India’s commitment to phasing out hydrochlorofluorocarbons (HCFCs) in the polyurethane foam sector has resulted in a nationwide transformation for manufacturers across the country. Supported by the Multilateral Fund (MLF), the HCFC phase-out management plan (HPMP) has provided both financial resources and technical support to enterprises moving away from HCFC-141b, a chemical commonly used as a blowing agent in foam production and made India one of the first countries globally to completely ban HCFC-141b – achieving this milestone several years ahead of schedule. Among those undertaking this transition, small and medium-sized enterprises (SMEs) such as Bestopuf – a rigid polyurethane foam insulation manufacturer – offer valuable insights into the practical challenges and opportunities of sector-wide change.

Sector context and the path to transition

At the launch of stage II of the HPMP, the foam sector was identified as a major source of remaining HCFC consumption in India, accounting for around 30 per cent of usage, with SMEs responsible for more than half that share. The Government of India, with assistance from the MLF and supported by the United Nations Development Programme (UNDP), set an ambitious goal: to fully phase out HCFC-141b in foam manufacturing. This included not only a national ban on the import and use of HCFC-141b by 2020 but also comprehensive assistance for enterprises across the sector to transition to low-global-warming-potential (GWP) alternatives. Funds were allocated, technical institutions such as the Central Institute of Petrochemicals Engineering and Technology (CIPET) were engaged, and sector-wide outreach began.

For SMEs like Bestopuf, this meant adapting to new technology, manufacturing methods, and stringent regulatory requirements. Bestopuf trialed a range of alternatives – including cyclopentane, hydrofluoroolefins (HFOs), methyl formate, methylal and water-based technologies – each presenting technical challenges such as foam density and shrinkage. With support from CIPET and a local systems house, Bestopuf ultimately adopted methyl formate. Staff committed extensive time and effort to equipment changes and process adaptation.

Partnership in practice: technical and organizational support

Collaboration was central to the project’s success. CIPET, India’s lead technical institution for the sector, provided training workshops, on-site demonstrations, testing facilities, hands-on training and product validation for Bestopuf, as well as SMEs across the country, as they moved to low‑GWP alternatives.

“Having a lab to test product formulations and receive assistance was critical and gave us a lot of confidence as a small enterprise. The people from CIPET, systems houses, UNDP and the government were all very positive, motivated and helpful,” says Rahul Mehra, Managing Director at Bestopuf.

Local systems houses – private sector specialists in foam formulation – supported Bestopuf and SMEs sector-wide by developing and supplying HCFC-free formulations, demonstrating new technologies at over 30 SMEs using at least 10 metric tonnes of HCFC-141b, and ensuring a reliable supply chain for alternative technologies. UNDP and India’s Ozone Cell, the government office for Montreal Protocol implementation, further coordinated sector-wide support through workshops and practical assistance.

This support network enabled Bestopuf to promote tested, HCFC-free products, enhancing its credibility with climate-conscious customers and resulting in more export enquiries from countries in the region– particularly from Nepal, Bangladesh and Sri Lanka. Product validation through third‑party testing became a key selling point, boosting market uptake.

Broader impact: MLF-backed transformation and national achievement

India’s foam sector phase-out under stage II achieved major milestones. Of 204 eligible enterprises with a total consumption of 364.36 ODP tonnes (3,312.39 metric tonnes) of HCFC-141b, 160 received technical and financial support for conversion, while an additional 44 transitioned using their own resources. Nearly US $20 million was allocated for these efforts, and over 99 per cent of funds were disbursed. By 2020, consumption of HCFC-141b was fully phased out in line with the national ban, and by 2023 the phase out was sustained and overall HCFC consumption was reduced to 322.44 ODP tonnes – 80 per cent below baseline – even after recovery from the COVID-19 pandemic.

Key factors contributing to success included sector-wide training and validation provided through CIPET, effective collaboration with local systems houses, and a national framework for outreach and technical assistance, which ensured that even the smallest enterprises could transition effectively.

Conclusion: partnership and future resilience

Bestopuf’s experience shows how targeted technical assistance, well-defined policy frameworks and financial resources from the Multilateral Fund, supported by India’s national institutions, can guide SMEs through major sectoral transformation. The benefits – access to new markets, improved product quality and greater client trust – have positioned Bestopuf and India’s foam sector as leaders in sustainable manufacturing. The collaborative and inclusive framework developed for this project stands as a model for future innovation and effective environmental action.