Published in Chemical Industry Digest. – February 2024 issue
It is Important to understand what the future unfolds for the industry and economy. The world is at an inflexion point with several digitally driven technologies converging, that are expected to be not just transformative, but could create undreamt of paradigm shifts that could result even in civilizational upliftments, unachievable before. To understand the impact on industry, Chemical Industry Digest posed the questions below to CEOs, two of which were published in January 24. Here we reproduce the responses of Chandrakant Nayak, CEO & Country President, Dow India.
Q1. Chemical Industry Digest (CID): What would you say are two or three of the most important trends of the last year that has impacted Indian business and industry, and more particularly, your industry?
Chandrakant Nayak (CN): Reflecting on the past year, two critical trends have markedly impacted Indian business, especially in the chemical industry. Firstly, geopolitical tensions, including the Russia-Ukraine conflict and China’s actions in the Indo-Pacific, have significantly disrupted global supply chains. These disruptions, compounded by the pandemic’s lingering effects, have emphasized the importance of domestic manufacturing. India’s response, propelled by government incentives like the Production-Linked Incentive (PLI) schemes, has encouraged a strategic shift towards enhancing local manufacturing capabilities. This move presents a mixed bag of opportunities for growth and the challenge of modernizing infrastructure and technology.
Secondly, the surge in environmental consciousness has solidified sustainability and green chemistry as strategic imperatives. Geopolitical issues, such as the crisis in the Red Sea, threaten to impact global trade and increase operational costs, potentially affecting the availability and affordability of chemicals. Despite these challenges, the commitment to sustainable practices remains unwavering, with the chemical sector increasingly focusing on reducing emissions, adopting renewable energy, and exploring bio-based alternatives. This trend is driving innovation and creating opportunities for those ready to adapt to sustainable solutions.
These trends highlight the resilience and adaptability of the Indian chemical industry, showcasing its crucial role in the nation’s economic growth amidst
global uncertainties and challenges.
Q2. CID: How do you foresee both global and domestic economic situations evolving, its impact on industry and the industry trends you feel will shape the course of your industry in 2024?
CN: Looking ahead to 2024, we anticipate a nuanced global and domestic economic landscape that will directly influence the chemical industry. Despite expecting a moderated global growth rate and potential regional slowdowns, I am optimistic about India’s economic resilience, underscored by robust domestic consumption and significant government investments in infrastructure and manufacturing. These elements are poised to stabilize and potentially boost the chemical sector amid global uncertainties.
The industry is expected to adapt by focusing on cost efficiency, optimizing processes and the workforce. There’s a notable shift towards specialty chemicals, driven by stable demand for high-value products in niche applications. Additionally, the environment may spur strategic consolidation, mergers, and acquisitions, opening up opportunities for companies
to expand, adopt new technologies, and enter new markets. In this context, it seems prudent to consider expanding our manufacturing by looking towards supply of specialty chemicals. Leveraging India’s growing expertise and competitive advantages in this sector could align well with our strategic objectives, enhancing our position in the global marketplace.
Key trends likely to shape the chemical industry in 2024 include a continued push towards sustainability, driven by regulations, consumer preferences, and the pursuit of cost efficiencies through green technologies and bio-based chemicals. Digitalization and automation will play a critical role in optimizing production, enhancing supply chain efficiency, and fostering product innovation. In the realm of circular economy initiatives, our brand REVOLOOP™
Recycled Plastics Resins exemplify innovation by creating a platform for change through the integration of post-consumer recycled (PCR) plastics. These PCR-rich grades, offered as a fully formulated, ready-to-use single-pellet solution, underscore our commitment to sustainable practices and material innovation.
Moreover, the adoption of circular economy principles will become more prevalent as companies strive to minimize environmental impact and resource consumption, aligning with broader global sustainability goals.
Q3. CID: Digitalisation is inescapable. What is the progress that you have made in your company in digitalisation of your operations? What benefits have accrued so far? How are you proceeding with reskilling of your workforce on digitalisation?
CN: The Digital Dow Strategy catalyzes transformative change through four digital breakthrough areas: Material Discovery, Operational Excellence, Buying Experience, and Fulfilment Experience. This strategy seamlessly integrates digital capabilities into all aspects of operations, including IT, cybersecurity, and data analytics, strengthening our position in the digital age, and enhancing internal and external engagements
with focus on growth.
Among its notable innovations, Paint Vision digital platform stands out, having received the prestigious 2023 BIG Innovation Award for its excellence. Similarly, the Virtual Experience Center for beauty and personal care illustrates Dow’s digital prowess and commitment to engaging customers. Further advancements, such as the revamped Dow.com and a new Digital Order Management system, streamline operations and elevate customer service by providing round-the-clock access to ordering and real-time visibility on product availability.
The tangible benefits of Dow’s digital transformation include increased operational reliability, optimized asset utilization, and enhanced safety and productivity through integrated work processes and team collaboration. Investing in workforce digital
skills, particularly through the Digital Citizenship Learning Hub, ensures future preparedness. This comprehensive digitalization effort is pivotal for ongoing innovation, operational excellence, and workforce empowerment, positioning Dow as a leader in the digital era.
Q4. CID: As you know Artificial Intelligence (AI) together with voluminous data management and analytics is bringing innovative paradigm changing transformations for business and industry. What are your plans and strategies to incorporate AI in your business?
CN: We are dedicated to harnessing Artificial Intelligence (AI) and data analytics to revolutionize our business operations and enhance our competitive edge. Our strategic utilization of AI spans various areas, including enhancing decision-making, boosting operational efficiency, and refining commercial strategies. Noteworthy initiatives include our Market Intelligence Hub, delivering real-time market insights through AI, and our Customer Service Representative Assistant Platform, employing predictive analytics to improve customer service. AI integration extends to our commercial team, optimizing pricing strategies for greater effectiveness. Looking forward, we are committed to AI research, forging tech partnerships, and fostering a culture of continuous learning to explore AI-driven opportunities. These include use of predictive intelligence for modelling, enabling faster development of solutions in R&D.
We are actively exploring Generative AI for workflow automation. Recognizing the importance of data quality for effective AI implementation, our ‘Data Literacy Program’ across different organizational levels is to promote understanding of data’s significance. This comprehensive approach ensures our leadership in AI-driven business innovation.
Q5. CID: Many new technologies are converging. Apart from Industry 4.0 and AI, other transformational technologies are Machine Learning, Robotics, Drones, Synthetic biology, Virtual Reality, Digital Twins etc. What are your views on these transformational technologies and what could be the shape of things to come?
CN: The convergence of transformative technologies – AI, Machine Learning, 3D Printing, Blockchain, Robotics, and Virtual/Augmented Reality – is not just reshaping industries like chemicals; it’s revolutionizing them. At Dow, we embrace this revolution through our ‘Digital Dow’ strategy, committing to a digital ecosystem that spans our operations. We empower our workforce with these technologies to enhance safety and efficiency. Our initiatives, such as the Digital Manufacturing Acceleration program and Electronic Safe Work Permits, are prime examples of technology-driven operational excellence and safety. As we lead this technological evolution, our aim is to accelerate innovation, enhance customer reliability, and achieve our sustainability goals.
This technology convergence heralds a shift towards a new era of growth, innovation, and sustainable development opportunities. With a future-oriented mind-set, we emphasize “Empowering People with Enabling Technology”, underscoring the role of human innovation in harnessing technology’s potential. Our active engagement with these technologies aims to merge digital and physical realms, driving transformative changes across all dimensions.
