India’s chemical and petrochemical industry is expected to maintain its strong demand growth, with key players focusing on technological advancements, sustainability, and foreign direct investment (FDI) inflows to boost competitiveness…

How has the global chemical and petrochemical industry performed in 2024? What are the key trends and challenges in 2025?

In 2024, the global chemical and petrochemical industry faced overcapacity, weak demand, and portfolio realignments, with utilization rates dropping due to capacity surges, particularly in China. Sustainability pressures intensified, with regulatory demands prompting a shift toward greener practices, though concerns remain about their economic impact. Financial restructuring became a priority, with a focus on cost cuts and strategic investments, while divestments and asset sales reflected industry adaptation. Moving forward, the sector needs to navigate shifting regulations, economic uncertainties, and the drive toward sustainability while balancing profitability and innovation. The global chemical and petrochemical industry is projected to experience varying growth rates from 2025 to 2035:

Chemical Industry: According to Deloitte’s 2025 Chemical Industry Outlook, global chemical production is anticipated to grow by 3.5% in 2025. 

Petrochemical Industry: Boston Consulting Group (BCG) projects global petrochemicals demand to grow at approximately 3% through 2035, slightly down from the 3.3% growth observed between 2014 and 2024. 

Cautious optimism means 2025 may be the year that kick-starts a longer-term recovery as the transition toward greater sustainability and decarbonization is likely to accelerate alongside technological advances.

Tighter margins will demand greater efficiencies in advanced process conditions, like higher temperatures, higher pressures, and improved chemistries. This can create more corrosive environments and the need for more corrosion-resistant materials.

For asset owners, these drivers will increase the need for advanced materials technologies to withstand the harshest applications and make their operations more efficient, profitable, and sustainable.  

How has the Indian chemical and petrochemical industry performed in 2024? What are the key trends and challenges in 2025?

In 2024, India’s chemical and petrochemical industry experienced significant growth, driven by rising domestic demand across sectors such as construction, automotive, agriculture, and pharmaceuticals. The country remains a bright spot for petrochemical demand, with continued investments and expansion efforts shaping the industry’s trajectory. However, challenges persist, including import dependency, with India still relying on imports, impacting self-reliance and competitiveness. Additionally, global overcapacity, particularly from China, poses a risk by flooding the market with low-cost imports, affecting domestic producers. To counter this, India is eyeing $87 billion in investments in the petrochemical sector over the next decade, as part of its push for self-sufficiency and industrial growth, according to Reuters. (Source: Reuters)

Meanwhile, environmental regulations are becoming more stringent, requiring significant investments in cleaner, sustainable technologies. Moving into 2025, the industry is expected to maintain its strong demand growth, with key players focusing on technological advancements, sustainability, and foreign direct investment (FDI) inflows to boost competitiveness. State owned companies like BPCL are planning major refinery and petrochemical expansions, in South India, underscoring the long-term vision for the sector. However, balancing growth with regulatory compliance, sustainability, and market fluctuations will remain critical to maintaining momentum.

How do you see technological advancements in the chemical and petrochemical industry with respect to digitalization and automation?

The chemical and petrochemical sector like other industries is undergoing a major transformation, driven by digitalization and automation. As industries push for greater efficiency, sustainability, and safety, several key technologies are shaping the future:

AI & Predictive Analytics – Enhancing process efficiency, minimizing downtime, and improving yields through data-driven insights.

Smart Automation & Robotics – IoT-enabled systems, autonomous robots, improving operational precision and worker safety.

Energy Optimization & Sustainability – Digital tools driving smarter energy use, lowering emissions, and improving resource efficiency.

What’s next for 2025?

By 2025, the industry will see a broader adoption of AI-driven automation, digital supply chains, and real-time monitoring solutions. Smart energy management systems will play a critical role in sustainability efforts in the industry. Companies that embrace these innovations will gain a competitive edge, driving cost efficiency and operational resilience.

Digital tools can optimize the use of resources, supporting recycling and circularity and helping operators align with sustainability goals.

At Alleima, we are actively exploring digital technologies to enhance resource efficiency, recycling, and circularity, in line with our sustainability goals. By leveraging AI and IoT-powered monitoring, we aim to optimize processes, reduce waste, and maximize material utilization. Predictive maintenance extends the lifespan of our equipment, cutting down raw material usage, while smart recycling and material tracking improve scrap management and support closed-loop production. Additionally, digital simulations and life cycle assessments help us transition to low-carbon, energy-efficient solutions. As we integrate advanced digital innovations, we reinforce our commitment to sustainable manufacturing, ensuring a more resource-conscious and environmentally responsible future.

Technological advancements with respect to sustainable production practices? What's the plan for 2025?

At Alleima, technological innovation and sustainability goes hand in hand. Our commitment to sustainable production practices is driven by cutting-edge advancements that optimize efficiency, minimize environmental impact, and promote circularity.

Energy-Efficient Manufacturing

We continuously invest in state-of-the-art technologies to reduce energy consumption and lower carbon emissions across our production facilities. Key initiatives include:

* Transitioning to renewable energy sources such as solar and wind hybrid power.

* Implementing electrification of processes to reduce reliance on fossil fuels.

* Enhancing energy recovery systems to optimize efficiency in production.

Circular Economy and Resource Optimization

Sustainability is embedded in our material development and production processes. We actively work to maximize the use of recycled materials in our products. At Alleima, we see engineering as a force for sustainable good. Approximately 80% of our products incorporate recycled materials, and we support our customers in meeting their decarbonization targets. We provide life cycle assessments (LCA) for our bar steel to support the increasing focus on sustainability in the global petrochemical and chemical industries. We conducted an in-depth analysis for one of the Solid bar products, Sanmac 316L, which showed an 81% reduction in carbon footprint in comparison to the global average. The Sanmac 316L uses an average of 95.6% recycled materials. The remaining 4.4% accounts for 61% of the total emissions of carbon footprint. Moreover, Alleima uses renewable sources of electricity, such as wind energy and nuclear energy, for production requirements.

* Develop closed-loop recycling systems in processes to minimize waste.

* Optimise raw material dependency through optimising alloy compositions that extend product lifecycles.

Low-Emission and Eco-Friendly Processes

To align with global sustainability goals, we focus on reducing industrial emissions by:

* Improving water efficiency in production through closed-loop cooling systems and wastewater recycling.

* Exploring green manufacturing techniques that reduce chemical usage and environmental footprint.

By combining technological advancements with responsible production practices, Alleima remains a leader in sustainable innovation – helping industries transition towards a greener, more efficient, and resource-conscious future. Going forward, we plan to continue to strive to be more sustainable in our production and collaborate with our customers to find solutions so that they also can become more sustainable.

How do initiatives like "Make in India" and environmental regulations influence investment, technology adoption, and overall growth in the Chemical and Petrochemical industry?

"Make in India" and environmental regulations are helping the Indian chemical and petrochemical industries to grow by fostering investment, encouraging technology adoption, and aligning with global sustainability trends.

"Make in India" promotes domestic manufacturing by offering production linked incentives enabling infrastructure development, and 100% foreign direct investment in the chemicals sector.

This supports increased investments in production facilities, such as the Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) and plastic parks. These dedicated hubs are designed to enhance domestic manufacturing, reduce import dependency, and attract global players by providing integrated facilities, policy support, and streamlined regulations.

How does international partnerships and collaborations balance knowledge exchange, technology transfer, and foster a global perspective within the Indian chemical industry while also promoting development of local expertise and capabilities?

Partnerships with international companies can provide Indian firms with access to advanced material technologies that can boost efficiency, profitability, and sustainability. They can support a greater understanding of international requirements, quality standards and sustainability regulations to increase global competitiveness while accelerating local development and expertise.  

Solutions provided by Alleima to the Chemical and Petrochemical industry?

Our chemical and petrochemical offerings include application tubing products for hydraulics and instrumentation, heat exchangers, process piping, high-temperature applications, and high-pressure equipment for fertilizer production. We also offer a comprehensive range of alloys in duplex, austenitic, super austenitic, nickel alloys, titanium and zirconium alloys as composite and bimetallic tubes.

Example application areas are the manufacture of fertilizers in high-pressure parts of the urea process. Hydraulic and instrumentation tubes are used to monitor temperature, pressure, and processes in various chemical and petrochemical plants, and heat exchanger tubes are used for heat transfer between different corrosive process media in condensers, evaporators, heaters, and reheaters where safety and performance reliability are critical. 

At Alleima, we are an innovative material solution provider and continuously work towards developing new materials to solve our customers' challenges. The success of Sanicro 35 in the last few years is a testimony to this. Sanicro 35 has a great value proposition due to its high performance-to-cost ratio. It has replaced nickel alloys in several applications globally.

Any new solutions that you are planning to provide in 2025 to this industry?

Building on our strong R&D legacy, we introduced SAF 3006, a high-alloy duplex (austenitic-ferritic) stainless steel designed for superior corrosion resistance in acidic and caustic environments. Engineered for heat exchangers in the chemical and petrochemical industries, it offers a cost-effective alternative to austenitic stainless steels and nickel-based alloys, ensuring enhanced durability and performance in demanding applications

This new duplex alloy, SAF 3006, will be a key focus area as we continue to push the boundaries of material innovation. With its enhanced corrosion resistance and cost-effectiveness, it is set to play a crucial role in optimizing heat exchanger performance across the chemical and petrochemical industries. As industries shift toward sustainable and efficient solutions, SAF 3006 aligns with the demand for high-performance materials that improve longevity, reliability, and operational efficiency in harsh environments.

Our materials redefine industry standards, combining cutting-edge performance with unmatched reliability. Backed by world-class R&D and integrated production capabilities, we continue to drive innovation, delivering high-performance solutions that meet the evolving demands of modern industries.