May 30, 2023

2023 trends in the colour solutions industry?  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 29, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The above actions shall help HPCL achieve sustainable growth. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 27, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 26, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 What are your plans for automation and digitalization at BCPL?

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

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

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

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

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

What is your marketing strategy for Petrochemicals? 

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

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

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

Where do you see BCPL in the next 5 years?

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

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

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

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

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

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

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

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

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

May 24, 2023

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

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

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

2023 global trends in custom synthesis manufacturing in India?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 18, 2023

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The above actions shall help HPCL achieve sustainable growth. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

May 17, 2023

What are the global trends in the Organic Chemicals and Specialty Chemicals sector in 2023? 

There is a shift seen towards production of high-value chemicals and it is driven by an increasing demand for these chemicals in high-growth industries such as electronics, aerospace etc. Global companies have started adopting a China+1 policy to diversify supply risk which in turn has improved the opportunities for Indian manufacturers.

Vinati Organics is the world's largest manufacturer of IBB and ATBS. What's the next set of products you are looking for global dominance? 

We have focused on manufacturing IB derivatives; we have added products like PTBT, PTBBA/PTBMB and commissioned our Butyl Phenols plant consisting of PTBP, OTBP, 2,4 DTBP and 2,6 DTBP. We are the only manufacturers of these products in India. We have also stepped into manufacturing antioxidants for plastic additives. Butyl Phenols is one of the key raw materials for making these antioxidants. This will extend the integrated and synergic advantage that the company holds through its product profile.

Are you planning to expand manufacturing facilities in Mahad and Lote? Please talk about your expansion plans?

We are expanding our ATBS capacity from 40,000 MT to 60,000 MT at our Lote facility. 

What is your Capex plan for FY 2023-24? Areas where you are planning to invest? 

The company is having Capex plans of Rs. 600 crores which is spread across FY23 and FY24. This is being spent on expansion of existing capacity of ATBS and towards introduction of new products which will be used in polymerization inhibitors, flavours, fragrances, pharmaceuticals, and pesticides.

How is the company striking a balance between environment-friendly policies and sustainable growth? Would you talk about Green Practices and HSE Initiatives? 

We continuously focus on reducing our environment footprint. In line with the company’s Environment, Social and Governance (ESG) initiatives, the company has commissioned solar power plant and intends to meet almost 50% of our power requirement through renewable energy

When are you planning to achieve Net Carbon Zero? How are you planning to achieve it? 

We drive our operations towards achieving our sustainability goals, with continuous monitoring round the year to measure our performance. The commissioning of the solar power plant is a step towards it.   

What are the key CSR initiatives being undertaken by the company in FY 2022-23?

Our CSR initiatives are focused to achieve many of the Sustainable Development Goals like good health and well-being, quality education, gender equality, clean water and sanitation, sustainable cities and communities, etc. 

May 16, 2023

AVEVA is now fully owned and is part of Schneider Electric. What will be its likely impact on existing and future customers in India? 

We are hoping that it will have a very positive impact. It will help us in keeping the open-ended environment for software development, helping our customers with software development with the tools they have and also with the AVEVA portfolio. We have worked with Schneider Electric, particularly in India as an integration partner and now with this fully owned status, the working relationship will grow only stronger as we have a great team and concepts across the portfolio that allow for better service as well. In addition, AVEVA continues to grow in the chemical segment. So, we hope to see more support there. 

How will AVEVA and Schneider Electric work together in the Indian chemicals market?

The Indian chemicals market continues to be strong. It is highly active and we have a tremendous amount of customer base to talk to. For India, we continue to see good activity, bringing up good discussion on how it connects globally as it doesn’t operate in vacuum. We have seen many disruptions happening in industry during Covid. With Schneider Electric-AVEVA, we will now have a much broader base of support coming into India and being available to the customers.  

AVEVA enables companies to engineer efficiently and optimize operations, driving growth, and sustainability simultaneously. How do you ensure all these solutions will help chemical companies? 

Digital transformation is a direct evolution of operational excellence. We talk about people, process and technology but operational excellence is taking people in a process as far as they can go. Implementing standard work, organizing work spaces, understanding what we can do with what we have. The next step is technology. As we do a lot of improvement to process, typically there is digitalization and more information. As the information builds up, it necessitates the transformation into digital space. 

With the larger broader portfolio, we have connected information across the whole spectrum of the chemical industry. With our OSISoft we focus on real time data, with AVEVA taking data from exceptions. From engineering, simulation, design to operator training and commissioning of a plant. Now its maintenance through operations and sustainability and connecting with integrated digital twins so that information is never lost and always readily available. As we transition into the standard operational excellence into the digital connected work environment, the information is at their fingertips to drive data driving decision making. 

Chemical companies are focusing on driving operational excellence through digital transformation. Steps which will help companies to achieve operational excellence?

It is a journey. The first thing for the players is to understand where do they stand currently, where they want to be and what is necessary for them as a company or chemical plant to succeed. We want to be their trusted partner in this journey. We don’t want to just sell them software but also offer a solution that fulfills the long-term improvements. The steps include understanding the process and people you have so that the operational excellence part is really the foundation of digital transformation. Understanding what processes are important, what information you have today and what information you will need in the future. Of course now with Schneider Electric in play, we have a direct line to the process automation and hardware system.  

Understanding what you have and need is going to drive home the information that you are going to require to drive operational excellence. And then it is privatizing the solution. Very often chemical plants will start with understanding the real time visualization of the process. That's step one. Then very quickly depending on the amount of equipment they have, reliability becomes a concern. So they have to ensure protective analytics around their assets. 

As that activity occurs maybe it is time to look at the asset information and digitize it for better decision making. This continues on through optimization and then energy and yield management. Supply chain costs are as vulnerable they are these days due to situations, even little matters. Some of the next steps are to get hold of such situations and understand the conditions that could lead to failure. Real time data and transitioning into conditional data and prescriptive mode is what new digital technologies enable.  

Chemical companies are looking at reducing energy and waste, improving circularity, and also improving sustainability score. How do you see data analytics, process simulations, and digital twins helping them in this journey?   

Energy optimization has always been the hallmark of the chemical industry because it has been constrained by margins. So energy is one of the main costs that it hopes to manage. I think from a digital standpoint, having the data on fingertips and right information handy allows us identify our energy landscape where we are using the most of what we can take back, integrating with our equipment, understanding the electrical, natural gas, steam, commitments we have, looking around our missions, and monitoring systems. Connecting that with our data systems that we can understand, what process steps lead to the largest carbon footprint. How do we scale those back? I think having that data available is going to be the key.  

If you look at some of our technology, it is going to enable those calculations in real time. Our simulations now can calculate greenhouse emissions, our scheduling and planning tools allow you to simulate different feedstocks, different utility and usage so that you can calculate your carbon footprint, go into your plan and make proper decisions. The basic reliability of the process, continuing what we do everyday, being reliable so that those extra emissions don’t occur. 

Circularity of course is the newest aspect of this net zero campaign and it’s the one that has the most question marks because many of the technologies are going to be new. Recycling for many years has been mechanical as when we see a plastic bottle we turn it into a park bench. With the variety of plastics and variety of additives into the chain, identifying and sorting the plastics that make sense has been difficult. Roughly 9% of the world's plastic actually gets recirculated. So circularity is going to allow us to develop those chemical processes not only to grab the split polymer but convert it back into either monomer or the base raw material so that we can build the new again.

So now we are recycling the carbon molecules and not just the plastic. Some of these technologies are being developed and many of the pilot plants have come online. The digital process and community will enable more efficient design and decrease the run in time. Reverse supply chain, getting the plastic back from the market and reprocessing. There are a lot of JVs happening in this space. Therefore, we will see the data grow and be able to manage the communication beyond the boundaries. AVEVA technologies are ready to support in this direction. 

Every company has got net zero plans. Solutions provided by AVEVA to measure and deliver low emission value chains? 

 From a specific toolkit, of course on real-time data monitoring, AVEVA PI System is one of the best. It monitors the real time application of data so that we are performing to the target. 

Our more successful customers use that real-time data against operating limits so they define where they need to be to perform their targets. They aggregate those missteps, so when they violate a limit, that is an opportunity. They use these opportunities to develop projects and that circles back, bringing in the new control limits. 

AVEVA PI System helps them to consolidate those gains. In addition to that, from an engineering point of view, our simulation and design packages now include greenhouse gas emissions for a number of processes where it is able to identify the problems. It helps assess where you could picture those impacts and design better from the very beginning. And as we model those processes, we bring the data from design into operations moving forward.

We are seeing customers these days using these models for real time decision making. In terms of planning and scheduling, the unified supply chain tools, especially for petrochemical players allow them to plan for carbon footprint so that they can choose their raw materials, energy consumption choices, carbon credits, and calculations could be done for production run and net zero emissions. 

How robust are these models from a net zero perspective and how do you plan to achieve 90% accuracy level?

From a planning and scheduling point of view, those are the allowances that are input by the users, so it is based on their knowledge of their process. From the simulation engine, the first principle models are in place. It’s just an extension of the chemistry at this point. And as our knowledge improves, those models will improve. 

Innovations that AVEVA is integrating in the next version of software? Are you focusing on any specific software this year? 

We have a great team in India and with the addition of a team from Schneider Electric, our portfolio has just broadened. It will further continue to improve. 

Last two years of my involvement in India, we have focused on real-time data, the operations data. Next step will be how we use that data. For AVEVA PI customers, the natural transition has been into their asset base, looking at asset strategy, predictive analytics, understanding what equipment is critical and then prioritizing and putting the next level of analytics on top of them. I think that has been a big push. It is not a new product but will be new for many customers who continue their digital transformation. 

AVEVA's outlook for India during 2023? 

India continues to grow and excel. As the industry continues the journey, the level of information and data will grow. These technologies are not just to buy and put on shelf but they are solutions to use. They will help the industry to get better faster and I think the key to AVEVA’s success is that these tools are useful to you not just today but enablers of growth for tomorrow. And that’s going to be critical for India’s growth story. 

May 15, 2023

What are the key milestones achieved by Aarti Industries during FY 2022-23?

In 2022, Aarti Industries Limited (AIL) sharpened its focus on building a company that is increasingly agile, resilient, and future-ready. The company reached new heights and set aims for bigger milestones in the journey of becoming a world class company. 

Major milestones achieved during FY 2022-23 are: Catering to the third long-term contract, the company commercialized a new manufacturing unit at Jhagadia. The company anticipates plant expansion and production ramp-up in a phased manner as per the contract terms in the coming quarters. The company secured a binding 20-year term sheet with Deepak Fertilizers worth more than Rs. 8,000 crores, assuring a consistent and sufficient supply of Nitric acid, a crucial raw material used in manufacturing processes. This partnership will begin on April 1, 2023 and will eliminate the need for investment in concentrated Nitric acid backward integration. The company also demerged its Pharma division into a separate listed company called Aarti Pharmalabs Limited, enabling both companies to concentrate on their respective businesses and growth opportunities independently.

Capex investment in FY 2022-23 and plans for FY 2023-24. Projects where you are investing? 

In FY23, we invested Rs. 1,200-1,300 crores in new projects, scaleup activities, asset restoration, debottlenecking, site development, setting up pilot plants and sustainability initiatives. In FY24 and FY25, we plan to invest a total of Rs. 3,000 crores in new chemical value chains and high-potential products to increase the addressable market size and meet the growing demand of key customers. Our upcoming Capex projects include NCB (Nitro Chloro Benzene) capacity expansion and downstream product plants that are expected to start contributing from H1 FY24. 

Update on commencement of capacity expansion for NCB manufacturing facility at Vapi; Expansion cum asset upgradation for Acid Unit at Vapi; Expansion of Ethylation and NT capacities; and expansion, asset restoration, and sustainability Initiatives planned by the company?

Brownfield expansion of the NCB facility at Vapi and a few other Speciality Chemical blocks have been progressing well. These will become operational over the next couple of quarters and start contributing from H2 FY24. We have started the initial work around expanding the Ethylation capacity at Dahej SEZ by 3x with an investment of Rs. 200 crores. Further, with our NT capacities reaching over 90% utilisations, we have commenced the work related to debottlenecking of Nitro Toluene capacities. We target the capacity increase by about 50% with an objective to cater to certain high-growth applications in agrochemicals. We expect both these units to commercialize in H1 FY25.

Update on site development work initiated on 100+ acre land at Jhagadia (Zone IV) and when are you planning to commercialize it? Products to be manufactured?

The project development work at Zone IV is progressing well, with the pilot plant currently under development. We have received environmental clearance and the facility will manufacture more than 40 products related to the Chlorotoluene value chain which will be commercialized in three phases. 

Work for Phase - 1 has already begun. The project is expected to be commercialized from H2 FY25 and is likely to contribute significantly to the growth of the company. The project will provide a wide range of locally produced chemicals that are currently imported by the Pharmaceutical and Agrochemical industries. Around 50% of the products will be targeted for the export market. The introduction of new products will extend our value chain advantages further downstream. This will strengthen our relationship with existing customers and create new customer relationships. Additionally, the project will also enhance our chemistry and technology capabilities into newer areas that can be leveraged in the future to further expand product offerings.

The company is looking at growth through five pronged strategies - Introducing Chlorotoluenes Value Chain; Setting up Multipurpose Plants (MPP); Newer range of Value Added Products & Other Speciality Chemicals; Manufacturing Outsourcing/Strategic Alliances; and Custom Manufacturing Opportunities. How will these strategies transform AIL?

Earlier in our legacy Benzene value chains, we adopted a sequential approach of adding new products incrementally based on demand from existing or new customers. This meant making incremental investments in upstream and downstream capacities as and when needed. However, for the Chlorotoluene value chain, our strategy is a bit different wherein we have looked at the value chain holistically and planned product capacities in sync across the value chain. This will enable us to be Capex-efficient and facilitate faster ramp-up of capacities once commercialized. 

The upcoming multipurpose plant will enable Aarti Industries to enter into higher value-added products that will build on its traditional value chain-centric approach. It would also enable faster commercialization of new products and reduce time-to-market (product inquiry/conception to commissioning). Over the past five years, we have achieved considerable success with our manufacturing outsourcing and long-term contracts that not only provide stable business to the company but also introduce our team to new technologies and global best practices. With the growing trend of China+1 and Europe+1 in the chemical industry, we believe that India is well positioned to attract long-term partnerships from global chemical firms. This will enable us to expand our business and capabilities further while also contributing to the growth of the chemical industry in India. 

Initiatives for enhancing process safety across all processes? How are you collaborating with business partners to imbibe ESG practices? 

In order to enhance process safety and ensure zero deviation for sustainable growth, we have taken several initiatives. We have established a dedicated Process Safety team at our corporate and manufacturing locations, and have also set up a world-class infrastructure and research facility - Aarti Research and Technology Center. We have strengthened the Hazards & Operability study procedure by introducing different guidewords, and implementing applicable learning from external process safety incidents. Our process safety audits are conducted with external subject matter experts, and we have also introduced the concept of TACIT Knowledge sharing activities for learning and development.

Furthermore, we monitor daily process deviations, interlock bypass, and CAL mode on a daily basis, and have enhanced our Chlorine Handling System across AIL with the help of a Chlorine subject matter expert. We have a robust Hazard Identification and Risk Assessment procedure (HIRA) in place, which is done for each individual activity/step involved in Standard Operating Procedures (SOPs). Additionally, we conduct process safety studies for existing and new projects, including Thermal Safety Studies (DSC, TSu, RC1e) for all new and existing processes, and Powder Safety studies (MIE, MIT, LIT, Powder Resistivity, etc.) for all new and existing powder handling operations. We also validate process parameters at the pilot and commercial level, and conduct Criticality Class Study, SIL Study, QRA, and HAC study for all commercial plants.

We are committed to enhancing our sustainability performance in supply chain by engaging with suppliers on ESG practices. We have prepared a strategy for sustainable supply chain management, in which we screen all existing and potential suppliers on sustainability criteria to identify risk and ensure a sustainable supply chain. We also collaborate closely with our identified high-risk business partners to build their capabilities, strive to imbibe ESG practices in their operations, and encourage them to adopt best practices that align with our sustainability goals. We believe that by working together, we can create a sustainable ecosystem that benefits all stakeholders.

Sustainability roadmap of Aarti Industries and when are you planning to become Net Carbon Zero? Sustainability plans for FY 2023-24? 

Aarti Industries is committed to sustainability and has signed the Science Based Target initiative (SBTi) commitment. We plan to set targets at the earliest in order to become a Net Carbon Zero company. We have identified a number of initiatives to reduce our energy consumption, including energy efficiency improvement projects and energy loss reduction. In addition, we have invested Rs. 18 crores to source 147 MW/day of renewable energy which is a significant step towards reducing our carbon footprint.

Furthermore, we aim to reduce our carbon footprint by replacing conventional fossil fuels with biomass. Moving ahead in FY 2023-24, we have set our sights on various additional sustainability initiatives, including exploring new technologies for clean energy and continuing to invest in renewable energy sources. We also plan to improve our energy efficiency and reduce energy consumption to become an environmentally responsible company. Through our investments in renewable energy sources and exploration of new technologies, we are well-positioned to achieve sustainability goals in the coming years.

CSR initiatives being undertaken by Aarti Industries in FY 2022-23 and plans for FY 2023-24? 

At AIL, we continue to seek avenues to foster and support the aspirations of communities with a firm belief of touching and transforming lives of people around us. True to our belief that CSR projects must be robust and impactful to bring about transformational changes in the lives of our stakeholders, we collaborate with our trusted partners having strong grassroot presence for executing our CSR interventions. All our community actions are carried out through Aarti Foundation. 

We do this by focusing on the themes of healthcare, education, and environmental protection. Towards education and skill development, we associated with Shri KVO Jain Mahajan for a project. This project aims to provide interest-free loans, scholarships for higher education and medical aid to the underprivileged.  

In our endeavor towards upliftment of underprivileged clusters and communities, we have joined hands with Bhansali Trust and took up the Musher Integrated Development Project in Fatehpur, Gaya. This project focuses on education, health and hygiene, microcredit, and nutrition for the villagers. We also contributed to the reconstruction of the school building of Sheth M. P. Rashtriya Shala Trust in Mumbai to promote education. Additionally, we have assisted Matruvandana for the Navneet-Chandravallabh Mahila Arts College to aid needy girl students in completing their graduation and senior citizens in receiving better medical welfare, food, and milk. 

In FY 2023-24, we plan to continue supporting our current projects. We also aim to strengthen our efforts towards sustainable development. Moreover, we have planned to initiate new projects that align with the United Nations' Sustainable Development Goals (SDGs) and make a positive impact on our society. With a commitment to creating long term value for all our stakeholders, we will continue to strive towards achieving CSR goals and positively impact society. 

Other achievements in FY 2022-23?

As a testimony of our commitment towards sustainability, we received following recognition and certifications: Permission to use Responsible Care Logo for a period of 3 years from April 2022 - March 2025; Gold medal in EcoVadis CSR Assessment 2022; Best Environment Friendly Company of the Year at FICCI Chemicals and Petrochemicals Award 2022; Most Innovative Environmental Project Award at the CII National Award for Environmental Best Practices 2022; Platinum Title of 12th Exceed Environment Award 2022 in the category: Environment Preservation; “B” Rating in CDP Climate Change disclosure; “A-” Rating in CDP Supplier Engagement disclosure;  For our futuristic approach and readiness to thrive in the age of uncertainty, we were recognized as the Economic Times Future Ready Organisation 2022 in the ‘Large Category’; and we became the only Indian company to win the Best Supplier Relationship Management Initiative Award during the prestigious CIPS Asia Excellence in Procurement Awards 2022.

April 19, 2023

Address by Nikhil R. Meswani, Executive Director, Reliance Industries Ltd. at ICC Chemical Outlook Conference 2023.