ESG transparency is now a key differentiator in attracting talent and customers

Smitha Rao, Founder & Director, OjasQuest.

How would you describe the current state of the process industry in terms of growth, innovation, and regulatory challenges?

Despite global economic and geopolitical instability, process industries continue to demonstrate resilience by reconfiguring supply chains, prioritising regional sourcing, and adopting technological advancement.

What role is digital transformation – technologies like AI, IIoT, and automation – playing in improving process efficiency and safety?

Digital transformation through AI, Industrial IoT (IIoT), and automation is fundamentally reshaping the process industry by enhancing efficiency, safety, and decision-making. However, compared to other Industries like finance and retail, Process industries are now catching up fast in AI adoption, moving from pilot projects to full-scale implementation. Integrating AI with Legacy Systems, managing high complexity and safety-critical environments is posing many challenges that require a strong governance and migration plan in place. Especially for process safety related solutions, hybrid approach by blending AI-generated insights with expert validation enable organisations to progressively adopt AI-driven safety protocols with greater confidence and reliability.

How is the process industry leveraging data analytics or cloud technologies to enhance traceability, quality control, and decision-making?

Quality control can result in substantial operational cost and, in order to mitigate this, it requires a well-designed framework to implement cloud-based analytics for better quality control. Choosing the right cloud based analytics solution provider based on the existing process in place, and training and managing the change with the current workforce, is the key. Adoption of these technologies helps in predictive maintenance, real-time quality monitoring, better inventory and supply chain management.

How is the pressure to reduce carbon emissions and meet ESG goals influencing operations and investment decisions in this industry?

ESG factors are now central to investment decisions. Companies that adopt ESG practices tend to generate higher profits and attract more investor interest.

Leading process industry firms are embedding sustainability into their core operating models, including R&D, production, and marketing. CEOs and boards are increasingly hiring leaders with ESG expertise and integrating sustainability into corporate purpose and values and some companies have linked emissions reduction KPIs to employee compensation, ensuring accountability across departments.

ESG transparency is now a key differentiator in attracting talent and customers. In general, we are seeing a strategic shift toward sustainability across industries. Carbon reduction strategies are part of their core focus and also use digital tools like carbon emission pinch analysis to evaluate and implement decarbonisation strategies effectively.

How viable are alternatives like biodegradable packaging (in packaging/food), green hydrogen (in oil & gas), or continuous manufacturing (in pharma) from a commercial standpoint?

Biodegradable Packaging: Due to regulatory pressure and consumer awareness, demand for biodegradable packaging is rising. Biobased plastics are emerging as the new trend. As we recently heard, Nandini Milk has introduced India’s first biodegradable milk pouches. However, at present these eco-friendly packaging increase the cost and, hence are affordable only to big brands and suitable for premium and eco-conscious markets. To make it viable for all segments, innovation at scale, keeping cost in mind, is needed.

Green Hydrogen: Green hydrogen is seen as a game changer for decarbonising refining, upstream logistics, and high-temperature industrial processes. Companies like Reliance Industries, Shell, BP, TotalEnergies, and Saudi Aramco are actively investing in green hydrogen infrastructure. As per a recent report, over 1,500 hydrogen projects are underway globally, with $680 billion in investments planned by 2030. As announced by Reliance Industries, the company is investing over Rs 75,000 crore (USD 10 billion) in building the most comprehensive ecosystem for New Energy and New Materials in India, which also includes Green Hydrogen. Reliance is also planning for an electrolyser giga factory for the generation of green hydrogen. However, high costs of electrolyzers and renewable energy and infrastructure gaps in transport and storage are slowing the adoption across all the sectors. 

Continuous manufacturing (in pharma): Since the pandemic, Pharmaceutical Continuous Manufacturing (PCM) has gained significant traction and is poised to become a mainstream complement to traditional batch production for both innovative and generic drugs. PCM enhances output, efficiency, and cost-effectiveness, while reducing environmental impact and reliance on foreign suppliers. Its ability to accelerate scale-up during emergencies and maintain consistent quality makes it a strategic advantage – especially in competitive markets facing drug shortages, where manufacturers can swiftly expand market share with minimal disruption.

The Indian government, in collaboration with Dr Reddy’s and Laurus Labs, launched a Centre of Excellence in Flow Chemistry and Continuous Manufacturing to promote PCM adoption. Genome Valley, India’s largest life sciences cluster, is emerging as a hub for PCM innovation and collaboration. Sun Pharma and other leading firms are actively transitioning from batch to continuous manufacturing, citing benefits like faster production, safer operations, and higher efficiency. USP India is investing in a new PCM facility in Hyderabad. PCM is seen as a strategic tool to enhance supply chain resilience and reduce dependence on imports.

In summary, PCM adoption in India is commercially viable and expanding, supported by strong manufacturing capabilities, cost advantages, and proactive policy measures. With growing infrastructure and regulatory alignment, India is well-positioned to lead in PCM innovation globally.

What emerging trends or technologies are most likely to significantly shape the future of this industry over the next decade?

The next decade is set to be a whirlwind of transformation across industries, driven by a convergence of powerful emerging technologies.

Agentic AI & Cognitive Automation: AI systems that perceive, reason, and learn autonomously will optimise workflows and enable intelligent agents to handle complex tasks especially in the areas of operations, customer service, decision-making.

Digital Twins: Digital twins allow manufacturers to simulate operations, test scenarios, and optimise workflows before making physical changes. Companies like BMW and Renault use platforms like NVIDIA Omniverse to reduce planning cycles by 30% and improve energy efficiency.

Collaborative Robots: Cobots are redefining industrial automation by offering flexible, safe, and cost-effective solutions that complement human labour. With growing adoption across sectors and continuous technological innovation, they are set to become a cornerstone of smart manufacturing over the next decade.

Sustainability & Clean Energy – Low-Carbon Manufacturing: There's a strong shift towards energy-efficient systems, waste reduction, and carbon-neutral operations. Hydrogen and biofuels are emerging as viable alternatives to fossil fuels, especially in energy-intensive sectors.

(The views expressed in interviews are personal, not necessarily of the organisations represented)

Smitha Rao is Founder & Director, OjasQuest – a product engineering service company specialised in serving customers in Europe, USA and Asia in industrial automation, healthcare and Fintech domain. Born in a business family, Smitha has 20+ years of entrepreneurship experience in the IT Industry. She is an OPC foundation accredited expert and specialized in Industrial standards like NAMUR, OPC, FDT, FDI, HART, Modbus, Ethernet/IP, etc. She is also a member of CII National Committee on Robotics, Drones & Automation. She has several technical specifications, research papers and IEEE publications to her credit and has authored a book, 'Unlocking Power of OPC UA'. 

Armed with a Master's from BITS Pilani and BE from MIT, Manipal, Smitha Rao is the recipient of 'Women Entrepreneur of the Year' Award by STPI, Government of India. She was recently honored as a Trailblazing Entrepreneur – SME & MSME – in the Field of Technology by Industrial Automation magazine.