Haldia Petrochemicals Limited (HPL), a leading naphtha-based petrochemical complex in India, is facing a dynamic global landscape.
HPL has a long history of innovation and sustainability, exemplified by its early adoption of BS-IV and BS-VI motor spirit and its pioneering use of Cyclopentane as a blowing agent. To remain competitive, HPL focuses on product diversification, supply chain efficiency, and leveraging synergies within its Haldia manufacturing complex. By investing in cutting-edge technologies, such as blockchain for digitalisation of product delivery and IIOT sensor-based predictive analytics, HPL is poised to enhance operational reliability and customer engagement. HPL is also setting up India’s first Olefin conversion unit to covert low-value C4s /C5s into Propylene showcasing its dedication to innovation and environmental responsibility.
In the zone of sustainability, HPL is making strides with initiatives like water recycling, solar power installations, and a commitment to zero liquid discharge. As the Indian EV market expands, HPL aims to cater to the demand for high-performance polymers and lithium-ion batteries, aligning its growth plans with the burgeoning green economy.
We sat down with Navanit Narayan, CEO of Haldia Petrochemicals Limited, to discuss the company’s strategies for navigating current challenges and capitalizing on emerging opportunities. Navanit delves into HPL’s commitment to innovation and its vision for the future of the petrochemical industry in India. He also shares insights into how HPL has navigates the evolving petrochemical landscape, embracing technological advancements, sustainability and customer-centric strategies.
How has HPL adapted to the evolving global petrochemical landscape, considering market dynamics and sustainability?
HPL has been at forefront of adopting best technology and environmental practices since its inception. In changing global petrochemical landscape, HPL has managed successfully through developing unique products and applications and working closely with our customers. Today, HPL is the only producer of Cyclopentane, which is used to replace CFCs/HFCs as blowing agents in Polyurethane foam used for thermal insulation in refrigerators, insulated pipes & roofs, construction panels, etc. HPL was the one of the early producers of BS-IV and BS-VI Motor Spirit, which is usually unheard from a pure petrochemical player. Even in our recent projects, HPL is setting-up 1st Olefin Conversion Unit in India to upgrade low value C4s/C5s into Propylene. In short, HPL has been adapting to changing market scenarios through adoption of new technologies and developing unique products. Being a lean organization certainly helped in the process.
What strategies does HPL use to stay competitive globally, considering pricing, innovation, and supply chain resilience?
Our prime focus is on product diversification, improving supply chain efficiency and building a robust system benefiting all the stakeholders. At group level, Lummus is leading the product and technology innovation whereas HPL has been concentrating on value maximization to our existing products through undertaking new projects and exploiting the synergic benefits associated with our manufacturing complex at Haldia.
Apart from investments in new projects, we are working in a very focused manner in transforming supply chain, achieving cost leadership, improving operational reliability, diversity, sustainability and strengthening human resource practices.
How do HPL’s investments in new technologies and digitalisation drive innovation and long-term growth?
The company has always been committed to invest in innovation, product development and research and our Application Research Development Center (ARDC) at Kolkata is testimonial to our commitment towards innovation. Over the last 20 years, our scientists and engineers at ARDC have helped us achieve enviable place in our customers’ mindspace. In parallel, the company has been also promoting growth and innovation through TCG CREST, one of the subsidiaries created for facilitating research in fundamental science and cohesive technology.
HPL’s in-house application research activities in polymers are focussed at developing polypropylene products for growth sectors like automotives and appliances. HPL also has collaborations in research for value addition in existing and future chemical products from its C3 and C6 streams.
Our vision for Digital Transformation is to build an ecosystem of trusted business stakeholders both internal and external which is agile, innovative and shift business decisions from reactive to proactive, to predictive, and ideally to automated prescriptive. Our digital transformation journey is people centric with digitized and optimized processes as the baseline. The integrated and collaborative digital platform will enable people with the right cutting edge tools, tailored to their environment and with effective digital transformation objective encourages a digital culture.
New key technology interventions as follows:
- Block Chain Technology on Ethereum / MCUBE platform deployment through Electronic Proof of Delivery E-POD solution digitalization of product delivery.
- Advanced Video Analytics deployment through Jarvis CCTV Solution.
- IIOT sensor based Predictive Analytics Deployment for Asset Monitoring through Machine Doctor Solution.
Real Time Optimizers (RTOs) to improve yield and profitability - ISO Certification : We are an ISO 27001-2022 certified organization which signifies a strong and governance structure of information security towards our Digital Transformation.
All these initiatives are focused towards improving our customer engagement, improving plant reliability and productivity which are very much essential for long-term growth of the organization.
How is HPL integrating sustainability practices like environmental protection, resource efficiency, and responsible sourcing?
HPL is committed to championing sustainability through its strategy, business processes and decision-making. Delivering business responsibly is our commitment to stakeholders and accordingly all our decision-making processes are integrated with economic, environmental, social and governance considerations.
We are committed to leaving no stone unturned in our endeavour of harbouring a sustainable approach in our operations and develop a more ESG (Environment, Social and Governance) compliant business environment. A dedicated ESG team is working diligently to develop and implement sustainable actions towards environmental preservation. Through our dedicated efforts, we have been collecting and utilizing 550 million litres of rainwater per annum. We are implementing several water recycle and reuse projects and progressing gradually towards Zero Liquid Discharge. Our township today is serviced through Solar Power installed in 2021. These are some of the measures undertaken in recent times and we expect many more such initiatives going forward to have a green future for the society.
What are HPL’s long-term growth plans and vision for India’s petrochemical industry, considering sustainable solutions?
We are diligently working to expand our product basket further and enlarge our market share in petrochemicals and specialty chemical segments by investing in chemical downstreams. We are setting-up largest Phenol plant in the country and the 1st On-purpose Propylene manufacturing unit in India based on Olefin Conversion Unit.
HPL would continue to be one of the most respected players offering quality products and services to all our customers across the globe.
What are HPL’s key priorities for attracting and retaining talent in a competitive industry, particularly in areas like technology, engineering, and sustainability?
The demand for petrochemical products has been consistently increasing since the pandemic. Robust domestic demand has encouraged companies to consistently add capacities resulting to a surge in demand for skilled manpower across domains.
The changing market dynamics coupled with the expansion plan of Haldia Petrochemicals Limited (HPL) have made talent acquisition and retention a strategic focus for the organization.
Hiring the right talent – HPL has institutionalised the Graduate Engineering Trainee Programme which enables it to induct young talents every year. Engineering graduates are hired from reputed institutes of West Bengal and other parts of the country. The organization runs Prarambh, an elaborate induction programme to enable the trainees undergo structured learning. This is followed by a yearlong well-rounded training plan which gives them exposure in different functions.
The company has introduced PAL Buddy Programme to handhold the trainees during the acculturation period to facilitate their knowledge assimilation. Training continues even after completion of one year; the young talents are groomed over the next few years and developed to take higher roles.
HPL has developed a robust lateral hiring process to hire talent for senior roles. Besides providing fair and equitable compensation, the company provides comprehensive benefits package that includes health insurance for greater family members, retirement plans beyond industry standards, home and personal loan interest subsidy etc. To ensure competitiveness and align with petrochemical industry standards and benchmarks, the company conducts compensation benchmarking surveys periodically through global consulting partners and reviews compensation in line with company’s objectives. This approach helps HPL to attract, retain, and reward talented individuals, ensuring they feel valued and motivated in their roles.
Providing a learning environment
In our ever-evolving business landscape, it is imperative to strengthen some key functions like Engineering, Reliability, Technology, Sustainability etc. within the organization for building a resilient, adaptive, and high-performing organization that can thrive in a dynamic and competitive environment. HPL creates a learning environment through knowledge dissemination.
- University Saturday – Through this platform SMEs from various functions share knowledge with one another encouraging cross functional learning.
- Technical Upskilling – HPL organises various training programmes in association with different OEMs including our technology partner and group company Lummus Technology.
- Behavioural Training Programme – HPL organises programmes on different leadership skills across the year to nurture talents and help them flourish in their professional journey.
- LinkedIn Learning – Employees get the opportunity of self-paced learning through e-learning facilitated by LinkedIn Learning courses.Â
Recognizing talent
HPL believes that recognition is important for making employees feel valued. When employees are recognized for their hard work, it boosts their morale and confidence. Rewards, whether they are financial or non-financial help employees feel that their efforts are noticed and increases their engagement at work. This motivates them to keep performing well with greater ownership and responsibilities.
The HPL Excellence Awards has been introduced to recognize exemplary performance and reward employees them during the year.
Constant listening
An engaged employee feels demotivated when they are not heard. To ensure that employees can voice their opinion freely, the Whole Time Director and CEO Mr. Navanit Narayan conducts annual as well as quarterly townhall meetings. Employees are encouraged to ask questions on various topics and share their feedback and concerns. A team of executives work on the action points emanating out of these meetings.
Treating employees with care
HPL’s manufacturing facility is located in the industrial port city of Haldia which is 125 kilometres from Kolkata. HPL has created a township, Haldia Riverside Estate Limited (HREL) spread over 226 acres of land to accommodate its employees and their families. The township offers a variety of facilities, including a club, restaurant, indoor games, swimming pool, gym, sports area, departmental stores, pharmacy, and ATM. Residents enjoy the serenity of the township with their families, surrounded by nature comprising of a natural lake inside the campus.
The company organizes various cultural events, sports activities, and celebrate different festivals to foster togetherness, camaraderie, and a sense of community. Many programs are also arranged to care for the physical and mental well-being of the employees and their families.
The company has launched a comprehensive employee engagement programme HPL Care to support and nurture its employees. HPL Care aims to create an environment where employees feel supported in all facets of their lives, enhancing their overall satisfaction and productivity. This initiative reflects the company’s deep commitment to our workforce, ensuring they feel valued, respected, and motivated to achieve their full potential.
HPL is consistently working to meet these expectations, to ensure employees feel valued, supported, and motivated, leading to higher job satisfaction, better performance, and long-term retention.
What are your predictions for the petrochemical industry’s future globally and in India, including challenges and opportunities?
I see a bright future for Petrochemical industry in India and on global level too. The industry in India is at cusp of moving into a different growth horizon benefitting from our large population and favorable demographics, almost similar to what China witnessed since 1990s.
Major challenge today is squeeze in profitability. Globally, many of the players in Asia and Europe are bleeding due to loss of margin from large capacity overhang and sub-dued demand growth as I mentioned above. In 2023, India has been the brightest spot on global petrochemical scene and thus had been on radar of all major global producers to place their surplus products. Many of these players in US and Middle East have significant feedstock cost advantage which provides them additional strength to compete with domestic players in terms of product pricing. Cheaper imports from these regions adversely impacted the pricing sentiment and margins of Indian players, which are also reflected clearly in their financial reports.
India is not endowed with large hydrocarbon resources and thus have heavy dependence on crude and its derivatives to meet the feedstock requirements of Petrochemicals. Considering that the industry is highly capital intensive but supports large scale value creations and direct/indirect employment creation, it is pertinent to provide policy framework to incentivize growth of petrochemicals in India.
However, as expressed earlier, despite these challenges we are poised to see a phenomenal growth in coming decades in Petrochemicals. We are likely to witness large investments to make country self-reliant in various petrochemical products.
