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Chemicals industry must dramatically transform ops

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Chemicals industry must dramatically transform ops

The global chemical industry accounts for around 4 per cent of global greenhouse gas emissions. It must end its fossil dependency and become a planet-positive force by embracing a more circular, low emissions operating model, according to a major new report from Systemiq, the system change company, and the Centre for Global Commons at University of Tokyo.

Without urgent action, the industry faces reputational and regulatory risk and may lose its social license to operate, the report warns. The “Planet-Positive Chemicals” report provides an unprecedented blueprint for the future of the chemical industry, which is worth $4.7 trillion dollars in annual revenues and provides the chemicals that are essential to all sectors of the economy from packaging and consumer goods to construction and fertilisers.

It says the industry currently has multiple harmful impacts on our planet, including high carbon emissions and pollution, and its action on climate is currently lagging behind other sectors.

The report identifies the need for radical interventions on both supply and demand sides for the industry to operate within planetary boundaries. Its findings include:

* Chemical products are used across all downstream industries – other sectors of the economy cannot reach net zero without mitigating the climate impacts of the chemicals value chain

* Chemical production would need to double by 2050 to enable a sustainable global economy, with rapid growth in ammonia (around 440 per cent) mainly for use as a sustainable shipping fuel and methanol (330 per cent) to create plastic without using fossil sources

* Expected growth means net zero will be dependent on the maximum scaling of a few key abatement technologies like carbon capture and storage (CCS) – without which the chemicals industry becomes a major climate risk

* Up to 640 million tonne of CCS capacity will be needed every year by 2050 if the industry does not move away from fossil feedstocks

* Circular approaches can reduce total demand for chemicals by up to 31 per cent by 2050 – with industry reusing and recycling chemicals, or switching certain chemicals for lower-emissions alternatives

* Supply transition requires a shift away from fossil fuels and feedstocks and scaling of CCS to capture residual emission from production processes and end of life chemicals

* Replacing fossil feedstocks will make the industry the largest global consumer of green hydrogen (up to half of all demand by 2050), driving scale-up of this critical enabler of the energy transition

* This creates economic opportunities as the site of primary chemical production for developing countries that have abundant, affordable renewable energy sources to make low-cost green hydrogen

* The industry could become carbon negative by the early 2040s and a carbon sink by 2050, using CO2 from the air and biomass to make plastic and storing carbon underground at end-of-life

* The transition can create 29 million jobs in upstream production, circular chemicals and waste management – but the chemical industry needs to reposition itself in order to attract highly-skilled workers who often seek environmental and social purpose

* Retrofitting of legacy production and new greenfield chemical production infrastructure will require capex expenditure of over $3 trillion

The report aims to help the industry and policy makers unite around a common view of the path ahead and accelerate the transition to a sustainable model of operation. It suggests ten key actions that could transform the system including establishing a global charter of transition principles and a first-movers coalition to seed markets for net zero chemicals.

The report authors have made all their modelling and analysis publicly available. They will host a virtual discussion on 10 October 2022 to explore what’s needed from the industry, its customers, policymakers and the investment community to make the transition happen.

Chad Holliday, former CEO of the global chemical company DuPont and former Chairman of Shell, said: “We need realistic and immediate action from industry on the climate goals agreed at an international level. We want to see ambitious companies grabbing the opportunities represented by the global net zero transition, and as the former CEO of a chemicals company, I firmly believe a planet positive chemicals industry IS possible and this is a pivotal moment for the industry to redefine its future.”

Naoko Ishii, Executive Vice-President and Director for the Centre for Global Commons at University of Tokyo, said: “To avoid the collapse of the complex and interdependent Earth systems on which humanity, including our economic prosperity depends, we need to transform our social and economic systems and our lifestyles.”

“The chemical industry has an outsized role to play, with its products used across many sectors and ubiquitous in modern life. The opportunity is clear: to bring the system back within the planetary boundaries, including net zero GHG and become a contributor to the Global Commons. We hope this report will open the debate about how the chemical industry can transform itself to grasp that opportunity.”

Business leader and campaigner Paul Polman, who served as CEO of Unilever and helped design the SDGs, said: “Transformational leadership is critical to the delivery of our global sustainability goals. We urgently need courageous business leaders who profit by fixing the world’s problems rather than creating them – and this report is a clarion call to the chemical industry to do just that.”

“It sets out tangible pathways for the sector to become the enabler of a sustainable economy, a climate solution and a planet-positive system – but in order to access the growth and value associated with this future path, the industry must decouple itself from the fossil fuel dependence of the past. This marks the beginning of an urgent and business-critical conversation for the industry and its value chain.”

Guido Schmidt-Traub, Managing Partner of Systemiq, says: “The chemical industry underpins every modern economy, but it must change profoundly across its entire value chain to meet the objectives of the Paris Agreement. Importantly, these changes are eminently feasible using proven technologies outlined in this report.”

“The recommendations for policymakers, the industry, and the investment community are practical and actionable. Systemiq and our partners stand ready to support discussions about how the chemical industry can become a driver of a net-zero and nature-positive economy.”

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Threads surpasses 150M monthly active users, reveals mark Zuckerberg

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Chief Executive Officer Mark Zuckerberg has announced that Threads, Meta’s text-based conversation app, boasts over 150 million monthly active users, positioning it as a competitor to Elon Musk’s X (formerly known as Twitter). The monthly active user count for Threads surged from around 100 million users in October last year to 130 million in February.

At an earnings meeting for Meta, Zuckerberg said: “[Threads] continues to be on the trajectory that I hope to see.” He said in July that he expected Threads to become the next billion-user social network in Meta’s apps suite which also includes Facebook, Instagram, WhatsApp, and Messenger. Since Threads’ launch last year, Meta has been working on creating a range of new features like a fully functional web application, keyword search, trending topics, edit button, voice posts, and the ability to support multiple accounts.

Additionally, the company has been boosting Threads’ posts on its video and photo-sharing platform, Instagram, in order to expand its social network .In March this year, Meta took a significant stride towards fulfilling its commitment to enhance interoperability for Threads. It started allowing users in countries such as the United States, Canada, and Japan to share their posts to the ‘fediverse’. The fediverse comprises decentralised social networks, such as Mastodon, that can interact with one another using the ActivityPub protocol.

The feature will be available to all users with public profiles above the age of 18 in these countries. Meta is testing a Threads API, aiming to empower creators, developers, and brands to construct their own distinctive integrations, efficiently manage their Threads presence, and distribute content to their communities. Meta’s API empowers developers to authenticate, publish posts, and retrieve their own content. Additionally, the company has recently introduced reply management capabilities, enabling users to access responses to their posts, configure reply settings, and conceal or reveal specific replies.

In a blog posted earlier this month, the company said, “Insights are one of our top requested features for the API, so we are making it possible for people to fetch key metrics for their posts, including the number of likes or views. We are also working on webhooks, which will allow developers to receive real-time notifications when certain events occur on the platform, such as a reply to a given post.” Meta said it is currently working with companies such as Grabyo, Hootsuite, Social News Desk, Sprinklr, Sprout Social, and Techmeme, with plans to make the API available by the end of June this year.

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PAUL JOHN NIRVANA BAGS GOLD MEDAL IN PRESTIGIOUS LONDON SPIRITS COMPETITION

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John Distilleries Ltd.’s Paul John single malt whiskey ‘Nirvana’ has been awarded “Gold” medal in the prestigious London Spirits Competition 2024. JDL’s two other offerings – Roulette London Dry Gin and Paul John XO Brandy – have also won ‘Silver’ medals. JDL is the only Indian company to have been awarded in three different categories – whiskey, gin and brandy. “We are honored to have been awarded at the London Spirits Competition. It is indeed a privilege to be appreciated for the quality of our products,” said JDL Chairman and Managing Director Mr. Paul P John.

JDL is one of the most awarded Indian companies internationally as it has bagged various prestigious awards in the events like the International Wine and Spirit Competition, the World Whiskey Awards and the San Francisco World Spirits Competition. The London Spirits Competition, organized by the Beverage Trade Network, aims to recognize and promote spirits brands that resonate with consumers and offer value for both trade buyers and end consumers.

Judging criteria include quality, value for money, and packaging appeal.

Paul John Nirvana

From the Goan shores of India, Paul John Nirvana is an unpeated expression bottled at an ABV of 40% and is created from Indian 6-row barley and matured in charred American oak casks.

Every expression of Paul John Whisky including Nirvana do not have any added flavours or colours. ‘Nirvana is an expression for those willing and keen to experience single malts, especially for the first time. Its exotic richness is sure to captivate whisky connoisseurs and amateurs equally.’ – Paul P John, Chairman. Soft aromas of caramel, bourbon and fruitcake, flavours of succulent vanilla and sweet honeycomb enhance the sublime and honeyed finish.

Nirvana ensures a captivating experience beyond the worldly realm. Created for those who seek greater heights and who enjoy creating their own path Nirvana was aptly named because it is an expression for those who discover happiness in their purpose of being. Paul John XO 100% Indian Grape Brandy Following the success of Paul John Whisky, Paul P John, Chairman of John Distilleries, ventured into the premium brandy segment with the release of

Paul John XO, a 100% Indian Grape Brandy

Paul John XO is made from the famed Ugni Blanc and the rich Bangalore purple grape. The brandy is matured in specially selected, medium toasted new French limousine oak barrels.

With gentle honeyed aromas, orange zest and a touch of herbs that enhance the tender raisin and sweet oak flavours, the exotic Paul John XO is matured and distilled in Goa. Paul John XO is bottled at 46% ABV and was released in October 2019 across select countries including USA, Europe, UK, South Africa, Japan, Taiwan and India & many more.

Roulette Dry Gin

Roulette is a first choice for those who have a fresh take on life. People who love to experiment and are unafraid to try new things. Discover the perfect balance of versatility and flavour. With its juniper forward profile, it’s ideal for sipping or mixing. Whether you’re enjoying it neat or with a mixer, its refreshing and easy-going character shines through.

Roulette’s effervescent charm and juniper-rich taste elevates any occasion, be it before or after sunset. Roulette London Dry Gin uses all three types of distillation methods for extracting the botanical’s flavours. Our Gin production is further elevated by the exceptional Muller Pot Still, a masterpiece handcrafted and custom-made in Germany.

This 500 liter copper pot still is a small batch wonder and one of world’s finest. What sets it apart is its patented AROMAT technology that elevates our handcrafted liquid to extraordinary heights.

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Nepalese Tycoon Binod Chaudhary who sold ‘WaiWai’ plans to list India unit by 2026

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The firm, boasting a 28% share in the local instant noodles market and generating an annual revenue of 8 billion rupees ($96.2 million), is in preliminary talks regarding its listing plans. The aims is to achieve a 15% revenue growth this year.”

Nepalese billionaire Binod Chaudhary, who made his fortune selling instant noodles, is seeking to list his conglomerate Chaudhary Group’s India food unit by 2026. The Gurgaon-based firm, known for its Wai Wai brand of noodles that rivals market leader Maggi from Nestle Ltd. and ITC Ltd.’s Yippee, “would be ready to go for a sizable listing” in the next two years after rolling out new products and acquiring smaller firms in the noodle-related industry, Manvendra Shukla, global chief executive officer at CG Foods India Pvt., said in an interview. He didn’t share any other details. The listing plans for the firm, which has a 28 per cent share in the local instant noodles market and an annual revenue of Rs 8 billion ($96.2 million), are still in the early stages of discussion, he added. It aims to grow its revenue by 15 per cent this year.

CG Foods India’s initial public offering plans follow a rush among foodmakers, including packaged food products maker Gopal Snacks Ltd. and animal protein maker Mukka Proteins Ltd., that have gone public in the past year. The sector has seen the second-highest number of IPOs in India in the past 12 months, data compiled by Bloomberg News show. The mini-IPO boom is being fueled by investors attracted to India’s relative political stability and its status as the fastest-growing major economy amid the slowing pace of expansion in China.

The noodle maker, however, is not rushing to list and plans to bolster its market share and product portfolio first. The company is also looking to buy smaller companies that make seasonings, dips or ketchups, Shukla said.

‘Not Replicated’ Chaudhary Group launched the Wai Wai noodle four decades ago in Nepal’s capital Kathmandu, and has since grown to become India’s third-largest brand. Wai Wai is known for its preseasoned noodle — it comes with a layer of spice in addition to the seasoning pouches in the packet — which means it can also be munched on as a snack without cooking it. “We have something which is not replicated yet in the market,” Shukla said. CG Foods India currently has seven plants across the country, with Nepal and India contributing over 80 per cent to the group’s food sales. The firm expects to add production lines as volumes continue to grow in India where sales of snacks and soft drinks almost tripled over the past decade in India, exceeding 30 billion dollars. It launched two flavors last month, including a spicier variant called Dynamite, inspired by the Korean cuisine. More products are in the pipeline, including healthier noodle options, according to Shukla.

“It is a flavor battle,” he said.

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Summer Sizzles, Sales Rise, Indian Consumer Firms Gear Up

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Blue Star intensifies its product offerings with a plethora of new home air conditioner models, targeting a remarkable 25% revenue boost in the air conditioning segment, led by Managing Director B. Thiagarajan.

As temperatures soar across India, consumer goods companies are gearing up for what promises to be an exceptionally hot summer. With forecasts predicting an increase in heatwave days, reaching temperatures of at least 40 degrees Celsius in the plains, from April through June, businesses are seizing the opportunity to meet the rising demand for cooling solutions.

Blue Star, a leading appliances maker, has launched a myriad of new home air conditioner models to cater to the anticipated surge in demand. Managing Director B. Thiagarajan aims for a substantial 25% revenue growth from the air conditioning segment, a significant jump from last year’s 5%.

Similarly, renowned ice cream brand Baskin Robbins is rolling out 20 new products in India ahead of the scorching summer months.

Analysts foresee a substantial impact on consumer discretionary spending, particularly on products like air conditioners, fans, refrigerators, and cooling appliances. This surge in demand is expected to reflect robust growth numbers for the first quarter of the fiscal year for companies operating in this sector.

Traditionally, less than 10% of Indian households own air conditioners, but the combination of the hotter summer forecast and new product launches is expected to drive up this figure. Many first-time buyers are entering the market, driven by the desire for temperature-controlled comfort, particularly in light of the extreme temperatures experienced in various parts of the country.

Advertising expenditure is also on the rise, with companies like Blue Star and Baskin Robbins significantly increasing their budgets to capitalize on the heightened demand. Television and online advertising are key avenues for reaching consumers during this period.

Beyond manufacturers, delivery and service providers are also experiencing a surge in demand. Grocery delivery apps like Zepto, Swiggy, and Zomato’s Blinkit are witnessing increased orders for hydrating fruits, beverages, and ice creams as consumers seek relief from the heat.

With the summer months typically leading to increased beer consumption, breweries are gearing up for heightened production and distribution challenges. Carlsberg India’s Managing Director Nilesh Patel highlights the need for careful planning to meet the rising demand.

While the harsh weather may drive up vegetable prices and potentially curtail outdoor spending, analysts anticipate that consumers will continue to indulge in small luxuries like cold beverages and ice cream to find relief from the heat.

Overall, Indian consumer goods companies are bracing themselves for a lucrative summer season, with both manufacturers and service providers working tirelessly to meet the heightened demand for cooling products and refreshments.

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Aerospace parts maker JJG Aero raises $12 mn to hike capacity

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Bengaluru-based aerospace components manufacturer, JJG Aero, has secured USD 12 million (Rs100 crore) in inaugural funding from CX Partners which will be used primarily to increase its new facility’s manufacturing capacity, further vertical integration and other corporate initiatives.

Established in 2008, JJG Aero specializes in manufacturing build-to-print high-precision machined components, with in-house special process finishing capabilities. The funding comes at a time when the aerospace supply chain is facing all-time high demand from aircraft manufacturers, which legacy vendors in the Western world are struggling to meet. The global geopolitical issues, economic stability and Government support make India ideally placed to benefit from this deal.

The company has spent a decade in building best-in-class capabilities, processes, compliance standards, and customer relationships and obtaining requisite approvals and certifications, and we are now in the right place to grow rapidly. Anuj Jhunjhunwala, CEO, JJG Aero sees the company’s strengths and value proposition enabling them to emerge as a key player in the aerospace ecosystem. “India has emerged as an attractive destination for sourcing components and parts by global leaders and we are excited to be selected by so many marquee clients as a strategic growth vendor” says Jhunjhunwala. This investment will enable JJG Aero not only to continue on its growth path through capacity addition but also to upgrade the quality of earnings by focusing on higher value-added components.

Vivek Chhachhi, Managing Partner, CX Partners also notes that with its foray into the manufacture of aero-engine components, JJG Aero is well-positioned to capitalize on these opportunities and further solidify its presence in the market.

From simple 2-axis to complex 5-axis machining, JJG Aero offers a wide range of manufacturing services, complemented by over 30 NADCAP-approved special processes, including electroplating, anodizing, paint, and NDT. Moreover, the company provides assembly, testing, and other value-added services to its esteemed client base.

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Tesla eyes India market as Elon Musk makes bold AI prediction

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In a recent X Spaces session with Nicolai Tangen, CEO of Norges Bank Investment Management, Tesla CEO Elon Musk emphasized the importance of electric vehicles (EVs) in India, stating that it’s a natural progression for every country to embrace them. Musk highlighted India’s status as the most populous country globally and stressed that electric cars should be accessible to Indian consumers like they are in other parts of the world.

Musk’s comments coincide with Tesla’s intensified efforts to expand its presence in the Indian market. Sources reveal that the state governments of Maharashtra and Gujarat have extended enticing land offers to Tesla for the establishment of a cutting-edge EV manufacturing plant. The proposed investment for this venture ranges between USD 2 billion to USD 3 billion, demonstrating Tesla’s commitment to both domestic and international markets.

This move aligns with India’s new EV policy, which aims to attract investments from global EV manufacturers and promote the adoption of advanced EV technology among Indian consumers. The policy emphasizes the importance of domestic value addition (DVA) and sets specific localization targets for manufacturers establishing operations in India.

To incentivize investment, the government has introduced measures such as customs duty exemptions and import quotas for EVs based on the level of investment made by manufacturers. These initiatives aim to position India as a preferred destination for EV manufacturing and contribute to the country’s Make in India initiative.

In anticipation of these developments, Tesla plans to dispatch a team of experts to explore suitable locations across India for the proposed manufacturing facility. Musk’s previous statement about visiting India in 2024 further underscores the company’s eagerness to enter the Indian market and collaborate with local stakeholders.

Tesla’s expansion into India represents a significant step forward in the global EV landscape and underscores the company’s commitment to sustainable transportation solutions. With India poised to become a key market for electric vehicles, Tesla’s entry is expected to drive innovation and accelerate the adoption of EVs in the country.

As the electric vehicle market continues to evolve, Tesla’s entry into India holds the potential to reshape the automotive industry and contribute to India’s transition towards a greener and more sustainable future.

Tesla’s entry into the Indian market not only signifies a pivotal moment for the country’s automotive industry but also presents an opportunity for Tesla to capitalize on India’s growing demand for electric vehicles. With the Indian government’s focus on promoting clean energy initiatives and reducing carbon emissions, Tesla’s electric vehicles align perfectly with India’s sustainable development goals.

Moreover, Tesla’s presence in India is expected to stimulate job creation and economic growth, particularly in the manufacturing sector. The establishment of a state-of-the-art manufacturing plant will not only provide employment opportunities for local residents but also foster the development of ancillary industries and supply chains.

In addition to manufacturing, Tesla’s entry into India is poised to catalyze advancements in EV infrastructure and technology. As Tesla vehicles become more accessible to Indian consumers, there will be a corresponding need for charging infrastructure and support services. This presents opportunities for collaboration with local businesses and government agencies to build a robust EV ecosystem.

Furthermore, Tesla’s entry into India could spur competition and innovation in the domestic automotive market, encouraging other manufacturers to invest in electric vehicle technology. This competition could lead to advancements in battery technology, vehicle performance, and affordability, ultimately benefiting consumers.

Overall, Tesla’s decision to establish a manufacturing presence in India reflects the country’s growing importance in the global automotive industry and underscores India’s potential as a key market for electric vehicles. As Tesla’s footprint expands across the country, its impact on India’s economy, environment, and technological landscape is expected to be profound.

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