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respons ible chemistry
susta inable growth
GRI G3.1 Compliance
Application Level A+
SUSTAINABILITY REPORT2011-13
Chemicals Business
Sustainability Report2011-13
Chemicals Business
4 5Sustainability Report 2011-13SRF Chemicals Business
About the report‘Responsible Chemistry, Sustainable Growth’ is SRF Limited – Chemical Business’ (SRF-CB) fourth biennial Sustainability Report
for the period 1st April 2011 to 31st March 2013. Our communication on progress is based on the GRI G3.1 Sustainability Reporting
Guidelines, and conforms to Application Level ‘A+’. This report is assured by KPMG, according to the ISAE 3000.
The report boundary encompasses SRF-CB’s Corporate Office, zonal offices (Delhi, Mumbai, Kolkata & Chennai) and manufacturing
unit at Bhiwadi. The Company currently has operations only in India. Information on economic, environmental and social performance
indicators and progress of goals is limited to the operations of our manufacturing unit at Bhiwadi. A management disclosure on our new
manufacturing unit at Dahej is included in the section on Sustainable Economic Growth. We intend to include our Dahej manufacturing
Accelerated global warming continues to create an
impetus for artificial cooling. Unidirectional efforts to meet
this demand, combined with steep growth in commodity
markets, unleashed an era of Chlorofluorocarbon
exploitation; until international collaboration resulted in the
launch and universal ratification of the Montreal Protocol on
substances that deplete the Ozone Layer.
Rapid industrialisation, increased disposal incomes and
sedentary lifestyles make us more disease-prone by the
day. Policy interventions and entrepreneurial endeavours
have revolutionised the healthcare sector. This increases the
expectations from the pharmaceutical industry in terms of
availability and affordability of medicines.
The changing climate has impacted agriculture, farmers and
related industries the most, prompting global innovators to
build key business offerings around these solutions. Transfer
of global knowledge to local farmers principally depends
on the efficiency with which custom synthesis of innovative
formulae is undertaken, and ability to scale up production
from lab to plant scale.
The theme of our fourth sustainability report ‘Responsible
Chemistry, Sustainable Growth’ is inspired by these
evolving needs of humans and the widening horizons
of chemistry in sustaining life. Businesses today are
trapped in a labyrinth of risks and challenges arising out
of economic instability, socio-political ambitions and
increased globalisation. It is up to companies like ours
to choose between the conventional bottom-line centric
approach or to take the lead to grow sustainably. We carry
the potential to break this limbo and find a better way for
sustaining people, planet and profit. We are inspired by the
determination to create solutions for the future.
We, SRF Limited – Chemicals Business, continue our
tradition of developing chemistry responsibly whilst growing
in a sustainable manner.
Responsible Chemistry... ...Sustainable Growth
unit in the report boundary from our fifth report onwards. The report boundary does not include joint
ventures, subsidiaries, new facilities under construction, the R&D unit at Chennai, supply chain entities
and other business units of SRF Limited.
There are no changes from the previous report in the scope, boundary or measurement methods. However,
details of restatements of information provided in previous report and the corresponding reasons are
available in the GRI content index or referenced in the applicable section of performance indicators.
All queries regarding the report may be directed to Himanshu Shukla (Associate Vice President – TS,
EHS & Projects) at shukla.himanshu@srf.com.
Energy and Climate Change
Responsible Resource Management
Employee Engagement and Development
Responsible Product Development
Community Engagement & Development
Sustainable Economic Growth
Environment Health and Safety
24 36 44 56
28 40 50
1 3 5 7
2 4 6
4 About the Report
6 From the Managing
Director
8 CEOs Speak
10 Summary of goals &
Performance
11 Highlights
11 Awards and Recognition
12 Business Chemistry
15 Total Quality Management
18 Corporate Governance
20 Stakeholder Engagement
23 Strategic Pillars for Sustainability
62 Assurance Statement
64 GRI Content Index
66 Goals and Targets
66 Glossary
Himanshu Shukla
6 7Sustainability Report 2011-13SRF Chemicals Business
It gives me immense pleasure to begin this report with some good news.
Last year, the prestigious Deming Prize was conferred on our Chemicals
Business for improving business performance through quality-based
management. This was the result of many years of hard work.
The world today is facing challenging times. With increasing urbanisation,
people’s preference is shifting towards luxurious homes and workplaces, and
reducing the amount of arable land. In view of projected global population
growth, Human Development indicators point towards hunger being more
widespread. Amidst these challenges, is it possible for a Chemical Company
to develop chemicals responsibly and help the world find answers to these
critical problems?
During the reporting period, we leveraged our expertise in handling Fluorine
to develop a wide product portfolio of agro-chemical and pharmaceutical
intermediates. These agro-chemical intermediates in turn participate in
touching millions of farmers’ lives and help them increase the yield per acre,
decreasing water usage and waste generation per crop.
We strived to create a net addition to the ecosystem. Our R 23 incineration
system continues to be operational, despite discontinued financial support
from the Clean Development Mechanism. Resource use efficiency initiatives
not only ensure sustainability of operations but also create trust within the
community, with whom we share our natural resources. The community
is well-fed and catered to through our NRM, Education, Healthcare and
Empowerment initiatives. Also, our workers are happy and satisfied with the
Company’s EHS practices. In short, we are a chemical company operating in
harmonious co-existence with society.
Our experience at Bhiwadi has been overwhelming in terms of the lives
our products touch and the positive impact we have created amongst our
stakeholders. The newly commissioned manufacturing unit at Dahej will be
run on similar principles once it comes out of the project phase and begins
operating stably.
The two business verticals – Fluoro Chemicals and Specialty Chemicals –
offer diverse services and have different business needs. To realise the growth
potential of the Chemicals Business, it is now required that Fluoro Chemicals
and Specialty Chemicals operate separately. Considering this requirement
of focused leadership attention, these verticals are now strategically led by
individual CEOs.
I express my gratitude to all the stakeholders for upholding their trust in
our value system and extending constant support through their continued
association with us. As always, we are committed to developing chemicals
more responsibly, aiding the world in sustainable growth. The current report is
a reflection of our performance towards this commitment.
Ashish Bharat Ram
Managing Director, SRF Limited
From the
Managing Director
8 9Sustainability Report 2011-13SRF Chemicals Business
How is SRF-CB committed to sustainability in terms of
management attention and investment?
Anurag Jain: Our sustainability journey began with asking simple and basic
questions about our business. For example, our CSR strategy at Bhiwadi
is based on one fundamental question that we asked ourselves – “What
intervention is required to help a person survive and live a fulfilling life?”
The answer that followed translated into a plethora of Natural Resource
Management projects focused at providing access to shared resources like
water, education and led to implementation of empowerment initiatives and
interventions to improve access to primary healthcare. Achieving triple-
bottomline growth in this way is now a baseline scenario for us, and will
continue to receive the highest management attention.
Prashant Yadav: The Company’s legacy, leadership and values lay a strong
foundation for sustainability. Our approach is based on the key material issues
of our business that are further consolidated into seven strategic pillars.
The entire process is more of a self-reflection and is focused at presenting
the facts as they are. During the reporting period, we have achieved good
progress against most of the indicators and have transparently reported on
these. Our commitment to sustainability continues to be close to our heart
and define the path we choose for growth.
What would be the sustainability challenges perceived now as
well as for the next 5 years?
Anurag Jain: For the Chemicals Business, community perception is our
biggest challenge. We are living in a world that finds it hard to believe that a
chemical company and the neighboring community can coexist in harmony.
Our next challenge is the changing technology development scenario.
The risk of technology discontinuity necessitates the Specialty Chemicals
Business to innovate constantly in order to thrive in the pharmaceutical
intermediates and agri-inputs market.
Prashant Yadav: The economy is growing rapidly, both in terms of people’s
aspirations and new business ideas. This is putting enormous pressure on the
environment and creating fierce competition for natural resources. Our major
challenge therefore is to continue to grow keeping in mind the precarious
situation of natural resources. Regulatory phase-out of HCFC-based
refrigerants and rising societal expectations are other significant aspects that
impact our business decisions.
Do you perceive sustainability issues as significant risks or
opportunities for the company’s continued sustenance?
Anurag Jain: Risk and opportunity are two sides of the same coin. In this era
when the paradigms within sustainability are constantly evolving, it is entirely
upon us to convert threats into opportunities. While the Specialty Chemicals
Business could consider changing consumer requirements as a threat of
technical discontinuity, I foresee this as a brilliant opportunity for disruptive
innovation. This is our chance to outdo our performance each year, drive
development of innovative technology, and define newer, leaner, cheaper
and more efficient products. Responsible product development is therefore
a strategic growth pillar for the Specialty Chemicals Business. To quote an
example, the product development team has a KPI in its annual appraisal
that incentivises reduction of waste generated in yields. This, when achieved,
shifts some products’ philosophy from being technically infeasible to viable.
There are external indications like the Deming Prize or CII Sustainability Award
that assess the extent to which sustainability is embedded in our company’s
risk mitigation processes. And we are poised to make strategic decisions and
imbibe behavioural traits that ensure we make chemicals responsibly.
Prashant Yadav: Having identified our biggest growth challenges, we
are proactively mainstreaming resource-use planning in all our expansion
plans. Each of our three-year long business planning cycles has translated
into targets around environmental and social parameters, measurable as a
function of business unit and individual performance. Our goals and targets
have always been aggressive, setting the bar of expectation exceptionally
high. As a result, today, we are one of the few companies in India that has
obtained an ISO 14064-1:2006 certification. We have maintained the water
positive status of our Bhiwadi plant since 2008-09.
The Fluoro Chemicals Business, as part of the phase-out plan, has
launched new grades and blends of refrigerants by leveraging in-house
technological innovations.
What kind of programmes do you expect to implement to comply with the new clause on CSR in the Companies Act?
Anurag Jain and Prashant Yadav: What does Social Responsibility mean to
us? It is just a matter of chance that we are talking about the community not
vice versa. Even before the new regulation came up, SRF has been investing
in various initiatives to address the basic needs of our communities, and we
will continue to do so even in the future, with or without regulation.
What kind of impact does the sustainability performance of your company have on your investors? Does disclosing your
sustainability performance help you inspire confidence among your investors?
Anurag Jain: The audience of this report originate from a diverse cross-
section of stakeholders, a key constituent of which are investors. Investors,
broadly, assess business capability to deliver results, through an evaluation
of the industry landscape, risk-reward interaction, compliance with emerging
statutory needs and readiness for the future. Considering our global operations,
disclosing sustainability performance is a business-as-usual scenario in
many developed country markets. In most cases, contrary to common
belief, publishing a Sustainability Report is one of the enablers for sustained
growth, and not a differentiator. It is this thinking that has embedded the
culture of sustainable growth in all our business decisions. We use our annual
sustainability performance as a tool for internal evaluation and leverage it
for achieving measurable growth. This assessment helps us achieve triple
bottom-line sustainability and tap the benefits of investor preference towards
environmentally-friendly and socially responsible manufacturing operations.
Prashant Yadav: Over the past decade, business and individual awareness
on climate change, Ozone depletion and sustainability has increased
sharply. This has generated greater stakeholder interest in our sustainability
performance. While shareholders and investors are becoming more conscious
of their investment decisions, the proportion of customers’ evaluating our
performance based on ESG indicators is expanding by the day. We are also
answerable to our internal stakeholders and the communities we impact.
The sustainability disclosures of our initial years were targeted towards
investors. But over a period of time, all our stakeholders have displayed a
forward-looking approach. Today, they understand the connection between
environmental impact, social sustainability, financial returns and economic
performance, and appreciate our efforts on these dimensions.
Anurag Jain
President & CEO
Specialty Chemicals Business (SCB)
Prashant Yadav
President & CEO
Fluoro Chemicals Business (FCB)
CEOs... ...speak
10 11Sustainability Report 2011-13SRF Chemicals Business
Summary of goals and performance
Goals (2011-12) Status Goals (2012-13) Status
Energy and climate change Energy and climate change
Reduction in absolute energy consumption by 5% Reduction in absolute energy consumption by 5%
Reduction in Scope 1 GHG emissions by 6% Reduction in Scope 1 GHG emissions by 6%
Reduction in Scope 3 GHG emissions by 24% Reduction in Scope 3 GHG emissions by 24%
Community development Community development
By 2015, reach 6500 families through NRM, increase their income by INR 10,000 annually
By 2015, reach 6500 families through NRM, increase their income by INR 10,000 annually
Responsible resource management Responsible resource management
Reduction in waste generation by 10% Reduction in waste generation by 10%
Reduction in specific water consumption by 2% Reduction in specific water consumption by 2%
Sustainable economic growth Sustainable economic growth
Increasing the Choloromethanes plant capacity to 50,000 TPA
Continue 2011-12 target, if not achieved
Increasing the HFC 134a plant capacity to 12,000 TPA Continue 2011-12 target, if not achieved
Increasing the fluoro specialties plant capacity to 3,000 TPA
Continue 2011-12 target, if not achieved
Employee development Employee development
Reduction in employee turnover to 10% per annumMaintain employee turnover at less than or equal to 10% per annum
Reduction in employee unplanned absence to 1% of available man-hours of work
Reduction in employee unplanned absence to 1% of available man-hours of work
Provide 40 man hours of training per employee per annum
Provide 40 man hours of training per employee per annum
Increase skill enhancement of junior management (skill index) by 10%
Increase skill enhancement of junior management (skill index) by 10%
Achieve employee satisfaction levels of 75% Achieve employee satisfaction levels of 75%
Health and safety Health and safety
Limit first aid injuries to 24 per annum Limit first aid injuries to 24 per annum
Ensure zero reportable injuries Ensure zero reportable injuries
Provide 12 man-hours of EHS training per employee per annum
Provide 12 man-hours of EHS training per employee per annum
Responsible product development Responsible product development
Launch new product packaging for R 134a cansContinue to make R&D investments for products & packaging material
Awards and Recognition
Highlights
2011-12
• Commendation Certificate for Significant
Achievement, CII-ITC Sustainability Award 2011
• Shikshak Shri Samman awarded by District
Education Department
• State Award for Export Excellence, Government
of Rajasthan
• Supplier Sustainability Award, Bayer Crop
Sciences
2012-13
• The Deming Application Prize, Union of Japanese Scientists and
Engineers, 2012
• Global Sourcing Award of Recognition, Syngenta AG
• Rajasthan State Bhama Shah Award by
Department of Education,
Government of Rajasthan
• CII-ITC Sustainability Prize, 2013
• Responsible Care re-certification, 2013
CII-ITCSustainabilityPrize,2013TheDemingPrize,2012
• Prestigious Deming Prize conferred for improving business
performance through quality-based management
• Fluoro Chemicals (FC) and Specialty Chemicals (SC)
operations separated to be able to offer diverse services and
will be led by individual CEOs
• A new Chemical complex at Dahej (Gujarat) successfully
commissioned in 2012-13
• 16% reduction in Scope 1 GHG emissions in 2012-13
• 150% increase in crop yield with improved
agriculture practices and 300% increase in
family income after Land Leveling
• Drastic reduction in school dropout
rate from 53% to just 6% now, especially
for girls
• 30 units of toilets and bathrooms
constructed, improving the health & hygiene
condition in the project villages
Managementsystemsandcertifications
• Integrated Management System (ISO 9001, ISO 14001 & OHSAS 18001), 2012
• SA 8000, 2012
Complete Approx 75% Complete Approx 50% Complete Continuing
Global Sourcing Award of Recognition, Syngenta AG, 2012
12 13Sustainability Report 2011-13SRF Chemicals Business
ASPIRATION 2020“We aspire to achieve global leadership by continuously enhancing organisational and people capability, developing innovative products and processes that satisfy customers and attaining challenging benchmarks in productivity.”
VALUESWe are driven by our strong value system (RINEW) which guides us to demonstrate R espect I ntegrity N on-discrimination E xcellence W ell-being
SRF is a leading Indian multi-product industrial group engaged in Technical Textiles, Chemicals, Packaging Films and
Engineering Plastics. With a large portfolio of Fluoro Chemicals and Specialty Chemicals, SRF’s Chemicals Business caters
to diverse applications across industries. Visionary leadership, strong focus on quality, robust management systems and
committed employees drive the growth of our business verticals – Fluoro Chemicals and Specialty Chemicals. We have
grown to be a preferred supplier of refrigerant gases and chloromethanes to major Pharma and Agrochemical manufacturers
of the world. Our strong knowledge of Fluorination and other halogen chemistry along with concerted focus on R&D has led
to commercialisation of Ozone-friendly refrigerants – HFC 134a on the one hand and the development of complex organo-
fluorine compounds on the other.
Our diverse product range, competitive prices and customer-centric approach make SRF a stable and credible player in the
international market. The Business enjoys a market share of approximately 40% for refrigerants in India, whereas exports of
the Business are spread across 60 countries worldwide. Refrigerant exports account for over 60% of the volumes produced.
Our Specialty Chemicals Business is the preferred supplier to global chemistry innovators. Four out of thirteen Specialty
Chemicals occupy the first position in the market, in terms of quality and supply. Our customers are spread across Asia,
Europe and North America.
Business Chemistry
New Chemical Complex at DahejIn the year 2012-13, we successfully commissioned the new world-class chemical complex at Dahej in Gujarat. The new
plants in the complex have been designed and executed with in-house technologies, leveraging our exceptional R&D
and project execution capabilities. The Business is currently focusing on enhancing and enriching the basket of specialty
chemicals and enabling backward integration of raw materials. During 2013-14, the Business is expected to derive value
from the new chlorinated solvents being manufactured at this facility. In addition, the investment in a new HFC 134a/125
plant at Dahej will come up by the end of 2013-14. The upcoming plant will be backward integrated
with a global-size HF plant to meet the production need.
Fluoro Chemicals
HCFC 22
HFC 134a
Blends
Methylene Chloride
Chloroform
Anhydrous Hydrofluoric Acid
RefrigerantsChlorinated
solventsOthers
2,3,5,6 Penta fluoro Benzile Alcohol
EDFA - Ethyl Difluoroacetate
ETFAA - Ethyl Trifluoroacetoacetate
Aminocrotonate
Ethyl Difluoro Acetoacetate
PFBA - Pentafluorobenzoic acid
PBFB - P - Bromo Fluoro Benzene
Methyl Chlorodifluoro Acetate
Chloro Difluoro Acetic Anhydride
Specialty Chemicals
Agro Pharma Agro & Pharma
TFA - Trifluroacetic Acid
ETFA - Ethyl Trifluoroacetate
KF - Potassium Fluoride
Trifluoro Acetic Anhydride
Our products
New Chemical Complex at Dahej
14 15Sustainability Report 2011-13SRF Chemicals Business
Purpose of TQM
TQM was chosen as the Management Way for
SRF in 1991 and adopted by the Chemicals
Business in 1995. Having adopted our vision
of ‘being a credible global player’, it became
imperative that we deal with the following
challenges:
• Having strong customer orientation to
understand customer needs on Quality,
Cost and Delivery.
Total Quality ManagementOn our journey to global leadership in Chemicals Business
• Hazardous nature of plant operations required a high orientation
towards safety systems with involvement of all employees.
• Becoming a global player in view of intense international competition
required the Business to upgrade its quality levels whilst being cost
competitive. We believe that TQM is the only way which will allow us
to overcome the above challenges, and will also speed up our quest
to become a credible global player in our chosen field.
“For years now, we have
been continuously spreading
knowledge on TQM. People’s
involvement during Deming
preparation was overwhelming.
The award of the Deming Prize
is a moment of celebration
since our efforts have been
recognised at a global level. We
feel motivated, more than ever,
to keep the enthusiasm going…”
- Neeraj Chandna AVP, TQM
The Deming Prize, established in honor of W. Edwards Deming,
recognises individual and organisational contribution in the
advancement of quality. Awarded by the Union of Japanese Scientists
and Engineers (JUSE), the Deming Prize is considered the Nobel
Prize equivalent in the world of quality. In November 2012, SRF
Chemicals Business received its first Deming Prize, which is the second award for
SRF Limited. Earlier, in 2004, the Tyre Cord business of SRF had won the Deming
Prize. We take immense pride in the fact that the SRF Group is a recipient of two
Deming Prizes, the latest being for the Chemicals Business.
The special comments of the jury stated that the coveted Deming Prize was
awarded to the Chemicals Business in recognition of its effective implementation
of TQM in shop floor operations and Kaizen activities. In addition, the TIE Group
activities undertaken by cross-functional teams were stated as a salient feature.
This is a significant achievement considering that hazardous materials are being
handled in large quantities by the shop floor personnel. The second salient
feature is the proactive identification of opportunities for de-bottlenecking to
improve product throughput. Additionally, the safety related initiatives, precise
monitoring of key performance indicators like reportable injuries and severity
rate, differentiates the Chemical Business from other applicants.
Our financial front
Parameter 2011-12 2012-13
Revenue (INR Million) 10,921.53 8,109.28
Profitaftertax(INRMillion) 5,867.85 3,398.29
Number of employees (Permanent &
contractual)
1,169 1,088
Employeewagesandbenefits(INRMillion) 297.24 349.90
Payments to providers of capital (INR
Million)
808.70 566.80
Payments to government (INR Million) 491.05 547.74
Community investments (INR Million) 20.20 19.20
Number of shareholders (SRF Limited) 62,146 63,351
Fluoro Chemicals Specialty Chemicals
SAUDI ARABIA UAE
USA
CHINA
JAPAN
BELGIUM
TURKEY
EGYPT
2011-12 2012-13
Sales (MT) 936.68 589.28
Revenue* 132.76 53.70
2011-12 2012-13
Sales (MT) 311.9 391.00
Revenue* 291.58 464.75
2011-12 2012-13
Sales (MT) 49.67 58.50
Revenue* 71.77 92.02
2011-12 2012-13
Sales (MT) 45.02 147.00
Revenue* 62.15 74.57
2011-12 2012-13
Sales (MT) 739.12 518.30
Revenue* 139.66 64.97
2011-12 2012-13
Sales (MT) 966.45 738.82
Revenue* 181.67 80.48
2011-12 2012-13
Sales (MT) 265.06 124.78
Revenue* 157.19 182.23
2011-12 2012-13
Sales (MT) 2425.10 2628.32
Revenue* 492.07 343.06
Note: The map shows top four export destinations for FY 2011-12 and 2012-13.
* INR Million
16 17Sustainability Report 2011-13SRF Chemicals Business
Levels of Improvement
Our improvement system is at three levels. A large number
of bottom-up improvements called Kaizens are made by
the majority of people using observation skill on routine
problems. The chronic problems are solved using a
structured methodology which we call Problem Solving
Process (PSP). This is similar to QC story. We also have a
methodology called PSP-II which is similar to Task Achieving
QC story. In case of tasks for which solutions are known,
‘Execution Theme’ methodology is applied.
In 2003, a problem solving certification system was introduced. The system requires two graded projects, two assignments
and a test for individual certification. The current implementation model for training and facilitation for PSP program is shown
above. All engineers participate in problem solving and make A3 summary reports of the projects taken.
Evaluation of TQM Status
Evaluations are done by the CEOs to provide
guidance for implementation. Since 2003, we have
received 8 diagnoses by Prof. Hitoshi Kume, which
have helped shape our improvement journey.
Learning from our own methods in 2010, a new
comprehensive system of management diagnosis
with 14 elements was introduced specific to
the Chemicals Business to evaluate status of
organisational capability. The Business Leadership
Team (BLT) carries out the final departmental
audits using a scoring methodology. In the first
diagnosis, the business scored 66 on a 100 point
scale (A score of 50 reflects proper maintenance
and continuous improvement system in place with
requirement of some breakthrough efforts). The
diagnosis, including JUSE diagnosis, has helped
identify critical issues to be taken for annual
business planning.
TQM Education
Training has always been internally designed
and delivered in conjunction with the corporate
TQM team. The topics include basic TQM,
5S, Kaizen, AM and TIE functioning. Training
on annual planning system is done during the
annual planning cycle. Candidates enrolled
in PSP certification are provided 71/2 days of
training and facilitation while working on projects.
Training on specific tools like FMEA, FTA and
PDPC, etc., is provided as needed.
Effects of TQM
With the thrust on TQM as our ‘Management Way’, the Business has benefited in the following ways:
• Increased customer orientation, resulting in expansion of both, Fluoro Chemicals and Specialty Chemicals Businesses
• Improved employee capabilities through standardisation and problem solving, resulting in many innovations involving
methods, material, machine and men
• Improved goal deployment, resulting in our ability to challenge higher goals as a business
8. Reflect
2. Understand present situation
3. Analyse the causes
4. Find solutions
5. Implement the solutions
6. Verify results
7. Standardise and establish control
Tools
Tools + Assignment!
Batch Selection – Team + Themes from annual plan
Test + Project 1 Presentation
Presentation of Project 2
Award of certification and Plaque
Eight steps of PSP methodology
1 day
3 days
2 days
1.5 days
1. Select the theme
6 to
8 M
ont
hs
6 (PSP Silver)
Levels of ImprovementsCumulative Improvements
(till Mar’13)
73 (PSP Blue)
46,889
PSP Silver
PSP Blue
Execution Theme
Kaizens by TIE Groups
+
Management and Technology System
Cross functional Effects
Leadership, Strategy and Structure
Quality Assurance QCDSM - CSR
Maintaining (DM) ProfitManagement Product and brand Power
Improving (PSP) Quality and Delivery Control
Sustainability (environment)
Annual Planning SHE
Innovations and Breakthroughs
People Management
Equipment Management
14 Process elementTechnology
Use of I.T. data
CSR
TQM Implementation Framework
Chemicals Business’ TQM framework is adapted from SRF’s TQM framework. As shown below this has some unique features:
The way we manage
Management Systems Cross Functional Management
Diagnosis
Improvement Hierarchy
1. TIE Groups2. Daily Management3. Breakthrough Management4. Social Responsibility
1. Quality Assurance2. EHS Management3. Delivery Management4. Product and Process Development5. People Management6. Cost Management
PSP Silver
PSP Blue + Execution Themes
Kaizen
The way we think, and do things
Maintain, Improve, Transform
Teamwork and cooperation
Thoughts Work Habits
1. Quality first, not short term profits
2. Market in, not product out3. Next process is customer4. Purpose orientation5. Enabling people realize potential
Skills1. Functional2. People3. Business
Tools1. Statistical2. Language
1. Working with facts, Gemba2. Deep search for causes3. Prioritisation4. Standardisation and
documentation5. Control upstream
AAct
PPlan
DDo
CCheck
Sustainability: People, Planet, Profit
CB People Customers SocietySRF + Regulators
• Experiencing• Learning• Contributing• Growing
• QCDS results• Awards and
recognition
• Returns• Risk mitigation• Compliance to laws• Corporate governance
• Quality• Cost• Delivery
• Environment• Community
partnership• Employment
Top Management Conviction and Leadership
Purpose: Win-Win for all
Effects
Organisational Capability, Technology Power
G
C
E
L
Q
D C
E
CP Em
NoofEmployeesPSPBlueCertified-Cumulative
3
21
32
52
67
78
10
30
50
70 70
90
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Actual Planned
TQM Training - Cumulative (No of Hours)
1893 4112
7948
10775
15025
17791
2000
4000
7000 9000
11000
13000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Actual Planned
Types of PSP Projects
Productivity improvement
35%
Energy Conservation
27%
Raw Material Conservation
21%
Quality Improvement
9%
EHS 5%
Water Conservation
3%
Chemicals Business has a system for certifying people for
their problem solving ability. There are 2 levels of certification:
• PSP blue is the basic level and includes the 7 QC tools
• PSP silver is an advanced program covering tools such
as design of experiments, PDPC, FMEA, etc. PSP silver
certified people tackle complex problems
The levels of improvements are shown below:
18 19Sustainability Report 2011-13SRF Chemicals Business
Business and the Board SRF Limited is governed by a 9 member Board
of Directors (6 of them independent) who guide/
supervise the Business at the SRF Group level.
Each Strategic Business Unit of SRF has its
own leadership team. As such, the Chemicals
Business also has its own Business Leadership
Team (BLT) which is supported by 9 Cross-
Functional Teams for a focused approach on
Quality, Cost, Delivery and Sustainability. The
Company has a full-time Director to look after the
issues related to Health, Safety & Environment.
In the recent past, the Group in general and
the Chemicals Business in particular have
witnessed significant organisational changes.
The SRF Group inducted 6 new CEOs to the
Corporate Leadership Team with effect from 1st
August 2013. Now, the Chemicals Business is
Corporate GovernanceAt SRF, good governance is synonymous with adoption of
best practices to ensure that the company operates not
only within the regulatory framework, but is also guided by
business ethics.
The Corporate Governance framework adopted at
SRF Limited encompasses a significant portion of
recommendations under ‘Corporate Governance Voluntary
Guidelines 2009’ issued by IICA. SRF has a broad-based
Board of Directors and there is a clear separation of
Board’s supervisory role and the executive management
of the company. It has instituted a ‘Code of Conduct’ for
prevention of Insider Trading and various Board committees
have been constituted with independent Directors.
Code of ConductSRF Limited’s Code of Conduct provides guidance
regarding ethical behavior, transparency, accountability,
anti-corruption, discrimination and anti-bribery. Management
systems implemented around these aspects, including
SA8000:2008 certification, ensure that appropriate controls
are implemented. Stakeholders, specifically employees, are
well informed of grievance redressal mechanisms instituted
for shareholders, employees, customers, suppliers and
local communities. The Business takes pride in the fact that
during the reporting period, there were no reported incidents
of discrimination, unethical behaviour, corruption or violation
of human rights, and remains committed to adopting the
highest standards of business ethics.
Business RisksStrong internal controls implemented as part of the
Governance mechanism help the Business identify and
mitigate significant risks arising out of the nature of the
Business and the changing regulatory landscape. This
control system works on three primary principles:
• The planning system that builds a goal-oriented mindset
and draws out action plans for fulfillment of targets
• The risk assessment system through which significant
risks or threats are dealt with, and, mitigation strategies
and contingency plans made
• The review system for regular monitoring, evaluation
and reporting of irregularities, implementation of remedial
measures in case of strategy deviation
The risk identification process is overseen by the senior
management. The outcome is discussed with the Board
of Directors, subsequent to which high priority mitigation
measures are incorporated into the Company’s strategy and
yearly action plan.
divided and operates as two separate businesses, Fluoro Chemicals and
Specialty Chemicals, led by individual CEOs.
The Board of Directors has complete access to all relevant information on
the Business, Inter alia, the following information is regularly provided to
the Board for guidance and approvals:
• All strategic investment proposals for sustainable business growth and
continuity including R&D spend
• All materially important show cause, demand, prosecution and penalty
notices
• Any fatal or serious accident, dangerous occurrences, any material
effluent or pollution problems
• Any issue which involves possible public or product liability claims of
substantial nature
• Any significant development in the sphere of human resources/
industrial relations
The Board also reviews quarterly, the compliance reports of all laws applicable
to the Business, as well as steps to rectify instances of non-compliance.
(Givesvision&directiontothebusiness,coordination&conflictresolutionatthehighestlevel)
(Ensuressmoothandsafeplantoperationwithfocusonsafetyandproductivityimprovements)
(Ensuresembeddingofsustainabilityofoursystems,peopleandprocesses)
Rajeev Marwah
Sr. Vice President Head of Operations
& Projects
R N Kaul
Sr. Vice President Sourcing & Regulatory
Affairs
Sanjay N Mathur
Sr. Vice President Sales & Marketing
(FCB)
Anurag Jain
CEO & President Specialty Chemicals Business
H S Dua
Associate Vice President HR & CSR
Umang S Bhatnagar
Associate Vice President Strategic Sourcing (New
Products) & BPD
Sunil Gulpadia
Sr. Vice President Finance & IT
Prashant Yadav
CEO & President Fluoro Chemicals Business
Business Leadership Team
Strategic risks
arising out of industry
performance, technological
upgrades and changing
customer requirements
Operational risks
arising mainly out of
technological discontinuity
and capability gaps of new
employees
Financial risks
primarily arising out of the
fluctuating foreign currency
exchange rates
Other risks
including environmental,
societal and geo-political
risks
Strategic decisions undergo
a thorough evaluation
for potential risks and
threats. Wherever relevant
changes in the governance
structure, operating model
and go-to-market strategy
are implemented
Robust implementation
of the Total Quality
Management System that
empowers employees
with requisite policies,
processes, procedures and
technological tools to ensure
customer satisfaction
Be guided by a
conservative foreign
exchange risk management
policy to limit financial risks/
losses. Critical imports
and exports are overseen
by our Strategic Sourcing
department
In accordance with the
GRI G3.1 guidelines,
we undertake regular
assessment of
material issues around
environmental, social and
economic impacts of the
Company & vice versa. The
mitigation measures for
these risks and progress
is reported through our
biennial Sustainability Report
RIS
KS
MIT
IGA
TIO
N A
PP
RO
AC
H
20 21Sustainability Report 2011-13SRF Chemicals Business
Stakeholder inclusion and ongoing engagement provide critical inputs to formulate our growth strategy. We
strongly believe that business success depends on the prosperity and well-being of our stakeholders.
The ongoing engagement methodology includes listening to stakeholders’ views and opinions,
identifying and including their concerns and suggestions in our decision-making processes and
providing timely responses. The business’ growth and success is dependent on our performance against
seven strategic pillars that are drawn from our key material issues.
Stakeholder Engagement
We have prioritised our stakeholders through rigorous management driven discussions into six categories, namely,
shareholders/investors, customers, suppliers, employees, local communities and regulatory authorities. The engagement
process encompasses identification of primary and secondary stakeholders, development of influence-dependency matrix,
prioritisation and finalisation of engagement approaches.
Value Creation Mindset• Identify compliance-related concerns, if
any, in our business activities
• De-risk our strategy and operations in
view of financial, environmental, social,
geopolitical and reputational risks
• Proactively identify prospective issues,
incorporate suggestions into tactical
business planning approach
• Integrate new thought processes,
ideas, business and operational models
into strategic planning, enhance value
creation and mutual benefits
We are open and transparent in our communication with stakeholders and follow appropriate modes of engagement for
different stakeholder groups.
Indicative stakeholder engagement methods
Communication Consultation Dialogue Partnerships with
• Information sharing
• Training programmes
• Marketing material (Brochures, publications, reports, newsletters, website updates)
• Questionnaires
• Surveys
• Focus group discussions
• Meetings with customers, suppliers and community representatives
• Multi stakeholder forums
• Leadership Summits hosted by organisations like CII, advisory panels
• Academic institutes, specifically for new product development
• NGOs and government agencies for community projects
The learnings from these engagement programmes are shared internally for ongoing monitoring and subsequent material
issue identification.
Summary of Stakeholder Engagement
Stakeholder Mode and frequency Aspects discussed
Shareholder, Investor
• Annual and quarterly meetings to discuss financial performance
• Need-based interaction as part of grievance redressal mechanism
• Biennial Sustainability Report
• Financial performance and business growth
• Business risk management
• Strategic planning, entry into new product, geography or market segment
• Optimising operational costs
• Raw material availability
Customer
• Annual customer satisfaction survey
• Regular written & oral feedback
• ‘Floron Days’, One to One Contact Programme
• Feedback during manufacturing/R&D unit site visit
• Customer’s supplier recognition/awards programmes
• Biennial Sustainability Report
• Product innovation and life-cycle efficiency
• Service quality and turnaround time for service requests
• Customer complaints resolution, ensuring high satisfaction
• Quality and safety of products, packaging material and transportation
• Product pricing and availability
Supplier
• Regular vendor/supplier evaluation
• Quarterly meetings with significant suppliers
• Site visit by supplier
• Site visit to supplier facility
• Raw material pricing, availability & reliability (contracting for long-term supplies)
• Service quality and complaint resolution time
• Human rights issues
• Quality and safety of raw material, packaging material and transportation
Employee
• Annual performance appraisal discussions
• Identifying concerns and areas of improvement through People Redbook System
• Annual employee feedback surveys
• Annual training needs assessment
• Regular interactions by Safety Committee, Management Review of the Integrated Management System
• Complaint/suggestion box/grievance redressal mechanisms
• Quarterly CEO Communication meetings
• Daily TIE Group meeting
• Employee growth prospects, mapping with business performance
• Learning and development requirements
• Reward and recognition
• Occupational health and safety
• Work environment & policies
• Grievance redressal
• Ethics, transparency and anti-corruption
Local community
• Pre-project needs assessment studies
• Regular interaction for implementation of programmes
• Partnership with NGOs for project planning, implementation and impact assessment
• Quarterly impact assessment studies
• Social impact assessment and formal public hearings for environmental clearance of new projects
• Social concerns in the region – education, empowerment, healthcare facilities, infrastructure development and sustainable livelihood options for the poor
• Minimising the negative environmental impact of our operations
Regulatory authority
• Indicator/parameter based monthly or annual regulatory compliance reports
• Annual review meetings for renewal of statutory clearances
• Participation in public policy advocacy programmes through industry consortiums (CII, FICCI, etc.)
• Regulatory compliance
• Operational efficiency
• Community development and managing environmental impact
We diligently direct our efforts towards continuous improvement of our stakeholder engagement process. Our risk–reward
SRF-CB’s approach to stakeholder engagement
22 23Sustainability Report 2011-13SRF Chemicals Business
It is our strong belief that organisational
sustainability is an evolving process that is
governed by the mega forces of development.
Our inclusive stakeholder engagement process
for determining material issues considers these
mega forces and prioritises them according to
the immediate, short and long-term ambitions
of the Business. In 2009, we launched the
concept of strategic pillars through which
we define, monitor and achieve sustainable
business outcomes.
Importance to Company
Strategic pillars(Reported through key performance
indicators)
Risks and opportunities(Reported through management
disclosure)
Long term vision(Not reported)
Imp
ort
ance
to
Sta
keho
lder
s
W. Edwards Deming’s fourteenth principle of management says “Put everybody in the company to work to
accomplish the transformation. The transformation is everybody’s job”. As a recipient of the Deming Prize, one
of the world’s most prestigious quality performance awards, we reiterate this principle, and diligently follow a
participatory approach to transformation. Accordingly, each of our organisational functions and departments
take direct responsibility for achieving the targets set out under strategic pillars.
Strategic Pillars for Sustainability
The environmental, economic and social impacts of the Business
are derived out of identified material issues from seven overarching
strategic pillars. This process is overseen by the Sustainability
Leadership Team and approved for implementation by the Top
Management. Our outlook towards ensuring sustainability in operations
is strengthened by our pillar-wise action plan to achieve results against
stated environmental, economic and social goals. Each departmental
function in the Company commits to targets against relevant strategic
pillars and ensures that delivery responsibilities are funneled down to
individual employee performance.
Seven Strategic Pillars
Energy and Climate Change
Emissions,renewableenergy,energyefficiency
Community Development
Benefitsharingandsocialinvestments
Responsible Resource
Management
Waste&watermanagement,TotalQualityManagement,productsafety,transportsafety
Sustainable Economic
Growth
Rawmaterialavailability&
pricing,BusinessRiskManagement,
growth
Employee Engagement and
Development
Successionplanning,
employeegrowth,valuesinculcation,laborconditions
Environment Health and Safety
Emergencypreparedness,OccupationalHealth&Safety
Responsible Product
Development
Productperformance,safety,R&D
1 2 3 4 5 6 7
evaluation of business drivers is based on stakeholders’ issues and materiality assessment. This assessment undergoes
rigorous internal evaluation through focus group discussions with technical experts and specialists within the Company.
Occupational Health and Safety
Product Safety during Transportation
Biodiversity and Resource conservation
Financial Performance and Growth
Air and GHG Emissions
Business Risk Management
Emergency Preparedness Total Quality Management
System
Raw Material-Availability and
Pricing
Ethics and Values
Regulatory compliance
Water Consumption and Discharge
Energy Efficiency
Product Innovation, R&D
Employee Development and Growth
Community Engagement and Development
Use of Renewable Energy
Branding
Very highHigh
Hig
hVe
ry h
igh
Ext
rem
ely
high
Extremely high
Labour Conditions
Waste Management
Local Employment
Importance to Company
Imp
ort
ance
to
Sta
keho
lder
s
25Sustainability Report 2011-13
Coal (MT) Mustard husk (MT)
Wood chips (MT) LSHS or Furnace oil (MT)
High speed diesel (KL)
58,1
42
17,8
83
2,65
9
2,39
2
791
65,2
44
20,0
28
1,59
4
2,16
6
697
2011-12 2012-13
Energy and Climate Change
We understand the importance of energy and proactively undertake energy efficiency and emission reduction activities.
During the previous reporting period, 2009-11, we undertook a rigorous energy assessment and GHG verification activity
to identify potential areas of improvement. Through technological interventions, changes in procedures and leveraging on
market mechanisms, we have achieved significant progress in achieving our targets.
Summary of Progress in 2011-13Target Yearly target Progress 2011-12 Progress 2012-13
ReductioninspecificScope1GHGemissions
6% 4.84% 13.74%
ReductioninspecificScope2GHGemissions
- -23.5% 14.3%
Energy saved (kWh) 5% 1.5% 1.1%
Fuel saved (kl) 5% 3.67% 4.3%
EnergyThe availability and pricing of energy is of critical importance for our operational stability. We have diversified our electricity
sourcing portfolio to include low-carbon and renewable energy sources. The captive power plant, which caters to a
significant portion of the manufacturing unit’s power and steam requirements, also uses mustard husk and wood chips as
fuel. A snapshot of our energy sources and amount consumed is provided below. We periodically monitor our performance
against these indicators and strive to benchmark efficiency against industry best practices.
1 The burgeoning effects of climate change significantly impact our business sustainability.
We understand our energy intensive processes and the criticality of energy availability for business growth.
In view of this, the materiality assessment this year includes renewable energy as a medium material aspect,
in line with the long term view of the management.
Direct Energy Consumption Indirect Energy Consumption
Regular monitoring of the energy consumption patterns has resulted in identification of various energy saving initiatives.
Accordingly, we take yearly targets for reducing consumption of thermal and electrical energy. The internal utilities
department organises a thorough energy performance review annually, and commits to reduction targets. During the
reporting period, energy reduction targets for both electrical and thermal energy were taken and the following energy
conservation initiatives were implemented.
26 27Sustainability Report 2011-13SRF Chemicals Business
2010-11 2011-12 2012-13
0.017
0.021 0.018
2011
-12
Initiatives
2012
-13
Initiatives
• Installation of water emulsification system in
HOG unit of HFC plant (Savings in INR: 38.72
lakh/annum)
• Installation of 14 Variable Frequency Drives in
pumps (Savings in INR: 16.56 lakh/annum)
• Replacement of 4 CPP cooling tower fan blades
by FRP (Savings in INR: 15.84 lakh/annum)
• Installation of solar water heater for canteen
(Savings in INR: 0.31 lakh/annum)
• Use of FO in place of HSD (Savings in INR: 55 lakh/
annum)
• Optimisation of FS plant utilities by installing VFDs in
cooling water (Savings in INR: 6.9 lakh/annum)
• Installation of 18 kW cooling water pump; shut down 75
kW for rotary UPS (Savings in INR: 4.94 lakh/annum)
• Replacement of Fluorescent Lamps with CFLs
(Savings in INR: 3.95 lakh/annum)
Our Absolute Scope 1 emissions in 2011-12
increased due to a major shut down suffered
by the HFC 134a plant, maintenance activities
for which consumed a significant amount of
furnace oil. However, ongoing efforts to reduce
emissions resulted in reduction of Scope 1
emissions by 16% in 2012-13 over 2011-12.
Scope2Emissions(tCO2e) SpecificScope2Emissions (tCO2/MT of production)During 2011-13, we were unable to fully achieve either the thermal or the electrical energy reduction target. This is attributed
to the fact that for past many years we have been working on rolling target of energy reduction which is making it difficult
to find new saving avenues every successive year. Therefore, now we have also included thermal energy reduction targets
along with electrical energy reduction targets.
We are also exploring alternate fuel use options which not only improve bottom line of the organisation, but also reduce the
environmental impact.
2010-11 2011-12 2012-13
0.558 0.531 0.458
SpecificScope1Emissions (tCO2/MT of production)
*
Scope 1 Emissions (tCO2e)
2010-11 2011-12 2012-13
100,935
114,586
96,787
*
#
* Increased on account of preparatory activities for commissioning of units # In our previous Sustainability Report 2009-11, this date was erroneously presented as 92,610
* Increased on account of HFC 134a plant shutdown
Our Captive Power Plant in Bhiwadi manufacturing unit uses a biomass
boiler where mustard husk and wood chips are used as fuel to generate
steam. In 2011-12, over 25% of the fuel used in the captive power plant
comprised of biomass resources, and in 2012-13 the same was 24%.
In 2010, the Bhiwadi manufacturing unit had obtained a certification
for ISO 14064:2006 Verification of GHG emissions. Through this study,
many potential emission reduction measures were identified out of which
the following were implemented:
• Increasing the proportion of biomass used as fuel for steam
generation
• Periodic performance evaluation of efficiency of existing DG sets
for optimum operational efficiency (performed through internal
evaluations)
• Working upon the set GHG reduction targets through low/no-
investment energy efficiency measures
As a long-term vision, a need has been felt to integrate GHG data
accounting and monitoring into the ERP system and this integration is now
a long-term goal in the organisation.
We had recently upgraded the ERP system
to Oracle R 12, which had a data migration
gestation period of about 6 months.
Furthermore, due to the same reason, the
carbon footprint data for the year 2012-13
could not be captured comprehensively, which
resulted in incomplete data availability for
estimating our Scope 3 emissions. We take this
issue seriously, and are considering alternate
options to ensure robust data management and
reporting in future.
“Our integrated IT system has given
us more flexibility to accurately
monitor energy and emissions.”
- Mahesh Agrawal, AVP (CPP)
EmissionsOur two-pronged strategy to reduce organisational emission intensity entails inclusion of renewable energy sources in our
energy procurement practices and leveraging on market mechanisms to offset emissions through carbon credits. While the
former contributes to economic development by adding a financial value to resources like biomass, the latter strengthens
India’s position as an active member of international climate change mitigation negotiations and creates a means for
technology transfer into the country.
Parameters Unit of Measurement 2011-12 2012-13
Air emissions
ODSConsumption(R22) Tons of CFC-11 eq. 1.1 0.9
PM Emission MT 2.63 3.44
29Sustainability Report 2011-13
Our community engagement journey began in 2005 and has achieved meaningful progress against set targets. We work
along four primary focus areas, namely Natural Resource Management for improving livelihood, Education, Community
health and Women empowerment. These initiatives are implemented through partnerships with reputed NGOs. PRADAN
& SST implement watershed-based Integrated Natural Resource Management (INRM) project, SPACE conducts its impact
assessment and SARD works on health and education programmes.
Sustainable Livelihood Development through Natural Resource Management (NRM)
Community Engagement and Development
2 The Community Outreach and Engagement Programme is aimed at seeking proactive feedback and being
responsive to the changing needs of local communities and the society at large. Through sustainability efforts,
we focus on CSR vehicles that advance learning and development, facilitate access to education, improve
quality of life and protect environmental resources. The commitment to serve the communities is translated into
action through a number of initiatives. While planning and implementing our interventions in local communities,
we are sensitive to their social, cultural, environmental and economic conditions.
The project aims at enhancing livelihood options for the rural poor by
harnessing underutilised land and water resources. This project was
started in 2005 with the objective of enabling environment protection,
improving water and soil resources, maintaining ecological balance
and improving the livelihood of local communities. The project covers
38 neighbouring villages in Tijara Tehsil of Alwar district of Rajasthan,
the community surrounding the manufacturing unit in Bhiwadi.
The project objective is to reach out to 6,500 families by 2015
and increase their income by INR 10,000 annually on sustainable
basis. Already in its seventh year of implementation, the project has
benefited over 5,100 families, with 1,414 beneficiaries added during
the reporting period.
We have partnered with reputed NGOs, PRADAN and SST, to
undertake the project implementation while SPACE has been engaged
for its continuous impact assessment.
“My fallow small land was useless, until
the Dihiwali and Kariwali paals were
constructed. Now I am the proud owner
of 2 bighas of fertile land, which is my
major source of income today.”
- Illias from Gualda Village
30 31Sustainability Report 2011-13SRF Chemicals Business
0.59 0.67 0.69 0.69 0.72 0.77
0.27
1.23
1.02
1.41 1.41 1.53
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Water consumption at the plant
Ground water recharged through NRM project
1.63 2.55
3.65 4.06
4.43 4.46
4.47 4.47 4.47
0.45 0.97
1.98
4.46
5.64 6.7
7.68
8.56
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Cost Benefit
Project Activities:
The region around our manufacturing unit at Bhiwadi is water scarce.
Being a responsible Company, proactive need assessment led to the
launch of the NRM project, which includes:
• Community awareness and mobilisation through the formation of
Self Help Groups (SHGs)
• Construction of rainwater harvesting structures like earthen check
dams to harvest rain water from barren hills
• Terracing and land leveling in the catchment area of the earthen
check dams to convert these wastelands into farmlands.
• Large scale plantation and promotion of agriculture-based
livelihood activities on these leveled lands
• Capacity building of farmers and facilitation for market and bank
linkages
During the reporting period, a total of 33 Earthen Check Dams (Paals)
were constructed for rainwater harvesting covering 1,185 Ha of
catchment area. Additionally, 463 Ha of waste land was leveled and put
under agricultural use. We also facilitated plantation of 0.75 lakh fruit
and fodder trees, with 70-80% survival rate. This has benefited 1,414
new families in 38 project villages.
Activity Progress 2011-12
Progress 2012-13
Cumulative since 2006
Construction of earthen check dams (Paals) 25 08 182
Catchment area covered (Ha) 573 612 9,568
Ground water recharged (Mm3) 1.41 1.53 6.87
Land leveling (Ha) 205 258 1151
Plantation of fruit and fodder trees (No) 38,700 38,326 249,791
Number of Self Help Groups (SHGs) 25 24 132
Families impacted (direct/indirect) 471 943 5,155
The Project Impact so far
• Reversed the trend of ground water
depletion and rise in ground water level by
up to 2.1 meters in the project villages
• 1,151 ha of gullied waste/undulated land
converted into farmland
• 150% increase in crop yield with improved
agriculture practices and 300% increase in
the family income after Land Leveling
• Large scale plantation that led to increase in the forest cover and
income options for the poor
• 5,155 families benefited with sustainable livelihood interventions
• Contributed to National Food Security through increased agriculture
production and conversion of waste land to farm land
• The Business has been water positive since 2008-09 by creating
over 2 times more rain water harvesting potential against its net
water consumption at the factory
Water Consumption Vs. Water Replenishment (MnM3)
Crop Yield after Land Levelling (qt/ha)
Cost-benefitAnalysisofCheckDams Construction (Million Rs.)
Increase in Water Table after Construction of Check Dams in One of the Project Villages
(Metres)
Measuring the Impact of NRM Project Interventions
20.72 20.63 20.59
20.97 20.89
21.32
21.89
19.12
18.62
19.02 19.19
19.53
20.16
19.22 19.04 19.12
19.24 19.29 19.42 19.37
18.31
18.62 18.89
18.63 18.65
18.18
18.56
18.88 18.93 18.71
18
18.5
19
19.5
20
20.5
21
21.5
22
30.0
6.08
31.0
8.08
15.1
1.08
15.0
2.09
15.0
4.09
15.0
5.09
30.0
6.09
31.0
8.09
30.1
1.09
28.0
2.10
15.0
4.10
15.0
5.10
30.0
6.10
30.0
8.10
15.1
1.10
15.0
2.11
15.0
4.11
15.0
5.11
30.0
6.11
31.0
8.11
30.1
1.11
28.0
2.12
15.0
4.12
15.0
5.12
30.0
6.12
31.0
8.12
30.1
1.12
28.0
2.13
15.0
4.13
15.0
5.13
MONSOON 2008
RABI 2008-09
SUMMER 2009
MONSOON 2009
RABI 2009-10
SUMMER 2010
MONSOON 2010
RABI 2010-11
SUMMER 2011
MONSOON 2011
RABI 2011-12
SUMMER 2012
MONSOON 2012
RABI 2012-13
SUMMER 2013
Wat
er T
able
- M
tr
23.5 20.5
29 33
42 42 43
11.75 8.5 13
16.5 17
16 17
22 18.25
24
33.5
40 42
45
2006 2007 2008 2009 2010 2011 2012
Wheat Mustard Barley
Strengthening Rural Primary Education through ‘Project Shiksha’Our primary education initiative ‘Project Shiksha’ aims at improving the quality of education in rural schools and raising
minimum learning levels with special focus on girl child and marginalised sections of society. The Project was initiated in
2005-06 with our NGO partner SARD and the Department of Primary Education, Alwar under Public-Private Partnership
(PPP) model, to reduce school drop-out rates and mainstream out-of-school children in the neighbouring villages
surrounding the factory establishment.
During the reporting period, we continued our
efforts under the project which benefited 2,632
students in 12 government primary schools. The
interventions have led to an increase in average
school attendance, especially of girls, drastic
reduction in dropout rate from 53 percent to
just 6 percent now. Activities that led to such
developments include:
• School infrastructure development
• Remedial classes for the academically weaker children
• Providing support staff to the school
• Provision of computer-aided learning facilities
• Capacity building of school teachers and community
mobilisation
32 33Sustainability Report 2011-13SRF Chemicals Business
School Infrastructure Development and Access to Education
As part of our Primary Education Program, we have planned and
executed several infrastructure development activities like construction of
classrooms, toilets, kitchen, drinking water facility, development of play
ground, play areas and beautification of the school building by giving
them a BALA (Building As Learning Aid) makeover. The community
has shown great interest in promoting school development which is
evident from increased participation and financial contribution from the
communities as well. The improved schools have become a model in the
area. This initiative has positively impacted the community with improved
number of enrolments and attendance percentage in the schools.
In 2012, we launched a school van from Ban Ban village to Jhiwana
High School. This benefited 30 girl students, subsequently leading to
increased girl student retention in high schools.
Establishment of IBM Kidsmart Centres
During the reporting period, we entered into a tripartite MoU with the
Department of Elementary Education, Government of Rajasthan and
Increased enrolment in school by 12% over baseline ‘2007’1Increase school attendance from 67% to 86%2
Reduction in the drop out rates of school children from 53% to 6%3Increase in performance of academically weak children and their retention rates in schools4
Increase in involvement of parents in education of their children, especially girl child education5
Improvement in the overall school infrastructure6
IBM for the establishment of 12 IBM Kidsmart
Early Learning Centres in Government primary
schools at Bhiwadi. The objective of the program
is providing good quality teaching-learning
opportunities to the children from low socio-
economic status communities by reinventing the
educational methodologies through the use of
technology and child-centric approach.
Presently, the programme is being
implemented in 12 government primary
schools near our Bhiwadi unit covering over
1,400 children from 1st to 3rd standard. During
2012-13, the focus of the programme was on
infrastructure development in all the selected
schools. Under this process, a grant of INR
19.13 Lakh was sanctioned by the Rajasthan
government towards the required infrastructure
development for establishment of these
centres.
Capacity Building and Community Mobilisation
During the reporting period, several steps
were taken to improve teaching pedagogy,
such as development of innovative Teaching-
Learning Materials (TLM) and training on
its usage and class room processes. RTE
awareness campaigns were launched to
sensitise the community and school officials
on the provisions of RTE. Capacity Building
workshops were organised for the Government
school teachers on RTE, Life Skills & Positive
Discipline. A special school enrolment drive
was also organised in the neighbouring
villages leading to a 15% rise in enrolment in
comparison to 2010-11.
Rajasthan State Bhamashah Award to SRF-CB
Recognising our CSR endeavour for strengthening of primary education
in the rural schools near our Bhiwadi site, the Govt. of Rajasthan
felicitated SRF-CB with the State Level ‘Bhama Shah Award 2013’.
The award was presented to SRF jointly by the Minister for Education
and Minister for Panchayati Raj, Government of Rajasthan, at a specially
organised function at Jaipur in the presence of Chief Secretary-
Education and other eminent personalities.
Community HealthWe strongly believe that empowering the community is of utmost importance to community development and progress.
Thus, through our focused community health interventions and participatory approach we strive to empower community
members. Our health initiatives aim to bring a positive behavioural change in our workforce and the neighbouring community
through awareness, sensitisation and facilitation for service delivery.
Workplace Intervention on HIV/AIDS
Taking the proactive approach to prevent
HIV/AIDS amongst the workforce and the
surrounding communities, we initiated
awareness and prevention of HIV/AIDS in
2005-06. This is a corporate-wide programme
at SRF Limited, entailing the adoption of a
workplace policy on HIV/AIDS with support
from International Labour Organization (ILO).
Under this intervention, awareness and training
programmes are organised for employees,
contract workers, truckers and neighbouring
community on regular basis. As an impact of
the interventions:
• Over 4,000 people attended the
awareness & training programme during
the reporting period
• Approximately 50% employees
underwent voluntary HIV testing
organised by RSACS. No HIV positive
cases have been reported so far
34 35Sustainability Report 2011-13SRF Chemicals Business
Community Health Programme
The community health initiatives include periodic eye camps, disability camps for children, school health check-up camps
and awareness sensitisation on health and hygiene practices. These interventions are undertaken in partnership with AIIMS,
New Delhi, local Government PHCs and CHCs and the NGOs. As an impact of the intervention:
• A total of 3,583 people in 2011-12 and 1,568 people in 2012-13 benefited from these community health initiatives
• More than 650 community people benefited through community eye check-up camps in 2011-12
• 38 free-of-cost cataract surgeries were performed for the neighbouring community at AIIMS, New Delhi
• 166 identified children benefited from the ENT camp organised for the primary school children
• In 2012-13, 30 toilets and bathrooms were constructed on 50% cost sharing basis, improving the health and hygiene
condition in the project villages
• Capacity building workshops were organised for health service providers to improve the field-level service delivery. These
were attended by 36 ANM, ASHA and Anganwadi workers.
Empowering Women
Promoting the Women Self Help Groups
We have historically been contributing towards promoting social and
economic empowerment of women, especially from marginalised
communities, through formation and capacity building of women’s Self
Help Groups (SHGs). As on March 2013, over 132 women’s Self Help
Groups (SHGs) with bank linkages were functional. Subsequently, they
have started the practice of maintaining piggy banks by contributing
meager savings and lending internally between group members. This
successfully fulfills their micro credit needs.
Vocational Training
With the objective to promote employability through women
empowerment, we initiated a vocational training programme by
launching a tailoring course for adolescent girls. The course is run for 6
months with maximum enrolment of 30 girls with focus on Scheduled
Castes and the Meo-Muslim community. During the reporting period,
71 girls successfully completed the training. So far 252 girls have
been trained in 8 batches out of which 39 have got employment in
the neighbouring garment industries, while others are gainfully self-
employed. The focus of these trainings is also to provide functional
literacy to illiterate women.
37Sustainability Report 2011-13
Our manufacturing facility in Bhiwadi is located in a water-scarce region and we take proactive measures to ensure optimum
resource usage. Better resource management leads us to improve efficiency and reduce wastage.
SummaryofProgressin2011-13
Responsible Resource Management
3 Twenty years down the line, India will have far more people living in urban areas, whose lives will depend on
chemicals in one form or the other. Cities are bulging in size, and the competition for natural resources is inevitably
going to increase. As a company that addresses the growing needs of the people by responsible chemistry use,
resource use management is a key lever to growth. Our excessive dependency on and inability to optimally use
the resources will hinder business growth and leave the Business far short of societal expectations. Resource use
efficiency and management are therefore key focus areas where we address various issues regarding raw material
consumption, water conservation, waste management and bio-diversity.
Improving Resource Use EfficiencyAs material efficiency is an important performance indicator across production operations, we take several measures to use
our resources responsibly.
The focus of our operations is presently on reducing
specific consumption of virgin materials through
enhanced material efficiency, combined with recycling
and reuse of waste. Major technological interventions and
process changes to this effect include:
• Recycling of ETP sludge as raw material: Our
manufacturing unit generates acidic effluents which
are neutralised with the help of hydrated lime. The
neutralisation results in generation of fluorspar, which is
one of our critical raw materials. The ETP sludge is thus
completely recycled to generate anhydrous hydrofluoric
acid in HF plant and used as recycled raw material.
Operating in the water-scarce area of Bhiwadi in Rajasthan, we face
a multitude of risks regarding water availability, disputes in local
communities resulting from adverse impacts of water scarcity and access.
As a result we have identified two focus areas for water management:
• Increasing water efficiency of operations
• Increasing focus on NRM activities
pertaining to water replenishment
Significant materials
consumed (MT)
2011-12 2012-13
Fluorspar 22,800 21,881
Liquid chlorine 41,889 43,682
Methanol 12,321 13,686
Sulphuric acid 26,381 25,760
Oleum 6,572 7,090
Packaging material 1,198 994
2010-11 2011-12 2012-13
16.61
10.85 13.61
Reduction in Waste Generation* (MT)
(10% reduction target)(10% reduction target)
14.9513.50
2010-11 2011-12 2012-13
3.90
3.32
3.64
Reduction in Water Consumption (m3/MT)
(2% reduction target)
(2% reduction target)
3.82
3.74
* The target for waste generation is limited only to hazardous waste (encompassing spent oil, empty barrels and used batteries)** Due to poor market demand, plant run at reduced load
**
**
38 39Sustainability Report 2011-13SRF Chemicals Business
Progress Towards Water Positivity• All input-output norms are monitored on daily basis to eliminate chances of waste. Any deviation is corrected
immediately and reprocessing is kept to a minimal level. Recycling and reuse are extensively used to attain new
benchmarks in specific consumption of raw material.
The table below demonstrates the result of resource use efficiency initiatives undertaken during the reporting period.
Raw material usedSpecific consumption
Monitoring method2010-11 (Baseline) 2011-12 2012-13
ChloroformtoR22(ton/ton) 100x 99.0x 99.0x • Resource use efficiencies are monitored on daily basis using DCS data
• Causes for variation, if any, are analysed and improvement programmes are undertaken
Chlorine to CMS (ton/ton) 100y 99.8y 96.0y
Methanol to CMS (ton/ton) 100z 99.3z 99.3z
TCACtoP2 (ton/ton)
100x- 99.0x- 99.0x-
Effective Waste Management
In line with our commitment for effective waste
management, we disposed 10,861 tons and
13,613 tons of hazardous waste in 2011-12
and 2012-13 respectively. We successfully
reduced waste generation in the reporting
period. This was the result of a combined effort
of all employees, which helped us achieve
significant reduction in all categories of waste generation – cut drum,
fly ash or biomedical waste. We ensure safe and environment-friendly
transportation and disposal of waste and have entered into a partnership
with a local cement producer, where we divert our process waste fly ash
from the captive power plant and 80% of gypsum from the production
process. The remaining 20% gypsum is sent to brick manufacturers.
Waste minimisation and management is a behavioural trait amongst employees. We lay equal emphasis on minimisation
of non-hazardous waste, specifically the food waste generated out of canteens. The quantity of daily food waste is shared
with employees along with the data of how many stomachs can be fed by this waste quantity. This has made them more
responsible and we achieved a drastic reduction in canteen waste.
During the reporting period, constant efforts were made to
monitor our water use and impact on ground water table.
We believe that these parameters are critical, given the
nature of our operations and location of our manufacturing
facility. In order to ensure sustained availability of water
for future use, we have adopted several water resource
conservation and preservation strategies.
Water is a key focus area of the Integrated Natural Resource
Management Programme which is aimed at resolving
the water crisis issue in the neighborhood. We strive to
achieve higher ground water tables and better livelihoods
through facilitating farming and tree cultivation activities
for communities. These efforts have received recognition,
support and appreciation by local authorities and
communities through various forums. In 2007 we installed
five piezometers to measure the change in ground water
table. Constant monitoring has indicated that ground water
level has risen significantly in the region, where interventions
were undertaken.
These initiatives have kept uswaterpositivesince2008-09.
The total water replenished is higher than our ground water
withdrawal. During the current reporting period, we have
maintained this progress and continued to be water positive.
Protecting Biodiversity
In the current environmental scenario, biodiversity is a very important
indicator of ecological health. We seek to effectively manage the impact
of our activities on wildlife, as well as on the species it houses. SRF owns
34 hectares of land at the factory site. Approximately 36% of this land
is used for development of a green belt – more than the compliance
with statutory norms. Expansion of this green belt serves as an effective
pollution mitigation technique as well as bio-indicator for the pollutants
from the manufacturing unit.
We are well versed with the risks associated with loss of bio-diversity and
ensure that no such risks arise from our manufacturing activities. There is
no National Park, Wild life sanctuary, Biosphere reserve, Wildlife corridor,
Tiger/Elephant Reserve or Migratory route within a radius of 10km from
our factory. However, the following Protected/Reserved Forests exist
within this vicinity:
2010-11 2011-12 2012-13
9.350
4.790
3.260
2010-11 2011-12 2012-13
0.013
0.018
0.010
2010-11 2011-12 2012-13
112.990 109.690
95.240
2010-11 2011-12 2012-13
16.880
13.640
9.880
Cut Drum (MT/MT of production)
Biomedical Waste (kg/annum/employee)
Fly Ash (kg/MT of production)
Canteen Waste (kg/annum/employee)
0.69
0.69 0.72 0.77
1.02
1.41 1.41 1.53
2009-10 2010-11 2011-12 2012-13
Water consumed (Mnm3) Water Replenished (Mnm3)
Water Consumed v/s Replenished (MnM3)
• Indaur 6km away
• Banban 0.32 km away
• Chaupanki 4.50 km away
• Gwalda 5.20 km away
• Khorikalan 2.00 km away
• Sarekalan 5.50 km away
• Ghatal 6.50 km away
• Khidarpur 4.00 km away
• Godhan 3.00 km away
• Chuharpur 10 km away
• Mayapur 3km away
We have carried out a detailed
environmental impact study in order
to measure and avoid the impact
of our process and operation on
the protected areas and reserved
forests. The study findings illustrated
no negative impact on the native
flora and fauna.
41Sustainability Report 2011-13
As stated in our previous Sustainability Report, we have achieved significant progress in developing our business portfolio
and scale of operations. We generated profits even during turbulent times, thereby demonstrating our strong industry
leadership, uncompromising service and product quality and long-term relationship with clients.
Description Achievement in 2011-12
Achievement in 2012-13
Production of refrigerants (ton) 15,058 13,974
Production of chloromethanes (ton) 37,972 41,169
Productionoffluorospecialtyproducts(ton) 1,628 1,888
Product-wise sales (INR million)
HCFC22+HFC134a 4,158 3,007
Chloromethanes 733 591
Fluorospecialities chemicals 1,406 1,669
By product sales Amount (Ton)
Revenue (INR million)
Amount (Ton)
Revenue (INR million)
Gypsum 37,440 33 36,443 32
Hydrochloric acid 72,791 80 69,633 58
Sustainable Economic Growth
4 The global economy is facing challenging times. This has impacted industrial performance, growth, bilateral
relations and international trade. For sustainable growth there is a need to overcome this crisis. Our short- and
long-term strategies aimed at offering sustainable products, ensuring inclusive human capital growth and
infrastructural development, are testimony to our commitment to sustainable economic growth.
Our strategic focus on achieving operational
pinnacles surfaces from our investments
in R&D. We also made significant internal
changes in the governance structure, leading to
separating the Fluoro Chemicals and Specialty
Chemicals Businesses to be led by individual
CEOs. This has fuelled the pace of innovation,
with the teams achieving remarkable milestones
during the reporting period.
During 2011-12, the pilot plant at Bhiwadi was
used to generate data to scale up laboratory
process to the commercial level of 9 different
products. The pilot plant is also producing
quantities for trial batches at our customers’ end. Based on processes
developed in-house, three commercial plants have been set up and
are operational at our new site at Dahej in Gujarat. We take pride in the
fact that all our new plants in Dahej are being designed and executed
with in-house technologies, a huge testimony to the R&D and project
implementation capability developed over the years.
In the coming years, we expect to derive value from the new chlorinated
solvents being manufactured at our facility in Dahej. In addition, a new
HFC 134a/125 plant in Dahej is expected to be commissioned by
2013-14. The upcoming plant is backward integrated with a global-
size HF plant to meet the production need. In Specialty Chemicals, the
business is expected to expand horizons and the range of specialty
products coming out of Dahej.
42 43Sustainability Report 2011-13SRF Chemicals Business
Summary of Progress in 2011-13
TargetProduction Capacity*
Progress
Increasing the Choloromethanes plant capacity
50,000 TPA The capacity expansion, being a capital intensive process, was initiated in 2009-10. Accordingly, we have obtained statutory clearances (like Environmental Clearance). However, the actual expansion of production capacity is a function of various internal and external factors. Considering the volatile market conditions, the capacity enhancement projects have been suspended temporarily.
Increasing the HFC 134a plant capacity
12,000 TPA Our manufacturing unit at Bhiwadi has reached the maximum limit for further expansion, considering the limited availability of land and other resources. Therefore, our new manufacturing unit at Dahej was commissioned in 2012-13, where additional capacities for both HFC 134a and Fluoro Chemical products are in various stages of operation. Since the Dahej unit is not under the current report’s boundary, details of production capacities at the new location are not being reported currently.
Increasing the fluorospecialtiesplant capacity
3,000 TPA
*AspertheapprovedEnvironmentalClearanceobtainedbySRF-Bhiwadi
During the reporting period, we had achieved significant operational efficiency by de-bottlenecking our P3 plant. The P3 plant
was commissioned in 2004 with capacity of 4.2 MT/month, subsequently increased to 6 MT/month. From the business and
economic growth perspective, there was significant unmet demand for increasing production. The only solution in this situation
was to obtain higher throughputs through the existing production infrastructure, and resort to de-bottlenecking of the plant.
In order to meet market demand of about 8 MT/month consistently, we carried out a comprehensive de-bottleneck study
and accordingly taken multiple initiatives including replacement of equipment, process changes, time mapping and time
cycle study. With successful implementation of these initiatives, we have improved the yield and batch cycle timing and now
produce over 8 MT/month.
Development of New Refrigerant Grades
The idea to develop new grades of refrigerants occurred to us when an old and key client persistently requested us to supply
PTFE grade HCFC 22. Our internal teams evaluated the request, assessed its feasibility, made the required design changes
and executed the project. Although this was on a pilot scale, we realised that there is significant demand for PTFE grade
HCFC 22, and our existing customers would prefer this product from us. It was our customers’ long-standing trust on our
product quality that compelled us to introduce a different grade of refrigerant.
We undertook a detailed scale-up feasibility study and identified the challenges in undertaking this project at a larger
scale. Three out of eleven quality parameters set out by the client were not being met due to impurities in the product co-
generated in the process itself. We evaluated a number of options to address this issue, ruling out technically infeasible
and cost-intensive solutions to come up with process optimisation solutions. Eight different scenarios were simulated
by varying parameter concentrations and process changes. As a result, we have successfully implemented a detailed
solution for developing high quality PTFE-grade HCFC 22, which is being supplied to other interested customers as
well. We attribute the success of this experiment to long-standing relationships with customers, and the efficiency of the
process teams that designed an effective solution. The learning of TQM implementation was effectively put to use where
every employee worked towards delivering quality output to clients.
Developing New Refrigerant Blends (as QCDSM improvement initiative)
In line with our commitment to phase out HCFC 22 by 2030 for refrigerant purpose, we have stepped up to find feedstock
applications of our HCFC 22 as well as suggest suitable refrigerant substitute to our customers using HCFC 22.
Accordingly, HCFC 22 product quality has been improved to make it suitable for PTFE production on one hand and on
the other hand, in-house technology-based TFE manufacturing plant has been established at our Dahej site to consume
HCFC 22 as feedstock.
Through an intense technical study, it was proposed that HCFC using machines could be successfully retro-fitted with three
blends – R 410a, R 404a and R 407c.
Accordingly, business has developed the capability to supply the full range of these blends. In the reporting period, we
introduced R 410a, R 404a and R 407c in the Indian market.
This has helped us strengthen our relationship with existing customers, opened up new markets for our business, and
contributed to the economic growth of our suppliers.
Public PolicyThe company participates in public policy advocacy through memberships at industry associations, including FICCI, CII and
ASSOCHAM. Additionally, key employees hold responsible positions in the special committees of these associations. For
instance, H S Dua is a member of the sub-committee on CSR at CII, as a certified assessor for CII-ITC Sustainability Awards.
Improving Operational EfficiencyImproving operational efficiency is an integral element of our contribution
to sustainable economic growth. New product development, de-
bottlenecking, new grade development and QCDSM modifications are
the four cornerstones of our strategy. We have discussed our research
and development initiatives, and updates on new product development in
the ‘Responsible Product Development’ section.
During the reporting period, SRF and the Indian Istitute of Chemical Technology (IICT), Hyderabad, together organised the
first India International Symposium on Fluorine Chemistry (IISFC) from 20th to 24th Feb, 2012.
The first-of-its-kind symposium saw a congregation of more than 150 delegates and speakers from 13 countries including
USA, UK, Germany, Canada, Russia, Japan, S. Africa, Singapore, France, Italy, Hungary, etc.
The inaugural address was given by Ashish Bharat Ram, MD, SRF Limited, where he said, “It is necessary for our future
well-being on this planet that we protect our environment, particularly the Ozone layer, and that we conserve our energy
and resources. The importance of Fluorine is not limited to refrigerants anymore; it is now being well accepted in the field
of pharmaceuticals and agrochemicals. Over the last decade or so, a lot of work has been going on in this area and it is
clear that the technical capability that exists in India will continue to grow for many years to come.”
De-bottlenecking
Debottlenecking is the process of increasing
throughput by identifying and eliminating the
limitations in individual equipment. This involves
process simulation studies and trial runs to
identify and overcome bottlenecks.
45Sustainability Report 2011-13
Our employees play a key role in translating strategic plans into reality. We assign high value to our human capital and
constantly endeavour to deploy employee engagement initiatives, invest in their learning and development. While the policies
and processes related to senior management are handled at the SRF Group level, the well-being of middle management to
contractual labour is administered by the Chemicals Business HR department. Therefore, specific policies pertaining to our
nature of business are launched and regularly reviewed, leading to improved employee satisfaction quotients.
Parameters 2011-12 2012-13
Employees <30 yrs 30-50 yrs >50 yrs Total <30 yrs 30-50
yrs >50 yrs Total
Senior management 0 12 5 17 0 11 5 16
Middle management 1 18 3 22 1 17 5 23
Junior management 19 45 6 70 19 46 7 72
Non-management workers 183 278 30 491 159 292 29 480
Contract workforce 372 311
Contractual labor 197 186
Total employees 1,169 1,088
New joinee employees <30 yrs 30-50 yrs >50 yrs Total <30 yrs 30-50
yrs >50 yrs Total
Senior management 0 0 0 0 0 0 0 0
Middle management 0 1 0 1 0 0 0 0
Junior management 7 3 0 10 7 3 0 10
Non-management workers 31 19 0 50 36 13 0 49
Total new joinee employees 61 59
Employee Engagement and Development
5 Four out of the fourteen principles of Quality professed by Prof. W. Edwards Deming emphasise employee
participation in Total Quality Management. At SRF, we view employees not only as an integral element of our
quality management process, but as a critical lever for achieving accelerated business growth.
During the reporting period, our human resource function
has contributed in a significant manner and proved to
be a true strategic partner to the organisation. Some
important initiatives during this period include revamping
of the Performance Management System, overhauling of
the People Development System called the Development
Dialogue, and creating a mechanism for provision of better
growth opportunity to employees. Through these initiatives,
we have been successful in minimising our attrition ratios.
We believe in diversity and strictly enforce policies
and procedures against racial, religious and gender
discrimination.
A significant portion of the non-management staff has
attended rigorous SA8000:2008 training, covering the
basics of human rights, discrimination and harassment.
9.52
12.27 11.17
11
FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13
Employee Turnover (% of total workforce)
46 47Sustainability Report 2011-13SRF Chemicals Business
Also, there were no instances of child labor, forced labor, discrimination, sexual harassment or any other violations of human
rights during the reporting period. There were no incidents of industrial unrest either. Furthermore, the reporting period was
identified as a period of change. Some of these include introduction of horizontal and vertical promotions, improvements in
new hire attraction and retention processes, and launch of IT-enabled HRIMS for non-management workers and design of
values consequence management systems.
Summary of Progress in 2011-13
Target Yearly target Progress 2011-12
Progress 2012-13
Employee turnover (%) <10.00% 11.17% 11.00%
Unplanned absence (% of available man-hours of work) <1.00% 1.1% 0.9%
Training manhours per employee per annum 40.00 37.07 35.27
Skill enhancement of junior management –transition from ‘beginner’ level to ‘skilled’ level (%)
10.00% 10.68% 13.17%
Employee satisfaction (%) 75.00% 71.00% 72.00%
Overall happy employee (%) 95% 98.00% 98.00%
Needs Assessment and Development Plans
Every year, we conduct employee needs assessment and prepare development plans that largely align to our business
objectives, employee skill set, personal developmental goals, areas of interest and needs. During the reporting period, it was
observed that employees at different departments across hierarchy levels have unique development needs, as illustrated below.
The policy improvements, trainings imparted and reward programmes are customised to these needs, and reflect these trends.
SegmentAwareness on human
rights
Technical Training
Training on soft skills
Health & safety trainings
Grievance redressal
Special policies Rewards
Sr. mgmt 4 4 4 4 4
Mid & Jr. mgmt 4 4 4 4 4 4 4
Scientists 4 4 4 4 4 4 4
Field staff 4 4 4 4 4 4
Workmen 4 4 4 4 4 4
Contract labour 4 4 4 4
The management does not recognise any formal collective bargaining agreements in the manufacturing facility, which is a
re-statement from our previous Sustainability Report. However, we ensure that we do not restrict the freedom of collective
bargaining. For this, we have set up employee engagement mechanisms through which employee/contractor feedback is
sought on a periodic basis. Some of our important policies and employee engagement mechanisms include:
It can be observed that a large portion of needs are
concentrated towards middle and junior management,
scientists, field staff and workmen. These needs are
thoroughly addressed by the SRF-CB HR team’s
initiatives. The policies, procedures and trainings for senior
management are supervised by the SRF Group’s HR team
and implemented as a group-wide practice. The needs of
contract labour are addressed through coordination with
the Contractor, with whom we enter into an agreement. At
the time of engaging the contractor, we inform them about
the Company’s procedures, stance on anti-discrimination
and human rights violations.
“I participate in the Red book meetings
daily. Voicing my concerns as and
when they arise helps me focus my
attention on work.”
- Kunwar Pal, Jr. Engineer, EHS
• People Red Book manual for Grievance Redressal: There is an
effective grievance redressal mechanism in place implemented
through a ‘People Red Book Register’ which captures, addresses
and resolves all employee-related complaints and needs. The register
consists of a people Red Book manual which lists out the complaint
handling process. The process involves collecting complaints,
classifying them into complaint or need, assessing its validity and
impact followed by its resolution, closure and status update in the
Red Book register. Modes of seeking feedback encompass:
º Departmental meetings
º E-communication
º Personal interaction with employees
º Complaint registers and TIE (Total Involvement of Employees)
Group meetings
• Self education subsidy: The Business seeks to nurture high
quality man-power through provision of self education subsidies
to its employees.
• Other benefits include house related
allowance benefits, frequent health
checkups, scholarships and discount on
fee for children of employees, canteen
and transport subsidies. In terms of loan
subsidies, the Company provides company
loans, consumer durable loans and housing
loan subsidies to its employees.
• Commitments under SA8000:2008: SRF-CB has received the SA8000 certification and all its management systems
are in line with SA8000 mandate enabling it to screen its contracts on various human rights aspects, child and forced
labor, freedom of association, discrimination, disciplinary practices, working hours and remunerations. All its operations
are subject to human rights reviews in line with SA8000 procedures.
• Policy against Sexual Harassment has been put in place to ensure all employees work in an environment free from all
forms of sexual harassment.
• Work’s Committee has been instituted under the provisions of Industrial Disputes Act, 1947 to resolve disputes with
factory workers.
48 49Sustainability Report 2011-13SRF Chemicals Business
Skill Enhancement through Training
Our skill enhancement approach involves a combination of developmental assignments, cross-functional teams, class room
training, coaching on-the-job modules through skill matrix and participation in external programmes to enable employees to
continuously learn and develop their capabilities.
Type of Training Program Theme/Topics (Illustrative)
ERP/IT Skills Basics of Computer operations, software tools like EAM, MS office and Oracle Apps
EHSDetailed information on the latest industry trends in process safety, General Safety Awareness and Emergency Response Training (ERT)
TQM Basics of TQM, PSP Training, TIE Training, SA8000 and HIV awareness programs
Technical Basics of chemical engineering, PLC, Gas chromatography, seal and pump maintenance
Marketing & sales Presentation Skills, Business Writing and Negotiation Skills and Accounts management
Commercial Information on Service Tax, VAT and TDS
Soft skills Personality Development and Communication Skills
Capability Building through Use of Models – Learning Center
Our operations involve closed-loop processes and closed equipment. In
order to appraise our engineers and operators on further information and
provide them with hands-on experience, we have prepared models of
our manufacturing units, in-house. Beginning on a small-scale in 2008,
we now have 16 models of various processes in a full-fledged Learning
Center, which has become the center for all trainings. This Learning
Center has been very successful in imparting skill-based training. This is
undertaken with the help of visual methods (transparent models showing
internal functioning of plant equipment), models made by employees of
respective departments by usage of scrap material. Training is imparted
using these models and enhancement in skill is monitored by the skill
matrix system. This type of learning center is unique to our plant. New
employees seldom get an opportunity to see plant equipment from inside
or understand their functioning in detail. This is made possible through
these educative and effective trainings which help them take charge of
their function quickly.
TIE Groups (Total Involvement of Employees)
Due to hazardous nature of the plant, all process modifications require
technical validation. No individual can make a process change by
themselves. Our TIE groups are cross-functional teams (unlike Quality
Circles) covering 100% employees. These teams identify equipment
problems and address them. Each group is facilitated by an officer. TIE
is a part of our daily management at the shop floor. The group meets
daily for 20 minutes for 5S and autonomous maintenance during normal
working hours at the start of the day. This enables rapid implementation
The training needs of security personnel are fulfilled by the
security agency, with which SRF signs a contract for security
services. The agency provided 846 hours in 2011-12 and
945 hours of training in 2012-13 to security personnel
deployed at our manufacturing facility in Bhiwadi. We ensure
that the security supervisor receives formal training from
SRF on human rights concerns, mechanisms to deal with
violations and reporting procedures. This supervisor in turn
provides inputs to the security personnel on these aspects.
During the reporting period, we had taken a target of
ensuring 40 man-hours of training for every employee.
Through diligent efforts and timely record-keeping, we
could provide an average of 35.27 hours of training
per employee in 2012-13. However, this man-hour
estimation includes only formal, documented classroom
trainings where attendance is recorded by a department
representative or HR person. During the reporting period,
we had conducted extensive developmental activities like
guest lectures, tool box talk, flash discussion sessions, ad-
hoc training sessions regarding TQM implementation. Two
major learning initiatives include activities of the Learning
Center and TIE group interactions.
of good ideas. Periodic audits are conducted
and best performing groups are recognised.
TIE groups promote culture of identifying and
implementing the improvement ideas at the
lowest level.
Reward and RecognitionAccording to the Company policy, all
confirmed employees are covered under the
performance appraisal system. This policy is
diligently implemented in the Company, and
every employee undergoes the full cycle of
performance appraisal, beginning with goal
setting, review, mid-term review and year-end
review. During the reporting period, the HR
department also executed several initiatives in
the form of employee rewards to promote overall
employee satisfaction. These activities include:
• Celebration of festivals, employee
birthdays and important events
• ‘Protsahan’, a system to recognise and
acknowledge employee contributions and
good behavior
• Extended employee benefits –
Performance awards, spot recognition,
team and individual awards and long
service awards
• Employee recognition through
various modes and means – letters of
commendation, mementoes, publication
in internal magazines, award of
scholarships, or issuance of certificates
• Contract labour reward
51Sustainability Report 2011-13
Occupational health and safety is a top priority for us. Our operations
involve extensive handling, use and transportation of hazardous
chemicals, and therefore providing a safe work environment to
all employees is a real challenge. Being a REACH compliant and
Responsible Care certified company adds to our EHS responsibilities.
Addressing health and safety risks at the workplace reduces lost time,
reputational risks associated with accidents, and helps in creating a
culture of safety within the organisation.
Environment Health and Safety
6 Owing to the nature of our business, the Bhiwadi manufacturing
unit is classified as a Major Accident Hazard (MAH) Unit.
This classification is based on the quantity and hazard of
chemicals handled at the unit. With the economic growth, the
quantity has increased manifold, so has the associated hazard.
In order to minimise the hazard vulnerability and probability at
the unit, we have adopted a management goal to maintain an
Accident Frequency Rate that is more stringent than the widely
accepted Chemical Industry Global Benchmark. Our internal
goals are <0.50 injuries/million man hours worked for Safety, and
maintaining ‘Zero’ liquid effluent discharge.
We constantly integrate health and safety concerns into our business operations. Our thrust on embedding safety as
a culture is clearly evident from regular external benchmarking, audit feedback and review of our Occupational Health
and Safety (OHS) practices. Maintaining the robustness of existing management and reporting systems, enhancing the
awareness of our employees through continuous training and benchmarking safety performance with industry best practices
are major thrust areas for us. We classify injuries in line with standard practice into five categories, namely reportable fatal
accident, reportable non-fatal accident, poisoning or occupational disease, minor injuries and first aid case.
Summary of Progress in 2011-13
TargetTarget
(2011-12)Actual
(2011-12)Target
(2012-13)Actual
(2012-13)
First aid injuries 24 34 30* 29
Minor injuries 7 7 6* 3
Reportable fatal & non-fatal injury, poisoning or occupational disease
0 0 0* 0
EHS training to employees (training man-hours per employee)
12 8.25 12 10.25
EHS training to contract workers (training man-hours per contract worker)
10 7.68 10 10.62
* Targets are set at 10% reduction from previous year’s actuals
52 53Sustainability Report 2011-13SRF Chemicals Business
EHS ModelWe ensure that safety systems are well followed
at all sections of the unit, beginning with
transportation of raw materials to manufacturing
and dispatch of finished goods. Since our
chemical plant has inherent risks, the safety
system encompasses safety not only in design
but also safety in terms of adopting operational
measures that reduce risk. We reduce risk in all
our hazardous activities up to a moderate level
through various measures encompassing:
• Technological measures
• Operational measures
• Personnel capacity building; and
• Monitoring and measurement
EHS Governance Structure
During the reporting period, there were 9
active Environment, Health and Safety (EHS)
Committees. We have instituted an Apex EHS
Committee and Statutory Committee at plant
level, and seven Area EHS Committees at the
Department level to manage EHS issues across
the Company. These committees meet regularly
to work on agendas related to health and safety.
Indicative focus areas include accident evaluation,
health and safety inspection reports, causes and
preventative actions for unsafe situations.
Our EHS model ensures adequate
representation from all levels of employees
and provides a platform to actively participate
in EHS improvement programmes by raising
issues. Over time the EHS models have evolved
and now include several aspects like
• Specialty Chemicals plants added with
own design
EHS PerformanceOwing to the robustness of our EHS model and diligent
implementation, we have witnessed no lost days, fatality or
reportable injury during the reporting period. We have successfully
completed 6.9 million reportable accident free man-hours from
29th July 2010 to 31st March 2013. We are continuing our
performance in this aspect, and our target is to achieve 10 million
accident free man-hours. Our previous best performance was
5.71 million accident free man-hours (from 14th May 2002
to 15th Jan 2006).
We endeavour to continuously modify and update our health and
safety practices on the basis of our own experiences as well as our
learning from industry peers worldwide. Due to our diligent efforts
in improving the awareness levels of employees we have achieved
EHS TrainingsCarrying forward our commitment to the implementation of robust EHS systems, we conduct regular trainings for plant
personnel, encompassing class-room and practical trainings. Apart from standard EHS practices, we ensure that before
deployment of employees and contract workers on job, the following steps are undertaken:
Additionally, contract workers are graded as green, red and yellow,
signifying the hazardous nature of the process they will handle, wherein
green signifies non-hazardous processes, red means hazardous
processes and yellow is exclusively for workers working with the most
hazardous chemical, Chlorine. Based on this grading, each group is given
specialised training. This is to ensure that all contract workers deployed at
a particular process have acquired requisite EHS skills.
“I got the award for reporting highest
number of near-miss incidents. I’m glad
that the company appreciates my nature
of giving attention-to-detail which is
making our workplace friendly and safer.”
- Rai Singh, Jr Engineer, Utilities & Employee Representative
2008-09 2009-10 2010-11 2011-12 2012-13
0.85
0.43 0.34
0 0
Reportable Accidents - Frequency Rate (FR)
2009-10 2010-11 2011-12 2012-13
6
1.7 2.3
1.1
Minor Injuries - Frequency Rate (FR)
2009-10 2010-11 2011-12 2012-13
11.1
14.2
11.5 10.3
First Aid cases - Frequency Rate (FR)
Health Check-up Classroom training & test Practical training & test
Deployment at work
reportable accident-free man-hours of 2,946,566
and 2,814,168 in FY 2011-12 and FY 2012-13
respectively, with zero fatalities over the past 10
financial years.
Reportable Accident – Frequency Rate
Reduced reportable accident frequency rate to 0 in
2011-12, and maintained it there in 2012-13. This is
our best performance since the past 8 years.
• Emergency Response Team
• Cross functional system for authorisation of all process changes
(Engineering Work Request – EWR)
• Visual EHS gallery for contract worker training
• Certification of employees by British Safety council
Apex EHS
committee
Statutory EHS
committee
Area EHS committee
(7 committees)
Chairman - HODsMembers - Representatives from all depts.Meeting - Bi-Monthly
Chairman - Head of WorksMembers - HODs and Nominated EmployeesMeeting - Quarterly
Chairman - CEOMembers - Head of the department (HOD)Meeting - Six Monthly
EHS Governance Structure
EHS Model
Direct involvement till lowest level in EHS management and monitoring from the top
54 55Sustainability Report 2011-13SRF Chemicals Business
Health and Safety Best PracticesOur commitment to Health & Safety is also translated into action; We have an EHS Director whose sole responsibility is to
oversee health and safety performance of the Company. We have also incorporated an assessment of potential hazardous
operations and applicable safety standards in new process development:
Award for Near Miss
Reporting
• In order to bring EHS practices to the next level SRF
has introduced a ‘Near Miss Reporting System’
encouraging employees to report such cases in order
to ‘Nip the issues in the bud’.
• To promote this activity further SRF has come out
with two awards - one on ‘Highest number of Near
Miss reported by the individual’ and the second one
for the ‘Best Near Miss reported’
Employee engagement
on matters related to
Health & Safety
• As part of our regular Health and Safety promotional programme, the 42nd National Safety Week was
observed in March 2013
• Various safety contests and sessions were organised to increase awareness and instill its importance for
the company and the individual
• During the National Safety Week 430 employees in FY 2011-12 and 523 employees in FY 2012-13
participated in various safety contests
• The World Environment Day is celebrated annually, to spread awareness of the need to take positive
environmental actions
• We also celebrate other important EHS days like Fire Service Day and Ozone Day
Introductory course
from British Safety
Council
During 2012-13, 96 more employees were certified by the British Safety Council (BSC) in the area of Health
and Safety knowledge, post clearing the written examination: an internationally recognised credential. Till
date 279 employees have been certified by the BSC for level 1 safety knowledge. We are also planning the
next level certification for existing certified employees.
Incident investigation
analysis
The EHS department proactively undertakes internal benchmarking and extensive incident analysis to identify
patterns and key areas of concern. Material observations are taken up by the top management, subsequent
to which required changes are introduced into the EHS implementation system. In order to formalise these
activities, we are in the process of preparing an exhaustive procedure for carrying out in-depth root cause
analysis and design action plans for bringing down safety incidents to next minimal level.
Launch of 24 new SOPs
to strengthen EHS
systems
It is standard practice at our manufacturing unit at Bhiwadi to conduct proactive benchmarking activities
with global best practices. In one such internal process, it was identified that there were gaps in the
existing EHS practices. In order to immediately bridge this gap, 24 new EHS SOPs were launched, taking
guidance from various industry leaders.
Capacity enhancement
and Technology
upgradation of STP plant
The existing Sewage Treatment Plant was designed and installed as per the applicable rules at the time
of commissioning of the Bhiwadi manufacturing unit. It has the design capability to maintain less than 100
ppm of BOD ( Biological Oxygen Demand) in treated water. A recent revision in the Environment Protection
Act mandated that the applicable BOD limit be 30 ppm.
It was technically infeasible to bring down the BOD level of the existing STP plant from 100 to 30 ppm.
Therefore, the STP technology was upgraded to ensure regulatory compliance.
Deviation intimation slip
We follow a stringent ‘Safety Deviation’ procedure, wherein employees deviating from safety requirements
are dealt with severely. In order to avoid incidents and injuries, we ensure repetitive deviations are avoided.
Based on the severity of the deviation and the number of times repeated, employees are reprimanded with
warnings and penalties, to the extent of including this as criteria for performance evaluation.
Chemical Weapon
Convention,
International
On 10th Dec 2011, a half a day awareness programme on ‘Chemical Weapons Convention’ was conducted
at the Bhiwadi factory premises by the Indian Chemical Council (ICC) in association with Department of
Chemicals & Petrochemicals and Ministry of Chemicals & Fertilizers, Government of India.
Chemical Weapons Convention is a universal non-discriminatory, multilateral, Disarmament Treaty, which
bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons.
Fluorine chemicals are also classified under the convention, albeit as low impact chemicals. A total of 40
participants from various chemicals companies attended the programme.
Responsible Care Management SystemWe have been recertified for Responsible Care by Indian Chemical
Council, which establishes organisational commitment for improving
health, safety and environmental performance. We are one of the only 17
Indian companies which have been allowed to use the Responsible Care
logo. We are proud to say that we have retained this honor since 2006,
and have obtained third recertification in January 2013, post the audit by
the ICC panel.
The Responsible Care management system is implemented around the
key pillars of the management system, encompassing:
• Process safety
• Employee health and safety
• Emergency response
• Pollution prevention
• Distribution
• Product stewardship
Moving up the Safety Ladder through External Audits
As a part of the benchmarking process, against leading international
safety standards, we regularly organise external safety audits to study
the impact and effectiveness of our efforts. During the reporting period,
we hosted stringent external safety audits as per IS:14489 standard. In
2011-12, the audit was conducted by Chillworth Global, a leading global
safety consultant and in 2012-13, it was conducted by Environment
Quality Management Services. As an outcome, 44 process improvements
have been made during the reporting period.
Most of our customers conduct frequent audits at the manufacturing unit,
in line with the supplier safety requirements of their companies. We have
always displayed highest levels of performance in these audits, and have
received awards for being the best supplier from Syngenta and Bayer
Crop Sciences.
Propagating Practical Knowledge on Occupational Health & Safety
Several employees have delivered key note addresses and chaired
awareness sessions on the topics of occupational health and safety. This
is on account of our exceptional performance in this area, which provides
numerous opportunities for replication at other companies/locations.
• Rajiv Marwah on ‘Responsible Care Implementation and
Monitoring’ at ICC in August 2011
• HS Dua on ‘Sustainability and CSR – Prospective and Best
practices’ at the ICC Seminar on CSR on 1st June 2012
• Himanshu Shukla on ‘Accident
Investigation Analysis and Report, A case
study’ at the National Safety Council,
Rajasthan Chapter, Jaipur on
11th August 2011
• Himanshu Shukla on ‘Fire detection and
control system – Selection, Inspection
and Maintenance’ at NSC programme in
October 2012
• Himanshu Shukla on ‘Sustainability &
Environment, Health and Safety – What is
the connection’ at a CII Session on Best
practices in EHS Management, Gurgaon
on 20th February 2013
• Himanshu Shukla on ‘International Day
for preservation of the Ozone Layer’ at
the Rajasthan Pollution Control Board,
Neemrana Manufacturing Association on
16th September 2011
21
36 38
2010-11 2011-12 2012-13
21
36 38
2010-11 2011-12 2012-13
Near Miss Reporting (Numbers)
57Sustainability Report 2011-13
We adopt an extensive multipronged procedure for responsible product development, by considering regulatory
requirements, global developments in chemistry, market movement, customer feedback, and comprehensive internal
research. Our business decisions are constantly reviewed to suit customer requirements, environmental concerns and
community well-being, which is reflected in our approach to product development, process design and management
system implementation.
New Product DevelopmentChanging regulatory scenarios, international collaborations and progressing knowledge is transforming the way
companies use chemistry. We are currently the domestic market leader for refrigerants in India. We further aim to achieve
market leadership in HFC blends and intend to start developing new generation low GWP refrigerant (HFO 1234yf) to
meet emerging requirements of car OEMs globally. We are in the process of planning the phase out of HCFC 22, in view
Responsible Product Development
7 International environmental agreements aimed at protecting the Ozone layer through phase-out of ozone
depleting substances have significant impacts on business sustainability. The Montreal Protocol,
signed in 1992 required us to gradually phase out the manufacturing and sale of major products.
Beginning with CFCs (R 11 & R 12), moving on to HCFC 22 and subsequently CTC, the Chemicals Business has
devised an exit strategy for these product offerings. In line with India’s commitment to Montreal Protocol,
we phased out the production of Halon in 2003, R 11 & R 12 in 2009 and CTC in 2010. Our responsible product
development initiatives thus began with exploring countermeasures to the threat of business closure and emerged
as an opportunity to launch innovative products and enter new markets.
of which we are launching many new products in India. In partnership
with the Indian Institute of Chemical Technology, Hyderabad, we have
developed process technology for HFC 134a. This commercial plant is
setup based on in-house technology, making us India’s first and only
company to manufacture and sell this ozone-friendly refrigerant gas in
the country.
We have significant investments in the R&D facility and are expanding
capabilities to synthesise new chemicals as per customer requirements.
We are also diversifying the product portfolio into non-fluorine
compounds and related products. For products and formulae that are
already under commercial production globally, we rely on internationally
published data on life cycle impacts.
Strengthening Customer Relationships Our significant customers include OEMs, dealers and multi-product
chemical companies. Our organisational emphasis on Total Quality
Management leads to proactive communication with customers
to build trust and achieve the highest levels of satisfaction. We
continuously seek formal and informal feedback, significant
comments derived out of which are documented and considered for
remedial actions.
For our Fluoro Chemicals Business, we conduct satisfaction surveys of
OEMs and distributors. The survey includes product quality, packaging,
logistics, service and competitiveness as elements, and is done on a
58 59Sustainability Report 2011-13SRF Chemicals Business
5-point scale. Survey results done during the reporting period indicate that customers are largely satisfied with the quality
of our products. For our Specialty Chemicals Business, customer satisfaction surveys were first launched in 2010-11,
using a 100-point scale. Since then we have been undertaking these surveys on an annual basis. Selected major customer
feedback and corrective actions are indicated below:
Customer feedback Corrective action
Fluoro Chemicals – 13 complaints in 2011-13
Quality of packaging may be improved
to reduce leakage of Floron cans
New packaging material, cap size, transportation methods were launched as
described below. The number of complaints has significantly reduced since this
initiative
Need for new-age refrigerants/absence
of 4th generation refrigerants
New product development team has already initiated work on 4th generation
refrigerants. New products will be launched as soon as significant break-
throughs are achieved
Product size and quantity; request for
launching 500gm cans for Floron
Achieved an optimum solution to ensure customer satisfaction and maintain
regulatory compliance and launched 450 gm cans in compliance with regulatory
requirements thereby adhering to requirements of both stakeholders
Improve the availability of products
during peak summer
Achieved increased production and throughput by debottlenecking significant
processes. Enhanced availability of products as per seasonal requirements
Specialty Chemicals – 1 complaint in 2011-13
Request for more technical information
from dealers on product range
Undertook training and capacity building programmes for dealers on the end
use of specialty products, which are technical in nature
Launch of New Packaging for Floron Cans
A significant feedback received during the reporting period was regarding the insufficient/inappropriate packaging used for
our 340gm cans of Floron product. For this, we had taken a target of developing new packaging material/caps for Floron
cans. Customers pointed out there was extensive leakage of the product, in spite of undertaking packaging with precision.
We immediately identified the causes and solutions for this problem.
Cause & Solution Result
Cause
Unable to adjust crimping head movement as required.
Solution
• Explored various options and vendors for procuring caps
• Undertook design changes
“Differentiating different
sizes of Floron boxes is so
easy. I love working for SRF
as it takes care of the basic
yet critical requirements of
contract workers as well!”
- Contract worker who lifts Floron boxes for loading to vehicles
Responsible MarketingBeing the market leader in refrigerant products in the country entrusts
us with certain implicit responsibilities. As the single largest supplier of a
variety of products, we interact with various customers, dealers and end-
users to identify safety hazards and health concerns. It was observed that
the market was flooded with spurious refrigerant products, resulting in
serious safety hazards and undesirable consequences.
We realigned our marketing strategy to incorporate customer awareness
as an integral element of our advertising campaigns. As a result of this,
we published a series of public interest statements in leading chemical
newsletters illustrating the consequences of using spurious products,
resultant long-term damage to equipment, recent real-life case studies
and mitigation measures to be taken before purchase. We engaged
with customs officials at leading air and sea ports, communicated
the test results of various products and provided them with access
to SRF’s testing facilities for identifying spurious refrigerants. Written
communication, tips to identify spurious products or adulteration were
also shared subsequently. Through these initiatives, we have witnessed
significant reduction in the circulation of spurious products in the
market. We will strive to continue making our marketing practices more
responsible and oriented towards customer benefit.
Responsible Packaging and LabelingWe are responsible in our practices for displaying product information and
labeling. Product information is displayed as per regulatory requirement
in the Material Safety Data Sheets. We use an Emergency Response
Guide 2004 for product codes and labels as regional requirements for all
our national and international markets. Safety
and awareness of transporters and users
during transportation is ensured by providing
them with Transport Emergency Cards for both
domestic and international consignments.
During the reporting period, we encountered
a case of legal non-compliance with respect
to product labeling. In Jan 2013, a Legal
Metrology Officer, during a surprise visit to one
of our retail counters checked the Floron cans.
He identified that the retail price declaration
on the cans was not in compliance with the
Legal Metrology Act, to which effect a notice
was issued to us. As per Rule 2(l) of the Legal
Metrology Packaged Commodities Rule 2011,
every article should display the Maximum Retail
Price in the prescribed manner ‘MRP – Inclusive
of all taxes’. Our cans had displayed MRP as
‘Rs. 425/-’. This matter was discussed with
the legal department and the entire packaging
material and practice of cans was changed to
incorporate the following changes
• MRP printed on the cans was corrected
to ensure regulatory & legal compliance
• Proactively, the MRP was printed on the
inner cartons of Floron boxes
Before After
1.41
0.2
Crimping Leakage (defects%oftotalfilling)
Cause & Solution Result
Cause
Difference in the shape of gasket and the mouth of the can.
Solution
• Explore various options and vendors for procuring caps
• Undertook significant changes in gasket dimensions Before After
1.5
0.01
Gasket Leakage (defects%oftotalfilling)
60 61Sustainability Report 2011-13SRF Chemicals Business
• Proactively, an additional label, ‘Packaging
meant for transportation’ was placed on
outer carton of Floron boxes
With the implementation of the above changes,
the notice was responded appropriately with
submission of compounding charges of Rs 1.5
lakh. We will strive to ensure that such non-
compliances do not occur in future.
Development of Local Supplier for a Critical Raw Material
Oleum is one of the major raw materials for our
HF plant. We were completely dependent on
a single supplier for meeting our entire Oleum
requirement, as there was only one manufacturer
of the product in the factory neighborhood.
There was only one other source in the region.
The lead time for procurement was 3 days,
which rendered procurement from this supplier
uneconomical due to higher expenditure on
freight. Despite best efforts of various teams, we
had reached dangerous (near stock out) levels
several times. It was also perceived that the
current supplier, on account of being the sole
supplier, occasionally displayed monopolistic
behaviour, enhancing our risks. The other
challenges in relying on a single vendor included:
• Oleum production is a corrosive process,
requiring the supplier’s plant to undergo
annual maintenance for a period of 1-1.5
months. This prolonged shut down of the
plant impacted our business operations.
In spite of negotiations with the supplier,
we continued to face sourcing issues
during the supplier plant shut down
Raw Material Sourcing Outbound Logistics Distribution Network
Domestic
• Chlorine
• Oleum
• Sulphuric Acid
• TCE
• TCAC
Imported
• Fluorspar
• Chloroform
• TCE
Domestic
• HCFC 22
• HFC 134a
• Chloro methanes
• Specialty fluoro chemicals
• By product sales
Exports
• HCFC 22
• HFC 134a
• Specialty fluoro chemicals
Domestic
• 150 dealers across the country
• 6 ware house locations across the country
Exports
• Made directly from production facilities to customers
Our supplier engagement procedures include:
• Supplier selection, evaluation and re-evaluation through
defined procedures. Dealer evaluation and registration through
defined procedures. Results, findings and key observations are
documented and available for future reference
• Comprehensive supplier contracts, regular audits to ensure
compliance to the Company’s significant policies, specifically
pertaining to human rights, health and safety
• Community partnerships or co-operatives for local procurement of
raw material, wherever possible
• Local procurement to minimise environmental impacts
Sustainable Supply ChainSupply chains form a critical element of business operations and
are managed by the procurement and strategic sourcing divisions.
We maintain supply chain sustainability through various policy
interventions, implementing controls for de-risking and promote local
suppliers wherever possible. The chart below depicts our national and
international ties with upstream and downstream suppliers along with
logistics obligations.
• Alternative modes of transport
with primary focus on reducing the
Company’s carbon footprint
• Seeking feedback regarding the
Company’s policies, nature of work and
supplies, benefits, payment terms and
other queries
We ensure that most of our significant
suppliers, as classified through our internal
policy manual include human rights clauses in
investment/service agreements. In 2011-12,
8 supplier contracts were screened against
human rights parameters, whereas 5 suppliers
underwent this screening in 2012-13.
period. Additionally, extra storage capacity required during the
supplier shut down period was a challenge.
• Owing to the hazardous nature of Oleum production, it was
challenging to convince existing Sulphuric Acid manufacturers to
create a separate facility for manufacturing of Oleum. Further lack
of additional customers for Oleum discouraged Sulphuric Acid
manufacturers from making new investments.
In order to overcome these sourcing challenges which ultimately affected
production or sometimes resulted in losses, we initiated the process
of developing a new, local manufacturer and supplier of Oleum. We
engaged with them to set up a new manufacturing unit with a capacity
of 300 MT/month. They requested for an assurance on the amount of
supply to be procured every month/year. This was a genuine concern as
we were the sole customer for Oleum procurement at that time. In order
to address this concern, we offered an annual confirmed intake of 3,600
MT to the satisfaction of the new supplier. After several discussions,
visits, meetings with the technical team of the new supplier, the
manufacturing unit was finally set up. We placed a trial order which was
fulfilled satisfactorily.Today, we have signed an MoU with them for two
years and they have been supplying us with requisite quantities of Oleum
since 2011.
Our intention to develop the local communities and to contribute
towards improving their economic status near our manufacturing units
is strengthened through this successful initiative. This is in line with our
Risk Management strategy under which we follow a practice to ideate for
innovative solutions and create mutually beneficial business propositions
between local suppliers and SRF.
GRI Content IndexReport Section
Page No.
GRI 3.1 Reporting Guidelines Reference
ReportedUNGC Reference
Remarks
Letter from MD & CEOs 6-9 1.1 Fully Statement from the most senior decision maker of the organisation
About Us 12-131.2, 2.1, 2.2, 2.3, 2.5,
2.7, 2.8, 2.10Fully
GRI Content Index
64 2.4 FullySRF-CB’s corporate office is located at Block - C, Sector - 45, Gurgaon - 122 003, Haryana, India
64 2.6 FullySRF-CB is a strategic business division of SRF Limited, a privately held company
64 2.9 Fully
During the reporting period, the company appointed two independent CEOs to lead the Fluoro Chemicals and Specialty Chemicals businesses separately. Apart from this, there were no significant changes in the structure or ownership of the company.
About the Report 4-53.1, 3.3-3.8, 3.10,
3.11, 3.13Fully
3.10 - Re-statements made in the report have been incorporated at relevant sections as applicable3.13 - The report has been externally assured by independent agency - KPMG
GRI Content Index
64 3.2 FullyOur previous biennial report was for the period from 1st April 2009 to 31st March 2011
64 3.9 Fully
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators are explained in the relevant sections of the report as applicable.
Strategic pillars for sustainability
23 3.12 Fully
About us – Corporate governance
18-19 4.1, 4.9, 4.10 Fully
Principles 1-10
GRI Content Index
64 4.2 Fully The Chair of the Board of Directors is an Executive Officer
64 4.3 FullyPage 4 of the FY 2011-12 & Page 4 of FY 2012-13 Annual report, accessible at http://www.srf.com/InvAnnualReport.asp
64 4.4 Fully
There is no formal system to provide recommendation/ guidance. However, there are certain critical issues where the Board of Directors can take a decision subject to approval by shareholders. Employees having any questions regarding application of Code of Conduct by fellow employees or organisations by discussion with superior/process owner, business HR head, Head of Works and CEO (in that order)
64 4.5 FullyRemuneration of Directors is governed by the Companies Act. Specific remuneration for Executive Directors is determined by the shareholders at the general meeting within the limits stipulated by the Companies Act
64 4.6 FullyDetails of all transactions with related parties is placed before the Board of Directors in the quarterly meeting
64 4.7 Fully
Board members at SRF-CB are some of the most eminent persons in the chemicals industry. Apart from their qualifications, their selection is determined by mandated Clause 49 of the Listing Agreement. The details are provided in our Annual Report accessible at http://www.srf.com/InvAnnualReport.aspx
64 4.11 FullyOur risk management procedures take care of essential risks to the business from various sustainability issues. The use of precautionary approach is implicit in our risk management procedures
Summary of goals and performance
10 4.8 Fully
Sustainable economic growth - Public Policy
43 4.12, 4.13 Fully
Stakeholder engagement and materiality
20-21 4.14 - 4.17 Fully
About the report – Key Financial Metrics
14 EC1 Fully
Principles 1, 4, 6 and 7
GRI Content Index
64 EC2 PartiallyThe Company identifies risks arising out of climate change, but these are currently not monetized
64 EC3, EC4, EC7 Fully
EC3 - The company provides for retirement benefits to employees in the form of the following schemes
- Superannuation Fund - Provident Fund - Gratuity fund
These benefits are provided in proportion of employees’ salaries as mandated by the regulations of Government of India
EC4 - The company has not received any significant financial assistance from the government during the reporting period.
EC7 - Recruitment currently is based purely on merit. While we do prefer to hire persons from the local community, we do not have a defined policy to that effect
Employee development 44-49 EC5 FullyResponsible product development
56-61 EC6 Fully
Community engagement and development
28-35 EC8, EC9 Fully
Responsible resource management
37-39EN1, EN2, EN8 - 15,
EN21-22, EN26, EN29 Fully Principles 7,
8 and 9Energy and climate change 25-27 EN3 - 7, EN16, EN19-20, Fully
Report SectionPage No.
GRI 3.1 Reporting Guidelines Reference
ReportedUNGC Reference
Remarks
GRI Content Index
65 EN17, EN18 Partially
Principles 7, 8 and 9
EN17 - Due to internal challenges, employee movement and change management issues, data could not be captured comprehensively, which resulted in incomplete data availability for estimating emissions.
EN18 - Due to internal challenges, employee movement and change management issues, the initiatives could not be implemented or monitored properly.
65 EN23, EN27, EN28 Fully
EN23 - There were no significant spills (spills greater than 159 litres in a single occurrence of an incident) as a result of our operations in the reporting period
EN27 - Our products require minimal packaging that does not have significant impact on the environment
EN28 - No instances of non compliance has been reported during the reporting period
Employee Development 44-49 LA1-3, LA12 Fully
Principles 1, 2, 3, 4, 5 and 6
GRI Content Index 65LA15, HR5, LA4, LA5,
LA6, LA9, LA14Fully
LA15 - In the reporting period, there was no case of employee availing parental leave
HR5, LA4 - The Company does not have any trade unions. However, the Company does not restrict freedom of association, and disputes are resolved through the “Works Committee” as per the provisions of The Industrial Dispute Act, 1947
LA5 - The Company follows the provisions of The Industrial Dispute Act, 1947 and provides 21 days of notice regarding operational changes. In the reporting period, there were no operational changes
LA6 - The company has EHS committee constituting 50% representation from the management staff and 50% worker’s representation
LA9 - As the management does not recognize trade unions, health and safety topics are covered in employment contracts
LA14 - As a policy, the ratio of basic salary and remuneration of women to men is 1:1 for each employment category.
Health and safety 50-55 LA7 FullyEmployee Development; Community engagement and development
44-49, 28-35
LA8 Fully
Employee Development; Health and Safety
44-49, 51-55
LA10 Fully
GRI Content Index 65 LA11 Partially
As a practice, we provide support for skills management and lifelong learning support to employees’ pre and post their retirement on various topics like finance management, soft skills, etc. However, these initiatives are currently not documented. We will aim to document and report these initiatives in our subsequent reports
Employee Development and About us – Corporate Governance
44-49, 18-19
LA13 Fully
Responsible product development
56-61 HR1, HR2 Fully
Employee Development 44-49 HR3, HR8-11 Fully
GRI Content Index
65 HR4 Fully There no incidents of discrimination during the reporting period
65 HR6 Fully
Our management systems established in line with SA 8000 enable us to screen our contracts on various human rights aspects – child and forced labor, freedom of association, discrimination, disciplinary practices, working hours and remunerations
65 HR7 Fully Elimination measures are implemented as per the provisions of SA 8000Community engagement and development
28-35 SO1, SO9-10 Fully
Principle 10
GRI Content Index
65 SO2 PartiallyCurrently, our risk management procedures do not cover corruption related risks across our business functions. We are planning to include these risk areas in our robust risk management framework in the future
65 SO3 Partially
Currently SRF-CB do not conduct dedicated employee trainings on the company’s anti-corruption policies and procedures. However, these topics are covered under code of conduct and SA8000:2008 Std trainings
65 SO4 FullyIn the reporting period, no incidents of corruption were reported. The company has robust policies to address such incidents. Details of the mechanisms are provided in About us – Corporate governance
65 SO7 Fully There were no cases of legal actions in the reporting period
65 SO8 FullyNo instance of non-compliance has been reported during the reporting period
Sustainable economic performance – Public policy
43 SO5 Fully
About us – Our business chemistry
12-13 SO6 Fully
GRI Content Index65 PR1,PR2, PR8 Partially
Principles 1 and 8
Currently, we do not undertake life cycle assessments of our products. We rely on third party information on life cycle impacts for major products
65 PR8 Fully During the reporting period, no such incidents were reportedResponsible product development
56-61 PR3-7, PR9 Fully
GoalsandTargets(2013-15)
Energy and climate change
Reduction in absolute electricity consumption by 3%
Sustain in Scope 1 GHG emissions at 2012-13 level
Community development
Reach 6,500 families through NRM, increase their income by INR 10,000 annually by 2015
Plantation in 1,000 hectare land
Waste Land development - 500 hectare
Responsible resource management
Reduction in waste generation by 5%
Reduction in specific water consumption (m3/MT of product) by 1%
Sustainable economic growth
Commissioning and stabilisation of new HFC 134a plant at Dahej
Commissioning and stabilisation of new HF plant at Dahej
Employee development
Sustain employee turnover below 10%
Sustain employee unplanned absence below 1% of available man-hours of work
Provide 40 man hours of training per employee per year
Increase skill enhancement of junior management (skill index) by 10%
Sustain employee satisfaction levels at more than 75%
Health and safety
10% rolling target for first aid and minor injury reduction
Ensure zero reportable injuries
Provide 12 man-hours training per annum on EHS to each employee
Responsible product development
Development of 3 new products
GlossaryAIIMS – All India Institute of Medical Sciences
AM – Autonomous Maintenance
ANM – Auxiliary Nurse Midwife
Anganwadi – Government sponsored child care and mother care centre in India
ASHA – Accredited Social Health Activist (instituted by the government of India)
ASSOCHAM – Associated Chambers of Commerce and Industry of India
BLT – Business Leadership Team
BSC – British Safety Council
CHC – Community Health Care
CII – Confederation of Indian Industry
CMS – Chloromethanes
CPP – Captive Power Plant
DCS – Distributed Control Systems
DTQMP – Description of Total Quality Management Process
EAM – Enterprise Asset Management
EHS – Environment, Health and Safety
ERP – Enterprise Resource Planning
ESG – Environmental, Social and Governance
ETP – Effluent Treatment Plant
EWR – Engineering Work Request
FC – Fluoro Chemicals
FICCI – Federation of Indian Chambers of Commerce and Industry
FO – Furnace Oil
FMEA – Failure Mode and Effect Analysis
FTA – Fault Tree Analysis
GHG – Green House Gasses
GWP – Global Warming Potential
HF – Hydrofluoric Acid
HFC – Hydrofluorocarbon
HOG – Hot Oil Generation
HSD – High Speed Diesel
ICC – Indian Chemical Council
JUSE – Union of Japanese Scientists & Engineers
KPI – Key Performance Indicators
NRM – Natural Resource Management
OEM – Original Equipment Manufacturer
PDPC – Process Decision Programme Chart
PHC – Primary Health Care
PLC – Programmable Logic Circuit
PRADAN – Professional Assistance for Development Action (An NGO)
PSP – Problem Solving Process
QC – Quality Circle
REACH – Registration, Evaluation, Authorisation and Restriction of Chemicals
RSACS – Rajasthan State AIDS COntrol Society
RTE – Right to Education
SARD – Society for All Round Development (An NGO)
SC – Specialty Chemicals
TFE - Tetrafluoroethylene
TIE – Total Involvement of Employees
TQM – Total Quality Management
Profile Disclosures
Disclosures on Management Approach
Performance Indicators & Sector Supplement Performance Indicators
Stan
dard
Disc
losu
res
Repo
rt As
sure
d by K
PMG,
Indi
a
Same as requirement for Level B
Management Approach Disclosures for each Indicator Category
Repo
rt Ex
tern
ally
Assu
red
Report on all criteria listed for Level C plus:1.23.9, 3.134.5 - 4.13, 4.16 - 4.17
Management Approach Disclosures for each Indicator Category
Report fully on a minimum of any 20 Performance Indicators, at least one from each of: economic, environment, human rights, labor, society, product responsibility.***
Respond on each core and Sector Supplement* indicator with due regard to the materiality Principle by either: a) reporting on the indicator or b) explaining the reason for its omission.
Repo
rt Ex
tern
ally
Assu
red
outp
utou
tput
outp
ut
Report on1.12.1 - 2.103.1 - 3.8, 3.10 - 3.124.1 - 4.4, 4.14 - 4.15
Not Required
Report fully on a minimum of any 10 Performance Indicators, including at least one from each of: social, economic, and environment.**
* Sector supplement in final version** Performance indicators may be selected from any finalized Sector Supplement, but 7 of 10 must be from the original GRI Guidelines*** Performance indicators may be selected from any finalized Sector Supplement, but 14 of 20 must be from the original GRI Guidelines
Report Application Level C C+ B B+ A A+4
SRF LimitedBlock-C, Sector 45
Gurgaon 122003
Haryana, India
Tel: (+91-124) 435 4400
Fax: (+91-124) 435 4500
E-mail: info@srf.com
Web: www.srf.com
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