GenAI crucial in knowledge transfer in petrochemical industry: HPL’s CIO

The Chatterjee Group (TCG)-owned Haldia Petrochemicals Ltd. (HPL) is a major player in the petrochemical industry in India. Located in Haldia, West Bengal, it operates a large integrated petrochemical complex that produces a wide range of products including polymers, chemicals, and elastomers. Besides, HPL has also been proactive in adopting digital technologies and enhancing operational efficiencies to maintain competitiveness in the global market.
 
TechCircle interviewed HPL’s chief information officer Sumit Duttagupta, speaking about company’s digital strategy, use of emerging technologies, and role of technology leader in commodity industry. Edited excerpts:

What has been the digitisation strategy for HPL?

The underlining motto for our digital transformation initiative is ‘sensor to boardroom’. Our goal is to ensure that senior management, including the Chairman, can view real-time data about plant operations. This visibility is crucial for identifying any issue promptly and allowing management to drill down to understand the root causes. Our vision is to shift from a reactive approach to a predictive and, ideally, a prescriptive environment. We aim to provide users with diagnostic tools and recommendations to address any disruptions or anomalies proactively.

Since we started this journey in 2019, we devised a five-year plan and built our own framework. We wanted to eliminate manual interfaces and ensure mature, transparent visibility across all stakeholders. Through digitisation, we are breaking down silos, ensuring seamless data flow across different functions. We are creating a flexible framework that can adapt to future changes and expectations, and one which we can innovate upon.

Under your leadership as the CIO, what are some of the initiatives that have been taken for digital adoption?

In a typical petrochemical industry, digitisation operates on two layers. The first is the Operational Technology (OT) layer, which encompasses the core Distributed Control System (DCS) that runs the plant. The second is the Information Technology (IT) layer, which encompasses data analysis, SAP applications, and manufacturing execution systems (MES) applications function. A secure and tightly integrated interface between IT and OT is essential to leverage data for future and predictive analytics, as well as to incorporate new technologies like artificial intelligence (AI), machine learning, and digital twins.

When we embarked on our digitisation journey in 2019, we devised a five-year plan and built our own framework. This framework was based on ISA 95 guidelines (international standard for integrating enterprise and control systems), for seamless automation from layer zero to the end. We collect and process data right from the sensors to the MES layer and give a real-time view with a cause-and-effect relationship to our manufacturing plant users.

What kind of investment has been made in digitisation and related initiatives?

Post 2018, our approach has significantly evolved, with the capital investment almost doubling up in this period. With a planned digital transformation journey, we made strategic investments and engaged consultants. Our key partners included PwC and McKinsey, which helped shape our commitment to this transformation. We have AWS as our sole cloud provider. Internally, we have assembled a competent team which is capable of handling new technologies. This combination of external expertise and internal capability has driven our successful digital transformation.

We are exploring our group company TCG Digital's “mcube” analytics platform, especially for our AI-related efforts. We plan to leverage this platform to develop targeted solutions. We have already identified several use cases for both process and asset management. Instead of deploying the platform across the entire process at once, we will focus on specific use cases, test them, and then implement them more broadly.

Digital twin is one of HPL’s focus areas. What is the specific work done on that end?

We are building an asset assurance model to ensure our assets operate according to industry guidelines and shift our maintenance strategy from reactive to proactive. For our static assets, we conducted extensive inspection management and risk assessments to keep them under thorough inspection and monitoring by our maintenance engineers, especially for corrosion tracking. For rotary assets, we deployed IoT-based predictive analytics to prevent unplanned downtimes.

Combining these efforts, we are now focusing on building a digital twin for both assets and processes. This will help us achieve seamless integration between asset reliability and yield optimisation. We are working closely with Lummus Technology, with whom we recently signed a digital transformation agreement. They will deploy an operating training simulator, providing a training platform for young engineers and an offline simulator to facilitate the creation of a digital twin. To be sure, Lummus Technology has been our long-time technology partner. In 2020, HPL acquired this US-based company for $2.72 billion.

What are the emerging technologies that are excited for?

In the petrochemical industry, knowledge transfer is crucial due to its aging workforce and vast reservoir of expertise. It's essential to impart this knowledge to young engineers joining the field. Generative AI plays a pivotal role in capturing and analysing this wealth of experience, enabling young professionals to access and apply digital knowledge effectively. This integration of generative technology is pivotal for perspective and analytics, empowering the next generation in this dynamic industry.

Blockchain is another promising technology. We are leveraging Ethereum platform, to establish end-to-end tracking of our fleet from factory gate to customer. This includes E-tracking and electronic proof of delivery, eliminating handwritten signatures. Now, all transactions are securely recorded on the Ethereum platform. This system ensures transparency and efficiency, providing a reliable record for resolving disputes, handling accidents, and processing insurance claims seamlessly.

What are the unique opportunities and challenges for a CIO in the commodity industry, as yourself?

The petrochemical or commodity industry operates in a highly dynamic environment, both cyclical in demand and rapid in technological advancements within plant operations. We work with near-real-time scenarios so establishing a 100% reliable and secure framework is essential. Secondly, on the business side, since we operate B2B, our platform needs a lot of automation and digitisation for a seamless customer experience.

Overall, the challenges lie in navigating the dynamic external environment, where seamlessly integrating external and internal data is crucial. This integration is essential for obtaining accurate forecasts and insights to effectively manage critical processes within the organisation.