Will continue to contribute, innovate and co-create a green and sustainable ecosystem: Samir Somaiya, Chairman and Managing Director, Godavari Biorefineries

We are in the bio-based specialty chemicals and continuously co-creating with customers and de-bottlenecking plants to meet the needs of customers

Godavari Biorefineries, one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India, has a diversified product portfolio. The portfolio comprises of bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol and power. The company is the largest manufacturer of MPO worldwide and the fourth largest manufacturer of ethyl acetate in India, and the only company in India to produce bio ethyl acetate. Samir Somaiya, Chairman and Managing Director, Godavari Biorefineries, talks about the emerging market scenario as well as his company’s expansion plan…

Q. Biorefineries have gained significant attention in the quest for sustainable and renewable energy sources. How does Godavari Biorefineries contribute to the development and production of sustainable bio-based products?      

A. The world continues to rely on fossil resources to meet its needs.  If you take the example of energy, about 85 per cent of the world’s energy needs are met from coal, oil and gas.  Countries such as Norway consume over 100,000 kwhr per person, China consumes 30,000 kwhr per capita and India is still at 8,000 khwhr per capita.  As India develops, its energy consumption will increase.  It is important that this growth comes along with renewable resources so that we can grow and mitigate climate change at the same time, ensuring the sustainability of the planet.  

Godavari Biorefineries is a company that is demonstrating this transition to the use of renewable resources.  Godavari converts agricultural feedstock physically, chemically and biologically into food, fuel, chemicals and materials. Innovation is the cornerstone of our development.  We have over 50 scientists constantly working with feedstocks, conversions and end-use applications.  We partner with our customers to co-create solutions to aim and create renewable substitutes that have enhanced properties than the fossil intermediate that they substitute.   

Finally, we are also working in the area of soil.  Soil is the source of our feedstock.  Fossil economies extract carbon, deplete the resource and then move to the next carbon source to extract the resource.  Renewable economies extract carbon from the soil, deplete the same, but if farming is done right, then regenerate the soil.  Renewable economies are circular, but this circularity must be worked on as we regenerate the resource.  To improve agriculture, Godavari along with the research institute K. J. Somaiya Institute of Applied Agricultural Research (KIAAR) are working with our farmers to actively ensure soil is healthy for the immediate and the longer run.  

Q. How is the favorable government policy accelerating the growth of bioenergy, ethanol and bio-based specialty chemical segments in the country? 

A. India is rich in soil, sun and has millions of farmers.  With these resources, we have to play to our strengths and have to transition from the oil economy to the soil economy.  With this in mind, the Government of India is focusing on the green energy transition. Biofuels enhance energy security, mitigate climate change and help farmer income security 

The Government set a target to achieve 20 per cent blending by 2030 and that was advanced to 2025, which we have achieved.  The NITI Aayog is now examining to expand this beyond 20 per cent.  When policies are well articulated, the ethanol industry, the farmers, the automakers, the equipment manufacturers, all come together to make this transition a reality.    

Q. How is Godavari Biorefineries as a strong player in the sector contributing to the government of India's ambition? 

A. Our business is into sugar, biofuels, co-generated electricity and bio-based chemicals. As the government is going for 20 per cent blending, Godavari is actively making ethanol from sugarcane juice and B Heavy-molasses. We expanded our capacity from what was 200,000 liters per day in phases to 600,000 litres per day. Now, we are adding a 200,000 liters per day facility of grain/maize based ethanol, which will use maize and other grains to add to feedstock to supplement and increase capacity. It would be implemented in the second half of FY26. 

Q. The biorefinery industry is constantly evolving and requires continuous innovation. What role does R&D play in the overall growth of the company? 

A. There are three aspects of the research we do. First is the research on the soil. The carbon and soil regenerative practices that will make sure that we have the carbon which is required to be transformed. The fossil economy is extractive, and biorefining can also be regenerative. We can always extract from the soil but if we do it wrong, it can get poor in carbon. But if we do it right, the soil has the ability to regenerate.  

The second area of research is the conversion of this biomass into food, fuel and biochemicals. We have a lot of scientists working on physical, chemical and biological transformation.  

And the last aspect is where we work with customers to co-create with them. They also have their transitional journeys and are looking at products that we make including drop-ins or could be an applicational substitute with enhanced properties.  

Similarly, when I talk about regenerative farming, we have to co-create value with farmers. It is an emphasis on renewables, emphasis on co-creating work with either the farmers or customers, and the emphasis on innovative science whether physical, chemical or biological.  

Q. Godavari Biorefineries has a strong focus on sugarcane based products. How does the company ensure sustainable sourcing practices and support for the local agriculture community? 

A. We are working with our farmers on regenerative agriculture which is good for both short term and long term. We have a separate independent, agriculture research institute, KIAAR, where a lot of research is done in combination of drip farming, intercropping with sugarcane, looking at regenerative practices and remote sensing. This involves the whole range of traditional with modern science, looking at sustainability in the short and the long run and to help farmers improve crop yield and income.  

Q. Can you highlight any recent advancements or technological innovations that Godavari primarily implemented to enhance its biorefinery operation?  

A. We are advancing three aspects. One is we are going into a maize/grain based ethanol facility to supplement the feedstock from sugarcane and to mitigate climate risk. The second aspect is that we are in the bio-based specialty chemicals and continuously co-creating value added products with customers. Whether that is the need for a product which has properties in the substituting fossil or substitutes purely as a drop-in, we are working on new chemicals continuously. We will come with new products or enhance capacities as we go forward.  

Q. Sustainability has become a key priority for businesses worldwide. How does Godavari Biorefineries integrate sustainable practices into its overall operations, including resource consumption and emission reduction? 

A. We are fundamentally sustainable as much of our feedstock is biogenic carbon. Our energy also primarily comes from biogenic carbon - bagasse is our main energy source. We do use some amount of coal, but overall our energy matrix, the carbon we consume for energy or for chemical operations, the majority of that is biogenic carbon. 

 Q. In addition to bioethanol, what other bio-based products does Godavari produce? 

A. We make a host of bio-based chemicals that find applications in a variety of fields including skin-care, cosmetics, agrochemicals, paints, coats, and pharmaceutical intermediates. Our scientists are continuously working, and co-creating with customers to expand the bouquet of products available to them. 

Q. What are the key strategic priorities and growth plans for the Godavari Biorefineries in the segments that you operate? 

A. Climate change has to be addressed and also in terms of transition to green energy, Godavari will continue to contribute and play its role. In this direction, there could be three sets of customers. The first set of customers are an end use customer who may want to buy a product that comes from natural or renewable feedstock. Another set of customers may be looking at a green substitute for an existing fossil product that has enhanced properties. The third would just be looking at reducing the chemical footprint.  

Our customers are in either one category or in two or all three of the above.  We are seeing the growing interest among our chemicals in this transition.  In summary, there is a wider interest in the green transition in chemicals.  In India, there is an articulated policy in the transition to renewable energy.  We are actively participating in both these transitions.   

We are living in exciting times. We have to realize that each one of us, individually and as institutions, have to look at sustainability in our processes and co-creating with customers and also co-creating value with the supply chain. We have to create value and look at research as a bedrock of that value. That's how I look at it and Godavari follows this process very sincerely.