February 16, 2025

In an exclusive interview with Pravin Prashant, Executive Editor, Indian Chemical News, Charlie Shaver, Chairman and CEO, Nouryon shared his views on industry trends and challenges, flagship products, R&D, innovation centre, sustainability, net carbon zero, growth opportunities, and strategic goals. Excerpts of the interview:

What sort of industry trends and challenges Nouryon is foreseeing for the specialty chemical industry in 2025 and how is Nouryon responding to them?

India's chemical market is transforming due to rapid industrialization, a growing upper middle-class, and a focus on sustainability, creating growth opportunities in the Indian end markets including pharma, personal care, cleaning, crop nutrition, paints, coatings, and packaging.

Our strategy in India is built on three pillars: innovation with a strong focus on sustainability, targeting high-growth end markets, and enhancing commercial and cost productivity. These principles guide our operations across our growth end-markets, including agriculture, personal care, paint and coatings, and packaging, ensuring we remain at the forefront of market needs.

A major trend is the shift towards sustainability. The demand for eco-friendly products and sustainable practices is redefining the chemical industry and leading to growth opportunities. Nouryon actively participates in this transition by delivering innovative and sustainable solutions that answer customers' needs. For our 2023 performance, we received an A- score for global climate leadership from CDP and an EcoVadis Gold rating, placing us in the top 5 percent of companies then rated by EcoVadis.

Another critical trend is digital transformation. Advanced digital technologies are optimizing operations, enhancing efficiency, and driving product innovation. Nouryon actively leverages digital tools to streamline processes, elevate customer service, and fuel growth. Digital transformation remains a cornerstone of our strategy, keeping us agile and competitive.

India’s market potential is vast. Nouryon is uniquely positioned to seize these opportunities, drive growth, expand our market presence, and play an integral role in India’s development.

What are some of your flagship products and how do these address current market needs?

Our global expertise, combined with deep regional insights, allows us to develop high-performance products that meet the evolving needs of our customers. Some of our key products include: Specialty polymers - Our portfolio includes dispersants, anti-scalants, rheology modifiers and thickeners, providing flexibility to various formulations; Surfactants and chelating agents - These improve the performance, and stability in personal care, cleaning, and agricultural applications, and enable the development of eco-friendly products; and Specialty chemicals and intermediates - Products including Bermocoll cellulose ethers, Levasil colloidal silica, Expancel microspheres and Kromasil spherical silica enhance the performance, durability, and sustainability of paints and coatings, sealants, automotive parts and pharmaceuticals. Our agricultural solutions support sustainable farming and food security. By continuously advancing our offerings, we help customers achieve efficiency, performance, and environmental responsibility.

How does R&D at Nouryon influence both product development and overall business strategy?

At Nouryon, Research and Development (R&D) is the cornerstone of both our product development and business strategy. By leveraging technical expertise and customer collaboration, we create differentiated products that meet market demands. Our R&D focuses on both "technology push" and "market pull" strategies. By integrating insights from our global laboratories, suppliers, and customers, we develop robust product portfolios that offer unique value propositions. Sustainability is deeply embedded in our R&D, leading to the development of environmentally friendly solutions and answers to consumer buying behaviour.

Our new Innovation Center in Mumbai serves key end-markets including paints and coatings, agriculture, and home and personal care, coordinating with global R&D and sales teams to ensure tailored solutions. By advancing our R&D capabilities and fostering innovation, we ensure that Nouryon remains a trusted and reliable partner across industries.

Key focus areas of the New Innovation Centre and how will it align with the regional and global market demands?

Our Innovation Center in Mumbai addresses regional and global market demands, focusing on key markets such as paints and coatings, agriculture, and home & personal care. It delivers sustainable, advanced innovative solutions by collaborating with sales teams and global R&D networks, providing tailored innovations for customers in India and beyond.

In Paints and Coatings, the center supports applications including water-based paints, asphalt, and building and construction (B&C) products, with a specialized B&C lab complementing our flagship lab in Stenungsund, Sweden, extending support across the Indian Subcontinent, Southeast Asia, and Middle East and Africa.

Our Agriculture lab, with a state-of-the-art Agriculture Dry lab, advances agricultural technologies with specialized machinery for seed coatings and powder formulations, ensuring enhanced seed protection and performance. We also conduct germination studies to reinforce our innovation leadership in agriculture.

The upgraded Home and Personal Care lab develops innovative applications for surfactants, chelating agents, fabric softeners, hair styling polymers, and starches, aligning with customer needs and sustainability goals.

The Mumbai Innovation Center embodies Nouryon’s strategy of collaboration and customer-centricity, aligning with global R&D and sales teams to address regional challenges and create value in high-potential markets.

What is your overall expansion strategy? Where does India fit into Nouryon’s global growth strategy? What role does an expanded Global Service Center play in achieving this vision?

India is central to Nouryon's global strategy, serving as a key market and hub for innovation and growth. Our investments include the expanded Global Service Center and the new Innovation Center in Mumbai, leveraging India's rich talent and advanced infrastructure to deliver tailored solutions and drive global growth. This expansion leverages India’s vast talent pool to foster innovation and positions Nouryon as an employer of choice. Additionally, Nouryon has recently been awarded the Great Place To Work Certification in India for 2025, further solidifying our reputation.

The expanded Global Service Center in Mumbai, now occupying 100,000 square feet, is a vital part of our operations hosting both commercial teams and functional hubs, enabling seamless integration with global teams and bolstering customer satisfaction. Complementing this is our long-established manufacturing presence in Mahad, Maharashtra which hosts an organic peroxide production site and metal alkyls refilling station, that has been operational for over three decades. Our team in India collaborates closely with global operations to ensure agility and competitiveness in emerging markets, supporting the Indian subcontinent, Southeast Asia and the Middle East and Africa, driving innovation and fostering growth across these fast-growing regions.

India enhances our efforts to serve customers globally, improve operational excellence, and strengthen our competitive edge in dynamic markets. This investment underscores Nouryon's commitment to customer-centricity, innovation, and sustainable growth.

What steps Nouryon is taking to integrate sustainability into its operations and product portfolio globally? How are you planning to achieve net carbon zero?

At Nouryon, sustainability is integral to our strategy, operations, and products.  Our “Commitment to a Sustainable Future” includes: Continuously improving our safety and environmental performance; Growing and innovating to create sustainable solutions enabling customers to be more sustainable; and engaging and partnering with employees, customers, suppliers, and society to drive sustainable progress.

Our 2030 targets include a 40% reduction in absolute GHG emissions, a 10% decrease in total waste intensity, and a 10% decrease in freshwater consumption intensity, all from a 2019 base year. We aspire to achieve net-zero emissions by 2050 through carbon operational excellence, energy transition, innovation, and value chain collaboration. 

Our holistic approach integrates environmental, social, and economic dimensions, delivering innovative and sustainable solutions that answer customers' needs.

How is the company addressing the growing global demand for specialty chemicals in sectors such as agriculture, personal care, and paints and coatings with respect to sustainability? What is the new sustainable product portfolio that you are developing in your labs globally?

Nouryon addresses the growing demand for specialty chemicals in paints and coatings, agriculture, and home and personal care, with a focus on sustainability. Our tailored solutions help customers achieve growth and sustainability goals. Examples include: Paints and Coatings - Cool roof coatings and environmentally friendly antimicrobial agents and Low volatile organic compounds and expandable microspheres for solar reflectance in cool-roof coatings; Agriculture - Biodegradable co-formulants and green solvents for crop protection; Crop nutrition products that enable efficient water use ; and Improved crop yield solutions and water conservation solutions; and Home and Personal Care - Green chelates, naturally based and biodegradable cleaning and personal care products; Cleaning solutions for homes, hospitals, and more; and Natural ingredients for hair and skin care formulations.

Nouryon's commitment to sustainability and innovation ensures we provide cutting-edge solutions that drive growth and success in our end-markets. This includes our local initiatives to support regional sustainability efforts and meet specific market needs, reinforcing our position as a leader in sustainable specialty chemicals.

How is Nouryon leveraging digital technologies to enhance operations and product development?

Nouryon leverages digital technologies to enhance operations and product development by integrating advanced digital tools such as artificial intelligence (AI) and Internet of Things (IoT). This enhances efficiency, drives innovation, and strengthens customer engagement through data-driven insights, predictive modelling, and collaboration. Digitalization streamlines workflows, optimizes processes, and ensures agility and competitiveness, allowing us to deliver value and meet market demands effectively.

What are Nouryon's strategic goals for the next five to ten years?

Nouryon’s strategic goals for the next five to ten years focus on: Innovation and sustainability - Deliver innovative, sustainable solutions to meet customer needs, today and in the future; Targeting growth markets: Prioritize expanding and emerging markets, recruit top talent, and establish innovation centers; and Enhancing productivity: Improve cost and commercial productivity with a focus on continuous improvement.

We aim to lead the specialty chemicals industry by exceeding customer expectations, expanding our sustainable product range, and optimizing production facilities. India is a crucial part of our strategy, with investments aligned to support its growth and market needs.

How do geopolitical and economic changes impact Nouyon's operations and market strategies?

Geopolitical and economic changes impact Nouryon's operations and market strategies by causing supply chain disruptions, regulatory changes, and currency fluctuations.

To mitigate these risks, we: diversify our supplier base and invest in local sourcing; implement robust risk management and hedging strategies, monitor regulatory developments and adapt our strategies, and analyze market trends to align our product offerings and marketing.

We remain flexible and agile to seize growth opportunities and foster strong relationships with global partners. This proactive approach ensures the resilience and sustainability of our operations and market strategies.

How are you looking at growth opportunities in the India market for Nouryon with respect to greenfield and brownfield operations?

India's growing economy and demand for specialty chemicals offer us significant growth opportunities. Our new Innovation Center in Mumbai and the expanded office space exemplify our long-term commitment to growth in the region. Nouryon is also pursuing opportunities to optimize and expand existing facilities. We will continue to enhance our Global Service Center in Mumbai and evaluate the expansion of our manufacturing facility in Mahad. Nouryon's comprehensive approach to growth in India positions us well to capitalize on emerging opportunities and strengthen our leadership in the specialty chemicals industry.

February 09, 2025

February 09, 2025

February 09, 2025

February 09, 2025

February 09, 2025

February 09, 2025

We are holding almost 75% of packaging market share in the fertilizer industry in India.

February 06, 2025

In an interview with Indian Chemical News, Srinivas K Karavadi, President, INERA (Absolute Group), shares his perspective on making farming more sustainable and boosting productivity for farmers:   

How do you foresee the evolution of crop science impacting agriculture globally?

We're seeing crops become more resilient to extreme weather, diseases, and pests. This means farmers can produce more food with fewer resources, which is crucial as the global population continues to grow. New ag technologies are opening up exciting possibilities, making farming more efficient and sustainable. Ultimately, these advancements will help ensure food security and support livelihoods across different regions.

How does INERA fit into the broader agricultural research landscape in India?

INERA is playing a pivotal role in India's agricultural research scene. While agri research has been around for a long time, there's still a significant gap compared to industries like pharma. We're bridging that gap by bringing cutting-edge products to the table. Our extensive field trials across diverse agro-climatic zones—the largest of their kind in India—showcase our commitment to innovation. By collaborating with farmers, farmer groups, universities, and research institutions, we’re pushing the boundaries of what's possible in sustainable agriculture. Our focus on biological inputs sets us apart, and we're dedicated to driving innovation that directly benefits Indian farmers by improving their crop productivity and resilience.

What are some of the most innovative research projects currently underway at INERA?

We have a lot of exciting projects in the pipeline. For instance, we're developing biocontrols specifically designed to tackle pests like thrips and other emerging threats. We're also working on complementing alternatives to traditional fertilizers like Urea and DAP—products like PHYRO M P, which mobilizes essential nutrients and improves soil health. Additionally, our biostimulants are tailored to address specific crop needs, enhancing growth and resilience. All these products undergo rigorous field trials to ensure they solve specific problems effectively. Plus, we're continuously refining our MSC and UHRS technologies to make our products even more stable and efficient in the field.

What role does biotechnology play in your crop development programs?

Biotechnology is at the heart of everything we do at INERA. It allows us to enhance and improve microbial strains, making them more effective in supporting plant growth and stress resistance. We use proprietary technologies to optimize these microbes and develop precision enzymes through our BCIT platform. Biotechnology also enables us to explore and harness the potential of various microorganisms, peptides, and small molecules, ensuring our products are both innovative and highly effective.

Would you like to share recent breakthroughs in crop improvement or sustainable practices from INERA?

Recently, we introduced PHYRO M P, support farmers during the shortages of phospatic fertlisers, especially DAP that mobilizes essential nutrients and significantly improves soil health. This product not only enhances crop growth but also strengthens the soil's structure. Additionally, we're working on several other products that are set to launch in the coming months, each designed to address specific agricultural challenges. For example, our enhanced MSC encapsulation technology has extended the shelf life of our biological inputs, making them more reliable even in harsh conditions. These advancements are helping us push the boundaries of sustainable agriculture and provide farmers with the tools they need to succeed.

How does INERA collaborate with local farmers, communities, and other organizations and benefit them?

Collaboration is key for us at INERA. We work directly with local farmer groups to showcase the results of our products through farmer demos, comparing them against traditional practices and competitor products. This hands-on approach helps farmers see the benefits firsthand. We also organize training sessions and workshops to educate farmers on how to get the most out of our bio-inputs, ensuring they meet successful metrics like increased yield and improved soil health. By partnering with local communities, we understand their regional crop needs, making our products both effective and accessible. Additionally, our collaborations with research institutions keep us at the forefront of agricultural innovation, providing farmers with the latest and most effective solutions for their fields.

What are some of the biggest challenges facing crop science today, and how is INERA addressing them?

Crop science today faces several major hurdles, including climate change, soil degradation, and pest resistance. At INERA, we're tackling these challenges head-on with our innovative products and solutions. Our STREAC technology helps plants withstand extreme weather and other stressors, while our biofertilizers improve soil health and structure to combat degradation. When it comes to pests, our biocontrols offer sustainable solutions that reduce resistance and environmental impact. Additionally, we're addressing issues like the stability and shelf life of bio-inputs with our MSC technology and improving application efficiency with UHRS, ensuring our solutions are both effective and farmer-friendly. At our core, our products are designed to address climate change, pest resistance, and delivery mechanisms, making agriculture more resilient and sustainable.

How would you explain INERA integrating technology in its research and farming solutions?

Integrating technology is a big part of what makes INERA stand out. We’ve developed our own AI discovery platform, the Nature Intelligence Platform (NIP), which helps us explore and identify the best microorganisms for our products. Our biotech platforms focus on improving formulation and efficacy, ensuring our products work seamlessly in the field. Technologies like STREAC, MSC, UHRS, and BCIT are all tech-driven solutions designed to enhance crop performance and sustainability. We also leverage data analytics to optimize our formulations and predict how they’ll perform in different environments. On the delivery side, our UHRS technology ensures our products are applied efficiently and retained effectively in the field. By blending cutting-edge research with practical farming solutions, we make sure our innovations truly benefit the farmers.

What are the future goals for INERA in the next 5 to 10 years?

Over the next 5 to 10 years, we aim to reach millions of farmers globally, creating an uplifted agricultural economy. We plan to expand our product portfolio with more specialized bio-inputs tailored to different crops and regions. While strengthening our Indian market presence, Global market penetration will remain a big focus—we want farmers around the world to benefit from our solutions. Technologically, we’re committed to continuously refining our proprietary technologies and scaling up our manufacturing capabilities to meet growing demand. Sustainability will remain a key focus, as we strive to further reduce our carbon footprint and promote regenerative agricultural practices. We also aim to strengthen our collaborations with research institutions and educational bodies, ensuring we stay at the forefront of agricultural innovation. Ultimately, our goal is to drive significant advancements in crop science, support sustainable farming globally, and help secure food for future generations.

February 04, 2025

In an exclusive interview with Pravin Prashant, Executive Editor, Indian Chemical News,  Dr. Volkar Fitzner, Global Chemicals Leader, PwC shared his views on the latest global trends

Global trends in the chemical industry that you foresee in 2025?

When we look at the future trends, there are various regional dynamics that come into the play. The European market has a sluggish growth and there is a high energy cost structure. There appear to be no improvements in sight as there are imports from China and it puts the pressure on the companies. Thus, it has become a stagnant market with the closing down of plants.

The market in the USA is growing along with the economy and the feedstock is cheaper as compared to Europe. With restructuring in Europe, people will be investing in the US sometimes without the IRA incentives. One interesting fact is that the production of steel is expensive in China and in the US, the steel market is underestimated. In the Middle East, they have cheap feedstock and a kind of dual strategy, going for gas production and focusing their investments into green chemicals. It is a combination of play and integration. Meanwhile, the African market has been a non-starter.

Asia Pacific is a growth market and much better than the US. We see a lot of investments and collaborations happening in the region. Apart from China, there are countries like India, Indonesia, Thailand, Vietnam, and Taiwan that present huge opportunities. With India being a market which is very much in focus now, a lot of foreign players, especially German companies are looking at collaboration. The country will benefit as more companies are looking at it as an alternative to China. 

How do you look at overall green hydrogen play globally?

There was more hype in the last couple of years and now when it comes to reality, the prices are too high and there is less commitment from off takers. The hydrogen transport structure is very expensive at the moment. It will be difficult to run it without infrastructure and incentives and overall government support. In terms of the action points, the demand should be addressed through contracts and pre-contracts. There must be concrete steps to build the infrastructure and bring down the cost of green electrolyzer to the extent that they are of bigger scale. Going forward, the viability gap funding is required to bridge the gaps.

Green hydrogen is meant for industrial use rather than household use. Currently, six million tonnes of hydrogen is being consumed annually in India. The green hydrogen has to substitute this hydrogen that is derived from gas. When you split methane, you get hydrogen and carbon dioxide and when you split water, you have hydrogen and oxygen. This from sustainability is more viable. Ethanol and biofuels are being looked at. Burning methane as compared to splitting methane has a cost difference due to electrolyzer availability and cost. It is a fuel of the future and has a fully recyclable process as compared to all other sustainable alternatives such EV.

PwC's sustainability report in Europe says that the chemicals industry will require cumulative investment in its net-zero transformation of between US $440 bn - US $1 tn through 2040 and between US $1.5 tn and US $3.3 tn through 2050? Where do you see this investment coming from? 

The report was commissioned in collaboration with the University of Technology Sydney (UTS) to define the net zero pathway and what it will take to reach there. We calculated the carbon budget by 2050 to stay below 1.5 degrees. The research focused on the seven major base chemicals that account for 74% of the energy used in the chemicals industry and on the G20 markets which account for 97% of all energy-related chemicals industry emissions. Those seven chemicals are methanol, ammonia, benzene, toluene, and xylene as well as ethylene and propylene. Based on our calculations, we came up with the investment numbers.

What is the step by step process to achieve sustainability?

Creating an ecosystem is very important for sustainability but it is like a jigsaw puzzle. The best way is to create one and keep pushing as sustainability is a long term game and needs a lot of innovation and collaboration. The customization of products and backward integration of feedstock mostly oil and gas is also required. As we are aware, there are two forms of energy: One is direct feedstock from raw materials and second is sourcing it. For example, Shell provides basic raw material to BASF within a country, thus saving costs as compared to cross country collaborations. The best way is to either set up a manufacturing site near feedstock source or bring feedstock itself near to manufacturing set up.

What path should Indian chemical companies follow with respect to sustainability?

The route is not different from what is followed globally. They must play to their strength and build capacity through collaboration. In India, expansion and innovation is required. Unless you get that feedstock, India will remain processor or converter and in the middle of the value chain. If you are in the middle, you will encounter volatility that keeps happening in commodity chemicals and now in specialty chemicals where you have higher margins. Unless you get backwards which gives you a solid foundation and then you have to go forward towards the growth which means hyper personalization where the customer gets what he wants, same as in e-commerce.

How do you look at India coming up as the next manufacturing hub? What should we do to latch on to the opportunities?

India being the biggest market in Asia is expected to grow faster compared to Europe and the US. To get there, it needs to expand the scope for chemical R&D and do more collaboration with companies that are advanced in technologies. The collaborations don’t have to happen only between Indian companies but between Indian and international companies. In terms of developing India as a manufacturing hub, the global companies have a critical role to play because of the value it brings to the table. The manufacturing doesn’t have to be always by Indian companies but together. That’s the whole sustainability mantra.

Most of the companies across the world are looking at India but there are challenges related to land, tax, and better incentives. In our sustainability report, we emphasize the 3i model of the ecosystem in terms of innovation, integration, and incentives. Build innovation models for feedstocks, integration of supply chain, and government incentives for producing and setting up or viability gap funding.

January 28, 2025