June 10, 2021

How has Granules India responded to the COVID-19 pandemic challenge?

We tried to be as proactive as we could with handling of COVID-19 situation. While running the facilities without disruptions was a priority, ensuring employee safety while following the government restrictions was a bigger priority. We did a lot of contract tracing, ensured any sign of illness was caught at the right time and right remediation measures were in place for the employees and their families. We had a lot of sanitization measures in place and ensured social distancing was in play. We also had a lot of the staff work from home. Most importantly, we ensured that the right medical amenities were made available to the employees and the families. 

What are the major R&D initiatives and investments made on key projects at Granules? Areas of focus and outcomes so far?

Over the last few years, we have been constantly investing in R&D, expanding our product portfolio to address the prospective demand across global markets and meeting global regulatory standards. Our focus areas have been diversifying the portfolio by development of large volume products with unparalleled process efficiencies, moving from simple IR products to complex ER dosage forms, and being integrated to the extent feasible on key molecules. 

As on 31 Mar 2021, we have filed 24 DMFs in the US market and 26 DMFs in the European market. In finished dosage form, we filed 51 ANDAs with the USFDA of which 40 ANDAs have been approved and 11 are under review. We also filed two dossiers in European region and 3 ANDAs filings in Canada. We have over 50 dossiers under development. All of this is made possible by constant efforts by our R&D team. We will continue to strengthen our R&D by investing in new capabilities and expanding capacity. 

How do you view the govt's PLI scheme to boost domestic pharma API manufacturing India? Is it lucrative enough for industry?

India is dependent upon China and other countries for a lot of Key Starting Materials (KSM) for their bulk drug needs. To have self-sufficiency for our bulk drug industry, the government has come out with a PLI scheme for certain API and KSM to be made out of a greenfield facility set up specifically for this purpose. We feel that the quantitative restriction on certain KSM would be a bit of a dampener to utilize the same. We do have certain technologies which we are working with some of our partners who would be investing for certain of the KSM. We might not participate but will subscribe for the quantities produced by our partners. 

What was the revenue and PAT achieved by the company during the FY 2020-21? Your expectations for revenue in FY 2021-22 and growth drivers?

During FY 20-21, the company had a top line of Rs. 3,237 crores with a bottom line of Rs. 549 crores. In FY 21-22, we are estimating a PAT growth of 20% assuming the Covid situation doesn’t dampen our efforts further. The major growth drivers would be the increased volumes and geographies of our legacy business and new product launches in the US while increasing our product penetration in the new geographies. 

What are the company's major plans in terms of technology adoption and digitalization across various business verticals?

The company has been on the latest SAP HANA platform for the last 4 years and generally works on the cutting edge technologies. We are implementing digital quality management systems across our facilities to improve quality compliance and process efficiency. To move out of technological obsolescence, we started leasing IT assets, which would get renewed every 3 years. Due to the pandemic, we moved all our banking operations online to avoid usage of cheques. The company also uses various technological solutions to be on the forefront in various manufacturing operations too. 

Capex investment made by a company to set up a new manufacturing plant or expansion into new territories?

The company is planning its next round of Capex cycle and would be investing around Rs. 1,000 crores in the next 3 to 4 years. We are looking at a greenfield formulations’ facility in Genome valley for around Rs. 450 crores, around Rs. 300 crores would be spent on API expansions in Vizag, remaining on other Capex activities in the US, and maintenance Capex. We believe that this additional Capex will not only strengthen our position in existing areas of focus; provide fixed depositcapacities to launch new R&D products, manufacture larger volumes of the existing and new APIs and add to our packaging capabilities in the US but will also position us to take on manufacturing requirements for the business development activities that are being evaluated. 

Major CSR initiatives undertaken in the recent past? Any initiatives to address humanitarian crisis and medical emergencies during the ongoing pandemic?

The company works in CSR areas in and around its plants to strive for the upliftment of the people in these regions. We along with Swarna Bharat Trust work for the welfare of students who have passed class XII and are given basic training about pharmaceutical operations and are absorbed as trainees in various Granules factories. While doing their training they also earn a degree and become a full-fledged pharma professional after 3 years. Recently, the company has donated Rs. 16 crore Paracetamol tablets to the government of Telangana for their drive against COVID-19. 

Future business outlook of Granules India in 2021?

At this point, the only outlook we have is to ensure that we are able to run the facilities without any disruptions so our customers and patients across the world have an uninterrupted access to medication.

May 12, 2021

May 12, 2021

April 13, 2021

What are the global trends in Performance Chemicals in 2021 and how will it impact India?

In 2021, Performance Chemicals will increase by 5-10 per cent globally. The impact of COVID-19 will continue in 2021 and as a result travel restriction would reduce travel. There will be fewer one-to-one interactions, digital meeting and wearing a mask is the new normal. In 2021, the raw material price trend shows that this year, the market will be more volatile because of the uncertainty of availability and new norms laid out by the government. It will impact India in the second half of 2021. The increase in raw material prices will impact the price of finished goods and this will lead to inflation. Presently, there is huge volatility in crude oil and hence the crude oil-based raw material price will increase. The focus is on being more sustainable and how it creates more value from every rupee spent on speciality chemicals, in short, we are talking about Chemistry 5.0.

How would you explain the trends in Textile Specialty Chemicals in 2021 and how will it impact India?

The global textile chemicals market size valued at US $ 23.62 billion in 2018 and is expected to grow at a Compound Annual Growth rate (CAGR) of 4.5 per cent from 2019 to 2025. Environmental concerns associated with textile chemicals have shifted the focus of major manufacturing companies toward green (bio-based) chemicals that are eco-friendly. Companies involved in the manufacture of bio-based chemicals offer cost competitiveness owing to the availability of low-cost feedstock.
There is an increasing demand for sports and activewear on account of the use of antimicrobial finishes for manufacturing such products. Textile chemicals help prevent odour and bacterial infection caused by the sweat trapped in clothing such as undergarments, socks, T-shirts, and other sports apparel. The rising demand for customized solutions is expected to significantly boost the overall product application.
In the Indian context, the fluctuating raw material prices of phenols and surfactants are expected to pose a challenge for the market players to achieve profitability and economies of scale. The majority of manufacturers in India have shifted their focus towards investing in product innovation supported by the Make in India scheme of the government.

Key milestones achieved by Rossari Biotech in FY 2020-21 and plans for FY 2021-22?

Few of the major key milestones achieved in the FY 2020-21 include setting up a Centre of Excellence at IIT, Bombay at Powai, commissioning of the Dahej project, tie-up with CSIA, Mumbai Airport, branded dispensers, and supply sanitisers for the use of passengers, foray into E-commerce by listing HPPC products on the Amazon platform.
Our key priority and strategic aim are to grow across all the areas of application in all our four core chemistry areas that we excel in. As we move ahead, we will continue seeding new businesses with the existing assets. We are working intensely on attaining more and more capabilities and building relevant infrastructure to foray into newer areas where we foresee sizable growth. We reaffirm our commitment to sustainable growth and enhanced value creation and remain resolute to work towards building the ‘Rossari’ of tomorrow. This, in popular parlance, is termed as “Ross-Era 2.0” within our organization.

For the HPPC division in 2020-21, we are very much in control of COVID-19 and hence if we can sustain our business then it is the biggest milestone we have achieved. In the case of Rossari, we retain our customers, sustain the ups and downs due to COVID-19, and last but not least grow by approximately 20 per cent as compared to FY 2019-20. We have started our new plant at Dahej and successfully delivered goods from there. For FY2020-21 we have big plans. Apart from the soaps and detergent business this year we will focus more on paints and coatings; pulp and paper; cement and industry; water and wastewater treatment.
This year we plan to grow over 50 per cent this financial year compared to the last and give more time to new developments.
In the textile business, we manufacture over 1,500 products that find applications across the entire textile value chain. The target plan for FY2021 is to enhance focus on Health, Hygiene & Wellness products resonating with the current situation and increase in profitability. Another target is to add more product lines in Dyeing Auxiliary & Weaving Preparatory segments, such as Sizing and Yarn Lubricants. We also aim to expand the existing portfolio of sustainable and green products.

What are your expectations in terms of revenue and profit during FY 2020-21 and FY 2021-22?

Our revenue and gross profit till the period ended in December 2020 were Rs. 491.12 crore and Rs. 179.54 crore respectively. We are projecting 12-15 per cent growth for FY 2020-21. There is an uptick in our TSC and AHN division from Q2 and has started regaining pre-COVID levels. The HPPC segment has been our major growth driver. The revenue from HPPC business for 9 months is 59 per cent which we expect to grow considering the potential in this segment.
How has the export revenue been for Rossari Biotech and what are your plans concerning exports?
Our total export revenue forms 10-12 per cent of our total revenue which we expect to continue. The domestic markets for the businesses we are in are very huge and it gives us tremendous opportunities to increase our share therefore the focus would be developing domestic markets by continuing the same levels of exports.

What are the key R&D initiatives that the company is focusing on in 2021?

Our new state-of-the-art certified R&D laboratory at Rossari Centre of Excellence at IIT, Bombay is fully equipped with advanced testing and research equipment. Engaged in innovative and developmental research, our R&D lab will become a game-changer in innovation, optimal efficacy, and indigenous technical prowess. It offers numerous benefits such as fruitful partnership and beneficial projects; facilitating alliances with leaders engaged in sustainability, new materials, and performance chemicals; and leveraging PhD projects to tackle long-term problems. These benefits will help us understand the ever-changing needs in the speciality chemical industry and help us in our long-term strategies.
With the new R&D lab, we aim to set-up a new ecosystem that boosts innovation with new technologies and sharper focus. This will help us in creating both sustainable and commercially viable solutions for our customers. The new infrastructure facilities will help us catalyse the faster commercialisation of innovations.

What is your capex plan?

Our budgeted Capex for the Dahej facility is Rs. 108 crores of which we have already spent approximately 80 per cent to date. Instead of project Capex, there will be only maintenance Capex in FY 2021-22.

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

With regards to scalable and sustainable growth, we have grown our business sustainably – even in the face of formidable odds – and today we are reputed as a stable, sustainable, and robust organization. In addition to our rigid focus on sustainable chemistry, our enduring business is helping us build a sustainable future and deliver continuous value to all our stakeholders. Our customers, vendors, and employees have been equal participants in the journey we have embarked upon. Our strategy, execution, and agility speak for themselves. As the demand for sustainability rises and contributes to our competitive advantage, we continue to realize the value of our sustainability-minded investments. We move ahead with a clear strategic ambition of focusing on the main value to be generated from sustainability and a commitment to drive change.

How will the digital transformation projects initiated by the company be beneficial in the long run?

We at Rossari, thoroughly believe that the future is digital and we have already taken the steps in this direction. Our presence on prominent social media platforms like Facebook, LinkedIn, Instagram and Twitter can be seen with a good number of followers. This is backed by strong and relevant content which keeps the viewer’s interest high.

What are the key CSR initiatives being undertaken by the company and plans for 2021?

In Surat and Silvassa, we granted rented scholarships for higher education, promoted girl child education, and contributed to educational institutions for the distribution of books and education equipment. We also contributed to the establishment of medical health centres. For relief and rehabilitation in Karnataka, the company contributed towards the rehabilitation of disaster-affected areas. Under community empowerment through pan-India activities, we contributed towards community empowerment projects, like setting up homes and hostels for women and orphans, shelter homes, and educational institutes. As India battled the COVID-19 crisis, we pledged our support to help the nation fight against the virus. To make people adopt stricter COVID protocols like wearing a face mask or washing hands, our Healthcare Heroes went above their call of duty.
We partnered with Lepra Society to deliver sanitisers to Bihar and Andhra Pradesh for leprosy patients. We are also associated with an NGO Salute2doctors to assist the medical personnel fighting the Coronavirus by distributing sanitisers and disinfectants to Tier 2 cities in southern India, including Bengaluru, Hyderabad, and Coimbatore, among others. We distributed sanitisers to various sections with our partner Bhilwara-based Prakash Dyechem. We also reached out to underprivileged children in 40 orphanages, childcare facilities, and observation homes in Mumbai, and supplied them with sanitisers and hand washes.

What is the future business outlook for the company in FY 2021-22?

We are excited about the opportunities that lie ahead of us. Our key priority and strategic aim are to grow across all the areas of application in all our four core chemistry areas that we excel in. Further, as the Dahej plant gets commissioned by the end of the year, our short-term goal will continue to attain higher capacity utilisation. As we move ahead, we will continue seeding new businesses with the existing assets. We are working on attaining additional capabilities and building relevant infrastructure to foray into newer areas as we see a lot of promise.

April 08, 2021

Mayank Singhal, Vice Chairman & Managing Director, PI Industries Limited shared his views on global trends on crop protection chemicals, R&D plans, production capacity, key milestones, company’s performance, Capex plans, CSR activities, outlook and much more. Excerpts of the interview: 

What are the global trends in the Crop Protection Chemicals industry in 2021 and how will this impact India?

This year we expect the global crop protection chemicals industry to grow at 2-3 per cent. LATAM and Asia markets will be the growth regions and the same will be the case in India. COVID-19 may have distorted the global supply chains but overall there is minimal impact. Stringent regulations causing some products to go off the market and diversification of the global supply chain will be the major trend.

How do you look at R&D Services, CSM Services and Distribution Services concerning Crop Protection Chemicals?

Although historically there has been a limited opportunity in R&D services, this has considerably changed. Global majors find space (Field trials, toxicology studies, etc.) to outsource to Indian CROs and we expect this will grow. Growth in CSM Services is a major success story and for PI in particular. Major factors including geopolitical tensions, cost advantage, respect for IP, and accumulated expertise will make select Indian players continue to grow in this space, provided safety and sustainable practices are stringently followed.

With a large Indian agriculture space and a limited number of registered agro chem products, we see plenty of opportunity in distribution services in India. COVID-19 accelerated the move to online marketing and reaching out to farmers directly but there is still a long way to go.

What is the company’s production capacity? How is it spread across the world? How do you plan to increase the market share?

Overall, we have 15 multi-purpose plants across various locations in West India. We have invested in Capex over the years and continue to invest to meet the growing demand from customers. Domestically, PI operates in a limited set of products and enjoys a significant market share and leadership position in those products. PI also figures amongst the top 5 players globally in the agro chem CSM space, particularly in the early stage molecules.

Please take us through key R&D initiatives in 2021?

PI is known for its R&D capabilities across the globe. We continue to make significant investments in our Process R&D and various technologies to cut down costs. This year, we are focusing more on scaling up products through sustainable green initiatives.

Key milestones achieved by PI Industries in FY 2020-21 and what are the plans for FY 2021-22? New products where you are focusing and how will it impact PI Industries?

Key milestones during FY 2020-21 include integrating Isagro with PI thereby maximizing synergies and capacity utilization. We created a differentiated focused strategy on horticulture crops through Jivagro and integrating the manufacturing operations with that of PI’s CSM business. We commissioned four molecules at the Isagro site. We successfully scaled up Awkira, launched Londax powder, and completed recertification audit for ISO 17025 at PNL & JMB and (QMS) IMS audit. We raised Rs. 2,000 crore via QIP route (which generated 6x interest) to pursue inorganic growth opportunities (diversification into adjacencies, including pharma).

For FY 2021-22, we have 5-6 molecules at various stages of development and ready to be commercialized. Another is that MPP to be made ready besides high visibility of sustainable growth. We are actively evaluating pharma assets and continue building a strategic roadmap of diversification, leveraging on existing strengths. We are looking at new IP for deepening our technological capabilities, de-risking current operations, and opening up newer opportunities We aim to demerge the B2C business of Isagro to Jivagro and merge Isagro’s manufacturing business with PI CSM.

Company's performance expected in terms of revenue and profit during FY 2020-21 and what is the forecast in FY 2021-22? What are the growth drivers?

For our 9M FY21, our top line has grown by around 35 per cent YoY and PAT has grown by around 61per cent YoY and we expect to exceed our original guidance to grow by around 20 per cent on a YoY basis. For FY 21-22, while our business plans are still in the process of finalization, we aim to maintain the growth momentum and achieve PAT growth of around 20 per cent.

The demand for key commercialized molecules remained strong. There has also been an additional contribution from Isagro and robust momentum in PI’s leading brands. We have also managed to have strong control on overhead costs accompanied by healthy collections.

Capex invested in FY 2020-21 and what is the plan for FY 2021-22? What are the plans related to automation and digitisation across all its operational facilities?

In FY20-21, we have invested Capex of more than Rs. 600 crore. In FY21-22, we will continue to invest in new MPP, technologies, and pharmaceuticals.

To give you examples of our digitisation initiatives, during this year, we have deployed sales order applications across all zones, allowing mobile and web-based order placement by sales force and channel partners. The automated Fleet Management of Application Spraying services and ARIBA sourcing platform are being planned as well.

How is the company striking a balance between environment-friendly policies and sustainable growth? Are key CSR initiatives being undertaken by the company?

With a firm conviction in the business case of sustainable development, we have been steadily imbibing it with increasing investments in social and environmental aspects. We undertake various initiatives on clean technology, energy efficiency, renewable energy, and water conservation to address global environmental issues such as climate change and global warming. Our manufacturing facilities are also equipped with the amenities that help recover, recycle and preserve and reduce water consumption, which in turn, contribute to our Green Initiatives.

Empowering local communities is the foremost constituent of PI’s sustainability policy. The company has been bestowed with various prestigious awards for its manufacturing excellence and corporate social responsibility (CSR) from time to time. Our efforts at water conservation through community programs won us CII’s National Award for Excellence in Water Management 2020.

Our CSR strategy consists of the integrated and all-around development of the communities in which we operate. Over the years we have worked on propagated Direct Seeded Rice (DSR) technology amongst rice farmers; mobile Healthcare Vans around our plant location, facilitated through PI’s Swasthya Seva initiative and Blood Bank services; PI’s women empowerment programs; PI’s learning enhancement programs for providing quality education to school children; and 1,800+ youth gained employment post completion of, free of cost, employability linked skill training and market initiatives at our skill development centre in Bharuch.

April 06, 2021

Rajendra V. Gogri, Chairman & Managing Director, Aarti Industries Limited shares his views on global trends on Speciality Chemicals and pharma, plans for FY 2021-22. Excerpts of the interview:

What are the global trends in speciality chemicals in 2021 and how will it impact India?

The global trends in speciality chemicals are a well-known combination of global companies diversifying their supply chain with a China+1 strategy, as well as the US-China trade issues and China’s environmental policies driving many opportunities and interest in sourcing from India.

The speciality chemicals story in India is quite attractive with three drivers - growing domestic demand, the substitution of imports and harnessing export opportunities. Within speciality chemicals, there are many segments such as agrochemicals, dyes and pigments, flavours & fragrances, water treatment chemicals, polymer additives, etc. Each segment will have its growth trajectory driven by end-user demand and also differing industry-market dynamics. Some of these segments were negatively impacted by the COVID-19 disruption whereas others were quite resilient or even registered growth in the pandemic year.

In 2020, as the US and Europe were hit by multiple waves of COVID-19 infection, China emerged as a key export destination for Indian chemical players. Going forward, as countries and economies return to the growth path in 2021, this is expected to reverse and some speciality chemical segments may see a strong revival in demand. I think this period may see major disruptions in global supply chains as demand for some products may rise very sharply and may be accompanied by a corresponding rise in prices. As crude prices continue to move upwards, there would be further inflationary pressures on chemical prices across the board.

We believe Indian companies are at a good inflexion point and are well poised for high growth in various end-user applications. On an overall basis, we are entering the golden era for the Indian chemical industry and much more is to be achieved in this decade.

Global trends in the Pharma industry in 2021 and how it will impact India?

According to the IQVIA’s 2019 Global Use of Medicine in 2019 report, the spending will exceed US $1.4 trillion by the end of 2021. The growth is driven primarily by new products and innovative technologies in leading pharmaceutical markets, such as India, China and the United States.

This trend will likely continue through 2023 despite the pandemic. There is an opportunity for the Indian pharmaceutical industry to play a larger role in global drug supply-security. As per a McKinsey survey report, from a market size of US $12.6 billion in 2009, the Indian pharmaceutical market grew to US $ 55 billion by 2020, with the potential to reach US $ 70 billion in an aggressive growth scenario very soon. India’s domestic pharmaceutical market turnover reached US $ 21.5 billion with a growth of 9 per cent y-o-y in 2020. The advantages of Indian pharma companies are cost efficiency, innovation, economic drivers, policy support, and increasing investment.

Key milestones achieved by Aarti Industries in FY 2020-21 and what are your plans for FY 2021-22?

During the year, the company commercialised a few of its critical projects for instance the expansion of Chlorination capacity from 110,000 tpa to 175,000 tpa. There are various other projects such as projects for long term contracts, Expansion of USFDA approved facilities, etc. are lined up for commissioning and commercialisation which will drive the growth of the company for the next 3-5 years.

We have a strong project pipeline and based on the opportunities available, we firmly believe to drive the growth forward while continuing onto the growth momentum. We expect to continue investing over Rs. 1,000 - 1,200 crore annually for various such growth initiatives over the next five to six years and create a stronger presence of the company in the global speciality chemicals space.

Despite the challenges faced during the lockdown, Aarti Industries has honoured every offer that we had made and hired more than 700 people in the last year. In addition to 700 employees coming on-board, we also on-boarded 150 management trainees from various colleges and universities across the country. We also announced brownfield and greenfield expansion, and this will require additional manpower which will be hired.

Company's performance expected in terms of revenue and profit during FY 2020-21 and what is the forecast in FY 2021-22?
Aarti Industries has a high brand position in areas such as reliability, productivity and reduction in the total cost of ownership to customers. Our strategy has expanded PAT from around 7 per cent to 10-11 per cent. The Group has been growing phenomenally at a CAGR of approximately 13 per cent over the last six years.

Our financial performance in Q3 showed continued improvement and we have forecast a stronger turnaround in the second half of the financial year. The sustained strong momentum on both operating and financial parameters during the third quarter is based on improving visibility across all end-user markets. During Q3, we reported a revenue of Rs. 1,311 crore, which was higher by 7.6 per cent Y-o-Y, driven by a turnaround in demand for our regular markets and established relationships. The company also recorded its highest-ever quarterly EBITDA, PBT and PAT for the company in Q3 FY20-21.

Our long-term ambition is to further embrace open innovation and create a fit-for-purpose and sustainable organisation. We will continue to expand our manufacturing base; launch new products; and invest in R&D, product and process development. We are also geared to benefit from the trend of global supply chains favourably looking at strong Indian chemical companies to establish long-term strategic supply arrangements. We see multiple avenues for growth, in expanding our existing value chains, getting into new value chains, co-developing new products with our customers, forming strong partnerships for tapping manufacturing outsourcing and pursuing available opportunities in the pharmaceutical sector.

How has the company performed internationally and what are your plans for exports? Are you focusing on any new geography internationally?

Direct exports account for about 40-45 per cent of the total revenues. However, a bulk of the company’s products sold in the domestic market is value-added by its customers and exported for global market requirements. Thus in a way close to 65-70 per cent of the company’s produce is directly or indirectly exported.

Aarti Industries has a de-risked portfolio that is multiproduct, multi-geography, multi-customer and multi-industry. Its 200+ products are sold to 700+ domestic and 400+ export customers spread across the globe in 60 countries with a major presence in the USA, Europe and Japan. Its speciality chemicals and intermediate products find usage in pharmaceuticals, agrochemicals, polymers, pigments, printing inks, dyes, fuel additives, aromatics, FMCG and various other industrial sectors. Presently, the company continues to focus on various opportunities in the end-user applications of pharmaceuticals, agrochemicals, eng polymers & various other speciality products.

The company is planning to increase its efforts towards R&D and innovation. Please take us through key R&D initiatives that the company is focusing this year and your achievements in 2020?

Aarti Industries has evolved from being a vendor to becoming a partner of choice. Our four state-of-the-art R&D centres located at Dombivli and Navi Mumbai in Maharashtra, and Vapi in Gujarat, are continuously researching to develop new products and finding a way to make the by-products marketable. Equipped with modern machinery and dedicated laboratories, these research centres promise to further enhance the product portfolio and improve the manufacturing process.

We have a clear strategic focus to become a reference in speciality chemicals and pharmaceuticals the world over. Our long-term ambition is to further embrace open innovation and create a fit-for-purpose and sustainable organisation.

Key R&D initiatives that the company is focusing on in 2021: Continue building and commissioning Phase-2 of Navi Mumbai R&D centre with a further doubling of manpower while adding new capabilities and dedicated state of the art infrastructure for process safety and scale-up data generation facility; Setting up state of the art Bio-fermentation laboratory to support Bio innovation aspiration of the organization; and Scaling-up of several molecules from lab to pilot scale, which are critical raw material and intermediates for agro, pharma and special application.

What's your plan on speciality chemicals expansion and products which you are planning for expansion?

In line with our value chain approach, our focus is to set up complete value chains in India with no dependence on imports for key raw materials. We set up the nitrotoluene value chain in 2016, which created an opportunity for setting up metolachlor manufacturing by UPL (since the key intermediate of MEA became locally available). We are now working to expand our nitrotoluene value chain as well as set up a value chain starting with chlorination of toluene over the next 3-5 years. This value chain has a current import bill of nearly US $ 300 million and also a sizable export potential. Besides, the availability of early intermediates is expected to spur downstream investments in India.

While we work to set up new capacities in new and existing value chains, we are building our capabilities in new chemistries and setting up multipurpose plants to improve our speed to market going forward. We are also actively seeking opportunities to work with global chemical majors to set up manufacturing facilities in India to leverage the India advantage in terms of cost of manufacturing and investment, technical capability, improving regulatory environment and sizable domestic market.

What's your plan on API, Intermediate and Xanthene expansion?

Our Pharma business continued to deliver growth in revenue with positive operating leverage on increasing volumes. Segment revenue grew by 32 per cent Y-o-Y during Q3 FY21 to Rs. 232 crore, which is the highest ever top-line achieved historically by the pharma business. Based on the higher utilization, continued throughput from our regulated market and higher contribution from value-added products and a growing pipeline of new introductions, the segment margin is seeing structural improvement.

Currently, Aarti Industries manufactures various commercial APIs with 30 US Drug Master Files (USDMF), 12 Drug Master Files (DMF), of which seven are under assessment, and 18 Certificates of Suitability (CEP), two of which are under assessment. The growth in the Pharma segment is expected to sustain as additional capacity for API and intermediates are getting operationalized soon. We are also seeing the benefits of India's improving position in the global value chain. Going forward, we will continue to drive deeper penetration in therapies such as Antihypertensive, Cardiovascular, Oncology, Corticosteroids etc. We have a strong pipeline of approval and visibility to maintain our growth. Over the years, the pharma segment has grown to a substantial scale and size, having significant further growth opportunity for it to continue with a growth rate of about 20-25% for the next 4-5 yrs.

Capex invested in FY 2020-21 and what is the plan for FY 2021-22? Plans related to automation and digitalization?

Capex for FY2020-21 is expected to be around Rs. 1,200 crore and we expect a similar range in the next financial year as well.

We at Aarti believe in constantly evolving and transforming ourselves and we have gone through transformation journeys in the past however now we are at the cusp of our next wave of business transformation which will be primarily driven by digital technologies.

Sustainability is our topmost strategic dimension and we plan to leverage AI/ML-based video analytics for contextual intelligence to improve safety and perimeter security etc. Digital levers like Artificial Intelligence(AI), Machine Learning (ML), Internet Of Things (IoT), and Cloud Technologies will be the underlying foundation to derive Real-Time Manufacturing Insights. This will empower each of our employees to make faster business decisions and help the organisation achieve data-driven excellence across the value chain of operations, expansion, R&D, strategy, people and governance.

Chatbots and Robotic Process Automation will amplify organisational productivity and improve scalability and provide 365 days of 24x7 experience to stakeholders. In the areas of operational technology, we have taken efforts to inculcate technology across all levels of Aarti Industries. The latest innovation and technologies were adopted for Digital Control Systems (DCS), Programmable Logic Controller (PLC), Foundation FieldBus, Wireless Networks, e-logbooks and SCADA systems.

We will continue to leverage advancements in cloud and information/cyber security to ensure reliability and data security.

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

We strongly believe that sustainability and business must go hand in hand. For us, sustainability is more than just countering risks. It is a path to generating inclusive growth while reducing our ecological footprint along the value chain. Sustainability, therefore, underpins our core principles and is our driver for growth, innovation, and productivity.

Since its inception, we have strived to provide responsible solutions to our customers. And we are doing this in a manner that balances the short- and long-term interests of our stakeholders and the business, and that integrates economic, environmental and social considerations into decision making.

All our operating processes and manufacturing facilities reflect our strong commitment to environmental protection. We are constantly on the lookout for energy-efficient systems and systems that sustain air and water quality or reduce or eliminate waste. In 2020, we achieved ZLD status for two additional divisions, making 14 out of 17 manufacturing sites ZLD.

Future business outlook for Aarti Industries in FY 2021-22?

Aarti Industries, with its integrated value chain and diversified product mix, strong technical capabilities, robust track record and cost-efficient operations, forms an ideal fit for entities looking for alternate suppliers independent of China. Aarti Industries is a knowledge-driven organisation, where we strive towards converting today’s knowledge into tomorrow’s chemistry. We remain committed to investing in technology and innovation to create new chemistry and unearth novel solutions that will contribute to long-term sustainable value creation for all our stakeholders. We are therefore continuously pushing the boundaries of innovation. We will continue to expand our manufacturing base; launch new products; and invest in R&D, product and process development.

We are also geared up to benefit from the trend of global supply chains favourably looking at strong Indian chemical companies to establish long-term strategic supply arrangements. Going forward, our strategic focus is on creating a sustainable growth framework as we align with India's growing position as a preferred partner of choice to global supply chains with scalable capabilities that will help us maintain our growth guidance of 15-20 per cent bottom-line CAGR for the next 4-5 years.

April 05, 2021

Ankit Patel, Executive Director, Bodal Chemicals Ltd. shares his insights on global trends, milestones achieved, growth forecast, R&D initiatives, expansion plans, Capex and others. Excerpts of the interview:

Global trends in Dyes, Intermediates and Dyestuff in 2021 and how will it impact India?
Indian dyestuff sector has been a consistent and strong supplier across the world for a few decades now. Bodal being most integrated and with large export and domestic sales network, it is going to benefit a lot from the fast-growing dyestuff demand from across the world. Dye Intermediates sector does not have much availability from Chinese players so Indian players are going to have a good run in 2021. Bodal is the largest dye intermediates player in India with 20-25 per cent capacity of India’s total capacity.

In the current global Industrial trend, the entire world is seeing India as the upcoming second largest manufacturing hub of the world and it is obvious that all the manufacturing companies specifically chemicals will benefit from the same.

Global trends in Speciality Chemicals in 2021 and how will it impact India?
The COVID-19 has opened doors for many Indian chemicals companies. Now the world has started seeing India as an alternate and strong source for their chemical requirements and they are seeing companies who can provide a one-stop solution for many of their requirements and Bodal has that platform, where it can fulfil the requirements of different industries by our integrated ecosystem.

Key milestones achieved by Bodal Chemicals in FY 2020-21 and what are your plans for FY 2021-22? What are the new products that you are focusing on and its impact on the company?
If we see FY 2020-21, it will be a very challenging year for the entire world as the economical trend is down on all fronts. As per Bodal Chemicals focus, we are in acquisition mode for the last three years and in those acquisitions, few are strategic and has built our strength and helped us to enhance the overall ecosystem. Our expansion of business is not limited to India only but also at a global level in countries like China, Turkey, Europe, Indonesia etc. We are also focusing on new products like Benzene and its derivatives. We are now entering Chlor Alkali with the latest acquisition in North India so these new sectors will contribute to our existing business performance.

Company's performance expected in terms of revenue and profit during FY 2020-21 and what is the forecast in FY 2021-22? What are the growth drivers?
In the coming year, we are looking forward to achieving higher growth. The latest acquisition and new product development will help Bodal to grow big.

How has the company performed internationally and what are your plans for exports? Are you focusing on any new geography internationally?
We have acquired companies in Turkey, Europe and have a subsidiary in China so we can easily cater to the respective geographical territory. We are also planning to focus on other global territories, where we have a good customer base and demand. These business decisions will help us to enhance our export business and develop a global presence.

The company is planning to increase its efforts towards R&D and innovation. Please take us through key R&D initiatives that the company is focusing on in 2021 and your achievements in 2020?
We have a dedicated R&D lab for the Dyes & Intermediates and now we are focusing on Specialty Chemicals so keeping that goal in mind we are enhancing R&D capacity for the new products and derivatives. We continuously work with the chemical departments of prestigious universities of Gujarat.

What's your plan for Speciality Chemicals expansion. Areas where you are expanding?
The strategy for expansion is on two fronts - one is acquisition and another is a venture into new product manufacturing plants. We are now entering Chlor Alkali and also working on Benzene based speciality chemicals at Saykha GIDC, Gujarat.

What's your plan on Dyes, Intermediates and Dyestuff expansion. Areas where you are expanding?
We had expanded our production capacity last year in Dyestuff. We are planning to start VS capacity at our subsidiary SPS processors in the next few months.

Capex invested in FY 2020-21 and what is the plan for FY 2021-22? What are the plans related to automation and digitisation across all its operational facilities?
In 2020-21, Bodal invested Capex of around Rs. 10 crores and acquisition of Chlor Alkali complex will be done at around Rs. 145 crores. In FY2021-22, Bodal is planning to invest Rs. 300 crores for greenfield plants Saykha GIDC. In FY 2022-23, Capex will be Rs. 200 crores to finish greenfield projects and capacity upgradation and expansion.

How is the company striking a balance between environment-friendly policies and sustainable growth?
We have installed the world's best-advanced technology at the environment front, for that, we have a tie-up with Advent Envirocare at the technology front. We also have sustainability as one of the goals and to give focus input for the same we have restructured our safety function and enlarged their role as Environment, Health, Safety & Sustainability (EHSS) function. We are also participating in different certification programs and acquainted with ECO certifications like ISO, Bluesign, ZDHC and GOTS.

Key CSR initiatives being undertaken by the company and plans for 2021?
As an organisation, Bodal Chemicals believes in everyone’s growth and success. During this pandemic period, we did lots of activities like distributing food to the needy; providing shelter to the migrants; extending and driving special support to the front runners such as police, medical staff, etc.

March 31, 2021

Maulik Mehta, CEO, Deepak Nitrite Limited shares his views on global trends, company’s performance, R&D plans, supply chain plans, plans of DPL and DNL, expansion plans and CSR activities. Excerpts of the interview:

What are the global trends in the chemical sector and how will it impact India?

The chemical industry across the globe is undergoing a strategic shift in the supply chain from China to India as a source of raw materials. This presents an opportunity for India to be the global hub for chemical manufacturing.

There is an increased focus on downstream value-added products. We expect govt to promote the setting up of new Naphtha cracking units to meet the growing demand for building block chemicals for down-stream industries.

China’s commitment to be Carbon Neutral by 2060 is one major reason for stringent environmental norms and tightening of financing options for polluters. This evaporates their erstwhile advantage and now brings such companies on par with Indian environmental and financing benchmarks. If Indian manufacturers can supply quality material in the desired quantity, then this shift of sourcing from China to India will become sustainable.

Post-Covid, countries across the globe are focusing on China+ 1 Policy, we expect the Government to extend the Productivity Linked Incentive (PLI), scheme to the chemical sector to capture the global market efficiently.

Trade conflicts across major economies present an opportunity for Indian chemical manufacturers to consolidate their position as a supplier to the global chemical market.

India's growing per capita consumption and demand for agriculture and pharmaceutical-related chemicals offer a huge scope for the sector. The government has promised to bring PLI in agrochemical manufacture but the government should also include AI (Agro-ingredients) manufacturers for Agrochemicals to complete the value chain and lower our dependence on AI import from China.

With the increase in upward mobility and per capita GDP, Indians will not only increase consumption of bulk chemicals that eventually go into end segments like consumer goods and automobiles etc. but it will also consume more of personal care products, Agro-chemicals and in-turn speciality chemicals.

Key learnings for the company during COVID-19 and how are you planning to deploy these learnings in 2021?

COVID-19 challenged a lot of preconceived notions of business. The company decided to double down on its responsibility for protecting both the safety and livelihood of its employees during the pandemic ensuring that nobody was let go and salaries and wages were not only paid in full but even increased to tide them through a difficult period. The company prepared for worst-case scenarios and created 'safety bubbles' where critical employees would be housed in safe zones and transported between pre-booked houses/hotels and the factories. It also ramped up social outreach to improve health and nutrition in villages surrounding all our facilities. Safety of men, material, and equipment was taken as a top priority which helped us avoid accidents that could arise from limited manpower and mitigate potential damage from Cyclone Nisarg that ravaged the coastal areas in Maharashtra in July’20.

We studied the challenges of the lockdown and the reopening of the economy in China and chose to prioritise local employment in contract labour and forward booked container and shipping rates in anticipation of shortages.

Company's performance in terms of revenue and profit during FY 2020-21 and what is the forecast in FY 2021-22? What are the growth drivers?

For FY 2019-20, consolidated revenue stood at Rs. 4,265 crore while Profit was at Rs. 611 crore. For the quarter ended Q3 FY21 Revenue was at Rs. 1,240 crore, up by 9 per cent YoY and profit stood at Rs. 217 crore, up by 38 per cent YoY.

Our major growth drivers are a consistent focus on production, productivity, and a customer-centric approach.

In production, we focus on opportunities such as Brownfield expansion of key products; downstream production in existing value chains; and new product development for new platforms.

In productivity, our focus is mainly on: Process before product; Value from waste initiatives; and Improvement on SHE scores and asset integrity.

In a customer-centric approach: We ensured timely delivery and good quality products to our customers when demand for an end application returned, and offer innovative solutions to customers to help them reduce their Opex.

What are the upcoming research initiatives at Nandesari R&D centre and any plans of adding manpower in the R&D division?

We focus on 2 channels: product development and process intensification. The company has quadrupled investment into R&D with a mix of talent, instruments, and software and plans to set up a new R&D centre at the outskirts of Baroda.

How is the company developing robust supply chain infrastructure and logistics? What are your plans for 2021?

To monitor a vast network of logistics and vehicles covering raw materials, finished products, including spent, we have implemented a GPS enabled tracking system, monitored 24/7. This system has been implemented by one of the best-in-class vendors, LCS. Further, Deepak Nitrite Limited (DNL) is a Star Export House and Authorised Economic Operator (AEO) holder.

How has Deepak Nitrite performed in 2020 and plans for 2021? What is the current manufacturing capacity and how do you plan to scale it up and make India self-reliant?

We follow lean manufacturing concepts and work on sweating our plants to maximise plant utilisation. Our asset turnover is more than 2.5 (Net sales/Gross assets). The company has begun site development of its newly acquired land parcels in strategic locations that will house new products from DNL and its subsidiary Deepak Phenolics Limited (DPL).

How has DPL performed in 2020 and plans for 2021? What is the current manufacturing capacity and how do you plan to scale it up and make India self-reliant?

DPL witnessed revenue increase by 37 per cent q-o-q to Rs. 747 crore in Q3 FY21 compared to Rs. 545 crore in Q2 FY21. Initiatives such as elevating plant efficiency have resulted in utilization above 115 per cent of stated capacity. Growth in EBITDA at 36 per cent was in line with revenue growth and the EBITDA margin was stable.

The current manufacturing capacity of Phenol is 200 KTPA, Acetone 120 KTA, IPA 30 KTPA. Further, IPA capacity will double within the first two quarters of FY22.

On the lines of Aatmanirbhar Bharat, DPL aims to make India self-reliant on Phenolics and explore various value-added, downstream products from Phenolics and Acetone.

Our Phenol and Acetone and upcoming derivatives project are all - a step towards building India’s chemical security. At full capacity, we anticipate that Deepak Phenolics will save close to US $400 million in the value of imports for the country. Besides, many small and medium enterprises will also benefit due to the local availability of Phenol and Acetone.

Deepak Group has six manufacturing facilities. Does the company plan to set up any new manufacturing plants or expand into new territories?

Deepak Nitrite has recently acquired 127-acre land in Dahej, which will be developed over the next couple of years. Further, it has plans for medium to large investments each year for the next 2-3 years.

We are looking at creating value by backward integration, export substitution as well as exploring possibilities in new territories of speciality chemicals. We are aggressively investing in R&D to build in-house product development capability. This will help us to create a pipeline of products to drive future growth.

How is the company striking a balance between environment-friendly policies and sustainable growth? What are the key CSR initiatives being undertaken by the company?

The company is accredited with Responsible Care and has taken targets for achieving TfS scores of 90+ for all its sites.

New products will be launched keeping the strictest effluent treatment norms in mind, with ZLD wherever possible. We will also enhance the focus on developing a circular economy with our value from waste initiatives.

As a part of building R&D capability, we have put up a treatability study lab to develop the most environmentally friendly treatment processes. Our investment in R&D will also help us develop and implement green chemistry to drive growth in an environmentally friendly manner.

March 30, 2021

Anil Bhatia, Vice President and Managing Director for Emerson’s Automation Solutions business in India, shares his insights on digital trends in India and globally, his company’s performance in India, as well as expansion plans, and solution offerings. Excerpts of the interview: 

What are the global digitisation trends in 2021?
As we bid goodbye to 2020 and welcome 2021, digitisation has led to transformation across industries in the aftermath of the pandemic. A large number of organisations globally have taken significant measures to enhance digitisation in their working methodologies. According to a Gartner report, 89 per cent of hi-tech CIOs expect the increase in the use of digital channels to reach customers. Digital transformation will become essential for economic recovery in 2021. Digital trends like cybersecurity have become the need of the hour; work-from-home, remote and virtual spaces shall remain the new normal; Artificial Intelligence (AI) and Machine Learning (ML) will be the backbone of most digital tools, and the concept of software as a service (SaaS) is gaining momentum. Creating a digitally empowered workforce with actionable insights is the next step to achieving game-changing performances.

What are the digitisation trends that you see in India?
Advanced analytics powered by AI and ML are the critical enablers that will fuel India’s digital transformation. We’ve seen repeatedly how a practical approach – one that generates short-term wins with measurable gains – can be replicated for an enterprise-wide impact., Indian chemical companies are investing in digital technologies such as sensors or connectivity devices, as well as software and applications. This would generate a lot of data, requiring big data solutions.

By using data-driven approaches to our plant operations, which are the most energy-intensive processes, ML and AI-based analytics are the best place to start. A classic example is a heat exchanger which is a high-energy intensive asset in any chemical plant.

Today, data from multiple host systems, both structured and unstructured, is being brought to a data lake wherein it can be analyzed in a secure way to help operators make the right decisions.

The pandemic has certainly brought agility into this process because of the RoI it yields by helping the chemical industry achieve significant cost reductions, enhanced safety and improved reliability.

How would you rate Emerson’s performance in 2020 and what is your forecast in 2021?
In 2020 we were doing very well until the pandemic stuck. It affected the industry as a whole, so ripple effects were felt in more ways than one. But we were able to get back on our feet soon, with the momentum picking up by September 2020. I am being cautiously optimistic about decision-making and I hope the markets will recover soon as more and more companies start investing in new projects or upgrades. I feel we will lead the pack as we move forward towards economic recovery during 2021.

Will this cautious optimism be for the entire year or do you see it changing in the second half?
I believe our outlook will improve significantly in the second half of the year. As the COVID-19 situation gets better on the ground, so will the momentum of activities that are already moving in the right direction.

Are you seeing any new projects coming up?
We see a lot of promising new projects in the refinery sector. The market has slowed down but now EPCs are getting awarded and the projects will get executed. Even in the chemical space, we foresee many new projects gearing up for launch. I am very positive about the recovery of the chemical industry and I am sure the geopolitical situation will further support the chemical sector in India.

How is Emerson’s automation business geared to take up this challenge in India? What solutions will make it a reality?
Emerson has introduced the Digital Maturity Model Quick Index, which is a tool that lets businesses know where they are in their digital transformation journey in comparison to others in the industry. This is based on decades of Emerson domain expertise as well as the Smart Industry Readiness Index and the Biophorum Digital Maturity Model. We are encouraging the executive leadership of the chemical process industry to adopt this index to understand where their organizations stand in various areas like risk and security, health, safety and environment, people and culture, business insights, and analytics, reliability and maintenance. This will help them identify specific operational improvement areas which will then yield high RoI and improve KPIs regarding their business value propositions.

At Emerson, we take pride in being associated with the chemical sector as a most trusted partner in their journey towards automation and modernisation. With all these sensors in place, Emerson is now ready with its software solutions and IIoT platform to ensure how we make data accessible and then get the right data to the right person, in the right format, at the right time to make a decision. It’s about transferring digital data into digital intelligence by using the thousands of touch and sensing points in a chemical plant. With the help of advanced analytics and ML, business leaders can recognize patterns and make decisions based on these patterns instead of individual measurements. As I always say, start small, think big and move fast to start the digital journey. If already initiated, scale it up quickly to remain relevant in this highly competitive business environment.

Recently, Emerson has deployed smart wireless technology. Do you see its deployment in the chemical and petrochemical sector?
The chemical and petrochemical sectors are always early adopters of new technologies. Some of the largest WirelessHART installations in India and globally are in the chemical and petrochemical sectors. This is hardly surprising. The environment in these plants is much more corrosive compared to other industries such as power, food & beverage or metals. So, the failure of instrumentation signals due to the corrosion of wires is one of the perennial problems these industries face. With WirelessHART that problem gets nipped in the bud. Also, employee safety and emissions are two other important metrics monitored by the top management of the plant. WirelessHART has very effective solutions addressing both these areas. Some of the benefits derived from wireless technologies are non-intrusive measurements that do not require mechanical penetrations, elimination of manual operator rounds at hazardous locations in the field, timely and accurate detection of passing valves contributing to emissions and monitoring the health of critical plant assets. With these solutions, plants benefit in terms of increased safety, improved equipment availability and reduced emissions.

When do you see chemical factories being run remotely in India?
Large petrochemical complexes have been running remotely with nominal personnel intervention. But smaller chemical plants have the potential to run remotely in clusters with the right investments and technical support.

How will an integrated manufacturing campus help chemical and petrochemical companies in the country?
The Emerson Integrated Manufacturing Centre (EIMC), in Talegaon, near Pune, is one of Emerson’s biggest capital investments in India to date. It will help consolidate our manufacturing footprint and improve service levels for our customers in India and around the world. Developed with full support from the Maharashtra Industrial Development Corporation (MIDC) and Invest India, the total build-out in phase 1 is over 450,000 square feet of manufacturing and engineering space, with an opportunity for future expansion. We inaugurated this facility virtually on December 16th, 2020, with our isolation valve and actuation businesses moving in first. With the addition of the Pune facility, we will not only strengthen Emerson’s Automation Solutions manufacturing capabilities and network across the region but also foster a hi-tech workforce and enable operational excellence that will drive our ongoing commitment to exceptional customer service and sustainable future growth for all process industries across India. In addition to our KTM Virgo ball valves and Keystone butterfly valves, we will also be manufacturing our prestigious Vanessa triple offset valves at EIMC, while we continue to add new product and engineering capabilities to better service our customers. In addition to valve manufacturing, our capability to automate these valves with actuation technologies brands such as Biffi and Bettis, the chemical industry will greatly benefit from reduced lead times driven by products manufactured in India and strong local aftermarket support.

Is the manufacturing plant at Pune already operational?
Phase 1 has started and we have moved the actuation unit there already. Since we have to get certifications, the valve unit will move there in phases. Then in the next six months, the isolation valves will also move there. In the coming four to five years, we are also planning to expand further and for that, we have acquired land from MIDC. Overall, in the next six months, it will be fully functional.

In phase 2, the plan is to have our measurement systems business relocate to this site and if we acquire other companies, we plan to integrate them into this one location. We have three manufacturing facilities in India and we are now expanding our base.

What solutions do you offer to chemical companies for better energy management?
Extracting value from applied industrial energy requires a holistic approach all along the value chain. Energy is purchased, converted, distributed, consumed, and sometimes exported on every industrial site and the environmental, financial, and productivity impacts are significant and complex. Emerson’s industrial energy experts can tame complexity and improve business results. From the captive powerhouse to energy-intensive process units, we have monitoring, control, and predictive solutions to optimize energy performance. Our flexible, integrated and scalable Plantweb digital ecosystem provides secure and robust real-time insight from pervasive sensing technologies. A suite of analytical applications is available to provide embedded domain expertise across the enterprise. Steam trap monitoring for steam blow-through and/or blocked flow to reduce energy wastage, critical asset monitoring of energy-intensive assets like pumps, heat exchanger monitoring that provides a complete report on energy consumption and loss, and real-time predictive energy alerts, have been deployed at multiple chemical and other process industries sites across India.

Do you see India latching onto hydrogen? What is Emerson’s role with regards to hydrogen?
There is no doubt that India will have to catch the hydrogen wave to stay competitive. Green hydrogen is evolving quickly on the economic side, so Emerson is fully engaged in the US-India Hydrogen Forum and working with petrochemical companies in this regard. We look forward to positively contributing to this sector.

You mentioned deep tech technologies such as AI, NLP, blockchain, ML as well as software and cybersecurity as a service. How will these technologies help Emerson to be more sustainable and economical for clients?
Deep tech technologies like AI, ML, data science analytics, and the Industrial Internet of Things are built into our digital transformation software portfolio. Our analytics software, including Plantweb Insight and Plantweb Optics Analytics, use AI, ML, and data science analytics to provide smart persona-based real-time predictions to our customers. Many of the other technologies you mentioned were developed for other industries and applications but will soon find their way into control systems to support what’s required and continue to operate as safely, efficiently, reliably and profitably as possible. Some of the features which will deploy these technologies are facial recognition for secure operator login, voice and gesture user interface for simplified operations, drone inspection of problems in the process, augmented reality to overlay diagnostic information with artificial intelligence, location awareness for safer field operations, and predictive analytics for optimized operations.

February 09, 2021