Page 175 - CW E-Magazine (19-3-2024)

ICC Conference 2024

This scenario has been ideal for
the re-emergence of M&As. “The last
couple of years were very quiet on
the M&A front, due to high multiples,
uncertainty and lack of available capital.
But we’re seeing a trend reversal since
the last quarter 2023 and beginning of
this year. We see significant increase
in M&A opportunities and significant
cleaning up of legacy portfolios of
diversified chemical companies. The
consolidation in certain segments will
drive the ability to build leadership
positions, and therefore will be benefi- Mr. Ramakrishnan Mukundan
cial for the competitiveness of chemi- sharp improvement in competitiveness –
cal companies in these segments,” in terms of cost of conversion – when
Dr. Weihe remarked. compared to global clusters, especially
in Germany and China. Other issues
He highlighted the critical role for include feedstock availability, spends
chemical industry in the energy tran- to counter the infrastructure gap, talent
sition. “Humankind is facing massive crunch, delays in getting statutory
challenges in decarbonisation, and approvals, etc.
going to net zero without the chemical
industry is not going to work. The com- Speaking about the domestic mar-
mitments being made by downstream ket opportunities, Mr. Mukundan said
industries in terms of sustainability consumption is set to grow at around
transition and decarbonisation would 10 times in a very short span of time,
not be fulfilled without the chemical leading to higher demand for existing
industry providing the green chemicals, and new chemicals. He also empha-
whether it is through recycling, carbon sised the marked impact of govern-
capture & storage, biotechnology, etc.,” ment reforms in the past few years; the
he stressed. enhanced ‘ease of doing business’ even at
State and local levels; and the lowering
The role of artificial intelligence of cost structures, especially in logistics Mr. Hemant Sharma
in enabling massive improvements of and power. The State is seeking to diversify from its
productivity, efficiency and basically existing strong positions in minerals &
all functions of the chemical industry Pitching for chemical investments metals and the petrochemicals sector
was also covered by Dr. Weihe. “In Government representatives from is one of the sectors where the State
the chemical industry, beyond applica- Odisha and Andhra Pradesh made pre- offers the maximum incentives, he said.
tion technology, there’s been relatively sentations pitching for investments He underlined the key advantages
little blockbuster innovation in the last in the chemical value chain in their offered by State in terms of industrial-
50 years. We see that artificial intelli- respective States. grade land available near ports, water &
gence can drive innovation massively,” power at competitive rates, existence
he added. Mr. Hemant Sharma, Principal Sec- of the Paradeep PCPIR and Gopalpur
retary, Department of Industries, Govern- port, among others.
India as an investment destination ment of Odisha, pointed out that Odisha
Mr. Ramakrishnan Mukundan, is strategically located on the eastern In his pitch for Andhra Pradesh,
Managing Director & CEO, Tata Chemi- seaboard with three major functional Mr. N. Yuvraj, Secretary, Department of
cals Ltd., giving a perception of an ports and many potential sites to Industries & Commerce, Government of
investor looking at India, said the coun- develop additional ports – a vital Andhra Pradesh, showcased the pre-
try’s chemical manufacturing needs a requirement for the chemical industry. sence of three industrial corridors run-

Chemical Weekly March 19, 2024 175

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