It will require companies to invest heavily in R&D. To sustain themselves in the tough business environment, intensive research to produce innovative products is the key. 

Changing market dynamics within the Specialty Chemicals industry in FY 2023-24?  

Specialty chemicals are finding more application in the construction, automotive, electronics, and water treatment sector. These segments are most likely to drive the growth of the Indian specialty chemicals market. Therefore, upgrading the product quality through innovation and diversifying the product portfolio are extremely important for the industry to maintain the competitiveness and the overall momentum.  

Key milestones achieved by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24?   

Sauradip Chemical Industries was founded in 1974 with a philosophy of Care, Trust, and Bold Creativity, which have now become our core values. In the last 50 years, we have built unparalleled goodwill with our customers, suppliers, and our team.  

We are constantly raising the bar in the industry by developing highly customized green products in consultations with customers. Our efforts have been to make available green products to customers at an affordable price and we have been touching the lives of people across the globe. Today, we have a strong presence in India and are relatively exporting to five continents across 40 different countries. Our dedicated sales and marketing team is in constant touch with customers. They deliver high performance solutions and solve challenges across various industrial segments.  

Sauradip’s knowledge based and solution driven approach continues to improve and change the quality of life of Indians. We have been well recognized in the industry with many accolades.

Dr. Shah was president of the Indian Specialty Chemical Manufactures’ Association from 2007 to 2012. For the first time in 60 years, the Indian Specialty Chemicals Manufactures’ Association (ISCMA) awarded the life time achievement award to Dr. Kishore Shah on the occasion of their annual function in 2013. The award was bestowed to him by Rajubhai Schroff Chairman of United Prosperous Ltd, for meritorious service rendered to Indian Specialty Chemicals Manufactures’ Association. Dr. Shah wrote world class books (1) Handbook Synthetic Dyes & Pigments- 5 editions (2) Handbook of Industrial chemicals – 4 editions which are used as reference book throughout the world.

Please explain the product basket of the company?  

Sauradip is a manufacturer of customized performance chemicals and works closely with customers to offer them Tailor-made cost-effective solutions. We believe in the philosophy of “Sustainable Solutions for a greener planet so that we can make a positive impact in the lives of people Globally”.

We cater to customers for Water Treatment Chemicals, Paint & Coating Additives, Fiber Finish for Synthetic yarn, Additives for construction chemicals, Metalworking additives, Performance chemicals for Oil Exploration & Refining, Green surfactants for Home & Personal Care, Antistatic Agents for plastics & Coatings, High-performance Disinfectants for Industrial cleaning, Specialty chemicals for mining.

Revenue and profit during FY 2022-23 and forecast for FY 2023-24? Key growth drivers?    

We have been doing good in terms of revenue, registering a year on year growth of 25%. We are launching a lot of new products including paints and additives, green surfactant. We have recorded a revenue of Rs. 250 crore in the last fiscal and plan to reach Rs. 1,000 crore in the next 5-10 years. Our continuous efforts to improve the product basket and the green products will drive this growth. To increase exports, we are putting in place new distribution of networks. We are not importing anything yet we are exporting to the US, Australia, Africa, China, Russia, and other nations. 

Kindly elaborate on Sauradip's knowledge-based, solutions-driven approach to develop highly customised applications in collaboration with its customers?  

Sauradip's highly customized applications are developed in collaboration with their customers. Whenever a customer seeks a customized product based on his experience with some other products, we try to develop an alternative in the best possible time. We deliver performance improvements and solve challenges in a range of industrial sectors. Our customers include global leaders in paints and coatings, textiles, oil field exploration, personal care and cosmetics, dyes and pigments, adhesives, industrial cleaning, and plastics. Everyday, hundreds of millions of people enjoy a better quality of life, thanks to Sauradip's knowledge-based, solutions-driven approach.

Please take us through your key R&D initiatives and how it will help in expanding Specialty Chemicals product offerings?    

Research and Innovation has been Sauradips' focus and forte for the past forty years. The company has been spending 6-7% of its revenue on the R&D initiatives. Our hi-tech research facilities are home to highly qualified and skilled scientists who are constantly raising the bar in the industry by developing non-toxic, eco-friendly and high quality solutions. Sauradip's research helps clients manage costs, reduce environmental impact and manage volatility in production. Scientists and technicians at Sauradip are continuously looking for innovative solutions to increase the efficiency and competitiveness of manufacturers. A result of those efforts is the comprehensive range of antistatic agents and lubricants that lower the yarn to metal and fiber to fiber coefficient of friction with high speed spinning efficiency. 

How is the company striking a balance between environment-friendly policies and sustainable growth?  

Sauradip is a pioneer of green thinking in the performance chemicals sector. Proprietary green technologies mean Sauradip's manufacturing processes emit zero discharge and zero effluent. The products play a vital role in the green value chain by allowing its customers to deliver safer, less carbon intensive products to their consumers. We are developing a good number of green products each year. We scientifically design our products for human and environment safety, protecting mother earth and saving our resources such as energy, water and time. We have developed a concentrate through our unique technology for the paints industry to reduce the carbon footprint. In the personal and home care segment, we have innovated the non-toxic products, thereby replacing toxic ones with highly innovative green ones.   

CSR initiatives being spearheaded by Sauradip Chemical Industries in FY 2022-23 and plans for FY 2023-24? 

Sauradip has been at the forefront of many CSR initiatives. The company has donated to ICT - Institute of Chemical Technology for renovation of the BTech Undergraduate Laboratory in the Department of Polymer and Surface Engineering. The company has also introduced "Sauradip Chemical Industries Visiting Fellowship" in the Department of Polymer and Surface Engineering of ICT. We also took up the cause of building a Bhojanshala at Lonavala.  It has a 6,000 square feet hall and a 2,000 square feet kitchen area with a capacity of 300 people who can dine at a time, and was completed in February, 2022.

June 02, 2023

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL), the largest manufacturer of isopropyl alcohol (IPA) in India, is planning to introduce other pharmacopeial grade solvents apart from IPA which are being used in the pharma industry.

What is DFPCL's role in India's growth story and sectors that you are focusing on?

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) plays a significant role in India's growth story, particularly in verticals like petrochemicals, fertilisers, industrial chemicals, specialty chemicals, and solar and semiconductor manufacturing. As a leading producer of industrial chemicals and fertilisers, DFPCL is well aware of the challenges facing these industries. We are a top producer of nitric acid, isopropyl alcohol (IPA), food-grade liquid carbon dioxide, and ammonia. Additionally, as mentioned earlier, we have developed a specialty product called Solar Grade Nitric Acid to be used by the PV cell manufacturers, and are planning to introduce other pharmacopeial grade solvents apart from IPA, which are being used in the pharma industry.

How is DFPCL contributing to the growth of India's pharmaceutical industry?

India is fast emerging as a global pharmaceutical hub, and we showcased our abilities during Covid-19 when the world was looking towards us to meet the vaccine requirements. To secure India’s future as global pharma leader and ensure safety of human health, the need of the hour is to manufacture safe and high-quality drugs. Safety and quality of drugs largely depends on the solvents, excipients, intermediates, and other substances used in manufacturing the formulation and API both, as well as other parameters like stringent quality control, certification, etc. The drug manufacturers must use materials only of recognised pharmacopeial grades (Indian Pharmacopoeia, US Pharmacopeia, EU Pharmacopeia, etc.). In India, as the largest manufacturer of IPA, the most used solvent in the pharma industry, we are capable of supplying any pharmacopeial grade IPA to support the requirement of the pharma industry. We are also planning to introduce other pharmacopeial grade solvents apart from IPA which are being used in the pharma industry. Keeping in mind the importance of safety of the end customer, DFPCL’s increased focus on pharma grade IPA shows its long-term commitment to the wellbeing of the end user.

What is the link between downstream industries (agro, explosives, and specialty chemicals) and India's economic growth, and how does DFPCL aim to contribute to the "Atmanirbhar Bharat" mission through innovative products?

Looking at these downstream industries closely, it is evident that these industries are directly linked to India’s growth story. Agro products are essential for food security of the growing nation. With economic development, both quality and quantity demand for food has increased. To secure this food availability, the role of fertilizers and other value-added products are undeniable.

Explosives are majorly consumed by the mining sector and infrastructure sector. Coal, metals, cement, etc. are the most important sectors for growth of the economy and heavily dependent on mining activity. Increased disposable income and growing urbanization continues to play a role in the growth of the Indian economy. This in turn is one of the key drivers for new solutions and in turn growth for specialty chemicals. India ticks many boxes that are required for growth of specialty chemicals, with the biggest potential being a large market.

The opportunity that the specialty segment offered made it exciting for us to venture into this sector. DFPCL’s legacy of leadership and delivering ‘value to our customer’ ensures that we are always thinking about innovative product ideas which are key to customer value creation. This also resonates well with the government ’Atmanirbhar Bharat’.

Emerging opportunities for DFPCL in solar, stainless steel, pharmaceutical, and semiconductor manufacturing sectors in India? How is DFPCL addressing the specific needs of each sector with its innovative and specialized products?

In the last few years, India has emerged as a solar power leader across the globe. However, despite having a large chunk of solar instalments, India’s presence in PV cell manufacturing is very low. The Indian government recently launched the PLI scheme to attract investment in this sector and launched programs like ‘National Programme on High Efficiency Solar PV (Photovoltaic) Modules’. According to estimates the Indian PV cell manufacturing capacity will soar from 4 GW in FY 2021 to about 35 GW by FY 2026. DFPCL sees a huge opportunity in this sector and to enable the sector to design one-of-its-kind specialty products – Solar Grade Nitric Acid. PV cell manufacturers can use this product to get more efficiency out of PV cells. The stringent quality measures and use of very high-quality materials is helping DFPCL in becoming the preferred supplier for PV cell manufacturers.

Looking at the emerging opportunities at sectors like stainless steel and scope for enhancing customer value, DFPCL is planning to launch one-of-its-kind specialty offering exclusively for the sector. This will be an innovative product for this sector in our country.

Like the solar sector, as India tries to establish its credentials as a hub for semiconductor manufacturing, DFPCL is ready to play a role as a partner to the sector in its growth. The company is working on an array of specialty products which will address the specific needs of this industry and help with our self-sufficiency narrative on a world stage.

The company is planning the demerger of the Mining Chemicals and Fertilizer Business. What's the update on this front?

In December 2022, Smartchem Technologies Limited Board of Directors authorised a corporate restructuring plan to maximise the growth potential of its businesses. The demerger was necessary to significantly improve customer experience, increase market share, and develop a sustainable brand. Both TAN and Crop Nutrition businesses have grown to a strategic size and importance that deserve standalone corporate identities and focused leadership in terms of growth trajectory and value creation. The strategic flexibility needed to promote long-term growth and value creation for the end users, employees, and other stakeholders will be provided by this demerger.

On January 25, 2023, the National Company Law Tribunal, Mumbai Bench (NCLT) admitted the composite scheme of arrangement filed by the company's subsidiaries, Smartchem Technologies Limited, Deepak Mining Services Private Limited, and Mahadhan Farm Technologies Private Limited. The company will abide by the NCLT's directives in due course.

Major CSR initiatives being undertaken by DFPCL in FY2022-23?

Through the Ishanya Foundation (IsFon), DFPCL has been supporting holistic rural development and empowering communities in the areas of dairy development, health, vocational training and income creation initiatives for the past 15 years with a focus on women's empowerment. By acting as an effective catalyst in DFPCL's geographies of operations, Ishanya Foundation is creating a self-reliant and respectable society with a secure and sustained means of livelihood through employment skills and resource support. In FY23 alone, Ishanya Foundation's community development initiatives touched the lives of almost 33,000 people across all locations.

June 01, 2023

The use of innovation and technology in the chemical supply chain operation has also given distributors the ability to harness their supply chain operations. 

Key global and Indian trends in the Chemicals and Ingredient Distribution business in 2023?  

The Indian chemical sector is projected to grow by 11-12% from 2021-2027 and by 7-10% from 2027-2040, thereby tripling its global market share by 2040. This phenomenal growth is fueled by a range of factors: 

Rising domestic consumption: India is expected to account for more than 20% of incremental global consumption of chemicals over the next two decades. Domestic demand is expected to rise from US $170-US $180 billion in 2021 to US $850 billion - US $1 trillion by 2040. 

Changing consumer preferences: The growing demand for bio-friendly products globally could benefit India, as it is among the leading producers of many chemicals that are used in such products. 

Shifting supply chains: Triggered by the evolving geopolitical scenario and the trend to diversify from the existing core manufacturing markets, firms are seeking to make their supply chains more resilient. With its strong value proposition, India could be a preferred destination in the “China plus one policy” for many companies. 

Over the past 5-7 years, India has made substantial improvements in its policy and regulatory environment, making it much easier for enterprises to establish themselves and flourish. India’s Ease of Doing Business Ranking jumped from number 143 in 2015 to number 63 in 2020, and its manufacturing foreign direct investment during FY16 to 20 exceeded the figure for the preceding five-year period by three times. On some parameters, however, India lags behind its peers. These include the ease of starting a business, registering property, paying taxes, and enforcing contracts. Getting timely environmental clearances (ECs) is also a major challenge in India. 

With a net trade surplus, the specialty segment is the strongest pillar of India’s chemicals sector.  

Agrochemicals: Agrochemicals in India is currently a US $5.5 billion market, growing at a CAGR of 8.3%. By 2040, it is expected to account for almost 40% of India’s overall chemical exports. 

Food and feed ingredient chemicals: Constituting flavors and fragrances, food and feed additives, and nutraceuticals, this subsegment is a US $3 billion market in India, growing at a CAGR of 7-9%. 

Inorganic Chemicals: As inorganic chemicals require little processing compared with other segments, this segment is predominantly dependent on feedstock availability. India, unfortunately, has a scarcity of raw materials for most chemicals in this segment. However, it has a high demand for many inorganic chemicals, making it an attractive market. 

The chemical distribution market, on a global scale, is likely to grow steadily over the foreseeable future due to an increasing number of chemical manufacturing unit expansions among other major regions. High demand for various commodity chemicals from the industrial manufacturing sector coupled with growth in automotive and transportation is likely to boost market growth. In terms of revenue, Asia Pacific emerged as the largest market globally for chemical distribution, with a market share of 59% in 2021.  

The specialty chemicals market is poised to reflect the fastest growth in terms of revenue, worldwide, due to increasing demand for coatings, adhesives, sealants, and elastomers (CASE), specialty polymers and resins and especially from construction, automotive, and industrial manufacturing sectors globally. 

The chemical distribution market is highly competitive in nature with companies such as Brenntag leading the market as the world’s largest distributor of chemicals and ingredients. Distribution companies in this space have an exhaustive array of product offerings and leverage on their global presence to cater to customers’ needs.  

The use of innovation and technology in the chemical supply chain operation has also given distributors the ability to harness their supply chain operations. These technologies include radio frequency identification (RFID), global positioning satellites (GPS), and Internet of things (IoT) to provide real-time data for timely and seamless order fulfillment. 

In terms of key focus areas in chemical distribution in 2023, the following are some examples: Industry focus - specific industry, region, and product line expertise with the ability to meet customer and supplier needs on a global scale; Sustainability - sustainable, and safe practices that protect the planet, help grow business, and build a better tomorrow for future generations; Technical acumen - strong innovation expertise and the ability to deliver practical solutions that meet the latest trends and regulatory requirements; and Reliability - full-service distribution capabilities and a vast network that leverages the global supply chain at the local and regional levels. 

Brenntag's performance during FY 2022-23 and update on the company's initiatives in the Essentials and Specialties Business Units during FY 2022-23? FY 2023-24 plans for Brenntag Specialties and Brenntag Essentials?

Our two divisions, “Brenntag Specialties (BSP)” and “Brenntag Essentials (BES)”, both contributed to the remarkable success by delivering an excellent performance and mostly organic growth in FY 2022. As forecasted, Brenntag Specialties grew at a stronger rate.  

Our new growth strategy, including ambitious medium-term targets for 2026, is the next phase of our company’s transformation and builds consistently on the foundations laid by “Project Brenntag” and the achievements to date. The strategy involves individual growth plans for Brenntag Specialties and Brenntag Essentials. Applying these divisional strategies and leveraging our company’s global footprint and fundamental strengths, we will further develop the differentiated profiles of our two divisions (BSP and BES) and propel their growth above the market growth rate. 

Our “Strategy to Win” also sets out a clear program for the company’s digital, data-driven transformation. We see “Digital.Data.Excellence” (DiDEX) as a key growth driver for our Group. We will drive efficiency at all levels of our organization and develop Brenntag into a data- and technology-driven business that uses its wealth of data to develop new business opportunities and smart, innovative solutions and thus generate further growth. We are evolving into an agile, flexible and, ultimately, the preferred business partner in the chemical and ingredients distribution ecosystem.  

It is also expressed in our new global branding, which we presented together with the “Strategy to Win” in November 2022. Strategy, vision, and brand – together, they are a clear signal to our business partners, shareholders, and employees that we forge ahead as global market leader, assuming responsibility and setting standards. As the global market leader, we have undertaken to promote a sustainable future. In publishing our “Future Sustainable Brenntag” strategy and vision in April 2022, we set ourselves an ambitious ESG agenda. This includes achieving net-zero emissions by 2045, increasing the extent to which we use sustainability criteria to steer our product portfolio and driving sustainability in our supply chains.  

To achieve our ambitious growth targets, Brenntag has always focused on both organic growth and growth through acquisitions as well. The global chemical distribution market remains highly fragmented and offers us exciting opportunities for consolidation. As part of “Strategy to Win”, we have therefore also increased the range for strategic M&A investments. The recent acquisitions in APAC of Aik Moh Group and Neuto Chemical Corp are just a few examples of how we have been expanding inorganically.   

Progress of “Project Brenntag”, the first step in Brenntag’s comprehensive transformation journey establishing a new operating model with two global business divisions? 

“Strategy to Win” represents the second phase in Brenntag’s transformation journey. The first phase, “Project Brenntag”, started more than two years ago and focused on implementing the new operating model with two global business divisions and clear customer segmentation, optimizing the site network, and on structurally addressing productivity improvements by 2023.  

The ambitious Project Brenntag targets included an additional annualized operating EBITDA contribution of EUR 220 million. As intended, Project Brenntag has laid the foundation and enabled the company to achieve improved sustainable organic earnings growth. 

Brenntag is the undisputed and resilient leader in an attractively growing and highly fragmented, indispensable market. We have now defined how to strengthen and expand this position. 

Our aim is to foster growth in our global divisions with clear differentiated strategies. Moreover, we build a comprehensive digital and data framework and architecture to better serve our global customer base and achieve the next level of operational efficiency, growth, and excellence. 

With our comprehensive and ambitious ‘Strategy to Win’ we aim to outpace the underlying market growth. Brenntag will play a crucial role in the ecosystem of sustainable global chemicals and ingredients distribution. 

The company is also building a comprehensive digital and data architecture to better serve its global customer base and achieve the next level of operational efficiency, growth, and excellence. Steps taken in this regard? 

Digital.Data.Excellence (DiDEX) is to be an engine of growth contributing to Brenntag’s fundamental transformation into a data and technology driven business and industry leader. Brenntag aspires to become the easiest business partner in the chemical distribution ecosystem, generate value from its data, modernize its digital business architecture and thus provide the most efficient and agile supply chain.  

In the course of this next step in its transformation, Brenntag will make targeted investments in its Digital.Data.Excellence (DiDEX) capabilities. As an omnichannel partner, Brenntag is further developing virtual platforms such as Brenntag Connect and offering new, fully digital services such as Track & Trace. The Brenntag Excellence initiative is aimed at building a stable, efficient, and streamlined organization in combination with dynamic and fast processes. The initiative supports the implementation of the new business model and digitalization, and thus enables further growth, greater customer- and supplier centricity, and more agility. 

Leveraging the potential of data with the help of special tools and business intelligence, Brenntag will make more effective use of its unique global market, customer and supply chain expertise as well as available data so as to better serve customers, better manage processes and create added value.  

Creating a scalable information technology platform Brenntag is working together with leading technology companies to build a comprehensive, scalable and modular global platform. This global platform will offer an improved digital environment and a better IT infrastructure for the company’s various functions and business units across the supply chain.  

Brenntag will play a crucial role in the ecosystem of sustainable chemicals and ingredients distribution, globally. How are you ensuring its safe distribution? 

BEST (Brenntag Enhanced Safety Thinking) is a global Brenntag initiative to improve the safety behaviour and the safety culture in the whole company. Brenntag India is a member of Responsible Care? (RC) which is a global chemical industry's initiative that drives continuous improvement in health, safety and environment (HSE). We are committed to promote sustainability, demonstrate product stewardship, make plants and surrounding communities safe as well as to constantly improve occupational health and safety and environmental protection. In March 2023, Brenntag India organized a full day training session for our transporters on the safe delivery of chemicals with a deep dive into safe transportation guidelines and application. This session was well appreciated by our transporters and have requested and are looking forward to more training sessions. 

Strategies to address the complex challenges within the supply chain resulting from geo-political situations? 

It is reported that 32% of CEOs surveyed by PWC said geopolitical conflict was a key danger to growth, and 71% said it may hinder sales. Global or regional disruptions can cost, complicate, and inefficient supply systems. Tariffs, sanctions, and other measures disrupt critical goods, providers, and markets and increase regulatory burdens. Political or military emergencies may force companies to pursue new shipping routes. 

In Brenntag, we embrace the following four-step strategy: Watch: Monitoring geopolitical events that may affect key supply regions and industries; Identify and Reviews: Identify risk exposure and conduct regular reviews by mapping known supply chain nodes; Assess: Evaluate how easily each node can be disrupted, as well as how likely an event is to happen, how bad it could be, and how well your company can handle or reduce each risk; and Plan: Plan to adapt corporate strategy and operations to changing global or regional conditions with little notice and insufficient information. Balance inventory between efficient just-in-time and shock-resilient just-in-case solutions for contingency planning. 

Growth opportunities in India and company's plans to augment India operations in FY 2023-24? 

India is one of the focus countries of growth for Brenntag in the Asia Pacific, having achieved the highest country sales growth in Brenntag Specialties for FY22. Brenntag Essentials in India has also recently brought on board a dedicated commercial director to lead the business growth in India. Brenntag India is also at present focusing on augmenting our supply chain in terms of warehousing, production and expanding application development centers to serve our customers and suppliers.                                                                                                       

How is the company striking a balance between sustainability and business priorities? Key initiatives with respect to global and Indian context? 

In Brenntag, sustainability and business go together. Brenntag India, along with its Lubricants Business Unit endorses and supports sustainability through the circular economy.  

Like last year, in May this year Brenntag India will be sponsoring and participating in the Rosefield Conference on Circular Economy in Used Oil.  

Currently India is facing challenges in used oil re-refining such as re-refining technologies to deliver the OEM-required RRBO (re-refined base oils) specifications, reverse logistics of used oil at source at fair prices, the availability of used oil for re-refining vis-a-vis other competing end uses. Brenntag is working towards being a part of the group to generate workable ideas and solutions to address these challenges by technology upgradation, collaborative efforts, segregation, and collection of used oils and to ensure used oils flows back to re-refiners efficiently. 

Brenntag India is also developing sustainable warehousing which takes into consideration various issues such as reducing operational and energy costs, minimizing land usage, reducing waste, innovative use of natural lighting, automatic lights, and other renewable energy options, water optimization sources like water flow reduction mechanisms and rainwater harvesting system, minimizing carbon footprint through solar panels and the use of biodegradable products ,eco-friendly packaging materials, recyclable shipping pallets, with furniture and fixtures being made from recyclable materials. 

Brenntag India is also a member of RSPO (Roundtable on Sustainable Palm Oil). RSPO is a global, not-for-profit organization that brings together stakeholders from across the palm oil supply chain to develop and implement global sustainable palm oil.  

CSR projects undertaken in FY 2022-23 and plans for FY 2023-24?                                                                                                              

Brenntag India has an employee-led CSR committee who spearheads our CSR initiatives, supporting NGOs engaged in various areas like: Education – upgrading rural primary School near Thane Area (Mumbai); Highway safety awareness near Thane (Mumbai); Tree plantations; Care of the aged; Upliftment of rural woman; Special and underprivileged children; Leprosy patient care, etc. 

With its “Future Sustainable Brenntag” program, the company has set itself an ambitious ESG agenda to become the leader in responsible distribution of sustainable chemicals and ingredients. Elaborate ESG agenda? 

Sustainability has been an integral part of Brenntag’s corporate strategy for many years now. Being a global market leader means bearing responsibility worldwide. Brenntag is aware of this responsibility and over the past few years has continuously expanded its sustainability organization and activities. It has established a global sustainability program and comprehensive governance structures with a view to driving the integration of numerous ESG matters into its business processes. Responsible and sustainable chemical and ingredients distribution is a fundamental element of Brenntag’s strategy; it provides the basis for Brenntag’s future as a global leader. Through its new ESG strategy, Brenntag is paving the way to achieve its long-term sustainability vision Future Sustainable Brenntag. 

The strategy comprises the following 6 focus areas: Management structures for business ethics; Portfolio and investment steering; Fair and safe employer; Responsible partner for suppliers and communities; Climate protection and reduction of emissions; and Resource efficiency and circular economy. 

All actions are guided by the United Nations Sustainable Development Goals (SDGs). Brenntag has identified eight SDGs that are of most relevance to the company and to which it can make the greatest contribution. These eight SDGs are: Good health and well-being; Gender equality; Affordable and clean energy; Decent work and economic growth; Industry, innovation and infrastructure; Reduced inequalities; Responsible consumption and production; and climate action. 

Safety is one of Brenntag’s cultural pillars and a top priority. Steps taken to reduce TRIR (Total Recordable Injury Rate – number of work-related accidents requiring medical treatment beyond first aid per one million hours worked)? 

Our aim by 2030 is to achieve a TRIR of less than 2.0 and prevent serious accidents completely. We operate in accordance with the “Safety First” 0 principle, relying strongly on personal commitment and responsibility. In order to raise employee awareness of occupational health and safety, Brenntag continuously addresses the topic through various different channels. Every year we celebrate “Safety Day” in Brenntag India. All our employees actively participate in this event by sharing Near miss reports, best safety culture practices. Brenntag has also established the “Safety First Moments”, where at the beginning of meetings employees talk about all kinds of safety issues arising in everyday professional or private life. Once a year, Brenntag presents the Global Safety Awards in two categories: Safety Excellence Award for the best safety record and Safety Phoenix Award for the strongest improvement in terms of safety. 

In addition to the strong organic growth, Brenntag also pushed ahead with four successful acquisitions strengthening its product and service portfolio and its presence in key focus industries and geographies. How will this help India and South Asia geographies for Brenntag India? 

To strengthen organic growth, Brenntag plans to drive market consolidation through M&A activity that creates value. While maintaining financial discipline, Brenntag’s focus is on expanding our position in emerging markets in both divisions, improving strategic capabilities and market positions, augmenting the existing portfolio, and improving technical capabilities. As part of the “Strategy to Win”, we have therefore also increased the range for strategic M&A investment. We are constantly on the lookout for best fit M&A opportunities, which includes India and South Asia as a growth focus region.

May 30, 2023

2023 trends in the colour solutions industry?  

Colour continues to be an important aspect for all industries. For the paints and coatings industry - Colour sector is a big trend. Industrial coating manufacturers are seeing value in outsourcing color as a product from specialty color manufacturing companies like Soujanya - as it provides them advantages in terms of offering more color choices to their customers, timely servicing of their order, and cost savings whilst getting precise quality which adheres to demanding standards of industrial coatings. For architectural coatings, the trends are moving towards better color offerings and higher performance colorants  

The home and personal care industry where we provide color solutions are seeing exciting trends where the industry is looking to outsource colorants. Traditionally this industry, especially in the color cosmetic space was used to incorporate pigment powder into products such as lipstick. The companies are now realising the value of incorporating liquid color dispersions from companies like us, which gives them enhanced colors, easy to manufacture, and time & cost savings. In short, as a color solutions provider, we see exciting trends to drive color as a key differentiator for our customers' business in each industry. This provides immense opportunities for innovation in the color space. 

Company's financial performance in FY 2022-23 and forecast for FY 2023-24?  

FY2022-23 saw uncertainty and volatility for most businesses due to the prevailing global social-economic-geopolitical situation. At Soujanya Color, despite these trends, we have managed a modest growth. For FY 2023-24 we are targeting a growth of almost 25% which will be led by a thrust on exports, expansion, and diversification plans into newer markets, newer products, and newer industries. 

Revenue mix within versus outside India for FY 2022-23 and revenue mix in FY 2024-25 with the coming up of the Mexico facility? 

Revenue mix for within versus outside India for FY 2022-23 was 75:25. For FY 2023-24, we have targeted the mix to be 70:30. For FY 2024-25, the ratio should further change to 60:40. There is an increasing thrust on exports due to global opportunities in color for each of the industries we are present in. We have currently deferred our plans for the Mexico plant and will not have the facility functional this year.  

The company has set up Soujanya Lifesciences to focus on key ingredients in the Pharmaceuticals and Agrochemicals market. What's the update on this front? 

While we started Soujanya Lifesciences division two years ago, we had made a beginning with a Research and Development lab in leased premises this year, we will inaugurate our own GMP certified state-of-the-art laboratory at Navi Mumbai where we can accelerate product and process development work. We will also cater to small pilot trials of lots of the ingredients. We are also looking to do a tie up for our own manufacturing facility, and we expect to start marketing our API’s during this year. All our plans for this division are on track and we are hoping to become a preferred chemicals supplier for selected API’s and specialty chemicals at a global level over the next few years.  

The company is planning to expand its markets both within India and outside India. Products/solutions that you are planning to launch in the market? 

For the paints and coatings industry we will be catering to a full range of color solutions for any kind of architectural or industrial paints and from in-plant tinting solutions to point-of-sale within the product categories there would be some high-performance colorants we will be launching for the automotive and wood coatings space. For the HPC (home and personal care) industry we will be launching the full range of water-based color solutions for personal care, high performance transparent color solutions for home care, and an exciting collection of color solutions for cosmetics such as lipsticks, hair color, hair dye, foundations, mascara, and eye shadow. For some of these solutions we would perhaps be the first company globally to offer sustainable bio-based solutions. We also will be making forays into the ingredients space in personal care with our beyond-color strategy. We are also launching some innovative bio-based solutions in the polyurethane space, which will be rolled out at a global level this year. 

Capex investment in FY 2022-23 and projects/facilities where the company invested? Capex plans for the company in FY 2023-24 and how will it help the company in the long term? 

In 2022-23, we made some Capex for the expansion of our existing facilities and for constructing, setting up of the R&D lab for our Life Sciences division. FY 2023-24, we will see a big investment in Capex this year as we have acquired about 10 acres of land at the JNPA Port SEZ. Given our thrust or exports, we propose to set up a 100% EOU for our colorants products here to use part of the land. Further, some new projects are on the anvil for utilisation of the remaining parts of the land over a 3–5 year time frame. The Capex will help Soujanya to double its turnover over the next 3 years. 

The company's portfolio of products is marketed under different brands. Have you made any additions to this portfolio in FY 2022-23 or plan to do so in the near future? 

New brands have been added in our home and personal care decisions with the Auratone series of water-based dispersion for soaps and detergents, the Aurablush series for color cosmetics with colors for lipsticks and nail enamels, and the Auratint series for home care applications. 

What is the total installed capacity across your manufacturing plants and how much additional capacity is added during FY 2022-23? What is your current capacity utilization and strategy to improvise it further?

Our total installed capacity was about seven million litres a year with the facility expansion that we undertook in FY 2022-23, this will get enhanced to nine million litres. The new EOU in JNPA-SEZ will see a capacity addition of a further three million litres over the next 2-3 years. We expect to utilize 70-80% of these capacities in the next two years. 

Key innovations undertaken at the company's R&D centre? How will these innovations help the company in the long run? 

We are an innovation focused company where technology is at the heart of our business and is a key driver. Each new product we launch or each new market or customer we acquire becomes a possibility only because of the innovation capability which we have built into our business. While we focus on product innovation for each new market and customer to customize a perfect solution for them, we have introduced some high-performance color solutions such as super jet black (a high jet-ness black colorant) for automotive applications during the year, which is really unique. Our entire colorant range for home & personal care was launched during the last year which comprises a collection of almost 100 new color products for different applications in this industry.  

All of the innovations launched help secure and build the future plans of the company allowing us to gain market presence and establish the technology competence of Soujanya. 

Level of automation and digitalization Projects carried out in FY 2022-23? How do you plan to move ahead on this front both on brownfield and greenfield projects?  

Our flagship facility is an automated infra facility. As we go forward, we will continue the journey of further automation and digitalization. We are working on becoming more data-driven and having the use of analysis in operations and business decision making. 

CSR projects undertaken in FY 2022-23 and plans for FY 2023-24?  

We are committed to CSR projects in education, skilling, women empowerment, sports promotion, health care, and preservation of arts and culture space. We work with partners and strive to make a real impact in whatever we do. Being a part of the paint industry, we have also done some work with the PCSC (Paint & Coating Skill Council) for the skill of painters in the country.  

How is the company striking a balance between sustainability and business growth? Key sustainability initiatives of the company? 

All growth in future has to be within the sustainability agenda. Use of bio-based raw materials wherever possible, production of water-based products, development of solvent-free products, obtaining green certificates for products, decreasing use of plastics for packaging are some of the agendas which we follow. In terms of the environment, we undertake various initiatives in our operations for saving resources such as water, power, paper, wastage, etc. Our newer facilities will have green energy as a source of power. We are audited and certified for sustainability under various regulations such as ISO 9001, ISO 14001, ISO 45002, URSA, TFS (Together for Sustainability), and Ecovadis. Our life sciences pharma lab will also be GMP certified. Overall, we are committed to the preservation of the environment for the conservation of natural resources for the future generations. 

When is Soujanya Color planning to achieve Net Carbon Zero and milestones set up by the company? 

We will be defining these goals and taking up the agendas over the next two years.

May 29, 2023

HPCL is focusing to create value and growth by strengthening existing businesses, leveraging new growth engines such as Petrochemicals and Natural Gas and seizing green and emerging opportunities with focus on technology and innovation. 

How would you explain the global trends in petrochemicals, oil, and gas in 2023 and how it will impact India?  

Global Oil Outlook: Russian announcement of a production cut of 500 kbpd from March will result in reduced supply whereas refinery capacity additions in later part of this year (Kuwait’s 584 Kbpd Al Zour, Oman’s 220 Kbpd Duqm, and 400 Kbpd in Shandong, China) will provide support to crude demand. According to IEA’s latest projection, average annual growth in oil demand is expected to show robust growth of 2 Mbpd to reach 102 Mbpd as the global economy continues to recover. Recently, OPEC has also affirmed its commitment to extend 2 Mbpd of cuts agreed in October 2022, till the end of 2023, maintaining restricted supplies for crude oil thus, the fundamentals of consistent demand growth and restricted supplies will keep crude price supportive. In the near term, refinery margins are expected to remain at current levels and it is unlikely that we will see a repeat of 2022 (record high margins). Refinery margins will remain supportive due to robust demand growth especially from India and China. Having crude oil prices and refinery margin in a stable price band will help India and HPCL as it will result in stable prices for consumers and sustainable margins for the company.  

Global Gas Outlook: Reason for an all-time high LNG prices were on account of conflict between Russia and Ukraine. Previously dominant, Russian piped gas supply to Europe has been decimated and LNG is the only meaningful supply alternative. Recent corrections in LNG prices are on account of milder winters in Europe. Since European buyers have topped all their storages ahead of winter, the lower demand and high inventories have pushed down the price. Europe’s structural pivot away from Russian supply means there will be prolonged and fierce competition, also, for uncommitted cargoes, resulting in sustained elevated price levels in Europe and Asia and however, in case of extreme weather or any unplanned shutdowns, the LNG market will be prone to price spikes.  

Global Petchem Outlook: Petrochemical demand is expected to gradually recover specially as domestic consumption in China rises during the year and Incremental cracking capacity coming online during 2023 and high feedstock prices will continue to pressure petrochemical margins.  

Key milestones achieved by HPCL in FY 2022-23 and what are the plans for FY 2023-24?

Refining milestones in FY 2022-23 - HPCL refineries have processed more than 19 MMT of crude in FY 2022-23 which is the highest ever yearly crude throughput registered by HPCL refineries. Mumbai Refinery processed 9.8 mmtpa of crude (against an installed capacity of 9.5 mmtpa), in the very first year after revamp and New Crude Distillation Unit with installed capacity of 9 mmtpa has been commissioned at Visakh Refinery towards end of March ’23, along with all associated utilities and offsite facilities. 

Marketing milestones in FY 2022-23 - The LPG infrastructure has been strengthened with the commencement of operation of 120 TMTPA new LPG plant at Barhi in the state of Orissa. Construction of a new LPG plant at Patalganga, Maharashtra has been completed during Q3 of 2022-23. Pipeline network has been expanded with commissioning of 2 major pipelines (Vijayawada-Dharmapuri and Hassan-Cherlapalli LPG pipeline) and the network length has exceeded 5,000 km and capacity crossing 36 MMTPA. Received Letter of Intent (LoI) from Petroleum and Natural Gas Regulatory Board (PNGRB) for Grant of Authorisation of 215 km long for new pipeline, Haldia-Panagarh LPG Pipeline and project execution has been initiated. The alternate fuel option to the customers has been enhanced by commissioning of 1,362 CNG facilities at retail outlets, 1,471 EV charging stations as of February 2023. The customer touch points constitute of 20,979 retail outlets, 1,638 SKO/LDO dealers, 297 Lube distributors,123 Carrying & Forwarding Agents, 736 Door-to-door delivery dispenser, and 6,272 LPG distributorships with a customer base of above 9.35 crore LPG consumers as of February 2023.  

Plans for FY 2023-24 - Completion of Visakh Refinery Modernization Project (VRMP): The Main unit (CDU-IV) has been commissioned along with all utilities and offsite facilities. Other units will be progressively commissioned in this year. Substantial improvement in refinery complexity index, enhanced distillate yield and improved GRMs are the benefits envisaged from the project.

Completion of LPG cavern, Mangalore. Completion of construction of 80,000 MT LPG Cavern at Mangalore to enhance the LPG store capacities and expanding New LPG bottling plant capacities. A New Bottling plant of 120 TMTPA at Pindwara, Rajasthan is under construction and expected to be completed in 2023.  

New verticals where HPCL is focusing and how it will impact the company?  

HPCL is focusing to create value and growth by strengthening existing businesses, leveraging new growth engines such as Petrochemicals and Natural Gas and seizing green and emerging opportunities with focus on technology and innovation. Special emphasis on Environment, Social & Governance (ESG) parameters and building strategic partnerships which shall provide competitive edge to the organization in changing business landscape. 

In Natural Gas, HPCL is participating in the entire value chain including the LNG import infrastructure, natural gas pipelines, and CGD infrastructure. Construction of 5 MMTPA LNG regasification Terminal at Chhara port by HPLNG, 100% subsidiary of HPCL, is in progress and is expected to be completed in 2023. HPCL along with its JV/subsidiaries have authorization to set up CGD infrastructure in 23 geographical areas in 12 states.   

Large-scale investments by HPCL are underway for building the petrochemical manufacturing capacities through joint venture route. For marketing of HPCL’s own produced and externally sourced petrochemical products, the ‘Route to Market’ strategy has been developed and is under implementation. The HP DURAPOL brand of petrochemicals will be further leveraged in expanding presence in Petrochemical marketing. 

The organisation is seizing the green and emerging opportunities by expanding footprints in advanced/alternative fuels. The Compressed Bio Gas (CBG) plant and advanced technology solutions are expected to be operational shortly. Expansion in renewables is being done on aggressive scale through solarisation of retail outlets, enhanced usage of renewable power for meeting the operational requirements of refineries, setting up of infrastructure for power import at refineries etc. Green Hydrogen is emerging as a clean fuel of the future.  

HPCL is setting up a 370 TPA green hydrogen plant for Visakh refinery to provide green hydrogen to meet partial requirements of the refining process in line with the National Green Hydrogen Mission. With respect to alternate fuels/energy storage new avenues of value creation in the Electric Vehicle (EV) ecosystem including battery swapping and energy storage solutions are being explored in collaboration with various technology start-ups & OEMs etc. 

The vast network of over 20,900 retail outlets of HPCL is being leveraged while foraying into emerging opportunities including non-fuel and adjacent business opportunities. 

HPCL's refining capacity is 13.97 MMTPA per annum and what's your share nationally? How are you planning to increase your capacity and market share? 

HPCL refineries recorded crude throughput of 13.97 MMT in FY 2021-22, against installed refining capacity of 15.8 MMT during the period. Mumbai Refinery completed its expansion project in FY 2021-22 and enhanced its installed capacity from 7.5 MMTPA to 9.5 MMTPA. As of 1st April 2022, HPCL refineries have a combined installed capacity of 17.8 MMTPA. During March 2023 Visakh Refinery commissioned a new Crude Distillation Unit (CDU-IV) with installed capacity of 9.0 MMTPA, as part of Visakh Refinery Modernization Project (VRMP). Capacity of Visakh Refinery will be enhanced from the current 8.3 MMTPA to 15.0 MMTPA upon completion of the VRMP project.  

With this combined installed capacity of HPCL refineries will get enhanced to 24.5 MMTPA. Further, with commissioning of 9 MMTPA greenfield refinery cum petrochemical complex, HPCL Rajasthan Refinery Limited (HRRL), combined installed capacity of HPCL refineries will be enhanced to 33.5 MMTPA. 

What is the current status of (9 MMTPA refinery capacity and 2.4 MMTPA of petrochemicals production capacity) greenfield refinery cum petrochemical complex HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra in Barmer District?

The project of setting up a 9 MMTPA Refinery cum Petrochemical complex at Barmer Rajasthan has achieved significant progress with placement of turnkey contracts for major processes and LSTK contract for associated works/utilities etc. Construction work is in progress at the site at full swing. 

What was the annual Ethanol production capacity of HPCL Biofuels Ltd. (HBL) in FY 2022-23 and plans for FY 2023-24? 

Our Ethanol production capacity is 60 KLPD each of our two plants (Lauriya & Sugauli) i.e., 120 KLPD. The units are run only for four months in a year during the sugarcane harvesting season. Our annual Ethanol production target was 13,800 KL for FY 22-23 however we have so far produced 14,689 KL. The projection for coming FY 23-24 is 15,800 KL together for both the plants.  

What is the status of City Gas Distribution (CGD) and plans for FY 2023-24? 

HPCL along with its JVs have authorization for setting up of CGD network in 23 Geographical Areas (GA’s) comprising 48 districts spread across 12 states with planned investment of over Rs. 10,000 crores during the next few years. CNG Stations have been commissioned in GA’s allotted till 10th Round of Bidding and pipeline laying/registration for D-PNG Connections has commenced. In FY 2023-24, City Gas Distribution network will be expanded in 6 GAs.  

What are the current and upcoming research initiatives at HPCL's R&D centre? Areas where you are working and how it will benefit the company in the long run?  

The key areas of research at HPCL R&D Centre include: Indigenization of Refinery Technologies; Indigenization of Chemicals/Additives/ Catalysts; Novel catalyst and additives development for key refining operations; Energy efficient process/technology development; Widening crude oil basket/opportunity by evaluating new crudes and improving product blends; Residue Upgradation for more valuable products; Exploration of alternative energy sources – Biofuels/Hydrogen/Solar; Studies in modeling & simulation of various refinery processes; Petrochemicals & Polymers; Process Intensification; Conversion of Biomass to fuels; CO2 to Fuels & Chemicals;       Batteries for Energy Storage & Fuel Cells; Providing support to refinery operations, marketing, lubes, and other SBUs of HPCL; Engine research for evaluation of fuel additives, development of clean combustion engine technology, and alternate fuel engine; and Lube formulation development. In the long run, R&D efforts will be helpful in improving refinery margins through development and implementation of indigenous process/ product/catalysts. 

HP Green R&D center (HPGRDC) is today focusing on green and alternate energies. The center uses only Green Hydrogen for running all its pilot plants on round the clock basis for more than three years. The main building in the campus is certified as “Net Zero Building”. The R&D facility is being expanded by addition of scale-up facilities for products, catalysts and additives. Large pilot plants are built to demonstrate patented technologies. Today HPGRDC has filed 445 patents within the last 7 years and already 160 of them have been granted with 50% of them from different countries. 

Is HPCL looking at all aspects of the hydrogen value chain. What are your plans for capturing Hydrogen opportunities in the country? 

HPCL-Visakh Refinery is the first refinery in India to order an industrial scale Electrolyser for Green Hydrogen production. HPCL Green R&D centre has developed technologies for Blue Hydrogen and Turquoise Hydrogen. Pilot plant is running in the R&D center for producing a novel patented process for making H-CNG which does not consume water or generate CO2. A demonstration plant for Blue Hydrogen is being set-up in Visakh Refinery. HPCL will continue to explore all possible opportunities in the hydrogen value chain.  

Capex invested in FY 2022-23 and what is the plan for FY 2023-24?           

Capex invested in FY 2022-23 is Rs. 11,114 crore (as of February 2023) and Capex planned in FY 2023-24 is Rs. 12,000 crore.   

How is the company striking a balance between environment-friendly policies and sustainable growth?  

The Government of India has implemented several environmental-friendly policies and schemes in recent years, aimed at promoting sustainable development and reducing the country's carbon footprint. Some of the key examples are:   

FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) I & II to promote the adoption of electric and hybrid vehicles in the country. 

Installation of 500 GW (gigawatt) of renewable energy capacity by 2030 will involve an investment of at least Rs. 2.44 lakh crore.  

‘Sustainable Alternative towards Affordable Transportation (SATAT)’ scheme to promote the use of compressed biogas (CBG) as a clean fuel for transportation. The scheme aims to set up 5,000 CBG plants by 2025 and promote the use of CBG in vehicles. 

Biofuel Policy launched with the aim of reducing India's dependence on fossil fuels and promoting the use of biofuels. The policy aims to achieve a 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2025.  

Increasing the share of natural gas in its primary energy to 15 per cent by 2030.  

The National Green Hydrogen Mission has been launched with the aim of promoting the use of green hydrogen as a fuel. The mission aims to generate hydrogen from renewable energy sources and use it in various sectors such as transportation, industry, and power generation.

India has set a goal to reduce its greenhouse gas emissions intensity of its GDP by 33-35% from 2005 levels by 2030. This goal was announced by Prime Minister Narendra Modi at the 2015 United Nations Climate Change Conference (COP21) in Paris. 

The objectives of these policies and schemes are to promote sustainable development, reduce greenhouse gas emissions, promote clean energy, and improve air quality in the country. HPCL is actively participating in all the schemes towards sustainable growth and is striking a balance between environment-friendly policies and sustainable growth with various actions, which are detailed as under: 

In Participation in the EV ecosystem, Battery e-Swap Station was launched at Bengaluru under the tie-up with Honda Power Pack Energy India Pvt. Ltd. (Subsidiary of Honda Motor). HPCL also tied up with Hero MotoCorp for setting-up charging infrastructure for two-wheeler electric vehicles (EVs) across the country, thereby providing a fillip to mass mobility’s transition towards an electrified future. As of February 2023, 18 battery-swapping stations were installed at various locations along with EV charging stations. The number of EV charging stations has crossed 1470 numbers as of February 2023.  

In renewable business, the existing portfolio is being strengthened with the setting up of solar capacities at various locations. Solarisation was completed at 2,860 retail outlets during Apr-Feb’23, taking the total number to 9,271 as of Feb'23. ~44% of HPCL retail outlets operate on renewable energy. 

Under the SATAT scheme, HPCL has released 474 LoIs (Letter of Intent) with CBG production capacity of 2,576.2 Tonnes per Day (equivalent to 940.3 TMTPA) for setting up of CBG plants to eligible entrepreneurs. 

In Biofuels, HPCL is actively participating in the Ethanol blending programme and has reached to the level of about 11%. HPCL is setting up 100 KLPD 2G ethanol refinery at Bathinda and 14 TPD capacity compressed biogas plant at Budaun in Uttar Pradesh. A cow dung based CBG plant is being set up at Pathmeda in Rajasthan. HPCL is participating in the entire value chain of Natural gas. 

HPCL is also setting up a 370 TPA Green Hydrogen infrastructure at Vizag Refinery.  

The above actions shall help HPCL achieve sustainable growth. 

When are you planning to become Net Carbon Zero and what are the different milestones set by the company?  

HPCL declared its plans to reach net-zero in Scope 1&2 by 2040. HPCL have also identified key levers in reaching net-zero such as enhancing energy efficiencies in own operations, fuel switch to bio gas in refineries, usage of 100% renewable power in refineries and replacement of hydrogen requirement by green hydrogen, abatement using CCUS/Offsets etc. In addition, for reduction in Scope 3 emissions, HPCL has plans to transform its product portfolio with low/no carbon fuels and thereby reducing the overall emission intensity of the company.  

What are the key CSR initiatives being undertaken by the company in FY 2022-23 and plans for FY 2023-24? 

HPCL has undertaken various CSR activities since its incorporation in many parts of the country for the welfare and development of underprivileged communities in order to make them self-dependent. CSR of the Corporation has been in-sync with various prevailing statutes and guidelines. The details of CSR activities undertaken by HPCL are provided below: 

Project ADAPT; Children with Special Needs: Project ADAPT aims to enhance the quality of life of Children with Disabilities (CwD) through provision of online education, individual training and therapeutic treatment. In addition to online educational classes for ‘Children with Disabilities (CwD)’ uninterrupted therapy services were provided through Tele-Rehab, which emerged as a key vehicle for delivery of services. This new model of providing online services helped the parents and the beneficiaries cope with the pandemic.  

Project Nanhi Kali; Girl Child Education: Project Nanhi Kali provides holistic development and support academic pursuit of girl children from tribal and urban slum locations. The project addresses ‘challenges and constraints’ faced due to gender gap in communities and aims to develop gender equality. During the year, ‘Nanhi Kali’ girls were provided with online remedial classes, material kits, sports curriculum and other guidance & counselling on personal hygiene and career development.  

Project Dhanwantari; Rural Healthcare Program: To provide diagnosis, treatment and health awareness, Mobile Medical Vans (MMV) are operated as ‘Reach-In approach’ to the people residing in rural and urban slum communities. The MMV offers basic medicines, consultation and referrals. The majority of beneficiaries are women, children and elderly from less-privileged sections of society whose general health is neglected due to poverty and lack of resources, awareness and facilities. 

Project Dil without Bill; Heart surgeries of Children: Awareness camps are carried out for identifying patients from lower income groups, especially children with heart ailments and support for conducting heart surgeries is granted. 

Project Suraksha; Khushi Clinics: To arrest the spread of HIV / AIDS and STIs amongst truck drivers, Khushi clinics are operative on highways. The project provides AIDS awareness, STI treatment and basic healthcare facilities.  

Project Kashmir Super-50 Medical: This project supports the ‘Sadhbhavna’ (Goodwill) efforts undertaken by the Indian Army in Kashmir valley. This project provides mentoring and coaching to aspiring students from Jammu and Kashmir Region for preparing them for various Medical entrance exams in India. This residential training program gives wings to academic aspirations of youth for their career development.  

Project Ladakh Ignited Minds Super- 45 ‘Medical & Engineering’: This project supports the Indian Army’s initiative in ‘Winning Hearts and Minds’ of the local population. This project supports the less-privileged yet aspiring students of Ladakh Region in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs. 

Project Kargil Ignited Minds - 50 ‘Medical & Engineering’: This project supports the less-privileged yet aspiring girl students of Kargil District in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs (1st batch during 2022-23).

Project White Knight Centre ‘Medical & Engineering’: This project supports the less-privileged yet aspiring students from Rajouri and Poonch District in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs (1st batch during 2022-23). 

Swachhta Pakhwada: ‘Swachhta Pakhwada’ Campaign by undertaking various initiatives to spread awareness through all HPCL locations and involving more than 20 Lakh stakeholders across the country. For the Swachhta Pakhwada campaign held during the period 1st – 15th July, 2022, HPCL was awarded among top three Oil and Gas CPSEs by the Ministry of Petroleum and Natural Gas. 

Community Development: HPCL has conducted various field-level activities with special focus on all round development of society especially women. These projects and field activities undertaken by HPCL aim to provide basic amenities in rural areas. Activities like support to old age homes, orphanages, Anganwadi, providing basic amenities in schools, improvement of rural infrastructure, improvement of basic infrastructure in Government Hospitals have supported the development of local communities. Scholarships for students from weaker sections (SC, ST, OBC and PwD) in schools and colleges were provided amongst which more than 50% beneficiaries are girl students. Contribution made to Armed Forces Flag Day Fund (AFFDF) for the care, support, welfare and rehabilitation schemes for Ex-Servicemen (ESM) and their dependents. 

Provisional CSR Action Plan for FY 2023-24: The ‘Ongoing Projects’ shall be continued and implemented as part of CSR Action Plan for FY 23-24. We shall undertake CSR projects in Corporations’ focus areas viz. Education, Healthcare, Sports, Skill Development and Environment & Community Development. Some of the prominent ‘Ongoing Projects’ are: Support for upgradation and modernization of Gujarat Science City, Ahmedabad; Reconstruction & Restoration of Shri Kedarnath town and surrounding areas; and Construction & redevelopment of Shri Badrinath town as a smart spiritual hill town. 

May 27, 2023

Our future expansion plans will strongly support our ambition of Rs. 5,000 crore revenue. These future projects can be in the existing product line and even new product line where we will be first in India 

What are the global trends in the chemical sector in 2023?   

The chemicals sector is slowly but surely bouncing back and returning to pre-pandemic levels. With far reaching applications in multiple industries like oil & gas, construction, plumbing, paints, textiles, among others, the chemicals sector is bound to witness growth. In a long term perspective, domestic as well as global demand for chemicals is improving and is expected to grow steadily, however for 2023, we see it a bit subdued due to the global slowdown. Currently, global demand has hit rock bottom but we anticipate it to pick up very soon. India and the Asian region will see higher growth rates owing to increasing population and momentum from China+1 and Europe+1 strategies. Moreover, global players are also eyeing diversification of their supplier base as well. These factors make us deeply optimistic about the chemical sector.  

How would you rate the company's financial performance in FY 2022-23? What's the forecast for FY 2023-24?  

Our 9-month revenue in FY 2022-23, EBITDA and PAT have surpassed entire FY22 numbers. In 9M FY23, we achieved 55% revenue growth, 60% in EBITDA, and 80% in PAT. For Q3 FY23, we witnessed 18% YoY volume growth as our newly commissioned plant (ECH, CPVC Resin, and additional capacity of Caustic Soda) started contributing marginally. These plants will start optimum volume contribution from Q4 FY23 onwards. So, we are moving in line with our plans despite a volatile market.   

In FY24, we expect all our newly commissioned plants to reach at optimum capacity levels, which will boost volume growth for this year. Additionally, as these are high-value products as compared to our previous portfolio, they will drive value growth for coming years as well.   

The company aspires to reach a revenue of Rs. 5,000 crore by 2027. What is the plan and strategy to achieve this target? 

Over the last several years, we have progressed on the basis of volume growth as we continuously expanded. In FY23, we commissioned India’s first Epichlorohydrin plant, India’s largest CPVC Resin plant, and also added an additional capacity of Caustic Soda. These will have a major impact on our volumes as well as revenues which in turn accelerate our FY24 growth.  

Further, we are increasing our CPVC Resin capacity to 75,000 TPA and entering into the Chlorotoluene value chain. Both projects to be commissioned by the end of FY24. These plants will lay a strong foundation for our business in FY25. To add further, our future expansion plans will strongly support our ambition of Rs. 5,000 crore revenue. These future projects can be in the existing product line and even new product line where we will be first in India and where we can strengthen our integrated complex. The new land we bought in Dahej will help us implement our expansion plans for the coming five to seven years. So, we are all geared for continuous growth. 

How has the performance of the company been in different segments - Caustic Soda, Caustic Potash, Chlorine, Hydrogen, Chloromethanes, Hydrogen Peroxide, Epichlorohydrin, and CPVC Resin in FY 2022-23. What's the future roadmap?   

We witnessed good growth in the Chlor-Alkali segment (Caustic Soda and Caustic Potash) as the realizations were at an all time high compared to previous years, which resulted in good margins as well. As of now, realization from this segment is cooling off in line with raw material price variations. We commissioned an additional capacity of 1,06,000 TPA Caustic Soda in September 2022 which is expected to reach optimum levels by end of Q4 FY23 and will bring volume growth in FY24. 

We also saw around 50% growth in our Derivative and Specialty segment, on account of major volume growth from Hydrogen Peroxide and marginal growth from Chloromethanes. Plus, the new products commissioned, i.e. CPVC Resin and Epichlorohydrin, also started contributing to volume and value growth. CPVC Resin reached optimum capacity utilization in December itself, hence we are further expanding its capacity to 75 KTPA, by adding another 45 KTPA. We expect FY23 to end with the Derivatives & Specialty segment contributing around 30% of revenue compared to that of 25% in FY22. Contribution from the Derivatives & Specialty segment will keep on increasing as all our future expansion plans are in this segment.    

What was the Capex investment in FY 2022-23 and projects/facilities where the company has invested? Plans for the company in FY 2023-24 and how will it help in the long term?  

For FY2023, we have planned to spend around Rs. 370 crore in Capex. This is and will be utilised for expansions in Epichlorohydrin, CPVC Resin, Chlorotoluene and value chain, additional capacity of Caustic Soda, R&D, and new land. In FY24, we expect to shell out around Rs. 350 - Rs. 400 crore for Capex which will be spent towards Chlorotoluene and value chain, additional capacity of CPVC Resin, and other projects that we will announce as the board approves them. 

This all and future Capex will bring us volume growth in the coming years. Amount spent on R&D will strengthen our position in the Specialty chemical segment while that spent on acquiring land in Dahej will be a step towards removing a bottleneck of land scarcity for our future growth. 

MFL has commissioned an additional 106,000 TPA capacity of Caustic Soda. With this move, what is your total capacity currently and which industries/segments will this extra capacity cater to? 

Our total capacity stands at 4,00,000 TPA of Caustic Soda and 132 MW of captive power plant. Our additional production will go to the industries which we are currently serving. Apart from these, our newly commissioned Epichlorohydrin plant will consume Caustic Soda, Chlorine and Hydrogen; and the CPVC Resin plant will consume Chlorine. Additional capacity of Caustic Soda expansion was in line with that of the Derivatives and Specialty segment (CPVC Resin and ECH), in terms of Chlorine and Hydrogen consumption. So this will further strengthen our integrated complex. 

The company has commissioned India's 1st Epichlorohydrin plant and largest CPVC resin plant in 2022. What is the value additions and revenue expectations? 

There are various benefits of entering into the products mentioned earlier. Epichlorohydrin and CPVC Resin will consume Chlorine, Caustic Soda, and Hydrogen as a part of raw materials; hence, entering into this product will strengthen our integration. Again, Epichlorohydrin and CPVC Resin have good markets and are expected to grow in double-digit percentage in coming years. By entering into this product we will be equipped to cater to new industries unexplored earlier, so we have diversified our customer base and further de-risked our business model. If we consider current market price, then one can expect revenue of approximately Rs. 480 crore in Epichlorohydrin and approximately Rs. 360 crore from CPVC Resin.

 Any update on the company's expansion plans into Chlorotoluene and its value chain? Capex planned for the project, capacity and expected timelines?

Our expansion into Chlorotoluene and its value chain is moving as planned and is on schedule and we expect to commission it in Q4 FY24.   

Meghmani Finechem Limited (MFL) is also increasing its CPVC resin capacity to 75,000 TPA, by adding another 45,000 TPA. Capacity and expected timeline for completion? 

We are coming up with an additional capacity of 45,000 TPA of CPVC Resin. This additional plant will get commissioned in Q4 FY24. Post this, our total capacity in CPVC resin will stand at 75,000 TPA. 

MFL plans to set up an R&D facility in Ahmedabad to strengthen its position in Specialty Chemicals? What are key areas of focus for new innovations?

We are entering into the Chlorotoluene and value chain. The Capex that we have announced is Phase I. When we enter further down, the line value chain in Phase II, R&D will play a crucial role. Also, it will be playing a key role for future molecules in our Specialty Chemicals segment. 

Level of automation and digitalization projects carried out in FY 2022-23? How do you plan to move ahead on this front both on brownfield and greenfield projects?   

At MFL, we firmly believe that investing in technology is a continuous journey. However, all our plants have the latest technology and equipment through which we achieve improved efficiency, and better output with lesser input and wastage. For smooth functioning of plants, we have adopted modern automated technology which enables us to effectively monitor and control through central systems. It proves crucial to take key decisions and prompt actions in trying situations. We also have the latest tools and systems up and working for various departments that help us in analytics that give us an edge over the others. 

MFL is foraying into green energy through a JV to set up an 18.34 MW wind-solar hybrid power plant. What is the Capex for this project and when it is expected to get commissioned?  

We understand the need and significance of environmental conservation and are proactively working on reducing carbon footprints through efficient manufacturing processes and precautions thereof. We are entering into a JV with ReNew Green Energy Solutions - where we will invest around Rs. 20.5 crore in the form of equity for 26% stake in SPV - to set up an 18.34 MW wind solar hybrid power plant. This plant will equip us to fulfil our energy needs through renewable sources. We expect this project to get fully commissioned in Q1 FY24.  

Key ESG projects initiated by the company and how have you fared? 

Conserving the environment is always our prime focus while selecting products and technology. We have always used the latest and the best technology to manage critical resources, so as to moderate consumption of energy & water and also generate lesser wastage. This has been our continuous focus. For example, in our Epichlorohydrin plant, we selected Glycerol-based technology, where raw material is from renewable resource and the consumption of energy and water is far lesser as compared to traditional technology, i.e. Propylene-based. 

We proactively invest in talent training, safety of employees and the community around the plant. We are focused on strengthening relationships with customers and vendors and serving the community around our plant. 

We are focused on maintaining the highest level of governance at Meghmani Finechem. We have a strong board consisting 50% of Independent Directors with vast experience and qualifications who are active in all our committees. We have regular and stringent internal audits that are reported to an Audit Committee chaired by an Independent director. We are quite focused on ESG and are in constant drive to make it stronger.

 When is MFL planning to achieve Net Carbon Zero and what are the milestones set up by the company?

We have taken several steps to reduce carbon footprints and have adopted technologies to reduce usage of limited resources, control inputs while optimizing outputs. We have chosen Glycerol based technology for manufacturing Epichlorohydrin where major raw material Glycerine is from renewable resources and processes consume less water and power. We have entered into 18.34 MW wind solar hybrid power plant to reduce carbon emission and contribution to the environment. We have been able to strike considerable balance between manufacturing processes and environmental impact. We have set internal targets and persistently work hard to achieve them. 

CSR projects undertaken in FY 2022-23 in health, education, and sports? Plans for FY 2023-24?  

We believe in inclusive growth and have taken up various initiatives to improve health, education and women empowerment in all these years. We provided education to marginalized sections through Sardardham, Margraksh and Achala Foundation Trusts. We provided shelter to 300 working marginalized women in Ahmedabad, Rajkot and Vadodara. We also addressed nutrition needs of around 500 people every Sunday at their homes and 150 patients in their hospital beds through Margraksh program. Similarly, we have contributed in many ways for skill development, educational assistance and medical assistance through various programs. We have been active to support the society in all possible ways and we will continue doing so in the future.

May 26, 2023

Brahmaputra Cracker and Polymer Limited (BCPL) is planning to increase its market share by a new capacity addition of 1,200 KTPA in the coming years. The company has embarked upon its way forward to increase its capacity by 140% from existing 280 KTPA in the first phase while further capacity addition will be carried out in the next phase 

BCPL recently celebrated its 16th anniversary. What are the key milestones achieved by the company in the last 16 years? 

BCPL celebrated its 16th Foundation Day on 8th January 2023 at BCPL Petrochemical Complex, Dibrugarh. It has been a very successful journey for this mega petrochemical plant in the NER (North Eastern Region) till date and it is contributing nearly around 3% of the total national polymer production. First and most important milestone achieved by BCPL was its commissioning on 2nd January, 2016 and the subsequent dedication to the nation by Prime Minister Narendra Modi on 5th February, 2016. 

From the operation point of view, BCPL achieved 100% production capacity in the 3rd year of operation and thereafter achieved its maiden profit. BCPL has always been in the forefront of digitisation by implementing SAP SE and allied digital machine tools for critical monitoring of systems in its operation to transform and take the company to newer heights. 

The many awards and recognitions have been bagged by BCPL like ISO 15001, ISO 14001, ISO 45001, NABL accreditation, FICCI Chemicals and Petrochemicals Award, Annual Greentech Environment/Safety/Energy award, Best Company award from Berkshire Media, Safety Award from National Safety Council of India, and many more. Whatever we have achieved so far is the outcome of the inspiration, efforts, and contributions of everyone associated directly or indirectly with the company. 

How did BCPL perform in FY 2022-23 and what is the expectation from FY 2023-24?

The last financial year was a mixed bag for BCPL in terms of polymer production and profitability. During FY 2022-23, the spiraling domestic gas prices in India along with lower polymer prices in the market had impacted the company financials. However, due to the various proactive actions taken by BCPL, the performance is expected to end on a positive note, although with reduced profits. 

BCPL has a positive outlook in the current polymer market in India for the FY 2023-24. It is estimated that India’s polymer demand will rise to 14.53 million tonnes in FY 2023-24 which is nearly 7% increase over previous year. 

It is also supported by Government of India initiatives like the Make in India, Atmanirbhar Bharat, Jal Jeevan Mission, etc. All these Govt. schemes will boost domestic production and reduce import of polymers and thereby ensure overall growth and development of the entire polymer industry – from raw materials to consumption. It is seen that from 1960 onwards, India’s petrochemical demand increased by 2-3 times every decade and demand is expected to grow to 30 million tonnes by 2030 and 60 million tonnes by 2040. 

What is the BCPL’s group refining/processing capacity per annum and what is your share nationally? How do you plan to increase your market share? 

The nameplate production capacity of BCPL is 280 KTPA of Linear Low-Density Polyethylene, High-Density Polyethylene and Polypropylene with a market share of nearly around 3% of total national polymer production. 

BCPL is planning to increase its market share by a new capacity addition of 1,200 KTPA in the coming years. BCPL is in active discussion with process licensors and EPC contractors along with feedstock suppliers like OIL and ONGC and others for additional natural gas supply. Also, BCPL is looking at various options for the additional Naphtha requirement. To achieve the set target within the timeline, BCPL has embarked upon its way forward to increase its capacity by 140% from existing 280 KTPA in the first phase while further capacity addition will be carried out in the next phase. 

How is the performance of BCPL’s Petrochemical complex at Lepetkata in Assam and what are your expansion plans? 

BCPL’s performance has been excellent in terms of polymer production and profitability, and it has a market share of over 90% in the NER. BCPL is well positioned to export polymers to the neighbouring ASEAN and BBN countries. Free trade agreements (FTAs) of the SAARC (SAFTA) and Govt of India Initiative for water transport and Economic Cooperation (BIMSTEC) is boosting economic integration not only in Southeast Asia but also between India and Bangladesh. Being amongst the largest importer of polymer, Bangladesh is giving a viable opportunity for BCPL to establish its footprint in the international polymer market. 

The Northeast of India is endowed with huge untapped natural resources and is acknowledged as the eastern gateway of India’s Look-East Policy. In this context, BCPL has set up its top priority to utilize more natural gas available in the region to produce additional polymers by increasing its capacity. 

What role BCPL sees for itself in the Hydrocarbon Vision 2030 for North East India? 

BCPL is downstream of the hydrocarbon sector as an end user of natural gas as well as the marketing and distribution of products derived from natural gas. It is expected that there will be surplus natural gas for the petrochemical industry in the NER once the natural gas production touches around 15.3 MMSCMD by 2029-30 as envisaged in the HC vision 2030 along with the commissioning of the natural gas grid of IGGL. With increasing natural gas availability in the region, BCPL has prepared a road map for its expansion in the near future to align with HC vision 2030. 

What is the scope of downstream plastic industries in North East India? 

Presently BCPL is selling approximately 38 KT per annum of polymer in the Northeast and the figure is expected to increase with the setting up of more downstream industries. BCPL is offering special incentives to the downstream industries of North East (NE) and promoting the Tinsukia Plastic Park by offering special incentives to the units being set up in the park. Brands like Milton, Supreme, and HUL are using BCPL polymers and have large set-ups in the North East. Overall the polymer scenario of NE looks very promising.

Capex investment made in FY 2022-23 and projects where investment was made? What is the plan for FY 2023-24?

At present BCPL is setting up two value addition plants viz. Butene-1 and HPG-2 at a cost of Rs. 386.75 crore. During the year, the company incurred capex of approximately Rs. 60 crore for the same. In addition, BCPL is incurring Capex for upgradation/modernization of various capital equipment of the existing petrochemical complex.

The Capex for 2023-24 will be incurred for balance work of the ongoing Butene-1 and HPG-2 project, construction of a multi-product storage facility at Haldia and procurement of other capital equipment.

What is your plan for the development of alternate technologies for the production of biodegradable plastics? 

Biodegradable polymers (BDPs) or biodegradable plastics refer to polymeric materials that are ‘capable of undergoing decomposition into carbon dioxide, methane, water, inorganic compounds or biomass in which the predominant mechanism is the enzymatic action of microorganisms that can be measured by standardized tests, in a specified period, reflecting available disposal condition. Recently, significant progress has been made in the development of biodegradable plastics, largely from renewable natural resources to produce biodegradable materials with similar functionality to that of oil-based polymers. 

Biodegradable polymers will play a greater role in the packaging sector in the future. However, cost of production and raw materials availability is one of the major concerns. Also, disposal issues also exist since it is unsuitable for landfill due to their potential to release methane under anaerobic conditions. BCPL is closely watching the progress of biodegradable polymers technologies and allied support systems and is hopeful to get suitable solutions soon to address the current concerns.

 What are your plans for automation and digitalization at BCPL?

Digital transformation is one of the core initiatives being undertaken by BCPL to increase asset utilization through higher manufacturing efficiency, including the efficiencies of all sites and integrated value chains. It is only possible by using advanced digital methods to create our own brand in the market and transform operations faster than the competitor. 

BCPL is a digitally driven company with all operations covered through DCS to meet the present requirement as well as the future needs and thereby ensuring the safety of people and the environment. BCPL is considering advanced control algorithms in DCS in order to further improve productivity with minimum human interface in all the complex operations in near future. 

Management Information System is another area BCPL is focusing to integrate all processes for better decision-making and ease of access to all information. BCPL has identified the next level of automation in its bagging unit for better customer management with proper planning and timely execution to save time and increase work effectiveness considerably. This technological transformation will also entail creation of a new work culture in the organisation. 

How is BCPL striking a balance between environment-friendly policies and sustainable growth? 

While focusing on growth, BCPL is simultaneously considering various Clean Technology Scenarios (CTS) to curb air and water pollution and at the same time reduce CO2 emission. To reduce CO2 emission, BCPL is in active discussion with OIL for CCS of pure CO2. BCPL is also reprocessing high calorific value waste in cement industries to take care of the environment under guidance from the central and state pollution control board. BCPL is also exploring diversification into green energy sectors as a future progress engine as part of sustainable growth and retrofitting existing plants with latest technologies for lower CO2 emissions. 

What is your marketing strategy for Petrochemicals? 

Marketing of BCPL polymers is being done by GAIL through a marketing agreement. However, BCPL has ensured that the prices of BCPL polymer in NE has been kept competitive vis a vis competitors and other locations. In this regard, BCPL is offering special incentives to the downstream industries of NE and promoting the Tinsukia plastic park by offering special discounts to the units being set up in the park. 

CSR initiatives to be undertaken by the company in FY 2023-24? 

BCPL entered the CSR regime from FY 2020-21 and continues its endeavor to contribute to the well-being of the communities and society through various environmental and social measures to promote inclusive growth. The CSR projects are being implemented around Health & Nutrition, Promotion of Education, Swachhata and Sanitization Projects, Projects on Skill Enhancement and Alternative Livelihood Promotion & Sustainable Development and Rural Development, etc. However, a major part of the funds is being allocated to Health & Nutrition considering the recent global pandemic situation. 

Where do you see BCPL in the next 5 years?

The plastic industry is one of the fastest growing industries in India. It has expanded at around 8% CAGR over the last five years and is expected to grow at around 5-7.5% in the next 5 years owing to increased demand of polymers backed by high population growth, increasing disposable income and lack of better substitutes for such products. With increasing per capita consumption of polymers in NER, there is a tremendous scope for the growth of the polymer industry. 

Considering the last 5 years’ performance, BCPL has made significant contributions to the national economy and has been able to achieve its mission by establishing a remarkable presence in the north-east region in the petrochemical sector with a market share of over 90%. 

With the completion of the envisaged capacity expansion projects along with diversification and digitalization, BCPL is confident of soaring to newer heights in terms of customer satisfaction, visibility, profitability, safety, sustainability, etc. in the next 5 years. 

When are you planning to achieve Net Carbon Zero and how are you planning to achieve it?

Prime Minister Narendra Modi has set India’s long-term goal of reaching net-zero by 2070 at the Glasgow summit. India is the world's fourth biggest emitter of carbon dioxide after China, the US, and the EU. In line with our promoter GAIL’s target, BCPL has also set 2045 as the timeline for achieving net zero carbon emission. India emitted 1.9 tonnes of CO2 per head of population in 2019, compared with 15.5 tonnes for the US and 12.5 tonnes for Russia in the same period. 

To achieve net zero, BCPL has identified three main areas which will help to build long term resilience, greater trust and a better tomorrow. First and foremost, improvement in process operations to the next level by adding new climate reliant technologies which will not only reduce carbon footprint but also make us align with the best national and international benchmark index. Energy mix is a part of net neutrality for BCPL where more and more energy will be utilized from non-fossil sources like green hydrogen, green methanol and solar energy etc. in a requisite proposition in the future to reduce carbon footprint. 

Secondly, BCPL is in active consideration of Carbon Capture & Sequestration (CCS) which is a proven emissions reduction solution, permanently removing CO2 from the atmosphere. In this direction, BCPL and OIL are joining hands and are in discussion to utilize CO2 in Enhanced Oil Recovery (EOR) in the oil fields in the coming days. 

Thirdly, BCPL is also embarking upon nature-based offsetting of carbon as a part of de-carbonization with mass greenbelt development. Even though it is a time consuming process and a large area is required for plantation, it is a grassroot level visible program for achieving net zero. 

BCPL is also proactively looking at all other feasible options available to achieve the same with the targeted time.

May 24, 2023

Anupam Rasayan India’s capex is going on as per plan. In the last nine months, the company has invested over Rs. 100 crore in various capex projects, including brownfield expansions, R&D facilities, and solar projects. For the next year, the company would be deploying Rs. 300-350 crores.

2023 global trends in agrochemicals, personal care, pharmaceuticals, pigments, specialty dyes, and polymer additives?  

In 2023, the chemical industry is in a strong financial position. The growth of all the segments that we cater to is driven by increasing demand for certain specialized chemicals. The growth of agrochemicals is attributed to the increasing demand for crop protection products in the field of agriculture across the globe. Similarly, personal care is focused on innovative active ingredients and natural and organic products. Increasing demand for advanced drugs and demand for active pharmaceutical chemicals are major growth drivers of the pharma market. Pigments, specialty dyes, and polymer additives are witnessing demand from across allied sectors like aerospace, defence, aviation, textiles, and paints & coatings across the globe. Overall, the global trends in chemicals will be positive and sustainable. 

2023 global trends in custom synthesis manufacturing in India?

One of the major trends in custom synthesis manufacturing in India is the increasing focus on innovation. As customers become more demanding and competition intensifies, manufacturers are investing in research and development to create new and improved products. This trend is driving the adoption of advanced technologies, such as flow chemistry and photochemistry, to accelerate the development process and enhance safety standards. 

Another trend in custom synthesis manufacturing in India is the growing emphasis on sustainability. With an increasing number of customers demanding eco-friendly products, manufacturers are adopting sustainable practices and materials to meet this demand. This includes the use of renewable energy sources, such as solar power, and the development of biodegradable materials that reduce environmental impact. 

In addition to these trends, there is also a growing demand for flexibility in custom synthesis manufacturing. Customers are looking for manufacturers that can provide customized solutions that meet their specific needs and requirements.  

Overall, the global trends in custom synthesis manufacturing in India reflect a growing focus on innovation, sustainability, and flexibility. As the industry continues to evolve, we can expect to see continued investment in research and development, as well as the adoption of advanced technologies and sustainable practices. Manufacturers that can provide customized solutions and flexible manufacturing processes will be best positioned to succeed in this dynamic and competitive market. 

How has Anupam Rasayan performed during FY2022-23? Plans for FY 2023-24 for Life Sciences related Specialty Chemicals and other Specialty Chemicals? 

Despite macro challenges and shut down of one of the units we have still delivered a good set of numbers till 9M FY2023. We have a strong product pipeline to be launched in coming quarters and we remain focused on strengthening our business development team. Going forward, our revenue growth will be driven by ramping up current products to new/existing clients and through higher wallet share through new product launches. In FY24, we are also planning to launch 6-8 new molecules in life science and other specialty segments.   

Revenue mix is 62:38 with respect to outside India and within India. Do you see any change in FY 2024-25? 

We expect export revenue to increase as we are signing a lot of new contracts with global MNCs, and recently we have also signed two new contracts with Japanese MNCs. So, we expect this ratio to be 70:30 going forward with majority revenue coming from Japan, Europe, and North America.   

Have you completed the integration of Tanfac? How do you plan to leverage Tanfac with existing and future expansion plans in 2023?

Integration of verticals like Finance, HR, and IT has been completed. Tanfac acquisition would certainly continue to play a key role in providing uninterrupted access to raw material required for fluorination like HF and KF. This would support future expansion of product series under fluorination, will bring down dependency on overall import and also will create a sustainable supply chain. 

The company has a strong order pipeline in FY 2022-23. What is the order pipeline till date and how do you plan to move with respect to its execution in FY 2023-24?

Yes, we have signed contracts and LoI (Letter of Intent) worth Rs. 2,620 crore in FY22. We have also signed two contracts with one of the leading European crop protection companies for supplying two niche life science-related specialty chemicals in Q3 FY23. Recently, we announced signing a letter of Intent worth revenue of US $120 million (Rs. 984 crores) for the next 6 years with one of the leading Japanese chemical companies. 

We are starting to see the trend of India being chosen as the preferred manufacturing base for strategic chemical products. We plan to add a few more niche products in Anupam’s product portfolio in the near term as part of Europe plus one strategy that will help us to add more clients from Europe, America, and Japan. 

The company has deployed Flow Process technology but is now embracing technologies like Photo and Vapor Phase. How will this technology help the company?

The adoption of new technologies is always an exciting opportunity for companies like ours to enhance our operations and drive innovation. In this case, the deployment of Photo and Vapor Phase technologies is expected to bring numerous benefits to us. One of the primary advantages of Photo and Vapor Phase technologies is their ability to increase efficiency in the manufacturing process of the specialty chemicals we provide. These technologies allow for more precise and controlled reactions, reducing the amount of time and resources needed to produce the desired outcome of these chemicals. This can result in cost savings for the company and increased productivity. 

In addition to improved efficiency, these technologies can also enhance product quality. The precise control offered by these technologies can lead to more consistent and reliable results, ensuring that the final product meets or exceeds customer expectations. This can result in increased customer satisfaction and loyalty. 

Another benefit of these technologies in our segment is their environmental friendliness. These technologies typically use less energy and generate less waste than traditional manufacturing processes, resulting in a smaller carbon footprint. This can help the company to meet sustainability goals and appeal to environmentally-conscious consumers. The adoption of new technologies can also improve a company's competitiveness in the market. 

Capex invested in FY 2022-23 and projects where investment was made? Capex plans for FY 2023-24? Focus on the new plants which are coming up in Jhagadia and Sachin?

Our capex is going on as per plan. In the last nine months, we have invested over Rs. 100 crore in various capex projects, including brownfield expansions, R&D facilities, and solar projects. We expect this brownfield expansion project of Rs. 670 crores to be completed as per the planned schedule and this would provide enough capacity for growth in the next three to four years. For the next year, we would be deploying Rs. 300-350 crores. 

On the R&D front, the company is focusing on green manufacturing and green growth. Likely impact of innovation on Anupam Rasayan in short term and long term?

We have adopted a holistic approach to sustainability that encompasses every aspect of its operations, including our research and development (R&D) approach. In our R&D approach, we place a strong emphasis on developing sustainable and environmentally friendly chemical processes. We have invested in state-of-the-art technologies that enable us to minimize waste, reduce energy consumption, and lower our carbon footprint. 

We have also implemented green chemistry principles in our R&D activities. This approach involves designing chemical processes and products that are safe, efficient, and environmentally friendly. By adopting this approach, our aim is to minimize the use of hazardous chemicals and reduce the generation of toxic waste. 

In house R&D located at Sachin Unit 6 has played a key role in expansion of commercialized portfolio. How many products were commercialized in FY 2022-23 and plans for FY 2023-24?

During the first 9 months (9M FY23) of the year, four numbers of products were commercialized and the final product count has reached 50. We have around 90 products that are under the pipeline at the R&D and pilot plant, we are planning to commercialise 6-8 new molecules every year. 

Initiatives for enhancing process safety across all processes to make operation intrinsically safe?

First let’s start with manufacturing. This area is mainly focused on reducing process risks. Now, since we aim to reduce the risk of malfunctions, along with our in-house safety standards we also aim to achieve global reputed safety standards.  

Our in-house safety standards are quite comprehensive as we conduct various tests at all stages of product development. This means right from the R&D laboratory Level to the Pilot test level, these tests help us collect and evaluate the safety data of a product which is then converted to an SOP for manufacturing prior to the product being taken into the plant for commercial production. 

We also follow safety measures in transportation and storage processes too. We follow Chemical Transportation Risk Assessments where the chemical handling and movement guidelines/procedures are prepared along with emergency management. Additionally, we have also invested in state-of-the-art safety equipment and infrastructure to ensure that its operations are intrinsically safe. We as a company aim to not only provide a safe working environment but also be leaders in the innovation of safety processes. 

Sustainability roadmap of Anupam Rasayan and when are you planning to become Net Carbon Zero? What are your sustainability plans?

At Anupam Rasayan, we are aware of the effects of climate change and thus make an arduous effort to promote sustainable operations and reduce our environmental footprint. We have set a target of a 10% absolute reduction in GHG emissions by 2030. 

Being in alignment with our corporate philosophy of ‘Sustainable Manufacturing and Consistent Growth’, we are transparent with our sustainable efforts and roadmap. This indicates our long-term, medium-term and short-term actions and non-financial goals that help increase our company’s sustainability through value-driven management.

Waste management systems, investing in renewable energy resources and increasing training hours of employees are some of our goals going ahead. Our roadmap also helps us identify key risks, mitigation strategies, and priority areas.

May 18, 2023

How would you explain the global trends in petrochemicals, oil, and gas in 2023 and how it will impact India?  

Global Oil Outlook: Russian announcement of a production cut of 500 kbpd from March will result in reduced supply whereas refinery capacity additions in later part of this year (Kuwait’s 584 Kbpd Al Zour, Oman’s 220 Kbpd Duqm, and 400 Kbpd in Shandong, China) will provide support to crude demand. According to IEA’s latest projection, average annual growth in oil demand is expected to show robust growth of 2 Mbpd to reach 102 Mbpd as the global economy continues to recover. Recently, OPEC has also affirmed its commitment to extend 2 Mbpd of cuts agreed in October 2022, till the end of 2023, maintaining restricted supplies for crude oil thus, the fundamentals of consistent demand growth and restricted supplies will keep crude price supportive. In the near term, refinery margins are expected to remain at current levels and it is unlikely that we will see a repeat of 2022 (record high margins). Refinery margins will remain supportive due to robust demand growth especially from India and China. Having crude oil prices and refinery margin in a stable price band will help India and HPCL as it will result in stable prices for consumers and sustainable margins for the company.  

Global Gas Outlook: Reason for an all-time high LNG prices were on account of conflict between Russia and Ukraine. Previously dominant, Russian piped gas supply to Europe has been decimated and LNG is the only meaningful supply alternative. Recent corrections in LNG prices are on account of milder winters in Europe. Since European buyers have topped all their storages ahead of winter, the lower demand and high inventories have pushed down the price. Europe’s structural pivot away from Russian supply means there will be prolonged and fierce competition, also, for uncommitted cargoes, resulting in sustained elevated price levels in Europe and Asia and however, in case of extreme weather or any unplanned shutdowns, the LNG market will be prone to price spikes.  

Global Petchem Outlook: Petrochemical demand is expected to gradually recover specially as domestic consumption in China rises during the year and Incremental cracking capacity coming online during 2023 and high feedstock prices will continue to pressure petrochemical margins.  

Key milestones achieved by HPCL in FY 2022-23 and what are the plans for FY 2023-24?

Refining milestones in FY 2022-23 - HPCL refineries have processed more than 19 MMT of crude in FY 2022-23 which is the highest ever yearly crude throughput registered by HPCL refineries. Mumbai Refinery processed 9.8 mmtpa of crude (against an installed capacity of 9.5 mmtpa), in the very first year after revamp and New Crude Distillation Unit with installed capacity of 9 mmtpa has been commissioned at Visakh Refinery towards end of March ’23, along with all associated utilities and offsite facilities. 

Marketing milestones in FY 2022-23 - The LPG infrastructure has been strengthened with the commencement of operation of 120 TMTPA new LPG plant at Barhi in the state of Orissa. Construction of a new LPG plant at Patalganga, Maharashtra has been completed during Q3 of 2022-23. Pipeline network has been expanded with commissioning of 2 major pipelines (Vijayawada-Dharmapuri and Hassan-Cherlapalli LPG pipeline) and the network length has exceeded 5,000 km and capacity crossing 36 MMTPA. Received Letter of Intent (LoI) from Petroleum and Natural Gas Regulatory Board (PNGRB) for Grant of Authorisation of 215 km long for new pipeline, Haldia-Panagarh LPG Pipeline and project execution has been initiated. The alternate fuel option to the customers has been enhanced by commissioning of 1,362 CNG facilities at retail outlets, 1,471 EV charging stations as of February 2023. The customer touch points constitute of 20,979 retail outlets, 1,638 SKO/LDO dealers, 297 Lube distributors,123 Carrying & Forwarding Agents, 736 Door-to-door delivery dispenser, and 6,272 LPG distributorships with a customer base of above 9.35 crore LPG consumers as of February 2023.  

Plans for FY 2023-24 - Completion of Visakh Refinery Modernization Project (VRMP): The Main unit (CDU-IV) has been commissioned along with all utilities and offsite facilities. Other units will be progressively commissioned in this year. Substantial improvement in refinery complexity index, enhanced distillate yield and improved GRMs are the benefits envisaged from the project. 

Completion of LPG cavern, Mangalore. Completion of construction of 80,000 MT LPG Cavern at Mangalore to enhance the LPG store capacities and expanding New LPG bottling plant capacities. A New Bottling plant of 120 TMTPA at Pindwara, Rajasthan is under construction and expected to be completed in 2023.  

New verticals where HPCL is focusing and how it will impact the company?  

HPCL is focusing to create value and growth by strengthening existing businesses, leveraging new growth engines such as Petrochemicals and Natural Gas and seizing green and emerging opportunities with focus on technology and innovation. Special emphasis on Environment, Social & Governance (ESG) parameters and building strategic partnerships which shall provide competitive edge to the organization in changing business landscape. 

In Natural Gas, HPCL is participating in the entire value chain including the LNG import infrastructure, natural gas pipelines, and CGD infrastructure. Construction of 5 MMTPA LNG regasification Terminal at Chhara port by HPLNG, 100% subsidiary of HPCL, is in progress and is expected to be completed in 2023. HPCL along with its JV/subsidiaries have authorization to set up CGD infrastructure in 23 geographical areas in 12 states.   

Large-scale investments by HPCL are underway for building the petrochemical manufacturing capacities through joint venture route. For marketing of HPCL’s own produced and externally sourced petrochemical products, the ‘Route to Market’ strategy has been developed and is under implementation. The HP DURAPOL brand of petrochemicals will be further leveraged in expanding presence in Petrochemical marketing. 

The organisation is seizing the green and emerging opportunities by expanding footprints in advanced/alternative fuels. The Compressed Bio Gas (CBG) plant and advanced technology solutions are expected to be operational shortly. Expansion in renewables is being done on aggressive scale through solarisation of retail outlets, enhanced usage of renewable power for meeting the operational requirements of refineries, setting up of infrastructure for power import at refineries etc. Green Hydrogen is emerging as a clean fuel of the future.  

HPCL is setting up a 370 TPA green hydrogen plant for Visakh refinery to provide green hydrogen to meet partial requirements of the refining process in line with the National Green Hydrogen Mission. With respect to alternate fuels/energy storage new avenues of value creation in the Electric Vehicle (EV) ecosystem including battery swapping and energy storage solutions are being explored in collaboration with various technology start-ups & OEMs etc. 

The vast network of over 20,900 retail outlets of HPCL is being leveraged while foraying into emerging opportunities including non-fuel and adjacent business opportunities. 

HPCL's refining capacity is 13.97 MMTPA per annum and what's your share nationally? How are you planning to increase your capacity and market share? 

HPCL refineries recorded crude throughput of 13.97 MMT in FY 2021-22, against installed refining capacity of 15.8 MMT during the period. Mumbai Refinery completed its expansion project in FY 2021-22 and enhanced its installed capacity from 7.5 MMTPA to 9.5 MMTPA. As of 1st April 2022, HPCL refineries have a combined installed capacity of 17.8 MMTPA. During March 2023 Visakh Refinery commissioned a new Crude Distillation Unit (CDU-IV) with installed capacity of 9.0 MMTPA, as part of Visakh Refinery Modernization Project (VRMP). Capacity of Visakh Refinery will be enhanced from the current 8.3 MMTPA to 15.0 MMTPA upon completion of the VRMP project.  

With this combined installed capacity of HPCL refineries will get enhanced to 24.5 MMTPA. Further, with commissioning of 9 MMTPA greenfield refinery cum petrochemical complex, HPCL Rajasthan Refinery Limited (HRRL), combined installed capacity of HPCL refineries will be enhanced to 33.5 MMTPA. 

What is the current status of (9 MMTPA refinery capacity and 2.4 MMTPA of petrochemicals production capacity) greenfield refinery cum petrochemical complex HPCL Rajasthan Refinery Limited (HRRL) at Pachpadra in Barmer District?

The project of setting up a 9 MMTPA Refinery cum Petrochemical complex at Barmer Rajasthan has achieved significant progress with placement of turnkey contracts for major processes and LSTK contract for associated works/utilities etc. Construction work is in progress at the site at full swing. 

What was the annual Ethanol production capacity of HPCL Biofuels Ltd. (HBL) in FY 2022-23 and plans for FY 2023-24? 

Our Ethanol production capacity is 60 KLPD each of our two plants (Lauriya & Sugauli) i.e., 120 KLPD. The units are run only for four months in a year during the sugarcane harvesting season. Our annual Ethanol production target was 13,800 KL for FY 22-23 however we have so far produced 14,689 KL. The projection for coming FY 23-24 is 15,800 KL together for both the plants.  

What is the status of City Gas Distribution (CGD) and plans for FY 2023-24? 

HPCL along with its JVs have authorization for setting up of CGD network in 23 Geographical Areas (GA’s) comprising 48 districts spread across 12 states with planned investment of over Rs. 10,000 crores during the next few years. CNG Stations have been commissioned in GA’s allotted till 10th Round of Bidding and pipeline laying/registration for D-PNG Connections has commenced. In FY 2023-24, City Gas Distribution network will be expanded in 6 GAs.  

What are the current and upcoming research initiatives at HPCL's R&D centre? Areas where you are working and how it will benefit the company in the long run?  

The key areas of research at HPCL R&D Centre include: Indigenization of Refinery Technologies; Indigenization of Chemicals/Additives/ Catalysts; Novel catalyst and additives development for key refining operations; Energy efficient process/technology development; Widening crude oil basket/opportunity by evaluating new crudes and improving product blends; Residue Upgradation for more valuable products; Exploration of alternative energy sources – Biofuels/Hydrogen/Solar; Studies in modeling & simulation of various refinery processes; Petrochemicals & Polymers; Process Intensification; Conversion of Biomass to fuels; CO2 to Fuels & Chemicals; Batteries for Energy Storage & Fuel Cells; Providing support to refinery operations, marketing, lubes, and other SBUs of HPCL; Engine research for evaluation of fuel additives, development of clean combustion engine technology, and alternate fuel engine; and Lube formulation development. In the long run, R&D efforts will be helpful in improving refinery margins through development and implementation of indigenous process/ product/catalysts. 

HP Green R&D center (HPGRDC) is today focusing on green and alternate energies. The center uses only Green Hydrogen for running all its pilot plants on round the clock basis for more than three years. The main building in the campus is certified as “Net Zero Building”. The R&D facility is being expanded by addition of scale-up facilities for products, catalysts and additives. Large pilot plants are built to demonstrate patented technologies. Today HPGRDC has filed 445 patents within the last 7 years and already 160 of them have been granted with 50% of them from different countries. 

Is HPCL looking at all aspects of the hydrogen value chain. What are your plans for capturing Hydrogen opportunities in the country? 

HPCL-Visakh Refinery is the first refinery in India to order an industrial scale Electrolyser for Green Hydrogen production. HPCL Green R&D centre has developed technologies for Blue Hydrogen and Turquoise Hydrogen. Pilot plant is running in the R&D center for producing a novel patented process for making H-CNG which does not consume water or generate CO2. A demonstration plant for Blue Hydrogen is being set-up in Visakh Refinery. HPCL will continue to explore all possible opportunities in the hydrogen value chain.  

Capex invested in FY 2022-23 and what is the plan for FY 2023-24?           

Capex invested in FY 2022-23 is Rs. 11,114 crore (as of February 2023) and Capex planned in FY 2023-24 is Rs. 12,000 crore.   

How is the company striking a balance between environment-friendly policies and sustainable growth?  

The Government of India has implemented several environmental-friendly policies and schemes in recent years, aimed at promoting sustainable development and reducing the country's carbon footprint. Some of the key examples are:   

FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) I & II to promote the adoption of electric and hybrid vehicles in the country. 

Installation of 500 GW (gigawatt) of renewable energy capacity by 2030 will involve an investment of at least Rs. 2.44 lakh crore.  

‘Sustainable Alternative towards Affordable Transportation (SATAT)’ scheme to promote the use of compressed biogas (CBG) as a clean fuel for transportation. The scheme aims to set up 5,000 CBG plants by 2025 and promote the use of CBG in vehicles.

 Biofuel Policy launched with the aim of reducing India's dependence on fossil fuels and promoting the use of biofuels. The policy aims to achieve a 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2025.  

Increasing the share of natural gas in its primary energy to 15 per cent by 2030.  

The National Green Hydrogen Mission has been launched with the aim of promoting the use of green hydrogen as a fuel. The mission aims to generate hydrogen from renewable energy sources and use it in various sectors such as transportation, industry, and power generation.

India has set a goal to reduce its greenhouse gas emissions intensity of its GDP by 33-35% from 2005 levels by 2030. This goal was announced by Prime Minister Narendra Modi at the 2015 United Nations Climate Change Conference (COP21) in Paris. 

The objectives of these policies and schemes are to promote sustainable development, reduce greenhouse gas emissions, promote clean energy, and improve air quality in the country. HPCL is actively participating in all the schemes towards sustainable growth and is striking a balance between environment-friendly policies and sustainable growth with various actions, which are detailed as under: 

In Participation in the EV ecosystem, Battery e-Swap Station was launched at Bengaluru under the tie-up with Honda Power Pack Energy India Pvt. Ltd. (Subsidiary of Honda Motor). HPCL also tied up with Hero MotoCorp for setting-up charging infrastructure for two-wheeler electric vehicles (EVs) across the country, thereby providing a fillip to mass mobility’s transition towards an electrified future. As of February 2023, 18 battery-swapping stations were installed at various locations along with EV charging stations. The number of EV charging stations has crossed 1470 numbers as of February 2023.  

In renewable business, the existing portfolio is being strengthened with the setting up of solar capacities at various locations. Solarisation was completed at 2,860 retail outlets during Apr-Feb’23, taking the total number to 9,271 as of Feb'23. ~44% of HPCL retail outlets operate on renewable energy. 

Under the SATAT scheme, HPCL has released 474 LoIs (Letter of Intent) with CBG production capacity of 2,576.2 Tonnes per Day (equivalent to 940.3 TMTPA) for setting up of CBG plants to eligible entrepreneurs.  

In Biofuels, HPCL is actively participating in the Ethanol blending programme and has reached to the level of about 11%. HPCL is setting up 100 KLPD 2G ethanol refinery at Bathinda and 14 TPD capacity compressed biogas plant at Budaun in Uttar Pradesh. A cow dung based CBG plant is being set up at Pathmeda in Rajasthan. HPCL is participating in the entire value chain of Natural gas.  

HPCL is also setting up a 370 TPA Green Hydrogen infrastructure at Vizag Refinery.  

The above actions shall help HPCL achieve sustainable growth. 

When are you planning to become Net Carbon Zero and what are the different milestones set by the company?  

HPCL declared its plans to reach net-zero in Scope 1&2 by 2040. HPCL have also identified key levers in reaching net-zero such as enhancing energy efficiencies in own operations, fuel switch to bio gas in refineries, usage of 100% renewable power in refineries and replacement of hydrogen requirement by green hydrogen, abatement using CCUS/Offsets etc. In addition, for reduction in Scope 3 emissions, HPCL has plans to transform its product portfolio with low/no carbon fuels and thereby reducing the overall emission intensity of the company.  

What are the key CSR initiatives being undertaken by the company in FY 2022-23 and plans for FY 2023-24? 

HPCL has undertaken various CSR activities since its incorporation in many parts of the country for the welfare and development of underprivileged communities in order to make them self-dependent. CSR of the Corporation has been in-sync with various prevailing statutes and guidelines. The details of CSR activities undertaken by HPCL are provided below: 

Project ADAPT; Children with Special Needs: Project ADAPT aims to enhance the quality of life of Children with Disabilities (CwD) through provision of online education, individual training and therapeutic treatment. In addition to online educational classes for ‘Children with Disabilities (CwD)’ uninterrupted therapy services were provided through Tele-Rehab, which emerged as a key vehicle for delivery of services. This new model of providing online services helped the parents and the beneficiaries cope with the pandemic.  

Project Nanhi Kali; Girl Child Education: Project Nanhi Kali provides holistic development and support academic pursuit of girl children from tribal and urban slum locations. The project addresses ‘challenges and constraints’ faced due to gender gap in communities and aims to develop gender equality. During the year, ‘Nanhi Kali’ girls were provided with online remedial classes, material kits, sports curriculum and other guidance & counselling on personal hygiene and career development.  

Project Dhanwantari; Rural Healthcare Program: To provide diagnosis, treatment and health awareness, Mobile Medical Vans (MMV) are operated as ‘Reach-In approach’ to the people residing in rural and urban slum communities. The MMV offers basic medicines, consultation and referrals. The majority of beneficiaries are women, children and elderly from less-privileged sections of society whose general health is neglected due to poverty and lack of resources, awareness and facilities. 

Project Dil without Bill; Heart surgeries of Children: Awareness camps are carried out for identifying patients from lower income groups, especially children with heart ailments and support for conducting heart surgeries is granted. 

Project Suraksha; Khushi Clinics: To arrest the spread of HIV / AIDS and STIs amongst truck drivers, Khushi clinics are operative on highways. The project provides AIDS awareness, STI treatment and basic healthcare facilities.  

Project Kashmir Super-50 Medical: This project supports the ‘Sadhbhavna’ (Goodwill) efforts undertaken by the Indian Army in Kashmir valley. This project provides mentoring and coaching to aspiring students from Jammu and Kashmir Region for preparing them for various Medical entrance exams in India. This residential training program gives wings to academic aspirations of youth for their career development.  

Project Ladakh Ignited Minds Super- 45 ‘Medical & Engineering’: This project supports the Indian Army’s initiative in ‘Winning Hearts and Minds’ of the local population. This project supports the less-privileged yet aspiring students of Ladakh Region in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs. 

Project Kargil Ignited Minds - 50 ‘Medical & Engineering’: This project supports the less-privileged yet aspiring girl students of Kargil District in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs (1st batch during 2022-23). 

Project White Knight Centre ‘Medical & Engineering’: This project supports the less-privileged yet aspiring students from Rajouri and Poonch District in enabling them to compete in various streams like Engineering, Medical and other career-oriented programs (1st batch during 2022-23). 

Swachhta Pakhwada: ‘Swachhta Pakhwada’ Campaign by undertaking various initiatives to spread awareness through all HPCL locations and involving more than 20 Lakh stakeholders across the country. For the Swachhta Pakhwada campaign held during the period 1st – 15th July, 2022, HPCL was awarded among top three Oil and Gas CPSEs by the Ministry of Petroleum and Natural Gas. 

Community Development: HPCL has conducted various field-level activities with special focus on all round development of society especially women. These projects and field activities undertaken by HPCL aim to provide basic amenities in rural areas. Activities like support to old age homes, orphanages, Anganwadi, providing basic amenities in schools, improvement of rural infrastructure, improvement of basic infrastructure in Government Hospitals have supported the development of local communities. Scholarships for students from weaker sections (SC, ST, OBC and PwD) in schools and colleges were provided amongst which more than 50% beneficiaries are girl students. Contribution made to Armed Forces Flag Day Fund (AFFDF) for the care, support, welfare and rehabilitation schemes for Ex-Servicemen (ESM) and their dependents.  

Provisional CSR Action Plan for FY 2023-24: The ‘Ongoing Projects’ shall be continued and implemented as part of CSR Action Plan for FY 23-24. We shall undertake CSR projects in Corporations’ focus areas viz. Education, Healthcare, Sports, Skill Development and Environment & Community Development. Some of the prominent ‘Ongoing Projects’ are: Support for upgradation and modernization of Gujarat Science City, Ahmedabad; Reconstruction & Restoration of Shri Kedarnath town and surrounding areas; and Construction & redevelopment of Shri Badrinath town as a smart spiritual hill town.