Abu Dhabi-UAE: 29 September, 2011 – The biggest challenge for the global chemicals industry is to prepare for an unpredictable future, which will require shifts from traditional practices, according to Sanjay Choudhary, Chief Technology and Sustainability Officer at TATA Chemicals Limited.
In a recent interview with the World Refining Association, Choudhary discussed the chemical industry and future expectations of this sector, along with his company’s direction and sustainable goals.
A report by Zacks Investment Research states that chemicals are nearly a US$3 trillion global business. The industry, however, potentially faces significant challenges, Choudhary felt.
“The biggest challenge for the global chemicals industry is an unpredictable future with pressure on margins, surplus capacity, volatile and increasing cost of inputs and weak markets, which will require shifts from traditional practices. The emerging issues of sustainability will require the chemical industry to respond to the urgent needs related to climate change, clean energy and water, as well as nutrition,” Choudhary said.
According to recent statistics, the annual petrochemicals production of the GCC is expected to soar by around 46% to 155 million tonnes per annum by 2015, up from 105 million.
“The chemical industry has already witnessed a structural shift to the Middle East and other feedstock-advantaged areas,” said Choudhary on being asked about global fertilizer and chemical trends. “Asia will continue as the key driver of major growth in chemicals demand.”
TATA Chemicals has a vision of being globally competitive. The company has managed to secure profitable relationships with leading companies in the chemical industry.
Gabon Fertilizer Company (GFC) is a joint venture between TATA Chemicals, Olam International and the Government of the Republic of Gabon. GFC is currently setting up a 1.3 million tonnes a year urea plant and is expected to be the lowest cost producer of urea globally. In addition, TATA Chemicals recently said that its US subsidiary has teamed up with FMC Corporation and Church & Dwight to set up a manufacturing facility of sorbents used for air pollution control, with an investment of US$60 million.
“The objective of globalization at Tata is to be globally competitive and to expand its market,” said Choudhary. “The globalization strategy could be asset-based, capability-based or opportunity-based, and would include global employment and community engagement. Different Tata companies are in the process of developing their strategies with such factors in mind.”
On being asked about other developments within the TATA group that should be of interest to the wider petrochemical and fertilizer industry, Choudhary replied: “Some of the recent developments at Tata Chemicals include value enhancing upstream investments for key products, such as the acquisition of British Salt to secure brine supply for Tata Chemical Europe; product and business model innovations such as the launch of i-Shakti pulses which capitalizes on an innovative business model with the Grow More pulses campaign; the launch of customized fertilizers as a cost effective, crop and region specific fertilizer – ‘Paras Farmoola’, and the acquisition of Metahellix, India, by Rallis India (a fully owned subsidiary of Tata Chemicals) which marks entry in the technology led Seeds segment.”
Sanjay Choudhary will participate in the Middle East Chemical Week and will deliver a compelling presentation during the Middle East Fertilizer Symposium on Monday, October 17, 2011, focusing on TATA Chemicals’ approach of preparing for the environmental expectations of the future.
In his presentation Choudhary will share information on efforts at Tata Chemicals’ ammonia-urea fertilizer plant at Babrala, India, in improving energy efficiency, water and waste management and sustainability aspects over the years since commissioning in 1994.
Held at the Abu Dhabi National Exhibition Centre (ADNEC) in Abu Dhabi, UAE, the Middle East Chemical Week will take place from 16 – 19 October 2011.