 "Nurturing chemistry enables economic growth: R Mukundan")
Alchemy, a medieval chemical science and a speculative philosophy aiming at achieving a universal cure for disease and life solutions, gradually became the basis for the development of chemistry into the 17th century. However, perceivable impact of chemistry on humanity, through its smaller incremental innovation, started being felt only in the second half of the 19th century. Eventually, the world recognised that an invention alone is not enough; it is about the potent combination of invention and innovation that can together make life better. And, chemistry has been the force behind making everyday miracles through application science since then.
Breakthroughs in chemistry, backed by solid research, are required time and again to solve current and future societal challenges in health, environment, edibles, water and energy. In a multi-disciplinary world, chemistry became pervasive and for decades this science has been blending in with cutting-edge technology. It has been providing the groundwork and driving innovation to continually improve our quality of life.
Evidently, in 2013 chemical companies globally invested $56 billion in research and development to support new innovation. However, Indian chemical sector spends only about 1-2% of their total turnover on research and development (R&D) as compared to around 5-10% by the chemical industry in the developed countries. It therefore goes unsaid that while innovation is the cornerstone to revolutionise lives and facilitate breakthroughs in chemistry, there needs to be major investments in R&D. The industry today stands amid a restructuring and consolidation phase and increasing tie-ups of industry and academia is needed. These investments can strengthen R&D further and help to fill gaps in the manufacturing process, reduction production cost, development of new products relevant to the market needs, eg water management, low cost vehicles, biofuels, wellness products etc.
Globally, the chemical market size is expected to grow at 4-5 per cent per annum to reach $ 5.8 trillion by 2021 and to generate global employment of more than 20 million people. The sheer size of this industry is backed by the fact that chemicals provide raw materials to almost all the other industries. Not surprisingly, processes are designed around the end-consumer but what differentiates the chemical industry is the focus on customer-centricity over just customer satisfaction.
From healthy salt variants for different consumer with health ailments to the revolutionary low-cost water purifiers built with nanotechnology and enriched with point-of-use water purification and consumer-friendly design; the customer-centric approach to chemistry saw results in shape of a number of novelties that are brought together through innovation and affordability. The industry needs to encourage scientists to generate innovative ideas, which can lead to effective commercialisation for the benefit of masses.
In India, despite all challenges, the commercialisation process of smaller incremental innovation in chemistry has begun to get noticed. The industry’s functioning today is integrally linked with innovation and customer-centric advancements, such as affordability, efficiency and sustainability. The growth of green and specialty chemicals is riding on the back of this increased focus on consumer insights to fillip new ideas. Also, with nearly a 1.2 billion population, India requires a robust, modernised agriculture sector to ensure the food security for its population as the scope for further increasing cultivable land is limited. Hence, one of the emerging areas for R&D is green agrochemicals.
Furthermore, about 70% of chemicals manufactured are used to make products by other industries including other branches of the chemical industry itself. However, the industry has been marketing and communication shy, until recently. This change of course is helping throw light over the industry’s efforts and accomplishments and usher in a renewed interest in the science itself. For instance, initiatives such as the Tata Chemicals’ Best Chemistry Teacher Award help in spreading awareness on the achievements of chemistry teachers and bringing the fraternity to forefront.
In brief, the industry needs to adopt marketing approaches that are not just brand specific and move away from its antiquated approach to segmentation to a more dynamic type that is beneficial to the customer and industry alike. Chemical companies do not have to be at the interface directly. The players in this sector are judged by public opinion on everything, hence, it is important that the end-user knows the creator and the enabler. Underlining the chemical industry as the solution provider will lead to more awareness and see a shift from being a service provider to being the provider of intellectual property – one that can empower through affordability, efficiency, and etch sustainability into businesses.
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Ramakrishnan Mukundan is the Member, CII National Committee on Chemicals, and Managing Director of Tata Chemicals Limited
Breakthroughs in chemistry, backed by solid research, are required time and again to solve current and future societal challenges in health, environment, edibles, water and energy. In a multi-disciplinary world, chemistry became pervasive and for decades this science has been blending in with cutting-edge technology. It has been providing the groundwork and driving innovation to continually improve our quality of life.
Evidently, in 2013 chemical companies globally invested $56 billion in research and development to support new innovation. However, Indian chemical sector spends only about 1-2% of their total turnover on research and development (R&D) as compared to around 5-10% by the chemical industry in the developed countries. It therefore goes unsaid that while innovation is the cornerstone to revolutionise lives and facilitate breakthroughs in chemistry, there needs to be major investments in R&D. The industry today stands amid a restructuring and consolidation phase and increasing tie-ups of industry and academia is needed. These investments can strengthen R&D further and help to fill gaps in the manufacturing process, reduction production cost, development of new products relevant to the market needs, eg water management, low cost vehicles, biofuels, wellness products etc.
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Globally, the chemical market size is expected to grow at 4-5 per cent per annum to reach $ 5.8 trillion by 2021 and to generate global employment of more than 20 million people. The sheer size of this industry is backed by the fact that chemicals provide raw materials to almost all the other industries. Not surprisingly, processes are designed around the end-consumer but what differentiates the chemical industry is the focus on customer-centricity over just customer satisfaction.
From healthy salt variants for different consumer with health ailments to the revolutionary low-cost water purifiers built with nanotechnology and enriched with point-of-use water purification and consumer-friendly design; the customer-centric approach to chemistry saw results in shape of a number of novelties that are brought together through innovation and affordability. The industry needs to encourage scientists to generate innovative ideas, which can lead to effective commercialisation for the benefit of masses.
In India, despite all challenges, the commercialisation process of smaller incremental innovation in chemistry has begun to get noticed. The industry’s functioning today is integrally linked with innovation and customer-centric advancements, such as affordability, efficiency and sustainability. The growth of green and specialty chemicals is riding on the back of this increased focus on consumer insights to fillip new ideas. Also, with nearly a 1.2 billion population, India requires a robust, modernised agriculture sector to ensure the food security for its population as the scope for further increasing cultivable land is limited. Hence, one of the emerging areas for R&D is green agrochemicals.
Furthermore, about 70% of chemicals manufactured are used to make products by other industries including other branches of the chemical industry itself. However, the industry has been marketing and communication shy, until recently. This change of course is helping throw light over the industry’s efforts and accomplishments and usher in a renewed interest in the science itself. For instance, initiatives such as the Tata Chemicals’ Best Chemistry Teacher Award help in spreading awareness on the achievements of chemistry teachers and bringing the fraternity to forefront.
In brief, the industry needs to adopt marketing approaches that are not just brand specific and move away from its antiquated approach to segmentation to a more dynamic type that is beneficial to the customer and industry alike. Chemical companies do not have to be at the interface directly. The players in this sector are judged by public opinion on everything, hence, it is important that the end-user knows the creator and the enabler. Underlining the chemical industry as the solution provider will lead to more awareness and see a shift from being a service provider to being the provider of intellectual property – one that can empower through affordability, efficiency, and etch sustainability into businesses.
____________________________________________________________________________________________________________________
Ramakrishnan Mukundan is the Member, CII National Committee on Chemicals, and Managing Director of Tata Chemicals Limited