CEW December 2016 (51st Anniversary Special)

CHRONICLING PROCESS INDUSTRY INNOVATIONS SINCE 1966

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EDITORIAL

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4 • December 2016

Industry News Technology News

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FEATURES Industrie 4.0 – Unleashing A Plethora Of Opportunities For

Mumbai

Delhi

NEWS

Amit Bhalerao (amit_bhalerao@jasubhai.com) Prashant Koshti (prashant_koshti@jasubhai.com)

MARKETING TEAM & OFFICES

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VOL. 51 | ISSUE NO. 12 | DECEMBER 2016 | MUMBAI | ` 150

The Indian Manufacturing Sector

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- Mr. Sudhir Dembi, General Manager - Plant Solutions, Schneider Electric India Let Us Make India Industrie 4.0 Ready - Vivek Gupta, General Manager & Head- Instrument, DCM Shriram Limited

44

LEADERSPEAK Nadir Godrej, Managing Director, Godrej Industries Ltd

46

Vipul Shah, Chief Operating Officer – Petrochemicals, Reliance Industries Ltd.

54

P D Samudra, CEO & Managing Director, Thyssenkrupp Industrial Solutions (India) & CEO, Regional Cluster India, tkIS AG Group

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Ashish M Gaikwad, Managing Director, Honeywell Automation India Ltd (HAIL) Country Leader, Honeywell Process Solutions (HPS) India

70

Dr Deepak Parikh, Vice Chairman & Managing Director, Clariant Chemicals India Ltd

72

Subramanian Sarma, Managing Director & Chief Executive Officer, L&T Hydrocarbon Engineering Limited

80

Yatinder Suri, Managing Director & Country Head, Outokumpu India Pvt Ltd

86

Ajay Durrani, Managing Director, Covestro India Private Limited

94

S N Roy, Member Of Board & Whole-Time Director, L&T (Power, Heavy Engineering & Defence)

99

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Chemical Engineering World

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A comprehensive knowledge-rich magazine that disseminates information on all segments of Chemical Process Industry

Emerson Automation Solutions, India

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Sanjay Joshi, India Country Manager, Aker Solutions

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Sudhir Shenoy, Chief Executive Officer

Dow Chemical International Private Limited (Dow India)

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Printed and published by Mr Maulik Jasubhai Shah on behalf of Jasubhai Media Private Limited, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021 and printed at The Great Art Printers, 25, S A Brelvi Road, Fort, Mumbai 400 001 and published from 3rd Floor, Taj Building, 210, Dr. D N Road, Fort, Mumbai 400 001.

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Chemical Engineering World

CEW Press Release Sandvik’s ROTOFORM Systems - Innovative Systems for Melt Solidification

“We are extending a warm welcome to our new colleagues. The acquisition of Chemetall allows us to significantly expand our market. By combining the expertise and innovation power of two global market leaders, we will accelerate innovation and make our customers even more successful,” said Markus Kamieth, President of BASF’s Coatings division.

Chemetall develops and manufactures customized technology and system solutions for surface treatment. Their products protect metals from corrosion, facilitate forming and machining, allow parts to be optimally prepared for the painting process and ensure proper coating adhesion. These chemicals are used in a wide range of industries and end-markets, such as automotive, aerospace, aluminum finishing, and metal forming. Chemetall’s sales for the full calendar year of 2015 were $ 845 million.

Pune, India: Sandvik’s Rotoform system has been its flagship solidification system for more than 30 years and continuous R&D has resulted in an entire family of models. The development of this comprehensive product range has not only led to faster and more efficient pastillation, but has also enabled the processing of chemical products with melt temperatures as high as 300 °C, and those with abrasive, sedimenting or corrosive properties.

Systems are available to handle products with viscosities up to 40,000 mPas, and pastilles can be produced in sizes from 0.8-36 mm in diameter. Throughput rates can be as high as 15 t/hr.

The Rotoform itself consists of a heated cylindrical stator – which is supplied with liquid product – and a perforated rotating shell that turns concentrically around the stator, depositing drops of the product across the whole operating width of the steel belt. Steel cooling belts can be up to 2 m wide, enabling high capacity solidification.

Heat released during solidification and cooling is transferred by the steel belt to cooling water sprayed underneath. This water is collected in tanks and returned to the water-chilling system; at no stage does it come into contact with the product.

Free-flowing, uniform pastilles are produced, which are easy to handle, bag and transport. Because little dust is created in the production process, or subsequently by the pastilles, the entire production is environmentally friendly.

BASF completes acquisition of Chemetall globally Ludwigshafen, Germany: BASF has announced that it has completed its acquisition of Albemarle’s global surface treatment business, Chemetall. Through this acquisition, BASF’s Coatings division expands its portfolio to become a more complete solutions provider.

BASF combines its know-how in chemistry and coatings applications with Chemetall’s market-leading expertise in surface treatment. The combined businesses will benefit from each other’s global infrastructure, scale and market access, driving new growth opportunities by offering an unmatched solutions competence to customers.

8 • December 2016

To prepare for a seamless integration, BASF has established a Global Integration Management Team, which will ensure business continuity while maintaining a clear priority on meeting customer needs.

Wacker builds new Pyrogenic Silica Plant in the USA Tennessee, USA: Wacker Chemie AG has announced that it will build a new production plant for its HDK® brand of pyrogenic silica at its Charleston site in the US state of Tennessee. The Munich-based chemical company announced this today. The new facility, with an annual capacity of about 13,000 metric tons, is anticipated to involve capital expenditure of some $ 150 million. Construction work will start in the second quarter of next year, with completion planned for the first half of 2019.

This is expected to create some 50 new jobs at the Charleston site. Wacker already produces hyperpure polysilicon for the solar and semiconductor sectors in Charleston, with some 650 employees there.

“The additional capacities strengthen our market position as a leading global producer of pyrogenic silica and help us to meet our customers’ growing demand,” said Wacker CEO Dr. Rudolf Staudigl. “The new plant is the next logical step toward expanding Charleston into a fully integrated silicon site in the world’s second-largest chemical market,” he explained, underscoring the investment’s strategic importance.

The new facility is a key addition to the Charleston site’s supply chain. The main byproduct of polysilicon manufacturing is tetrachlorosilane, which either has to be conver ted and fed back into the production loop or can be used to create added value by being fur ther processed into HDK®. By integrating the polysilicon and HDK® production systems, as already operated at its Burghausen and Nünchritz sites in Germany, Wacker achieves maximum flexibility in the reprocessing of tetrachlorosilane, avoids the need to dispose of waste products, and thereby enhances the efficiency of the integrated production system as a whole.

Chemical Engineering World

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CEW Press Release Ing ersoll Rand Appoints Mr. Amar Kaul as Chairman of the Board of Directors

presence of group of union ministers. Second Generation bio-ethanol technology uses ligno-cellulosic biomass (agri-residue) as feedstock.

Farming community is expected to be benefited from additional revenues from agri-waste. 2G bio ethanol also helps reduce dependency on the imported crude oil, thereby saving foreign exchange. This technology will act as a socio-economic and environmental enabler.

Speaking on the occasion, Mr. Pramod Chaudhari, Executive Chairman, Praj Industries Ltd., said, “We are pleased with the progress of setting up of 2G ethanol projects by the OMCs. Praj is equally committed to partner with OMCs in their achievement of completing project targets.

This is in line with Govt. of India’s vision of increased contribution of renewables in India’s energy portfolio.

LANXESS Honoured by Climate Protection InitiativeCarbon Disclosure Project New Delhi, India: Ingersoll Rand has announced the appointment of Amar Kaul as the new Chairman of the Board of Ingersoll Rand India Limited effective 21st November 2016.

Amar is currently the Territory Leader for Compression Technologies and Services in India and will now take over this additional responsibility as the Chairman of the Board of Ingersoll Rand (India) Limited effective immediately. He was appointed earlier as Managing Director of the Company and his election as the Chairman will help provide a strong leadership to the Ingersoll Rand public company Board in India. Over the years, Ingersoll Rand has built a solid foundation in India with an endeavour to create markets “In India; For India; By India”. The organization has built a strong India leadership team and is successfully delivering on products, services and solutions to customers locally.

Amar’s appointment to the India Board as the Chairman is a step further to reinstate Ingersoll Rand’s commitment to building a robust line of local leadership in India.

Praj partners with leading OMCs to set up 2G Bioethanol plants Pune, India: Praj has announced that it has entered into a binding agreement for cost sharing with Indian Oil Corporation Limited (IOCL) to set up one plant each at Panipat, Haryana and Dahej, Gujarat. These 2nd Generation (2G) bio-ethanol plants will have capacity to produce 100 Kilo litres of ethanol per day.

This is a progress milestone as per MoU signed earlier this year wherein IOCL selected Praj as its technology partner for setting up multiple 2G bio-ethanol plants based on its indigenously developed technology.

Additionally, now Bharat Petroleum Corporation Limited (BPCL) has also selected Praj, as technology partner for setting up one 2G bioethanol plant in the state of Orissa having the capacity of 100 Kilo litres of ethanol per day. Both parties entered into MoU to this effect on 7th December 2016. Project timelines and capital outlay estimations are under finalisation.These agreements were executed on the side-lines of recently concluded PETROTECH 2016, held in New Delhi in the 10 • December 2016

Cologne, Germany - Specialty chemicals company LANXESS has received several accolades from the international investors’ initiative, the Carbon Disclosure Project (CDP). In this year’s evaluation, the company received an “A” score and will be listed with immediate effect as one of 193 companies around the world in the CDP’s “Climate A List.” LANXESS is thus among the top 9 percent of the more than 2,100 companies that took part in the initiative. An “A” score is given to companies that particularly distinguish themselves with regard to the transparency and completeness of their reporting and to their actual climate protection activities.

Furthermore, Lanxess was named “Sector Leader” in the Energy & Materials industry and is thus among the top 11 percent of companies in the Germany, Austria and Switzerland region. In an index comparison, the specialty chemicals company was rated among the top 4 percent of MDAX companies as an “Index Leader.”

Lanxess also improved the most among all participating German companies compared with the previous year. The company was therefore additionally named “Best Improver Germany.” Lanxess Board of Management member Hubert Fink accepted the awards on behalf of the company: “We are pleased that the CDP has honoured our transparent communication and our commitment. As an internationally operating chemical company, we are conscious of our responsibility in the area of climate protection. The good results strengthen our resolve to further consistently implement our climate protection strategy.”

The CDP particularly honoured the specialty chemicals company’s transparency and achievements in the following areas: climate strategy, risk assessment, actual reduction in greenhouse gas intensity, and handling of indirect emissions, for example through CO2 emissions into the supply chain (Scope 3 emissions).

Lanxess voluntarily established new climate goals at the beginning of the year. By 2025 the company wants to reduce greenhouse gas emissions by 25 percent compared with 2015. Previously, LANXESS had already reduced its greenhouse gas emissions by around 17 percent between 2010 and 2015 and thus met its climate targets for the year 2015.

Chemical Engineering World

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18/11/2016 10:20

CEW Press Release Ingersoll Rand Celebrates Two-Year Anniversary of Its Global Climate Commitment

TRUMPF and Siemens are driving the Industrialization of Additive Manufacturing

New Delhi, India: In the second year of its global Climate Commitment, Ingersoll Rand (NYSE:IR), a world leader in creating comfortable, sustainable and efficient environments, continues to significantly reduce the greenhouse gas (GHG) emissions of its products and operations, while also convening industry leaders to develop long-term solutions aimed at solving global climate challenges.

Munich, Germany: Laser system manufacturer TRUMPF and engineering technology leader Siemens has announced a new par tnership to help industrialize laser metal fusion technology and make the additive manufacturing process for metal par ts an integral par t of the production process.

Since announcing the commitment in 2014, it has led to the avoidance of approximately 2 million metric tons of CO2e globally, which is the equivalent of avoiding annual CO2 emissions from energy used in more than 270,000 homes or more than 2.1 billion pounds of coal burned.

“Announcing our commitment to increase energy efficiency and reduce the GHG emissions related to our operations and products was a major milestone for Ingersoll Rand,” said Paul Camuti, senior vice president of innovation and chief technology officer of Ingersoll Rand. “Our progress to date proves we have the expertise to meet our targets while simultaneously providing innovative and sustainable products to our customers and helping them achieve their own sustainability goals.”

As part of the Climate Commitment Ingersoll Rand launched EcoWise™, a portfolio of products designed to lower environmental impact with next generation, low-global war ming potential refrigerants and high-efficiency operation. The company has introduced six products under the EcoWise label, including the Series R RTWD chiller in – launched in November – used for commercial buildings and industrial applications.

Other successful commitment-led initiatives include the design and implementation of a proprietary tool to measure emissions reductions against GHG-related targets across its product portfolio and employee-led programs to identify facility upgrades and integrate sustainability modules within the product design process.

“We play a critical role in solving some of the world’s most serious climate challenges, including the projected 37 percent growth in world energy demand and working to keep the global rise in temperature below 2 degrees Celsius,” said Gary Michel, senior vice president and president of Residential Heating, Ventilation and Air Conditioning and Supply. “Our employees and customers expect us to help meet these challenges and that is exactly what we are doing.”

This commitment is another way Ingersoll Rand is helping to solve some of the world’s most pressing challenges – including the unsustainable demand for energy resources and its impact on the environment.

It benefits customers and the climate by creating more sustainable product choices for customers, improving our operating footprint globally, and continuing to develop lower GHG emissions options.

12 • December 2016

The two companies – who announced their par tnership at the form next trade fair in Frankfur t – are pooling their strengths and working together to develop a software solution for the design and preparation of 3D printed metal par ts. The aim is to integrate and streamline the entire powder-bed-based laser metal fusion (LMF) process for TRUMPF printing machines into Siemens NX™ software.

The comprehensive offer ing will address par t design a n d e n g i n e e r i n g fo r a d d i t i ve m a n u fa c t u r i n g a s w e l l a s 3D pr int preparation with integrated TRUMPF build p r o c e s s o r t e c h n o l o g y.

“Our combined solution will offer customers a high degree of process reliability thanks to its use of smar t product models through all phases of the process,” said Tony Hemmelgarn, CEO and President, Siemens PLM Software. “There will be no need for data conversion because the tools for design, simulation, 3D printing and NC programming of metal par ts are integrated into one system.”

“These are decisive factors in making additive manufacturing a r e a l i s t i c p r o p o s i t i o n fo r i n d u s t r i a l a p p l i c a t i o n s,” a d d s Peter Leibinger, Head of the TRUMPF Laser Technology/ Electronics Division. “Our partnership will result in an optimum interaction between machine and software so c u s t o m e r s c a n m ove fo r wa r d w i t h d e s i g n s o p t i m i ze d fo r additive manufactur ing.”

The solution will integrate the recently announced NX software technology for additive manufacturing with the TRUMPF build processor and be sold with TRUMPF TruPrint Laser Metal Fusion printers.

The new software offers a standardized user interface across the end-to-end additive manufacturing process. It addresses the entire digital process chain in a single, integrated associative software environment, eliminating the need to use separate standalone applications for par t design and data preparation.

This new software package, TruTops Print with NX, brings all the necessary functions together into one new solution for the additive manufacturing of laser metal fusion parts with TRUMPF printing machines.

Chemical Engineering World

CEW Press Release Siemens and Stratasys Partner to Incorporate Additive Manufacturing into Volume Production Munich, Germany: Stratasys Ltd and Siemens have announced a for mal par tnership to integrate Siemens’ Digital Factor y solutions with Stratasys’ additive manufacturing solutions.

The partnership is intended to lay the foundation for the two companies to fulfill their shared vision of incorporating additive manufacturing into the traditional manufacturing workflow, helping it to become a universally recognized production practice which can benefit multiple industries, including aerospace, automotive, transportation, energy and industrial tooling. This announcement also builds on Siemens’ recently announced end-to-end solution integrating digital design, simulation and data management with conventional and additive manufacturing.

“With our complete 3D printing ecosystem of customer applications, hardware and software platfor ms, advanced material offerings and consulting services, Stratasys is uniquely positioned to help manufacturers leverage 3D pr inting to transform their business models,” said Dan Yalon, Executive Vice President, Products, Stratasys. “Stratasys is excited to formalize our partnership with Siemens, and views it as a major catalyst for the industrialization of additive manufacturing.

Together, our companies are joining forces to create a cohesive, best-of-breed technology foundation that enables large-scale manufacturers to enjoy the benefits of additive manufacturing in traditional production environments. We believe that the impact on production practices will begin sooner rather than later with the aerospace, automotive and factory tooling industries expected to benefit first.”

Siemens and Stratasys have been collaborating on multiple projects including the direct link from Siemens’ NX™ software for CAD/CAM/CAE to Stratasys’ GrabCAD Print platform – enabling a seamless design-to-3D print workflow – and the recently previewed Stratasys Robotic Composite 3D Demonstrator that incorporates Siemens’ product lifecycle management (PLM) software and its motion control and CNC automation technologies, to produce strong, lightweight performance parts.

Stratasys and Siemens are showcasing their next generation additive manufacturing solutions at the formnext 2016 exhibition in Frankfurt. Stratasys’ Robotic Composite 3D Demonstrator is being featured in a unique virtual 3D printing experience at the Stratasys booth, Hall 3.1, Stand H40. In addition, Siemens is demonstrating its end-to-end additive manufacturing software solution along with its scalable hardware platform for motion control and relevant manufacturing processes in Hall 3.1, Stand J20.

“Siemens is enthusiastic about this partnership with Stratasys and the oppor tunity to help our customers adopt a new manufactur ing mindset that we believe will result in better products produced more economically and delivered m o r e e f f i c i e n t l y,” s a i d Z v i F e u e r, S V P M a n u f a c t u r i n g E n g i n e e r i n g S o f t wa r e, S i e m e n s P L M S o f t wa r e. “ We a r e committed to the industrialization of additive manufacturing with all of its unique advantages, including complex par t geometries, on-demand production and mass customization.

This relationship helps set the course for continued innovation and leadership through the tight integration of our product lines and through collaboration on comprehensive additive manufactur ing solutions.”

At the core of the 3D Demonstrator is Stratasys’ advanced FDM (Fused Deposition Modelling) Additive Manufacturing technology synchronized to complex multi-axis motion. It features Stratasys’ extensible and scalable multi-operation architecture that provides the flexibility to integrate subtractive manufacturing, inline inspection and verification, and product f i n i s h i n g . S t r a t a s y s e n g i n e e r e d m a t e r i a l s a r e e m p l oye d t o p r o d u c e s t r u c t u r e s t h a t a r e o p t i m i ze d fo r we i g h t a n d performance. The result is a new hybrid manufacturing approach that is unconstrained by the traditional limitations of composite layup and the layer-by-layer limitations and suppor t material requirements of traditional 3D printing.

“Siemens’ capability and commitment to the digital enterprise vision, along with its close collaboration with Stratasys, can help many industries realize shorter time-to-market, achieve flexibility in operations and improve efficiency in workflows through horizontal (machine-to-machine) and vertical (plant and top-floor to factory floor) integration,” added Arun Jain, VP of Motion Control, Siemens Digital Factory US. While additive manufacturing technology has made great strides over the past years, additional criteria are required for it to take its place in volume production environments and become as commonplace as CNC. Ideally, additive manufacturing solutions should deliver robust, repeatable and reliable operational performance with predictable properties across a broad portfolio of materials that are certifiable for specific applications and that are driven by a seamless, digital integration from design to production.

Together, Stratasys and Siemens plan to address these challenges.

20 • December 2016

The new workflow for the Stratasys Robotic Composite 3D Demonstrator begins with Siemens’ NX software. NX enables designers to create parts to be produced on the system, simulate and evaluate the design for manufacturability, and generate and send all the manufacturing instructions for part production.

Throughout the manufacturing process, performance is controlled and communicated directly to the manufacturing operations management systems. The result is a seamless CAD-to-product workflow that streamlines production and ensures end-to-end traceability and part quality.

The motion control for the Stratasys Robotic Composite 3D Demonstrator is driven by the Siemens’ Sinumerik 840D SL CNC. The open architecture of Sinumerik control combines the strengths of Siemens’ NC with flexible robot kinematics. The integration with Stratasys’ extrusion control technologies to execute manufacturing instructions from NX CAM, results in a high degree of freedom for robotic FDM extrusion.

Chemical Engineering World

CEW Industry News Glenmark to Enrich R&D Activity with focus on Specialty Products for Growth

AkzoNobel acquires BASF India's industrial coatings business

Mumbai, India: As par t of its growth strategy for future, Glenmark Pharmaceuticals has announced that it will focus on differentiated, specialty and innovative products especially in the three fundamental therapeutic areas of oncology, dermatology and respiratory. As per the strategic blueprint to make the transition into an innovation led global pharmaceutical organisation, the company is targeting 30 per cent of total revenues from specialty and innovation segments in the next 10 years.

Mumbai, India: AkzoNobel India has announced that it has acquired the industrial coatings business of BASF India Ltd for ` 11.17 crores. This follows the closure of global acquisition of BASF's industrial coatings business by AkzoNobel, which was first announced in February this year. “The industrial coating business of the company would stand transferred to AkzoNobel India Ltd with effect from December 14, 2016. The company has acknowledged an cumulative sum of ` 11.17 crores from AkzoNobel India toward the consideration for the sale of the said business,” stated BASF India in a statement.

“Since 2000, it has been the primary objective of Glenmark to facilitate the company's evolution from a generics organisation to a fully integrated, globally commercialised pharmaceutical company with innovative products. Over the last 16 years, we have created significant shareholder value and this has been possible because of our continuous investments in R&D. As we prepare for the next wave of growth, we have built strong capabilities that uniquely positions us to differentiate our product offerings primarily in our core therapy areas and will invest across the value chain from generics to new molecular entities in our effor t to build a truly global pharmaceutical organisation,” stated Glenn Saldanha, chairman & managing director, Glenmark Pharmaceuticals.

The strategic blueprint also outlines aggressive plans to increase Glenmark’s presence worldwide by strengthening focus on complex generics including injectables, expanding its manufacturing footprint (growing from two formulation facilities to 17).

“Building from our enviably strong foundation has given us operational and financial flexibility that allows us to execute on our ambitious plans, we expect the next wave of our growth to be as impressive as our first,” said Saldanha.

The blueprint conveys the company’s greater business alignment expanding generics to prioritising research and development efforts in three key therapeutic areas - oncology, respiratory and dermatology. The innovative oncology pipeline, with candidates targeting multiple tumours, is the top priority with the greater promise to deliver novel, first-in-class molecules and help Glenmark evolve into a fully commercialised, innovation led pharmaceutical company.

With end-to-end capabilities from R&D to full scale manufacturing (both in small molecules & novel biologics), the company enjoys a strong position in IP leadership and global footprint for rapid mar ket penetration. These intellectual assets are already producing results for Glenmark with a specialty and new molecular entity (NME) pipeline consisting of nine assets in the three core areas, four of which are in clinical or late pre-clinical development.

The company expects to launch its specialty business in the US with its first FDA NDA approval in respiratory within 3-5 years.

22 • December 2016

BASF's global industrial coatings business supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport.

Globally, the transaction comprises relevant technologies, patents and trademarks, as well as two manufacturing plants in the UK and South Africa. Approximately 400 employees from BASF's industrial coatings business join AkzoNobel, bringing expertise to innovate and serve an expanded customer base worldwide.

MoUs for 5 2G ethanol plants signed at Pe t r o t e c h 2 0 1 6 New Delhi, India: Agreements for setting up world-scale refinerycum-petrochemicals complex in Maharashtra and 5 second generation (2G) ethanol plants (in various parts of the country) were signed at Petrotech 2016 event in New Delhi.

Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) signed a conglomerate agreement to carry out pre-project activities for setting up India’s biggest oil refinery-cum-petrochemical complex with 60 million metric tonne per annum (MMTPA) capacity along the western Coast of the country in Maharashtra.

Praj Industries Ltd signed MoUs with IOCL and BPCL for setting 3 second generation (2G) biomass-to-ethanol plants (two for IOCL and one for BPCL. IOCL is planning to set up ligno-cellulosic ethanol plants at Dahej (Gujarat) and Panipat (Haryana) each having capacity of 100 kilo litre (KL) per day.

Similarly, BPCL is setting-up 2G biomass ethanol bio-refinery in Bargarh (Odisha) with a capacity to process 400 tonnes per day of biomass (equivalent to 100 KL per day of ethanol generation capacity). The plant is expected to be commissioned in December 2018.

Institute of Chemical Technology (ICT), Mumbai, has also signed MoUs with BPCL and HPCL for technology transfer for setting up of 2G biomass ethanol bio-refineries at Bina (MP) and Bhatinda (Punjab) respectively.

Chemical Engineering World

CEW Industry News Praj to Collaborate With IOCL & BPCL to Set Up 2G Bio-Ethanol Plants Mumbai, India: Praj Industries Ltd has announced that it will partner with Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) to set up second generation (2G) bioethanol plants in the country. The company signed agreements to this effect with IOCL and BPCL on the side-lines of recently concluded Petrotech 2016 conference in New Delhi.

With IOCL, Praj has entered into a binding agreement for cost sharing to set up one 2G bio-ethanol plant each at Panipat (Haryana) and Dahej (Gujarat). These plants will have capacity to produce 100 kilo litres of ethanol per day. This is a growth milestone as per MoU signed earlier this year wherein IOCL selected Praj as its technology partner for setting up multiple 2G bio-ethanol plants based on its indigenously developed technology.

Likewise, BPCL has selected Praj as technology partner for setting up one 2G bio-ethanol plant in Orissa having the capacity of 100 kilo litres of ethanol per day. Project timelines and capital outlay estimations are under finalisation.

Second generation bio-ethanol technology uses (agri-residue) as feedstock. Farming community is expected to be benefited from additional revenues from agri-waste. Second generation bio-ethanol also helps condense dependency on the imported crude oil, thus saving foreign exchange. This technology will act as a socio-economic and environmental enabler.

“We are delighted with the progress of setting up of 2G ethanol projects by the OMCs. Praj is equally committed to partner with OMCs in their accomplishment of completing project targets. This is in line with Government of India’s vision of increased contribution of renewables in India’s energy portfolio,” added Pramod Chaudhari, Executive Chairman, Praj Industries Ltd.

Implementation of Modern Technology Must; To Accelerate Indian Textile Industry's Growth: ITME Mumbai, India: With Indian textile industry aiming to double its exports and turnover in next five years, the textile machinery industry is expected to witness a robust demand. “For textile industry to achieve this growth, it has to rely on modern technology and engineering. Thus, we anticipate a strong demand for textile machinery and accessories, especially with foreign textile brands expanding their presence in the country,” said Sanjiv Lathia, chairman, India International Textile Machinery Exhibitions (ITME) Society.

The textile sector is one of the largest contributions to India’s exports with approximately 11 per cent of total exports. The country’s overall textile exports during FY 2015-2016 stood at $ 40 billion and the industry is expected to reach $ 223 billion by 2021.

“The textile industry is the second largest employer in India after agriculture it is utmost necessary that Indian textile machine manufacturing industry has to strengthen its base for quality output 24 • December 2016

and efficiency through innovation and best technologies available anywhere in the world to be accepted globally. India is now developing in manifold in most of the sectors especially in the spinning machinery manufacturing segments,” Lathia added.

Dow to Tap Power Plants for New Wastewater Treatment Technology in India Mumbai, India: Dow Water & Process Solutions (DWPS) has announced that it is planning to tap the power sector for its recently launched wastewater management technology, Fortilife. “Currently, we are focusing on textiles (where we have done significant amount of work with this technology). Going forward, we are now looking at power, which is one of the big segments that have to adhere to stringent wastewater treatment norms. Eventually, we plan to move into other sectors,” said Sharad Gollerkeri, Regional Commercial Manager, Water & Process Solutions, Dow Chemical International Pvt Ltd (Dow India).

“We see significant economic benefits for our customers with Fortilife.

We started with textile industry and are now targeting the power sector and other water-intensive industries where wastewater recycling is needed,” added Gollerkeri.

India is facing severe water shortage challenge, with per capita availability going down continuously, forcing the government to put in place stringent effluent treatment norms for industrial users. This has propelled the demand for wastewater treatment technologies in the country. “We see great potential in India as there are unmet needs across multiple industries for wastewater treatment applications. The government has also brought in policies which are crucial for the growth of water treatment industry. We are bringing to the market a range of innovative products, which are specifically designed to meet the requirements of Indian customers,” said Yochai Gafni, Global Business Director (Reverse Osmosis), The Dow Chemical Company.

Many industries are also seeing economic benefits of incorporating eco-friendly technologies as they realise that wastewater can be their low-cost and most reliable source of water. “With the government enforcing environmental laws stringently, companies are compelled to embrace technology that helps them adhere to the prescribed rules of discharge. While this (regulatory compliance) is driving the wastewater treatment technology market, many companies are also looking to bring down their manufacturing cost by adopting solutions, offered by companies like Dow, to use recycled water in their facilities. That (economic benefits) will be the real driver for the adoption of wastewater treatment solutions in the future,” said Alan Chan, commercial director, Pacific, Dow Water & Process Solutions.

Speaking about growth plans for India, Gafni, said, “We have seen significant growth in India, and there is a potential to grow faster because, we believe, there will be more policy interventions to ensure that clean water is available to more areas. This will trigger demand for wastewater treatment technologies and, thus, we see exponential growth for our business in the country.”

Chemical Engineering World

CEW Industry News L&T Introduces High-Tech Spool Base Facilities for Subsea Project In Chennai Chennai, India: L&T Hydrocarbon Engineering Ltd has announced that it has unveiled high-tech spool base facilities at L&T’s fabrication facility at Kattupalli in Chennai. These facilities are being employed to execute a lump sum turnkey (LSTK) contract that has been bagged from ONGC for a subsea installation by a consortium of J Ray McDermott SA, Berlian McDermott and L&T Hydrocarbon Engineering Ltd in international competitive bidding.

The contract is part of ONGC’s integrated development of Deep Water Vashishta & S1 Fields on India’s east coast. It is their first project, involving three subsea wells in depths ranging from 400 m to 700 m involving daisy chain field architecture with subsea tie back to onshore terminal at Odalaveru through a dual 14-inch pipeline.

“We are proud to be involved in this project that is being done for the first time in India. It is also for the first time that such high-end technology required for deep water operations is being transferred and embedded in India through our consor tium par tners, McDermott. Apar t from seeking more sustainable deployment of this high-end technology, very positive fallout of this project is the degree of local skill development which augurs very well for the future,” said Subramanian Sarma, CEO and managing director, L&T Hydrocarbon Engineering.

“It is indeed a proud moment from an Indian perspective and wonderful to see what was conceptualised in 2011 is being realised today. For our deep water campaign, this is a very significant step because we are going towards a gas-based economy for which it was very important to prepare ourselves to the future challenges. It is also commendable that Kattupalli has geared itself to adopt this new technology and I am delighted with the pace and progress already achieved,” stated T K Sengupta, director - offshore, ONGC. He expressed confidence in the ability of the consor tium to deliver such a complicated project on schedule and commence production by mid-2017 and achieve full capacity of 2 billion cubic meters of gas per annum by end 2017.

Sanofi India to Collaborate with NIPER Kolkata for Pharma Education and R&D Kolkata, India: Sanofi India has announced that it has signed a memorandum of understanding with National Institute of Pharmaceutical Education and Research (NIPER) Kolkata to promote academic excellence and research. Two sides will be co-operating in the areas of pharmaceuticals and consumer healthcare products to accommodate to the current and future needs of the pharmaceutical industry.

28 • December 2016

Through this initiative, Sanofi India will participate in revision or formulation of curriculum for a post-graduate (MS) & Ph D programme, and undertake collaborative research activities in identified areas.

"The era of academic-industry collaboration to address the mammoth task of capacity building to meet our healthcare challenges has well and truly begun. Only a well-equipped and trained workforce can face future challenges and cater to the vast healthcare needs of the nation. We are proud to associate with NIPER Kolkata in this collaborative exercise to hone the students' skill-sets, and empower them for future, based on our practical knowledge and research experience," said Dr Shailesh Ayyangar, managing director, Sanofi India Ltd. As per the MoU, the key deliverables for Sanofi India will be to assist NIPER Kolkata foster students with updated knowledge, a n d w h o a r e r e a d y fo r t h e p h a r m a c e u t i c a l i n d u s t r y. T h e collaboration will focus in the areas of NIPER Kolkata's expertise such as novel small molecules for anti-diabetics & drug resistant tuberculosis (TB), API by synthetic biology & cell factory, phytopharmaceuticals, etc.

Auto and FMCG Sectors Driving Demand for Propylene in India: TechSci Research Report Mumbai, India: The mar ket of propylene in India is anticipated to grow at a CAGR of over 8 per cent dur ing 2016-2025 as demand picks up from automotive, FMCG and other industr ial sectors, as per TechSci Research repor t.

India accounted for a share of around 10 per cent in the global propylene mar ket in 2015.

“In India, propylene is being used in numerous applications across various end use industries such as automotive & auto components, FMCG, paints & coatings, wires & cables, electronic & electrical appliances, home fur nishings & bedding, etc.

Growing demand from numerous end use industries, increasing industrialization and strong growth in automotive and FMCG sectors are some of the major factors expected to aid the country’s propylene market during 2016-2025,” said TechSci Research in a press release.

On the basis of application, India propylene market has been segmented into five broad categories, namely, polypropylene, propylene oxide, acrylonitrile, cumene & others. Among these categories, polypropylene dominated the Indian market of propylene in 2015, and the same trend is expected to continue over the next five years as well. Propylene serves as a major raw material in the production of polypropylene. It undergoes addition polymer isation to produce polypropylene. Hence, growing demand for polypropylene in India is expected to increases the consumption propylene in the country during forecast period.

Chemical Engineering World

CEW Industry News Reliance Industries collaborates with GE to foray into Industrial IoT space

Clariant to tap Indian pharma sector with packaging and anti-counterfeit solutions

Mumbai, India: As a par t of its strategy to foray into industrial Internet of Things (IIoT), Reliance Industries Limited (RIL) has announced that it has signed a global par tnership agreement with GE as per which RIL will use GE’s Predix, the operating s y s t e m fo r t h e i n d u s t r i a l I n t e r n e t , t o p r ov i d e i n d u s t r i a l IoT solutions to customers in oil & gas, fer tiliser, power, healthcare, telecom and other industries. The agreement was signed in the presence of Jeff Immelt, chair man and CEO, GE and Mukesh Ambani, Chair man And Managing Director, Reliance Industries Limited.

Mumbai, India: To tackle the challenge of forged products, Clariant has announced that it team up with SICPA - a provider of secured identification, traceability and authentication solutions and services - to develop a plastic-based anti-counterfeiting system, Plastiward, for pharmaceutical packaging and medical devices. This in-plastic system offers a unique end-to-end solution integrating exclusive, proprietary security features from SICPA into polymer compounds or concentrates (known as masterbatches) from Clariant.

GE will provide its Predix cloud offering, industrial Internet applications and data science exper tise. RIL will develop solutions on Predix as an Independent Software Vendor (ISV), bringing to bear its over 30 years of data, process and operational ex p e r t i s e. R e l i a n c e I n d u s t r i e s w i l l a l s o o f fe r n a t i o n w i d e connectivity infrastructure to customers through a 4G network powered by Jio. GE will offer the security, availability and monitoring aspects of the platform to RIL and its customers. The potential for other revenue streams includes telecom, healthcare and agriculture. “ I n d i a n e e d s t o ra p i d l y m ove t o t h e n ex t l eve l o f s m a r t manufactur ing which leverages big data, algor ithms, and sensor technology. The presence of ubiquitous high bandwidth connectivity and cloud services enabled by Jio will be a key enabler for the rapid growth of IIoT within India. Indians have been in the forefront of creating smart and innovative solutions in a number of fields. It’s time we brought smart manufacturing capability into India by providing value added IIoT solutions for the industr y that will enable India’s economic growth,” commented Mukesh Ambani, chairman and managing director, Reliance Industries Ltd. The benefits to customers include driving operational efficiencies, profitability and new revenue streams by making use of data and analytics. A one per cent productivity gain for companies creates approximately $ 250 billion value over 15 years, across these key energy and infrastructure industries.

The digital market is growing at a fast pace with IIoT contributing the highest degree of growth at over 10 per cent. According to Gartner, there exists a market opportunity of over $ 25 billion by 2022 for IIoT solutions across the four key industries of oil & gas, power, healthcare and transportation.

Jeff Immelt, chairman and CEO of GE, added, “India’s potential in driving the migration to digital is well appreciated. The partnership with Reliance Industries will shape the future of the Industrial Internet not just in India but globally. The possibilities that it opens to develop solutions on our Predix platform for the industrial sector are endless.”

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"Plastiward, besides being a packaging component, also forms part of a system that enables real-time monitoring on global, regional or local levels through the data uploaded on a SICPA platform. This provides pharmaceutical companies to actively track their products when in motion, ie from the factory to the destination. Plastiward can add another element of risk reduction and protection, providing a robust, cost-effective, end-to-end, in-plastic system for protecting brands worldwide," explained Steve Duckworth, Head of Global Segment Healthcare Polymer Solutions, Clariant.

Yann Ischi of SICPA Yann Ischi of SICPA Counterfeiting is on the rise around the globe. Clearly, counterfeit medical devices pose a significant liability to their manufacturers and a risk of injury, permanent disability, or even death to both patients and healthcare providers. With the Government of India taking steps to encourage manufacturing of medical devices in the country, through the proposed medical devices parks, the demand for technology to combat counterfeiting is anticipated to grow manifold.

“There is a definite trend for more drug delivery devices (pens, inhalers, pre-filled syringes) to be developed and produced in India, rather than abroad. This means that the risk of counterfeits of Indian brands will continue to increase, even if perhaps it is not so visible. While Indian companies are currently busy implementing ‘track and trace’ to conform to legislation in the US and Europe, this is only a partial solution, is expensive to implement, and can be defeated. However, Plastiward adds a level of security, at the closest point to the drug,” added Yann Ischi, Director of New Channels and Partnerships, SICPA. As part of the growth plans for its healthcare polymer solutions business in the country, Clariant is working on developing products for Indian customers to address their specific applications and challenges.

"Using our dedicated resources, we want to penetrate the Indian market in the same way as we have in North America, Asia and Europe. We are convinced that Indian pharmaceutical companies will understand the strength of our knowledge, and how it helps them in their goals to meet new and tougher regulations, but also give new ideas to support Indian creativity," added Duckworth.

Chemical Engineering World

CEW Technology News Agilent Technologies and Transcriptic Collaborate to Automate Discovery Biology SANTA CLARA, Calif: Agilent Technologies Inc. and Transcriptic Inc. have announced that they have agreed to par tner their technologies to provide a solution for convenient, broad scale synthetic and discovery biology research.

Agilent continues its strong program of fostering innovation using the Agilent portfolio by collaborating with rising companies such as Transcriptic to develop novel synthetic biology solutions.

Transcriptic’s automated discovery biology platform enables scalable life science research through a convenient and simple web interface. Biologists who use the platform can control their science and generate data remotely via the cloud.

Transcriptic will add multiple Agilent Genomics product lines for mutagenesis and cloning to the protocol library within the Transcriptic robotic cloud laboratory. The first in the series – QuikChange Lightning – will accelerate the generation of multiple mutants for large protein function projects. Providing cutting-edge Agilent bio reagents in a robotic laboratory setting will allow a global customer base to automate and optimize workflows for rapid and efficient research discoveries.

“We’re excited to combine our genome engineer ing tools w i t h a u t o m a t e d ex p e r i m e n t a t i o n ,” s a i d H e r m a n Ve r r e l s t , Agilent vice president and general manager of the company’s Genomics Solutions Division and Clinical Applications Division.

“Transcriptic’s services are validated, scalable, and accessible from anywhere in the world, which will enhance the market for our industry-leading reagents.”

“Agilent QuikChange site-directed mutagenesis kits have an unsurpassed reputation for being reliable and easy to use,” said Yvonne Linney, chief operating officer at Transcriptic. “By bringing these products to Transcriptic, we will make it extremely easy for customers to scale up their research, using many mutants to produce very large datasets for exploring protein function.”

FARO® Opens New Office in Australia Singapore– FARO Technologies has announced that it has opened its new office in Brisbane, Australia.

This move is part of FARO’s long-term growth plan and to increase its footprint in Asia Pacific.

FARO’s customer base in Australia and New Zealand is growing. As such, this expansion is a natural progression - in line with FARO’s commitment to stay close to the customers in order to provide stronger and faster support. Furthermore, a direct presence allows FARO to be up to date with the changing requirements of the customers, facilitating the development of new and relevant 34 • December 2016

solutions to address the market.

“The Brisbane office is primarily a sales office, supported by the Asia Headquarters in Singapore for non-sales support such as financial, operation, marketing and logistics. With a team of experienced and technically sound personnel, FARO Australia is able to provide pre-sales consultation, technical support, product support and sales support directly to the customers,” said Mr Quah Beng Chieh, Head of Marketing, FARO Asia Pacific.

With the establishment of FARO Australia, the company hopes to gain stronger foothold into its core industries such as automotive, metalworking and fabrication, heavy machineries, architectures and construction, BIM/CIM, public safety forensics, etc. “FARO recognizes the prominence of the mining industry in Australia,” Mr Quah elaborated. “We have developed a tailored market approach to ensure effective penetration into this market.”

hte Deploys Fully Automated Hydrocracking C a t a l y s t Te s t i n g Wo r k f l o w a t C h e v ro n Richmond Technology Center Heidelberg, Germany: hte – the high throughput experimentation company has announced that it has supplied Chevron Energy Technology Company (ETC) with a workflow solution to increase the efficiency and speed of hydrocracking catalyst research.

After several years of successful research collaboration, Chevron ETC purchased a hydrocracking catalyst testing workflow from hte for the efficient combination of key steps in R&D. The fully automated lab 4.0 solution comprises the latest generation of hte’s X4500 16-fold hydrocracking catalyst testing system as well as accessories for reactor tube filling, elaborate analytical equipment and sample handling tools. The applied software s olution my hte4™ merges data from all hi g h th r o u g h p u t processes in the laboratory, from Design of Experiments (DoE), through reaction, sampling and analysis, right up to data processing and fast reporting. hte’s technology was delivered and implemented at Chevron’s Richmond Technology Center in California in early 2016. “We have been operating this research solution for over nine months now and have seen excellent results. The data quality matches our pilot data,” said Bob Saxton, Manager of the Catalysis division at Chevron ETC. “To reduce our R&D costs and increase efficiency at the same time, we opted for downscaling. After many years of close collaboration, we selected hte to modernize our laboratory,” he added.

“The relationship between Chevron and hte has grown stronger over the years. I am delighted that the cooperation with our key customer Chevron ETC has now resulted in the selection of our state-of-the-art hydrocracking workflow,” commented Wolfram Stichert, CEO at hte GmbH. Chemical Engineering World

CEW Technology News Elite Control Systems Awarded Contract by ScottishPower Renewables Livingston, Scotland: Elite Control Systems has announced that it has been awarded a second contract by ScottishPower Renewables. The agreement requires Elite Control Systems to continue to supply rapid response support services for the 29 onshore wind systems that ScottishPower Renewables operates across Scotland.

ScottishPower Renewables, which has invested significantly in industry-leading automation and control system technology to operate its wind turbines, looks to Elite Control Systems to ensure that the automated process c o n t ro l s y s t e m s it u se s a re f u n ct io n in g p ro per ly, around the clock. To achieve this, Elite Control Systems’ dedicated Suppor t Ser vices stands ready to respond to control system eve n t s t h a t c o uld d isr u p t o p e ra t io n .

“Elite will respond immediately to any type of control system issue, from PLC failures to hardware or network communications problems,” said Juan Carlos Di Bella, Engineering Manager for Elite Control Systems. “Given the high profile and sheer scale of the wind farm network, it’s extremely satisfying that ScottishPower Renewables has renewed its existing suppor t contract with us.

The confidence they have in our expertise and responsiveness is clear. They can rest assured that we are only a phone call away, ready to provide them with immediate suppor t for these systems that are so critical to the entire ScottishPower Renewables network.”

Elite Control Systems has been providing ongoing rapid r e s p o n s e c o n t r o l s u p p o r t s e r v i c e s t o S c o t t i s h Pow e r Renewables since 2015 when the two companies entered into the initial agreement. However, their wor king relationship goes back to 2013. Since then, Elite Control Systems has provided the company with wind turbine networ king gear upgrades and conducted an extensive audit of its current control infrastr ucture.

I n a d d i t i o n t o S c o t t i s h Powe r R e n ewa bl e s, E l i t e C o n t r o l Systems’ Support Services division provides similar support to Amazon UK, Diageo Distilling, Glenmorangie Ltd and INEOS. The company’s engineering team is fully briefed on ever y customer’s needs, and is on-hand around the clock. Whether a customer has a comprehensive 24/7 support plan in place or is on an ad hoc call-out basis, Elite engineers are ready to respond so that production is up and running as quickly as possible.

36 • December 2016

The recent addition of Vibration Monitor ing and Profibus network health checks to its Suppor t Ser vices por tfolio is par ticularly meaningful because companies can now derive comprehensive suppor t, without going to the expense of creating extensive suppor t teams internally. Companies can access Elite’s engineering exper tise, as well as that of its par tners who are some of the world’s leading automation and process control manufacturers.

Elite also offers breakdown support for PLC, SCADA, IT systems and network infrastructure, including integrity testing. Its Support Services engineers also conduct system audits, health checks, minor modifications, and on–the-job training for clients’ employees.

A g i l e n t Te ch n o l o g i e s O p e n s F o l s o m Technology Center SANTA CLARA, Calif: Agilent Technologies Inc. has announced the opening of a new $14.7 million, 53,000 square-foot Technology Center in Folsom, California. The new building, which is adjacent to Agilent's existing facility at 91 Blue Ravine Road, will house approximately 60 additional staff.

The new facility includes a state-of-the-art customer applications laboratory and collaboration space, as well as facilities for providing the company’s ground breaking scientific consumables and supplies.

Agilent Technologies solutions are used by laboratories worldwide, involved in many areas from cancer research to testing the quality and safety of food, water and pharmaceuticals.

"I am extremely pleased to see the completion of this additional space,” said Henrik Ancher-Jensen, Agilent president of Order Fulfilment and Supply Chain. “This new facility expands Agilent’s capabilities for chromatography consumables and hardware, which are used in laboratories around the world and for critical health, safety and product quality decisions.”

In par ticular, the new Folsom facility will suppor t Agilent’s revolutionary new Intuvo 9000 GC system and consumables products. With the introduction of the Intuvo 9000 GC, Agilent has transformed gas chromatography – improving ease of use, lowering cost of ownership and boosting lab productivity without compromising performance.

“We have always looked to Agilent for innovations that will allow those of us in the analytical laboratory to become more productive, to become more efficient and to provide higher quality data,” said Johnny Mitchell, president of ESC Lab Sciences Corporation and Intuvo 9000 GC system customer. ESC Lab Sciences Corporation, based in Mt. Juliet, Tenn. is the largest, independent, privately held environmental laboratory in the United States, providing analytical testing for soil, water and air across a wide variety of programs.

Chemical Engineering World

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12/10/2014 1:41:53 PM

CEW Features Guest Column

Industrie 4.0 – Unleashing a Plethora of Opportunities for the Indian Manufacturing Sector The world’s manufacturing system is fast changing. Advanced manufacturing, composite materials, quantum engineering and robotics is emerging as the new face of industries globally. However, the question is whether India is capable of meeting this challenge? For one, it requires innovative new technologies to meet the level of efficiency and productivity required as seen globally. India needs to scale up its higher education and vocational training.

T

oday, ‘Smart production’ has become the norm in a world where intelligent ICT-based machines, systems and networks are capable of independently exchanging and responding to information to manage industrial production processes. This has paved way to a new technological age i.e. ‘‘INDUSTRIE 4.0’’, a term used to refer to the fourth industrial revolution that will be attained by the digitization of the manufacturing sector. This will involve embedded sensors in virtually all product components and manufacturing equipment, ubiquitous cyber physical systems, and analysis of all relevant data. In simpler terms; it has the capacity to dramatically improve efficiencies and outputs in the production process and throughout the supply chain.

Manufacturing processes will govern themselves with intelligent machines and devices that can take corrective action to avoid unscheduled breakdowns.

While manufacturing is the backbone of an economy, the level of digitisation and automation of manufacturing process differs from country to country. In India, manufacturing currently contributes around 17% to the GDP, which is just about one-third of the average of developed countries. However, it is poised to emerge as a high growth sector as its share to the Indian GDP is projected to increase to 25% by 2025, which is expected to unleash a plethora of opportunities.

40 • December 2016

Challenges India boasts of a manufacturing sector that is inherently capital and labour intensive and so it is always considered strong enough to absorb people. Around 58-60 million people are employed in the Indian manufacturing industry, representing about 12 percent of the country’s overall working population.

While cheap labour has been a key advantage for India for years, the level of technology percolation leaves a lot to be desired.

The world’s manufacturing system is fast changing. Advanced manufacturing, composite materials, quantum engineering and robotics is emerging as the new face of industries globally.

However, the question is whether India is capable of meeting this challenge?

For one, it requires innovative new technologies to meet the level of efficiency and productivity required as seen globally. Further, India needs to scale up its higher education and vocational training.

The Indian Government has embarked on a strategic initiative called ‘Make in India’ to reform the manufacturing industry in the country. With this roadmap laid out for the industrial sector, the concept of Industrie 4.0 could form a key part of the initiative. The government has tried to ease the formal requirements for the businesses in manufacturing sector

through various policies and initiatives.

But most of manufacturing organisations in India haven’t kept up with the advancements. For India to embrace the next industrial revolution, the biggest obstacle is to attract skilled talent.

India is a country providing a potentially huge market access. Also, there is the very appealing demographic dividend with youth representing approximately 20% of the global workforce by 2020.

There is a rising middle class, and India is expected to become the fifth largest consumer market in two decades. Within this context, any form of consumption, entrepreneurship, start-up or industry, can be viewed as a scaling opportunity.

Improving asset performance across industries the key One of the key pillars for smart manufacturing is asset performance. It is critical for India to be well positioned to integrate control and information in a real-time process control and transactional information management environment. Asset Performance seeks to migrate the industrial automation sector from reactive maintenance to predictive maintenance, by not only managing the asset itself but by managing its performance too.

A periodic daily, weekly, monthly or annual maintenance cycle can be supplemented by real time monitoring Chemical Engineering World

CEW Features of plant, which may flag an alarm that maintenance may be required in a couple of hours’ time for example. Looking at different data that can be collected from this asset, we can look at the profile of the asset to identify problems either with the asset or with the process.

Way ahead Although evolving steadily, when compared to global benchmarks of manufacturing’s contribution to GDP in advanced economies, it is evident that Indian manufacturing has massive untapped potential.

The lifecycle cost of an asset is roughly five to 15 times that of its original purchase cost, so it is necessary not only to manage the asset but to get the best performance from it. It can be shown that by managing asset performance, the cost of inventory holding can be reduced by between 20 and 50 percent, as well a 10 to 40 percent reduction in maintenance costs and a 30 to 50 percent reduction in total machine downtime.

The challenge lies in making India a global manufacturing hub, which involves competing with global standards, in terms of consistency in quality and efficiency while keeping price competitive. The solution lies in having more Automation with connected machines/process modules, connected machines/process modules to enterprise level software’s having with historization and analytic function. Manufacturing industry is undergoing tremendous change due to increasing automation and technology advancement towards intelligent manufacturing. There is a need to bring intelligence to the manufacturing operations, codify process expertise into the system using enabling technologies – termed as Industry 4.0 Intelligent Manufacturing.

As an information-centric platform, Asset Performance can be boosted by fitting secondary low cost wireless Industrial Internet of Things (IIoT) sensors acting together to provide additional data on top of existing ones (if we don’t have right sensor available) provided by e.g. primary wired sensors and actuators in order to deliver insightful informationcentric analytics.

Asset information management provides better insight and tracking around assets and their life cycle.

Remote services for machines reduce maintenance cost and optimize machine performance through connectivity.

Remote monitoring and optimisation encourages migration from reactive to predictive maintenance with analytics.

Avoiding unnecessary and costly maintenance while preserving the vital parts of a process based on its usage and environment is critical to the asset performance pillar. Being able to predict is therefore key. The objective is really to maximize operational up time through early detection, to minimize maintenance costs by reducing unnecessary maintenance, and to maximize productivity by improving decision making process response time.

42 • December 2016

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CEW Features Guest Column

Let us make India Industrie 4.0 READY The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per cent currently. India has become one of the most attractive destinations for investments in the manufacturing sector. Make in India drive has attracted huge investment opportunities, attracted by India’s market of more than a billion consumers and increasing purchasing power. Mr Modi showcased India as a business friendly destination to attract foreign businesses to invest and manufacture in the country.

S

mart manufacturing / Smart Factory as called in Industrie 4.0 calls for increasing connectedness and automation of devices. This examine the possibilities and opportunities arising through increasing connectedness on various levels-from the device and machine level , to the machine park level ( in production) or device groups ( customers’ use) to connected machines and products on a business process level. It has to go further in the customer usage phase of digitized and connected devices and products (in the B2B and B2C context) to enable the exchange of communications with providers’ own products during the customer usage phase and new “digital” services such as predictive maintenance. Thus the Project Management has to go from Concept to Commissioning (C-to-C).

All above will give Big Data which when affectively used will bring significant improvement in productivity, reduction in down time, quality product resulting in better RoI and thus profits which has two components of transforming the vast amount of data to useful information by making it transparent— Engineering projects for huge plants contain meanwhile big data to be managed and during operation of a plant big data is produced by the automation system that is of value.

In context of India also this is same but the challenges are enormous. Every device / machine has be smart i.e IP address to communicate with each other. With smart human machine interface (HIS), manpower has to be equally smart. Our brains are working out of India, perhaps not being acknowledged of their skills in India. Our industries have to therefore look on foreign companies which then become costly.

Growing population, ever increasing need of complying with global standards, the constant

44 • December 2016

need for improving operational excellence etc. are the factors constantly slowing the pace.

Data security is another factor. Though picture is slowly changing but still lot to be done.

After the announcement of Make in India, Digital India & Smart Cities by our PM, manufacturing sector has been assured of Government’s transparent policy and thus boost is seen in the six monthly closing results. Sectors like Automotive, F&B, and Pharmaceuticals sector have certainly started working on Industrie 4.0 but Small Manufacturing Enterprises (SME) are yet to look into this. Reason is very sound and clearInvestment and skilled manpower to handle this.

The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per cent currently. India has become one of the most attractive destinations for investments in the manufacturing sector.

Make in India drive has attracted huge investment opportunities, attracted by India’s market of more than a billion consumers and increasing purchasing power. In a bid to push the ‘Make in India’ initiative to the global level, Mr Narendra Modi, our Prime Minister, pitched India as a manufacturing destination at the World International Fair in Germany’s Hannover in 2015. Mr Modi showcased India as a business friendly destination to attract foreign businesses to invest and manufacture in the country.

Some of the initiatives to be looked upon: The greatest matter of urgency is developing the skills to support manufacturing growth.

Policy makers must also focus on encouraging universities and industry to work together in the area of research and development.

Skill development is a great initiative of GoI. AIA, ISA etc. can contribute a lot by way of

Industry-University alia. In the Engineering syllabus, let the final year be of specialisation and it should be mandatory for a student to undergo atleast 6 months training before being awarded degree. Rural Vocational training as initiated by Sri Sathya Sai Seva OrganizationIndia is a great initiative where rural youth are being trained. Our Education system has to undergo major reform in order to create Youth which can lead India in the World. By 2020, India is set to become the world’s youngest country with 64 per cent of its population in the working age group. With the West, Japan and even China aging, this demographic potential offers India and its growing economy an unprecedented edge that economists believe could add a significant 2 per cent to the GDP growth rate. Thus Industrie 4.0 will have energetic youth to take up this mammoth task.

It is to be worth noted that SMART stands for SM –Smart manufacturing, A – Administration and RT- Research & Technology. Now technology is available but to put at right place is a challenge.

Benefits accrued have to be made understood to the end users who are ultimately sharing the cost. This can be all the sectors like Aviation, Healthcare, Rail, Power, Oil & Gas where connected plant vision will result huge reduction in costs. Pervasive sensing is another area which will take care of Process Safety, Process Control, HSSE, Reliability and Energy.

I feel that group of Industry experts be formed by the Central Government to drive this initiative across the India and solutions be standardised which is available to all sectors.

This will be economical for SMEs also and help them in taking decisions.

Author’s Details: Vivek Gupta General Manager & Head- Instrument DCM Shriram Limited Chemical Engineering World

CEW LEADERSPEAK

“GST is a welcome move and will be good for India, keeping the rates low will be excellent for India” Indian companies are capable of competing with the foreign companies, but there are few challenges that need to be addressed. This includes inability to setup PCPIRs properly, presence of some tension between large petrochemicals p r o v i d e r s a n d t h e c h e m i c a l i n d u s t r y, l a c k o f l o n g - t e r m a g r e e m e n t s e t c .

Nadir Godrej, Managing Director, Godrej Industries Ltd shares his view on these existing challenges in an exclusive interview with Mittravinda Ranjan.

How do you see the impact of the drastic drop in crude oil & natural gas prices on the chemical industry?

The overall energy sector is undergoing major transformations. Today, gas is USD 15-16 barrel oil equivalent, whereas oil is at USD 45-50 per barrel and I would expect that over the time that the oil price will be at par with the gas price. I don’t think the gas price is going to escalate any further. With the advent of new solar technologies and the declining cost of solar photovoltaics, we can anticipate the cost of solar energy to fall further. Storage of solar energy is one of the challenges which need to be addressed since this energy cannot 46 • December 2016

be produced round the clock. In my view, over the next three to five years, the storage solutions will also become very economical thus making solar energy more economical than the coal based energy, which could also mean the end of the fossil fuel era.

For the chemical industry, I think, it is a very good time and not a big threat per se, since these developments would further drive the prices of fossil fuels very low, which will prove to be an opportunity.

Moreover there is significant development in the field of bio-based materials which will further reduce the dependency on hydrocarbon feedstocks.

As a major producer as well as a consumer of specialty chemicals, how is the group realigning strategies in India and internationally?

Our specialty chemicals business contributes to 5 per cent of our total business and we have made good progress as some of our chemicals are already there in the market. Constant progression of FMCG industries and various other end-user industries will continue to accelerate the demand of specialty chemicals and we are ready to meet the demand.

For our specialty chemicals, Godrej Consumer Products is a regular customer, Chemical Engineering World

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CEW LEADERSPEAK which is also the biggest Indian owned FMCG company, and globally, it is among the fastest growing consumer product companies in the world. Within our group, Godrej Agrovet is our big prospect for our specialty chemical products. We are working towards increasing the share of specialty business to 20-22 per cent in the near future and have also started producing conventional and novel surfactants, esters, ethoxylates and waxes; and raw materials for Godrej Agrovet.

We are already in talks with global FMCG companies like Unilever, Colgate & many others, to whom we would be selling our specialty chemicals. They are already customers for our oleochemicals and conventional surfactants. Presently, we are waiting for approvals from these organisations, which is a time consuming process.

In our business, one of the issues is in the palm oil supply chain which we are trying to streamline. India produces highly sustainable palm oil. But the Godrej group doesn’t refine palm oil in India and we only sell crude palm oil. Hence we don’t have the facility to refine and derive the by-products like palm stearin & palm fatty acid from the crude oil.

In this scenario, it becomes difficult for us to maintain sustainability across the palm oil chain and we are working on addressing this challenge and on certifying Godrej Agrovet‘s own palm oil production, over time we will completely link the supply chain.

Coming to global business, we think Africa is a good market for the growth of consumer products where we see strong growth in the FMCG sector and our specialty chemicals. Indonesia is also a good market for consumer products and specialty chemicals. At present we are not looking to supplying in China since it is a difficult market to penetrate. We see low growth in OECD nations which are growing at less than 2 per cent and a slowdown in many commodity producing developing countries.

How has the Godrej group continued to be competitive and cost effective along with maintaining strong connection across multiple segments of the society?

48 • December 2016

Premiumisation is going to be a big trend as India becomes a richer country. At the same time the number of people at the bottom of the pyramid is still growing remarkably which will lead to escalation in product demand. We produce different formulations to offer products to customers at the bottom of pyramid which are fit for purpose while not compromising on the quality. There is a significant increase in demand of sophisticated products which do come with a cost but we are seeing a healthy growth in our products in this segment as well.

For us, customer satisfaction is the single most critical aspect to run the business and we are ready to serve our customers.

Innovation can always aid the producer to manufacture the product that satisfies the customers and we are confident in providing economical products of high quality for household consumption.

How can the Indian specialty chemical manufacturers become competitive at the global level?

Indian companies are capable of competing with the foreign companies, but there are few challenges that need to be addressed.

The biggest challenge is that we haven’t been able to setup PCPIRs properly.

There exists some tension between large petrochemicals providers and the chemical industry. Lack of long-term agreements makes petrochemical feedstock a problem for the industry. I don’t see a quick solution to the same. For the specialty chemical industry, feedstocks are not a big issue and thus there is a high potential for the growth of specialty chemicals industry in India and there is a room for multinational as well as Indian companies to grow holistically.

For the Indian specialty chemical manufacturers to be competitive at the global level, the Indian companies need to invest into continuous R&D to develop sophisticated specialty chemicals and also work on developing customer development programmes to work closely with their clients.

Please share insights on the investment of Rs. 300 crore by Godrej into the Godrej Agrovet business and current

position of GAVL in the Indian and global markets?

Out of 300 crore investments that have been earmarked for our Godrej Agrovet business, we will invest half of this in our business for animal feed. We are investing around 100 crore in our palm oil business that I have already mentioned, and another 50 crore in Agrovet Agri inputs business.

Apart from this, Godrej Agrovet will invest 100 crores in its new acquisition of Creamline Dairy and 60 crores in Astec Life Science, which is a specialty chemicals company, where we are a majority shareholder.

Astec Life Science specialises in triazole chemistry which supplies active ingredients to Godrej Agrovet and other companies in Indian and other international markets.

Presently, we are mostly selling formulations in the Indian market and growing steadily at 25 per cent per annum and expect to maintain the growth rate. Godrej Agrovet is a renowned pesticides manufacturer and with the acquisition of Astec Life Sciences Ltd which is into manufacturing of agrochemicals and pharmaceutical intermediates, we will be able to further expand our product basket to manufacture fungicides. Plant growth promoters are a very big part of our agri business and we are working on new plant growth promoters as well as old staples which include triacontanol and homobrassinolide; and very soon we expect to initiate exporting homobrassinolide to the USA. Godrej Agrovet is also open to expansion through acquisitions.

What are your thoughts on the clearance of GST bill by the government?

GST is a welcome move and will be good for India, keeping the rates low will be excellent for India.

With the Make in India campaign, which aims to increase the share of manufacturing in GDP from current 16 per cent to 25 per cent, how much work needs to be done to realise this vision?

The government’s focus to get the manufacturing sector to contribute 25 per cent of GDP is appreciated as this will Chemical Engineering World

CEW LEADERSPEAK create lots of job opportunities. But while it is desirable to grow manufacturing the service sector is likely to grow even faster. And I believe agriculture has the potential to grow rapidly with better use of technology. So in the sectors like services, agriculture, and industries the complete economy can grow at 12 per cent p.a.

Each sector needs to grow at a much faster pace. Although, there are multiple issues that need to be addressed. If all sectors grow rapidly it is not possible to significantly improve the salience of one sector such as manufacturing.

If you look at the feedstock for petrochemicals sector, the coordination between the users and the quality of raw materials are curbing the growth pace. Cost of gas is always low at the source of origin as compared to the total landing cost after transportation and since we are dependent on imports for feedstock, this can be a constraint for us while competing with countries like the USA and the Middle East where the cost of gas is much cheaper. However, the capital cost is high in the Middle East; it is not easy to operate the petrochemical plant there. So, the lower transportation cost in India and the higher capital cost in the Middle East will enable India to stay competitive. And as I have already said, with the solar energy becoming competitive, the raw materials like gas and oil will become even cheaper which will eventually be very good for India.

Industry is working on sourcing from renewable sources and there is research going on technologies like cellulose cracking that could lead to new chemicals thus creating different value chains. These may be competitive with petrochemicals, and not for all chemicals, but it has greater value for certain kind of products coming naturally from the chain. But we are not sure if the government would give any incentives or carbon tax on gas/oil use for the chemicals. Even we are looking at these as one of the future sustainable technologies for our business and are in talks with several technology providers.

Several companies are escalating their budgets for integrating fresh innovations and deploying R&D in the same. We must continue weighted deductions on R&D 52 • December 2016

expenditure, in order to accommodate constant innovations.

As far as infrastructure is concerned, high electricity rates continue to be a pain point for all the manufacturers. As solar energy is becoming cheaper and the distribution challenges are taken care of by the government, I think people will set up solar based captive units for consumption which would offset the energy cost to a great extent. However low cost storage will be required for captive units.

Water is not essentially a problem as we are capable of recycling our waste water.

But, some industries that uses significant amount of water are at risk, where they need to cut down on their requirement of water. Industries consume a lot of water for cooling purpose, but if water is expensive, one can do water harvesting or generate enough water at one’s own land and undertaking water-shed program will act as a solution to cut down the cost of water. As a part of our corporate social responsibility program, we are executing water-shed program, which helps in collecting water at a very low cost, even in some of the driest parts of India.

Transportation through water routes in India is around one tenth of the cost of transporting via railways. Our Union Minister, Mr Nitin Gadkari’s announcement to invest in developing inland waterways infrastructure has brought a bright hope to address the water transport issues. In India, water transport is largely on natural rivers.

Government should consider a north-west canal project which can be very useful for the chemical industry and I feel a study should be carried out in this direction.

Specialty chemicals cannot be sold on the basis of the specifications as these are produced with the aim to be the best fit for applications to impart desired product quality. This needs extensive research which is the key differentiator between the specialty and the basic chemicals.

India produces huge herds of chemical engineers year after year. The cost of R&D is more economical in India than the global R&D cost. Typically the cost in

India is one third. The specialty chemicals industry should be based on the R&D done in India. It would seem we are not doing much Research and Development in India but since the Indian cost is one third of the cost of developed nation R&D India effectively spends much more than it would seem. The weighted deduction in R&D has proved to be useful to the industry and the government should continue the weighted deduction and accelerate deduction for promoting the green R&D. Also, there is a need for developing synergies with the national agencies for bringing more local level innovations at low-cost.

We, at Godrej Industries have collaborated with National Chemical Laboratory successfully in the past and recently and are also collaborating with the Institute of Chemical Technology and IIT in addition to running our own in-house research programs.

What are the future plans of Godrej Industries?

Post the acquisition of Creamline Dairy and Astec Lifesciences, we expect Godrej Agrovet business to grow very fast organically as well as inorganically and are envisaging a good growth in our animal feed business and dairy industry products.

We will continue looking out for more such opportunities in long and short term growth of our business.

The agricultural sector can grow at the phenomenal rate with onset of new agricultural techniques like bio-reactors, etc. and all of these can improve agricultural growth significantly. Organically, we expect our agri-business grow at 25 per cent which we can look at boosting to around 40 per cent through acquisitions.

Our chemicals business will provide Godrej Agrovet with newer game changing chemicals.

We will develop new surfactants such as sophorolipids and focus on low cost green energy to lower our costs and give us a competitive advantage. We have struggled in the recent past but the future looks very bright.

Chemical Engineering World

CEW LEADERSPEAK

“Our Investments Have Provided a Foundation for Sustainable LongTerm Growth,” A veteran of the Petrochemicals industry, Mr. Vipul Shah joined Reliance in 2015, after spending 25 years in senior positions at global operations of Dow Chemicals, where his last assignment was as President, CEO and Chairman of Dow India. As Chief Operating Officer – Petrochemicals at Reliance, Mr. Shah is responsible for overseeing the business functions of Reliance’s vast Petchem portfolio. The business reported revenues of $ 3.4 billion in Q2 FY1617 and Earnings Before Depreciation, Interest and Taxes of $ 513 million. Over the last few years, Reliance has invested almost $ 17 billion in new capacities, a significant amount of these in the Petrochemicals business. Chemical Engineering World caught with Mr. Shah to get a better understanding of the new projects and the way ahead for Reliance’s Petchem business.

Give us an overview of your new projects and the impact they are likely to have on the future of Reliance’s Petchem businesses?

Today, Reliance Industries Ltd (Reliance) is amongst the world’s leading producer of petrochemicals with global scale capacities across polymers, polyester, fibre intermediates, elastomers and aromatics.

Integration between refining and downstream petrochemical products is among Reliance’s key competitive advantages. The deep integration within each chain helps Reliance mitigate the impact of price volatility in the

54 • December 2016

global energy and chemical industry. This integrated play has delivered amongst the best margins globally for over two decades. The petrochemicals segment has achieved record EBIT of ` 10,221 Crores, representing a 23 per cent yearon-year growth in FY2015-2016, and in turn delivering one of the best performances in the global petrochemical industry.

We have invested over ` 1,10,000 crore ($ 17 billion) in refining and petrochemicals businesses over past five years. As the company is near the fag end of its largest capital expenditure cycle, we are now

focusing on ensuring a smooth start-up and stabilisation of most of the new projects.

These large investments in integrating refining and petrochemicals businesses will create sustained and significant value for stakeholders in years to come.

Broadly speaking these investments will double the capacity of key petrochemicals products. To give you the details, the Refinery Off Gas Cracker (ROGC) and ethane import project are on schedule, to be completed by the second half of FY 2016-17. Along with the aromatics chain expansion, these projects will Chemical Engineering World

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CEW LEADERSPEAK propel Reliance to be among the largest petrochemical companies in the world.

Reliance is setting up new ROGC with Ethylene capacity of 1.5 MMTPA along with matching downstream PE and MEG facilities and incremental PP output at Jamnagar. The cracker will use low-cost off gases from Reliance’s refinery as feedstock to produce Polyethylene and MEG. This will lead manifold increase in value. This not only provides competitive cost advantage but also gives additional feedstock flexibility to the petrochemicals business. Downstream PE capacities enhance polymer business’ profitability and MEG adds to the integrated chain margin for its in-house consumption in polyester business. Since the Cracker is located at Jamnagar which houses two large-scale refineries, the quantity of off-gases which would be fed to the ROGC makes it not only amongst the world’s largest ethylene crackers but also an integrated RefineryPetchem model which is unique in the world. Apart from the economies of scale, by utilising low value refinery off gases as feed, ROGC would be in the top quartile in terms of-global cost competitiveness across ethylene crackers.

Last year, we successfully commissioned 650,000 tonne Polyethylene Terephthalate (PET) plant and a state-of-the-art 2.3 million tonne Purified Terephthalic Acid (PTA) plant at Dahej. Reliance’s total PTA capacity has increased to 4.65 Million Metric Tonnes per Annum (MMTPA), with a global capacity share to 4 per cent. The integration of the new PTA plant and PET plant will provide significant logistical advantage to Reliance. These plants are operating at name plate capacity and serving both domestic and export markets.

(PFY) facility at Silvassa, one of the most automated and environment friendly plants globally. The plant started production in 201415. This integrated play has strengthened our position as one of the global leaders in production of polyester fibre and yarn.

In addition, Reliance has also started India’s largest Styrene Butadiene Rubber (SBR) Plant at Hazira with capacity of 150 KTPA. We have also expanded our Poly-Butadiene Rubber (PBR) capacity. This will help in reaffirming our domestic leadership position in the elastomer segment.

To sum up, our Chairman Mr. Mukesh Ambani said in his recent speech to the shareholders at the company’s Annual General Meeting, “These investments will position Reliance among the top 10 petrochemical players globally with a portfolio of products that continue to meet the growing demands of India. The petrochemical business will have a unique earnings model based on integration, top-decile cost positions and annuity earnings stream. As we complete the current investment programme and forty years of Reliance’s history as a public company, we will have created a solid foundation for continuing growth for many years to come.”

How Reliance is handling volatility in petrochemical products prices due to sharp fluctuations in crude oil prices?

You need to understand that the key competitive advantage that we have is Reliance’s unique Integration between refining and downstream petrochemical products. The deep integration within each chain helps Reliance mitigate the impact of price volatility in the global energy and chemical industry. Reliance also has a diversified feedstock slate, with both naphtha and gas based crackers, which helps mitigate risk involved with feedstock sourcing and margin volatility.

We are expanding our polyester presence in executing one of the largest PX plants in the world at Jamnagar. The new Paraxylene (PX) plant is mechanically complete and pre-commissioning activities have commenced with production slated to begin in the next few weeks.

The other key source of our competitive advantage is our focus on technology leadership, cost efficiencies, responsible operational practices.

The raw material produced is supplied to downstream Polyester Filament Yarn

What are your thoughts on the changing dynamics of petrochemicals industry

56 • December 2016

currently; especially given the impact of drop in crude oil prices, recession in the Middle East and new facilities expected to come up in the South East Asia. How is Reliance realigning its business?

The fluctuation in the crude price brings in a major element of uncertainty in the business environment for the petrochemical industry.

Fall in crude prices does not only impact India but also the global market. While low crude oil prices have put downward pressure on other commodity prices, including polymers, in the long term this could only benefit an oil importing economy like India. Once the price volatility is over, low but stable prices would only give a boost to the demand for polymers and hence would be beneficial for the future growth of our industry as well. For downstream companies in polymer products and applications, capturing the incumbent growth would be the key to using these low prices to their advantages. In the Indian SME context, cash flow cycle, working capital and cash turnaround at customer end is quite important. Low crude and product price scenario allows this I expect Indian market to show healthy growth in a market scenario of low petrochemical prices. This would benefit our customers in a significant manner. As the benefit of low polymer prices are passed down the chain, there would be more demand for plastic and polyester products.

In addition, passed on reduction in prices of transport fuels and household gases is likely to place higher disposable income in the hands of consumers for discretionary spends.

This is likely to help catalyse the sales of our downstream product manufacturers too.

As for the competitive landscape, it has certainly evolved over the years. The customer is now at the epicentre and the focus is primarily on improving service levels across the board.

At Reliance, we continue to leverage economies of scale, as evident with our upcoming J3 project, in order to provide our customers with the highest quality at the most competitive price point. Additionally, our long-standing relationship with customers, extensive sales network and Chemical Engineering World

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CEW LEADERSPEAK increased focus on R&D – both internal and joint development – with industry leaders and speciality producers is keeping us ahead of curve.

Please share insight on some of the cuttingedge technologies for petrochemicals developed by Reliance at its R&D centres?

As a company, Reliance has always laid great emphasis on Research and Development and invested significant resources in developing and refining cutting edge technologies. Though far less talked about then our project execution skills, this aspect has always been a significant contributor to the company’s competitive advantage.

As far as the Petchem business is concerned, our state-of-the-art laboratories employ more than 400 scientists. Reliance’s efforts in R&D have helped it to improve efficiencies and strengthen its product portfolio with unmatched quality. Some of these efforts listed below.

We are developing a proprietary process to manufacture Chlorinated Polyvinyl Chloride (CPVC) resin. RIL’s CPVC technology undergoes photo-chlorination with visible range radiation as compared to other producer’s processes that use ultra-violet radiation. The benefit is that RIL’s technology eliminates the need to handle hazardous UV radiation and the subsequent disposal of used UV lamps.

Reliance has implemented Proprietary Morphological Catalyst Precursor Technology to produce High Performance Catalysts for better Operability of polypropylene production and operational reliability.

Reliance has implemented High Productivity Self Extinguishing Catalyst with performance enhancing donor (RELCAT 100Y / RELD System) for Polypropylene with improved properties such as Raffia Grade. This technology helps produce desired balance of microstructure and molecular weight characteristics suitable for high speed processing lines of PP raffia grade.

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High Melt flow Impact Copolymer Grades with Proprietary (RELCAT 300Y) Catalyst Technology. This Reliance Catalyst Precursor is used to develop catalyst system with good hydrogen response to produce high melt flow impact copolymer grades especially suitable for automobile industries.

Reliance has taken major initiatives to develop Next Generation Catalysts and Processes for producing high performance and specialty polyolefin grades such as ultrahigh molecular weight PP and metallocene Polyethylene Resin with IPR. On the whole, Reliance has 140 Patents / applications filed in the area of Polyolefins with granted patents in USA, Europe, India, etc.

Apart from product development and process improvement, one of our key focus – as a company, not just the Petchem business – has been to reduce the impact of our operations on the environment. We have therefore developed and deployed world-class technologies across all sites to reduce fresh water consumption per unit of production by maximising waste water recycling and minimising external discharge.

Customer Centricity is a core value with Reliance. We have adopted the expression of ‘Chemistry for Smiles’ on the back of the motto - ‘Transforming Life into Quality Life’, to grow jointly with the customers and add value to the intangible emotions of life for the end-consumers. In line with this, our R&D and customer service centres not only work towards improving efficiencies of manufacturing process and products but also help customers to manufacture quality products for their end customers and thereby enhancing value and experience throughout the manufacturing chain.

Our commitment to our customers in the plastic processing industry in unmatched and is reflected in actions such as new grade introductions targeted at specialty applications, continuous grade improvements, enhancing quality consistency and productivity of grades, regular interaction with customers for feedback on grade performance and strengthening of distribution network and reach.

PRODUCT APPLICATION & RESEARCH CENTER (PARC) Reliance has several state-of-the-art facilities spread across the country that help us co-create and collaborate with our customers to develop new value-added applications for our end-use segments.

The most prominent amongst these are our three facilities at Vadodara - Product Application & Research Centre (PARC), Plasticulture Development Centre and Elastomer Customer Application centre.

These facilities cater to the technical needs of our large and the growing segments of customers across MSE and SME’s in plastic processing, agriculture and tyre & non-tyre industry etc. These facilities are equipped with the latest processing and testing equipment to meaningfully service and support customers on issues related to grade selection, product development, processing techniques and end product performance etc.

The PARC at Vadodara is being now expanded from the present 13255 sq. ft. to 33000 sq. ft facility and we will be adding more Processing machines & Laboratory Instruments from a present 60 to 112.

Perhaps a few examples that follow would help explain this better.

In the coming year, we intend to expand our product development focus on a wider array of sectors including Automobiles, Wire & Cable, and Pharma.

We have developed one of the greenest ecofriendly fibres in the world, by recycling used PET bottles which are branded as Recron® GreenGold fibres. One range of fibres under this umbrella, Recron® GreenGold EcoD is pre-coloured fibres which reduces usage of water significantly.

A recent independent external survey of PCT applications filed by Indian organisations found that Reliance was ranked third amongst all Indian applicants. This is testimony to the success of our R&D efforts. Additional proof about the quality of Reliance’s inventions is evidenced by the enquiries we have been Chemical Engineering World

CEW LEADERSPEAK receiving from domestic and international manufacturers for licensing our technologies.

manufacturing of mass consumption goods, hence should be taxed at merit rate.

Reliance operates the world’s biggest integrated refining & petrochemicals complex in Jamnagar where two refineries process about 1.4 million barrels per day (bpd) of crude oil. How does this help in giving the company a competitive advantage?

What are your thoughts on the government’s Make in India initiative?

How does Reliance plan to leverage upon this opportunity?

One of Reliance’s key competitive advantages is the Integration between refining and downstream petrochemical products. The deep integration within each chain helps Reliance mitigate the impact of price volatility in the global energy and chemical industry. This integrated play has delivered amongst the best margins globally for over two decades. It offsets global volatility in oil prices, and a diversified feedstock slate helps mitigates risk.

This will be further enhanced once our new ROGC 1.5 MMTPA Ethylene capacity of along with matching downstream PE and MEG facilities and incremental PP output at Jamnagar comes on stream.

What will be the impact on the Petchem industry, once GST is finally implemented? Apart from GST in your opinion, what are the lacunae that still need to be addressed to create a level playing field for petrochemicals product manufacturers & refineries in India in the domestic market; and building globally competitive industry?

The GST is a welcome step for industry, and the determination of the government to implement it at the earliest is commendable.

We would also like to see GST being made applicable to the upstream Petroleum and some of the products left out of its ambit.

The issue of a level playing field is very important to us in light of the Free Trade Agreements signed as well as planned.

While our facilities are amongst the most modern and efficient in the world, the higher interest and infrastructure costs necessitate a corresponding offsetting duty in the FTA’s to maintain a level playing field.

We believe that Petrochemicals industry is an enabler for other industries and goes into 60 • December 2016

Make in India is a core philosophy that Reliance has inherited from our visionary founder Chairman, Late Mr. Dhirubhai Ambani. Every product we create with the ‘Made in India’ tag is a source of great honour and pride. It is this philosophy that prompted us to start an investment programme of $ 17 billion, a few years ago, when private sector capital investments were drying up in face of global and domestic economic uncertainty.

Our petrochemicals business adds value to the refinery streams and is focused on improving quality of life of millions.

Petrochemicals business meets the rawmaterial needs of over 30,000 small and medium scale units directly. This supports India’s manufacturing growth and generates employment for more than 4.5 million Indians.

India is fast emerging as an automobile hub with resulting growth in elastomers demand.

We have strengthened our elastomers portfolio by commissioning 150,000 tons per annum of SBR capacity. This is on top of the expansion of the PBR capacity by 115,000 tonnes per annum in 2014. All these petrochemical investments are geared to deliver superior performance in the years to come by focusing on capital cost competitiveness, continuous cost reduction initiatives and operational excellence.

We believe that these will strengthen the Government’s Make in India initiative as each of our petrochemical ventures provides raw material to tens of thousands of downstream processors that provide livelihoods to millions of Indians.

As part of Make in India initiative and for driving customer value, new products have been developed and are in process of getting commercialised. Some of these are: •

Cobalt based PBR Cisamer 1220 H: The product has less gel content and is manufactured at Vadodara Manufacturing Division for high-impact polystyrene application.

•

Neodymium Based PBR Cisamer 700: This product is manufactured for the first time in India at Hazira Manufacturing Division and is specially being targeted for low rolling resistance and procured tread rubbers with abrasion resistance.

•

Styrene Butadiene Rubbers (SBR 1783 and SBR 1723): This product is mainly designed for usage in high performance tyres which provide improvement in wet traction/ rolling resistance.

The other big initiative at Reliance, which we believe will play a big role in ‘Make in India’, is our newest and most exciting business Jio. As our Chairman Mr. Mukesh Ambani said in his recent AGM speech, “The world’s demand for Digital oxygen, that is data, is growing explosively. Jio’s mission is to meet this exploding need for India, and to take our nation from data shortage to data abundance. And to enable a Digital Life for a Digital India” “A Digital India - where the Digital Life of no Indian is ever threatened by scarcity, poor quality or unaffordability of data. Where access to information knows no barriers.

Where quality education reaches the most inaccessible corners of the country driven by digital learning. Where quality healthcare percolates right up to the remotest regions powered by e-Healthcare. Where farmers are empowered with real-time Information to be connected with global markets. Where mobile and e-banking ensures financial Inclusion. Where connected Indians drive innovation and the world looks to India for the next big idea.”

What are the future plans of the company in India and globally?

As I mentioned earlier, we are just approaching the end of the largest ever investment cycle not only in the history of Reliance but the largest such investment cycle ever undertaken by an Indian corporate.

The time is to now stabilise all the projects, consolidate the enhancement in stakeholder value that will accrue from these projects, before going back to the drawing board.

Chemical Engineering World

LEADERSPEAK CEW LEADERSPEAK

“EPC Business – Future is good but patience required” At present, the Indian EPC sector has been going through tough times due to fall in global oil prices, which impacted pricing of petroleum products, ultimately affecting the financials of the Petrochemical & Allied Chemical Industry restraining them from making new investments. Mr. P D Samudra, CEO & Managing Director, thyssenkrupp Industrial Solutions (India) & the CEO, Regional Cluster India, tkIS AG Group shares his views on current market crisis, Indian EPC market, Goods & Service Tax Bill and the Government’s Make In India initiative in a conversation with Mittravinda Ranjan.

How do you draw a parallel bet ween the current market turbulence with the market crash of 2008, when the oil prices witnessed sudden spike?

The crisis in 2008, which resulted from financial crisis in banks, had a wide implication across the world and was experienced in almost all segments.

The present crisis however has affected certain industrial sectors of markets that are mainly related to the oil and gas, energy and mainly associate industries.

The sudden crash of the oil price was the tipping point to this crisis. The signs 64 • December 2016

were visible earlier as shale gas was made available at cheaper prices. The complete energy business across the world was undergoing massive changes and that resulted in oil price dropping to less than $50, which is almost half of the earlier price. This crisis had an adverse effect on sectors related to energy, oil and gas, petroleum, chemicals etc. Right now, there are better business prospects in India in certain sectors like IT, infrastructure, food, packaging, defense equipment,

retailing, automobile etc; and some countries like USA are still doing relatively better in chemical sector, since they have abundant shale gas available at lower prices. So, we cannot say that this crisis is across all the segments of business. I. In case of Steel, however, due to excessive Steel Production capacities built up in China and lack of demand due to delays and cancellation of the new (promised) projects for Infrastructure and Process Industries, the Steel prices had also crashed, in the meantime.

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CEW LEADERSPEAK What are the industries that have been indirectly affected due to low oil price?

The crisis has had an adverse effect for example on the EPC & Construction industry especially the Chemical Process sector. Most of the EPC companies, engineering service providers, and the equipment and component suppliers for building Chemical Process plants, are affected today. A Large number of projects are delayed; some of them are cancelled.

Investments for new projects are not forthcoming in Chemical Sectors, because the cost of raw materials and products are in a dynamic situation.

As the oil price has come down, all the derivatives of oil have taken a hit. Due to this situation, the private sector especially in India is not ready to take risks and is refraining from new investment announcements.

When this situation gets stabilized, I am sure there will be an impetus for the growth of our industry. In the meantime, strong measures have been taken by some of the EPC players e.g. adjustments in number of employees, closing down or selling of some of the non-profit business units, considering diversifications etc. There is an ongoing process of consolidation at all levels of organizations.

Another factor which has affected large Petrochemicals, Polymer and Refining sectors is the big capacities built up in China and in the MENA regions, Consequently, under the present situation, the number of projects in the MENA and China regions have now been postponed or cancelled.

Please share insights into the on-going projects of tkIS in India and globally?

Currently, we are active on number of projects in the field of clean fuels in the Refining Sector, i.e. for conversion of the throughput to Euro IV, Euro V standards. We are also implementing DAP projects in India. We are involved in petrochemical projects for manufacture 66 • December 2016

of Phenol and Cumene. We are serving our other important clients for a number of caustic soda/chlorine projects in India.

Apart from these we are acting as PMC for projects for Polypropylene & Refinery Projects etc... Internationally, we are implementing projects for Petrochemicals in Saudi Arabia, DAP/NPK in Vietnam etc.

A 60 MMTPA mega refinery project has been planned by IOCL, BPCL & HPCL with EIL. How do you see this as an opportunity for tkIS to collaborate as consultants?

The refinery project, announced by Indian Oil, BPCL, HPCL and EIL is a very good move. Presently India is a net exporter of petroleum products. Since consumptions for Petroleum products are increasing rapidly in India, as a consequence of rising standard of living (due to higher GDP), we would require huge quantities of petroleum products.

If we do not expand our plants now, or if we do not set up new Refineries, the situation may arise in the years 20252030, that we have to resort again to the import of petroleum products! Therefore, it is very important that India should act immediately and set up more refineries, to meet the demands of the petroleum products by the end of the next decade.

Therefore this project is very crucial for our country.

The EPC/Engineering companies, Equipment/Components manufacturers are keenly observing the progress on this Mega Complex including downstream units, for business opportunities in future.

Though the government has cleared the GST bill, there is no clarity on its implementation on the petrochemicals sector. In your opinion, what are the

lacunae that still need to be addressed to create a level playing field for Indian EPC companies in the domestic market; and building globally competitive industry?

There are lot of issues presently with respect to taxation structure in the EPC business, since majority of EPC contractors do not manufacture all the equipment, and/or components of the Plant themselves, thereby creating lot of work for proper tax assessment, clarifications and the paper work, apart from the complexity in the tax computations and eventually resulting into the delays and cost over-runs in projects I am sure with the GST bill in place, these matters will be simplified. It will be good for the EPC Sector, since the risks on taxes can be minimised and the total cost will eventually reduce.

However there should be a proper level-playing field for both the foreign contractors, and the Indian contractors, by maintaining proper “balance” in import duties and local GST, respectively.

The “Make In India” initiative, which has shown promising prospects for the Indian Chemical sector & EPC sector, has being promoted extensively at varied industry forums. How beneficial would it prove for the sector?

“Make in India” is an excellent initiative.

For Chemical Process Plants this can be applied selectively as the sizes of Chemical Plants are rather big (international size), warranting a very high investment. Additionally, majority of Chemical Plants require either “backward” or “forward” integration with production of raw materials or

Right now, there are better business prospects in India in certain sectors like IT, infrastructure, food, packaging, defense equipment, retailing, automobile etc; and some countries like USA are still doing relatively better in chemical sector, since they have abundant shale gas available at lower prices. So, we cannot say that this crisis is across all the segments of business.

Chemical Engineering World

CEW LEADERSPEAK “Make in India” is an excellent initiative. For Chemical Process Plants this can be applied selectively as the sizes of Chemical Plants are rather big (international size), warranting a very high investment. Additionally, majority of Chemical Plants require either “backward” or “forward” integration with production of raw materials or production of downstream pr oducts , to be more c os t-effect i ve a n d t h u s e f f e ct i ve l y compete with international manufacturers. production of downstream products, to be more cost-effective and thus effectively compete with international manufacturers.

This increases the capital costs for the project. Therefore, no big investment seems to have taken place in Chemical Projects of large size, under the “Make in India” scheme; but the Small Scale Industry has certainly witnessed investments! On the other hand, the Equipment Fabrication/ Manufacturing Sectors have very good prospects under “Make In India” Scheme e.g. entrepreneurs can now aim to manufacture some of the critical equipment/package systems required in Chemical Industry, which are presently being imported. This would require scouting for competent and experienced equipment/package system manufacturers, who are prepared to collaborate and market the products, together, not only for Indian market, but also for the overseas market, in view of being more competitive.

How does having indigenous technology benefit EPC companies in the competitive business environment? tkIS is known internationally to be Technology Driven EPC Company, which includes Uhde processes in Chemical Industry. tkIS have their own well proven and experienced technologies and have also access to well-known technologies from the Licensors of international repute; in the fields of Fertilizers, Petrochemicals, Refining, Industrial Chemicals etc.

68 • December 2016

Wit h res pec t to y our s pec ific ques tion, I m ay mention that there are a number o f well-prov en and c ommerc ially a t t rac tiv e tec hnologies av ailable in t h e international mark et, for a majority o f chemic als . It is c hallenging to d e velop c ompetitiv e tec hnology from scratc h, indigenous ly .

Howev er, e f f o rts to dev elop s uc h tec hnologies m u s t c ontinue, prov ided they are e n vis aged to be c ommerc ially a t t rac tiv e and als o c an c ompete e f f e c tiv ely on tec hnology merits .

The modern trend in the EPC business is that the Customers prefer to opt for L (Licence) + EPC contracts, so that the Customer gets “single point responsibility” in the true sense, especially with respect to the Plant Process Performance Guarantees. If this trend continues, then having one’s own technology, either from the Parent Company in case of Multinational EPC Companies, or in case of Indian EPC Companies, tying up with the Indian source of technology will be beneficial, in the long range.

However, I must say that at present there are a very few Licensors from India who can offer Licence for well proven and commercially attractive technologies in Chemical Fields.

There has been dramatic shift in the business of manufacture of Petrochemicals as well as in the Oil and Gas Industry. The size of Projects have become so large that only very few large Private Sector Chemical Companies or Public Sector Undertakings (PSUs) are able to invest such high capital; and sustain the international “ups and downs” in the Feed and Products prices. The discovery of Shale Gas and the drastic reduction in Oil prices have changed the complexion of the Industry in Hydrocarbon Sector, substantially.

Therefore, it makes very good sense in setting up Projects in the Regions where Gas/Oil are available at cheap prices. However, India has a great potential to act as a “processing hub” due to the low conversion cost based on imported feed stocks eg.

Refining Field Combined with this, the Government’s plan to bring in LNG Gas at a cheaper price will lead to spurt in investments in the field of Fertilizers and Petrochemicals, in the long run.

As also stated above, the growth in the Refining Industry is a must! The wide gap in the per capita consumption in India for Petrochemicals, Plastics & Fertilizers (Urea, DAP) etc., combined with the high rate of growth in GDP will surely imply that there will be substantial growth in the Hydrocarbon processing and downstream industries, in the next decade.

I therefore believe that after the stabilization of the prices of Oil and Gas, Indian EPC Sector has huge potential for Hydrocarbon based downstream projects - Petrochemicals, Polymers, Fertilizers plants, including the Oil Refining Sector.

In your opinion, what are the opportunities and challenges in India across the hydrocarbon value chain and downstream chemical processing industries?

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CEW LEADERSPEAK

Industrie 4.0: Doing It Differently The Industrial Internet of Things (IIoT) is a potential game-changer and the future of manufacturing in India. If India is to achieve its goals of increasing manufacturing output to 25 per cent of GDP and create up to 90 million domestic jobs by 2025, we have to go further and drive innovation in the field of industrial automation. To accelerate efficiency and productivity, manufacturers will need to invest in energy efficient technologies and automation solutions and processes.

A profound digital transformation is now under way in the world’s leading industrial companies.

Companies realize today that the role of digital technology is rapidly shifting – from being merely a driver of efficiency to an enabler of fundamental innovation. India is no exception.

exothermic reactions for which safety is a primary concern. Security of IIoT-based systems is also of paramount importance not just from a safety perspective, but also in cases of the production of essential and strategically important goods and services.

The country’s manufacturing sector is on a high growth trajectory. The Prime Minister’s Office launched the Make in India program to place India on the global map as a manufacturing hub. The sector has the potential to touch $ 1 trillion by 2025. If India is to achieve its goals of increasing manufacturing output to 25 per cent of GDP and create up to 90 million domestic jobs by 2025, we have to go further and drive innovation in the field of industrial automation. To accelerate efficiency and productivity, manufacturers will need to invest in energy efficient technologies and automation solutions and processes.

It is imperative for the sector therefore, to re-imagine the work place and the entire ecosystem – with computing inside.

Another fundamental difference between IIoT and human and consumer applications of IoT is that an industrial plant is a very long-lived, capital-intensive asset requiring long-term support in the face of rapid technological advances. In contrast, other applications of IoT involve short product lifecycles that are often driven by whims of fashion and budget.

INDUSTRIE 4.0 Industrial Internet of Things (IIoT) – sometimes used interchangeably with other terms such as Smart Manufacturing, Industry 4.0, Digitization and Connected Enterprise is the industrial revolution of the 21st century. IIoT focuses on the end-to-end digitization of all physical assets and their integration into digital ecosystems with value chain partners and exchange of information in real time. This revolution will transform the manufacturing processes in sync with the speed of change in customer needs – which implies, making the production process flexible without taking excess time.

IIoT differs from the more generic concept of the Internet of Things (IoT). A fundamental difference is that IIoT aims to enhance the operation and management of industrial production processes, many of which involve 70 • December 2016

The Promise of Greater Productivity, Efficiency and Security The cornerstone of IIoT is productivity. In the world of oil and gas, for instance, where plant owners have one eye on capital expenditure (CAPEX), and another on falling oil prices, the biggest driver of IIoT technology is the promise of greater output. Running applications on premise may offer information technology (IT) teams the illusion of control, but, in reality, the task of deploying and maintaining applications locally is becoming increasingly complex and costly. Cloud applications are quicker, cheaper and easier to deploy, but the greatest value comes from integrating data across a portfolio of plants. In a distributed organization, IIoT can help business leaders see unadulterated, clean data taken from across the entire business before they make big decisions.

Cloud-hosted applications eliminate the politics of local reporting, self-serving key performance indicators (KPIs) and incomplete data sets, producing a meaningful, global view of what is happening and allowing big decisions to be taken at a lower risk to the business.

The IIoT approach also provides a level of supply chain efficiency and decision support not possible with conventional methods. The

ability to collect more data from uncorrelated sources provides opportunities for applying data analytics, modeling and machine learning techniques to gain better insights into the current and future state of the enterprise.

That closed systems offer a greater chance of protection from cyber-attack is a view that has been proven false. Manufacturers are now waking up to the fact that many older products were designed largely without any cybersecurity measures at all. As hackers become more sophisticated, the safest systems are now connected ones.

What is in it for India?

Almost hand-in-hand with Make in India, the government also launched the Skill India campaign. IIoT will drive growth in productivity by presenting new opportunities for people to upgrade skills and new high skilled jobs will be created. The growing use of digital labor will transform the skills mix and focus of tomorrow’s workforce. This is even more important today, as the sector is seeing significant increases in labor costs, which mean that productivity, must be improved in order to maintain a competitive cost position.

In many ways, IIoT represents an “undiscovered country” – full of promise, but waiting to be explored and mapped out. The resulting vision is a new form of automation system architecture that balances the computational and lifecycle benefits of cloud computing with the requisite on premise, appliance-hosted capabilities necessary to provide safe, secure and longlasting automation for complex manufacturing systems and processes. Therein lies the future of industrial automation.

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“We Target Becoming ` 5000 Crore Company by End of This Decade Serving Our Global Customers” “Indian legal system is good and is expected to provide confidence to foreign investors. These along with good labour laws, low R&D cost and also low cost of capital, could push India as a more preferred destination for setting up manufacturing units,” envisages Dr Deepak Parikh, Vice Chairman & Managing Director, Clariant Chemicals India Ltd. He shares his views on Indian Specialty Chemical Market, growth prospects, product portfolio expansions, global partnering and relevance of GST in chemical industry and much more in a candid conversation with Mittravinda Ranjan.

During the last financial year ending March 2016, Clariant India has posted 12 per cent growth over the period of 15 months and increase in quarterly growth by 21 per cent. What have been the growth drivers for the company and how do you see the business in the near foreseeable future?

The Indian market is witnessing strong positive trends in consumer behaviour, which is a strong driver for product demand in, among others, home and personal care, consumer goods and infrastructure. These are growing at rate higher than the GDP and have been strong external drivers for our business.

The real help came from the stability in pricing of raw materials and crude 72 • December 2016

oil and the subsequent derivative and transportation costs. The slide in crude prices does not have an impact of as high as 70- 80 per cent as in case of manufacturing of commodity chemicals but there is an impact of 35-40 per cent which is quite significant when it comes to managing the operational costs and maintaining a healthy bottom line.

Internally, our team has been working aggressively on our marketing strategy for products and services and developed effective channels for distribution to ensure strong pan India market presence. Our entire product portfolio has seen a strong positive trend in the past quarter and there was no weakness that I could point out, and I am pretty pleased with our performance.

Looking at the orders, customer sentiment, assuming the stability of crude prices and pent up demand- it is going to be a solid year for us and the outlook is positive for the next few quarters.

Please share insights into your presence in Indian market.

In India, Clariant has a balanced portfolio comprising of eleven manufacturing locations present across the states of Madhya Pradesh, Gujarat, Maharashtra, Tamil Nadu, and Kerala, out of which two are globally strategic sites. We are very well positioned as far as manufacturing, and latest technology availability is concerned; and will continue to serve our customers in Indian as well as global markets.

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CEW LEADERSPEAK Clariant launched a Greenfield project for healthcare packaging in Cuddalore earlier this year? How does this fit into company’s growth strategy?

We all know that India is one of the undisputed market leaders in APIs for drug manufacturing and with a population size of over 1.2 billion (and growing), it is a strong market for the pharma industry.

The medical packaging industry is now witnessing a boom which is driven by the growth of the pharma sector. Clariant is present in the space of desiccants and produces packaging for generic drugs for over a billion units for supplying globally.

The state-of-the-art production facility in Cuddalore complies with FDA norms and is built in accordance with the best manufacturing practices so as to produce products with the highest standards of global compliance. It is about Rs 70 crores of investment and the project is well on schedule. We expect the production to go operational sometime by early half of next year and when that happens, we will be ready to supply to the whole Indian market.

I would like to point out that we are not looking into the commodities in this space of the healthcare industry. Instead, we definitely are concentrating on specialties which play the critical role in enhancing the value of products that go into healthcare; and that’s what we are going to focus on. As I see, in the next 5 years, the healthcare sector will play a major role in our growth strategy.

What is the significance of Clariant venturing in the innovation portfolio of the group and how do you go about identifying the partners for the company?

As a group we have a very strong focus on innovation which is carried out inhouse and our teams are always scouting for innovative technologies that can be a strategic fit for our business or technology portfolio. The intent of Clariant Venturing is to identify innovative technologies which are at nascent stage of development and to get them patented and invest into the technologies that are in early stages of expansion and align ourselves with them.

76 • December 2016

Our teams are constantly engaged with the chemical research institutes and Universities across the globe, which play a very vital role in carrying out basic research work; and also with various private parties outside our company. We continuously get a lot of enquiries but the biggest challenge here is to fit the new entities into the portfolio of the company and geographies.

Recently, Mr Ananth Kumar has stated that the GST will reduce the tax burden by 12-15 per cent for the chemical industry. How do you see the impact of GST on specialty chemical manufacturers after it is implemented on specialty chemicals industry?

Even today, India has a complex processes for setting up any kind of business – irrespective of the nature of the project - whether it is a Greenfield project, Brownfield expansion, joint venture or acquisition. Once the GST is in place and things get streamlined, this will definitely help the specialty chemicals industry to grow aggressively.

The trickle-down and cascading effects of the GST in other sectors such as logistics, manufacturing, automotive and consumer products will have a positive impact on the chemical industry too.

We, as a company, do expect very positive things from the GST. However it is not going to affect us this calendar year because of the financial cycle we follow. But we are definitely looking at this as a big plus during the next financial year.

Do you feel that there is a need for other reforms like relooking at anti-dumping to provide a level playing field for chemical manufacturing industry in India?

There cannot be a blanket rule of imposing the anti-dumping duties as chemical manufacturers continue to depend on imports of certain chemicals in significant quantities for processes. But from case to case, when there is blatant dumping of products, the governments have to impose anti-dumping duty to protect the interest of domestic manufacturers. There are few cases where measures have been taken by

the government to protect the interest of local manufacturing.

How do you plan to leverage on Make in India campaign?

India has a skilled labour force and our cost of manufacturing in India is very competitive; at times substantially lesser for the same technologies if you compare with the rest of the world, which makes India preferable manufacturing hub for the world. Also the Make in India campaign will make things positive and bilateral trade will be a bonanza.

At Clariant, we have been manufacturing in India for the world without compromising on the quality. Now, in the recent past, with energy price under control because of low crude prices, we have a win-win situation because of a combination of factors such as domestic demand, favourable energy price and high domestic consumption. In fact I believe that Make in India initiative is getting more momentum in our space and for us as a company, we are already exporting 45 per cent of manufactured products to various international markets which itself is a testimony of our stance.

For our space I see South East Asia, Middle East and Africa to be the real corridor for us along with China and we plan to leverage on this opportunity in a robust manner.

What are your thoughts on Reverse SEZs that India is setting up in Iran and announced having the same arrangement with Bangladesh recently?

Reverse SEZs are always going to be about commodities and high volumes and will enable the development of downstream chemicals and petrochemicals industry.

However, specialty chemicals are a very niche industry with many highly specialised sub segments within the chemical industry. There are many key ingredients that are required for specialty chemical manufacturing which cannot be manufactured like general chemicals and are produced by handful of manufacturers globally which cannot be produced in SEZs. Chemical Engineering World

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CEW LEADERSPEAK Overall, SEZs is a good concept and I am very pleased to see what Iran is doing and Bangladesh could evolve in the near future.

For example: •

Internet-based training modules on the topic of Preventing Bribery and Corruption to provide employees with a good understanding of the demands of anti-bribery and corruption laws.

•

A performance driven remuneration policy structured to motivate employees, recognize their merits & achievements and promote excellence in their performance.

•

The Whistle Blower Policy for employees to report to the management about any incidents of unethical behaviour, fraud or violation of Company’s code of conduct

Within the world of Clariant which geographies are performing the best and what is your vision for 2020?

In the last few quarters, the India operations are delivering solid performance with dynamic growth rates. We have observed positive growth momentum in most of the regions we are present in.

To answer your question about our vision 2020 – we target becoming Rs. 5000 Crore company by end of this decade serving our customers across the globe Availability of human resources has been identified as one of the key challenges for the chemical industry where the industry needs to develop the skillset first and then later face the challenge of retaining the talent in the organization. How do you address this for your organisation?

We operate in a large number of countries around the world. As an international Company the effective deployment of employees on a global basis is important for the continued development and success of Clariant.

We continue to invest in our people by implementing learning & capability development programs, providing tailored continuing education and career pathing opportunities ranging from individual global training programs to leadership seminars to enhancing refresher training for our employees at the shopfloor. Clariant in India aims to continue enhancing its exemplary sustainable standards, not only through products, services and performance, but also through integrity and behaviour.

We also constantly engage with our employees to educate them on the importance of ensuring compliance across our standards.

78 • December 2016

After tax, it is the feedstock & the high cost of power that every chemical manufacturer is concerned about in the country. In your view to what extent do these t wo parameters are deciding factor for the specialt y chemical manufacturers to be globally competitive?

Chemical companies are increasingly working towards reducing energy intensity of their operations and diversifying their raw material base to include bio-feedstock. For chemical companies, availability of feedstock is one of the most critical criteria for setting up a production base. It is here that a lot of companies in India face a challenge. Either the feedstock is unavailable or limited in the country.

This is certainly hindering growth of the chemical sector. However, feedstock is not necessarily a challenge for a specialty chemicals manufacturer, as the focus is more on R&D and innovative products for end-user applications.

Which are the key areas that still need to be addressed by the government, by the industry - holistically and by the organizations – within to take the industry to greater heights and how?

Increasing global demand is most likely to result in increased production by low cost manufacturing locations of Asia Pacific. At present, India exports to most of the Asia-pacific countries and other developed countries of Europe and America. Going ahead, India’s exports is likely to increase further as many of the nearby countries don’t have competitive capacities and developed countries are likely to prefer India as a sourcing destination. India has a balanced IPR regime with good talent pool. Indian legal system is good and is expected to provide confidence to foreign investors. These along with good labour laws, low R&D cost and also low cost of capital, could push India as a more preferred destination for setting up manufacturing units.

The government’s readiness to provide incentives for bio-based raw materials to reduce dependence on crude oil, encourage companies to seek “Responsible Care Certification” and facilitate priority loans to those who meet environment norms, has been a positive step towards enhancing the industry. The government is planning to expedite the consolidation of multiple legislations governing the chemical industry into one Integrated Chemical Legislation. This legislation should cover the entire life cycle of chemicals. It can act as REACH like legislation for safe use of chemicals for protection of human health & environment. Establishment of PCPIRs is of immense importance for chemical industry as the policy is expected to attract major investments, both domestic and foreign for chemicals.

Policies have been initiated to set up integrated petroleum, chemicals and petrochemicals investment regions (PCPIRs). However there is a need for faster implementation of PCPIRs projects. Additionally, there should be larger emphasis by the government on public-private partnerships for R&D.

Chemical Engineering World

CEW LEADERSPEAK

“This is a great time for course correction” “For the ‘Make-in-India’ campaign to be a real success, the government has to find a way to create a level playing field by ironing out anomalies in the taxation structure and taking some steps to implement a ‘Preferential Pricing’ mechanism which will maximize the utilization of the domestic manufacturing base, provide further encouragement to Indian suppliers and service providers and aid employment generation in the country,” said Mr Subramanian Sarma, CEO & Managing Director L&T Hydrocarbon Engineering in an interview with Mittravinda Ranjan.

What is the market sentiment across the EPC industry currently?

industry is now trying to become more agile, efficient and cost effective.

The general sentiment across the EPC industry, in both domestic and international markets, is more bearish since there is a general slowdown in capital expenditure and markets have shrunk across the board.

How do you compare the market turbulence in 2008 with the current situation when there have been massive swings in oil prices and when do you see the oil prices stabilizing?

Most of the companies, who have belief in this industry and have managed their businesses reasonably well, see it as a great opportunity to reset their cost base and enhance their efficiency levels. Many organizations are spending a good amount of time & energy to introspect and reflect on their past practices as everyone; producers, service providers & suppliers; had built up inefficiencies when the oil prices were high. The 80 • December 2016

other commodities corrected sharply.

Yes, the oil industry did go through turbulent times in 2008 and is going through a similar phase now but the underlying reasons are entirely different.

But the basic economic drivers, consumer behaviour, and supply/demand were not severely impacted and the global sentiment reversed completely once Governments around the world took concerted action to aid the recovery.

The oil prices also recovered sharply as the drop was never governed by the fundamentals of the oil industry, in the first place.

The financial crisis of 2008 was triggered by the downfall of Lehman Brothers which shook the confidence of the global financial system. Further, the world economy was highly leveraged and interconnected which amplified the crisis and lead to an economic recession. Oil prices, along with all

However, today, the fundamental issue is the significant gap between supply and demand in the global oil market and in my view, we are not likely to see a spike in the oil prices that was observed last time. There has been significant demand erosion due to the economic slowdown in Europe Chemical Engineering World

CEW LEADERSPEAK & China, and even the United States is yet to fully recover. In the past, such shifts in demand were handled to a certain extent by managing supply but this is no longer the case today and hence the recovery in oil prices will be much slower Having said that, I believe that the oil prices will stabilize in a period of around 18 – 24 months at around $ 5560 per barrel. The emergence of viable alternative energy sources and the reduction in Breakeven Point achieved

by Shale Oil producers should provide further support at this pricing level. I would say that this price range is not bad for the industry, as it benefits consumers and oil importing countries like India.

Can you point out some of the inefficiencies that the organizations have built up over the past few years, which they are now trying to address?

During boom periods, there is always a tendency to build up large organizations, with multiple locations and work centers because labor cost is seen as a small fraction of the total cost base. However, in the current scenario, organizations are striving to become leaner and evaluating options like outsourcing to reduce their fixed costs and increase their variable costs.

Secondly, with commodity prices having corrected sharply, the focus is now to extract maximum value from the supply chain, which remains the biggest area of expenditure of any organization.

Service providers like LTHE are also taking a fresh look at all our procedures, processes, and systems to identify improvements. Existing work practices are being challenged to ensure that value is being added at every step and

if not are being overhauled to remove inefficiencies.

Please share some of the key measures that LTHE is taking towards improving overall efficiency?

LTHE does not need to outsource, as we are already located in an efficient cost base unlike Australia, United States or Europe.

However, we have also taken several measures including the closure of smaller offices in India, which were not adding much value, reducing fixed costs in our International locations and by consolidating offshore operations at Mumbai and onshore operations at Vadodara respectively.

In terms of developing capability, we have a bespoke International Execution Capability Development Program underway. This program was designed in-house by pooling the knowledge gained by our people, including my personal experiences, over the years.

We will now be putting our staff through these training modules, using the facilities of L&Ts Institute for Project Management at Vadodara, to better prepare the organization for the future.

We are also running an ‘Operational Excellence Program’ to enhance our processes for sourcing of materials and services and our systems to manage receivables and working capital. Greater application of technology - digitalization – is being looked at to improve productivity and simplify processes.

We have enough headroom to easily grow our business by at least another fifty percent without adding too many resources and are just waiting for the

Most of the companies, who have belief in this industry and have managed their businesses reasonably well, see it as a great opportunity to reset their cost base and enhance their efficiency levels.

82 • December 2016

market to open up. At this point, we are critically examining every aspect of our business and taking appropriate actions.

Hopefully, we will emerge out stronger!!

Please talk about some of the major ongoing business of LTHE in India and Overseas?

In India, the biggest offshore project we are executing for ONGC is the $ 420 million Bassein Development Project, which is located off the Mumbai coast and involves a gas processing platform, wellheads, and subsea pipelines. The project is expected to be commissioned

by December 2017. In partnership with McDermott, we are also executing the S1 Vashishta deep-water development for ONGC off the East Coast of India.

In the Onshore business segment, we are executing the Melamine project for Gujarat State Fertilizers & Chemicals Limited (GSFC) at Vadodara and a Coke Drum System package for Indian Oil Corporation Limited (IOCL), at IOCL’s Haldia Refinery.

On the international front, we are executing the $ 780 million GC 30 Oil Gathering Centre for Kuwait Oil Company (KOC) in Kuwait. Recently, in consortium with our partner EMAS Chiyoda Subsea, we won the $ 1.6 billion Hasbah-II Project from Saudi Aramco, which is a very large offshore gas development project in Saudi Arabia. In Oman, we are executing two gas depletion compressor projects (SNDC2 & KDC2) for Petroleum Development Oman (PDO).

What kind of opportunities do you see for LTHE in India?

In the offshore space, ONGC will definitely continue to invest, regardless of the oil prices, because India has a strategic requirement to increase the domestic production of oil & gas. That being said, ONGC has also managed to declare pretty good results recently and they have also reduced their cost

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CEW LEADERSPEAK of production. We are expecting ONGC to move ahead with the KG basin 98/2 deep-water field development sometime in the fourth quarter of this financial year, which will be the major opportunity for us along with smaller projects like Neelam Redevelopment etc.

In the onshore mid & downstream segment, we expect almost INR 10,000 to 15,000 Cr worth of Pipeline projects, for product transportation & distribution, to come up over the near term. We do not see much scope for us in the refinery upgrades, which have been announced, as the PSUs will be utilizing EIL to execute the projects via conventional route. However, we are hopeful to participate in the development of new grass root refineries, which may come up in the near future.

Now that GST bill has been cleared, how do you see the impact on EPC companies?

It is too early to comment on the impact as a lot of the minutiae are yet to be revealed. However going by basic principles, any simplification is always good for the industry and the country as a whole as it improves efficiency and cuts red tape.

Such simplification may also help international EPC contractors in India, as they will no longer need to navigate the maze of direct and indirect taxes in each state. Overall, I think it will be beneficial for International and Domestic contractors as GST should make it easier to carry out business across the country.

How does ‘Make in India’ help L&T and other private players of the countr y to take advantage of this situation?

L&T has invested significant amounts of capital in setting up world-class facilities for hydrocarbon, power, heavy engineering, shipbuilding and defence sectors. However, it is a 84 • December 2016

source of frustration for us that the utilization factors of these assets are less than ideal.

We would be extremely happy if we are able to put these ‘national’ assets to productive use through the ‘Makein-India’ campaign. However, at this point of time, in most sectors, L&T is competing openly with foreign players in what is essentially an uneven playing field, as our cost and taxation structures are quite different compared to our foreign peers. Further, there is no doubt that individual customers will prefer open competition in order to access the best solution.

Hence for the ‘Make-in-India’ campaign to be a real success, the government has to find a way to create a level playing field by ironing out anomalies in the taxation structure and taking some steps to implement a ‘Preferential Pricing’ mechanism which will maximize the utilization of the domestic manufacturing base, provide further encouragement to Indian suppliers and service providers and aid employment generation in the country.

also emphasize that ‘International’ is a very wide term and you need tailor made plans for each country and region as what works in a particular country may not work in another, even within the same region. Evolving into an international contractor has to be a gradual process and every organization has to necessarily traverse this learning curve.

Coming specifically to the Indian context, technical skills is not really an issue as India has the largest technical resource pool in the world.

Indian Contractors need a better understanding of international market dynamics, financing and above all, they need to get their execution strategy right.

What will be your message to the industry?

It is a great opportunity to reflect, introspect and to implement new ideas, which could not be done in the past – This is a great time for course correction.

Ultimately, I believe everyone should take a long-term national view and not restrict ourselves to an individual or company level. I think we are going through this transition process and we need to see how it will pan out.

You have extensive experience of executing international projects. In your view, what are the gaps that the Indian EPC companies need to address to be successful in other geographies?

As an EPC contractor, when you target a particular project or geography, you need to carefully assess your gaps in terms of technical capability, local domain knowledge, and the financial wherewithal to execute the project and then address them either inhouse or through collaboration. I must Chemical Engineering World

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CEW LEADERSPEAK

“Outokumpu: A Stainless pillar to support Make in India and Zero Defect Vision of the Prime Minister” With a decade-old presence in the Indian Stainless Steel Industry, Outokumpu India Pvt. Ltd has played a vital role in strengthening qualitative aspirations of the end users in their quest to achieve the Zero Defect, thus contributing to their commitment of building corrosion free India. Speaking on the eve of successful completion of a decade serving the industry with its new age products and applications for stainless steel, Yatinder Suri, Managing Director & Country Head, Outokumpu India Pvt Ltd discusses about setting up well-known European brand in India, India’s growing stainless steel demand, Duplex Stainless Steel solution, Global Sustainability Benchmark, Make In India initiative and company’s future in an interview with Mittravinda Ranjan.

Congratulations on successful completion of a decade at Outokumpu India Pvt Ltd. Please share insight into the journey till now since its Indian establishment in 2006?

grades for hostile applications. From day one, we declared a war against corrosion in India.

Naturally, so because if you trace the origins of stainless steel, you will find the same in Outokumpu.

Please elaborate on challenges faced during the initial phase of setting up wellknown European brand in India?

The initial challenge was to create awareness about corrosion mitigation by using the new age products. We had to break the myth about stainless steel being expensive by enlightening the end user and educating the consultants and the decision makers on the competitive advantages they could derive. First few years were spent educating stakeholders, doing workshops, sharing ideas and knowledge through presentations, brochures and technical specification

In your opinion, what opportunities did India offered decade ago for MNCs like Outokumpu to enter the Indian market?

Outokumpu came to India in 2006 with new age products and applications that didn’t exist in terms of wider product forms and specialty 86 • December 2016

handbooks. We continue doing this even today since our advanced R&D set up keeps inventing new products and creating new applications every year.

From the first baby steps from New Delhi, we are now present in four locations i.e. Mumbai, Baroda, Delhi and Chennai - all stainless steel intensive regions. The stainless steel intensity in the eastern parts of the country is nascent so we are nurturing it from Delhi at the moment till it reaches the inflection point. Western India uses about 52 per cent of the total stainless requirement, 32 per cent comes from the Delhi area and around 15 per cent comes from the South which is growing pretty fast now.

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CEW LEADERSPEAK The per capita use of stainless steel in India is less than 3 kg as opposed to that of >12 kg in China. The “Make in India” campaign will improve our manufacturing base and the need for stainless steel for industrial equipment will increase. Hopefully, in the next decade we can aim to achieve per capita mark of 5 kg.

In 2013, we celebrated 100 years of Stainless Steel by organising a conference in New Delhi with a theme – Building Corrosion Free India.

To be very honest, our presence in India in past decade has strengthened the qualitative aspirations of the end users in their quest to achieve the ZERO DEFECT and MAKE IN INDIA FOR THE WORLD vision.

Outokumpu caters to an array of manufacturing industry. Please share insight into the prospects of stainless steel in terms of infrastructure in India?

What assistance does the company provides to the local industry on its efforts to reach ever higher quality and efficiency standards?

Outokumpu offer the broadest range of stainless steels to meet the exacting standards of today’s emerging megatrends due to robust economic growth in India.

Whether the application areas are in hinterland or the applications are onshore or offshore, upstream or downstream, we have the appropriate grade of stainless steel to neutralise the corrosive environment and retain the aesthetic beauty of infrastructure investments.

Our Duplex and Super-Duplex Stainless steel products offer profitable and competitive advantages to the project owners in Oil storage , chemical storage, distribution pipelines, Metro coaches, Railway coaches , Railway wagons , Road and Rail bridges , skywalks , Chemical tanker ships , Food processing, Desalination, water treatment , storage and distribution systems.

Duplex storage tanks have also been made to store oils and corrosive chemicals in tank farms at sea ports. Stainless steel is preferred for desalination of sea water into drinking water and also for drinking water storage and distribution for humans in safe and hygienic manner. Railway coaches, Metro coaches, 88 • December 2016

wagons will become maintenance-free and lighter to save on haulage energy as well as wear-and-tear costs. Railway bridges along coastlines will also become maintenance-free with the use of Duplex stainless steel. As the nation upgrades to Euro VI in auto exhaust emissions, there will be a need for micro alloyed heat resisting grades of stainless steel from Outokumpu These are some of the new applications we are supporting successfully for the emerging Indian infrastructure as well as smart cities.

Outokumpu stainless steel products have been used for decades in various oil and gas applications including flowlines, umbilicals, manifolds, heat exchangers, burners and flarers, structural components and safety systems As one of the largest suppliers of stainless steel for the oil and gas industry, we offer NORSOK approved Duplex and austenitic grades .

For subsea processes the areas, our stainless steel plays vital role: •

Combatting corrosion in flowlines: CO2, chlorides, H2S, the formation of water condensate, as well as high flowrates and temperatures require the toughest materials, e.g. LDX 2101® or 2205.

•

Welded tubes for umbilicals: Welded stainless steel tubes have replaced seamless stainless tubes in recent years with LDX 2101®, 2304, 2205, SAF 2507® offering good choices.

•

Ease of welding and top durability for wellhead equipment and Xmas trees

•

As H2S rises, risk of SSC or hydrogen embrittlement requires LDX 2101® or 2205, which are also formable and easy to weld. Also possible are SAF 2507®, 254 SMO®, 1.4565 and 1.4529.

•

For topside construction the critical requirements areas are:

•

Superior strength and minimum maintenance are required for blast, firewalls and living quarters where 1.4404/316L and 2304 offer the necessary properties, while 2205 is recommended for areas requiring even greater corrosion resistance.

•

True safety and cost-efficiency are needed for cable trays, stairs, tread plates and walkways.

Although 1.4404/316L has become the benchmark, LDX 2101® and 2304 combine high mechanical strength and excellent corrosion resistance to form a far more economical choice.

•

For piping and related applications the functionality is critical in terms of:

•

Extreme performance is vital for main process piping where extreme conditions require extreme measures, for which 2205, SAF 2507® and 254 SMO® are perfect choice.

•

Enhanced corrosion resistance for oil and gas coolers is needed since many of the tube heat exchangers in oil & gas coolers use seawater as a coolant. The enhanced corrosion resistance provided by 254 SMO® or SAF 2507® are ideal.

•

The fluids in manifolds are just as corrosive as in main process piping.

When pressures are high, 2205 and SAF 2507® are perfect choices.

At higher temperatures and for better corrosion resistance, seawater piping with 254 SMO® and 1.4529 have been highly successful in systems operating at up to 30° C. Combined with 1.4565 for flanges or other parts prone to crevice corrosion, service temperatures can be increased.

Referring to some successful cases, for Al Shaheen oil field project in Doha , some of the pipes for sensitive sections in the top side equipment on the offshore platforms were exposed to very high corrosion, especially due to the aggressiveness of crude oil, the super-austenitic grade 254 SMO® was used.

Gansu Lanke Petrochemical Equipment of China has extended the service life of its oil refineries from 1-3 months to 2 years and beyond by using Outokumpu grade 2205 duplex stainless steel in plate air-cooler and plate shell heat exchangers.

Sosta used Outokumpu 2205 duplex stainless steel coil to manufacture welded Duplex stainless steel flow-line pipes for a natural gas flow line at the Burhan West field in Oman. The project is developed by Petroleum Development Oman.

Chemical Engineering World

CEW LEADERSPEAK In India too, looking at the diverse and on project experience of Outokumpu expertise, Outokumpu is in discussions with many local oil companies to opt for Duplex solutions. The outcome is very positive.

As per World Steel Association report, India’s steel demand will grow at 5.4 per cent to 88.3 MT in 2017. In your opinion, what key growth drivers will fuel this demand?

With low oil prices, reforms and policies to increase infrastructure and manufacturing output. How brightening is India’s prospect as world’s third largest steel producer?

China’s slowdown has impacted its steel demand. According to you, how will it impact global market demand & India in particular?

Stainless steel production share is around 4 per cent of the total steel production in India as against the global average of 2.5 per cent. Sadly enough the per capita use in India is barely 2.5 kg as compared to 12 kg in China. This is because of our low share of manufacturing in GDP i.e 14 per cent only as compared to 44 per cent in China.

India needs to pursue accelerated substitution strategy to replace carbon steel with stainless steel to create surge in demand for stainless steel which will also eliminate the current over capacity in the long products as well as flat products segment.

There are over 400 grades of stainless steel which can be used for the diverse range of applications depending on the operational environment. In India the dominant demand comes from the utensils and kitchenware application segment which is using nonstandard grades with production share as high as 60 per cent. This is the lowest end application growing @ 6 per cent annually being catered to by over three dozen induction melting route manufacturing units as well as the four integrated manufacturing plants. This is also the grade which has seen flooding of imports. It is unfortunate that the stainless steel quality control order excludes this non-standard grade from its purview and thus the flood of imports in this 90 • December 2016

non-standard grade continues unabated.

This must be stopped if India wishes to succeed in its intent to serve the Make in India for the World vision. To become a hub for manufacturing quality products for the world, conforming to international standards is the first step.

The industrial and infrastructure applications constitute 35 per cent of the overall demand (around 800,000 tons per annum). As our economy is stepping up the GDP growth, stainless steel for industrial applications is observing the fastest pace of growth, as high as 1520 per cent. The capital goods segment is also enhancing its presence in global markets with stainless steel conforming to international standards. With banning of seconds and defectives by stainless steel quality control order, the demand of prime products will increase further.

Corrosion is a serious issue in India due to our long coast line of 7000 kms. Hence all steel related infrastructures must use stainless steel mandatorily. Almost 4 per cent of our GDP is lost to corrosion and being cash starved nation, we cannot afford the luxury of allowing infrastructure built with carbon steel to corrode.

Corrosion Mitigation is a national priority now. Stainless steel usage will eliminate the extra cost of replacement or frequent repairs. Stainless steel is cheaper than carbon steel on life cycle cost basis.

In 2015, the Government had imposed an anti-dumping duty ranging from 5 to 57 per cent on import of cold-rolled flat products of stainless steel from China for five years. Please share insight into your thoughts on this?

The domestic stainless steel manufacturing industry is facing problems due to high level of imports at low prices as well as overcapacity which is as high as 50 per cent. In zeal to fill capacity, there is a downward spiral in prices which hurts every domestic mill in the long run.

Imposing Anti-dumping duty on dumped imports is the fairest way to eliminate unfair competition due to dumping.

With reduced imports, the domestic players surely need to follow a responsible pricing strategy to improve their bottom lines. Product upgradation from plain Vanilla grades should also be a strategy to expand the pie.

Domestic sale and Import of Defectives, second choice stainless steel materials as well as products not conforming to International standards should be banned.

This will automatically curb imports in a big way and create profitable demand for prime products from domestic mills.

The import duty structure should be logical to ensure that demand for domestic stainless steel from downstream end users is healthy and end users will also be protected from unfair dumping of imports.

There is no R&D capability in domestic stainless industry. Government should encourage co-operation between the global majors and local mills to upgrade domestic capabilities in the long run which will increase sale of domestic mills profitably.

India must follow BIS as well as international standards to ensure that Indian products travel to all regions of globe and serve Make in India for the World vision.

Over the last 3 decades, premature deterioration of reinforced concrete structures has become a serious problem globally due to corrosion of the embedded steel. How beneficial will stainless steel reinforcement solution prove to be for the industry?

How Outokumpu does plans to overcome the issue as well assist the industry with its Duplex Stainless Steel solution?

Outokumpu is committed to make India corrosion-free. India has extremely ambitious growth plans and infrastructure will play a pivotal role. The long Indian coastline of 7000kms faces the vagaries of highly corrosive environment. Duplex stainless steel is the answer and there are plenty of global success stories where duplex structural elements and reinforcing bars have been used to achieve more than 100 years of maintenance-free life.

Chemical Engineering World

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CEW LEADERSPEAK The new application area of the stainless steel rebar usage along the coastal areas is an idea whose time has come. More logically for civil RCC structures in coastal and hilly regions, if stainless steel rebar is used selectively, the cost of the project could go up by less than 1 per cent, but the maintenance free life can go beyond 100 years. We have actively supported the preparation of a BIS standard with samples, test data and very soon the standard will be released in print.

The Outokumpu vision is to create a world that lasts forever; we are pursuing this vision aggressively in India as well. With the largest R&D set up, a wide range of high performance grades makes us a standout amongst the competition to cater to all process and environment conditions. Our willingness to share our 100 years of experience with end users is yet another impactful differentiator in the competitive arena.

As per Dow Jones, Outokumpu enjoys global benchmark in sustainability in steel segment. Please elaborate on company’s varied sustainable initiatives in India?

What is the significance of stainless steel in the context of sustainability?

Sustainability has always been, and continues to be, a key element of our strategy. Stainless steel is 100 per cent recyclable, corrosionresistant, durable, hygienic material and the environmental impacts resulting from its use are almost non-existent.

products’ environmental footprint, making us one of the global leaders in sustainable stainless.

India being a developing country with limited financial resources needs sustainable infrastructure. Our innovative sustainable products have made Indian end users competitive in the global markets and even the domestic industry has gained knowledge from the products and applications which India is not capable to offer currently.

Our in-house research and development on products and processes is the largest in the world and has led to development of many new grades and applications. Being the oldest and emerging leader in stainless steel, we have so much to offer to India. The nation needs us and we are ready to do our best to build Stainless India.

Please share your views on “Make In India” initiative?

Stainless steel is the fastest growing segment of the metals industry, its applications are diverse and new applications are constantly being developed. The demand for the corrosion free metal is on increase. Indian stainless steel production is mostly in low end grades and applications which is a barrier to go global. R&D is an area where India needs support from global leaders like Outokumpu so as to develop capabilities to Make In India for the world.

Outokumpu strongly believes that stainless steel is the key building block for a sustainable future, playing an important role in the sustainable development of global infrastructure. New business opportunities are emerging from humanity’s growing demands for clean energy and pure water.

Renewable energy solutions such as solar power, hydel power, biofuels and wind energy require components and materials that can be sustainably sourced and yield low life cycle costs. Stainless steel is an optimal choice in such areas.

We are well established in the Indian market as a leader in stainless innovations. Our Corrosion Handbook is a guide to the end users on material selection since it contains the wisdom we acquired in last 103 years of stainless innovations. The local competition is emulating us in developing new grades locally. Our presence strengthens and enhances the capability of local players to fulfil the Zero Defect and Make In India vision of the government. The Indian economy is embarking on a robust planned growth trajectory at the moment with strong positive trends to serve all regions of the world.

We strongly believe that our integrated production routes with high proportion of recycled steel (>80 per cent), energy efficiency and low-carbon energy (>80 per cent) have enabled us to systematically decrease our

India and USA have signed a vision statement which aims to make India corrosion free. This is a very healthy development which will support our efforts to eliminate corrosion in infrastructure and industrial applications

92 • December 2016

with improved metallurgical products. It is an ongoing activity and already there are many visible successes and milestone achievements.

What are the future plans of the company in India?

Outokumpu having been a leader in high performance stainless steels and running the most efficient mill serves the world with the full range of high performance stainless steel. With our expertise and experience in manufacturing advanced and sustainable materials, we are reducing the pace of consumption of our mineral resources in the planet and thus in a significant way making the world last forever.

Talking about India, the industrial and the infrastructure applications constitute 35 per cent of the overall demand (around 700,000tons per annum). Since the range of production capability of domestic integrated plants is rather limited at this point of time, imports are vital to meet demand for high end advanced materials for the accelerated infrastructure growth. Outokumpu presence in India is very relevant for the emerging high end grades and higher dimensions.

Being the oldest and largest stainless steel player in the world, we have positioned ourselves as the wise stainless men who are educating the domestic end users on new grades and applications and also giving new opportunities to the domestic mills to learn from us and upgrade their capabilities. We are here to grow by actively supporting and serving the Zero Defect and Make In India for the world vision.

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Building Economies of Scope for Business Value Creation In terms of value, the specialty chemicals market size is projected to reach $470 Billion by 2020. “Despite being a huge consumer market, the per capita consumption of specialty chemicals is one of the lowest in India as compared to other emerging economies, says Ajay Durrani, Managing Director Covestro India Private Limited, in an exclusive interaction with Chemical Engineering World.

He adds, “As chemical industries are not labour intensive, India should focus on creating economies of relevant scope rather than emulating other countries and focusing solely on capacity building.”

What is your outlook towards the global and Indian specialty chemicals industry?

After suffering an adverse impact during recession, globally, the specialty chemicals industry has grown steadily and will continue to grow at CAGR of more than 5 per cent between now and 2020.

Globally, specialty chemicals industry is in a phase of transition. The rapid growth of the newly industrialised Asian and Middle Eastern economies and rising standards of living in these emerging economies, has led to the increased demand from these regions.

This development has shifted the centre 94 • December 2016

of gravity of the global chemical industry towards the emerging economies.

In India, the specialty chemical is one of the fastest growing sectors in the chemical industry and is growing at a rate of about 15 per cent per annum, thanks to exports as well as encouraging opportunities in the domestic market.

India’s share in global specialty chemical industry is estimated to grow from about 2.8 per cent in 2013 to 6-7 percent in 2023, with a market size in the range of $ 80-100 billion.

Despite improving levels, the per capita consumption of specialty chemicals in India is one of the lowest in comparison with developed and other emerging markets.

However, with focus on availability of improved products and usage intensity coupled with high growth in the end-user industry, I feel that the industry is poised for strong growth in India.

If you look closely at India’s specialty polymers portfolio of - commodity polymers, mid-range polymers, high performance polymers and ultra-polymers; it is heavily inclined towards mid-range Chemical Engineering World

008

CEW LEADERSPEAK polymers and forms approximately 95 per cent of market share and the share of high performance and ultra-polymers stands at around 5 per cent. What are your thoughts on such wide gap between the end-user segments for the specialty polymers in India?

High performance polymers are a class of polymers which differ from commodity and mid-range polymers due to their better mechanical properties and high chemical and heat stability. Due to their better thermal stability the high performance polymers require special machinery. Also high performance polymers are more expensive than the mid-range polymers as they cater to superior design and technicality. With no certainty of significant price declines in the near future — since investment costs for production equipment, R&D and high distribution costs remain constant — the industry would remain inclined towards the mid-range polymers.

What is the scope of opportunities at present for the specialty polymer manufacturers in the space of high performance and ultra-polymers currently in the Indian market?

Opportunities for high performance and ultra polymers is high as these polymers are being increasingly used in every aspect of our lives such as automotives, defence, energy, medical, sports and electronics. Due to the high thermal and chemical stability these polymers are excellent materials for the harsh conditions. The complete effect of National Policy on Electronics will offer huge scope.

What are your thoughts on impact of the Make in India campaign in the near foreseeable future on specialty chemicals industry in the advanced polymers in India?

The ‘Make in India’ campaign by the Indian government will help boost the speciality chemicals industry in India which is driven by three main factors: Growth in key consumer industries such as electronics and automotive; rising consumer needs due to demand in durable electronics and lightweight and strong automotive parts; and 96 • December 2016

new manufacturing processes leading to upgraded equipment.

We would also urge Indian government to focus on creating business value for attracting chemical industries. As chemical industries are not labour intensive. India should focus on creating economies of relevant scope rather than emulating other countries and focusing solely on capacity building.

As of now India lacks a well-established manufacturing base for advanced electronics, semiconductors, smart devices and medical devices. What steps do you think should be taken by the industry and government in concurrence as way forward?

The government has taken cognizance of the lack of indigenous manufacturing capabilities for electronics system design and manufacturing. In this regard, the government launched the National Policy on Electronics 2012 which aims to transform the domestic electronic hardware manufacturing segment into a $ 400 Billion industry by 2020. The proposed national policy has the potential to be a game-changer for the country with far-reaching consequences. The policy aims to address the huge gap between locally produced electronics and the domestic demand for electronics in India.

In order for the policy to be truly effective, during its implementation, the industry and government need to work hand-in-hand.

The objective should be to enhance the limited knowledge of the diverse nature of manufacturing technologies for advanced electronics and smart devices. The Government should also develop effective and appropriate regulatory framework and thus provide guidance & advice to meet the legal obligations and safety of consumers.

Please talk about Covestro’s unique specialty polymers portfolio and presence in the Indian market. Which segments will drive the growth of Covestro in India in the near foreseeable future?

Covestro is one of the leading polymer companies in India and supplies high-tech

polymer materials and application solutions for the Indian sub-continent including Nepal, Bangladesh and Sri Lanka. Our three key supply areas - polyurethanes, polycarbonates and coatings, adhesives, specialties are growing rapidly. In India, our biggest segments are automotive, foam and furnishings, and electronics.

We have three manufacturing plants across the country at Greater Noida, Ankleshwar and Cuddalore to support the needs of the Indian market. We manufacture polyols at our Greater Noida facility, and polyisocyanate at the Ankleshwar facility for coatings. In our commitment towards the ‘Make in India’ campaign we have expanded our manufacturing capacity at Cuddalore in Tamil Nadu for production of Thermoplastic Polyurethanes (TPU) to cater to footwear, IT, cables, industrial mechanical, automotive, compounding and films and coatings segments.

In the near foreseeable future, growing interest towards high end automotives will drive the demand for polyurethanes, coatings and sealants in India; whereas the green and sustainable lighting solutions such as LEDs will drive the market for polycarbonates.

With the presence of many global players already in the market and manufacturing facilities in India, how do you plan to be competent in the Indian market?

Covestro is a highly innovation driven organisation and offers a wide range of a product portfolio. We are well established and command a respectable share of the market. We are growing more than the GDP of India which is a testament of our business performance in the country.

Moreover, our recent commitment to expand the Cuddalore facility for production of Thermoplastic Polyurethanes (TPU) is aimed at increasing our service to the footwear, IT, cables, industrial mechanical, automotive, compounding and films and coatings segments highlight our competitiveness.

There is a generic view that bringing regulatory guidelines across the enduser industries of specialty chemicals like Chemical Engineering World

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CEW LEADERSPEAK automotive, packaging, construction, paints and coatings etc. help increase demand of specialty chemicals.

Strong and robust regulatory frameworks across end-user industries will undoubtedly aid speciality chemicals industry to grow in the right direction towards sustainability. For example, a regulatory focus on reducing pollution or sustainable energy could have tremendous upside for speciality chemicals.

Hence, such guidelines will not only drive the demand but would also help in leveraging best solutions available globally.

How have things changed for the company since the organization acquired a new identity?

Since September 1, 2015 — when Covestro became completely independent from the Bayer Group — we have been performing extremely well. We are listed on the Frankfurt Stock Exchange since October 6, 2015, and

have also been ranked among the top 80 companies in Germany. Our shares were oversubscribed by three times; thus indicating good market sentiment towards the company.

What are the challenges for in this domain in the foreseeable future and how do you plan to capture growth opportunities?

While plastics industry plays an important role in shaping the national economy and offers tremendous scope for growth, it also faces several sustainability challenges. Issues such as plastic waste management and recycling require special attention from us in terms of providing sustainable solutions. Though we have challenges in terms of low capita consumption of plastics in India, increased growth in end-user industries could propel the growth of plastics in India since the full potential of plastics in various industries such as construction, food processing and electronics is yet to be realised. We plan to capture these upcoming opportunities by our

focus on customer centricity and being close to market. A number of projects are now being driven by our team in close partnership with customers and I will confidently say that we are creating the opportunities in the market.

Tell us about the role the Indian arm playing in the global growth strategy, new investments and expansions in the Indian market.

We are currently not looking at expanding or having any new investments in India since we have sufficient production capacity to support the Indian market which we will be aligned to the local needs at an appropriate time.

Covestro India plays a very important role in the global growth strategy. As markets world over plummet due to economic slowdown, Indian markets provides us with opportunities to further our R&D. To cater to the Indian market, we have well-established manufacturing and technical development facilities across the country.

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Chemical Engineering World

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CEW LEADERSPEAK

“Heavy Engineering Industry to Witness Opportunities in Nuclear Power, D e f e n c e and Process Sector” Customers are becoming more demanding and also looking for long term partnerships, based on trust and transparency. The organizations need to be agile in responding in time, to customer queries. Customers nowadays expects complete transparency from suppliers and are interested in long term relationship which will help both parties in the long run says S N Roy, Member of Board & Whole-time Director, L&T (Power, Heavy Engineering & Defence) in an exclusive interview with Chemical Engineering World.

What are the factors responsible which has resulted in significant underutilization of capacity?

Heavy Engineering is the workshop to all industry. It’s where the machinery and equipment that serves a wide range of sectors get made. You name it –power, defence, oil and gas, refinery, nuclear, chemical and petro-chemicals, machine tools, consumer durables, fertilizers, automobiles, textiles, steel, cement, paper, construction, mining – heavy engineering keeps them all humming. The current share of national manufacturing is 16 per cent of GDP, which Government Chemical Engineering World

plans to increase to 25 per cent by 2022, through its ‘Make in India’ program.

Despite its almost ubiquitous application, Heavy Engineering around the world has faced many headwinds recently.

It has been buffeted by slowdowns, postponement, and / or outright cancelation of major projects. This hit is broadly due to domino effect of depressed oil prices, the nuclear incident in Fukushima, Japan, slow moving defence procurement procedures in India, EU depression and the crash of steel prices etc. When economies are ailing,

Heavy Engineering runs a temperature. It requires sustaining power, deep pockets and you need to build large capacities that may sometimes lie dormant. Clearly, it’s not a business for the faint of heart!

Having said that, I think the worst is behind us, and the industry is readying itself to move forward with positive sentiments.

India’s Machinery and Capital Goods Industry is composed of a mix of government owned and private companies as well as the giant capital goods manufacturing MNCs. How has this affected?

December 2016 • 99

CEW LEADERSPEAK fear that data confidentiality of data may be breached.

Overall India’s indigenous equipment manufacturing sector?

Equipment manufacturing organisations which are a part of large EPC conglomerates vis-à-vis standalone equipment manufacturers?

•

Sometimes the manufacturer might have to play by the EPC’s rules even if it means loss of clientele, business, time or profits.

I am of the opinion that once the economy gets going, there will be room for all - manufacturers who are part of large EPC conglomerates as well as standalone equipment manufacturers.

Each has its pros and cons.

•

As the scale of operations of the EPC is massive, usually by default it is ensured that the EPC is given the priority at times in the conflict of interests

Order Management: Manufacturers and their parent EPCs can mutually benefit from each other where EPC can get orders which are given to the in-house manufacturing unit to supply the equipment Economies of scale: EPC Companies can utilize the benefits of economies of scale to procure raw materials at a cheaper scale, hence decreasing costs and being more competitive EPCs can provide easy and economical access to warehouses / storage facilities, engineering capabilities and transportation / logistics capabilities, thereby providing a one stop solution, for the manufacturer This model provides ease in project management, contract management and related complexities Optimised Financial Management: The manufacturer along with EPC, has an advantage of strong financial management by optimising working capital expenses, having common cost heads, thus creating a win-win situation for both EPC and manufacturer and increasing the bottom line.

There is a bit of downside too: •

Other EPC companies may treat the Manufacturer-EPC with trepidation.

The manufacturer might not be considered for certain projects for

100 • December 2016

T h e evo l v i n g m a r ke t h a s p a ve d w a ys f o r c h a n g i n g d y n a m i c s o f c u s t o m e r ’s b e h a v i o u r, leading t o c h a n g e i n m a r ke t d e m a n d a n d s i g n i f i c a n t i n c re a s e i n a d v a n c e d t e c h n o l o g i e s. I n yo u r v i ew h ow f a s t i s t h e I n d i a n m a r ke t evo l v i n g a n d re s p o n d i n g t o t h e m u c h needed demand of advanced t e c h n o l o g i e s i n n e a r f o re s e e a b l e f u t u re - b o t h a s a c o n s u m e r a n d a s a m a n u f a c t u re r ?

How competitive are Indian manufacturers of heavy machinery and equipment compared to their foreign counterparts?

What are the opportunities for domestic manufacturer in evolving Indian market as well in matured international markets?

What are the challenges for domestic manufacturer in evolving Indian market as well in matured international markets?

Customers are becoming more demanding and also looking for long term partnerships, based on trust and transparency. I feel organizations need to be agile in responding in time, to customer queries. Customers nowadays expects complete transparency from suppliers and are interested in long term relationship which will help both parties in the long run. These days a complete value proposition makes a greater impact in comparison to the price, which is no more, the sole differentiating factor.

Customer demands are ever increasing and we need to be open and flexible in

dealing with the changing requirements.

Most clients are willing to collaborate in drawing up a common, mutuallyacceptable solution that serves the interests of all parties. And to sustain long term relationship between both the parties, a structured and transparent claim management system is preferred to take care of interests of both the parties.

As I see it, the Heavy Engineering industry will witness a number of opportunities in the areas of Nuclear Power, Defence and Process Industry. Let me list out the opportunities: Nuclear Power: With a focus on generating clean energy, the Government has plans in place to construct 12 indigenous Nuclear Reactors and 16 Foreign technology Nuclear Reactors in India. This opens up great potential for Heavy Engineering.

Defence Sector: India is seeing a spurt in investments and indigenisation initiatives in the Defence Industry. A large number of projects and capital acquisition by the Indian Armed Forces are on anvil. This includes acquisition of six diesel fired submarines, an aircraft carrier, a programme to refit some aged submarines, a new class of warship, landing platform dock – a platform for helicopters and to carry battle tank and army, shallow water antisubmarine crafts, artillery programmes (Tracked SP Gun, Ultralight and Towed Gun), futuristic infantry combat vehicle (FICV) and a number of land-based platforms etc. I am sure that the Heavy Engineering industry is keenly waiting for all this to move from planning to procurement stage.

Process Plant Sectors (Power, Petrochemicals and Fertilisers): A combination of a recovery in crude prices and implementation of stricter emission norms (i.e. Euro 5/6 internationally and BS VI in India) is Chemical Engineering World

LEADERSPEAK CEW resulting in newer, large scale plants coming up worldwide. There are good opportunities in Asian & African markets (as the economies develop), with new refinery, petrochemical and power plants coming up. Many plants in the fertilizer and refinery sector are ageing which translates into excellent potential for revamp and upgrade.

All of these factors will result in great potential for heavy equipment manufacturers in the years ahead.

Challenges: No opportunity is without its own set of challenges. Here are some of the challenges I envisage the Heavy Engineering industry in India will need to counter.

•

Lack of indigenous material sources

major

•

Higher interest cost and inflation

•

Poor transportation infrastructure in India

•

Forex volatility

•

Excess capacity in the global market coupled with poor investment appetite

•

Dearth of young talent who prefers working in the service industry instead of manufacturing.

•

Cartelizing by integrated players

and

raw

power

Availabilit y of skilled workforce is one of the key challenges that are looming over heav y engineering sector. Even on the global scale, India ranks 45 in terms of availabilit y

of scientists and engineers and 130 in terms of qualit y of scientific research institutions. How does it affect the heav y industries sector?

As an organization, how do you address the issue of training & retaining the human resources for the future and cultivate the culture of innovation?

In today’s knowledge economy, expertise and experience is a key differential. In the manufacturing industry, dealing with high-end technology, a person’s experience and knowledge could spell the difference between winners and also-rans.

Retaining talent has become more challenging in today’s VUCA world for two reasons. One, increasing Gen Y workforce is more demanding in terms of work-life balance, culture, career growth & challenging work. Two, in today’s highly connected & competitive world, employment opportunities for the talented is a fingertip away.

At L&T, we are working towards building capability for the future and retaining talent, through various initiatives. A few of them include •

A structured 7 step leadership development framework for building employees’ capabilities and talent pipeline at all levels in collaboration with world’s finest management institutes

•

A project management institute and a learning academy for various technical & behavioural training programs

•

Talent Mobility Policy where employees are given opportunities to acquire new skills & work in challenging

assignments (India & Abroad – Foreign Postings etc.) through job rotations •

Platforms for fostering innovation and knowledge sharing through culture of cross-functional collaboration

The GST Bill has been passed by both the houses & is all set to be implemented across the spectrum of various industries in the country. How do you see the impact of its implementation on the heavy equipment manufacturing industry?

In your opinion, what are the lacunae that still need to be addressed to create a level playing for Indian manufacturers in the domestic market; and building globally competitive industry?

Let me say that GST is a game changer.

Its implementation will change the manner in which business is carried out in comparison with the ways of the current tax regime. With a single rate being applied to all goods and services, there will be a significant redistribution of taxes across all categories resulting in reduction in taxes on manufactured goods and hence impacting the pricing of the product, positively.

The most important benefit of implementing GST is that it would integrate the economy and provide for a common national market. This in turn will help in delocalization of ordering and hence will place all vendors on same platform instead of dividing them into geographic regions.

Paper work and logistics will also be reduced which is another way where money can be saved.

Though there will be minimum impact of GST on export orders as

In today’s knowledge economy, expertise and experience is a key differential. In the manufacturing industry, dealing with high-end technology, a person’s experience and knowledge could spell the difference between winners and also-rans.

Retaining talent has become more challenging in today’s VUCA world for two reasons. One, increasing Gen Y workforce is more demanding in terms of work-life balance, culture, career growth & challenging work. Two, in today’s highly connected & competitive world, employment opportunities for the talented is a fingertip away.

Chemical Engineering World

December 2016 • 101

CEW LEADERSPEAK they are mostly exempt from most taxes, it will certainly be a boost to the domestic market.

Under the “Make in India” initiative, domestic manufacturing supplemented with beneficial incentives has being promoted extensively.

According to you, how beneficial would it prove for the Indian Capital Goods Manufacturing sector?

The initiative has paved for accelerated growth opportunities in sectors like Automotive, Engineering, Chemicals, Defence, etc. How L&T does plans to leverage the opportunity?

Let me say that L&T has championed ‘Make in India’ long before it was announced as a national programme.

This is an excellent measure to promote domestic production coupled with increase in ease of doing business, foreign direct investments, skill and jobs for the youth and national manufacturing. In my opinion, the programme will have a huge positive impact and will help in developing domestic suppliers’ thereby reducing delivery time and costs, making India much more competitive in the long run.

However, for ‘Make in India’ to be truly successful, I feel multiple follow up steps from both government and companies are essential. Companies should take the effort to adhere to or upgrade to global quality standards, sensitise employees to IPR & other trade confidentialities and introduce a greater measure of transparency and flexibility in customer dealings.

Simultaneously, in its part, the government should support these initiatives by ensuring that there are adequate barriers to price dumping by foreign companies and safeguards for domestic produce.

They also ought to assist companies for doing business in countries with high risk and encourage the Government / PSU bids to ensure indigenisation, reduce 102 • December 2016

profitable products from the portfolio

cost of capital etc. to ensure long term success of the programme.

•

What is the present size of order book at present for L&T Heavy Engineering Division and please share insights into the some of the key ongoing projects and future projects.

Planet (Energy Conservation and Green Initiatives):

What are the future plans of L& T for Indian Capit al G oods M a nuf acturing Sector?

As stated in our Annual Report, L&T Heavy Engineering has an Order Book of ` 7507 Cr., as on March 31, 2016, - a 10 per cent decline y-o-y basis. Recently, we have completed our exercise of fiveyear strategic plan with goals i.e. Lakshya 2021, wherein we have plans in place to increase the order book and bottom line.

Considering factors like the revival in oil prices, the thrust by government towards new nuclear power projects and increase in defence capital acquisition through indigenisation, we see good opportunities in the times ahead.

L&T Heavy Engineering regularly discloses its sustainability performance across the triple bottom line. I feel that sustainable organisations are the ones that will navigate the future best. Our plans across the triple bottom line are as follows:

•

Creating unique selling proposition and generating key differentials in selected products to help increase the bottom line

Our major plants - Hazira and Powai – the manufacturing base for Heavy Engineering - use 50 per cent & 22 per cent renewable energy respectively

•

All

our

campuses

are

‘Zero

Discharge’, i.e. we don’t release any waste into the environment •

Most of our plants (Hazira, Powai, Vadodara,

Talegaon)

are

water

positive: •

Consume less than what we conserve through various measures

•

Use of energy efficient manufacturing methods in welding, fabrication, heat treatment & various other stages of manufacturing

•

Use of variable Frequency Drives in overhead cranes & machine tools, so as to conserve energy

•

Transition to energy efficient LED lights for plant as well as offices is in progress. We also have several

People:

green buildings in our campuses

•

Taking care of all stake holders and creating value for them

40

Increasing morale of employees and preparing them for future endeavours and greater responsibilities

30 per cent reduction in overall

•

•

per

potable

cent water

reduction

in

consumption

and

energy consumption

Treating supplier as partners and developing a long term, mutually beneficial working relationship which will help both the partners flourish together

Profit: •

Concentrating more on lucrative business opportunities and high profit jobs, while pruning non-

Chemical Engineering World

LEADERSPEAK LEADERSPEAK CEW

“The Industry both globally and in India has remained well balanced in terms of demand and supply equilibrium” GHCL strongly believe that to maintain sustainability in business it is of paramount importance that one should focus on all its stakeholders which results in operational harmony leading to long term business sustainability. It has been actively working towards meeting its corporate social responsibilities, says R S Jalan, Managing Director, GHCL as he discusses about GHCL’s expansion plans, Anti-Dumping duty, Sustainability, Effects of China’s slowdown, Goods & Service Tax Bill, Make In India initiative and organisation’s future plans in an exclusive interview with Chemical Engineering World.

Please share insight into company expansion plan with respect to production facilities & other aspects?

We have been able to deliver a very healthy growth for our stakeholders in the last two years. To continue on this momentum, we have announced various expansion plans in both our business segments i.e.

Inorganic Chemicals and Textiles. The following are our expansion plans in both these segments: •

Our Soda Ash expansion is on track and we expect it to complete in Q4 FY17. This will result in 12 per cent growth in the volumes with an additional 1 Lac MT brown field capacity expansion. The total capex outlay for the project was ` 375 crores,

Chemical Engineering World

which is much lower than a normal Greenfield expansion. The benefit of the same shall be reflected in FY18 in terms of higher volumes.

•

•

An incremental capex of around ` 80 crores has been allocated for debottlenecking our Soda Ash capacity by another 25K MT along with doubling the Sodium Bicarbonate capacity by 30K MT. Looking at the expansion, we are also installing RO Plant to remain self-sufficient for our water needs.

In the Textiles Segment, we have taken a holistic approach wherein we have allocated ` 70 crores towards our various expansion plans. To achieve volume growth, we are increasing our

processing capacity from 36 million meters per annum to 45 million meters per annum along with the installation of 24 TFO machines for value-added yarn. We are also expanding our weaving capacity in addition to further installation of windmills to better operating efficiency.

GHCL’s net profit has reported 79.09 per cent rise to ` 90.28 crore in the quarter ended September 30, 2016. Revenue of GHCL has grown 1.85 per cent to ` 703.14 crore during Q2 of current financial year as against ` 690.34 crore in Q2 of financial year 2015-16. What are the key growth drivers for ROI? The improved performance is dedicated to our motivated work force which is working on continuous process improvements December 2016 • 103

CEW LEADERSPEAK resulting in better efficiency in both our business segments. The company has also been benefited by the lower commodity prices especially of coal as compared to the corresponding previous quarter.

With efficient cash flow management and constant focus on deleveraging, we have been able to save substantially on our finance cost for this quarter.

GHCL’s Inorganic chemical segment have shown robust EBITDA margin from 27 per cent to 32 per cent with industry leading performance in soda ash. How will these margins sustain against effect of China’s slowdown, impacting soda ash process?

The way we look at our business has been a game changer for us. Over the years, we have clinically reviewed our internal processes to identify opportunities for improvement and worked relentlessly to achieve the same. This has enabled us to establish robust work processes resulting into unmatched operational efficiencies, best in class productivity (surpassing Global standards) eventually giving us the edge to be a better margin leader in the Industry.

The Industry both globally and in India has remained well balanced in terms of demand and supply equilibrium. This is largely due to the key entry barriers such as nearness to the source of raw material and high logistics cost as compared to Selling prices, make soda ash a domesticated commodity like cement. The producers only export the surplus quantity after meeting local demand. Whereas China’s soda ash Industry is 50 per cent of the global industry, however their Industry is operating on optimum productivity with matching demand supply. China exports only 7-8 per cent of its production and India’s share in this export is very miniscule.

Recently Chinese producers have announced increase in soda ash prices which are largely on account of surge in 104 • December 2016

commodity prices.

In your opinion, how beneficial has been government’s anti-dumping duty on soda ash imports from China proved to be for industry at large?

Anti-dumping duty protects the interests of the domestic manufacturers by enforcing duties on dumping of any commodity in domestic market from any particular country which disturbs the market conditions in the country.

Duty on Soda Ash has thus protected the local industries against any such instances of dumping below certain levels which can cause harm to the domestic manufacturers. However over the period China has also developed its own natural markets where there is no Soda Ash production, reducing its reliance on Indian markets unlike other commodities.

GHCL has been active promoter of inculcating sustainability in its business functioning through environment-friendly initiatives.

How important is sustainability in the prevailing competitive business environment?

Please share some of the initiatives that have been undertaken till now & future initiatives in the pipeline?

We strongly believe that to maintain sustainability in business it is of paramount importance that one should focus on all its stakeholders which results in operational harmony leading to long term business sustainability.

GHCL has been actively working towards meeting its corporate social responsibilities.

Recently we have given a major thrust to this area and constantly guiding our key management executives to work with a business philosophy addressing the concerns of all our stakeholders be it shareholders, employees, society, customers and vendors.

This approach has been successfully guiding our path towards a holistic growth.

To highlight some of the areas we are working, here is an outline of that. Last year GHCL has successfully run projects worth around Rs. 14 crores on various initiatives such as sanitization, women empowerment, child education and animal husbandry. GHCL has also announced ESOPs for a wide range of employees to recognise their efforts and align them with our long term business growth objectives. For the shareholders, we have come out with a clear Dividend Policy of 15-20 per cent of PAT thus defining the shareholder’s expectations.

Going forward, we shall continue this drive with vigour and dedication that shall lead to Business sustainability benefiting all our stakeholders.

Yo u t h o u g h t s o n t h e G o o d s & S e r v i c e Ta x B i l l ?

Indian economic system is currently stuck under the web of various taxes which not just increase the cost of production but also results in administrative hurdles. With our vision of “Make in India” it is essential that we should have such reforms wherein all the taxes are merged under a single platform that transforms the current ecosystem.

In our view it will boost up the economy as this will enable the seamless flow of goods and services across the country, tax the supplies on value added principal thus result in removal of cascading effect of taxes.

Your thoughts on the “Make in India” initiative?

I think this is an excellent initiative by the Government. It will result in enhancing the GDP of the country, when the manufacturing facilities are commissioned with the most advanced technology in India. This will also generate skilled labor, ample job opportunities, better livelihood for countrymen and more revenue for the government.

What are the future plans of the organisation in India and globally?

As already communicated above, we are focusing on expanding our domestic manufacturing capacities which shall be Chemical Engineering World

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Industrie 4.0: Key Element For the Success of Make In India Initiative The Indian manufacturing landscape needs to undergo a massive revamp in order to remain competitive in terms of investment, infrastructure, and technology. The Industry 4.0 could form a key part for the success of Make in India initiative. Industry 4.0 i.e.

IIoT strategies are changing the fundamentals of automation. The more you sense, the more you solve. Now is the time to see manufacturing plants through a new lens and operate successfully than ever before. IIoT will help organizations to tackle biggest business challenges in the field of Process, HSSE, Reliability and Energy Efficiency.

India’s ranking among the world’s 10 largest manufacturing countries has improved by three places to sixth position in 2016. Around 58-60 million people are employed in the Indian manufacturing industry, representing about 12 per cent of the country’s overall working population. The Government of India has set an ambitious target of increasing the contribution of manufacturing output to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16-17 per cent currently through Make in India Initiative.

India is an attractive hub for foreign investments in the manufacturing sector because of India’s market of more than a billion consumers and increasing purchasing power. Several mobile phone, luxury and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country.

The Indian manufacturing landscape needs to undergo a massive revamp in order to remain competitive in terms of investment, infrastructure, and technology. The Industry 4.0 could form a key part for the success of Make in India initiative.

Industry 4.0 i.e. IIoT strategies are changing the fundamentals of automation. The more you sense, the Chemical Engineering World

more you solve. Now is the time to see manufacturing plants through a new lens and operate successfully than ever before. IIoT will help organizations to tackle biggest business challenges in the field of Process, HSSE, Reliability and Energy Efficiency.

When you enhance the focus, you look at your plant in ways you haven’t before.

When you expand the strategy with more sensors, you easily take more control of your plant. When you have changed your focus and your strategy, you will experience the business impact and can enjoy the results. Put simply, IIoT enables you to address multiple critical challenges simultaneously without effort.

Dramatically improve plant workers’ productivity and efficiency with cuttingedge wireless technology and instant access to DCS data, maintenance data, and operation procedures. An IIoT strategy enables you to make fast, accurate repair decisions before unplanned downtime occurs.

Emerson Automation Solutions recently launched Industry 4.0 solution called ‘Plantweb Digital Ecosystem’ in India to help organizations achieve operational certainty and seize the huge opportunities it brings. The launch witnessed a tremendous response from the organizations across industries and all were very keen to know more

about the industry 4.0 technologies and the benefits that they could extract from the same.

India has always been an early adopter of advanced technologies, which Emerson Automation Solutions launched in recent times. To name a few, public sector organizations like BPCL, HPCL, IOCL and few other private sector organizations have adopted Emerson’s Plantweb solution early and are very interested in taking it to the next level of automation.

Leading industries are applying IIoT technologies and processes, from environmental-friendly home’s that require less energy by better regulating temperature, to cars that monitor wear and tear to prevent major breakdowns, to more energy-efficient retail centres, to manufacturing facilities that run cleaner and more efficient to create greater overall reliability and profitability – the examples are growing by the day.

This is not a trend; it’s a reality to stay competitive in the global marketplace.

Need to demonstrate a sense of urgency to act now

Author’s Details: Dr Amit Paithankar Vice President & Managing Director Emerson Automation Solutions, India December 2016 • 105

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“Our combination of years of experience with a culture of innovation is a key differentiator as we work towards building a sustainable industry�

It is difficult to compare the situation in 2008 with the situation today. The crisis in the financial sector impacted the economy as a whole, while the current state of affairs is limited to the oil and gas sector. The global markets are sensitive to so many issues that it has become difficult to predict the impact of any one single factor says Sanjay Joshi, India Country Manager, Aker Solutions in an exclusive interview with Chemical Engineering World.

What is the market sentiment across the EPC industry currently?

Domestic EPC investments are taking place, but much more selectively than before. Efficiency is becoming a keyword, both for the industry and for the projects themselves. Customers are looking for partners who have better ways of delivering smarter solutions.

How do you compare the market turbulence in 2008 with the current situation where there have been massive swings in oil prices?

106 • December 2016

It is difficult to compare the situation in 2008 with the situation today. The crisis in the financial sector impacted the economy as a whole, while the current state of affairs is limited to the oil and gas sector. The global markets are sensitive to so many issues that it has become difficult to predict the impact of any one single factor. But in a market environment of sustained low oil prices, the industry, including us, is putting every effort into creating cost-effective solutions and finding new ways of working.

This will help with both the viability of the investments, as well as the long term sustainability of the industry.

According to a recent report, the Indian capital goods sector has grown at a much slower rate than imports. At the same time, the capacity utilization of domestic manufacturers is only about 60-70 per cent across sub-sectors. In your opinion, what are the factors which have resulted in significant underutilization of capacity?

The new National Capital Goods Policy has the target of making India a globally competitive hub for capital goods. However, this sector faces many challenges, ranging from the lack of the latest technologies and quality inconsistency to under-developed Chemical Engineering World

CEW LEADERSPEAK infrastructure. Many manufacturers are also at the MSME (Micro, Small and Medium Enterprise) level, and struggle to increase visibility.

Once these challenges are overcome, we hope to see significant growth.

Please share some of the key measures that Aker Solutions is taking towards improving overall efficiency.

At Aker Solutions, we are targeting a global improvement in cost-efficiency. To achieve this, we are working on leaner and more efficient processes that reduce overall costs and improve quality. Another important focus is building a culture of continuous improvement, by encouraging employees to identify waste and implement improvements within their work area.

We recently announced the reorganization of our global business to strengthen operational and financial performance and better meet customer needs. This new

set-up will also contribute to bolstering the ongoing improvement work in the company.

Please talk about some of the major ongoing projects of Aker Solutions in India and abroad.

The Johan Sverdrup development on the Norwegian Continental Shelf is our largest project globally. In Mumbai, we have a team working on the detailed design for the two topsides and bridges in the first phase of this project. In addition, we are working on various onshore projects in India, the Middle East and the USA. What kind of opportunities do you see for Aker Solutions in India?

India as a country is working towards reducing its dependence on energy imports, and two major operators have planned developments on the East Coast.

We see this as a significant opportunity, as Aker Solutions has both the experience

Chemtech F O U N D AT I O N

and expertise to deliver on these projects.

What are your views on the “Make in India” initiative?

The Make in India mission, to build India up into a global design and manufacturing hub, is definitely a step in the right direction. However, other changes, such as supportive financial policies and better infrastructure, are required before these plans become a reality.

What are the future plans of the organisation?

At Aker Solutions, we are focused on maintaining and expanding our international business. The Indian operations are an integral part of our global execution model as we look at opportunities across the world.

Our combination of years of experience with a culture of innovation is a key differentiator as we work towards building a sustainable industry.

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“All in all GST is a welcome move” Over the last six decades, KSB Pumps Limited has grown with the philosophy to play a vital role in India’s development by equipping the diverse requirements of the pump markets. Rajeev Jain, has recently assumed his new role as the Managing Director, KSB Pumps Limited after his tenure in Indonesia. He shares his view on his new role, GST, end users market in India & company’s future plans to drive the growth of organization, in an exclusive interview with Chemical Engineering World.

What was you experience during the tenure with KSB in South East Asia prior to assuming this new role?

How do you compare the business environment in S.E Asia as compared to India in terms of available and future market opportunities and challenges?

variety of markets and variety of local and multi-national manufacturers, and the vast geography too! So obviously, customers are rapidly becoming more sophisticated and differentiated, and hence manufacturers must be agile enough to keep pace!

South East Asia is a growing Region with a lot of opportunities. The emerging economies of Indonesia, Thailand, Malaysia, Vietnam offered a lot of growth opportunities for KSB; and we were able to increase our business substantially in the last decade. I had a great opportunity to be in the region to experience the diverse culture of each country in the region and which has helped me a lot to shape up my thinking and also my respect for the different cultures.

Recently, the long awaited One Nation One Tax has received heads up from both upper and lower houses of Parliament and is likely to be implemented. In your view, how will this impact the market dynamics for the pumps and valves manufacturers in the country in terms of both opportunities as well as the challenges?

India, in that respect is different, as it is a more mature market! When I say this; I refer to the variety of Industries; the Chemical Engineering 108 • June December 2016 2016 World

For us, from the business point of view, this is a very positive change and we hope it will bring a lot of efficiency improvement in our administration. We expect the business to be easier and simpler. The challenges will be on how fast we can adapt to this system and implement it smoothly.

Implementation of GST will attract lot of interest of foreign companies to the Indian market and also provide a major boost to the Make in India campaign launched by the Government. What kind of business trends do you foresee in the near future in your business domain?

With the “Make in India” Campaign, we definitely see that there would be increase in investment in this sector. KSB has already committed with an investment of almost ` 230 Crores; wherein, we are building a totally new facility for 100% indigenous manufacture of pumps for Nuclear and Super Critical Power plant applications.

As markets become more diverse and customer segments more narrowly defined, engineered product companies are developing increasingly complex offerings that provide integrated product-andservice solutions. Sales and Marketing teams, therefore, must be able to Chemical Engineering World

CEW LEADERSPEAK understand these offerings and how they drive value for the customers’ businesses.

improve our cost competiveness of goods and services in the International markets.

It’s a transition from “Art to Science”; and five commercial topics are bound to offer companies significant opportunities to differentiate themselves in the new environment: Sales Force Effectiveness; Channel Management; Pricing and Profitability; After Sales and Human resources and IT enablers. Superior performance in the above areas will distinguish the winners in this highly competitive market!

How are the end user markets evolving globally & in India for consumption across – hydrocarbon & chemical processing, water & wastewater treatment, infrastructure, power generation and other key industry verticals?

Though there are significant number of small and medium scale pumps and valves manufacturers, the industry is dominated by major players. In your view, could GST be a game changer for the SMEs and how would this possibly change the market dynamics?

All in all GST is a welcome move!!

GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of tax on the cost of goods and services. It will impact the Tax Structure, Tax Incidence, Tax Computation, Tax Payment, Compliance, Credit Utilization and Reporting leading to a complete overhaul of the current indirect tax system.

There are various benefits such as Cost Benefit being one! In addition, it would have a better compliance and revenue buoyancy replacing the cascading effect [tax on tax] created by existing indirect taxes. Tax incidence for consumers may fall lower transaction cost for final consumers. And last but not the least, apart from making the taxation very simple and transparent in character, it would

At present we see Water and Wastewater markets to be attractive and offers opportunities across the world.

The Oil and Gas and Mining markets are a bit subdued. Power Generation and Industry are sluggish, except for the nuclear supercritical business which offers some opportunities.

Of all these, which are the fastest growing segments that would drive the demand of pumps and valves in India and how is KSB planning to continue to maintain its position in the Indian market?

Water and Waste Water markets are bound to improve. For…As we know, India’s fragile and finite water resources are depleting while the multi-sectorial demands for water from sustained economic growth (over 8%) is driving the increased demand for water through coupled dynamics between increased energy and consumption. Exponentially increasing demand for water due to population growth and agricultural use, if left unchecked. Climate change and extreme climate variability are further likely to accentuate these numbers. In the future higher usage in the domestic and industrial domains is likely as the pace of economic development grows.

Even in the Water and Waste water sector, Global water companies such as Veolia Water, Suez de Lyonnaise

GST will be a game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of tax on the cost of goods and services. It will impact the Tax Structure, Tax Incidence, Tax Computation, Tax Payment, Compliance, Credit Utilization and Reporting leading to a complete overhaul of the current indirect tax system.

109 • December 2016

(Degremont) and VA Tech Wabag, Nalco, GE Betz-Dearborn etc., have established a presence in India with many projects initiated or underway worth several billion Euros; only to signal what potential this segment is going to offer and will auger well with the pump industry at large and KSB in particular!

Additionally, other segments which currently offer opportunities are the energy Segment – mainly in the Nuclear and Supercritical power generation arena and FGD business which is emerging and will to offer some opportunities in the near future. Along with this, Solar pumping is a growing domain in the Indian Market.

With a good monsoon this year, we are hopeful that the upstream industries and the Agriculture Segments will also get a Philip and auger well for the Industry.

Globally, the manufacturers are embracing the trends of Digitsation & Industrie 4.0 which is slowly catching up in India too amongst the big players. How are pumps and valves manufacturers responding to this changing demand and what are the challenges that need to be addressed? Please share the details on the work KSB has carried out in this space so far.

Yes Industrie 4.0 is bound to catch vogue of the Indian manufacturing sector by the turn of this decade / mid next decade!

Industrie 4.0 disrupts the current value chain and requires companies to rethink the way they do business. They need to drive the digital transformation of their business to succeed in the new environment. Five pillars will be critical for this transformation: first, companies need to build digital capabilities. This comprises factors such as attracting digital talent and setting up cross-functional governance Chemical Engineering World

CEW LEADERSPEAK and steering. Second, companies need to enable collaboration in the ecosystem. This requires getting involved in the definition of standards and cooperation across company borders through alliances, strategic partnerships, and cooperation in communities. Third, managing data as a valuable business asset will be important in securing crucial control points. Fourth, companies need to manage cybersecurity end to end to protect digitally managed shopfloor operations and proprietary data.

Lastly, companies need to implement two-speed systems/data architecture to differentiate quick-release cycles from mission-critical applications with longer turnaround times. To leverage these multiple opportunities, companies need to embark on a digital transformation journey: a continuous, long-term effort is needed to successfully navigate the changing industrial environment of Industrie 4.0.

We at KSB in India have taken our baby steps in this direction, first, by pursuing simpler e-commerce and marketing automation initiatives to start with; and intend to be abreast in this morphing digital arena; as we also see our markets mature to this concept!

Presently, with five manufacturing facilities, KSB is among the top manufacturers in India. How do you plan to lead the growth of company in India and what are the plans for the future?

The breadth of KSB India’s product portfolio addresses the needs of myriad customers... KSB in India has been; and continues to be a trendsetter pumps for virtually all conceivable applications through her Technological leadership and solid German heritage.

These include pumps for customers from basic domestic water, to supply and consumption of water in commercial 110 • August 2016

With the “Make in India” Campaign, we definitely see that there would be increase in investment in this sector. KSB has already committed with an investment of almost ` 230 Crores; wherein, we are building a totally new facility for 100per cent indigenous manufacture of pumps for Nuclear and Super Critical Power plant applications. buildings and offices including that for HVAC purposes and firefighting. Moving towards Industry, KSB pumps are a heart of the process! They reliably transport fluids ranging from Industrial water to acids to viscous and solid laden liquids and abrasive solvents with ease. In the Refinery and Petrochemical sectors, cryogenic and explosive media is handled with great finesse. In the Power sector, be it a Conventional or a supercritical or a Nuclear Power plant, we save energy while helping the nation to generate more.

And to keep our fields green, our pumps romance the life giving element- water, with great panache.

As mentioned above, KSB has its strength that it covers all the market segments with its products. This is very significant at a time when some markets are not doing so well and it gives us this flexibility to focus on other segments.

We are at present putting a lot of focus on our Standard business, and also the aftermarket business. We hope to grow our business substantially in these areas and we are also planning in to add some new products to fuel our growth.

the of the Super Critical and Nuclear Power Stations, which were partly or fully imported. As mentioned earlier too, we are also looking at the FGD markets which are evolving in India and where KSB have a strong and proven presence worldwide.

KSB in India is a part of the Global Manufacturing Network of the KSB Group; and due to her cost advantages, is also poised, not only to be a formidable Exporter in the Asia Pacific Region, but also to other group companies in the World in the coming years.

KSB in India is indeed a “One Stop Shopping Centre” when it comes to delivering value to the customers with reliable pumping solutions to what-so-ever or how-so-ever the application may be!

India is a promising market for KSB and we also are gearing up to tap the opportunities it offers and to remain “Ahead of Time … all the time”.

We are also cautious and optimistic in the Solar Pumping arena! While we are closely observing the central governments initiatives in this direction; we are simultaneously gearing ourselves with products; including introducing suitable products top address this need.

KSB in India has been and will continue to support the “Make in India” philosophy.

To this, we are investing heavily in a brand new and an ultramodern manufacturing facility near Pune, to take care of the future demands and indigenous supply of critical pumps for Chemical Engineering World

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“India Will Continue To Grow As a Consumer-Driven Economy” India consumes only a tenth of chemicals, when compared with world average. For a country with 1.25 billion people, the sector was valued only at $144 billion in FY14, which shows that the market is yet to build the critical mass, even in sectors that are not feedstock dependent says Sudhir Shenoy, Chief Executive Officer, Dow Chemical International Private Limited (Dow India), as he discusses about potential Dow – DuPont merger and its impact on Indian BU, Changing Indian Specialty, Agrochemical & Textile Chemicals market scenario, Impacts of GST Bill & GOI’s Make In India Initiative in an exclusive interview with Chemical Engineering World.

As per the recent reports, Dow Chemical Co is considering a potential merger with DuPont Co. which will create a multibillion-dollar entity in India. What kind of synergies will it create in sectors such as agriculture and infrastructure & research capabilities?

How will it impact Dow’s specialty chemicals business in India?

Over the last decade the chemical industry globally has been experiencing tectonic shifts in the form of complex challenges and opportunities. The impending Dow – DuPont merger is a major accelerator in Dow’s ongoing transformation. The synergies generated by this merger will have the potential to unlock significant value in a highly competitive marketplace. Overall, the transaction is expected to deliver approximately $3 billion in Chemical Engineering World

cost synergies with an upside of approximately $1 billion expected from growth synergies.

The merger would entail setting up of three independent publicly traded companies in Agriculture, Material Sciences, and Specialty Products respectively.

These companies will have powerful innovation capabilities, enhanced global scale and product portfolios, focused capital allocation, and a distinct competitive position. Their growth prospects are outlined as follows: Agriculture: will have the most comprehensive and diverse portfolio with exceptional growth opportunities in the near, mid and long-term.

The complementary offerings of Dow-DuPont will provide growers across geographies with a broad portfolio of solutions to enhance farmer productivity and prosperity

Material Sciences: The complementary capabilities will create a low-cost, innovation-driven leader that can provide solutions in packaging, transportation, and infrastructure, among others. The newly developed entity will be pure-play industrial leader and will merge Dow’s material science portfolio (except electronic materials) with DuPont’s strengths in performance materials.

Specialty Products: This division will focus on unique businesses that are innovation and technology intensive, and share similar investment characteristics.

These businesses will bring together DuPont’s divisions of nutrition & health, industrial biosciences, safety & protection and electronics & communications, with Dow’s electronic materials business.

December 2016 • 111

CEW LEADERSPEAK Post the merger, Dow India, in its refreshed form, will continue to focus on material sciences. With added strengths from DuPont and Dow Corning, not only will we have an enlarged footprint but also an expansive product and solution portfolio. I am looking forward to eventful years ahead of us.

As per reports, India is the seventh largest player in the chemical business in the world. It is forecasted that India would become the fourth largest chemical consumer in the world by 2025. In your view how fast is the Indian market evolving compared to global market?

How competitive are Indian chemical manufacturers compared to their foreign counterparts?

What are the opportunities for domestic manufacturer in evolving Indian market as well in matured international markets? How important is sustainability in this equation?

What are the challenges for domestic manufacturer in evolving Indian market as well in matured international markets? What are the risks and how will those be minimized?

In the coming years, India will continue to grow as a consumer-driven economy.

With it strengthening its position as the manufacturing capital for valued goods, the GDP is expected to grow at 7.5 to 8 per cent over the next three years. To support this growth trajectory, the current government has launched some critical missions to enhance manufacturing, sanitation, and liveability.

Given that the chemical industry by nature is the toolbox enabling sustainable products and processes, it can play a major role in making India a global manufacturing hub.

The chemical industry typically grows at one and half to two times the GDP, and is projected to grow at 12-15 per cent p.a.

compared with world average. For a country with 1.25 bn people, the sector was valued only at $144 bn in FY14, which shows that the market is yet to build the critical mass, even in sectors that are not feedstock dependent. On the other hand, the chemical industry in India is very fragmented and without economies of scale, it would be difficult for smaller players to remain competitive.

Like other emerging economies, India continues to face challenges in the form of lack of energy, infrastructure, and resource management. While we need to address these challenges, we also need to focus on investing in R&D, IPR and establishing operational standards for self-governance.

On the positive side, the industry is taking proactive steps in embedding sustainability in part of its DNA. This is evident by increasing sophistication and adoption of global standards in sourcing, manufacturing and continuous innovation in product offerings.

Focused centres of research excellence driven towards reducing the environmental impact have also been set up.

Overall, I see the sector increasingly moving from a commodity player to a value based solutions provider. This upward integration will help both big as well as smaller players by creating more avenues to foster higher collaboration across the value chain.

As per recent reports, Indian Textile Chemicals market in India will be worth US $2.5 billion by 2021. According to you, what are the key growth drivers that have & will accelerate the projected growth?

What role has Industrialization, surging consumption of textiles in engineered products and rapidly rising awareness about the benefits of using textile chemicals played in the development of Indian Textile Chemicals Market?

How demonetization will impact India’s and chemical segment’s growth prospects is yet to be seen. With a surgical strike on black money, in the short term, the move may soften the growth prospects across industries. However, in the long term, it will only lead to higher transparency and trust in doing business in India.

On the macroeconomic front, India is one of the fastest growing consumer economies in the world, with a perceptible rise in disposable income. With the sector opening up for 100% FDI in textiles and retail, more international players and technological knowhow are expected to make inroads into the country.

India consumes only a tenth of chemicals, when

The competitive advantage India has over

112 • December 2016

many countries is a steady flow of skilled workforce in the sector. Textiles is the second largest employer after agriculture, and increase in both labour and capital availability, has enabled India to be the 2nd largest cotton and polyester producer in the world.

Increasing number of leading players is establishing their presence in India. Alongside promoting healthy competition, it has also developed a more organized ecosystem that supports this growth. Today, India has a wellestablished distribution trajectory that feeds into constant demand generation in form of exports. Rapid development of the sector has further led to increase in stewardship practices such as safe and environmental friendly practices and adherence to the EHS norms.

With push under ‘Make in India’, textiles are expected to grow at an annualised rate of 13% per annum over a 10-year period. The growth could be two-fold: •

Deepen niche in traditional avenues such as apparel, garments, handicrafts

•

Diversify into newer high value add products such as air bags and wearable technologies (both electronic and medical)

Both these paths have immense export potential and can further strengthen India’s position as a textile ‘solution’ provider on the global map. To support this, the government has announced a slew of measures such as reduction in custom and excise duty, setting up of Technology Upgradation Fund Scheme (TUFS), and Integrated Textile Parks. These, among other measures will make textiles more According to Tata Strategic Management Group report on “Next generation Indian agriculture: Role of crop protection solutions’, Indian agrochemicals market is expected to reach $6.3 billion by FY20. In your opinion, what would be the key growth drivers, opportunities, challenges and strategies to reach these numbers The Indian Agriculture sector has been facing critical challenges, thus causing an imbalance in the country’s food chain. How Agrochemicals can play a significant role in overcoming this imbalance?

Chemical Engineering World

LEADERSPEAK CEW The Indian Crop protection industry is growing at a healthy growth rate of above 8% p.a. and nearly half of Indian crop protection industry output is exported. Having a strong cost advantage; India will continue to be a major supplier to the quality conscious global markets for generic products, provided we enhance investments in R&D and regulatory expertise.

The demand for crop protection products is driven largely by food needs of an eversurging population, which in turn highlights the need for productivity enhancement. In the backdrop of declining resources and climate change, intensive agriculture practices that involve sustainable and safe modern technologies (modern irrigation, efficient germplasm & other crop protection solutions) have become important. It is equally critical to arrest losses caused by pest damage during and after harvest.

To counter the adverse perception around the crop protection industry, regulatory bodies, government, industry, and academia need to join hands. Product stewardship, judicious use of solutions, and freedom from spurious pesticides should be stringently driven. The industry and its key players need to proactively engage and communicate better with stakeholders to build trust and promote goodwill.

Please talk about innovation and R&D portfolio of Dow India and what roles will its operations in India play in the global R&D strategy? Please share insights into plan on expanding R&D centres in direction of same?

The government has consistently emphasized use of science and technology to advance precision, productivity and sustainability.

The impetus on developing infrastructure to support industrialization and making Indian cities smart and digitally enabled are important indicators of the ‘change within’.

Dow India’s aggressive investment in R&D programs and capacity building, along with collaborating with academia, think tanks and industry are directed towards establishing India as a priority market. Our India R&D vision is to continue to grow and establish a fully integrated global centre of excellence, including technical service, application development and research capabilities that accelerate delivery of a market aligned technology portfolio. Major developments Chemical Engineering World

are unfolding in this space, and we will share details in due course of time.

Your thoughts on Goods & Service Tax Bill?

Once implemented, GST will affect all aspects of business in India, from decisions on investment location and product pricing to logistics and supply chain optimization. It will be a crucial reform that facilitates India’s development trajectory. As a ripple effect, it is also likely to have an impact on India’s international trade by promoting ease of doing business.

GST implementation will go a long way in addressing India’s perception of a challenging investment environment, laden with a complicated tax system since a myriad of existing central, state and interstate levies had previously increased tax burdens. The rollout will act as a major boost to India’s appeal to attract investments from multinationals and will add momentum to growth of the Indian economy.

For a long time, Indian manufacturers have complained about the inverted duty structure, which has been an impediment in improving industry competitiveness. With the passage of GST bill, we are expected to move towards a one nation one tax regime, which will further bring down costs in the manufacturing sector – thus making it more competitive in the global arena.

Please share your thoughts on GOI’s Make in India initiative?

While ‘Make in India’ for consumption in India is a huge opportunity to take India to the next level in manufacturing, it needs to provide enough impetus for ‘Make in India’ to export. We need to make manufacturing more cost-effective; more importantly we need to make it compliant to global standards, whether in quality, resource utilization, safety or minimizing environment impact.

To enable ‘Make in India’, we need efficient, sustainable technology and innovative product applications that can build scale and ramp up production faster, yet in a sustainable, resource efficient way.

Right now, regulatory hindrances are a challenge in technology transfer to India – we need stronger on-ground enablers like

infrastructure and water, cleaner and faster permissions as well as globally comparable IP protection and other law enforcement.

Over the previous year, there have been significant announcements of investment by various countries in automotive, pharma, public health and infrastructure sectors. This directly translates into growing opportunities for Dow materials and technology. If ‘Make in India’ and other similar initiatives address some of the aforementioned issues, newer technologies and product applications will come to India much sooner. Other factors to consider in making India a manufacturing hub are feedstock availability, cost positioning and access to strong logistics.

What are the future plans of the company in India?

Having been in India for many years, we are positive about the growth prospects in the region. Our focus is on customer connect and local innovation has helped us cross the significant milestone of US $ 1 billion revenue in 2014 and 2015 and we are looking to double our growth in the coming years. We have evolved into being a partner to our customers; by creating and providing solutions that reflect deep understanding of our customer’s business.

Our most pertinent growth enablers will be Sadara and our Application Development and Technology Centre (ADTC).

Sadara Chemical Complex, a $20 Billion project is our joint venture with Saudi Aramco and will house 26 different plants. India will benefit not only from feedstock integration, but also from consistent supply of products, in-market commercial-supply capabilities and resources. In addition to this, establishment of the Application Development and Technology Center (ADTC) will help provide application development support to other regions, making India the hub of our innovative solutions.

So far our mainstay industries have been infrastructure, transportation, consumerism, energy, health, plastics and water. Alongside these developments, a focused push towards home and personal care, pharma and food solutions, and microbial control will help us generate more value. Synergizing strengths in our post-merger era will set us on a definitive growth path.

December 2016 • 113

CEW LEADERSPEAK

“Time to Go Past Conventional Approach�

Increasing Indian populace globally, has given significant thrust to the demand of Indian FMCG goods across various global markets and there are many brands that are thriving in markets outside India. Inorganic growth is a combination of factors and completely depends on how the companies wish to address these says Sanjay Trivedi, Founder/Director, The Indian Home & Personal Care Industry Association (IHPCIA) in an exclusive interview with Mittravinda Ranjan.

A recent industry report has projected the Indian Personal care market to touch USD 20 billion in India by 2025 from the current USD 6.5 billion. In your view, what will be the key growth drivers for changing market dynamics?

Indian home and personal care market has been witnessing double digit growth and is one of the most buoyant and dynamic markets. Personal care is growing faster where skin care products are growing at around 16 per cent followed by the shampoos that are clocking growth rate of 12- 13 per cent. It is interesting to see the paradigm shift that is taking place in the segment of grooming products for 114 • December 2016

men and is one of the key growth drivers of industry.

Indian FMCG market are changing significantly with the entry of homegrown players in the market like Patanjali, which has introduced the products based on traditional Ayurveda and NIRMA and RSPL who have introduced products which are accepted by an immensely wide consumer base.

Another significant contributing factor is the advent of e-commerce in the emerging global markets which the industry believes as a strong opportunity to reach out the products to wider

consumer market. E-commerce is one of the key business enablers and home & personal care industry will be able to achieve the targeted growth of 10 billion plus in near future.

How is the popularity of Indian home and personal care products growing in other international markets and how can the companies leverage on this opportunity?

Increasing Indian populace globally, has given significant thrust to the demand of Indian FMCG goods across various global markets and there are many brands that are thriving in markets outside India. Inorganic growth is a combination of factors and completely Chemical Engineering World

LEADERSPEAK CEW depends on how the companies wish to address these. Every market offers opportunity for direct sale but it does require setting up of efficient marketing network for the business to reach out to the consumers.

Though there are number of ways to achieve it, but in my view, business acquisition is the simplest and most efficient way to strengthen geographical presence.Acquisitions enable the companies to leverage on the existing marketing network of acquired businesses in the new geographies and reach the consumers faster and easily. This growth model has been demonstrated by many FMCG companies like Godrej Consumer Products Ltd, Nirma, Dabur and Emami who have consolidated their presence in many international markets.

Please share some insights into some of the biggest challenges that the FMCG manufacturers continue to face in India despite the fact that India is one of the fastest growing consumer market?

The demonetization of currency and impact of GST are the biggest challenges that the FMCG manufacturing face in the short term In the long term, managing the supply chain should be the key growth driver.

Like any other industry the FMCG sector is growing in India and has its own sets of challenges; but at the same time, we also see certain criteria that can be met for the growth of this sector. Growth through digital marketing will have sustainable benefits.

Raw materials like soda ash, alkyl benzene; natural & synthetic alcohol and olefins are the building blocks for

the industry. Unfortunately, we do not have sufficient indigenous capacities to produce synthetic alcohol and olefins which are some of the basic requirement for manufacturing. As a country, we need to set up capacities to produce these chemicals which are the building blocks to secure supplies and reduce dependence on imports.

As India is a large ethylene producer, going downstream to olefins to alcohols will be a logical approach. China has already demonstrated this with plants that produce higher chain synthetic alcohol parallel to natural alcohol and I think taking step in this direction will be a good move for the industry.

Specialty chemical companies have constantly been challenged and industry has taken steps to address the concerns and India has emerged as one of the very few countries globally which uses entire spectrum of anionic surfactants. Today, the products offered in the market include alkyl benzene sulfonates, olefin sulfonate, alcohol sulphate, ether sulphates, methyl ester sulfonate, and specialities like APG, sulfo succinates etc.

Linear Alkyl Benzene industry in India is relatively small and under invested. A simple calculation based on the growth rate of the industry indicates that we need an alkyl benzene plant of 100 KTPA every two to three years to offer intermediates at competitive prices. LAB is the main workhorse for downstream homecare products and at present produced only by four chemical companies, viz. Indian Oil Corporation Ltd & Reliance Industries Ltd, who are merchant producers and Tamilnadu Petroproducts and Nirma Ltd. who have captive use. Though

India is a segmented and diversified market which offers ample opportunities for different products and taking different approaches towards the customers. Small scale manufacturers who are innovative and have a good share could be targets for acquisition as the industry consolidates.

115 • December 2016

the world has focused on LAB route for producing intermediates, but the industry is now looking at alternative routes to use intermediates like palm stearin and palm fatty acids from natural ingredients derived from palm.

It is an interesting scenario since Indian industry imports LAB from the Middle East and China and exports products to other international markets. At the same time we continue to depend on imports of palm oil from Indonesia and Malaysia.

Availability of raw materials is very important for sustained business; however there is a lack of investments from the Indian companies for meeting of the growing demands. Imbalances through bilateral and regional treaties also add to the uncertainties and complexities for the HPC business.

What are your thoughts on the Make in India initiative for the stakeholders of FMCG industry and can quality be a constraint for the manufacturers?

Make in India initiative is an excellent idea, yet nothing substantial has been done for the Home & Personal Care sector. I feel that the Government should provide a level playing field for the local producers through providing some kind of incentives to grow and also needs to revisit various treaties with the countries in MENA and ASEAN regions.

This campaign has definitely caught interest of major chemical players like BASF, Clariant, and Huntsman, to name a few who are already present in Indian market and trying to consolidate their presence in Indian market and there are many others who are looking at establishing their presence in India for revenue generation. Especially, leading intermediate players are paying attention to India for India’s huge domestic consumption potential and emergence as the cost-effective intermediate processors of key primary materials based on crude oil and palm oil.

Today, major palm plantation owners Chemical Engineering World

CEW LEADERSPEAK are diversifying and integrating downstream and gradually the plantation owners are getting into manufacturing of alcohol and surfactants which challenges the earlier ethos of manufacturers who are already in the business. Eventually, this will impact the return on investments for the standalone intermediate processors and the economic strain may lead to consolidation. This is where Make in India initiative will also bring in major players who matter in this whole scenario. I strongly feel that there is a need to give a rationale thought in the direction to address these shortcomings through properly structured bilateral and multilateral agreements. Then the Indian industry will have the key raw materials to use as building blocks for future intermediates.

India is a segmented and diversified market which offers ample opportunities for different products and taking different approaches towards the customers. Small scale manufacturers who are innovative and have a good share could be targets for acquisition as the industry consolidates.

There is a huge demand across the consumer sector. At the same time the consumer is very cost conscious and wants delivery of efficient products and are willing to experiment with something new. Manufacturer’s commitment to make quality product will sustain in growth.

Products of quality and manufactured in India are accepted across various international markets. The recent acquisition of Dermalogica Skincare

by Unilever is an indication of Indian manufacturers’ commitment towards high-end quality for the consumers.

What does innovation mean today for FMCG companies to succeed?

Today, innovation is not about only making huge R&D spend upstream in formulating the products but coming up with innovative ideas in packaging to reach out good quality products to the bottom of the pyramid across different income brackets. Formulation modifications to offer customised products coupled with aggressive pricing strategies is the mantra to success. Look at Patanjali and Ghari – these brands have been able to drive their growth with strong customer centric strategies.

One very interesting example of phenomenal growth led by product innovation is the detergent industry in USA which has spread to consumer markets. This industry has observed shift from powders to liquids to concentrates to unit wash which signifies the availability of option to use a product which can save water, energy, be affordable & provides convenience. A very easy way to move forward with available technology is to go straight down to a concentrated liquid form. Unit dose with soluble polymer film is another product innovation which will soon be available in open market since its patent will expire soon. I think this is a very interesting trend that can be easily emulated in India which is still dominated by detergent powders and bars.

differentiate products by raw materials, intermediates and finished products.

There is no inverse duty structure which will simplify the processes and add to the competition. It is an excellent way forward in terms of what the industry has got now and was much needed in terms of rationalization of business processes in India. It will drive and maintain the growth that the industry envisages.

Final thoughts on the outlook for FMCG sector China and India have been growth drivers in terms of volumes, but for a while China has slowed down owing to different reasons though it continues to be ahead of India. In terms of growth and new projects, Vietnam, Indonesia, South Africa and Turkey are the developing markets. The reason being China’s per capital consumption of Personal & Home Care products have almost doubled. India is around 3.8 kg per capita, while China has already reached 7 kg per capita. The change of form and innovation has bought the change in the dynamics. So, there is a need and we have been actively promoting it within the IHPCIA and the industry to think out-of-the-box to drive innovation. It’s time to go past the conventional approach.

While formulating the products, the manufacturers also need to look at the key attributes like smaller environmental footprint, lesser energy and water consumption etc. because of the increasing awareness across consumers and their willingness to try new products.

Your thoughts on Goods & Service Tax Bill The GST bill will certainly lead to rationalization in pricing since it will

India is a segmented and diversified market which offers ample opportunities for different products and taking different approaches towards the customers. Small scale manufacturers who are innovative and have a good share could be targets for acquisition as the industry consolidates.

116 • December 2016

Chemical Engineering World

LEADERSPEAK CEW

Industrie 4.0 - Are We Prepared For India Industrie 4.0 is a meeting of real and virtual worlds in manufacturing and involves the full integration of manufacturing technologies and systems to make a “smart factor y”. The smart factor y is a highly flexible manufacturing set-up that is digitally interlinked with every aspect of the manufacturing ecosystem, from suppliers to customers. The shop floor of a smart factory comprises of intelligent, networked machines that operate autonomously to attain mass customization of intelligent, networked products.

Industrial automation accounted for more than half of the installed base for all Internet-connected devices in 2012. By 2025, the sector will account for nearly three-fourths of all connected devices, a compound annual growth rate of 36.3 per cent. The opportunity is humungous.

Industrie 4.0 has been heralded as the future of manufacturing, and the future for India is in ensuring its spot as the “digital factory of the world”. India’s thrust towards “Make in India” should keep in cognizance Industrie 4.0 and begin its positioning in this space.

Industrie 4.0 is a meeting of real and virtual worlds in manufacturing and involves the full integration of manufacturing technologies and systems to make a “smart factory”. The smart factory is a highly flexible manufacturing set-up that is digitally interlinked with every aspect of the manufacturing ecosystem, from suppliers to customers.

The shop floor of a smart factory consists of intelligent, networked machines that operate autonomously to achieve mass customization of intelligent, networked products.

Self-diagnosing and maintaining machines would be reality in Industrie 4.0. We need to rethink today’s maintenance strategy and move away from a reactive one to a condition based as well as predictive maintenance one. This will reduce the operational cost by reducing shut downs, minimizing inventory and unnecessary repairs.

Chemical Engineering World

The assets in process industry consist of thousands of individual components, including sensors that measure level, flow, and pH values. When one of these intelligent components relays a message requesting maintenance or reporting a malfunction, the responsible technicians often require information that is stored in various different IT systems operated by different stakeholders. This information includes manuals, maintenance histories, malfunction reasons, and currently available software updates or firmware.

With the help of asset information management, all this information can be merged transparently for the maintenance technician in a fraction of a second – irrespective of which database it is stored in. This not only saves time and money, it also increases plant availability.

All this today has become a reality with technologies like Web enabled Management (W@M) from Endress+Hauser.

Data Integration More and more data is being integrated in operational processes, across all levels of a company. Vertically, this integration extends from the field device & sensors in manufacturing up to the ERP system (Enterprise Resource Planning, e.g., SAP). Horizontally, it passes through the entire value creation chain from the primary supplier to the end customer.

And for Engineering, data is linked from the first planning phase for plants and through their entire life cycle. This

enablement of data integration is called Business Process Integration. We at Endress+Hauser have been doing this for a couple of years now for our customers to improve their business processes.

The final aim of Industrie 4.0 is to increase flexibility and productivity.

As such, manufacturers will be able to produce customer-specific components faster, cost-effectively, and in small quantities – while automated processes will simultaneously ensure that individual component parts are reordered and that the order remains fully transparent within the company. And one thing is clear: IT will play an even greater role in the production process than it has in the past.

Likewise, technology providers are equipping themselves to be ready to serve the market and they are actively upgrading their devices with onboard IT connectivity to allow smooth exchange of the data. As mentioned before when the global process industry is moving ahead accepting Industrie 4.0 and Indian players have limited choice but to accept it. To be part of the Industrie 4.0 revolution is not a choice any longer but is precondition to stay on course and sustain profitable growth.

Author’s Details: Sajiv Nath

Managing Director Endress+Hauser (India) Pvt. Ltd December 2016 • 117

Marketing Initiatives

Garlock India offers Innovative Fluid Sealing Solutions for Challenging Applications in Chemical Processing, Food and Pharmaceutical Applications!

F

or more than 125 years, Garlock has stood at the forefront of fluid sealing technology. Their history of growth and success is entrenched in our commitment to bring the most pioneering sealing solutions and unequalled service to the world’s processing industries.

Garlock Sealing Technologies has global manufacturing facilities which collectively produce the world’s broadest range of fluid sealing products specifically designed for industrial applications.

The product range includes GYLON®, BLUE-GARD®, GRAPH-LOCK® gaskets, Metallic gaskets, Gaskets for oxygen ser vices, THERMa-PUR™ gaskets for high temperature applications, Mechanical seals, PS-SEAL®, Valve stem packing’s, braided packing, diaphragms, Klozure® Oil Seals and Bearing Isolators, Cefil’Air® Inflatable Seals, Rubber and Metallic Expansion Joints etc. They have wide range of next generation sealing systems which can replace the traditional one to get significant extended service life and that too at most economical cost!

The major area of working are Oil a n d G a s I n d u s t r i e s, F l u i d Powe r Industries, Nuclear Power and Cryogenic Industries, Chemical, Food Processing & Pharmaceutical Industries, Agrochemical a n d Fe r t i l i ze r I n d u s t r i e s, S p a c e a n d Aeronautical Industr ies, Valve, Pump and Rotar y Equipment manufactur ing Industries, Steel and Cement Industries, M i n i n g I n d u s t r i e s , P u l p a n d Pa p e r I n d u s t r i e s, H y d r o e l e c t r i c I n d u s t r i e s, Wastewater & Water Treatment Industries, Power Generation Industries.

118 • December 2016

If your application is not falling in any of above mentioned segments; don’t worry, just give them the problems that you face in sealing area along with your application details, their highly exper ienced and technical team will help you to overcome the situation.

They have dedicated Application Engineering Department to study your applications and they will partner with customers to develop and test solutions for toughest sealing applications whether the customers are in design stage for a new project or trying to solve an existing problem.

Apar t from the highly experienced and qualified technical team, they also provide fast pre-sales and after sales service.

It is needless to mention their high standard global quality system to assure the best product from our range. Apart from these, one of their strong pillars is their own Research, Development and Manufacturing of Raw Materials. They have a long list of patented raw materials and product designs to cater to customer’s critical applications.

Contact Details: Garlock India Private Limited An EnPro Industries company Plot No 21, “S” Block, MIDC Bhosari Pune- 411 026, Contact: +91 020 3061 6608 Email: sales.india@garlock.com Web: www.garlock.com

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Marketing Initiatives

Klaus Union’s Magnetic Drive Sealless Pumps: Promising Solution to Pump Leakage From decade, process industry is facing problem of pumps failure. Among various reasons of pumps failure, mechanical seals are widely accepted as weakest point in pumping systems. If you eliminate this problem, you eliminate major pumps failure and further consequences.

6.

Possibility of shaft deflection is less as its two shaft design (inside and outside isolation shell). Hence smaller bearing sizes.

7.

Low cost of system design, operation.

8.

Zero cost of utilities like water, nitrogen, buffer fluid or compressed air required.

Considering customer needs, Klaus Union GMBH and Co. KG, Ger many star ted manufacturing of “Magnetic Drive Sealless Pumps” in year 1955 in Germany and in year 2001 in India.

9.

Concept of “Sealless” aligns with the “Go Green” initiative worldwide and helps to implement increasing stringent “Environment and Safety Laws”.

Magnetic Drive Sealless Pump: Magnetic drive sealless pump has a sealless design. The external magnets placed on drive shaft transmit power and speed to the internal magnets connected to the impeller shaft. The external magnets and internal magnets are separated by contentment shell called “Isolation shell” which is fitted on rear part of casing and is stationary component.

This “Isolation shell” provides hermetic containment of the liquid and liquid has no access to atmosphere.

When to use Mag drive Sealless Pumps:

An understanding of characteristics of pumpage is the first major point to be considered. For example, volatile liquids have low vapour pressure that result in an emission of vapours to atmosphere. Even with due care taken, mechanical seal can be source of fugitive emissions. Of course,

volatility is not the only criteria for assessing the viability of sealless pump. Toxicity, flammability and corrosiveness of liquid must be considered. In addition, sealless pump is good for extreme temperature services and liquid which are sensitive to change in temperature. This includes liquids that have low freezing point or having crystalizing nature during temperature change or when in contact with air (example: caustic).

Crystallization can occur as the liquid leaks across conventional seal faces.

I n a d d i t i o n , m a g n e t i c d r i ve s e a l l e s s pump can be used for handling ver y expensive liquids.

Liquids with Solid handling with MDP

Without any additional features, for all Klaus Union standard pumps, maximum allowed concentration of solids in pumped liquid is

Advantages of Magnetic Drive Sealless Pumps

1.

Frequency of failure of mag drive sealless pumps is much less than mechanical seal pumps under standard operating conditions. Hence, Cost of production loss is considerably reduced.

2.

Unlike double mechanical seal pumps, no support systems like seal flushing plans are required to design, procure, and install operate and maintain. Hence making installation simpler without any complex support system requirements.

3.

Magnetic drive pumps are zero leakage design resulting into less impact on environment.

4.

Easy to maintain. No potential leak paths.

5.

No emission of liquid fumes.

Chemical Engineering World

December 2016 • 119

Marketing Initiatives Table 1- Cost Comparison : Sealed vs Sealless Pump D o u b l e M e c h a n i c a l Magnetic Drive Sealless Seal Pump Pump Capital Investment Procurement and Installation cost Running Cost Operating Expenses Cost of inspection and maintenance of seal and seal support system Cost of failure Mean time between failure (under standard operating conditions) Total life cycle cost

High

Low

Similar High

Similar Not applicable

Very High

Very Low

High

20-40% low than sealed pumps

Other Costs : Cost of lost production, disposal and decontamination of pump parts, barrier fluid/gas supply, and potential environment loss are not considered above.

1 % and maximum particle size is 0,4 mm.

Characteristics of solids should be nonabrasive, non-magnetic, non sticky.

However, with special features like internal filter, in-line discharge filter or external flushing and reduced internal flush flow designs, liquid with 20% solid concentrations can be successfully handled. Solid particles of abrasive, magnetic or sticky can be handled with these special arrangements.

Pump Jacketing:

Liquids with crystalizing nature at low temperature or during shut down / upset conditions can be handled by providing pump jacketing.

Protecting Magnetic Drive Sealless Pumps

Table 2- Klaus Union Product Range Features

Details / Range

Industry

Chemical, Agro-Chemical, Fertilizer, Oil and Gas, Refineries, Petrochemical, Pharmaceuticals

Liquid Types

Hazardous, Toxic, Corrosive, Liquid with low vapour pressure High temperature, Crystallizing, Hard to seal, Expensive Heat transfer fluids

Codification ISO/API

OH2, OH1, BB5, VS4, Side Channel

Pump Types

Centrifugal, Single / multi-stage, Horizontal / Vertical

Design standard

DIN EN ISO 2858 / DIN EN ISO 15783 ASME B 73.3 , API 685

Temperature range

-120 / + 450 Deg. C

Max. Flow rate

1 m3/hr to 3500 m3/hr

Max. Differential Head

700 MLC

Features

Details / Range

Solid handling capacity

Max. up to 20%

Max. working Pressure

PN400

Power

700 kw

Most pumps failure is caused by: Dr y running or flow rate below defined.

•• High flow over defined •• Pump operation at closed suction valve condition.

•• Pump operation at shut off.

•• Cavitation ••

This can be eliminated by using “load/power controller”. This device monitor the actual power consumed and trips motor if it falls below or above calibrated values.

Moreover, we can provide temperature sensors. These sensor measures temperature of isolation shell and give us indication of process or mechanical problem within pump.

Life cycle cost

In most cases, the long service life and minimum maintenance costs provide a high competitive life cycle cost. Over the period of time and experience, we arrived at conclusion about cost as mentioned in Table-1.

Material of construction: Cast Steel (S-8), Stainless steel (A-8), Hast-B (H-1), Hast-C (H-2), Alloy-20 (A-9), Titanium (T-1), Duplex (D-1); NACE MR0175 compliant and many more .

Special Features: ••

••

Low NPSH applications, Designed for pumping liquids with solid content up to 20%, Special designs for pumping liquids close to boiling point, several secondary control/containment and systems including double isolation shell designs for ultimate safety, Integral heating jacket, Self-cleaning filters, Isolation shell without eddy current losses. Other designs on request.

Due to the variable modular system, each combination is possible over 142,022,720 variations available as standard.

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Contact Details:

Klaus Union Engineering India Pvt. Ltd. Gate No.-1197, Ghotawade Phata, Pirangut, Tal-Mulshi, Pune - 412108, India Contact: +91 7767037766 Email: s.shahane@klaus-union.com Chemical Engineering World

Products CEW Canned Motor Pump Kirloskar Canned Motor Pump (i-CM) pump, categorised under i - CAN pumps Series, caters to industries such as refrigeration (cold storage), ice plants, chemical and process and windmill. i-CM pumps are mainly used for pumping hazardous fluids such as radioactive coolants, corrosive and noxious liquids (free of suspended solids and par ticles), liquefied gases, etc.

The pump’s compact, lightweight yet sturdy design with less number of components ensures that it minimises assembly and dismantling time and occupies less space. The pump is hailed as a step-up from the conventional mechanical seal pump categor y, which requires heavy maintenance. It comes with innovative features, such as optimised stator and rotor design, apar t from its compact size, 80% lighter body than conventional canned motor pump, and includes seamless stator band, off the shelf ter minal box, three in one adapter plate, optimised bearings and sleeves, and improved aesthetics and application base bearing wear monitoring system. Besides, it is known to reduce assembly time by 50%.

KBL offers multiple value added features including advance monitoring systems with pump controller (temperature indication, discharge/suction pressure indication, vibration and dry run indication), alternative material for impeller and pump casing and alternative bearing material that ensures long life of the pump.

For details contact: Kirloskar Brothers Ltd Global Headquarters Yamuna Survey No: 98/(3-7), Baner, Pune, Maharashtra 411 045 Tel: 020-27214444 or Circle Readers’ Service Card 1

Servo Amplifier More safety features in drives can benefit mechanical and plant engineering sector as Kollmorgen reveals its new generation of AKD servo amplifiers. The specialist provider of servo drive technology and motion control will be unveiling the new second-generation AKD servo amplifier concept, a concept that has plenty to offer in terms of safety.

When safety technology kicks in faster and there are more functions available, man and machine together can work even more closely. Collaborative production is all the rage and Kollmorgen is keen to highlight the contribution of its servo drive technology. The new range of products are planned to launch in 2017. It features new processors which increase the computational power available which suppor ts faster control performance. From a safety perspective, AKD2G amplifier will offer impor tant safety functions in the form of Safe Brake Control (SBC) and Safe Brake Test (SBT), which offers an efficient and cost-effective way of making ver tical axes safe without the need for protective fences.

For details contact: Kollmorgen India 1001 Sigma House Hiranandani Business Park Powai, Mumbai 400 076 Tel: 022-42270300 E-mail: snehal.ambre@kollmorgen.com or Circle Readers’ Service Card 2

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December 2016 • 121

CEW Products PTC Thermistors

Process Indicators

PTC thermistors are semi-conductor sensors. These have typical characteristics that change their resistance instantly at a specified pre-defined response temperature (NRT). As soon as the surrounding temperature of PTC reaches its NRT value the body resistance of PTC thermistor rises sharply from 200/250 ohms to more than 5,000 ohms. The PTC thermistors are embedded in the overhang location of the motor windings.

Electronic Switches (I) Pvt Ltd offers 4-digit, microcontroller universal indicator with microcontroller-based technique with settable decimal point position and adjustable span.

Display size is 19-mm and 4-inch seven segment solid to suit the requirement. Unit operates on 220-V AC supply and accepts universal input from 0-10 V DC or 4-20 mA. Full scale reading corresponding to 10-V or 20-mA span is adjustable at site.

The NRT value of PTC is selected according to the insulation class of the copper windings of motor or transformers.

These are used in displaying various parameters such as flow temperature, pressure, viscosity, pH, displacement, speed, etc, proportional to the input signal.

For details contact: Electronic Switches (India) Pvt Ltd Plot No: K-11, MIDC Area Ambad, Nashik Maharashtra 422 010 Tel: 0253-6607701, 6603954 Fax: 91-0253-2380918 E-mail: electronic.switches@gmail.com

For details contact: Minilec (India) Pvt Ltd S No: 1073/1-2-3, At Post: Pirangoot Pune, Maharashtra 412 111 Tel: 020-22922162, 22922354 Fax: 91-020-22922134 E-mail: mkt1@minilecgroup.com or Circle Readers’ Service Card 3

or Circle Readers’ Service Card 4

EtherCAT Measurement Technology Modules Beckhoff offers its new device series for high-end measurement technology. The new EtherCAT measurement technology modules can be directly integrated into the modular EtherCAT communication system and combined with the extensive portfolio of more than 500 other EtherCAT Terminals. At the same time, the durable housings provide enhanced flexibility at the interface level, such as for LEMO or BNC plug connectors or for the established cage clamps as a quickly customisable standard solution. Measurement accuracy of 100 ppm at 23oC, precise synchronisation of <1 µs, and the high sampling rate of up to 50,000 samples per second guarantee high quality data acquisition.

The new high-end measurement technology series complements the existing range of measurement terminals. At product launch, the offering includes 11 modules with different interfaces and input circuitry. These can cover, for example, voltage measurement of 5 mV…30 V, current measurement of ±20 mA, IEPE, thermocouples, RTD (PT100/1000) or strain gauge/load cells with full, half or quarter bridge with internal extension or potentiometer. The measuring ranges of the input channels can be flexibly parameterised, both electrically and on the software side. Additional properties include integrated distributed clocks as well as the ExtendedRange feature, which provides users with the full technical measuring range, ie, up to 107 per cent of the specified nominal measuring range can be achieved, depending on the measuring range in question.

The EtherCAT measurement technology modules are optionally available with a factory calibration certificate.

For details contact: Beckhoff Automation Pvt Ltd Suite 4, Level 6, Muttha Towers Don Bosco Marg, Yerwada Pune, Maharashtra 411 006 Tel: 020-40004802 Fax: 91-020-40004999 E-mail: a.phatak@beckhoff.com or Circle Readers’ Service Card 5

122 • December 2016

Chemical Engineering World

Products CEW Global Test Cell for Centrifugal Compressors

Sampling Valves

The live MIMIC and Real Time Data Capture record accurate data as High Accuracy Sensors and National Instruments cRIO hardware are installed for the offering. The testing is done in an Acoustic Enclosure to ensure lower noise levels outside the test cell. The customers also get a Test Certificate along with their machine images while the testing is in process.

The 33 Series is machined from SS-304l or SS-316L, has no seats or seals and works by a simple quarter turn handle. The 34 Series sample valve which is machined from SS304L or SS-316L bar stock, is completely self-draining and has PTFE seat and FDA silicone seals. The 33 Series is available with 3/8” or ½” MNPT and 1” clamp connections and the 34 Series comes with ½” MNPT as well as ½” or 1” clamp connections. The 34 Series has a leak detect port that indicates when a seal has worn out. The 34 Series is available with ½” SIP flushport as optional. The 35 Series sample valve is machined from SS-316L bar stock. Provides a quick and easy way to bleed or drain a system.

Floating PTFE O-ring ensures positive sealing and clean ability. The 35 Series is available with ½” and 1” sanitary clamp connections.

For details contact: Ingersoll Rand India Plot No: 35, KIADB Indl Area Bidadi, Bengaluru Karnataka 562 109 E-mail: airsolutionsindia@irco.com

For details contact: Cipriani Harrison Valves Pvt Ltd 1901 GIDC, Phase IV, Vitthal Udyognagar Vallabh Vidyanagar, Gujarat 388 121 Tel: 02692-235082, 235182, Fax: 91-02692-236385 E-mail: info@harrisonengineers.com

Ingersoll Rand offers a state-of-the-art global test cell for centrifugal compressors. Every centrifugal compressor, whether new or in service needs to be tested to verify its performance under strict controlled conditions at a manufacturing plant or in the field at actual operating conditions. The purpose of this performance test is to verify that a centrifugal compressor will perform in accordance with the design at the operating conditions given in the specifications.

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AODD Pumps Shanbhag & Associates is the sole, authorised, national distributor for the entire range of Lutz products with an all-India sales/service network. The Lutz air-operated double diaphragm (AODD) pumps are a natural complement to the Lutz pump range. The fundamental similarities are found in their simplicity, versatility, ease of handling and maintenance. Pump sizes range from 1/4” to 3”. Pump housings are available in Polypropylene, PVDF, Nylon, Aluminium and Stainless Steel. Internals are available in Teflon, EPDM, Nitrile Rubber or Viton.

The pumps run on dry, non-lubricated, clean air. Lutz double diaphragm pumps are in bolted construction and are designed for a variety of industrial applications. They are self-priming and can carry solid particles/slurries without any damage. Non-stalling is a guaranteed feature of the Lutz AODD pumps.

AODD pump is absolutely lube-free, non-stalling in operation, corrosion-free, weight reduction. Air valve body is available in corrosion-free engineered plastics, commonality of spares across models and sizes.

It finds application in pharma, glass and fiberglass, oil and gas, marine/shipbuilding, metal and steel, effluent treatment, paint, aircraft, electroplating/surface treatment, food and beverage, automotive, chemical, clay and ceramics, etc.

Shanbhag & Associates provides ready stock of pumps spares and accessories from their godown.

For details contact: Shanbhag & Associates B-50 Nandbhuvan Indl Estate, Mahakali Caves Road Andheri (E), Mumbai 400 093 Tel: 022-40365700, 40365711 Fax: 91-022-40365712 E-mail: info@shanbhags.com or Circle Readers’ Service Card 8

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December 2016 • 123

CEW Products ADM Flow Meter Maintaining a NIST-Certified flow meter is easier and more convenient than ever. Now you can replace the flow meter cartridge in your own lab to recalibrate – increasing uptime while saving time and money spent on shipping and paperwork.

The Agilent ADM flow meter is a reliable platform for measuring volumetric gas flow without having to know the gas composition (limited to non-caustic gases). Moreover, the Agilent ADM flow meter does not have to be shipped back for recalibration to maintain NIST-Traceable Standards. Simply order a new NIST-calibrated cartridge and replace the old cartridge yourself.

A built-in calibration timer automatically warns you when the calibration cartridge needs replacing. This minimizes the risk of volumetric measurement drift. The kickstand feature allows you to conveniently operate above bench level. There is no need to ship the flow meter out every time a firmware upgrade is needed. Large OLED display lets you see the flow parameters without having to stand next to the device.

For details contact: Agilent Technologies India Pvt Ltd CP-11 Sector 8, Technology Park IMT Manesar, Haryana 122 051 Tel: 0124-4863000 E-mail: cag_india@agilent.com

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Drum Pumps Shanbhag & Associates is the authorised national distributor for the entire range of Lutz products.

Lutz Pumpen GmbH & Co KG, Germany is the premier manufacturer of electric and pneumatic drum/container pumps in the world. The Lutz concept allows the complete pump (drive motor and pump tube) to be used in different containers and liquids as long as components in the pump tube are approved for use in the liquids.

Lutz drum pumps can handle liquids which are aggressive, flammable, thin, viscous, hot or cold, hazardous to ground water and the environment, and vary with respect to their density.

The wide variety of liquids and container types/dimensions necessitates an extensive range of drum pump models. They are available in a variety of materials, equipped with electric/air motors adapted to the output requirements, for different voltages (AC/DC), explosionproof for hazardous applications, pneumatically-operated, with the required delivery rate and a suitable sealing system. Added to this are pump tubes in varying lengths and wide range of accessories permitting, eg, adaptation to problematic containers or operating conditions. Pump tubes are available with centrifugal impeller or with eccentric screw principle constructions. Tube materials are in PP/PVDF/Alu/SS-316 (Ti)/Hast-C. Tube drivers are available in electric (FLP/Non-FLP) and pneumatic options. Drum pumps can be offered in sanitary and non-sanitary constructions.

For details contact: Shanbhag & Associates B-50 Nandbhuvan Indl Estate, Mahakali Caves Road Andheri (E), Mumbai 400 093 Tel: 022-40365700, 40365711 Fax: 91-022-40365712 E-mail: info@shanbhags.com or Circle Readers’ Service Card 10

124 • December 2016

Chemical Engineering World

Products CEW Purified Water Generation System The Indu Ionpure water system is a standard single skid design that includes pre-treatment, reverse osmosis and electro-deionization on one interpreted skid for fast installation and start up. The validatable system offers a pre-designed space saving layout that is cost-effective and assures the reliable production of USP grades of water.

The complete system provides for sanitary piping and instrumentation from the RO through to the EDI outlet. The entire system is controlled by a PLC-based control system. Two designs are available for sanitization either hot water or chemical.

Each system is manufactured under strict quality control procedures conforming to ISO 9001:2000. To assure the system is ready for fast start-up in your facility, each system is wet factory acceptance tested (FAT) prior to shipment.

The standard single skid approach is applicable to many markets and applications. These systems are designed for USP applications, using sanitary components, but in non-sanitary applications less expensive components can be substituted without compromising the product quality or operational reliability.

For details contact: Indu Ionpure 1513 Ghanshyam Enclave Laljipada Police Station Link Road, Kandivli (W) Mumbai 400 097 Tel: 022-28680079 E-mail: sales@induionpure.com

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Super Adhesive Tapes Goodwill Retails Pvt Ltd offers a range of FiberFix super adhesive tapes. FiberFix combines industrialstrength fibre and specialised resin into a wrap that will bond to almost anything, hardens like steel and provides a permanent fix. Using FiberFix, consumers can fix things that either could not be fixed before or could not be fixed inexpensively.

Simply dip FiberFix in water to activate the specialised resin and then wrap just like tape. Within about 10 minutes FiberFix hardens with incredible strength and rigidity. Where duct tape and other types of tape may provide a short-term band-aid, FiberFix provides a permanent fix. Product description: comes in four sizes – 1” x 12”, 1” x 40”, 2” x 50” and 4” x 60”; each roll is considered a single use item; each roll comes in an air-sealed pouch; once this pouch is opened, the wrap needs to be used right away; and each roll comes with a pair of gloves which adds convenience in working with FiberFix. Product features: amazingly strong; simple to use; rapid cure (2-5 minutes); hardens like steel; waterproof; heat and cold resistant; and sandable and paintable.

For details contact: Goodwill Retails (P) Ltd Office No: 2, Novelty Chambers, 2 nd Floor 124 M S Ali Road, Grant Road (E) Mumbai 400 007 Tel: 022-23021220 E-mail: fiberfixindia@hotmail.com / goodwillretailspvtltd@hotmail.com or Circle Readers’ Service Card 12

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December 2016 • 125

ARABPLAST 2017

Chemtech World Expo 2017 Dates: 14 – 17 February 2017 Venue: BC&EC Mumbai, India Details: Platform to showcase services, technologies, innovations and current & future trends of entire value chain of process industry.

Contact: +91 22 40373636 Email: sales@jasubhai.com Website: www.chemtech-online.com

3rd National Conference on Plastic Processing with focus to “Sustainable Infrastructure” Dates:

4th January, 2017

Venue:

New Delhi, India

Details: Infrastructure is a key driver for the Indian economy.

This segment is highly responsible for pushing India’s overall development and enjoys focus from government for policies, ensuring timely creation of world class infrastructure. The Government of India is taking every possible initiative to boost the infrastructure sector.

The Government of India has relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement. It has also liberalised the exit norms.

In fact, the Cabinet has also approved the proposal to amend the FDI policy. This all opens many windows of opportunities for Indian Plastic Sector.

Organiser: FICCI Contact: +91-11-23316540 Email: Prabsharan.singh@ficci.com Website: http://ficci.in/events-page.asp?evid=23002 6th AIA Industrial Expo 2017 Dates: 26-28 January, 2017 Venue: Ankleshwar, India Details: This event showcases products like Agro Chemicals, Fertilizers, Pesticides, Dyes, Pigments & Dyes Intermediates, Fine & Specialty Chemicals, Chemical Plants & Machinery, Foundry Machinery, Chemicals and Gear & Gear Boxes and

Dates: 8-10 January, 2017 Venue: Dubai, UAE Details: On display at Arabplast 2017 are new products and technologies in injection moulding, blow moulding, wrapping and packaging, pre and post plastic processing techniques as well as raw materials, such as additives and polymers. The show covers a wide spectrum of plastic machinery, plastic/rubber processing technology, pre and post-processing systems, plastic packaging technology, injection moulding, blow moulding, wrapping technology, extrusions, chemicals and additives, semi-finished goods, engineering plastics and plastic products Organiser: AL FAJER Information & Services Contact: +49 (0) 211/4560-7762 Email: SchreiberG@messe-duesseldorf.de 2017 GlobalChem Conference and Exhibition Dates: 22-24 February, 2017 Venue: Washington D.C, USA Details: The event will include discussions about how the industry can support the U.S. Environmental Protection Agency’s efforts to effectively and efficiently implement key provisions of the LCSA; how the new law have a meaningful impact on consumer and marketplace confidence in the safety of chemicals; and, how the LCSA can serve as a risk-based model for chemical regulation internationally.

Organiser: American Chemistry Council Contact: (202) 249-6500 Email: ashley_musselman@40americanchemistry.com We b s i t e : h t t p : / / w w w. c ve n t . c o m / eve n t s / 2 0 1 7 - g l o b a l c h e m conference-and-exhibition/event-summary-4d55dab517b94088a 0bef8c286526096.aspx China International Machine Tool Exhibition Dates: 9-12 March 2017 Venue: Tianjin Meijiang Intl Convention & Exhibition Center, Tianjin, China Event: China Tianjin International Foundary Heat Treatment and Industrial Furnace Exhibition is a major event based on the upcoming modern heating and furnace technologies and applications. Huge and advance varieties of products and services will be displayed in the event providing varied options of

many more etc. in the Chemicals & Dyes, Plants & Machinery

the visitors and exhibitors to fulfill their preferential requirements.

industries.

Retailers, manufacturers and buyers associated with this sector

Organiser: Ankleshwar Industries Association

will show their active participation in the conference.

Contact: +91-98250 42135

For details contact:

Email: info@ankleshwarexpo.com

Organiser: Tianjin Zhenwei Exhibition Co, Ltd

Website: www.ankleshwarexpo.com

Contact: Tel: +(86)-(22)-66224066, Fax: +(86)-(22)-66224099

126 • December 2016

Chemical Engineering World

Project Update CEW New Contracts/Expansions/Revamps The following list is a brief insight into the latest new projects by various companies in India.

CHEMICALS M Chemicals proposes an expansion from 10-TPM to 35-TPM of its synthetic organic chemicals manufacturing unit in GIDC Sachin, district: Surat, Gujarat. The estimated cost of the expansion is ` 12-million. The current status of the project could not be ascertained. According to MoEF sources, EIA report has been prepared by Aqua-Air Environmental Engineers. The existing plant manufactures 10-TPM 6-Nitro, 1-Diazo, 2-Napthol, 4-Sulphonic Acid. The expansion entails addition of new products namely, 25-TPM G-Salt, R-Salt, Amido G-Acid, Aniline 2,4 DSA, Aniline 2,5 DSA, Para Nitro Chloro Benzoyl Sulphonic Acid, Sulfo Tobias Acid, Para Cresidine Ortho Sulphonic Acid, Schaffer’s Acid, Broenner’s Acid. Total plot area is approximately 1,650-sq m, out of which, 300-m 2 has been used for green belt development.

5-KLD effluent will be treated in-house ETP and 10-KLD effluent will be sent to common MEE of MEPL for evaporation.

Mamta Texdyes (Samba) proposes a synthetic organic chemicals manufacturing unit in GIDC Sarigam, district: Valsad, Gujarat.

The project is spread over 2,250-sq m. The estimated cost of the project is ` 32-million. The current status of the project could not be ascertained. According to SEIAA sources, Eco Chem Sales Services is the environmental consultant. The proposed products are 200-TPM sulphur black grains, 300-TPM sulphur black liquid and the by-products are 250.1-TPM sodium thio sulphate crystal and 47.12-TPM sodium chloride salt. 700-sq m area has been proposed for green belt development. Industrial waste water will be treated in primary and tertiary treatment plant and treated waste water will be discharged into CETP Sarigam.

Resipol Adhesives proposes an expansion of synthetic organic chemicals manufacturing unit in village: Rajpur, district: Mehsana, Gujarat. The estimated cost of the expansion is ` 40-million. The current status of the project could not be ascertained. According to SEAC sources, the manufacturing of existing products, 2.0TPM benzyl alcohol, 1.1-TPM benzyl benzoate, 3.0-TPM benzoic acetate, 1.4-TPM sodium benzoate, 1.8-TPM sodium acetate will be discontinued and 300-TPM polyester resins (different grades) and alkyd resins (different grades), 90-TPM melamine formaldehyde resin and 85-TPM urea formaldehyde resin will be manufactured as new products. The plot area is approximately 6,033.00-sq m. Unit has proposed 2,000-sq m area for green belt development. Industrial effluent of 0.42-KLD after primary treatment will be evaporated in kettle type evaporator. Two DG sets each of 65-KVA will be provided. It was decided to recommend the project to SEIAA, Gujarat for grant of environmental clearance.

Royal Wood proposes a 90-TPM phenol formaldehyde resin, urea formaldehyde resin, melamine urea formaldehyde resin and melamine formaldehyde resin manufacturing unit in village: Chemical Engineering World

Modvadar, district: Kutch, Gujarat. The current status of the project could not be ascertained. According to MoEF sources, existing products are 3-million sq m per month plywood, flush door, block board and veneer. The manufactured resin will be used for in-house consumption at the wood products plant. The project will come up on 11,603.62-sq m of existing land. The greenbelt area is 600-sq m. A base platform will be constructed for the resin plant; remaining will be MS structure.

Eternis Fine Chemicals proposes an expansion of synthetic organic chemicals manufacturing unit from 42,200-TPA to 60,000-TPA in MIDC Kurkumbh, district: Pune, Maharashtra. The current status of the project could not be ascertained. According to MoEF sources, total land area is 100,400-sq m and built-up area is 42,710-sq m. 33 per cent will be developed as green belt area. The project will entail: 1) capacity expansion of existing products and by-products; 2) addition of similar products and by-products; 3) introduction of new eco-friendly biomass boiler as replacement to furnace oil. Project involves manufacturing of fragrance from organic raw materials by chemical process like hydrogenation, esterification, Diels-Alder reaction, cyclisation, dehydrogenation, aldol condensation, etc, followed by distillation to match precise quality standards. By-products capacity will be augmented from 11,400-TPA to 20,000-TPA. The estimated cost of the project is ` 1,050-million. The power requirement 12,000KVA will be available through Government Electricity Board.

Panoli Intermediates (India) proposes an expansion of its specialty chemicals manufacturing unit and a new 10-MW coal-based captive power project in Unit-III, GIDC Nandesari, district: Vadodara, Gujarat. The estimated cost of the project is ` 100-million. The current status of the project could not be ascertained. According to MoEF sources, the total plot area is 15,480-sq m. The capacity of isomers and DNCB such as 2:4 DCNB, 2:6 DCNB, 2:5 DCNB is to be augmented from 200-TPM to 2,200-TPM, ortho anisidine/para anisidine from 100-TPM to 1,100-TPM, ortho nitro aniline/para nitro aniline from 300-TPM to 2,300-TPM, isomers of DCA from 80-TPM to 1,080-TPM, isomers and DCNB such as 2:3 DCNB, 2:5 DCNB. isomers of DCNB such as 2:3 DCNB, 2:5 DCNB, 3:4 DCNB from 200-TPM to 2,200-TPM, H-acid from 50-TPM to 500-TPM and addition of a new product namely, 1,500-TPM derivatives of nitro phenol and a new 10-MW coal-based captive power project. 10-MW power requirement is to be met from MGVCL and 10-MW from the captive power project. The effluent will be treated in proposed effluent treatment plant.

Saras Plywood Products is planning a 60-TPM urea formaldehyde resin manufacturing plant in New GIDC Gundlav, December 2016 • 127

CEW Project Update district: Valsad, Gujarat. The existing land area is 1.5 acres. The estimated cost of the project is ` 7.5-million. Kalyan Industries is the equipment supplier. The project is waiting for environmental clearance. Civil work will commence in 3 months. The project is planned for completion in this year. According to SEIAA sources, the company has proposed primary treatment plant followed by evaporator for treatment of industrial effluent and has also proposed a multi-cyclone separator.

FMC India is planning an expansion of its chemical manufacturing unit at IDA Patancheru, district: Medak, Telangana. The estimated cost of the project is ` 17.5-million. As of September the project was waiting for the environmental clearance. According to MoEF sources, the plot area is 4.027 acres. The company proposes to manufacture 50-TPM of products as part of the expansion.

Green belt on 33 per cent of the land area will be developed and maintained. Power requirement will be made available through SPCPDCL. The project will be completed within 2 years.

Globex Laboratories (R&D) proposes a pigments manufacturing unit at village: Dabhasa, district: Vadodara, Gujarat. According to MoEF sources, the project will come up in the existing land on 9,312-sq m. Kadam Environmental Consultants, Vadodara is the environmental consultant. The project will entail manufacture of 40-TPM red pigments, 40-TPM yellow pigments and 450-TPM dilute phosphoric acid. Environment clearance has been obtained for the products â&#x20AC;&#x201C; red pigments and yellow pigments. Construction work has begun, as EC and NOC have been received. Effluents generated will be treated in effluent treatment plant having MEE. The company has applied for Amendment in Environmental Clearance dated 26 th September 2012 for change in fuel from LDO to agro waste briquettes and addition of one raw material, ie, phosphoric acid and generation of dilute phosphoric acid (25 per cent basis) as by-product.

Bohra Industries is implementing an expansion of its chemical and fertilizer manufacturing unit at Umarda, district: Udaipur, Rajasthan on 14,500-sq m of existing land. The project will entail expansion of single super phosphate capacity from 400TPD to 600-TPD, granulated super phosphate from 200-TPD to 300-TPD and addition of new products namely 150-TPD triple super phosphate, 550-TPD synthetic gypsum, 30-TPD Di-calcium phosphate, 160-TPD phosphoric acid, 0.3-TPD potassium fluoride, 150-TPD H 2SO 4 and 0.3-TPD Sodium Tri Polyphosphate (STPP). Machinery has been ordered from China. Civil work is in progress. The project is scheduled for completion in 2018.

Ami Lifesciences proposes expansion of its synthetic organic chemicals manufacturing unit (viz, pharmaceutical bulk drugs and drug intermediates) from 65.70-TPM to 131.60-TPM in Padra, district: Vadodara, Gujarat. The estimated cost of the project is ` 87.046-million. Environmental Consultant to this project is Envisafe Environment Consultants. According to MoEF 128 â&#x20AC;˘ December 2016

sources, total plot area is 23,760-sq m (existing 10,270-sq m and 13,490-sq m for expansion). The unit currently manufactures 2-TPM 1-Acetyl Naphthalene, 1-TPM 2-Acetyl Naphthalene, 6-TPM Itopide HCl, 1.20-TPM Loxapine Succinate, 0.30-TPM Amoxapine, 6-TPM Venlafaxine, 6-TPM Progunil HCl, 6-TPM CB-2-L-Valine, 0.60-TPM Nateglinide, 0.60-TPM Quetiapine, 24-TPM Carbomazepin and 12-TPM Oxacarbomazepin.

The expansion will involve addition of new products. Water requirement from ground water source will be increased from 34.53-cu m/day to 181-cu m/day after expansion. Effluent generation will be increased from 9.35-cu m/day to 79.5-cu m/day after expansion. Highly concentrated effluent will be sent to captive incinerator for incineration. Remaining effluent (70-cu m/day) will be treated in the ETP comprising primary, secondary and tertiary treatment. Treated effluent will be sent to CETP for further treatment. ETP sludge, inorganic residue and incineration ash will be sent to TSDF. Spent carbon, organic residue will be sent to incinerator.

Adi Finechem is planning a 40-TPA specialty products manufacturing project on a 2-acre land at an estimated cost of ` 400-million in village: Chekhala, district: Ahmedabad, Gujarat.

The project is waiting for environmental clearance.

RSPL is planning a 1,500-TPD soda ash plant and 40-MW captive power project in village: Kuranga, district: Jamnagar, Gujarat.

Land acquisition is in progress. 85 per cent of land has been acquired. The project is waiting for environmental clearance. The entire project is planned for completion in 5 years from zero date.

MINING Metabluu Power, a sister concern of Minera Udyog India, is planning a 75,000-TPA iron ore mining project in village: Devikonda, district: Karimnagar, Telangana. The project is awaiting Government approval.

Aryan Ispat & Power is planning an expansion of its coal washery in village: Bamoloi, district: Sambalpur, Odisha. The project will come up in the existing 204.65-acre integrated steel plant premises. The capacity of the project is to be augmented from 0.70-MTPA to 5.70-MTPA. The cost of the project is ` 600.7-million. The project is awaiting environmental clearance and planned for completion in 1-year from zero date. According to MoEF sources, the expansion is based on heavy media cyclone (wet process) technology. The washery will produce washed coal of an average ash around 34% (GCV 4,350Kcal/kg), middling (ash content about 58%) of GCV around 2,350-Kcal/kg useable as fuel in FBC boilers. The proposed expansion will be the state-of-the-art with close circuit water system, classifying cyclone, high frequency screens, thickener and multi-roll belt press filters. Power requirement of 5-MVA will be sourced from its own power plant connected with the Grid Corporation of Odisha.

Chemical Engineering World

Book Shelf CEW Industrial Wastewater Treatment: A Guidebook Author/s: Joseph D. Edwards ` 7,391 Price: Page: 192(Hardcover) Publisher: CRC Press About the Book: Managing wastewater is a necessary task for small businesses and production facilities, as well as for large industrial firms.

Industrial Wastewater Treatment: A Guidebook presents an approach to successful selection, development, implementation, and operation of industrial wastewater treatment systems for facilities of all sizes. It explains how to determine various properties about wastewater, including how it is generated, what its constituents are, whether it meets regulatory requirements, and whether or not it can be recycled. It describes methodologies for developing and maintaining a suitable treatment program, determined by the type of company under consideration. Examples of treatment systems which have been installed in various types of businesses over the past several years are presented in a manner that clearly illustrates successful treatment methods.

Heat and Mass Transfer Author/s: Shyam K. Agrawal Price: ` 1,163 Page: 436 (Paperback) Publisher: Anshan Ltd About the Book: Heat and Mass Transfer is a compulsory subject for mechanical, chemical, production, aeronautical and metallurgical engineering students. Therefore the contents have been designed to meet the requirements of all these disciplines and the book will prove to be an excellent university level textbook. The salient features are:- The physical concepts have been presented as answers to frequently asked review questions in a simple, systematic and lucid manner 292 worked out examples illustrate the physical concepts and their applications About 220 multiple choice questions with answers More than 150 numerical with answers for practice Aerodynamic heating, frost bites, heat pipes and mass transfer problems discussed in detail

Analysis, Synthesis and Design of Chemical Processes Author/s: N.D. Turton Price: ` 562 Page: 1104 (Paperback) Publisher: Prentice Hall India Learning Private Limited About the Book:Process design is the focal point of chemical engineering practice: the creative activity through which engineers continuously improve facility operations to create products that enhance life. Effective chemical engineering design requires students to integrate a broad spectrum of knowledge and intellectual skills, so they can analyse both the big picture and minute details - and know when to focus on each. Through three previous editions, this book has established itself as the leading resource for students seeking to apply what they’ve learned in realworld, open-ended process problems. The authors help students hone and synthesize their design skills through expert coverage of preliminary equipment sizing, flowsheet optimization, economic evaluation, operation and control, simulation and other key topics. This new Fourth Edition is extensively updated to reflect new technologies, simulation techniques and process control strategies and to include new pedagogical features including concise summaries and end-of-chapter lists of skills and knowledge.

Chemical Engineering World

Industrial Automation: Hands On Author/s: Frank Lamb Price: ` 5,900 Page: 368 (Hardcover) Publisher: McGraw-Hill Education About the Book: book The is a single source of essential information for those involved in the design and use of automated machinery. The book emphasizes control systems and offers full coverage of other relevant topics, including machine building, mechanical engineering and devices, manufacturing business systems, and job functions in an industrial environment. Detailed charts and tables serve as handy design aids. This is an invaluable reference for novices and seasoned automation professionals alike.

It covers• •

• • • • • •

• •

Automation and manufacturing Key concepts used in automation, controls, machinery design, and documentation Components and hardware Machine systems Process systems and automated machinery Software Occupations and trades Industrial and factory business systems, including Lean manufacturing Machine and system design Applications December 2016 • 129

CEW Ad Index Sr.

No.

Client’s Name

Page No

Sr.

No.

Client’s Name

Page No

Inside Cover I

25

Mazda Ltd

95

Beda Flow Systems Pvt Ltd

39

26

Mist Ressonance Engineering Pvt Ltd

23

3

Bonfiglioli Transmission Pvt Ltd

75

27

Newgenre Engineering Services

97

4

Busch Vacuum India Pvt Ltd

21

28

Paharpur Cooling Tower

35

5

CRI Pumps Pvt Ltd

67

29

Parth Enterprises

93

6

Cole-Parmer India

65

30

Premium Transmission Ltd

53

7

Ekato India Pvt Ltd

55

31

Prima Equipment

77

8

Evergreen Technologies Pvt Ltd

41

32

Ravel Hiteks Pvt Ltd

97

9

Fluorotech Engineering Works

91

33

Sandvik Asia Pvt Ltd

11

10

Garlock India Pvt Ltd

69

34

SGL Carbon India

85

11

Gea Process Engineering (I) Ltd

5

35

Shanbhag & Associates

43

12

Ghatge Patil Industries Ltd

16 & 17

36

SSP Pvt Limited

59

13

Goodie International Pvt Ltd

83

37

Suraj Ltd

95

14

Heidelberg ProMinent Fluid Controls India Pvt Ltd

97

38

Swastik Industrial Valves Pvt Ltd

91

15

Hi-tech Applicator

3

39

Tecnimont Pvt Ltd

57

16

Horizon Polymer

7, 18 & 19

40

ThyssenKrupp Industrial Solution (India) Pvt Ltd

51

17

IMI Norgren Herlon Pvt Ltd

71

41

Time Technoplast

27

18

Impart International Pvt Ltd/Munsch Chemie

9

42

Uni Klinger Ltd

63

19

Ion Exchange (India) Ltd

79

43

UNP Polyvalves (India) Pvt Ltd

20

Jay Water Management Pvt Ltd

81

44

Vac Enterprises

93

21

Kevin Enterprise

33

45

Vega India Level Pressure Measurement Pvt Ltd

47

22

Kirlsokar Brothers Ltd

Inside Cover II

46

Vodafone Mobile Services Ltd

15

23

KSB Pumps

45

47

Chemtech World Expo 2017

24

Landsky Engineers Pvt Ltd

29

1

Atomic Vacuum Company (Exports)

2

130 • December 2016

30 & 31

89 / Back Cover

Chemical Engineering World