Q The foam industry is highly sensitive to the cost and supply of petroleum-derived raw materials like Polyols and Isocyanates. How is Suryaa Foams currently mitigating the impact of global supply chain volatility and price fluctuations on your production costs and profitability?
We are currently mitigating the impact of global supply chain volatility and price fluctuations primarily through a combination of supply chain simplification, building long-term supplier relationships, and exploring alternative materials and production strategies to maintain profitability and control production costs. The company is focusing on reducing complexity within its supply chain and prioritizing efficient transport management, which is the primary challenge amid ongoing global disruptions affecting the availability and cost of petroleum-derived raw materials like polyols and isocyanates. Suryaa Foams is actively working to create resilient sourcing strategies by forming stable, long-term relationships with key suppliers. This helps to increase visibility into supplier operations and prompt issues related to disruptions or price hikes. The company is streamlining its supply chain to minimize bottlenecks, particularly in transportation, which has become a significant source of cost escalation due to volatile global logistics environments.
Q The global trend is moving towards sustainable and bio-based PU foams to reduce reliance on petrochemicals. Do you see a clear commercial demand for these greener products in India?
Yes. Industry trends show a growing interest in bio-based and recycled materials, which can help reduce vulnerability to oil price volatility and traditional supply disruptions. The expansion of bio-polyols and recycled foam inputs is expected to offer more sustainable and predictable cost management options. Companies are leveraging process innovations, such as increasing water loading in polyurethane formulations, to mitigate some cost impacts and improve product performance, demonstrating flexibility in production processes.
Q What risk mitigation techniques are companies in the foam and adhesive sector adopting to adapt to the rapidly changing global market?
Across the foam and adhesive sector, companies are also adopting risk mitigation techniques including inventory optimization, process simplification, and greater supply chain transparency to adapt to the rapidly changing global market. Building cost efficiencies and adopting advanced forecasting and cost control measures are part of broader competitive and strategic cost management initiatives to address both immediate and long-term risks. Suryaa Foams is proactively adapting its supply chain and material sourcing strategies to mitigate the risks from price fluctuations and supply chain volatility of key petroleum-derived raw materials.