I interviewed Rohit Aggarwal in 2018 when he was President of the Textile Effects division of Huntsman (the division was later acquired by Archroma in February 2023) and he mentioned then that his product pipeline was focused on saving water and driving productivity for his customers. What is your main mission right now when it comes to delivering for your customers?
The sentiment has not changed too much since you spoke to Rohit Aggarwal in 2018. Our main mission remains focused on reducing water and energy usage. We've recently introduced systems that can cut water usage by up to 50%, demonstrating our commitment to enhancing productivity and efficiency for our customers while being environmentally responsible. This approach is not new; it reflects a long-standing commitment within the chemical industry to innovate for better environmental outcomes. The pressure for sustainable practices has only increased over time, influenced by global environmental movements and a widespread acknowledgment of the need for ecological responsibility, irrespective of the economic climate.
In a world where the term ‘sustainability’ is thrown around all too often, how does Archroma truly differentiate itself as a leader in sustainability?
Archroma stands out by ensuring that every R&D dollar spent leads to a more sustainable solution. Our focus is on creating products that not only meet high performance standards, such as better light fastness and durability, but also prioritize sustainability from the outset. This principle extends beyond R&D, influencing decisions in our production plants regarding the use of renewable energy sources like photovoltaic and thermal solar systems.
Our sustainability ethos is integrated into every capital expenditure, whether for R&D or plant upgrades, ensuring that our operations contribute positively to a more sustainable future.
The cornerstone of our sustainability efforts is our stringent R&D criteria, which mandate that any new product or innovation must be more sustainable than its predecessor. This policy underpins our entire product development process, from enhanced dye stuffs that minimize environmental impact to comprehensive strategies that use cleaner chemistries where possible. Additionally, our operational strategies, such as the integration of renewable energy sources in our plants, further underscore our commitment to sustainability. This holistic approach is crucial for making significant environmental advancements.
One needs to consider that all too often, bets on innovation, especially greener innovation will fail. Regarding the balance between product efficacy and sustainability, how does Archroma address this challenge in its R&D efforts?
In addressing the balance between efficacy and sustainability, we've seen notable successes, such as with Avitera, an award winning reactive dye range which we acquired from Huntsman Textile Effects. And we’ve taken it up a notch recently with the introduction of Super Systems+, our end-to-end processing solutions which deliver measurable environmental impact . In one of the Super Systems+ which was designed for cotton articles, we combined Avitera with our Blue Magic pretreatment, offering resource savings of up to 50%. This example highlights our ability to enhance performance without compromising sustainability. In areas like water repellency, while challenges remain, particularly with oil repellency, our ongoing research shows promising outcomes. These efforts reflect our commitment to overcoming performance hurdles without resorting to environmentally harmful practices.
Is there a need for an increase in innovation dollars in the chemicals industry, and what is your stance on regulation versus incentives?
Innovation, particularly towards sustainability, needs greater emphasis within the chemical industry. While regulation can play a role, I advocate for an incentive-based approach, similar to the American model, which encourages positive development rather than imposing penalties. Incentives can stimulate R&D and innovation more effectively, leading to unforeseen positive outcomes. This approach, exemplified by the impact of electric vehicles and companies like Tesla on the automotive industry, demonstrates the power of positive incentives over regulatory compulsion in driving significant industry-wide change.
In light of the incentives brought on by the IRA, could you share insights into one of your innovative products currently in development or in the market?
Our development of the Avicuero range for the leather industry exemplifies our innovative efforts, driven not directly by the IRA but by a broader desire to address environmental concerns within the industry. Avicuero is designed to revolutionize leather treatment by eliminating the need for harmful chemicals in the tanning process, showcasing our commitment to sustainability. This advancement is part of our effort to address the negative perceptions of the leather industry. This initiative, rooted in our Swiss heritage of innovation, underscores our dedication to environmental stewardship across our global operations.
What keeps you up at night regarding Archroma's future?
Frankly, my concerns for Archroma are more about enhancing its financial performance and ensuring its path to independence rather than existential worries. Our recent financial improvements and broad customer base across diverse industries provide a solid foundation for the company's stability and growth. My focus lies in improving our product offerings and maintaining the demand that is inherent in our industries, from textiles to personal care. The nature of our business, supported by a consistently high demand for our products, gives me confidence in Archroma's future, mitigating concerns that might otherwise keep me awake at night.
How is emerging technology like 3D fashion workflow and gen AI influencing Archroma's operations and innovation?
AI's role in identifying new molecules and enhancing product performance, particularly in areas like repellency, is already a reality. Moreover, AI's potential to revolutionize data management and efficiency across the board, from mining to corporate acquisitions, highlights its transformative impact. These innovations are part of a broader technological shift that will benefit not only Archroma but various industries, changing how we approach challenges and opportunities in research, data analysis, and even technical writing.
Looking forward, why will Archroma matter in the next three years?
The strategic acquisition of the Textile Effects division of Huntsman has positioned Archroma as an indispensable partner for our customers, offering a comprehensive product range that addresses a wide array of needs. This pivotal move ensures that Archroma remains a preferred supplier, integral to our customers' operations. Our focus is on enhancing customer experiences, ensuring they benefit from our one-stop solutions for their challenges. In three years, our goal is for Archroma to not just be a necessary choice for our clients but to be recognized for providing unparalleled value and innovation, reinforcing our standing in the industry and our commitment to sustainability and excellence.
