India’s Bioeconomy Gets a Push with Tata Chemicals–TERI Centre of Excellence on Biochemicals

Accelerating India’s transition towards sustainable biochemical production

Bengaluru, September 23, 2025: The Tata Chemicals Limited (TCL)–TERI Centre of Excellence (CoE) on Biochemicals was inaugurated today by Mr Nitin Desai, Chairman, TERI; Mr R Mukundan, Managing Director & CEO, Tata Chemicals Limited; and Dr Vibha Dhawan, Director General, TERI.

Established jointly by Tata Chemicals Limited (TCL) and The Energy and Resources Institute (TERI), the Centre has been conceived to develop cost-effective, innovative technologies for platform and specialty biochemicals from renewable first- and second-generation feedstocks. The Centre is equipped with state-of-the-art bioreactor facilities of different scales—small, medium, and large—for upstream production of fermentation-based biochemicals. These are complemented by pilot-scale downstream recovery systems, enabling advanced research and development. Together, the facilities provide a platform to validate integrated bioprocess technologies at demonstration scale–a critical step towards commercialization.

The Centre’s initial research focus is on the low-cost, demonstration-scale production of 2,3-Butanediol, a versatile platform chemical with wide applications in plastics, polymers, pharmaceuticals, paints, food additives, rubber, and as a precursor for bio-jet fuel. Co-ordinated by Dr Sanjukta Subudhi, Associate Director, TERI, the Centre builds on TERI’s pioneering work in bio-based 2,3-Butanediol and will serve as a biomanufacturing hub for demonstrating scalable technologies for various specialty biochemicals, while also fostering domain expertise and training skilled professionals in this emerging field.

In his welcome address, Mr Nitin Desai, Chairman, TERI, said, “India’s chemical industry is at a critical juncture. To achieve the vision of a US$1 trillion market by 2040 while meeting our climate goals, we must shift from fossil-based processes to sustainable alternatives. The Tata Chemicals–TERI Centre of Excellence represents a significant step in that direction by marrying scientific innovation with industrial application.”

Speaking on the significance of the Centre for India’s bioeconomy, Mr R Mukundan, Managing Director & CEO, Tata Chemicals Limited, remarked, “India’s chemical industry is undergoing a transformative shift, from fossil-based production to sustainable biomanufacturing. The inauguration of the Centre of Excellence on Biochemicals is a step towards harnessing the power of biotechnology being explored for solutions of the future. With this beginning, we expect to see advancing innovations in the sector, as well as the development of a resilient, circular bioeconomy. The CoE will serve as a crucible for cutting-edge research, scalable technologies and skilled talent – paving the way for India to lead the global transition to green chemistry.”

Emphasising the role of industry–academia partnerships in driving green growth, Dr Vibha Dhawan, Director General, TERI, observed, “This Centre is more than a research facility, it is a biomanufacturing hub designed to bridge the gap between lab-scale innovation and commercial-scale production. By building expertise, infrastructure, and partnerships, we are laying the foundation for India’s leadership in sustainable biochemical production, aligned with the Government of India’s Bio-E³ policy.”

With India’s chemical industry currently valued at around US$220 billion and projected to reach nearly US$1 trillion by 2040, there is a growing imperative to transition towards sustainable production pathways. The sector, ranked sixth globally, supplies critical inputs for industries such as pharmaceuticals, agrochemicals, textiles, paints, and polymers but remains heavily dependent on fossil-based feedstocks that contribute to greenhouse gas (GHG) emissions.

Biotechnology offers a viable alternative through fermentation-based production of platforms and specialty chemicals from renewable resources. Fermentation-derived products including enzymes, metabolites, fatty acids, bio-pigments, and biopolymers; already have wide industrial applications across pharmaceuticals, textiles, nutraceuticals, personal care, and plastics. However, specialty biochemicals such as 2,3-Butanediol, propanediol, and succinic acid are not yet produced at commercial scale in India, primarily due to high costs of downstream recovery, which account for nearly 70% of total production costs.

Aligned with the Bio-E³ (Biotechnology for Economy, Environment and Employment) policy of the Department of Biotechnology, Ministry of Science and Technology, Government of India, the Centre will foster high-performance biomanufacturing of clean biomolecules and support green growth through innovative, collaborative research in the public-private partnership (PPP) mode.

The inauguration of the TCL–TERI Centre of Excellence on Biochemicals marks a milestone in India’s journey towards a bio-based economy. By bridging the gap between laboratory innovation and commercial-scale production, the Centre is set to play a pivotal role in reducing reliance on fossil-based feedstocks, advancing green technologies, and positioning India as a global leader in sustainable biomanufacturing.