Page 185 - CW E-Magazine (12-11-2024)

ICC Conference on R&D

BUSINESS STRATEGY

Industry exhorted to rewire R&D through frugal

innovations as margins shrink

n the recent years, the global chemi- “In the backdrop of resource con- educational institutions is crucial for
cal industry has underperformed straints, escalating environmental con- developing affordable and sustainable
Icompared to the broader industrial cerns and push for inclusive growth, solutions. This approach will not only
market, driven by global macroeco- it is imperative that we adopt innova- enhance effi ciency and profi tability but
nomic & geopolitical challenges, shift- tive strategies that drive progress while also aligns with global sustainability
ing trade fl ows, rising feedstock costs ensuring sustainability and accessi- goals, making the chemical sector more
and localised supply chains. bility,” said Ms. Ramya Bharathram, attractive to investors and stakeholders,”
Managing Director & CFO, Thirumalai she said.
According to Mr. Suyog Kotecha, Chemicals Ltd., adding that a focus
CEO & Executive Director, Aarti In- on frugal innovation can bring about According to Mr. Kotecha, India’s
dustries Ltd., the industry’s ability to transformation in chemical R&D. robust consumption potential contrasts
do breakthrough innovation has been with profi tability concerns. He said
compromised and this is evident from “Frugal innovation is about maxi- profi tability margins for Indian chemi-
the lack of any outstanding innovation mising impact while minimising costs cal fi rms are determined by factors
since the development of low density by utilising fewer fi nancial & material like access to feedstock, energy costs,
polyethylene (LDPE) many years ago. resources. This approach is especially engineering & labour costs and R&D-
relevant in the Indian context, where led innovation.
China’s increased self-suffi ciency traditional methods are impacted due to
and the Middle East’s capacity expan- high costs or complex processes,” she “There is signifi cant head-room to
sion driven by crude valorisation are said. deliver better on R&D-led innovation
disrupting traditional demand-supply and it could become a signifi cant driver
dynamics, he said while speaking at the Key strategies would include lever- of profi tability in mid- to long-term,”
‘Conference on chemical R&D trans- aging local materials, fostering open he said.
formation for frugal innovation’ organi- innovation, building lean R&D struc-
sed by the Indian Chemical Council tures, and integrating sustainability into Speaking about the challenges
(ICC) at Somaiya Vidyavihar Univer- core processes. “Collaboration among faced by the industry to scale up
sity, Mumbai recently. industry, research institutions, and R&D, he listed issues like need for

Chemical Weekly November 12, 2024 185

Contents Index to Advertisers Index to Products Advertised