More than 50% of the Indian manufacturers are prioritising investments in sustainable practices, leveraging digital technologies, adopting renewable energy sources and enhance energy efficiency, among other things, finds a PwC study
A major chunk of Indian manufacturers is now looking forward to embrace sustainability with an aim to target 2-3x growth in their profits over the next three to five years. A recent research study conducted by international consulting firm Pricewaterhouse Coopers (PwC) indicates that 93% of Indian manufacturers are trying to adopt Industry 5.0 to drive sustainable practices and enhance their revenues.
The study covered six industries in the manufacturing sector and through the research covered the insights of 180 C-suite executives and senior leaders across the sector that included automotive, cement, chemicals, industrial goods, clothing and textile as well as metals.
While talking about the factors that define Industry 5.0, Sudipta Ghosh, Partner and Industrial Products Leader, PwC India says, “Industry 5.0 creates a symbiotic relationship between humans and advanced technologies like artificial intelligence (AI), robotics and internet of things (IoT).” Apart from that, the two other key features that would define Industry 5.0 are ‘sustainability’ and ‘resilience’, Ghosh adds.
According to the findings of the study, Indian manufacturers will be able to increase 6.42% of their revenues over the next two years by the adoption of Industry 5.0, while building an impetus towards ‘greater sustainability and resilience’.
One of the key findings of the research by PwC states that more than 50% of the Indian manufacturers are prioritising investments in sustainable practices this year. These investments are aimed at leveraging digital technologies in order to adopt renewable energy sources and enhance energy efficiency among other things. Along with that, 52% of top executives at leading manufacturing companies are also allocating investments towards building a culture of lifelong learning.
The research also shows that more than half of the executives are prioritising investments towards building mechanisms to bring forth the adoption of renewable energy sources, implement energy efficient practices reduce waste generation and manage water usage responsibly, this year.
A look at the automotive and chemicals sectors show that more than 80% of the executives envision that their industries are admired for their actions towards driving sustainability and employment. These executives also see their customers as well as the workforce becoming increasingly sensitive to the environmental and social friendliness of goods and products that they consume and produce.
However, the research report largely talks about the intent among the industries in terms of embracing sustainability. Thereby, further studies need to take a deeper dive in terms of the percentage of allocation that the companies are looking at in terms of renewable energy investments and sustainable initiatives.