The chemical industry underpins vital sectors worldwide, yet recent global disruptions have exposed its supply chain vulnerabilities. In India, the industry is reimagining its supply chain strategy by diversifying supply bases, strengthening local capacities, embracing digital technologies like AI, and investing in sustainable port infrastructure. Together, these measures are laying the foundation for a future-ready, resilient, and competitive ecosystem.

Industry experts recently discussed the latest scenario at the ChemConnect 2025 themed ‘Disruption, Innovation, & Resilence’ organized by the Indian Chemical News on August 21, 2025 in Mumbai. 

The inaugural session of fourth edition of the event titled, ‘Building Resilient Chemical Supply Chain amid Global Disruptions’ was moderated by Pravin Prashant, Executive Editor, Indian Chemical News who briefly outlined the current market dynamics.

“India has a coastline of over 7,500 km and nearly 14,500 km of navigable waterways. As per the Ministry of Ports, Shipping, and Waterways, Indian ports handled 1,594.33 million tonnes of cargo in FY 2024–25, while National Waterways managed only 16.4 million tonnes, barely one percent of the total. India has also improved its position in the World Bank Logistics Performance Index, moving up 16 places since 2014, when it ranked 54th among 139 nations. Operational efficiency has advanced with container dwell time reduced to 2.6 days and turnaround time at major ports cut from 94 hours to about 48 hours. These improvements are driven by the Sagarmala Programme, which has mobilized investments worth Rs 5.7 lakh crore.”

“Looking ahead, the ministry is focusing on two major areas: digital transformation and green hydrogen. Through a partnership with C-DAC, a Digital Centre of Excellence has been established to accelerate digital adoption, while the Sagar Setu platform is streamlining export-import operations through faster, paperless documentation. On the green energy front, three ports have been identified as hydrogen hubs. At VO Chidambaranar Port, a pilot plant is producing green hydrogen using solar power, while Deendayal Port in collaboration with L&T has commissioned a one-megawatt plant capable of producing about 140 metric tonnes annually. Paradip Port is also developing infrastructure to handle green hydrogen and ammonia, with plans to emerge as a major hydrogen hub,” added Prashant.

P. V. Srikanth, Regional Procurement Head - South Asia, Archroma emphasized that India must invest in diversification and future-ready capabilities to strengthen its chemical supply chains.

“The global chemical supply chain today operates in an environment marked by volatility, uncertainty, complexity, and ambiguity. These forces continue to reshape supply chains, making them more vulnerable to disruptions. Since the pandemic, we have witnessed repeated shocks, trade restrictions, supply shortages, and geopolitical challenges that have deeply affected the chemical industry. More than 60% of chemical supply chains depend on imports, which makes them particularly sensitive to such disruptions. Countries, including India, must now focus on building resilience. Diversification of sourcing is essential, rather than relying heavily on China and a few East Asian nations. Exploring alternative regions, developing local suppliers, and investing in their capabilities will be critical. Hand Holding domestic players, making them sustainable and compliant with global standards such as ESG frameworks, and improving their readiness for international trade can create reliable future supply sources.”

“Digitalization and AI adoption will play a transformative role. With supply chains flooded by vast amounts of data, distinguishing real signals from background noise is crucial. AI can help filter meaningful insights, enabling businesses to make faster, data-driven decisions in real time. Those who successfully adopt AI tools for demand forecasting, risk quantification, and scenario planning will have a competitive edge in the coming years. Collaboration across the ecosystem is equally important. Working with ports, shipping authorities, and logistics partners to enable priority handling of chemical cargo can significantly reduce delays. Developing chemical-specific safety infrastructure at ports and warehouses is vital for managing hazardous materials safely and efficiently,” added Srikanth.

Arun R. Salvi, Head - Supply Chain, Petchem, Reliance Industries Ltd. highlighted that India’s chemical supply chains must embrace diversification, digital adoption, and collaboration to withstand global disruptions.

“The global chemical supply chain today is operating in a true VUCA world, defined by volatility, uncertainty, complexity, and ambiguity. These forces are continuously reshaping our networks. Since the pandemic, we have seen repeated shocks: supply shortages, trade restrictions, and geopolitical challenges. For India, the situation is even more critical because more than 60% of our chemical requirements are import-dependent, making us highly vulnerable to every disruption. So, how do we respond? The answer lies in diversification. We cannot depend only on China and a few East Asian nations. We must explore new regions, strengthen local suppliers, and make them sustainable and globally compliant. With the right investments and by leveraging new trade agreements, Indian suppliers can become reliable partners in the global chemical ecosystem.”

“At the same time, we must embrace digital transformation. Our challenge is not the absence of data but the overload of it. AI and digital tools can help us separate signals from noise, quantify risks in real time, and enable faster, data-driven decision-making. This will be a true differentiator in the years ahead. Finally, we must collaborate with ports, logistics providers, and regulators to ensure priority handling of chemical cargo and to build dedicated chemical safety infrastructure. With these steps such as diversification, sustainability, digital adoption, and stronger infrastructure, we can create a future-ready chemical supply chain that is resilient, globally competitive, and sustainable,” added Salvi.

Prof. V. N. Rajasekharan Pillai, Vice Chancellor, Somaiya Vidyavihar University underlined the importance of stronger collaboration between academia and industry to build resilient supply chains.

“Governments and international organizations bring in schemes, but real progress happens when institutions and industry work together through training, education, and collaborative programs. Today, disruptions are everywhere, the geopolitical tensions, wars, climate events, floods, droughts, and pandemics. During COVID-19, our supply chains suffered, but we also saw rapid innovations: vaccines, devices, and global collaborations that would have been unimaginable earlier. Disruption, therefore, often sparks creation.”

On the use of new age digital tools, Prof. Pillai calls for cautious optimism. “Technology is now reshaping supply chains with AI, IoT, blockchain, and big data. But the challenge is not data scarcity, it is data overload. We must separate signals from noise. AI can help, but it needs human wisdom. I often say, alongside Artificial Intelligence, we must also guard against natural stupidity.”

“Supply chains are further shaken by sudden policy changes such as tariffs, trade restrictions, or climate risks that threaten logistics. This makes resilience the key. Diversifying supply bases, supporting local suppliers, adopting digital tools, and working with ports and logistics are all ways to prepare for the future. Finally, industry and academia must come together to train the next generation in resilience and innovation. If we combine human judgment with technology, disruptions will not be barriers but opportunities to build stronger, future-ready supply chains,” added Prof. Pillai.

Chief Guest of the inaugural session, Susanta Kumar Purohit, Chairperson, V O Chidambaranar Port Authority emphasized that strength ensures resilience, noting how countries with stronger systems managed COVID-19 disruptions better.

“The stronger we are, the better we can face challenges, as seen during COVID-19 when some countries managed the crisis more effectively due to stronger systems. Alongside strength, regular collaboration, quick decision-making, speed, and skill are essential. The government is working hard in this direction, emphasizing reform, transform, and perform across ministries and institutions, making the decision-making process faster than before.”

“Our port is one of the strongest assets we have. Geographically, it is cyclone-protected by Sri Lanka, allowing uninterrupted operations 24/7, 365 days a year, unlike other ports affected by weather. Built on a rocky basin, it saves hundreds of crores annually on dredging costs. It has one of the lowest operating costs among major ports, making it highly competitive. The port handles exports like 90-meter-long windmill blades and is well-connected by excellent highways. Another advantage is proximity to two international airports, Madurai and the newly expanded Tuticorin, ensuring easy global access. The port is also emerging as India’s designated green hydrogen and offshore wind hub, with ongoing projects in renewable energy and green shipping. We already generate all our electricity from solar and wind, and are moving toward becoming the country’s first carbon-neutral port. Our turnaround time is one of the fastest in India is just 18 hours compared to 35 at JNPT. With major expansion projects worth Rs 7,000 crore underway, including new container terminals, this port is poised to become a key transshipment hub on the east coast.”

The ChemConnect 2025 was supported by Netradyne as the Platinum Partner. The Gold Partner of the event was JM Baxi and the Associate Partner was dDriven.