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Chemical industry has always been a consistent value creator: Rahul Tikoo, MD – South Asia, Huntsman

November 09, 2020

Chemical industry has always been a consistent value creator: Rahul Tikoo, MD – South Asia, Huntsman

Rahul Tikoo, Managing Director – South Asia, Huntsman Corporation spoke exclusively to Pravin Prashant, Editor, Indian Chemical News on the impact of COVID-19, Capex plan, South Asian market for Polyurethane business, manpower intake in development centre, growth potential in India and South Asia, company's preparation for EV onslaught and CSR activities. Excerpts of the interview:   
 
How has lockdown impacted your industry and what has your company done when things were unlocked?
COVID-19 has impacted our industry, much like every other sector. However, we are glad that we are not reliant on a specific industry, and our exposure across value systems and consumption patterns has helped us stay ahead of the curve. While there was a significant impact on demand and the supply chain during the early days, we have noticed that conditions are gradually stabilising. This crisis has given us an opportunity to redefine ourselves. For instance, we’ve used technology at its best to virtually remain present and connected with our customers.
 
We have resolved our customer’s challenges and developed newer and better solutions which reiterates our commitment towards them. An example of that is during the phase of the lockdown, we successfully developed new products for our customers whether it was Polyurethane or Textile Effects, we introduced products for customers online. This is a testament to our core expertise, which is not only developing products and technology, but also understanding our customers’ challenges and evolving requirements.
 
The pandemic has also presented us with an opportunity to make our operations more agile, efficient and explore new avenues for our business. For instance, our Textile Effects business has been supporting and enabling the medical textile segments through our range of textile finishes designed to improve protection of textiles, for both washable as well as disposable PPE kits.
 
While we have been extremely dynamic in our approach to resurrecting our operations post lockdown, we have not shied away from our responsibility towards the community. During the pandemic, we distributed a large number of PPE kits to government and healthcare services in Pune and nearby villages. That is how we have performed - we have navigated well, and we have also not lost track of our responsibility towards society, thus ensuring that we are building a resilient environment to withstand testing times which may lie ahead.
 
Apart from supply chain, were there any other challenges you faced after lockdown and how did you rectify it as you moved forward?
Honestly, most industries have faced common challenges. The first is demand, second is foreseeing that demand. Therefore, effective planning of supply chains became extremely crucial once the lockdown was imposed. The pandemic has ensured everyone thinks of new ways to operate. There has been a great amount of reset of the work and that of the business ecosystem during the past few months. There are some consumer driven industries such as packaging, which have done relatively better than others, but largely there has been an impact. Therefore, we have been gradually adapting to build better resilience for our business. It is important to deep dive into how we respond now, and also how we respond to the post pandemic era, whenever that comes.
 
Immediate steps included keeping our people safe and ensuring effective functioning of our key business and support functions. As a company we have managed this very well. Even during the peak of lockdown, we were able to function and fulfil our commitments to the Textile PPE industry. Talking about the current situation and the future, we must plan effectively and be ready to scale up as we rebuild, recover and rethink our operations. Most importantly, we are excited about revamping our organisation and making sure we are building an entity suited for a dynamic environment, consisting of evolving opportunities. 
 
I associate this action plan post pandemic with a very nice study that I read a few months ago which speaks of an adapt and adopt system. This approach involves the ability to iterate future plans and be prepared for the emergence of the new normal, as nobody knows what the new normal will be a few months from now. What we do know is that we can stay agile towards inevitable changes in the business context in the upcoming months. Thankfully, at Huntsman we run our business with a lot of domain knowledge complemented with global best practices and I think this helps us to adapt, adopt and evolve faster.
 
You mentioned the 4R and 1S, recovery, rebuilding, resilience and rethinking along with scaling up. What’s the strategy behind making these 4R’s successful and any Capex plan in 2020?
At Huntsman, whether it’s globally or in India, our strategy revolves around our most important customers. Regarding our plans for Capex, we remain committed to long term potential and future ideas. Hence, we have continued to build scale in India with continued investments in the right talent, research and capabilities, not only for the current scheme of things but the future as well.
 
We will not hesitate to leverage new opportunities with appropriate investment whether it is near or long term. We are strongly embedded within India, and our ability to work very closely with our customers has helped us understand them better. When business starts picking up, we won’t hesitate to back it up with strong investments to serve the incoming demand.
 
How do you see the India market post COVID-19?
If you observe the outlook of the Indian chemical industry as a whole, we are at an inflection point of an incredible opportunity. This is largely because we have been a consumption driven market and the middle class households in India, which I call the big belly of the consumption ecosystem, will continue to grow with increased per capita income. We are talking about a growing middle class of about 300 million people with increasing consumption patterns. A huge amount of sustainable urbanization is taking place and as a young population, we continue to be agile for a few decades. The chemical sector is largely poised to be influenced by these macro-economic trends.
 
The chemical industry has always been a consistent value creator and has remained an attractive hub of opportunities even in an environment of global uncertainty. The macro perspective indicates that while the short term outlook is challenging, the region’s long term growth story is intact and it will be positive in the years to come.
 
In the markets we operate in, I have observed accelerated correlations between the Indian chemicals or speciality chemicals market when compared to the GDP, and in some cases the acceleration has been 1.2 to 1.5 times of the GDP as well. This is predominantly led by growing per capita consumption for some of the products which is very low currently compared to the developed markets. Our markets are witnessing infrastructural development, alternate material replacements, changing consumer preferences and all of this will unfold a very interesting opportunity, largely for the chemical industry. Whether it is our polyurethanes business or the textiles business, it is touching the lives of most consumers in India. As GDP accelerates, so will the possibilities of doing more for Huntsman in India. 
 
You have an additional portfolio of taking care of South Asia Polyurethane, how is that market doing?
If we look at the polyurethane sector over all, it is a very versatile industry. From a market perspective, it is all related and driven by application and consumer preferences. From the Huntsman Polyurethane perspective, we are the global leaders in MDI based polyurethanes. Our polyurethanes business offers end-to-end solutions for industries such as adhesives, coating, automotive, insulation, flexibles amongst others. When we look at the South Asian market, these are largely strong economies. Things are shaping up well, the disposable income factor in these markets provide a good tailwind to the consumption.
 
Additionally, the growing demand for sustainability across the industry has also led to a paradigm shift in how vehicles will be produced. Auto manufacturers are actively seeking out newer materials and technology that will help them bring down the total weight of the vehicle. Polyurethane is one such lightweight material that offers a wide range of applications and properties such as very good aggression, tensile strength and good insulation properties. I always call it the smart designer’s polymer, as you can do more with less and therefore the opportunities for such applications to really transform e-mobility will lead to a further increase in demand for polyurethanes.
 
What’s the difference between a washable and disposable PPE and how many times can one wash it? 
As the COVID-19 situation evolves, there is a growing need for medical supplies to combat the spread of the virus, such as surgical masks and protective suits. Our Textile Effects division has a complete end-to-end range of offerings including pre-treatment, coloration and functional finishing for woven and non-woven fabrics for both washable/reusable PPE as well as disposable protective wear such as face-covers and scrubs.
 
Huntsman has a technical centre in Bombay and technical development centre in Pune. What are the activities you are performing in these two centres and is there a plan to increase manpower?
We have three centres, one is our global research and development centre located in Lighthall, the India headquarters. The centre carries out all activities right from ideation to commercialization. Technical expertise is largely provided through the entire life cycle of the product. The centre has been delivering innovation and research not only for India but also the rest of the world. The other branch of the same centre is the global research centre for Polyurethane, which is also the backbone for every molecule that we are modifying or creating here in Lighthall.
 
The second is the technology centre, which for us is more about the fast route to market anything that customer needs in a quick pattern. This is what we do in Baroda, as well as our Chakan site near Pune. The centres are also an example of our approach towards customer centricity. We make sure that we address customer or industry specific challenges within the shortest possible time frame. The quick solution and turn around opportunities for customers are based out of our technology centres and the long-term strategic aspects are handled by the Lighthall R&D centre.
 
Any plans on increasing manpower?
If you look at the overall innovation metrics of Huntsman, one of the fundamental pillars for our business is innovation and differentiation. Therefore we will do everything possible to make sure that we build on this. Our research centre in Mumbai has already begun adding value to our global portfolio footprint.
 
As we go along, we have some ambitious plans of growing our footprint in India both through innovation, which is our research centre and the customer support market which is through our technology centres. We are very positive that once the current situation stabilizes, we will further be able to enhance our capabilities, both through people and equipment in these centres by the next year.
 
Any new products or molecules that are being developed in these centres?
As we speak, there are numerous offerings out in the market from Huntsman that are touching lives in many ways during the pandemic. One of our key priorities as a brand is to continue driving sustainability through innovation. It is not only about producing new products but also about producing them in a sustainable manner. We continue to support our customers through the development of these solutions that result in better resource optimization and of course better cost efficiency. So doing more with less is what we are working towards. One of our products for the handicraft industry and general purpose applications was launched this year.
 
At Huntsman, we don’t make plans for six months or one year, our plans are largely milestone driven and we have a strong commitment towards it. We have always ensured that once we set an eye on achieving a goal, we will deliver.
 
So you want to say your growth potential for India as well as south Asia remains intact for the remaining part of the year and 2021?
Yes, very much so. The way we envisage the market in terms of how it may evolve, we are quite positive that next year will present interesting opportunities as the COVID-19 situation gradually improves. Another reason is also because most of the industries we serve in some way or the other are related to the consumer market.
 
So the reason for optimism is that other verticals are doing well hence definitely your products will also do pretty well?
I want us to be as resilient and as prepared as I have always been to tap and capture any opportunity or challenge that comes our way.
 
The automobile industry has not done bad if you compare the last two months numbers. This is an indication that the economy would not be as bad as it was perceived earlier. What's your views? 
Yes, that is a very good point and I largely agree. However, we need to ascertain what the drivers are for some of the automobile traction which the industry has garnered. If you read through the numbers, you will see a lot of this traction coming via entry level cars which are also driven by the revised perception as to how mobility will occur post the COVID era. My opinion is we must observe the numbers over the next few months before we can start making any predictions on how 2021 is going to evolve from January up next year. Overall, I think there are a few positive signs.
 
How do you see Huntsman global and India preparing for EV onslaught whenever it comes?
For us it is not a challenge but an opportunity. If you are talking specifically about E-vehicles that is where the play gets very interesting for Huntsman because I believe that Polyurethanes can play a critical role in addressing many such global megatrends. As the most effective thermal insulant in the market, MDI based polyurethanes are used widely to deliver energy savings in various domains. Specifically, if we move to automotives, I believe that with a lot of demand for sustainability across the industry, there has been a huge shift in the way vehicles will be driven, and more importantly, the way vehicles will be produced. So auto manufacturers today are actively seeking out various alternate materials. Polyurethanes are therefore the perfect alternative to create better fuel efficiency. Even in the EV domain, a very interesting opportunity lies ahead for Huntsman. We could offer a wide range of materials like thermal insulation products or even for seating and aggression resisting technologies.
 
I was part of one of the industry forums a couple of weeks ago and it was interesting to see how the world has changed and how dynamic technology has transformed into. It has become clear that companies which are heavy on innovation, technology and understanding the markets will be able to deliver leading performance in this changing environment and that is the case with Huntsman. We understand this market very well, we have been in it for a long time now and as EVs take centre stage, we are poised to be in a good position to work with the industry and resolve the challenges they are facing today.
 
Is MDI a patented technology or is it a general technology you have adopted?
There are products in the MDI domain that are patented by our organisation but MDI as a product is a chemistry and it is not patented by us. 
 
Do you have plans on hiring new talents and diversifying your base of doing fundamental research in India? 
I believe that as we develop and grow solutions we need more innovation creators, be it in Mumbai or our technology and innovation centres of Baroda or Pune. I am personally excited and bullish about the R&D capabilities we have been able to build over the years. Another important aspect is the availability of talent in India which is integral to achieving our goals. This means that there is scope to further develop it which will help us advance value creation for the chemical industry at large. We also need to find means to bridge the gap between industry and academia to facilitate more innovation. I think fundamentally this will be the greatest asset that India may build if we have to transform India into the next chemical hub of the world.
 
Huntsman should engage with young chemical engineers and try to focus on a start-up module which will be a win-win for both Huntsman and startups. What's your thought on this arrangement?  
Over the past few months, I have also been trying to work closely with our R&D teams. We have been quite active in this space be it academic institutes or engaging with students to come and do some work in our research or technology centres. Through your publication, I am also inviting people to talk to us and tell us how we can do more together whether it is through innovation or through start-ups which have a concept and want to incubate it and grow it faster, we are more than happy to collaborate with these individuals, associations, companies and institutions.
 
What are the CSR activities you have done in Baroda as well as Pune factories?
I strongly believe that we need to demonstrate our commitment towards society by investing in education, health and economic development of the people. For instance, we have created a massive education focused empowerment through our Anandi initiative which was inaugurated near our manufacturing sites in India in 2011. It has been nine years, and what we do there is improve water supply, upgrade school facilities and also improve teaching methods. Anandi has changed the lives of many local villagers and improved the livelihoods of farmers as well. It is incredibly exciting to see this change. At Chakan site in Pune we are starting a mobile medical unit there. This unit can travel to far off villages and make sure that we provide primary medical care to those who do not have access to a basic doctor and primary treatment. If we are able to manage initiatives at this level, we will be able to make a significant contribution to the society that we are living in. Also, child education and setting up a system for it is another initiative we have undertaken around Baroda and Chakan. For Huntsman, the business is not just about numbers but giving back to the community in as many ways as we can.

ICN Interview: Sanjeev Mullick, VP – Sales, Asia Pacific and Japan, Aspen Technology

November 07, 2020

ICN Interview: Sanjeev Mullick, VP – Sales, Asia Pacific and Japan, Aspen Technology

In a fireside chat with ICN, Sanjeev Mullick talks about Aspen Technology' key initiatives focused on the chemical sector and petrochemical sector, emerging trends in digital transformation and India strategy for the future

We are working on an innovative defoamer for the paper industry : Dewang Garg, MD, Trio Chemicals & Allied Products

September 20, 2020

We are working on an innovative defoamer for the paper industry : Dewang Garg, MD, Trio Chemicals & Allied Products

Dewang Garg, Managing Director, Trio Chemicals & Allied Products has more than 25 years of experience in handling production, operations and product development. Being associated with the family business, he has led Trio Chemicals to achieve accelerated growth in Defoamers and Specialty Chemicals manufacturing. He holds a degree in Commerce from Mumbai University and is an active member of BNI – Business Network India.

Speaking to Pravin Prashant, Editor, Indian Chemical News, Dewang Garg spoke about the size of the market, India's growth story and forecast, new innovations, capex investment and USP. Excerpts of the interview:

In terms of revenue and profit, how has Trio Chemicals performed in FY 2019-20? What 's the forecast for FY2020-21?
We did very well in the initial three quarters of FY 2019-20 but due to Corona spreading all over India, the fourth quarter was not as expected. In terms of revenue generation, we did approximately 25% growth over last year and maintained profitability at par with FY 2018-19.

Talking about FY 2020-21, we are hopeful to touch a growth of approximately 40-45% as Trio has ventured into organic food exports especially to USA and European countries. There is a good growth potential in the organic food sector and Nutra Trio will be touching a revenue of around Rs. 10 crore in FY 2020-21 i.e. in the first year of its inception.

What is the break-up of revenue with respect to domestic and exports in FY 2019-20? How have you performed in the export market and countries where you have done reasonably well?
The ratio of domestic and export is 60:40. Our main export was generated in the food sector where we did almost 40% of our turnover. The main countries are America and European countries. Middle East being a good market for chemical and food items, our focus in FY 2020-21 will be to provide defoamers and food items in these markets.

What is the market size of Antifoams/Defoamers and Performance Additives globally and India in FY 2019-20? What's the growth rate of these products in FY 2019-20? What's the forecast with respect to market size in FY2020-21 and why?
The global market was valued at US $5.81 billion in FY 2019-20 and is expected to be US $6.08 billion in 2020-21 by maintaining the predicted CAGR of 4.3% globally due to the increasing demand of simethicone in the pharma sector.

Are you developing any new product/products in the Antifoams/Defoamers and Performance Additives category? Where do you see the usage of this product?
Yes, innovation is an ongoing process and we believe innovation is the key to growth. We are now working on an innovative defoamer for the paper industry. Total industry size for paper defoamer is 800 MT per annum and we are expecting to get at least 15% market share.

The company has recently launched sanitizer and disinfectant products in the Indian market. What's the response for this new category of product in India?
Launching the sanitizer and disinfectant products was like picking the low hanging fruits during this pandemic. Now we see everyone, say paint manufacturer and chemical dealer selling sanitizer and disinfectant products. So it's going to be a commodity market. Our core business is defoamer and we will continue to focus on the growth of our defoamer business and also for the growth of Nutra Trio.

Do you have any plans of expanding or setting up a new plant apart from the one which you have in Sarigam, Gujarat? What's the maximum manufacturing output of Sarigam plants for Antifoams/Defoamers and Performance Additives?
Yes, we can produce approximately 6,000 tons of defoamers per annum and we can produce even higher quantities in the existing facility. We have already acquired a bigger warehouse in Vapi that will ease the process of transportation and we will be able to handle our logistics in a more efficient way. We have also shifted our corporate office to a new and bigger place. The work of setting up a new and bigger lab is ongoing which will allow us to have more focus on the innovation and application development of the products.

Are you Aatmanirbhar with respect to Antifoams/Defoamers and Performance Additives category of products manufactured in India. If not, do you have any plans of setting up a plant for making the above raw materials?
A big yes to Aatmanirbhar. We manufacture and we can custom make any type of defoamer, so we can proudly say that we are Aatmanirbhar with respect to Antifoams/Defoamers in India.

What's the USP of Trio Chemicals product in Antifoams/Defoamers and Performance Additives?
Trio is strategically situated in the central place and hence is closer to all the customers. The USP of our products is: Use of high quality; raw material cost; excellent performance; various pack sizes; and easy availability.

Growing Chemical Industry Ecosystem, The Aatma Nirbhar Way

September 12, 2020

Growing Chemical Industry Ecosystem, The Aatma Nirbhar Way

Recorded version of ICN e-conference held on 11th September 2020.

OSI2020 to make production processes more cost- and energy-efficient, says Sucheta Govil, CCO, Covestro AG

August 18, 2020

OSI2020 to make production processes more cost- and energy-efficient, says Sucheta Govil, CCO, Covestro AG

Sucheta Govil, Chief Commercial Officer and Member of Board, Covestro AG spoke exclusively to Pravin Prashant, Editor, Indian Chemical News on the impact of COVID-19, restructuring of Capex plan, use of Quantum Computing and plans to save EUR 430 million. Excerpts of the interview.     
 
Covestro has strengthened its presence in China by investing more than Euro 3 billion in recent years. Are you planning to increase investment in other countries in the 2020-21 timeframe? If yes, for which product and by when?
Covestro invested a total of EUR 910 million in 2019 (up by approximately 200 million from the previous year level EUR 707 million), the highest figure in its history. We manage our investment projects across our product portfolio with a focus on efficiency and the best possible return on and use of capital. We don't comment on regional investment plans.
 
What would be the impact of COVID-19 in your 2020 revenue and profitability? Due to drop in revenue have you restructured your capex plan and by how much?
The COVID-19 pandemic has had unprecedented impacts globally on many industries especially automotive, construction, travel, leisure etc. For Covestro too, results of the first half of 2020 were significantly impacted by the effects of the coronavirus pandemic. Covestro adapted very quickly to the new conditions at an early stage, focusing on active, consistent crisis management and further strengthening its liquidity position. As a result of the focus on liquidity management, current investments are being curtailed by around EUR 200 million bringing total investments to some EUR 700 million (previously EUR 900 million). Investment projects of Covestro are managed consistently with a focus on efficiency and the best possible use of capital.
 
How is your company planning to cope up with COVID-19 so that your company has minimal effect in future?
Business development in the first half of 2020 was significantly influenced by the development of the coronavirus pandemic. Covestro took decisive action at an early stage to adapt the company to current conditions, protect the health of all employees, ensure the ability to supply customers and safeguard its strong liquidity position.
 
In response to the economic challenges posed by the coronavirus pandemic, Covestro raised its target for short-term cost savings in the 2020 financial year to over EUR 300 million. This was in addition to the ongoing efficiency program. Current investments were reduced by around EUR 200 million. In addition, the Management Board, Supervisory Board and employees of Covestro are jointly making a solidarity contribution in the course of country-specific cost-saving measures. Additionally, the company took a number of measures in the first half of 2020 to further secure its robust liquidity position. These include the signing of a new syndicated revolving credit facility with ESG element, the issuance of two Eurobonds, continuous financing of ongoing business operations through working capital facilities and the signing of a loan facility with European Investment Bank for R&D activities.
 
The Management Board of Covestro continues to actively monitor the worldwide development of the coronavirus pandemic. Any necessary adjustments or expansions of existing measures are made in accordance with the recommendations and instructions of the respective governments and advisory councils.
 
Presently, what is the level of digitization in Europe, Asia (India) and US plants and by what percentage are you increasing its digitization and focus areas of investment in terms of digitization?
One of the main objectives of our digitization efforts is to intensify customer centricity, optimize marketing strategies and identify attractive market opportunities even sooner.
 
Also in production, Covestro is already actively exploiting the benefits of digital transformation and consistently driving digital innovation. Different pilot projects provide new findings for the predictive, intelligent maintenance of systems, one of these has been running at the production site in Caojing, China. The global project for digitizing and integrating the system landscape in production, "Optimized System Integration" (OSI2020) for short, will make production processes even more cost- and energy-efficient in the future. Further digitalization of the production facilities will make planning, operation and maintenance much easier.
 
In order to achieve long-term innovation leadership also in digital chemistry, Covestro builds up resources and expands partnerships. With so-called quantum computing, the materials manufacturer is going one step further to investigate new possibilities in the field of chemical simulations. Therefore, Covestro and Google have signed a research partnership agreement recently.
 
What's the R&D budget for 2020? New innovations in terms of alternative raw materials, innovative recycling, joint solutions and renewable synergies that you are conducting in PUR, PCS and CAS business units. How do you see these innovations increasing the overall market size for Covestro globally?
In fiscal 2019, our R&D expenditure amounted to €266 million (previous year €276 million). We don't comment on planned investments.
 
How are you planning to use Quantum Computing for new innovations within the company?
The novel quantum computing is another important milestone in the search for new, digitized research processes. This forward-looking computer technology is the key to knowledge that is needed, for example, to successfully advance the circular economy. With the help of quantum computing, details of highly complex chemical reaction processes can be digitally simulated and evaluated in a very short time. With quantum computing, Covestro intends to build on the success of previous investments and further deepen its global competencies in computational chemistry.
 
What are the cross industry collaborations that Covestro is working on and how will it benefit industry and Covestro? What are the programs running in 2020?
Covestro is dedicated to the orientation towards the circular economy. Shifting to a global Circular Economy is a large-scale project that can only be achieved through collaboration. Society, businesses, and governments will have to cooperate across borders and continents. We are convinced that the environmental service sector offers new business opportunities, value creation paths and cooperation that go beyond all B2B models.
 
Covestro already cooperates with a number of partners in this area. Current projects include the EU Circular Plastics Alliance, launched in 2019, which brings together plastics manufacturers and processors, major retailers, and waste management and recycling companies with the aim of reusing ten million tons of recycled plastics annually across Europe by 2025. Another example of cross industry collaboration is the Alliance to End Plastic Waste, a global network of companies that has also been active since 2019. Together with other companies, Covestro is working to stop the disposal of plastic waste in rivers and seas. Pollution caused by the improper treatment of plastic waste is a challenge of global proportions to which countries throughout Africa and Asia in particular urgently need answers.
 
By 2020, the company is planning to save Euro 430 million. What are the steps you are planning to take to execute this program?
Targets for short-term measures were raised in the course of the corona crisis. To realize savings of overall €450 million in 2020, the existing efficiency programme perspective was accelerated. This includes streamlined standard business, maximized portfolio synergies, increased efficiency, reorganized central units as well as fostered differentiation. In addition, Covestro took short-term measures for additional savings in areas such as SG&A costs, building maintenance, procurement and solidarity measures.
 
Industry trends for Covestro range of products in 2020?
For our customers, we develop numerous product innovations that deliver answers to global challenges such as urbanization, mobility of the future or climate change. As an innovation leader, Covestro and its materials are absolutely in tune with the time. Sustainability is the driving force: We therefore listen to our customers and develop products for a circular economy, especially in unprecedented times of crisis. For example we have successfully developed the world's first 64.2-meter wind turbine blade made completely of polyurethane. The blade, made jointly with leading Chinese wind turbine manufacturer Goldwind, and leading wind blade manufacturer LZ Blades, represents a breakthrough in the application of polyurethane resin in large-scale wind turbine blades and marks the beginning of a new generation of longer and stronger blades for the wind power industry.

Global nano zinc oxide market to reach $7.7bn by 2022 : Richard Lobo, Head – Corporate Strategy & Business Excellence, Tata Chemicals

July 25, 2020

Global nano zinc oxide market to reach $7.7bn by 2022 : Richard Lobo, Head – Corporate Strategy & Business Excellence, Tata Chemicals

Tata Chemicals has recently entered into production of Nano Zinc Oxide (nZnO), an essential component in daily lives of consumers. Nano Zinc Oxide, known to exhibit a strong antimicrobial activity against harmful bacteria and fungi, has successfully deployed nZnO formulation, in alliance with a customer, in face masks used by healthcare workers and consumers. The product is being utilised as a preventive measure for impeding the transmission of infection during the COVID-19 pandemic.
 
Pravin Prashant, Editor, Indian Chemical News in an exclusive interview with Dr. Richard Lobo, Head – Corporate Strategy & Business Excellence, Tata Chemicals talks about market size of Nano Zinc Oxide, probable use cases of nZnO, investment made by Tata Chemicals and market that the company is planning to capture. Excerpts of the interview:  
 
Properties of Nano Zinc Oxide and its probable use cases
Tata Chemicals, over its 80+ years of history, has been at the forefront of serving society through science. Nano Zinc Oxide is born out of this mission. The product was developed at our innovation centre as a part of the focus on developing nano-materials that deliver distinctive value and performance. Our nZnO product offers anti-fungal, anti-microbial, anti-viral and UV blocking properties and hence finds application across sectors from industrial to cosmetic products including paints/coatings, adhesives, plastics and personal care products.
 
The purpose of engineering this product stems from the need a decade ago to replace organic UV blockers in paint, cosmetics and various applications because of their harmful side effects and poor durability. Our scientists realised the potential of working on Zinc Oxide which is used in these applications and developing a nano-material version of the Zinc oxide which would retain the primary properties but could also provide additional value such as water dispersion and anti-microbial/anti-fungal properties to the applications.
 
Paints & Polymers: Functionalized nano zinc oxide a multifunctional ingredient used in paints and polymers, stands apart from the bulk variant because of its fine powder form that has higher surface area and higher absorption cross-section of UV rays at lower dosages which ensures the preservation of colour and gloss.
 
Cosmetics & Personal Care: Tata Chemicals’ Zing C and ZnSpers variants, free from heavy metal impurities, when used in cosmetics and personal care products act as SPF booster that blocks harmful UVA, UVB sun rays and also act as antimicrobial agents. Made at room temperature reaction, nano zinc oxide can be made compatible with both hydrophilic and hydrophobic media applications and is available in both micro-fine powder and dispersible solution to suit varied needs of our customers.
 
Textile/Apparel Industry: Tata Chemicals’ patented process of nZnO has resulted in a new variant called Zingtex that can be used in textile applications. The smaller particle size, higher surface area, antimicrobial properties and high hydrophobicity activity of Zingtex delivers a one-of a kind stain-repellent fabric.
 
Market size for Nano Zinc Oxide within India and outside India
As per reports, the global nano zinc oxide market was valued at $2.1 billion in 2015 and is expected to reach $7.7 billion by 2022. The Indian market is still at an evolving stage of adopting nano-materials across sectors and applications, though we witness healthy adoption in paints & coatings, cosmetics and personal care. Rapid industrialization along with increase in investments in these industries has fuelled the growth of the market.
 
Cosmetics segment appears to be the most attractive market for the industry players owing to increased purchasing power in the emerging economies and growth in awareness among the consumers regarding adverse effects of UV rays. Factors such as age, location or socioeconomic background plays a vital role in the cosmetic industry. Functionality of nano zinc oxide in cosmetic and personal care is highest due to their exceptional physio-chemical properties. Rising inclination of manufacturers to use soluble and biodegradable nano emulsions in cosmetics will positively influence the nano zinc oxide market growth.
 
Nanoparticles are now popularly used in every personal care product available in market, including shampoo, deodorant, sunscreens, soaps, toothpaste, hair conditioner, perfume, foundation, lipstick and after-shave lotion owing to increasing demand for sun protection cosmetics. Minimal regulatory constraints and limited health impacts is increasing its implementation in skincare and medical products. Huge expenditure in research & innovation and highly formulated industrial chemicals produced in developed nations will escalate the product demand.
 
Nano Zinc Oxide to be used for fighting against COVID-19 pandemic
As everyone fights this global pandemic and health crisis, taking steps to prevent the transmission of coronavirus is critical. The use of protective gear such as face masks and PPE kits as a precautionary measure is not just restricted to the medical fraternity but is mandatory for every individual since the spread of virus can be reduced if everyone, including people who have been infected but are asymptomatic and contagious use masks.
 
Nano Zinc Oxide (nZnO) is well known to exhibit a strong antimicrobial property against various microorganisms such as bacteria and fungi due to its small size and large surface area.
 
As the pandemic hit the country, we began to examine whether our grades can serve as protective layers given the antimicrobial, anti-fungal and anti-viral properties. We have deployed our nZnO formulation, in alliance with a customer, which is being used in face masks and trials are on for use in PPEs.
 
Market that Tata Chemicals is planning to capture
Currently, our focus is on strengthening our customer base across sectors such as cosmetics, paints, plastic & polymers and textiles.
 
Investment made by Tata Chemicals for manufacturing Nano Zinc Oxide
Given this is a specialty performance material; we focus on manufacturing with high precision to meet customer specifications. The annual capacity ranges to a few tons depending on the sector being served. Tata Chemicals believes in serving the society by science led innovative products, and we will continue to strive for delivering superior quality products that will help improve the final product delivered.

Innovations in specialty chemicals a key to future growth: Krishnamohan Narayan, Managing Director, BASF India

March 12, 2020

Innovations in specialty chemicals a key to future growth: Krishnamohan Narayan, Managing Director, BASF India

The next wave of growth in specialty chemicals sector will be driven via innovation. Some key areas which will help drive such innovations are e-mobility, sustainability, digitalization and plastic waste. In order to address new age challenges, we need to look at investing in R&D and come up with cutting edge solutions to remain competitive said Mr. Krishnamohan Narayan, Managing Director, BASF India Ltd during ICC 2020 annual conference.

Refineries to transform from Oil to Chemicals in future: Dr. Partha P. Mitra, President - Strategy & Initiatives, RIL

March 06, 2020

Refineries to transform from Oil to Chemicals in future: Dr. Partha P. Mitra, President - Strategy & Initiatives, RIL

The outlook for chemical sector seems to be pretty dynamic and disruptive. Industry will see some major disruptions and companies with focus on innovation will grow faster. Demand for transport fuel will decline due to increased adoption of EV. The industry will also see evolution of oil & gas majors to chemical majors in future. About 70% of the crude processed will be chemicals with a much larger share in the material of the future said Dr. Partha P. Mitra, President - Strategy & Initiatives, Reliance Industries Limited during ICC 2020 annual conference.

Sustainability beyond compliance a key for chemical sector: Neelanjan Banerjee, VP & MD, Lanxess India

March 03, 2020

Sustainability beyond compliance a key for chemical sector: Neelanjan Banerjee, VP & MD, Lanxess India

Indian chemical sector needs to play a key role in adopting best practices for promoting sustainability. Globally the industry is focusing on reducing carbon footprint and going climate neutral seems to be the best way forward. As a responsible company, Lanxess has committed more than 100 million euros for cutting carbon emission and becoming a climate neutral organization by 2040 said Mr. Nilanjan Banerjee, Vice President & MD, Lanxess India Pvt Ltd during ICC annual conference 2020.

Chemicals are a significant part of India's trade flow: Avinash Goyal, Senior Partner, McKinsey & Company

March 02, 2020

Chemicals are a significant part of India's trade flow: Avinash Goyal, Senior Partner, McKinsey & Company

Indian chemical industry has outperformed both in the global as well Indian market. The global oil & gas majors are moving towards downstream opportunities & its very clear that their is going to be a focus on petrochemicals in India. The wave of consolidation and mergers in the chemical sector will continue and companies which are scaling will have larger opportunities of competing in the global markets said Mr. Avinash Goyal, Senior Partner, McKinsey & Company during ICC annual conference 2020.

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