If digital initiatives do not deliver measurable business value, they should not exist: Sumit Duttagupta, Group CIO, Haldia Petrochemicals

For decades, petrochemical plants have been symbols of scale, precision and operational discipline. Yet in today’s hyper-digital world, even the most asset-heavy industries are being reshaped by data, automation and artificial intelligence. At Haldia Petrochemicals, one of India’s oldest and most complex petrochemical enterprises, this transformation has been both deliberate and deeply foundational.

According to Sumit Duttagupta, Group CIO of Haldia Petrochemicals, the role of technology leadership itself has fundamentally changed. “The CIO is no longer just managing IT systems,” he says. “The expectation today is to act as a catalyst for business growth, innovation and transformation.” Boards and senior leadership now view technology as a strategic lever, one that can redefine operating models, unlock efficiencies and even create new revenue pathways.

This shift, however, has not come without challenges. The velocity of technological change, from cloud and industrial IoT to AI, agentic systems and advanced analytics, has placed CIOs at the intersection of innovation and risk. Cybersecurity, governance and resilience have become just as critical as speed and experimentation. “You have to balance innovation with stability,” Duttagupta explains. “With every new technology comes a new set of risks.”

Building the digital foundation before AI

Haldia Petrochemicals began its formal digital transformation journey in 2019, well before AI became the dominant boardroom conversation it is today. The starting point was not flashy automation but a rigorous examination of processes, data and integration. While many core systems were already automated, there were significant opportunities to connect silos and enable real-time decision-making.

A key focus was the convergence of IT and OT layers, marrying plant-floor data with enterprise systems to create near real-time operational visibility. Manufacturing execution systems were augmented with advanced analytics and cause-and-effect models that allowed plant teams to quickly identify bottlenecks affecting production or efficiency. “It wasn’t just about seeing data,” Duttagupta notes. “It was about understanding why something was happening and what action needed to be taken.”

This philosophy extended to financial visibility as well. By enabling hourly EBITDA tracking across operations, from tank farms to bagging areas, leadership gained unprecedented insight into costs, margins and constraints. Loss tracking, flare monitoring, utility balancing and feedstock optimisation were all integrated into a unified analytics layer powered by M-Cube, an analytics engine developed by TCG Digital.

The result was a plant environment where data flowed seamlessly across functions, enabling faster and more informed decisions. More importantly, it laid the groundwork for something bigger.

“Everyone talks about AI today,” Duttagupta says. “But AI is useless without a strong data foundation. Unless your data is integrated, normalised and contextualised, AI will only give you information, not intelligence.”

From automation to agentic AI

With this digital backbone in place, Haldia Petrochemicals is now moving confidently into the era of agentic AI. One of the most promising use cases is in asset reliability and maintenance. The company is piloting intelligent agents on critical equipment such as pumps, combining data from process systems, ERP, maintenance logs, permits and retrofitted IoT sensors.

These agents analyse vibration, temperature, acoustic signals and process parameters to detect early warning signs of failure, helping to prevent unplanned downtime. Importantly, the objective is not to replace engineers but to augment them. “Agents remove the manual effort of collecting and correlating data,” Duttagupta explains. “They enable engineers to make reaffirmed, data-backed decisions much faster.”

The same thinking is being applied across logistics and finance. Blockchain has been deployed for electronic proof of delivery, creating tamper-proof records from dispatch to customer delivery. This has simplified dispute resolution, reduced paperwork and improved transparency. AI-driven working capital and cash-flow forecasting now provide senior leadership with near real-time visibility into liquidity, an essential capability in volatile market conditions.

Digital twins and safer decision-making

While digital twins are often perceived as futuristic, Haldia Petrochemicals has been using them in practical, operational ways for years. Online training simulators and real-time optimisers function as digital twins, allowing engineers to simulate changes offline before implementing them in live environments. This reduces operational risk while also serving as a powerful learning tool.

“In a process industry, you cannot afford to experiment blindly in real time,” Duttagupta says. “Digital twins allow you to test, learn and optimise safely.”

Governance, ROI and cybersecurity by design

Every digital initiative at Haldia Petrochemicals is governed by a clearly defined ROI framework. Projects must deliver measurable quantitative benefits alongside qualitative improvements. Post-implementation, utilisation and outcomes are tracked rigorously. “Digital for the sake of digital does not work,” Duttagupta emphasises. “Every intervention must create tangible business value.”

Cybersecurity is embedded by design, not added as an afterthought. The company is the first petrochemical player in India to achieve ISO 27001:2022 certification, a milestone that also aligns closely with the requirements of India’s Digital Personal Data Protection (DPDP) Act. From customer and dealer data to employee information, robust governance frameworks are already in place.

From an infrastructure perspective, Haldia Petrochemicals follows a hybrid cloud strategy. While ERP and customer-facing applications run on AWS, critical plant systems remain on-premises. “Some workloads simply cannot be compromised,” Duttagupta says. “For core plant operations, control and resilience are non-negotiable.”

Lessons for industry, and a call on talent

Reflecting on the journey, Duttagupta offers a simple but powerful lesson for enterprises embarking on digital transformation. He says, “Begin with the business vision, not the technology. Engage stakeholders early, design for usability and retain ownership of architectural and integration decisions. Technology must serve the business, not the other way around.”

He also voices concern about the growing talent gap, particularly in West Bengal. While there is no shortage of potential, academic curricula often lag behind industry realities. Stronger industry–academia collaboration, hands-on exposure to emerging technologies and deeper engagement in final-year programmes could help bridge this gap.

“There is no dearth of talent,” he says. “What is missing is opportunity, exposure and alignment with real-world needs.”

As Haldia Petrochemicals moves deeper into agentic AI and intelligent operations, its journey underscores a broader truth for Indian enterprises. Digital transformation is not a sprint towards the latest technology, but a long-term commitment to data, discipline and decision-making at scale.