The Differentiating Factor for the Chemicals Industry in India, says Frost & Sullivan at GIL 2010:India, The Global Community of Growth, Innovation and Leadership

Bangalore, India: The Chemical Industry in India has emerged as a formidable global player and has undeniably weathered the recent downturn; it is still a nascent industry in terms of both advancement and efficiency. The industry has stiff competition needs to maintain its reputation. In order to establish and maintain its status as a force majeure, the Indian Chemical industry needs to prove not only its profitability but also its responsibility to the environment and society. Sustainability is the need of the hour and in order to compete globally, the Indian Chemicals industry needs to embrace Corporate Social Responsibility (CSR) as a way of life. Companies need to focus on ethical business practices with green chemistry at its core. Companies adopting CSR practices not only gain popularity as suppliers but also receive increasing acclaim from industry watchdogs such as Greenpeace and Non-Governmental Organizations (NGOs), which have a direct influence on both share and stakeholder investments.

According to Mamta Wadhwa, Senior Director, Chemicals, Materials and Foods Practice, Frost & Sullivan, South Asia, Middle East & North Africa, “CSR is measured in three basic models: that of a shareholder, stakeholder and alliance. Various businesses operate on different levels of CSR based on interactions with their suppliers, customers or employees. However, the trend of integrated CSR practices is a burgeoning one and is practiced by few manufacturers. The industry aims to introduce a standard of CSR compliance across the value chain that will enable not only the organization but its employees, shareholders, and residents around its plant facilities to benefit from these measures.”

The Chemical sector is probably one of the most affected and thereby one with the most to benefit from CSR measures. Chemical parks tend to cluster in India with regions such as Gujarat being hubs for this sector. As a result, the surrounding environment comes under immense strain. The Chemical sector in India needs to invest in effluent treatment facilities, cleaner power generation, etc., and take responsibility for the areas they are situated in, both economically and socially. The sector needs to leverage its ability to help society through awareness campaigns about its products, compliance with regulations and encouraging the local talent pool. For instance, various multinationals currently sponsor various technology and university summits aimed at encouraging entrepreneurs in green technology and sustainable practices.

The Chemical industry, globally, has rallied to establish a standard of evaluation of a company’s sustainability and CSR performances. There are a few primary standards that evaluate CSR across today’s chemical sector. The primary standard developed by the American Chemical Council is that of Responsible Care®. Through Responsible Care®, the global chemical industry and its national associations commit to continuously improve the health, safety and environmental (HSE) performance of its products and processes, and so contribute to the sustainable development of local communities and of society as a whole. Responsible Care® is currently implemented in 47 nations with chemical manufacturing operations. Other standards include the Carbon leaders Europe Index by Merril Lynch and the American Chemical Society’s Green Chemistry Institute (GCI, to be launched in 2010) Greener Chemical Products and Processes Standard.

The Performance Materials sector is a major area of focus within the realms of the chemical arena. Areas such as polymers and plastics are primary arenas of concern in terms of emissions and safety within the industry. As a result, investment into safety and reducing emissions has a direct effect on end-user purchasing decisions. The materials sector needs to aim at developing products such as biodegradable plastics, ion exchange resins and so on.

The primary operators in the Chemical industry for CSR today are multinationals such as BASF, ITC, Lanxess, Henkel, Dow Chemical, Cognis and so on. Almost all multinationals run CSR programs at various levels. However, Indian companies such as Galaxy Surfactants Ltd, Navin Fluorine International Limited and Asian Paints are also paving the way for domestic involvement in this sector in India.

Frost & Sullivan, along with the members and partners and the Strategic Partnership Consortium – a comprehensive alliance of visionaries, innovators and leaders, are all engaged in sharing, inspiring and creating a continuous flow of new ideas and fresh perspectives, which leverage innovation as a resource to help shape a better future for the growth of attending companies.

Member companies and organizations include: IFS, Liveperson, BrighTalk, Lenos Software, Schneider Electric, SCIP (Society of Competitive Intelligence Professionals), Underwriters Laboratories Inc., Intel, Bulldog Solutions, Eloqua, and Global Spec, Inc. Through this cooperative effort, participants within the GIL community are taking monumental steps toward the development of a long-term growth strategy enabling them to effectively learn how to leverage innovation as a resource to help shape a better future for their companies and their careers.

For GIL 2010: India, HP was the Strategic Event Partner, 3M and DHL were the Event Partners. Wall Street Journal was the Official Newspaper Partner, Mint, the National Newspaper Partner and Outlook Business, the National Magazine Partner. Chemical Weekly and Chemical Industry Digest supported the think tank as media partner.

If you are interested to know more on the Chemicals Materials and Foods think tank or other insights shared at GIL 2010: India, then send an e-mail to Anish Charles, Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail address, company website and country.