June 14, 2023

Gujarat Fluorochemicals Limited financial performance in FY 2022-23 and plans for FY 2023-24? Key achievements in FY 2022-23?

In the 9 months ended Dec 2022, we have reported a revenue of Rs. 4,213 crore as against Rs. 3,954 crore for the full year FY 2022, while our EBITDA and PAT for the 9 months ended Dec 2022 stood at Rs. 1,518 crore and Rs. 991 crore respectively as against Rs. 1,198 crore and Rs. 775 crore for the full year FY 2022. We are incurring a Capex of Rs. 1,250 crore for FY23 and FY24 each. Most of the Capex this year is towards expanding our new fluoropolymers portfolio and for the next year it will be more towards the EV segment, both battery chemicals, and fluoropolymers used in the EV space.

GFL is the only manufacturer of PTFE/Flouropolymer in India. Are you planning to set up more such exclusive manufacturing facilities in India for other products?

Yes, we have plans of rapid expansion in terms of adding capacities to our existing Fluoropolymer portfolio for applications in electric vehicle batteries, solar films, and hydrogen fuel cells. Our vertically integrated operations help us to maximize value addition.

GFL's Jolva facility is focusing on Fluoropolymers, Specialty, and New Age Chemicals and presently is under phased commissioning. Please elaborate? 

Our Jolva facility is a part of continuous expansion of the existing products and new age chemicals. Customers understand and appreciate our customized products, local presence, just-in-time deliveries, and continuous engagement with customers, which is reflected in the increase in demand for our products. We plan to start commercial operations of our New Age Chemicals by the end of 2023.

GFL is in the process of setting up an integrated battery chemicals complex. What's the update in terms of Capex, timeline, and battery chemicals products to be manufactured in the complex?

At GFL, we give utmost importance to sustainability and the environment. In an effort to contribute to global carbon neutrality goals, we have invested in the integrated battery chemicals complex. With our own fluorspar mines and electronic grade AHF manufacturing facility, we plan to manufacture electrolyte salts such as LiPF6 and other value-added products.

The company is setting up India’s first PVDF solar film project which will be commissioned in the next financial year. What's the update in terms of Capex and timeline?

We leveraged our vertically integrated facility to enter the segment of PVDF films. At a time when India and the world have set aggressive solar energy targets, it is highly important to scale local production of relevant raw materials such as PVDF films. This plant is planned to be commissioned by the second quarter of the current financial year.

On the export front, the company is a major supplier of Fluoropolymers to Europe and USA. How are you planning to increase your export market share?

We will continue to work closely with our customers on upcoming projects and develop greener products to provide value addition. We will play our role as a preferred supplier of fluoropolymers that are of utmost importance for major applications in Europe and USA. We will also continue to take all necessary steps to make sure products are consistently supplied to customers at the right time.

Global trends in Bulk Chemicals and Fluorochemicals in 2023?

Due to Montreal protocol regulations the uses of HCFC have been restricted and are being phased out gradually. The demand for HCFC thus is shrinking globally. HCFCs are being replaced by HFCs. The markets for HFCs are growing globally at about 7-8%. However, GFL is targeting 20% annual growth for HFC. 

Key sustainability and CSR initiatives planned for FY 2023-24?

As far as sustainability is concerned, the biggest challenge today in our industry to build a strong product life cycle is to balance economic and environmental sustainability.

This includes adherence to strict global regulatory compliance and meeting the challenging demands of customers for environment-friendly products. In addition, we also seek efficient and cost-effective methods of producing our products, reducing waste and emissions and ensuring safe handling/disposal of chemicals throughout the product life cycle.

We consistently monitor dynamic regulatory changes and have consequently moved away from chemicals of concern in our fluoropolymer product line.

At GFL, giving back to the community is part of our corporate philosophy. As corporate citizens, we are committed to acting in an economically, socially and ecologically responsible manner and coordinating the interests of various stakeholder groups. We strive to create a more sustainable company and have a positive impact on our communities, society and the planet.

Are you planning to completely switch to green/renewable power? If yes, by what time frame?

We at GFL have already invested a substantial part in renewable power. For full switchover we shall abide by India’s time frame.

The company has invested a Capex of Rs. 1,250 crores in FY 2022-23 and facilities where it has invested? Facilities where it is planning to invest Rs. 1,250 crores in FY 2023-24?

At this moment, we will mainly be investing in fluoropolymers, battery chemicals and intermediates. Going forward we shall be looking towards newer segments as and when we see a demand and opportunity arising at a domestic and international level.

DST approved Research and Application development centers are focusing both on new businesses as well as existing businesses. How are you planning to leverage your innovation centers?

If you look at the current investments that we are doing, it is basically by developing new grades of our products for new age sectors such as uses and applications in 5G, EVs, semiconductor, Green hydrogen, etc.

GFL has also taken up projects to indigenously develop and produce PEM membranes. Any update on this front?

Yes, as already discussed previously, lab products have been developed, a prototype plant is under construction. We shall soon be ready for commercially viable grades.

GFL is well equipped to cater to the fluoropolymers required for the hydrogen electrolysers, fuel cells, and charging stations. What kind of fluoropolymers are you planning to manufacture to cater to these segments and by when?

A variety of Fluoropolymers, like PFA, PVDF, and PTFE are already being used in such areas for the hydrogen electrolysers, fuel cells, and EV charging stations. We have several products for these segments and shall complete the remaining ones also in the next couple of years.

June 12, 2023

Huntsman introduced a new range of materials that offer exceptional strength, durability, flexibility and are designed to meet the growing demand for lightweight, high-performance materials in various industries. The company also launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength 

2023 trends in Polyurethanes, Advanced Materials, and Performance Products? 

We are very optimistic about the future of Polyurethanes in India, given the country's position as one of the fastest-growing markets. Over the past decade, we have seen exponential growth in the Polyurethane industry, driven by diverse opportunities in consumer sectors such as footwear, automobiles, appliances, and construction. This growth has been further supported by a sizable middle-class and affluent youth population. 

We believe that sustainability will be a key focus for the industry going forward, and we are committed to developing new materials that are both high-performing and environmentally responsible. In addition, we see a growing demand for advanced materials that offer unique properties and characteristics, such as improved durability and enhanced comfort. At Huntsman, we are investing in research and development and collaborating with our partners to develop solutions that meet the evolving needs of our customers and the world around us. 

The composites industry has also received a huge boost with the transition from conventional rebar to composite options. This shift represents a significant step towards a future where more substantial structures can be built using reinforced materials. If the construction market can rely on composite materials, it will be a major achievement for the industry. Overall, we are excited about the possibilities for Polyurethanes and advanced materials in India and around the world, and we are committed to leading the way in innovation and sustainability. 

Key milestones achieved by Huntsman India in FY 2022-23 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have reached several significant milestones that reflect our unwavering commitment to excellence. We were honoured to be recognized by the industry for our outstanding performance in safety. Our retention of ICC approval to use Responsible Care underlines our commitment to sustainability and environmental stewardship. We also introduced a new range of materials that offer exceptional strength, durability, and flexibility. These materials are designed to meet the growing demand for lightweight, high-performance materials in various industries. Additionally, we launched new formulations of epoxy resins and curing agents that provide superior adhesion, corrosion protection, and mechanical strength. 

Our commitment to sustainable innovation in the chemical industry is evident in our development of TEROL. This bio-based alternative to traditional materials is derived from recycled PET bottles and has been advanced for use in footwear and insulation applications. Incorporating TEROL into our products not only makes a statement on sustainability but also provides customers with high-performing, eco-friendly solutions that meet their needs while reducing waste and environmental impact. 

Furthermore, we're proud to have made significant strides in addressing the changing needs of the automotive industry, particularly with the rapid growth of Electric Vehicles (EVs) in India. Our Polyurethanes business has developed a renewed portfolio of Polyurethane solutions to meet the demands of the evolving automotive market, including materials for thermal management, lightweighting, and noise reduction in EV battery systems. At Huntsman, we're committed to creating a better future through our sustainable products and practices.  

Are you planning to manufacture battery materials in India? If yes, battery material products that Huntsman India is planning to manufacture and market? 

We are committed to contributing to the growth of the Indian Electric Vehicle (EV) market and the country's transition to a cleaner and greener future. As a leading Specialty Chemicals manufacturer, we provide comprehensive casting and impregnating resin systems for various EV components, including batteries. We are currently exploring various opportunities, which would further support the government's vision of developing a robust domestic EV ecosystem. 

Our battery material products are specifically designed to meet the unique requirements of the Indian market, including increased safety, lightweighting, and improved performance features. We offer technical support and expertise to assist EV manufacturers in selecting the right materials for their specific applications, ensuring that they meet the highest standards of quality and reliability. Through our innovative products and services, we are committed to accelerating the transition towards a more sustainable transportation system. Our goal is to provide cutting-edge solutions that support the growth of the Indian EV industry and contribute to a cleaner, greener future for all.  

How is Huntsman India striking a balance between environment friendly policies and sustainable growth? 

Huntsman India is committed to promoting sustainable growth while minimizing our environmental footprint. We strive to balance our growth objectives with environmental responsibility by implementing policies and practices that reduce waste, conserve resources, and promote sustainable development. Our Responsible Care commitment is the cornerstone of our approach, and we have established several initiatives to support this effort, such as improving our energy efficiency, reducing our greenhouse gas emissions, and launching a water conservation project aimed at improving water efficiency and reducing net water usage. We also leverage our expertise in chemistry to develop innovative products and processes that promote sustainability. For example, our TEROL product line offers a credible recycled alternative to traditional materials that reduce waste. We are constantly exploring new ways to innovate and provide sustainable solutions that meet the needs of our customers. 

In summary, Huntsman India is committed to promoting sustainable growth by implementing environmental policies and practices, leveraging chemistry expertise to develop sustainable products and processes, and engaging with all stakeholders to foster collaboration and promote responsible practices. Our goal is to contribute to a cleaner and greener future for all. 

Sustainability plans for Huntsman India keeping in view carbon neutrality, full circularity, and sustainable chemistry with respect to Horizon 2025 targets? 

Huntsman India is committed to achieving the ambitious goals outlined in Huntsman Corporation's Horizon 2025 sustainability strategy. This strategy sets targets for reducing the company's environmental footprint, promoting sustainable chemistry, and advancing the circular economy. 

With respect to carbon neutrality, Huntsman India has already made progress towards reducing greenhouse gas emissions and improving energy efficiency through initiatives such as the installation of a solar facility at our manufacturing plant in Chakan, Pune. We will continue to pursue a variety of measures to reduce our carbon footprint, including the use of renewable energy sources, energy-efficient technologies, and process improvements. 

Huntsman India is also committed to advancing the circular economy by developing innovative products and processes that promote the use of recycled materials and reduce waste. We are actively exploring ways to incorporate circularity principles into our manufacturing processes and supply chain management practices, with a goal of achieving full circularity. 

Finally, we are committed to promoting sustainable chemistry by developing products that meet the highest standards of safety, performance, and environmental responsibility. Our Bio-based product line is just one example of our efforts to develop sustainable alternatives to traditional materials, and we will continue to invest in research and development to identify new opportunities for sustainable chemistry. 

CSR initiatives completed by Huntsman in FY 2022-23 and plans for FY 2023-24?

At Huntsman, we place equal importance on the safety of our employees and the health and wellbeing of the communities in which we work. Several initiatives have been carried out by our dedicated corporate social responsibility team across our locations which enables us to access the ultimate key: the licence to operate. These include a setting up of a high school near our plant in Chakan Pune, our primary health care facility supported the administration of over one lakh COVID-19 vaccines in and around Chakan, setting up a drinking water supply unit benefitting 5,000 villagers around Padra and also offering scholarships worth Rs. one lakh to deserving students in the Padra region of Gujarat.  

We are running medical mobile clinics which have covered 55,000 people from 18 villages in Chakan and over 25,000 people in Navi Mumbai. Our integrated rural development project Badlav has benefitted around 30,000 villagers across 10 villages both in Maharashtra and Gujarat. Under Anandi, our holistic education development programme, we have covered over 7,000 students. Lastly, our initiative to make rural Chakan an open defecation free region is going well. We have already covered two villages by building sanitation facilities in each house of the village thus benefiting over 300 people in the region.  

Huntsman India plans for FY 2023-24 with respect to Polyurethanes, Advanced Materials, and Performance Products?

We have an ambitious plan for 2023 that focuses on innovation and growth across all business segments, including Polyurethanes, Advanced Materials, and Performance Products. 

Polyurethanes: We have amended our manufacturing capability to produce a broader range of Polyurethane materials such as Footwear Polyester systems. We have invested in Chakan to locally manufacture PU and Polyurea Coatings. We are on the verge of commissioning a renewed Technology Development and Customer Experience Center in Pune. 

Advanced Materials: We continue to develop innovative products that meet the needs of its customers across a wide range of industries, including aerospace, electronics, and automotive. The company is exploring new applications for its cutting-edge Araldite adhesives and composites, which are known for their strength, durability, and reliability. 

Performance Products: We are expanding our portfolio of performance products focusing on sustainability, developing new products and processes that reduce waste, conserve resources, and promote circularity. 

Overall, Huntsman India's plan for 2023 reflects its commitment to innovation, growth, and sustainability across all business segments. The company is poised to build on its successes and continue to drive progress in the Indian market and beyond.

June 09, 2023

hubergroup is investing in research and development to develop new products and technologies that are more energy-efficient and sustainable. The company is also reducing energy consumption through energy-efficient technologies and process at our sites in India.  

Key achievements in FY 2022-23 by hubergroup Asia/India? 

FY2022-23 was a challenging year. It started with challenges of higher demand, supply chain disruptions, raw material cost upsurge while it ended with a sluggish demand, pipeline correction, management of operational and business cost. Nevertheless, hubergroup developed innovative products with unique properties with efficient and environmentally friendly manufacturing processes to meet customer needs. We met sustainability goals by reducing environmental impact, improved safety, expanded into new markets, and collaborated with many new business partners. 

We started our Global IT Centre of Excellence in India where services like network, security, data centre of hubergroup worldwide are now delivered from one single location. Our innovative products MGA CONTACT and Oxygen Barrier Coating won awards for sustainability. The launch of our eco-friendly new water-based ink portfolio HYDRO-i, developed jointly by the R&D teams of India and Germany, has been accepted and appreciated by the packaging industry.   

hubergroup is one of the leading international specialists for solutions and technologies relating to printing inks, printing aid, and raw materials. What's your Asia/India strategy for FY 2023-24?  

hubergroup is a German-based company with a strong presence in India serving as a manufacturing hub for our global operations. We follow some of the best European business practices and yet produce products in cost-effective ways by leveraging our manufacturing footprints in India. Our Asia/India strategy in the current scenario is to focus on sustainability, energy efficiency, and collaboration with stakeholders to drive innovation and growth in a rapidly changing market. We are investing in research and development to develop new products and technologies that are more energy-efficient and sustainable.  

We are also expanding into new markets to explore with a broader focus. We have separated our Chemicals business from our Print Solutions business in 2020 to be more focused and provide solutions tailored to our customers. We also continue to remain focused on our employees’ well being and bringing in more diversity to the existing workforce. 

How has the chemicals division performed in Asia/India in FY 2022-23? Bouquet of products planned to be launched in this fiscal?  

Our global Chemicals Division performed well in FY 2022-23. However, we have higher expectations from Asia/India due to the region's economic growth, and rapid industrialization, and urbanization. The industry also faces challenges such as rising raw material costs, environmental regulations, and increasing competition from other regions. The COVID-19 pandemic has also impacted the industry, causing disruptions in the supply chain, and reducing demand from certain sectors. Overall, the chemicals business in Asia/India is expected to grow significantly higher than GDP growth. Going forward our focus is to enhance business for radiation curing systems which includes UV oligomers (polyester acrylate, poly urethane acrylates, and epoxy acrylates) and monomers. 

Recently, we participated in the European Coating Show (ECS 2023) to showcase our product portfolio in the Chemicals Division and received overwhelming responses. 

hubergroup develops innovative solutions and technologies for the printing and packaging, the paint and coating, and chemical industries. New technologies/products that you are developing in R&D labs and its implication for the hubergroup?  

We are working on developing new products with an increased use of bio-based raw materials to fulfill our commitment towards sustainability and offer eco-friendly products to our customers while ensuring compliance in changing regulatory requirements. Drawing on our knowledge of resin design, our focus is to provide resin products like UV oligomers, modified Rosin resin, polyurethane resin or polyester resin that meet various requirements of the printing, packaging, and coating industries. These efforts will enable us to expand our chemical business portfolio and cater to a larger market size. 

New projects implemented in FY 2022-23? Expansion plans for FY 2023-24? 

We are excited to expand our UV oligomer, monomer, and ketonic resin product range. At the same time, we are also exploring the possibility of collaborating with some of the leading companies for custom manufacturing. We are seeking synergies that can complement our assets and strong operational know-how to achieve greater business efficiencies and customer satisfaction. We will continue to provide updates on this through our official communication channels. 

The company is offering a wide range of products for use in radiation-curing systems. Potential use cases and key customers for products for use in radio-curing systems? 

Radiation-curing systems have a wide range of potential uses and customers in various industries. The printing industry is the biggest: Radiation-curing systems are used in the printing industry to cure inks and coatings on various substrates such as paper, plastic or metal. Additionally, they are often used in the coatings industry for automobiles.  

hubergroup is also currently placing a special focus on wood coatings. What's your overview of the Indian market and when are you planning to launch this product in India?  

The wood coating market in India has been growing steadily over the years, driven by increasing demand from various end-use industries such as furniture, construction, and automotive. The market is expected to continue its growth trajectory in the coming years, thanks to rising disposable incomes, urbanization, and increasing construction activities in the country. 

At hubergroup, we have some unique solutions like UV oligomers (polyester acrylate, urethane acrylate, and epoxy acrylate), functional resins, monomers (TPGDA, DPGDA, PETIA, GPTA, EOTMPTA, PPTTA, and DPHA), conventional resins (modified Rosin and polyurethane) specially designed for the wood industry to enhance coating performance.  

hubergroup is also focusing on providing chemical substances such as PU resins and UV oligomers in their purest form and driving forward product innovations. How are you moving in this direction? 

The progress for PU resins and UV oligomers is good with several products launched in 2022-23 that are technologically well accepted. We are now adding capacities to scale-up our production and optimize cost. We also have products for the wood coating segment now. 

The company is taking a holistic view of sustainability and is also driving a circular economy. Steps taken by hubergroup India on sustainability and circular economy front? 

At hubergroup, we have placed a great emphasis on sustainability for many years. We have been a pioneer for eco-friendly printing solutions such as cobalt-free inks and we will continue this approach for our Chemicals Division as well. We have taken several key steps to improve sustainability and adopt circular economy principles like measure and track environmental impact, adopt circular economy principles to design products for longevity, set sustainability targets, engage with suppliers, invest in renewable energy, promote sustainable products, and partnerships with stakeholders.

At our largest production site in Vapi, India, we have, for example, implemented photovoltaic systems and a?Multi Effect Evaporator (MEE)?into operation, a state-of-the-art technology which ensures efficient processing of the site’s effluents.  

What are the steps you are undertaking to achieve Net Carbon Zero? 

We continue to build strategies and find innovative ways to minimize our carbon footprints. At our sites in India, we are reducing energy consumption through energy-efficient technologies and process improvements. We have also implemented photovoltaic systems in our plants. We are also fostering use of renewable energy sources like wind and solar. 

In FY 2022-23, hubergroup India launched a healthcare initiative for rural areas in the Indian state of Gujarat, collaborating with Rotary Vapi Riverside. CSR activities undertaken by the company in FY 2022-23 and plans for FY 2023-24? 

hubergroup has production sites in Daman, Vapi, and Silvassa – So many of our employees live in these regions. We believe in contributing and giving back to the people in our neighbourhood. Our endeavour is to provide quality healthcare services at the doorsteps of rural residents complementing the government promoted health programmes. Our services through two mobile medical vans were well accepted by villagers. This prompted us to add two more vans, one for dental and one for eye care in March 2023. Moreover, we donated a high-end digital mammography system to the newly inaugurated Mammography Department at Shreyas Medicare Janseva Hospital Vapi, India. Going forward, this year our CSR activities will once again be committed to service in the health and education sector.

June 08, 2023

Evonik is exploring the sourcing of renewable energy for its production assets in India. The company is also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions. 

What are the global trends in specialty chemicals in 2023? 

Last year, the effects of the Ukraine war, high inflation, and fluctuating energy prices brought significant challenges to our operations and also the chemical industry, and they still do. At Evonik, we are cautiously optimistic for 2023. Much will depend on how sustainably energy prices and inflation will soften and how strong the recovery of the global economy is going to be, especially with respect to China. In the first quarter of 2023, in particular, the negative trend of the second half of 2022 continued. From the second quarter onwards, the situation is likely to gradually improve.

Amid the headwinds, the industry is pressing on with its transformation towards sustainability. So is Evonik. With our next phase of strategic transformation, we have fully and systematically integrated sustainability into all elements of our strategy. We are executing targeted and massive investments in green growth and making sustainability our central innovation driver. In this context, we are strengthening our sustainability portfolio and reducing our footprint by cutting emissions from production and processing.

Evonik India's performance in FY 2022-23? List the key achievements for Specialty Additives, Nutrition & Care, Smart Materials, and Performance Materials division in FY 2022-23? 
Evonik's India cluster had a strong growth in FY 2022–23 compared to FY 2012–13, with robust performance across the Specialty Additives, Nutrition & Care, and Smart Materials divisions, and steady performance in the Performance Materials division.

Globally, Evonik is focusing on transformation through sustainability and profitability. What's your strategy for India and how are you making it a reality? Sustainability is a central element in Evonik's purpose ‘Leading Beyond Chemistry’. Evonik India sustainability plans for FY 2023-24? 
Evonik goes far beyond chemistry to create innovative, profitable, and sustainable solutions for customers. As a specialty chemicals company with presence throughout the world, Evonik sees sustainability and long-term business success as two sides of the same coin.

In line with Evonik’s sustainability approach, our endeavour for India assets is to reduce carbon footprint by significantly cutting greenhouse gas emissions from production and processing. Also, in India, we are exploring ways to utilise available bioresources to improve the sustainability of our products. The inauguration of the Zero Liquid Discharge Plant at our Dombivli (Maharashtra, India) site last year is evident of how we accept responsibility for our businesses, our employees, the environment, and society.

Further, in India, we can also play an enabling role in the country’s sustainable journey by providing solutions to our customers and industry. The so-called Next Generation Solutions from Evonik not only make our customers' products more sustainable but also help them improve their climate footprint.

For example, in line with India’s net zero target by 2070 and 500 GW renewable energy target by 2030, the Sustainable Alternative Towards Affordable Transportation initiative, Evonik is supporting our customers by providing sustainable products and solutions like Sepuran Green membranes for Bio-CNG applications, CAPLUS for CO2 removal, Vestamin IPD for wind turbine applications, etc.

Evonik is making targeted investments in six defined innovation growth fields that promise high returns. Please explain? 
Our innovation portfolio focuses on six growth fields, which are assigned to our growth engines in highly attractive markets with above-average growth rates. The six growth fields are: Sustainable nutrition for livestock and people; Healthcare solutions; Health-enhancing substances and nutritional supplements; Gas separation membranes; Cosmetics solutions; and products for additive manufacturing. 

We are right on track to generate additional sales of more than €1 billion with our innovation growth fields by 2025. Sales from these innovation growth fields rose more than 20 percent last year to €600 million.

The company has set a goal of investing more than €3 billion in the growth of Next Generation Solutions by 2030 in order to increase their share to more than 50 percent. Areas where you are investing? 

Next-Generation solutions are products with superior sustainability benefits. That includes, for example, drug delivery technologies for controlled release of pharmaceutical active ingredients, gas separation membranes for biogas and hydrogen, as well as natural-based active ingredients for cosmetics. Examples of investments include: Battery materials: We have opened a new research centre for lithium-ion batteries in China. In Japan, we are expanding production capacity for alumina for the battery market; Biodegradable surfactants: Production plant for biodegradable surfactants is being built in Slovakia; and Pharmaceutical lipids: In the USA, we have just begun construction of a plant for pharmaceutical lipids required for mRNA-based medicines.

Do you see an increased role of Evonik India's R&D centres in the global scheme of things? New areas where you would be focusing? 

India is the 5th largest economy in the world. With the pace at which the economy is growing and also with the impact of the budget for 2022–2023, domestic demand is also expected to increase. Under these circumstances, Evonik’s business is expected to grow at a good rate. With most of our products being technology-driven, I would definitely expect Evonik’s R&D centre to play a very important role in areas of new product and technology development. Evonik’s R&D centre would also play a role in tapping the needs of the Indian market and developing products to suit the specific requirements of Indian customers.

The Research Centre India (RCI) was established in 2002. RCI is Evonik’s Oral Competence Centre, providing global support in formulation development for the pharmaceutical, nutraceutical, and food industries. RCI has been identified as a differentiator by continuously enhancing its competencies and footprint to support the global health care business. 

Aligning with this centre is the Catalyst R&D facility at Dombivli, located in the industrial corridor on the outskirts of Mumbai. Catering to regional and global customers across varied industries such as pharmaceuticals, agro, fine chemicals, food, and edible oil, this site supports the product line Life Sciences and Performance Catalysts, which comprises oil and fat hydrogenation catalysts, precious metal catalysts, and activated metal catalysts.

Over the last two decades, the R&D centres in India have played an important role at a global level in delivering new products and technologies. The potential of the Indian technical talent pool has been acknowledged over the years. I feel confident that the role of Evonik’s R&D centres will become even larger over the coming years, and organic synthesis will also be a focus in India, along with Oral and Catalyst. The focus will be on next-generation solutions with clearly positive sustainability benefits that are above the market reference.

Important step in the sustainable transformation is the rapid overhaul of energy supply. What's your India strategy with respect to purchasing green/renewable electricity and how are you making it a reality? 

We are exploring the sourcing of renewable energy for our production assets in India. We are also evaluating the utilization of biomass as an energy source to further reduce scope 1 and 2 emissions.

CSR initiatives planned for FY 2023-24? 

We are deeply committed to improving the social environment in any way possible and consciously reach out to support causes across the board, primarily in the realms of children’s education, women's empowerment, and healthcare. In 2023, we are entering into a partnership with CARE India to support the STEM education of girls from underprivileged areas. Evonik will support the setup of seven vibrant STEM learning spaces called the "innovator’s laboratory". These are community-level tinkering spaces for children to build STEM thinking skills using digital and non-digital tools. Also, onsite mentoring, community events, and student-driven projects will be organised to improve the science, mathematics, and digital literacy skills of girls.

June 07, 2023

In an exclusive interview with Pravin Prashant, Editor, Indian Chemical News, Dr. Vikas Dhole, General Manager, Sustainability Industry Business Unit, Aspen Technology (AspenTech) and Manish Chawla, SVP, Chief Customer Officer, AspenTech share insights on current challenges faced by chemical industry, sustainability investments, co-innovations, role of DeepTech, and balancing sustainability and innovations to be profitable.  

What are the current challenges faced by the chemical industry globally? 

Dr. Vikas Dhole: First, there is a growing demand for chemicals while the chemical industry goes through ups and downs. In general, the trend is up most of the time whilst now it is facing challenges globally. Second, sustainability is a big challenge and opportunity for the chemical industry because of aggressive targets that companies have set in terms of decarbonisation. Majority of large chemical players have pledged to go net zero by 2050, maybe 50% by 2030 but again the question is how to be profitable and achieve the net zero goals simultaneously. Again, there is an additional challenge in the form of circularity.  

You mentioned energy and chemical companies are investing US $876 billion on sustainability projects from 2020 which is inclusive of carbon capture, green hydrogen and bio-feedstocks? Of this, what percentage is from the chemical vertical?

Manish Chawla: We roughly estimate that about a quarter of the sustainability investments are headed for chemicals, which includes both bulk and speciality chemicals. The remaining amount breaks down to about 70% for the oil and gas-related sector. The balance 5% comes from metals and mining industries.  

Dr. Vikas Dhole: The sustainability investment is divided into two parts. One is operational investment which is not captured here as this is mainly Capex investment which is strategic initiatives like carbon capture, green hydrogen, and bio-feedstocks. There is a significant investment happening from an operational point of view for improving energy efficiency, monitoring emissions, reducing emissions, and reducing plastic waste. From a Capex point of view, 25% makes sense for the chemical industry, whereas oil and gas hold a major share. In oil & gas investment, there is a split between major players. Not just companies but clusters, as there are groups of companies which in a collaborative way are bringing the investments in these Capex areas.  

The chemical industry is playing a collaborative role in carbon capture. They may not be a key player in clusters but they play an important part in carbon capture and green hydrogen. The chemical industry has a role to play in carbon capture, utilisation of CO2 towards newer chemicals such as methanol.

Bio-feedstocks, in terms of what you can do from a green point of view, starting from green feedstocks into chemicals but operationally long-term investments in the chemical industry, are resulting in energy efficiency and emission reduction. 

What is your estimate for the operational investment compared to Capex? 

Dr. Vikas Dhole: While Capex investments happen over a long period, the operational investments are done annually. Out of the annual operational budget, investment in sustainability would be 30-40% of the budget for improving efficiency and it varies from country to country and nature of chemical business but it is definitely increasing.  

How has AspenTech India performed? How do we look at Capex numbers from India perspective? 

Dr. Vikas Dhole: In terms of country Capex in India, about 5% of the USD 43.8B in the overall investment is focused on this country and it is projected to be rising sharply for both private and public sector companies. A lot of strategic private investment is going into green energy. If you add up the private investments made by companies, such as Reliance and Adani, it is tens of billions in USD, in addition to the government investments. This number will further increase in future as it is just the beginning.

There is investment happening in the Middle East, North America, Southeast Asia, and Australia. There is a law passed called IRS (Inflation Reduction Act) in the USA that encourages companies to invest and all that is driving a lot of Capex in overall spend.

What will be AspenTech's market share? 

Dr. Vikas Dhole: Let me clarify that these numbers are based on the announcements and not actually spent. It is a long-term commitment. Majority of these projects on carbon capture are in an early feasibility design stage. I would say that we have a substantial market share in carbon capture globally. Large multinationals, technology companies, engineering and procurement companies are using our software due to modelling of these systems, doing techno analysis, and early designs.  

Our unique strength is our ability to help clients quickly with accurate modelling of these systems, carbon capture, helping them in balancing of Opex and Capex.

Also, accelerating designs as there are so many proposals coming through in various parts of the world. The engineering companies are finding it difficult to cope up with the workload. We are helping these companies to become more efficient while executing these projects.

Manish Chawla: In terms of quantification, a large number of these projects are in the designing stage by engineering players. Our engineering or simulation software is a marketing software. 99% of the time we wouldn’t even know how our software is being used but we were one of the first to launch what we call the sustainability models that made it easier for these engineering companies to use our software with starting models and later they can adopt them.  

Secondly, engineering companies are seeing a lift due to use of these Capex projects. They are coming back to us to say that they want a broader partnership, end to end solutions for green hydrogen or carbon capture etc. This gives us confidence. Moreover, the feedback from users and customers shows that our brand is getting strongly associated with sustainability. If I intersect all of them together, our goal of being a leading player in this space is surely going to be fulfilled. Now as we are moving towards that, we are also looking at operation solutions because these facilities will also go towards the operations. They will become a core part of operating system architecture.

Dr. Vikas Dhole: It is the entire life cycle of these assets. You design first, prepare for operations, and then you go into operations. We have solutions, from design to operations and maintenance. The ability to reuse models and information across the life cycle is a critical factor. We are winning in the majority of cases. Undoubtedly, we are a market leader in engineering solutions, four times bigger than the next player. Hence, the probability of clients coming back to us for operations and other downstream activities is very high. It is an excellent opportunity for us.  

The world's largest facility for testing and improving carbon capture technologies, Technology Centre Mongstad (TCM) uses our software for modelling and optimisation of carbon capturing facilities. There are other areas such as biofuels and EVs where a lot of companies are using our software for designing batteries.

Large IT companies are moving towards net zero data centres and using innovatively the energy that comes out to do carbon capture and separation. So, this expands our footprint. Again, a lot of automobile companies are using our software to test fuel cells. There is a lot of drive to use hydrogen for large locomotive solutions. We have been serving this industry for the last two decades and have served many companies in Japan.

Sustainability is not only driving the core verticals of oil & gas and chemicals but also the adjacent industries. And then hard to abate industries like steel and cement are looking into what they can do to the CO2 emissions from their flow gases. Carbon capture plays an important role here. So that’s moving into other industries that we haven’t traditionally served in the past.  

Coming back to the numbers, how do you see this market panning out in 2030? What would be the chemical percentage moving forward?

Dr. Vikas Dhole: There is going to be pretty aggressive investment by the chemical industry over the next ten years or so because the majority of these large players have committed to 50% reduction in greenhouse gas emissions by 2030. This is significant because they have factored in that they are going to grow over the next ten years and simultaneously reduce the 50% reduction in emissions. It means not just doing energy efficiency and emission reduction but making fundamental improvements in their Capex and process technology improvements. For example, ethylene manufacturers are looking into electrification of their furnaces to move from energy or heat-based fuel to renewable power. And, this changes the whole game. Hence, there are tremendous amounts of innovations happening in new process technologies in chemicals.

Manish Chawla: With the Emerson transactions that occurred a year ago, we now also have the Digital Grid Management software in our portfolio. Besides four big industrial verticals like chemicals, they will invest in micro grids as well. So, our ability to serve them not only with these three plays but also micro grid and electrification also become a key part.

Dr. Vikas Dhole: The proportion of investment into renewable power by the large chemical players is significant because it helps them to drive down CO2 and optimize the cost. But as soon as you increase the proportion of renewable power, you need to balance it with grid power. And if everybody goes for renewable power, how do you manage the large-scale electrical grid and variability of renewable power? This is where our Digital Grid Management solution plays an important role. 

In India, there are six to seven power cuts every month and the chemical industry suffers badly? How does your software support smooth flow of power for continuous and efficient working of processes?  

Dr. Vikas Dhole: Our software solution helps in managing the large power systems, taking into account the weather effects. It has the ability to predict what the demand is going to be based on weather forecasts - wind and solar. Based on that it can run the production. These capabilities are very important. On the customer side, we have the capabilities to optimize their utility system because there is heat and power being produced inside, for example steam in the chemical plants. So, we have optimized such systems and increasingly blurring the boundaries between captive heating power systems and the digital grid. This is where our Digital Grid Management solution plays an important role.

You talked about carbon capture, hydrogen, and bio-feedstock. Is AspenTech focusing on all these simultaneously or is it a phase wise approach? 

Dr. Vikas Dhole: You can achieve the 30% of your net zero goal by investing both in Opex and Capex through energy efficiency. Electrification is a big one and that can be additional 10-15%. So, there are technologies already in India where you could go up to 45% depending on where you are in terms of efficiency today.  

The next set of strategic technologies that is emerging rapidly, in terms of Capex, is the introduction of bio-feedstocks; carbon capture, utilization and storage (CCUS); green hydrogen and fundamental process improvements, which can help in achieving another 50%. This is the strategy our customers are following. If you look at the investment pattern, energy efficiency investment gives you returns and then you go for strategic investments to achieve the net zero target. Thirdly, the new innovations that are coming up such as the use of CO2 to manufacture new chemicals. Because if you just keep storing, it costs a lot of money but utilization offers a return on the CO2 investments. So, menthol processes or new types of chemicals are just a few examples.

Plastic circularity is a very active area of research across the globe. Many companies in India are a part of the alliance looking at ways to bring the recycled plastic back and strategies to decarbonize.

They are also trying to innovate new materials that can help carbon capture. We are very active in all these areas. A lot of small to medium companies in India and abroad are using our software to innovate in these areas.

Your presentation talked about co-innovation. Areas where you are co-innovating with customers and partners globally? Areas where you are looking to co-innovate from an India perspective? 

Dr. Vikas Dhole: There are a number of areas where we are co-innovating today with our customers such as grid management, electrification, emerging areas like hydrogen and carbon capture.  

As we develop models for the new technologies, we also want to validate these models. The newer solutions that are coming up, we want to quickly develop the models to cover those and that can happen only if we work together with our customers.  

So, we started establishing advisory groups and co-innovation partnerships with customers in the Middle East as well as in Europe. In India, we are looking towards partnerships in core areas because there is a lot of investment happening in emissions and electrification.

We believe we can really give value to the investments our customers have already made in modelling solutions related to planning and supply chain solutions. To give them a much more coherent approach on their investments and collaborate with them on carbon capture, hydrogen etc. so that it improves their reliability on the investments they are making.

Manish Chawla: In a few examples, the announcements of our collaboration with Microsoft and Emerson on hydrogen has been made. Another one has been made with Saudi Aramco on carbon capture. We are working with several of these companies such as McKinsey as well. We are constantly co-innovating and have moved to Europe also for many projects. We are helping customers on utilities and grid management.

Presently, sustainability is one business unit of AspenTech. How do you see it performing presently and what would be its contribution moving forward?  

Dr. Vikas Dhole: We are not reporting the revenue of the sustainability business unit as of now as it is at the early stage. The profitability and sustainability are intertwined. Our customers might provide the percentage breakup. In one of surveys, few customers have revealed that 30% of the activities around sustainability business has been using our tools. Part of our business unit’s focus is to really bring together the power of AspenTech’s portfolio.  

We have market driven solutions around supply chain, engineering solutions, and asset performance management that offer much more coherent digital pathways so that it drives efficiency and innovation acceleration for our customers. Hence, we win the majority of these Capex and Opex investments. We have been serving our customers for the last 40 years. In the longer run, we hope that we grow our percentage from 35% to 70%.

Balancing sustainability and innovation lead to profitability. How is AspenTech doing the balancing act on sustainability and profitability while offering solutions to the chemical industry?  

Fundamentally, what works in our favour is that these models are helping our customers to constantly optimise and when it comes to optimization, the same model that can be used for quantifying profitability can also be used for quantification of sustainability.  

So, our models have the capability to quantify the CO2, Scope 1, and Scope 2. As the optimization has become broader and now customers are also looking at Scope 1, Scope 2, carbon emissions, and all other contaminants, resulting in bigger collaborations. We initially developed modelling solutions for European customers but now it is available globally. We are increasingly moving towards collaborative models. The more complex it becomes, the more profitable it becomes for us because the modelling drives the best optimum decisions.  

How do you see the current DeepTech companies helping the industry to achieve the net zero?  

Dr Vikas Dhole: Artificial Intelligence (AI) is already playing a big role in our business. We can use industrial AI because the chemical industry has tremendous complexities with respect to safety and reliability of the assets and this is where our modelling and optimisation solution plays an important role.

We can accurately model these compounds and equipment as it has delivered the results over the last several decades. There are plants that are operating and so we don’t want to get rid of that first principal foundational base heritage.  

Our strategy is to use AI and some of the new technologies to scale the capabilities to reach larger user communities and new generations of users. We would like to make it easier for them and help solve bigger problems across enterprises, accelerate innovation etc. The ChatGPT kind of models are going to play an important role and depth of knowledge and expertise we have in our tools. So, imagine having a digital helper that sets the solution for you in face of any immediate challenge. We are looking at such models and quantum will play a huge role in this chemical industry in terms of search for new chemicals and technologies. This could create billions of dollars’ worth of value.  

The foundational strength in terms of the number of Engineers India has been transformative for the country. The number of patents, talent pool and innovation centres have increased. Every large chemical company is investing in India. The resource that the country is churning will make sure that India achieves the renewable targets and energy efficiency. India surely is poised to create a huge impact.

June 06, 2023

A key growth driver will also be Deepak Nitrite's state-of-the-art Research and Technology Centre which will combine its laboratories with world class scale up facilities that will double up as operations excellence initiatives

Major global trends in the chemicals sector and its implications on India?

India’s chemicals industry has been a global outperformer in demand growth and shareholder wealth creation for a decade. Its strong starting point could make it the next chemicals manufacturing hub. India’s infrastructure costs, across construction, material, and machinery, are up to 70% lower than other global chemicals manufacturing hubs. India’s material costs are 4.5 times lower versus Germany and 3 times lower versus Saudi Arabia.

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 billion to US $180 billion in 2021 to US $850 billion to US $1,000 billion by 2040. 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.

Abundant availability in petrochemicals: India possesses abundant feedstock for higher carbon building blocks (C4, C6, and C8). Consequently, its combined surplus production of butadiene (C4) and benzene (C6). Allied companies are better suited to focus on products where feedstock is easily available in the merchant market.

Challenges: The Russia-Ukraine crisis continues to disrupt the global oil and essential chemicals availability. Hence, there is sustained volatility and fluctuation in crude and countries around the world have to evaluate new sourcing trades and patterns. While it has world class refining capacities, India remains unusually vulnerable due to its outsized dependence on crude oil imports.

With an eye on meeting the climate control and G20 challenges, the environmental regularity keeps eco-conscious responsible chemistry companies like Deepak Group to ensure our operations have no adverse impact on the environment. Global economies are unstable with Europe, China, and the US grappling with inflation and the consequent fluctuations in exchange rates challenge us to conduct smart hedging and fiscal management. 

This is a double-edged knife. While the western world has been seeking an option to de-risk from its dependency on China, India’s appetite for Chinese imports has been increasing every year including the last. In fact, one of the largest foreign account surpluses that China has is with India. Reducing dependency on China requires long term planning and infrastructure buildouts which must include material movement and storage to minimize the value leakage between production and consumption. 

Key milestones achieved by Deepak Group during FY 2022-23? Plans for FY 2023-24 and what are the growth drivers?

Deepak Group’s Phenol Acetone plant, the largest private investment in PCPIR region at Dahej, Gujarat achieved a milestone of 1 Million Metric Ton Phenol production in 4.5 years.

Our debottlenecking exercises at our plants of DNL in Dahej, Roha, TCD, Hyderabad and Nandesari Unit enabled us to expand the existing capacity. 

Many new projects were also initiated to significantly expand Deepak’s market share in existing product portfolios, upstream integration as well as new process platforms. FY24 will see some of these projects get commissioned with order books tied up in advance. 

A key growth driver will also be our state-of-the-art Research and Technology Centre which will combine its laboratories with world class scale up facilities that will double up as operations excellence initiatives. 

Initiatives for enhancing process safety across all processes to make operation intrinsically safe. How are you collaborating with business partners to imbibe ESG practices in their operations to ensure a sustainable supply chain? 

Deepak Group is working with key customers and third-party support to prioritize Scope 1 and Scope 2 initiatives for improvement in the carbon and water footprint at all its existing and forthcoming plants. These include yield improvement, multi fuel boilers, more efficient separation methods which use less energy and processes that improve atom efficiency. These will help catapult the company’s holistic ratings for ESG. 

Major CSR initiatives being undertaken by Deepak Group in FY2022-23 and plans for FY 2023-24?

Deepak Foundation, the CSR extension of Deepak Group, conducts a number of programmes focussed on education, healthcare, skill-development among women and infrastructure support, for the communities in villages around the plant sites. Deepak Foundation also offers NGO consultancy partnership and support to CSR projects supported by other companies.

 Deepak Group is partnering with the Central Government Mission to end TB by 2025. In this regard, we have launched ‘Nidaan’ mobile health van for sample collection and diagnostic services for TB, Anaemia, x-ray, and eye check-ups for free to communities in villages.

 To enable education for all, Deepak Group supports Sankul education centre for visually and physically challenged children at Vadodara. The centre also offers rehabilitation and palliative care to cancer patients.

 Vadodara Centre for Prevention of Cruelty to Animal, a hospital and rehabilitation centre for stray animals operates its facilities at Chapad, Vadodara, supported by Deepak Group which is also building new shelter rooms and operative services at the centre and started mobile-animal care clinic to offer rescue and treatment services at doorstep. 

 Empowering women by infusing entrepreneurial spirit, Deepak Foundation conducts Women empowerment training and handholding services like organic soaps and edible condiments manufacturing and sale. Aimed to support, sustain and revive the indigenous craft of ‘Sujni’, Deepak Foundation partners to support artisans and handicrafts at a centre in Bharuch.

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.