India's Petrochemical Industry: From Foundations to the AI Frontier

A strategic overview for industry professionals and executives — tracing 120 years of growth, today's competitive landscape, and the AI revolution reshaping India's path to a $1 trillion chemicals sector.

Table of Contents

01

Part I: Establishment & Early Growth

Digboi 1901 → Liberalisation → PCPIR Policy

02

Part II: The Industry Today

Scale, Key Players, Market Size, China Challenge, GVC Opportunity

03

Part III: The AI Revolution

Industry 4.0, Predictive Maintenance, Digital Twins, GenAI, Partnerships

04

Part IV: Challenges, Sustainability & the Road Ahead

Green Chemistry, Structural Challenges, $1 Trillion Vision

05

References & Disclaimer

Sources, data caveats, and legal notices

Chapter 1 of 4

Part I: Establishment & Early Growth

From a single refinery in colonial Assam to a liberalised, globally competitive sector — the foundational decades that shaped India's petrochemical identity.

Digboi to Independence: The Pre-1947 Baseline

A Humble Starting Point

India's first refinery was established at Digboi, Assam in 1901 — and remained the country's only refinery until independence, with a capacity of just 0.50 MMTPA.

  • Petrochemical manufacturing was virtually non-existent; India relied almost entirely on imports for chemical products
  • Post-independence, the government recognised chemicals as a strategic sector requiring state-led development

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The 1950s–60s: State-Led Industrialisation

1954: Mumbai Refinery (HPCL)

First modern post-independence refinery, set up by Esso; followed by Burmah Shell and Caltex refineries in Mumbai and Visakhapatnam.

Simple Configurations

Early refineries adopted basic crude distillation, naphtha treatment, and catalytic reforming — no secondary processing, low energy recovery.

Government Undertakings

State-owned refineries established in the 1960s, processing indigenous crude from the North East and Gujarat fields.

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The 1970s–80s: Dhirubhai Ambani & the Polyester Revolution

Reliance Industries Emerges

Originally established as Mynylon Limited in Karnataka, Reliance pioneered private-sector participation in synthetic fibres and petrochemicals — becoming India's largest synthetic fibre manufacturer through a combination of entrepreneurial ambition and favourable policy.

  • Government import regulations for polyester raw materials were repeatedly modified in the 1980s, enabling Reliance's rapid ascent
  • Public sector IPCL (Indian Petrochemicals Corporation Limited) established as the government's flagship petrochemical entity

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The 1991 Liberalisation: Opening the Floodgates

100% FDI Permitted

Economic liberalisation dismantled the licence raj — multinational corporations could now establish plants, R&D centres, and joint ventures through the automatic route.

Private Sector Surge

Industry diversified rapidly into specialty chemicals, polymers, and downstream derivatives as competitive pressures replaced protectionism.

Global Transformation

India's chemical sector began its journey from a protected domestic industry to a globally competitive force — the foundation for today's $250 billion CPC industry.

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2002–2007: Consolidation & the Reliance–IPCL Merger

A Landmark Consolidation

In 2002, Reliance acquired a 26% stake in government-owned IPCL during the Vajpayee regime. The stake grew steadily to 47% before a full merger was completed in 2007.

The merger gave the combined entity commanding dominance across PE, PP, PET, and PVC — fundamentally reshaping India's petrochemical competitive landscape and creating a national champion of global scale.

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The PCPIR Policy: Building Integrated Clusters

₹2.43L Cr

Cumulative Investment

Attracted across 3 PCPIR regions: Gujarat, Odisha & Andhra Pradesh

3.7L

Persons Employed

Direct employment generated across commissioned PCPIR units

824

Units Commissioned

Industrial units operationalised across the three cluster zones

The PCPIR policy adopted a cluster-based approach with shared infrastructure and support services — enabling integrated, environmentally coordinated development of India's petrochemical regions.

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Chapter 2 of 4

Part II: The Industry Today

Mapping India's petrochemical footprint — its scale, key players, growth trajectory, and the competitive pressures that define the battleground ahead.

India's Petrochemical Footprint: Scale & Geography

6th

Largest Chemical Producer

Globally, and 3rd largest in Asia — contributing ~7% to India's GDP

12,000+

Production Units

Over 60% concentrated in Gujarat, Maharashtra, Tamil Nadu & Karnataka

248.9 MT

Refining Capacity (MMTPA)

4th largest globally after the US, China & Russia; 23 refineries nationwide

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Key Players: The Giants Shaping the Sector

Reliance Industries (RIL)

India's largest private petrochemical producer. Dominant in PE, PP, PET & PVC. Together with IOC, held ~70% of domestic production in 2020.

Indian Oil Corporation (IOC)

India's largest refiner — 80.75 MMTPA, 31% market share. Petrochemicals capacity: 4.5 MMTPA. Fortune Global 500 rank #127 (2025). India's only constant Fortune 500 presence.

GAIL, HPCL, BPCL, HMEL & Haldia

Major public and joint-venture players actively expanding capacity, downstream integration, and digital capabilities across the value chain.

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Market Size & Growth Trajectory

Enormous Headroom for Growth

India's CPC industry is valued at approximately US$250 billion, projected to reach US$300 billion by 2025 at a CAGR of 9.3%. McKinsey projects demand to nearly triple, reaching US$1 trillion by 2040.

India's per capita chemical consumption stands at just US$91 — versus US$1,200+ in the US and China. The consumption gap is the opportunity.

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Global Competitiveness: The China Challenge

$31 Billion Trade Deficit

India faces a $31 billion trade deficit in chemicals (2023). Around 34% of chemical imports come from China — creating a $29 billion bilateral deficit with a single competitor.

China's Surplus Pressure

China's massive capacity expansion has created global petrochemical oversupply, compressing margins worldwide. For some Chinese refiners, petchems represent 40–50% of output — more than double India's typical levels.

India's Investment Imperative

India needs approximately 10 new crackers over the next 15 years and $25+ billion in refinery-petrochemical integration investment to meaningfully reduce import dependency.

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The "China+1" Opportunity & Global Value Chains

India's GVC Moment

Global companies de-risking supply chains from China are actively seeking India as an alternative manufacturing hub. This is a generational opportunity — but it must be seized decisively.

  • India's current GVC share: 3.5%
  • NITI Aayog target by 2040: 12% GVC share
  • Trade deficit target: zero by 2030

NITI Aayog (July 2025) recommends 8 major port-based clusters, a dedicated GVC Chemical Fund, and targeted subsidies to accelerate India's integration into global value chains.

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Chapter 3 of 4

Part III: The AI Revolution in Indian Petrochemicals

Industry 4.0 is not a future promise — it is reshaping Indian petrochemical plants today. AI, IoT, and digital twins are rewriting the rules of operational excellence.

Industry 4.0 Arrives: The Digital Imperative

A Paradigm Shift Underway

AI, ML, and IoT are reshaping traditional manufacturing paradigms — setting new benchmarks for operational excellence, efficiency, predictive maintenance, safety, and sustainability across India's petrochemical plants.

India's chemical sector is rapidly embracing digitalisation. A convergence of AI, real-time analytics, and new business models is creating smarter, more adaptable manufacturing — with global competitiveness as the prize.

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Predictive Maintenance: From Reactive to Proactive

AI-powered real-time monitoring now detects equipment anomalies — such as faulty steam traps — that previously required time-consuming manual inspections, directly reducing fuel costs and unplanned downtime. Haldia Petrochemicals' "Sensor to Boardroom" IIoT strategy enables senior management, including the Chairman, to view live plant data and drill down to root causes — shifting from reactive to predictive and prescriptive operations.

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Digital Twins: Optimising Complex Processes

Virtual Replicas, Real Results

Digital twins create virtual replicas of physical plant processes, enabling simulation, optimisation, and scenario testing — without operational risk.

"Digital twins are crucial for optimising processes, and GenAI will play a significant role in the future."
— Sumit Duttagupta, CIO, Haldia Petrochemicals

Combined with AI-driven real-time optimisers, digital twins improve yield, reduce energy consumption, and enhance safety margins across cracker and polymer units.

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GenAI: Knowledge Transfer & Decision Support

Capturing Tacit Knowledge

As experienced engineers retire, GenAI captures and democratises decades of operational knowledge — preventing irreplaceable expertise from walking out the door.

Prescriptive Diagnostics

GenAI-powered tools provide operators with real-time recommendations to address disruptions proactively — shifting from reactive troubleshooting to prescriptive guidance.

AI-Assisted Operations

Applications include intelligent maintenance manuals, AI-assisted process documentation, and natural-language interfaces for plant control systems.

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HMEL × Emerson & AVEVA: AI Partnerships in Action

India Energy Week 2025 — A Strategic Signal

HPCL-Mittal Energy (HMEL) signed MoUs with automation giants Emerson and AVEVA to implement AI, advanced analytics, and real-time optimisers across its Guru Gobind Singh Refinery (11.3 MMTPA) in Bathinda.

  • Emerson: Provides a real-time industrial data platform bridging OT and IT — creating a unified data foundation for AI-driven decisions
  • AVEVA: Develops AI and digitalisation solutions for smart refining & petrochemical operations at HMEL

These partnerships signal the accelerating convergence of industrial automation and enterprise AI in India's refining sector.

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AI for Supply Chain & Demand Forecasting

1

Crude Intake

ML models analyse crude price movements and geopolitical risk to recommend optimal feedstock blends and procurement positions

2

Production Scheduling

AI-driven demand forecasting optimises inventory levels and production runs — critical in a volatile global market

3

Polymer Dispatch

Breaking down data silos across procurement, manufacturing, and logistics creates a seamless, AI-enabled value chain from well to customer

Digitisation eliminates functional silos, ensuring seamless data flow across the enterprise and creating a flexible framework that adapts to future market changes — as described by Haldia Petrochemicals' CIO.

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AI & Sustainability: Decarbonising the Value Chain

AI as a Decarbonisation Tool

AI-powered energy management systems continuously optimise furnace temperatures, steam usage, and utility consumption — reducing energy intensity and carbon emissions per tonne of output.

  • AI accelerates chemical recycling by optimising pyrolysis conditions and identifying feedstock quality in real time
  • India's green chemicals market is projected to grow at a CAGR of over 10%
  • IOC ranked #1 among Indian Oil & Gas companies in the S&P DJSI Sustainability Index 2024
  • HMEL is pursuing bio-refinery and renewable energy projects alongside AI-driven decarbonisation initiatives

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Workforce Transformation: Reskilling for the AI Era

Shifting Skill Demands

AI automates routine monitoring, data entry, and quality checks — driving demand toward data science, AI operations, and digital engineering roles across plant teams.

The Human Challenge

Convincing experienced plant engineers to trust AI outputs over established intuition is as critical as technology deployment itself. Change management must be led with compelling use cases, not mandates.

Centres of Excellence

The government's 18 Centres of Excellence in petrochemicals (recently expanded from 13) provide a platform for AI-integrated R&D and workforce upskilling at scale.

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Chapter 4 of 4

Part IV: Challenges, Sustainability & the Road Ahead

India's petrochemical sector faces structural headwinds — from a $31 billion trade deficit to Net Zero commitments. How it navigates these will define the next decade.

Environmental Pressures & Green Chemistry

Net Zero by 2070 — The Stakes Are High

India's CPC industry — one of its most energy-intensive sectors — must integrate circular economy principles from production to disposal to align with India's Net Zero by 2070 commitment.

  • Focus areas: bio-based polymers, biodegradable surfactants, and green solvents
  • Green chemicals market projected to grow at CAGR of over 10%
  • Adani Group's coal-to-PVC project at Mundra (₹34,500 crore) highlights the tension between growth ambition and climate commitment — a live flashpoint for the industry

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Structural Challenges: Feedstock, Margins & Monopoly

Feedstock Dependency

India is severely deficient in conventional hydrocarbons. It is one of the largest importers of MEG globally, with annual imports of 800 KT — constraining cost competitiveness at the root of the value chain.

Market Concentration

RIL + IOC's combined ~70% market share creates structural tension with small and medium manufacturers dependent on competitively priced raw materials — a recurring conflict in the sector.

Margin Compression

Global overcapacity — driven primarily by China — is compressing margins sharply. India's chemical sector TSR growth dipped from 20% (2014–2023) to just 9% (2020–2023).

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The $1 Trillion Vision: India's Strategic Roadmap to 2040

1

Today

US$250B CPC industry; 3.5% GVC share; $31B trade deficit

2

2030

Zero trade deficit in chemicals; 8 port-based clusters operational; PLI-driven downstream demand surge

3

2035

10 new crackers online; $25B+ refinery-petchem integration complete; AI embedded across the value chain

4

2040

US$1 Trillion chemicals sector; 12% global GVC share; AI as the critical differentiator

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References

Government & Policy

Ministry of Petroleum & Natural Gas, GoI — Refining: History and Evolution. mopng.gov.in
NITI Aayog / Business Standard (Jul 2025) — NITI Aayog backs port hubs and fund for chemicals to curb imports. business-standard.com

Industry Research

EY / Dept. of Chemicals & Petrochemicals (Oct 2024) — Catalyzing India's Chemicals and Petrochemicals. ey.com
McKinsey & Company (Jun 2024) — Securing Competitiveness in India's Chemical Industry. mckinsey.com
IBEF — India's Chemicals and Petrochemicals Industry: A Global Leader. ibef.org

Company & News Sources

Indian Oil Corporation (2025) — IOCL Investor Presentation FY2025. iocl.com
Reuters (Jul 2025) — India needs to boost its petchem output. reuters.com
Centre for Financial Accountability (2024) — The Petrochemicals Landscape in India. cenfa.org

AI & Digital Sources

Indian Chemical News (Jan 2025) — PetroChem Summit 2024. indianchemicalnews.com
ET Chemicals (May 2026) — India's chemical sector eyes transformation. chemicals.economictimes.indiatimes.com
TechCircle (Jul 2024) — GenAI crucial in knowledge transfer. techcircle.in
Express Computer (May 2024) — Digital twins are crucial. expresscomputer.in
The Hindu BusinessLine (Feb 2025) — HMEL inks MoUs with Emerson, AVEVA. thehindubusinessline.com
Emerson (Feb 2025) — HMEL, Emerson to Co-Develop Solutions. emerson.com

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Disclaimer

This presentation has been prepared for informational and educational purposes only. It is intended for industry professionals and executives seeking a broad overview of India's petrochemical sector and the potential impact of artificial intelligence on the industry.

Data Accuracy

Statistics, projections, and figures are sourced from publicly available reports, government publications, and industry analyses as of the dates indicated. Data may have changed since publication.

Forward-Looking Statements

Projections regarding market size, growth rates, GVC targets, and AI adoption timelines are based on third-party forecasts and are inherently uncertain. Actual outcomes may differ materially.

No Investment Advice

Nothing in this presentation constitutes financial, investment, legal, or regulatory advice. Readers should conduct their own due diligence before making any business or investment decisions.

No Affiliation

AI application descriptions reflect current industry trends and pilot deployments. This presentation is not affiliated with, endorsed by, or produced on behalf of any company, government body, or organisation mentioned herein.

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Sources

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Source Summary 1 of 14

Ministry of Petroleum & Natural Gas — Refining: History and Evolution

mopng.gov.in

  • India's refining history spans from the first refinery at Digboi (1901) to a global hub with 248.9 MMTPA capacity across 23 refineries (18 public, 2 JV, 3 private)
  • Post-independence, capacity grew from a single refinery to self-sufficiency; Mumbai's modern refinery (1954) marked the start of a new era
  • Technology evolved from simple crude distillation in the 1950s to advanced secondary processing — FCCs, hydrocrackers, hydrodesulphurisation — producing cleaner, higher-value fuels
  • Environmental compliance drove product quality upgrades: lead-free gasoline, low-sulphur diesel, and advanced configurations including CCR and INDMAX for LPG maximisation

Source Summary 2 of 14

Centre for Financial Accountability — The Petrochemicals Landscape in India (2024)

cenfa.org

  • India is solidifying its position as a global petrochemicals hub, with demand driven by packaging, construction, automotive, and textiles sectors
  • The sector is concentrated in four states — Gujarat, Maharashtra, Tamil Nadu, and Karnataka — accounting for over 60% of production units
  • RIL and IOC dominate the market, creating structural tensions with small and medium manufacturers who depend on competitively priced raw materials
  • Adani Group's coal-to-PVC project at Mundra (₹34,500 crore) raises significant environmental and sustainability concerns alongside its growth ambitions
  • Government support includes import relief on key raw materials (coal, MEG), but monopolistic dynamics remain a structural challenge for the sector

Source Summary 3 of 14

EY / Dept. of Chemicals & Petrochemicals — Catalyzing India's Chemicals and Petrochemicals (Oct 2024)

ey.com

  • India's CPC sector is valued at ~US$250 billion, projected to reach US$300 billion by 2025 (CAGR 9.3%) and US$383 billion by 2030
  • India is the 6th largest global chemical producer and 3rd in Asia, but per-capita consumption remains low at US$91 vs. US$1,200+ in the US and China — signalling vast headroom
  • FDI in CPC reached ~US$844 million in FY24; government initiatives including PCPIR zones and the PLI scheme are driving downstream demand in EVs, solar PV, semiconductors, and space tech
  • The sector is pivotal to India's Viksit Bharat 2047 vision, with a target of 6% global chemicals market share and a US$1 trillion industry by 2040
  • Growth will be driven by urbanisation, a young demographic, macroeconomic stability, and continued investment in technology, sustainability, and infrastructure

Source Summary 4 of 14

IBEF — India's Chemicals and Petrochemicals Industry: A Global Leader

ibef.org

  • India's chemical industry produces over 80,000 products, employs 2+ million people, and contributes ~7% to GDP; estimated at US$250 billion in 2024, projected to reach US$1 trillion by 2040
  • India ranks 3rd globally in agrochemicals (after the US and China) and holds 16–18% of global dyestuffs/dye intermediates production
  • Specialty chemicals are a key growth focus — expected to reach US$64 billion by 2025, representing ~20% of the global specialty market
  • India ranks 14th in global chemical exports and 8th in imports (excluding pharmaceuticals); trade position is improving with export-led growth strategies
  • Government policy supports expansion through fiscal incentives, SEZs, and PCPIR hubs, with potential investments up to US$276 billion by 2035

Source Summary 5 of 14

Indian Oil Corporation — IOCL Investor Presentation FY2025

iocl.com

  • IOCL is India's largest integrated energy company: 10 refineries, 80.75 MMTPA capacity, ~31% market share, and Fortune Global 500 rank #127 (2025)
  • Second-largest petrochemical player with 4.5 MMTPA capacity; extensive downstream footprint with 63,000+ marketing touchpoints and 20,000+ km pipeline network
  • Strategic pivot toward green fuels: advanced biofuels, green hydrogen, and sustainable aviation fuel (SAF) from used cooking oil (UCO); net-zero target by 2046
  • Ranked #1 among Indian Oil & Gas companies in the S&P Dow Jones Sustainability Indices (DJSI) 2024
  • Vision centred on "The Future of Indian Energy" — integrated value chain leadership with a robust R&D framework and continued expansion in refining, petrochemicals, and cleaner fuels

Source Summary 6 of 14

NITI Aayog / Business Standard — Chemical Fund, Subsidies & Port Clusters (Jul 2025)

business-standard.com

  • NITI Aayog proposes eight major port-based chemical clusters with upgraded infrastructure, storage, handling, and last-mile connectivity to reduce India's $31 billion chemical import deficit
  • A dedicated GVC Chemical Fund would finance infrastructure within the hubs; state governments to assist with land procurement and local dispute resolution
  • Targeted subsidies for operating expenditure, fast-tracked environmental clearances, and enhanced skilling and R&D support are recommended
  • India's chemical GVC share stands at 3.5%; the plan targets 12% GVC share and zero trade deficit by 2030, with a $1 trillion chemicals sector by 2040
  • Strategic timing is critical: global supply-chain shifts, geopolitical tensions, and sustainability pressures present a window for India to become a preferred chemicals manufacturing hub

Source Summary 7 of 14

Reuters — India Needs to Boost Petchem Output to Counter China's Dominance (Jul 2025)

reuters.com

  • Reliance Industries warns that without increased investment, China's petrochemical capacity expansion — which has created a global surplus and squeezed margins — could further capture the global market
  • India's current petrochemical intensity is low (~20% of Reliance's refining mix); Indian refiners may need to redirect 30–50% of gasoline and up to 50–70% of diesel yields toward petrochemicals
  • As peak demand for transport fuels approaches, refinery-to-petrochemicals integration becomes a critical strategic lever for sustaining margins and growth
  • India needs approximately 10 new crackers over the next 15 years and US$25+ billion in refinery-petrochemical integration investment to reduce import dependency
  • Analysts expect Indian refiners to significantly increase their petrochemical focus to remain competitive as fossil-fuel demand dynamics shift globally

Source Summary 8 of 14

Indian Chemical News — PetroChem Summit 2024: Smart Tech for Smarter Operations (Jan 2025)

indianchemicalnews.com

PetroChem Summit 2024 (New Delhi, Dec 2024) highlighted AI, ML, and IoT as transformative forces for operational efficiency, predictive maintenance, and safer, more sustainable petrochemical operations

HPCL-Mittal Energy demonstrated a predictive model that reduced SOx deviations and optimised lime dosing at a 165 MW CPP, saving approximately ₹20 crore — a concrete example of AI-driven emissions control

Reliance Industries shared how manufacturing data is being harnessed to improve decision-making, integrate supply chain with production, and identify operational bottlenecks

A key challenge identified: building conviction among experienced plant engineers to trust AI outputs over established intuition — tangible use cases are essential for adoption

Overall takeaway: data-driven technologies enable better efficiency, safety, and strategic optimisation in complex petrochemical ecosystems, driving resilience and future readiness

Source Summary 9 of 14

ET Chemicals — India's Chemical Sector Eyes Transformation as Digitalisation, AI and Sustainability Converge (May 2026)

chemicals.economictimes.indiatimes.com

India's chemical sector is rapidly digitising, with AI, real-time analytics, and sustainability converging to transform plant operations, maintenance, and business models

The shift from reactive to proactive maintenance via AI is a central trend; "agentic AI" or Plant GPT-style digital assistants are emerging for easier access to operational information

Digital twins enable scenario simulation, energy optimisation, and waste reduction — with demonstrated benefits from global firms like Nestlé and Suncor informing Indian adoption

End-to-end OT–IT platforms are enabling enterprise-scale transformation, breaking down data silos across procurement, manufacturing, and logistics

Digital platforms can integrate ESG metrics, helping firms track decarbonisation progress — critical given the chemical sector's significant share of India's energy use and greenhouse gas emissions

Source Summary 10 of 14

TechCircle — GenAI Crucial in Knowledge Transfer in Petrochemical Industry: HPL's CIO (Jul 2024)

techcircle.in

  • Haldia Petrochemicals (HPL) CIO Sumit Duttagupta describes a "sensor to boardroom" strategy: real-time plant data visible to senior leadership, enabling a shift from reactive to predictive and prescriptive decision-making
  • Since 2019, HPL has followed a five-year digital plan using an ISA 95-based framework to ensure seamless data flow from sensors to MES, enabling cause-and-effect insights
  • Two-layer digitisation: OT (DCS, plant operations) and IT (data analytics, SAP, MES) with secure IT-OT integration for advanced analytics, AI/ML, and digital twins
  • HPL is exploring TCG Digital's mcube analytics platform for targeted AI use cases in process and asset management, guided by PwC, McKinsey, and AWS as cloud provider
  • An asset assurance model is being developed to shift maintenance from reactive to proactive, improving asset performance and adherence to industry guidelines

Source Summary 11 of 14

Express Computer — Digital Twins Are Crucial for Optimising Processes: Sumit Duttagupta, CIO, Haldia Petrochemicals (May 2024)

expresscomputer.in

HPL CIO Sumit Duttagupta positions digital twins and GenAI as core to the company's strategy for process optimisation, improved reliability, and sustainable growth

AI/ML and IIoT power real-time process optimisation and predictive maintenance, reducing unplanned downtime and improving asset reliability

End-to-end digitisation implemented: SAP S/4HANA, Ariba, SuccessFactors, real-time SAC dashboards, Electronic Proof of Delivery, and Vehicle Tracking for enhanced customer experience

HPL became the first Indian petrochemical plant to achieve ISO 27001-2022 certification from BSI, reflecting a strong focus on information security and sensor-to-boardroom data governance

Future exploration includes blockchain integration with IIoT; technology investments are viewed as essential to staying competitive as HPL expands upstream and downstream projects

Source Summary 12 of 14

The Hindu BusinessLine — HMEL Inks MoUs with Emerson, AVEVA for Automation in Refinery and Petrochemicals (Feb 2025)

thehindubusinessline.com

HPCL-Mittal Energy (HMEL) signed two MoUs at India Energy Week 2025 with Emerson and AVEVA to broaden digital technology adoption across its Guru Gobind Singh Refinery (11.3 MMTPA) in Bathinda

The AVEVA collaboration focuses on developing AI and digitalisation solutions for smart refining and petrochemical operations

The Emerson collaboration aims to co-develop energy value chain optimisation, including Oils-to-Chemicals supply-chain improvements, via a real-time industrial data platform

Technologies to be implemented include AI, advanced analytics, and real-time optimisers to improve process efficiency, safety, and sustainability

The overarching goal: transform HMEL into a digital-first, higher-margin integrated refinery and petrochemical system through enhanced data-driven decision-making and OT-IT connectivity

Source Summary 13 of 14

Emerson — HMEL, Emerson to Co-Develop Innovative Solutions for Energy Value Chain Optimization (Feb 2025)

emerson.com

  • HMEL and Emerson signed an MoU to co-develop advanced automation and optimisation solutions for HMEL's integrated refining, petrochemicals, and sustainable fuels complex in Bathinda
  • The collaboration leverages Emerson's Boundless Automation approach, DeltaV control system, electronic marshalling, and AspenTech's multi-unit dynamic optimisation
  • A real-time industrial data platform will bridge the gap between operational technology (OT) and enterprise IT, enabling end-to-end demand forecasting and planning
  • AI/ML capabilities will be embedded to improve process control, margins, reliability, safety, and environmental performance across the value chain
  • The agreement was announced at India Energy Week 2025 and represents a flagship example of international technology partnership driving India's petrochemical digitalisation

Source Summary 14 of 14

McKinsey & Company — Securing Competitiveness in India's Chemical Industry (Jun 2024)

mckinsey.com

India's chemical industry outperformed global peers for a decade (2014–2023) with strong TSR growth of 20% annually, but momentum stalled between 2020–2023 as average TSR dipped to 9% due to falling margins

Three key headwinds: (1) weak global demand and export overcapacity creating a growing trade deficit; (2) projected European overcapacity and China shifting toward net petrochemical exports; (3) commodity-price volatility driven by feedstock costs and geopolitics

McKinsey projects chemicals and petrochemicals demand in India to nearly triple, reaching US$1 trillion by 2040 — but capturing this opportunity requires proactive strategic action

To maintain competitiveness, Indian chemical leaders must pursue functional excellence and margin expansion across the organisation, not just growth and capital efficiency

Companies that differentiate through strong execution and strategic positioning — including AI-driven operational improvements — can navigate global headwinds more effectively