Deeper Insights on Sustainability

Views of World-Renowned Scientists and Sustainability Advocates

In the last edition (3rd) of Chemical Industry Digest Annual on Sustainability, we had views from leading chemical industry CEOs, defining the different dimensions of sustainability in the chemical industry.
This time, for this 4th edition of the Sustainability Annual, Chemical Industry Digest, quizzed leading scientists and sustainability advocates on adoption and incorporation of sustainability practices in the hydrocarbon, chemical and allied industries.
Their responses published here provide deep insights on the subject.
The gist of it is that the chemical industry has to move quickly beyond environment-friendly processes and embrace proactively and wholeheartedly the principles of sustainability and incorporate it in business and industry.
This needs a huge transformational shift in mindsets and attitudes from top management to virtually all other personnel in the chemical industry. And it has to roll all along the entire manufacturing value chain from suppliers to the end-users. Equally, it would need transformational changes in business and manufacturing models. If looked at positively it will drive innovation and concomitantly open up new vistas in business opportunities.
Chemical Industry Digest has been privileged to obtain views of India’s leading and internationally renowned scientist and here Dr S Sivaram’s views on sustainability.

Dr Swaminathan Sivaram
INSA Senior Scientist and Honorary Professor, Indian Institute of Science Education and Research &
Former Director of National Chemical Laboratory

Chemical Industry Digest (CID): Experts state that the survival and future of the chemical industries would depend on how quickly the industry adopts sustainability as its main principle or operating theme. To what extent is this a critical factor? Can the industry adopt sustainability incrementally? Do they need to totally revamp? Would they have to change their manufacturing & business models?

Dr Swaminathan Sivaram (SS): Embracing sustainability is certainly critical to the future of the chemical industry. Principles of sustainability must be firmly embedded in the operational philosophy of the chemical industry, large or small. For large and listed companies, this is even more important. Often practising principles of sustainability is considered as a cost; however, it must be really considered as insurance for future survival. Implemented with thought, it can also lead to an improvement in the bottom line of companies. In my opinion, sustainability adoption has to be incremental, with a clearly planned strategy for implementation. Well-defined annual plans with measurable targets must be laid out to make industry operations sustainable. Such incremental adoption strategy will make the process less disruptive. Depending on the business and the current levels of sustainability, companies may have to tweak their manufacturing and business models. In the end, sustainability is a classic problem of the “Tragedy of the Commons”, where everyone tries to maximize his/her personal gain based on perfectly good and logical reason, but collectively create damage to the eco-systems. Sustainability is also a problem related to how we handle our increasing desire for material consumption for enhancing our quality of life in a world of diminishing resources.

CID: An integrated approach always provides the best results in any area. What should be the elements of such an integrated strategy to implement sustainability in the chemical industry?

SS: Elements of an integrated approach to sustainability are (a) a clear understanding of what “sustainability” means in the context of a given business (b) defining specific components of sustainability (c) understanding the current levels of each of the component and the desirable target levels to be achieved (d) mapping the sustainability journey in terms of plans, budget, manner of implementation and defining measurable indicators of performance (e) and setting internal processes to measure the cost to benefit ratio. The battle against sustainability can be won only when a company realizes that its adoption has brought tangible benefit to the company.

CID: Currently most of the chemical industry is in the ‘take-make-dispose’ mode of manufacturing. Can this shift to a cradle to cradle (circular) manufacturing or stepwise by first getting into greener processes with less environmental distress & then into circular manufacturing. Are circular processes feasible? – only in some cases or majorly?

SS: Circularity is a key component of sustainability. Zero-waste and zero-discharge processes can be implemented only when the concept of circularity is accepted. Like in many other activities, the journey begins once we embrace the philosophy of sustainability. The road to circularity will not be linear; it will have to go through many side alleys, with small improvements. One should not be weighed down by the thought of achieving complete “circularity”. In some case, even partial circularity is better than none at all.

CID: If chemical companies have to revisit their manufacturing processes to make them on sustainable lines, which areas should they start in the manufacturing cycle & how: Products (Restructuring product portfolios)? Processes (Green Chemistry)? Plant & Equipment (Improving Efficiency)? Starting Materials (Biomass/Renewables)? Any other?

SS: The manufacturing industry has to relook at all its processes. However, one is not advocating that they change it all at once. This is not practical because of sunken investments. One of the thought experiments that every industry can undertake is to ask: If we were to build a new manufacturing facility today, keeping in mind the goal of circularity and sustainability, how should we do it? How should my flow sheet ideally look like? How can I maximize output with minimum inputs of materials, energy and water? How should my wastes and byproducts be used to create additional wealth? What kind of process improvements is needed? If my final output is a product, how will I design it a priori to meet the needs of circularity? Such thinking will lead to solutions that can be implemented even within the constraints of existing manufacturing technologies. In addition, sustainability goals have to be extended to the entire supply chain. Manufacturers have to take responsibility for the products after their use. Labelling and information sharing with consumers must become open and transparent.

CID: Since innovation is needed across the manufacturing value chain to achieve sustainability, can the advent of Industry 4.0 technologies (IoT, Artificial Intelligence, Machine Learning, Data Analytics etc) give a fillip to accelerate innovation/sustainability.

SS: Digital and Industry 4.0 technologies are critical to any industry of the future; however, adopting these technologies alone will not serve the cause of sustainable manufacturing. The latter will require new ways of thinking based on our understanding of chemistry and chemical engineering and devise efficient new process technologies suited specifically for the needs of the specific industry. Digital and industry 4.0 technologies are tools. Sustainability goal is a process.

Sustainability cannot be merely reduced to a problem in science and technology. Before implementing any solution deep thought and analysis are required. We still lack adequate tools and disciplined processes to define the “unintended consequences” of any new solution.

CID: Do you think there is sufficient awareness of the importance of sustainability in the industry from top management to employees. Any additional steps required to increase awareness and convert awareness into action?

SS: I tend to believe that there is sufficient awareness amongst the chemical industry leaders on the importance and relevance of sustainability and its criticality to the survival of the business. However, whether the message has trickled down to the employees is doubtful. The chemical industry is at a crossroads today and is often the whipping boy for all the ills of the society. Increasingly, the license to operate a chemical industry needs to be obtained from the citizens and the community, not the Government or regulatory bodies. Informed citizens have the power to shut down what they believe are processes with a poor record of sustainability and they have shown it so in recent times, even in India. If the chemical industry has to regain its trust amongst the community, it has to behave more responsibly and communicate more effectively than they are equally, if not more, concerned about the negative impact of chemical manufacturing.

Sustainability is ultimately a new way of thinking and doing. This requires a change in mindsets and significant “social engineering”. Embedding all dimensions of sustainability in undergraduate science and engineering education will be important to create a new generation of people who think differently. A beginning has already been made in many Universities abroad. In India, too various institutions are planning to introduce a structured curriculum in chemistry and chemical engineering to impart knowledge on “sustainability” thinking. There is also a need for industry personnel to be educated through short courses on this subject, so there is a common understanding on the principles of sustainability and the methods and tools available to achieve the goals.

CID: While there are the Dow Jones Sustainability Index & other Indices by professional bodies like AIChe, what according to you should be the benchmarks for measuring sustainability? To what extent does obtaining a good rating facilitate a company’s business?

SS: There are a plethora of indices to measure sustainability. While they provide guidance, these indices have no absolute significance. Every company must devise their own internal metrics for the processes they operate. Sustainability is driven by an inner conscience which values social responsibility and places it above all other considerations. It is in effect an ethical statement. Therefore ratings are, in my opinion, less important.

ISO has issued ISO 26000 as broad guidance on social responsibility and sustainability. More than ever, both consumers and manufacturers recognize the impacts of their choices and actions. In the past, many of the costs of doing business were hidden; now ISO standards allow them to be quantified and factored into decision-making processes. This means more responsive and responsible businesses. These ISO standards enable businesses to plan their future growth around meeting consumer expectations. They enable transparency about products and best practices for limiting their negative impacts.

A sustainable future means balancing the needs of the environmental, social and economic systems. Every organization is increasingly expected to play a significant role in achieving this. With over 450 recommendations that directly impact the Sustainable Development Goals, ISO 26000 provides guidance on how businesses and organizations can operate in an ethical and transparent way that contributes to sustainable development.

Deeper Insights on Sustainability

Views of World-Renowned Scientists and Sustainability Advocates

In the last edition (3rd) of Chemical Industry Digest Annual on Sustainability, we had views from leading chemical industry CEOs, defining the different dimensions of sustainability in the chemical industry.
This time, for this 4th edition of the Sustainability Annual, Chemical Industry Digest, quizzed leading scientists and sustainability advocates on adoption and incorporation of sustainability practices in the hydrocarbon, chemical and allied industries.
Their responses published here provide deep insights on the subject.
The gist of it is that the chemical industry has to move quickly beyond environment-friendly processes and embrace proactively and wholeheartedly the principles of sustainability and incorporate it in business and industry.
This needs a huge transformational shift in mindsets and attitudes from top management to virtually all other personnel in the chemical industry. And it has to roll all along the entire manufacturing value chain from suppliers to the end-users. Equally, it would need transformational changes in business and manufacturing models. If looked at positively it will drive innovation and concomitantly open up new vistas in business opportunities.
Chemical Industry Digest has been privileged to obtain views of India’s leading and internationally renowned scientist, Dr R A Mashelkar.

Dr R A Mashelkar, FRS
National Research Professor & Former Director-General of CSIR

Chemical Industry Digest (CID): Experts state that the survival and future of the chemical industries would depend on how quickly the industry adopts sustainability as its main principle or operating theme. To what extent is this a critical factor? Can the industry adopt sustainability incrementally? Do they need to totally revamp? Would they have to change their manufacturing & business models?

Dr R A Mashelkar (RAM): I strongly believe the industry needs solutions that are no longer just environment-friendly but fundamentally shift the paradigm and address both the ecology and the economy. The market for “green” chemistry is already expected to reach $100 billion globally by next year. The chemical industries no longer have the luxury of adopting sustainable goals incrementally, they have to innovate and adopt breakthrough solutions. As I have mentioned on multiple occasions, leapfrogging is no longer an option, the chemical industry must pole vault. The digital revolution is another critical enabler which can provide a plethora of solutions for driving sustainability.

India, in particular, needs to jump the development cycle – and we have done this many times in different industries. For example, we jumped the landline generation and went straight to the mobile phone era. Today, we have the same opportunity with power generation – we could transition from predominantly coal to the optimum mix of renewable energy and non-renewable energy. Also, the Indian chemical industry must strive to become the world leader in setting the sustainability example – both in policy and in practice.

CID: An integrated approach always provides the best results in any area. What should be the elements of such an integrated strategy to implement sustainability in the chemical industry?

RAM: In my book titled `Leapfrogging to pole vaulting: Creating the magic of a radical yet sustainable transformation’, I have laid out the contours of an integrated strategy with assured success.

ASSURED can be a ‘one word integrated strategy’ for the chemical industry to implement sustainability. The industry needs to achieve accelerated inclusive growth and the ASSURED framework would be a great tool for this. The framework can even be used for judging an institution, an enterprise irrespective of its size.

An integrated strategy to implement sustainability in the chemical industry could be based on the following elements:

A (Affordability) is required to create access for everyone across the economic pyramid, especially at the bottom.
S (Scalability) is required to make a real impact by reaching out to every individual in society, not just a privileged few.
S (Sustainability) is required in many contexts; environmentally sustainable, economically feasible, socially acceptable and adaptable to policy changes.
U (Universal) implies user-friendliness, so the innovation can be used irrespective of the skill levels of an individual.
R (Rapid) refers to speed. Inclusive growth cannot be achieved without the speed of our action matching the speed of our innovative thoughts!
E (Excellence) in technology, product quality, and service quality is required, not just for the elite few but for everyone in society.
D (Distinctive) innovation is required because there is no use of creating me too’ products and services.

All the above elements provide for a powerful framework to achieve the integration of environmental concerns and sustainable development, thereby promoting environmental protection, competitiveness, innovation and employment.

CID: Currently most of the chemical industry is in the ‘take-make-dispose’ mode of manufacturing. Can this shift to a cradle to cradle (circular) manufacturing or stepwise]w9a by first getting into greener processes with less environmental distress & then into circular manufacturing. Are circular processes feasible? – only in some cases or majorly?

RAM: The ‘take-make-dispose’ thinking clearly has its limitations. The current state of affairs of our consumption of the non-renewable resources and adding waste to our air, land, and water is just not sustainable. The chemical industry and its innovations can lead the way in this change.

However, circular manufacturing cannot be restricted to a company’s own operations. It needs to run across the value chain to embrace and provide value to customers and suppliers. This needs large amounts of renewable energy and significant investments.
I am optimistic about the change happening sooner than later, primarily driven by technology-led to disruptive innovation. However, we also need to realise that the change of moving to a whole new manufacturing process across the industry will not happen overnight.
We are already seeing commendable work going on across the globe. One such example that I can think of is the Waste2Chemicals initiative. This is a consortium of 8 international companies, including Enerkem, Air Liquide, and AkzoNobel, which intend to begin joint production of bio-based methanol and ethanol from municipal waste. The technology is compatible with existing waste infrastructure and is intended to enable wastes that cannot be mechanically recycled to be converted into fuels and high-quality chemicals via synthesis gas.

CID: If chemical companies have to revisit their manufacturing processes to make them on sustainable lines, which areas should they start in the manufacturing cycle & how: Products (Restructuring product portfolios)? Processes (Green Chemistry)? Plant & Equipment (Improving Efficiency)? Starting Materials (Biomass/Renewables)? Any other?

RAM: chemical companies need to have a more holistic approach. Embracing sustainability gives chemical producers an opportunity to optimize their manufacturing processes, increase vertical integration of the supply chain, reduce resource consumption, and gain greater control over the entire product lifecycle, including the ability to sustainably manage the end-of-life of a product.

I believe companies should start with one or two initiatives and expand their capabilities and move strategically along the sustainability spectrum.

I would like to highlight the example of Michelin, where I serve on their Corporate Innovation Board. In ba id to strengthen their resolve for circular manufacturing, Michelin acquired U.S. specialty chemicals company Lehigh Technologies, which produces a material called micronized rubber powder (MRP) from waste tires. These powders are capable of replacing oil- and rubber-based feedstocks in a variety of applications, including the production of high-performance tires. This is a perfect example of ca losed-loop, zero-waste process that manufacturers need to pursue as they move towards circular manufacturing.

CID: Since innovation is needed across the manufacturing value chain to achieve sustainability, can the advent of Industry 4.0 technologies (IoT, Artificial Intelligence, Machine Learning, Data Analytics etc) give a fillip to accelerate innovation/sustainability.

RAM: The chemical industry is already entering a new phase with Chemistry4.0, in which digitalization, circular economy, and sustainability are playing keyroles. Digital technologies are already helping chemical manufacturers develop the low-carbon innovations which they need to thrive in the Circular Economy. Europe and in particular Germany is at the fore-front of applying Industry 4.0 to accelerate sustainable and inclusive innovations.

AI is being used for rethinking standardized processes as continuously adaptive and applying AI to manage processes, getting the maximum out of the data to solve previously unsolved problems and reveal hidden patterns and also in shifting toward an AI-enabled culture and reskilling employees to collaborate with machines.

Further, chemical companies can realise the full benefits of reimagined processes if with their customers, they keep on exploring the potential of intelligent virtual agents, for internal use and customer service desks. They can sweat their assets far more by creating an “intelligent plant” utilizing cognitive learning for predictive insights.

Predictive maintenance has emerged as a significant use case for Industry 4.0 technologies. The sensors collect real time bigdata, which is then analysed and specifically developed algorithms predict machine failures as well as their cause. This way production losses can be avoided through appropriate maintenance measures, significantly reducing the costs and time required for maintenance.

CID: Do you think there is sufficient awareness on the importance of sustainability in the industry from top management to employees. Any additional steps required to increase awareness and convert awareness into action?

RAM: Unfortunately, it is the history of accidents, and the resultant damage to human health, flora and fauna and the environment which has created awareness on the importance of sustainability. In the last four decades, the number of manmade disasters nearly tripled, while the number of natural disasters surged sevenfold. Many regulations and awareness initiatives have sprung up as a result of these horrific accidents.

I have personally been involved in looking closely at human tragedies in India Bhopal gas tragedy, Maharashtra Gas Cracker Complex accident. As humans, we have suffered far too many such disasters and their consequences to turn a blind eye to them.
I am glad that globally, chemical companies are showcasing their sustainability intent. A quick review of the disclosures by leading chemical companies points to sustainability risks and opportunities being mainstreamed in business operations. Many of these large chemical companies are being proactive in their commitments to move to ‘zero’– zero waste, zero-emission or zero hazardous chemicals. The leadership of all major companies have taken initiatives to strengthen their engagement with the stakeholders (internal and external). Digital technologies and primarily social media are becoming an increasingly important tool is this aspect.

Wh ile companies do their bit, I believe awareness initiatives targeted at school and academic institutions should be undertaken, which will create huge human resource who are sensitive to sustainability and action oriented in their approach.

CID: While there are the Dow Jones Sustainability Index & other Indices by professional bodies like AIChe, what according to you should be the benchmarks for measuring sustainability? To what extent does obtaining a good rating facilitate a company’s business?

RAM: I think the era of ‘holding’ businesses accountable or benchmarking them is far gone. Today, businesses have to be self-accountable and create cultures that deliver real improvements in health, safety and environmental performance, and have benefits to all. Take activist shareholders – they are a part of the company, and have played a big role in holding corporates accountable. Real, organic change always comes from within.

Several emerging digital technologies are converging to thrust manufacturing and services into the next orbit. The excitement about digital transformation comes from the new opportunities it is opening up in combining powerful and large amounts of data from multifarious sources in a manufacturing plant and from operating processes with data analytics. This provides valuable information and insights – which were not possible to extract earlier – enabling online optimisation of plant and process, including proactive maintenance of plant & equipment, well in advance, avoiding breakdowns. It is helping in unlocking higher levels of plant performances.
Many who thought that plant optimisation and profitability had peaked are now realising that using such digital technologies, Artificial Intelligence & Machine Learning, productivities & profitabilities can be driven higher, much more than before. These technologies apply across functional areas, allow far better & quicker analyses and hence enable better decision making.
It is also making work more exciting and interesting for plant people, taking the drudgery out of work.
However, digitalisation is not just about novel technologies. It needs decision making at the highest levels. It is important to prepare the organisational infrastructure – IT systems, plant & equipment to incorporate Industry 4.0 and importantly, reskilling the human resources. It needs specific focus, objectives and targets with a roadmap for implementation, which is what counts in effect.
To understand the implications of how Industry 4.0 is unfolding, Chemical Industry Digest sought the views to a few questions from industry leaders whose views are presented below.
Chemical Industry Digest Questions:

Q1. As you know Industry 4.0 constitutes a suite of advanced digital technologies which include: artificial intelligence (AI), industrial internet of things (IIoT), data analytics, virtual reality, machine learning, advanced robotics, blockchain. Many leading experts opine that the advent and convergence of these technologies and their applications in industry and elsewhere will herald the next paradigm shift in manufacturing, which could be a disruptive shift rather than incremental.
How do you view the emergence of Industry 4.0 and what do you feel will be its impact on industry? In what all areas of manufacturing or engineering services would it contribute? Would existing business models need to be re-examined?

Q2. What is your company’s strategy for the digital transformation of your company using these technologies? To what extent has your company seized the potential of Industry 4.0, from top management to the rest of the workforce? How are you preparing your organization for the adoption of such technologies?

Q3. What do you feel are the challenges to its implementation in industry? What about the availability of adequate trained human resources for this? Would it need large scale re-skilling of the workforce?

Rajesh Joshi, Vice President of Sales, India, Aker Solutions
A1. Digitalization, which is a part of Industry 4.0, represents an incredible opportunity. New technologies that combine the physical, digital and biological worlds will impact all disciplines, economies and industries.
A combination of cyber-physical systems, the Internet of Things and the Internet of Systems makes Industry 4.0 possible and the smart factory a reality. Connected machines collect a tremendous volume of data that can inform maintenance, performance and other issues and also analyze that data to identify patterns and insights. Using these technologies, facilities will become more efficient and productive and less wasteful.
Industry 4.0, particularly robotics and additive manufacturing, will also have a disruptive impact on mechanical engineering design. Digital engineering simulation tools create realistic, perfectly scaled, three-dimensional images that speed up product design, reduce iterations and shorten time to market. Processes and operations will have to be redesigned to accommodate these new advances. It will also impact the design of products for increasingly smart manufacturing facilities.
In project management, data from current and past projects tends to be scattered among different sources. Digitalization could assist to capture and analyze the data. It can also assist in developing repeatable, standardized designs and significantly drive efficiencies on design timelines and efforts.
At Aker Solutions, we develop products that use digital technologies to allow our customers to move toward more complex condition monitoring and predictive and preventive maintenance. For example, we have been appointed by Wintershall AS to build a complete digital replica of the Nova subsea production system and undertake a study to enable live data streaming and monitoring of the subsea equipment. The digital twin will become an advanced replacement to traditional documentation, ensuring that all relevant engineering data is held centrally in a single, interactive and searchable solution.
Whereas short-term successes can be realized via process optimization, a long-term strategy requires the development of new products and services as well as new business models which utilize the potential of new technologies and add value in the process. Business models based on digitalization could support long-term advantages such as interoperability, virtualization, modularity and the decentralization of decision-making.
A2. Digitalization is high on Aker Solutions’ agenda, with digital technologies transforming how we live and work. Increasing the use of these technologies has the potential to improve internal flow efficiency significantly. To support this, we moved a number of our business-critical internal systems to the SAP cloud last year.
We believe that the industry needs standardization to reduce capex, improve quality and shorten lead time. With this in mind, we have been working towards increasing the automation of engineering design through standardized, rule-based flexible building blocks. These are being developed using a combination of industry best practices and lessons learnt from past projects.
We’re also working on more hands-on applications for new technologies. For example, we recently installed an automated warehouse storage system at our operation in Brunei. It reduces the material footprint, increases the speed of work and ensures safe operation. It’s also fully integrated with our digital work management system.
More than half of all our R&D investments were allocated to digital initiatives last year, and we expect this share to increase going forward. We have also established a “Software House” to act as a hub for innovation and accelerate and commercialize our own software solutions. Additionally, we are collaborating with other organizations for the collection and analysis of data and the development of new digital offerings.
With these and other initiatives, we are executing on our plan to connect our products, assets and people to the digital ecosystem.
A3. Organizations need to establish an operating model that supports digitalization and innovation. Digital initiatives need to be integrated into the core strategy and work processes. Organizational structures need to be updated for digitalized environments.
Over the next few years, we can expect major shifts in three areas: organizational structure, talent management and corporate culture.
Talented individuals with a passion for technology will be needed to fill new roles and help staff members in traditional roles develop their digital skills. Companies that want to enable innovation must ensure that all employees in traditional roles start developing digital capabilities that complement their existing skills. A long-term plan to recruit, develop, and retain people with very specific capabilities is essential to address any gaps.
Most successful digital teams focus on three priorities. First, they perform analytics to assess operations and performance, and then they take action based on the insights. They also rapidly test and deploy new hardware and software – for instance, an innovative project production system software or a new autonomous piece of site equipment – following agile principles.
The changes described won’t come easily or quickly, but the companies that resolve to address them first will likely emerge as digital leaders.

Ajay Durrani, Managing Director, Covestro (India) Pvt. Ltd.
A1. Industry 4.0 is a fresh intake of current and innovative technologies. If you look at the past years of development in the ways of working, we have come a long way by shifting from traditional and conventional processes to adapting the new age technology. Digitalization has already made its mark in bringing excellence in multiple areas of manufacturing and other related industries already. Industry 4.0 will take the digitalisation to next level with support of technologies like Artificial Intelligence, Internet of Things (IOT), Data Analytics.
Industry 4.0 will truly rely on data and trend analysis as that is going to be the king maker in future and I would say it has already started showing results in the consumer industries specially in FMCG sector with so many customised product variants even for example for a small category like the bakery industry. Today, thanks to AI and Data Analytics, organisations have detailed likings and buying patterns of each customer. Multiple levels of customisation are possible. This has also compelled the related manufacturing industries to embrace the industry 4.0 concepts to cater to rising consumer needs for customised products. Looking ahead of the negligible disruptiveness at the beginning, the trend will bring about more benefits in the industry by contributing to areas like productivity, cost, product quality, operations etc. Although the effect of the Industry 4.0 will be widespread, the areas of production and supply chain will witness the most competitive advantages. All the players in the industry have a huge scope on optimizing on this,as in the future entire factory setup can be digitalised and connected to entire value chain which will give leverage to all the players to optimise as well as enhance their forecasting abilities.
A2. Digital solutions have long been standard in everyday life. And they also facilitate work in the chemical industry and offer great economic opportunities, which Covestro is seizing with a comprehensive transformation program. The focus is on further digitalization of operations, points of contact with customers and new digital business models.
Digitalization is becoming part of our lives – both professionally and privately. This change is being further accelerated by the fast-paced nature of technological developments and the omnipresence of digital technologies. This progress holds enormous potential for Covestro in many areas. The comprehensive “Digital@Covestro” strategic program is designed to make use of this. It comprises three dimensions: “Digital Operations”, “Digital Customer and Supplier Experience” and “Digital Business Models”. Each individual dimension opens up new possibilities for the optimization of production processes and workflows. As a result, added value can be created in many business areas, but it is above all the people who benefit from the digitalization of work processes at Covestro. This transformation needs to be well accompanied: For example, new processes must be internalized, new customer needs to be identified and an adapted working environment created.
Industry 4.0 will be a next formative step in establishing collaborative ways of working across entire value chain and concepts like ‘no-touch orders’ will be reality. At Covestro India we already have progressed well in this area with help of multiple digital inclusion programs.
A3. As the Industry 4.0 is upon us, the impact of it on each industry or company will be different globally, as well as locally. It has become vital for an organisation to retune their current setup to the advanced way of working. This will have some temporary effect but is the need of the hour for most of the organisations. While we will be busy modifying our business models and our operations, one of the essential elements that we cannot leave out is our people. Be it any automation or advanced technology, you will still need a human resource to oversee the effectiveness.
India has the advantage to skill as well as reskill people in this new age technology easily, being one of the software superpowers. However we need to enhance our education system to be more vocational and move towards exploratory learning system. Industry and Academia need to work together in developing curriculum relevant for the change being envisaged by the industry and for the future expertise required.
As the world becomes smart in manufacturing and related processes, there will be equally huge demand for techno-savvy workforce. Such smart work force need to understand not only traditional engineering concepts but are also absolutely hands-on to use multiple softwares and data analysis tools. There is a considerable opportunity for India to create talent pool for the world that is Industry 4.0 ready and will help the world drive this change.

Sudhir Shenoy, CEO, Dow India
Chemical Industry Digest (CID): How is Industry 4.0 advantageous for India? What should India be doing to capitalize on this opportunity? What is the role of private players and government to drive this transformation?
Sudhir Shenoy (SS): As the 6th largest economy in the world, India is focussed on increasing its manufacturing footprint and the manufacturing GDP from 16% to 25% by 2025 – while creating 10 crore new jobs. Adoption of Industry 4.0 will bring significant strategic advantage and boom to the manufacturing industry with smart, flexible supply chains, factories and distribution models where machines capture and convey more data, via machine-to-machine communications and to human operators and others, enhancing the pace of much needed growth. It will also aid product innovation, faster time-to-market, cost optimisation through procurement/supply chain analytics, revenue maximisation through better demand forecasting, and better understanding of customer needs. Industry 4.0 works across all sizes of companies – for example- in the small industries, adoption of technology aids cost optimization, consistency in product quality and better control on product design. For the larger industries, reduction of lead time, flexibility in production, agility to market, optimization of resources, are some of the obvious benefits.
However, with Industry 4.0, one cannot expect a one-size-fits-all solution. On one hand, Industry 4.0 offers India the opportunity to create its own smart-manufacturing ecosystem, custom configured to each enterprise and industry based on the opportunities, challenges and priorities. On the other hand it can become a platform facilitating a level playing field for large, medium and small companies through regulation, policy, sustainability, creating value that makes India a competitive market for the world.
Digital Transformation is and will continue to bring significant reduction in monotonous and ergonomically challenging jobs, giving significance to cognitive abilities and system skills over physical abilities. It allows the manufacturing industry to institutionalize intellectual property, attract young and high skilled talent. Technology aids in building bridges and breaking barriers of who we hire and what we hire them for – providing an unprecedented opportunity for inclusion across gender, disability and others.
Another key element, in the Industry 4.0 discussion is sustainability. The two are closely interlinked and calls for a think now as we plan for Industry 4.0. The play of society, business, and governments to the new paradigm will be critical in directing the impact.
CID: How is Dow India adopting digital transformation?
SS: As a company, we have been early to join the bandwagon of the Fourth Industrial Revolution (FIR) – investing in organizational information systems, cyber security and risk management, reporting and advanced analytics, and facilities management. Our company has collected process control data from all its operations, over the last 20 years – over the last five years, this information has been fed into a ‘data-lake’ and is now being updated in real-time. We have also added sensors on existing equipment to monitor and run analytics. Here are some examples:
1. Predictive Maintenance: On an average, unplanned maintenance costs business between USD 300 – 500 Mn every year – directly impacting the bottom-line. Integration of traditional business with digital transformation has enabled new disciplines like ‘predictive-maintenance’ within our company. When we started this initiative and looked at robots and drones to do the turnarounds, we realized that many confined space entries require maintenance several times during the year. In the past we used to send a human inside a vessel to check, sometimes of hydrocarbons, putting people in a risky environment, when you can substitute machine for the same work. A combination of IIoT, robotics and machine learning, predictive maintenance helps us carry out periodic audits and repairs of our manufacturing sites seamlessly creating real savings. Hosted at our excellence centre in Chennai, this technology helps us monitor facilities all over the world.
2. High-throughput research: In combination with digital simulation, we are using AI to aid high-throughput research which decreases the time and effort required to create and test formulations. By using artificial intelligence we are making our engineers and scientists more productive – taking an idea to commercialization, almost two to three times more effectively.
3. Sustainability in the context of Industry 4.0 has been key enabler for us at Dow India, by helping us accelerate the creation of a safer and more sustainable ecosystem. One of the examples that comes to mind is Nicer Globe – an Indian chemical industry initiative along with Indian Chemical Council. The software used in the model, helps tracking, monitoring and quick emergency response, along with using the data from the driving on particular lanes to determine potential hotspots for accidents, using camera functionality on trucks to track the drivers alertness and to prevent driving under fatigued conditions and more.