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Jubilant Industries Limited Corporate Sustainability Report 2010-11 3
Corporate Sustainability Report 2010-11
Jubilant Industries Limited Corporate Sustainability Report 2010-11 4
SUSTAINABILITY MISSION
Jubilant Industries Limited strives for Sustainability
through good Corporate Governance practices.
The Company will support Sustainability to meet
Environmental, Economic and Social needs without
compromising the progress and success of future
generations.
Hari S BhartiaChairmanDecember 05, 2010
1.0 CorporateSustainabilityMatters
2.0 Vision, Values and Promise
3.0 Report, Assurance and Business Structure
3.1 The Report
3.2 The Assurance
3.3 The Business Structure
4.0 Transparency and Accountability
4.1 Corporate Transparency and Accountability
4.2 Economic Transparency and Accountability
5.0 RiskandOpportunitiesManagement
6.0 ClimateChange&SustainableBehaviour
7.0 CaringforEnvironment
8.0 ContinualfocusonSafety
9.0 SharingValuewithEmployees
10.0 WorkingwithCustomers
11.0 GrowingwithCommunitiesforInclusiveGrowth
12.0 TheWayForward
GRI Content Index
GRIApplicationCheck
Abbreviations
What’s inside?
Jubilant Industries Limited Corporate Sustainability Report 2010-11 1
CLIMATE CHANGE MITIGATION POLICY
Jubilant Industries Limited believes in Sustainable Development and recognizes the risk of Climate Change. The Company is committed to reduce carbon emissions and aims to:
ŸCreate awareness among employees, their families, customers and community around the plants on climate change issues
ŸImplement energy conservation measures
ŸReduce Greenhouse Gas emissions through process optimization and pollution prevention
ŸUse advanced information technology to reduce travel related emission
ŸRaise greenery & plantation in the plant and its vicinity
We shall endeavour to mitigate Climate Change by these initiatives.
Priyavrat BhartiaDirector December 04, 2010
Jubilant Industries Limited Corporate Sustainability Report 2010-11 2
Jubilant Industries Limited Corporate Sustainability Report 2010-11 3
1.0 The Corporate SustainabilityMatters
TheJubilantBhartiagroupbeingaresponsiblecorporatecitizenhasbeenpublishingCorporateSustainability Report of Jubilant OrganosysLtd., since 2003. The Board of Directors ofJubilant Organosys Limited has approved theamalgamation of Pace Marketing SpecialtiesLimited, an exclusive contract manufacturerfor adhesives of Consumer Products Divisionof Jubilant Organosys. To further strengthenthe businesses independently, the Board also approvedthedemergerofAgriandPerformancePolymerbusinessandthisentityisreferredasJubilant Industries Ltd. (JIL).
Asanenvironmentally conscious JubilantBhartiaGroupCompany, JIL alsodecided to follow the samepracticesof JubilantOrganosys Ltd. (presentlyknownasJubilantLifeSciencesLtd.)forSustainableDevelopment.Duringthisyearofdemerger,wecontinuedourinitiativesintheareasofEnvironment,Health and Safety as well as on Social initiatives in synchronization withthebusinessgrowth invarious segments. JILbelieves thatSustainability isinheritedbeinga JubilantBhartiaGroupCompany.WearehappytosharewithyouthefirstCorporateSustainabilityReportfortheyear2010-11givingourperformanceonEconomic,EnvironmentalandSocialperformance,theTripleBottomLineoftheCompany.
Duringtheyear,werealignedourbusinesssegmentationtoderivemaximumsynergies from the businesses. We segmented the organization into twomajorbusinesses–AgriProducts&PerformancePolymers.ThePerformancePolymersbusinesswasfurthersegmentedintoLatex,SolidPVA,ConsumerProducts Division& other business is IndianMade Foreign Liquor. Out ofthesebusinessesourmainfocusisontheAgriProductsBusinessandPolymerBusinesswhichtogethercontributemorethan99%ofthetotalsales. The Company strives to be a leading Agri and Performance Polymers
Jubilant Industries Limited Corporate Sustainability Report 2010-11 4
companyhavingasignificantdomesticpresenceandtheabilitytodeliverhighqualityandconsistencyacrossawiderangeofvalue-addedproductsandservicesinthemarketplace.
Ouremphasisistocatertotheneedsofthecustomersthroughgood quality services and products being manufacturedin Uttar Pradesh, Rajasthan, Maharashtra and Gujarat.The business works closely for research and developmentactivities to introduceuseful products tomeet theneeds oftheconsumers.Infact,byvirtueofAgribusiness,wecatertothelargeststakeholderbaseofourcountry,i.e.farmers,whoareoneoftheimportantstakeholdersinthedevelopmentofthe country.
Weareconstantlyengagedindeliveringvaluetoourcustomersby leveraging R&D and innovations capabilities, maximizingoperationalefficiencies,usinginternationalanddomesticmarketingtoleadsalesgrowthandstrivingforbenchmarkedlocallyandglobally.ThedistributionnetworkwasexpandedconsiderablyinConsumerProductsDivision.WeincreasedthecapacityutilizationoftheSingleSuperPhosphateplantsundertheAgriProductsBusiness.
In addition, we aremarketing agrochemicals, water soluble fertilizers, plant growth regulators andmicronutrients through the existingchannelpartnerstostimulaterevenuegrowth.WeexpandedthecapacityinSolidPVA&VPLatexandplantoincreasecapacityutilizationinthecomingyearsandlaunchedanewproduct‘Lamino’intheConsumerProductsDivision.
TheCompany’s focusonSocial Initiativeshasbeenanon-goingactivityatall the locationsdependingupon theneed.ThesearecarriedoutthroughJubilantBhartiaFoundation(JBF)forgrowthofthecommunityaroundtheplants.Ourthrustistowardstheimmediateneedsof the community inorder tobringa change in their values forbetter lifeand socio-economicdevelopment. JBF initiativesare focusedmainlyonimprovementinprimaryeducation,basichealthcareandlivelihoodgenerationthroughskilldevelopment.TheCompanyensuresparticipatoryapproachfortheseinitiatives.
Considering Education as themain driver for social-economic development, our luminary project ‘Muskaan’ isworking in tandemwithGovernment to impact the abysmal state of primary education in rural areas in an effectivemanner. TheBasicHealthcare facilities areprovidedthroughadedicatedCommunityHealthCentre-SarvajanikMedical Centre for the community around Gajraula and throughmobiledispensariestooutreachareasatotherlocations.Theotherinitiatives‘NirogBachpan’and‘SwasthyaPrahari’aimatinculcatingbest health seeking behavior in the community. The Company isworkingtodevelopapoolofskilledmanpowerforhigherprospectof employability, through Vocational Training programs at alllocationsinassociationwithNABARD.
WearepleasedtoinformyouthatinveryfirstyearofJILformation,we received fewbest recognizedawards. These includes; Frost&Sullivan Award for Competitive Strategy Leadership and FertilizerAssociationofIndiaforEnvironmentProtection.Nodoubt,thisisaclearreflectionofourcommitmentforSustainability.DaybydayallthebusinessesarechallengedonSustainabilityissueslikeclimatechange,naturalresourcedepletion,stakeholderaccountability,corporategovernanceetc.Theneedistoconverttheseriskstoopportunitiesinourbusiness.WerecognizedtheimportanceofglobalwarmingandformulatedthepolicyformitigationofClimateChange.
1.0 The Corporate SustainabilityMatters
Jubilant Industries Limited Corporate Sustainability Report 2010-11 5
With an objective to integrate Sustainability in the organization from thebeginning, the Board approved a Sustainability Mission to provide a solidfoundation to Sustainable development at Jubilant Industries. No doubt,these would not only help us in sailing the journey of Sustainability for longtermsuccessoftheCompanybutguideallofustoworkmoreconsciously& responsibly in each and every sphere of the Company’s activities. TheCompany is committed and working on various measures for energyconservationandemissionreductionaswellasplanstocreateawarenessonclimatechangemitigationissuesonawidernationalscene.
We believe inmanufacturing highquality products withminimum impact on the environment andmeeting the requirementof valued stake holders.In our operations, we stress uponresource conservation, quality assurance,energyefficiency,reducedenvironmentalemissionsandmaintaininghealth&safetyofmachinery,staffandcommunityaround.Wedecidedtoachievehighenvironment,health and safety standards as per company’s policy on Environment, Health andSafety(EHS).Thisdemonstratesourcommitmentforprovidingsafe&healthyworkplacefortheemployeesandcommunity.
Intoday’sbusiness,wecannotignoreenvironmentalissuesandenvironmentalaccountability.Itisimportanttointegratethesupplychainprocesses to lower the costs and serve customersbetter. These two trends arenot independent andwehope to involve suppliers andpurchaserstomeetandevenexceedtheenvironmentalexpectationsofourcustomers.Thus,weadoptedaGreenSupplyChainPolicytoinvolveourPartnersinProgressforlongtermSustainability.
Asacommunity,thechallengewefaceoveralongtermhorizonistoworkforasustainablefuture.Tomakeourbusinesseffectiveanditsimpactacceptable,wewillcontinuetoidentifyandimplementmeasuresforbetterprocurement,judicioususageofresources,minimizewasteandreducepollution.JILiscommittedtoSustainableDevelopmentandcontinuedeffortsaredirectedtowardsprotectingtheenvironment.Wethankyouforcontinuedsupport&encouragementandlookforwardtoyourcooperationforourSustainabilityefforts.
TheCompanyiscommittedforSustainabilityandsetfewtargetsforimplementationduringthenextyearandtheseareaddressedinthereport.Thesereportshavebeendevelopedin-houseandhopethatyouwillappreciatetheseefforts.
Welookforwardtoyourvaluablesuggestionstomakeitbetter.
BestWishes&Regards,
Hari S. BhartiaChairman
Our initiatives ‘Nirog Bachpan’ and
‘Swasthya Prahari’ aim at inculcating best health seeking behavior in the
community.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 6
2.0 Vision, Values and PromiseTheJubilantIndustriesLimitedisguidedbytheVision,ValuesandPromiseofJubilantBhartiaGroupandthesehavebeenembracedbyallthebusinessesandfunctionsofthe Company.
Our VisiOn is driVen by Our Values
We will carefully select, train and develop our people to be creative and
empower them to take decisions, so that they respond to all stakeholders with
agility, confidence and teamwork
We stretch ourselves to be cost effective and efficient in all aspects of our
operations and focus on flawless delivery to create and provide the best value to
our stakeholders
By sharing our knowledge and learning from each other and from the markets
we serve, we will continue to surprise our stakeholders with innovative solutions.
With utmost care for the environment and safety, we will always strive to excel in the quality of our processes, our products and
our services.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 7
TheCompanyhasinternallydevelopedandadoptedCodesandPoliciesforGoodGovernance,theseinclude;
CodeofConductforDirectorsandSeniorExecutives
WhistleBlowerPolicy
Sustainability Mission
Environment,HealthandSafetyPolicy
ClimateChangeMitigationPolicy
Green Supply Chain Policy
Quality Policy
CodeforPreventionofInsiderTrading
The COmpany’s jOurney is led by iTs COre Values TO deliVer iTs prOmise Of Caring, sharing, grOwing
ENVIRONMENT, HEALTH AND SAFETY POLICY
Jubilant Industries Limited operations include manufacturing agri products, performance polymers and IMFL. The Company is committed to environmental protection and observe high standards of Health & Safety (EHS).
We shall accomplish this by striving to:
ŸComply with regulatory standards on Environment, Health and Safety
ŸOptimize resource utilization and reduce waste & emissions
ŸIdentify, minimize and control safety hazards
ŸEnsure safe & healthy work environment
ŸMonitor EHS performance for continual improvement
ŸPromote EHS awareness among employees, contractors, suppliers and community around the operations
ŸCommunicate EHS performance to internal and external stakeholders
The policy will be implemented, monitored and is in public domain.
Ananda MukherjeeCEO and Whole Time Director November 26, 2010
Jubilant Industries Limited Corporate Sustainability Report 2010-11 8
GREEN SUPPLY CHAIN POLICY
At Jubilant Industries Limited, we are committed to strive for enhancing the
Greening of Supply Chain in collaboration with our Partners in Progress for long
term Sustainability and we will work with the partners to:
ŸProtect the environment by creating awareness to reduce, reuse and recycle
resources
ŸEducate Partners to say no to child labour and reduce Greenhouse Gas
emission
ŸAdhere to Environment, Health & Safety compliance
Ananda MukherjeeCEO and Whole Time Director November 15, 2010
Jubilant Industries Limited Corporate Sustainability Report 2010-11 9
Jubilant Industries Limited Corporate Sustainability Report 2010-11 10
3.0 Report, Assurance and Business Structure
The Company believes that sustainability challenges like environmental protection andaccess to natural resources, product innovation, employee health and safety, climatechange,talentmanagementandaddingvaluetolocalcommunitiesneedstobeproperlymanagedandstrategizedforachievingSustainability.TheCompanyhasbeenconstantlyengagedwithGovernmentand IndustryAssociationstoshareknowledgestrategizeandbettermanagethesechallenges.
ThereportingperiodfortheCorporateSustainabilityReportisfromApril1,2010toMarch31,2011,whichisthefinancialyearinIndia.AspartoftheSchemeofAmalgamationandDemergeramongstJubilantLifeSciencesLimited(JLL),JubilantIndustriesLimited(JIL)andothers,theAgriproductsdivision,PerformancePolymerdivisionandIMFLdivisionofJLLweredemergedandtransferredtotheCompanywitheffectfromcommencementofbusinessonApril1,2010(i.e.theAppointedDateundertheScheme).TheHon’bleHighCourtofAllahabad,videitsOrdersdatedOctober28,2010andNovember8,2010approvedthesaidScheme.TheSchemebecameeffectivefromNovember15,2010.TheJubilantOrganosysLtd.(presentlyknownasJubilantLifeSciencesLtd.)hasbeenpublishingCorporateSustainabilityReportsince2003andthelastreportwaspublishedinAugust2010.TheJubilantIndustriesLtd.operationswerepartofJubilantLifeSciencesLtd.beforethedemergeronNovember15,2010.ThisisthefirstCorporateSustainabilityReportofJubilantIndustriesLtd.
ThisreportwillbepublishedonannualbasisalongwiththeAnnualreportoftheCompany.ThecoreandadditionalperformanceindicatorsofG3.1guidelinesofGlobalReportingInitiative(GRI),TheNetherlandsareincludedinthereportasperthemateriality.Theotherrequirementsoftheguidelineshavealsobeenfollowed.JubilantBhartiaGrouphasstrongfoundationofSustainabilityreporting.Inthisreport,theeffortsaremadetoadequatelyaddressthechangeinbusinessaswellasthechallengesandopportunitiesalongwiththeEconomic,EnvironmentandSocialperformanceof theCompany.The report coversall the5manufacturing facilities i.e.Gajraula&Sahibabad inUttarPradesh,KapasaninRajasthan,SamlayainGujaratandNirainMaharashtra.TheSahibabadunitwasnotcoveredinthepreviousSustainabilityReportsofJubilantOrganosysLtd.becausethiswasacquiredinJuly2010.
JubilantAgriandRetailPrivateLimitedisasubsidiarycompanyofJubilantIndustriesacquiredinFebruary2011.Thereportincludesallmajoractivitieswhichhavesignificantimpactonsustainability.However,certainaspectssuchasemissionsduetoemployeetravelandmovementofgoodshavenotbeen included in the report.TheDatameasurement techniquesadopted for reportingarebasedon itspracticability.Allresourcesconsumedarebasedonactualmeasurement.However,intheabsenceofcontinuousmonitoringsystemforstackemission,sampledatahavebeenextrapolatedtoderivetheresults.Further,thecompanywillstrengthenthesystemofcollectingHSD/EnergydataatSahibabadsite.Therearenore-statementsofinformationinthereport.Previousyear’sfiguresarenotreportedasthisbeingthefirstreportofJubilantIndustries.ActualdatafortheperiodofNovember2010toMarch2011iscompiled.However,thedataofApril-October2010isextrapolatedinthereportwhereverapplicable.
TheChiefofEHS&SustainabilityofJubilantLifeSciencesisoverseeingtheCorporateSustainabilityReportingofJubilantIndustriesalso.Thecontactpersonforanyquestions/clarification/feedbackrelatedtothisreportis;
dr. y. K. saxenaChiefofEHS&SustainabilityJubilantLifeSciencesLimited1A, Sector 16A,Noida–201301UttarPradesh,IndiaPhonenumber:+911204361987email: [email protected]
3.1 The repOrT
Jubilant Industries Limited Corporate Sustainability Report 2010-11 11
Amulti dimensional process tocapture core sustainability issues hasbeenfollowedforthisreport.The Company recognizes thatthere isway toaligncompany’sreporting process and continueto improve for integrity andaccountability.Analysisoftheseissues is an important input to company’sbusinessstrategyandrisk management framework.This report content has been defined as per GRI guidelines.The report is structured in six major focus areas whichare the essential elements ofSustainability related to the Company’s business. However,other required details are alsocovered.
Thefocusareasare:
Risk and opportunitiesManagement
ClimateChange&SustainableBehaviour
CaringfortheEnvironment
Continualfocusonsafety
Growing with communitiesforinclusivegrowth
Value sharing withEmployees
TheCompanycontinuestoseekto improve its SustainabilityReporting, moving beyondcompliance for Sustainabilityand believe to informcompany’s strategy and longterm integration of economicdevelopment, environmentalquality and improve socialperformance.
This report has been verified byM/s Ernst & Young Pvt. Ltd. and theAssuranceStatementisgivenbelow;
There are no re-statements of information in the report. Previous year’s figures are not reported as this being the first report of Jubilant Industries.
3.2 The assuranCe
Jubilant Industries Limited Corporate Sustainability Report 2010-11 12
3.0 Report, Assurance and Business Structure
Jubilant Industries Limited Corporate Sustainability Report 2010-11 13
3.3 The business sTruCTure
JubilantIndustriesLtd.istheflagshipcompanyoftheJubilantBhartiagroup.TheCompany’sdiversifiedportfolioofAgriproducts,PerformancePolymersandIMFLbusinessesdeliversbroadrangeoftechnologybasedproductsandsolutionstocustomersinIndiaaswellasglobally.Overtheyears,thisbusinesshasattainedasignificantsizeinIndiaandtheCompanyaimsatscalingupitsbusinessinglobalmarkets
TheCompanyhasbeendemergedfromJubilantLifeSciencesLimitedonNovember15,2010,and listedonBombayStockExchange(BSE)andNationalStockExchange(NSE)witheffectfrom February 14, 2011. The Company’s head office is inNoida,Uttar Pradesh, India andservicescustomersaroundtheglobewithits5manufacturinglocationsinfourstatesofIndia.Theseincludes;Gajraula&SahibabadinUttarPradesh,KapasaninRajasthan,NirainMaharashtra,andSamlayainGujaratandastrongteamofover600peopleincluding250salesandmarketingworkforce.TheCompanyisamemberofFertilizerAssociationofIndia(FAI)andInternationalChewingGumAssociation(ICGA).
TherevenuesoftheCompanyforFY2011standat`5539.90Millionwith46.40%ofthisrevenuecomingfromPerformancePolymersbusinessand47.17%fromAgriProducts.Thetotalcapitalizationbrokendownintermsofdebtandequityis`42.33million and `80.14millionrespectively.
TheCurrentLeadershipPositionsofeachbusinesssegmentofJILisgivenbelow;
TheCompany’sstrategicfocus istocollaborateandacceleratetheprocessofdeliveringtheproductstothemarketfor itscustomers’.AtJIL, theemphasis isgiventocatertotheneedsofthecustomersthroughgoodqualityservicesandproductsbeingmanufacturedatthemanufacturingplantsoftheCompany.Thebusinessworkscloselywithcustomersusingresearchanddevelopmenttointroducerequiredsolutionsandproductstosuittheendconsumer’sneeds.
AmongstTop4brandsinIndiaforSingleSuperPhosphatefertilizerandasignificantagronutrient
playerNo.1inIndiaandglobally
amongstthetop3forPVAinsolidformforchewinggum
base
No.1inIndiaandamongstthetop3playersgloballyforVinylPyridineLatexforautomobiletyresand
conveyorbelting Consumerbrand“Jivanjor”isthe2ndlargestbrandinIndiainconsumeradhesivesandasignificantplayerintheIndianwoodfinishesmarket
sahibabad
gajraulaKapasan
samlaya
nira
agriprOduCTs
fOOdpOlymers
VplaTeX
COnsumerprOduCTsdiVisiOn
Jubilant Industries Limited Corporate Sustainability Report 2010-11 14
3.0 Report, Assurance and Business StructureInlinewithcompany’scontinuedfocusonSustainabilityofthebusiness,TheCompanyaimsatimprovingstakeholdervaluethroughimprovedecoefficientuseofcapitalandnaturalresources.TheCompany’sapproachtosustainabledevelopmentfocusesonthetriplebottomlineofEconomic,EnvironmentandSocialperformance.Thesocialresponsibility isan integralpartofhowthebusiness isconductedandtheeffortsaredirectedtowardscommunitydevelopment,throughinitiativesintheareasofprimaryeducation,basichealthcareandlivelihoodgenerationprograms.
JubilantIndustriesLtd.hasbeenaregisteredcompanyundertheCompany’sActbyRegistraroftheCompanies,Kanpur,UttarPradeshandisaPublicListedcompany.TheCompanyhasnojointventures.However,JubilantAgriandRetailPrivateLimitedisasubsidiarycompanyofJubilantIndustriesacquiredinFebruary2011andtheportfoliooftheCompanyincludes;
AgriProductssuchasCropNutrition,CropGrowth&CropProtectionproductsandindustrialproductslikeSulfuricAcid
PerformancePolymerproductssuchas:
Consumerproductslikewoodworkingadhesives,woodfinishes,footwearadhesivesandepoxysealantproducts
Food polymer like Solid Poly Vinyl Acetate
LatticessuchasVinylPyridineLatex,SBRLatexandNBRlatex
IndianMadeForeignLiquor-BottlingofIMFL
agriCulTural prOduCTs diVisiOn
TheCompany’sagriculturalproductsdivisionisclassifiedintofoursegmentsofcropnutrition,plantgrowthregulators,cropprotectionandindustrialchemicals.Allagriculturalproductsaresoldunderthebrandname‘Ramban’.ThesalesareprimarilytotheNorthernhalfofIndiaandarewellknowninthesemarketsbythefarmingcommunityforitsquality,consistencyandreliability.
product line products and services sector/industry/ Customers
CropNutritionproductssuchasSingleSuperPhosphate(SSP)FertilizernamelyRamban&marketingofotheragriproductse.g.Bentosulph,Sulphagold,RambanBhooSanjeevani(organicmanure)&NutraPlus.
Thiscategoryofproductsaidinincreasingthecropyield&qualityofplantsandhelpconditionthesoiltoprotectplantsagainstcropdisease.
Agriculture
Cropgrowthregulatorproductssuchas‘Vam-C’,Ripex,PowerPlus,etc.
Itprimarilyaidtoincreaseplantgrowth&balancematuritybycurtailingtheunwantedvegetativegrowth.
Agriculture
Cropprotectionproductscoverawiderangeofinsecticides,herbicidesandfungicides
Tradingofcropprotectionproductsatvariousstagesincludingfromseedsowingtoharvesting.However,itisnotmanufactured,theexistingchannelisusedfortradingtheproductse.g.Ikon,Cartex,Atler,CymaxandRaideraresomeoftheinsecticideandpesticideproducts.Inaddition,Fire,ClodinoxformapartofherbicideproductportfolioandVozim,HexonandVozimPlusformapartoffungicidesproducts.
Agriculture
IndustrialChemicalssuchasSulfuricAcidand Sodium Silico Fluoride
SulfuricacidismainlyforcaptiveconsumptioninSSPproductionandsoldcommerciallyforindustrialusealso.SodiumSilicoFluorideismarketedtomainlyglassindustry.
SSPindustry,Soap&detergentindustry,fertilizers,sugarrefiners,colors,dyes,paper&thealuminumindustry,glassindustry
Jubilant Industries Limited Corporate Sustainability Report 2010-11 15
Thesuccesssofarinthebusinessisanoutcomeofstrategicvisiontoattainleadershipposition.Thisisdrivenbyacultureofinnovation,theCompany’sfocusondeliveringqualityproductsandservicestoitscustomers.TheCompanybelievesinInclusivegrowthi.e.growthofthekeystakeholdersalongwiththeCompanyandencouragestransparency,accountabilityandgoodgovernancepracticesacrossallfacetsofbusiness.
Jubilant Industries strives towards sustainablebusiness i.e. businessnot justbasedonfinancial performance,butwith abroader setofdevelopmentgoals.JILconductsitsbusinessinaccordancewiththeconceptof“TripleBottomLine”focusingequallyoneconomic,socialandenvironmentaspectsofsustainability.
TheCompanycontinuesitsfocusonsustainabilityofthebusinessandaimsforimprovingstakeholdervaluethroughimprovedefficientuseofcapitalandnaturalresources.Thesocialresponsibilityisanintegralpartofourbusinessandalleffortsaredirectedtowardscommunitydevelopment,throughinitiativesintheareasofprimaryeducation,basichealthcareandlivelihoodgenerationprograms.TheseareperformedthroughJubilantBhartiaFoundation(JBF).
perfOrmanCe pOlymer prOduCTs diVisiOn
ThePerformancePolymersdivisionisoneoftheleadingmanufacturersofproductssuchasVinylpyridinelatex,Adhesives,Woodfinishes,Speciality polymers and Food
product line products and services sector/industry/ Customers
Jivanjor-Adhesives Arangeofreadytousewoodadhesives,suitableforwoodjoinery.Thewaterbasedadhesivescomprise,PolysticHero,VambondExcelandAllRounder.JivanjoralsoofferscontactadhesiveChampionwhichisasyntheticrubberbasedadhesiveforexceptionalfastdrying&verticallamination.
Woodworking
Jivanjor-woodfinishes Woodfinishesareusedinstainsandancillariesfordecoration&protectionofwoodenfurniture.ThewoodfinishincludesPolyurethanefinish,MelamineNon-yellowingfinish,Melaminefinish,Nitrocellulosefinish&PUAlkydfinish.Ancillarieslikesealers&thinnersarealsooffered.
Woodworking
Jivanjor-footwearadhesives Rangeoffootwearadhesivescomprisessyntheticrubberbasedadhesivesandtwocomponentpolyurethaneadhesives.TherubberbasedadhesivesareRB1001F,RB1003,RB1005andFOAMBONDwhilethetwocomponentpolyurethaneadhesives,includePU2000,PU 2001 and PU 2002.
Footwear
Jivanjor-epoxysealants Rangeofepoxysealantsforanyrepairjoblikesmallcrackandleakages,thevariantsincludePlumber’sseal,MixnFix,FastSeal,WhitePutty,10MinutePutty,IndustrialGradeEpoxyandWetSet.
Plumbing/Domestic
Food Polymer - Solid Poly Vinyl Acetate (SPVA)
SolidPVAisthemajorrawmaterialformakingChewingGumandBubbleGum.AllgradesofPVAhavebeendevelopedbyextensivein-houseR&DeffortsandtechnologyimprovementsandconformtoInternationalstandardsforfoodGradequality.
ChewingGum
Latex - VP latex, SBR latex, NBRlatex
VPLatexisusedformanufacturingoftyrecorddippingandconveyorbeltfabric.SBRlatexisusedinabovetyrecordfabricwhileNBRlatexusedinAutomotivegasketbindingapplications.
Tyre industry
Jubilant Industries Limited Corporate Sustainability Report 2010-11 16
3.0 Report, Assurance and Business Structureawards & reCOgniTiOn
JubilantisproudtomentionthereceiptoffewmostprestigiousawardswithinamonthofformationoftheCompany.Theseinclude;
Frost & Sullivan Award 2010 for Competitive Strategy Leadership for Water Based Adhesives
TheCompanywasrecognizedbyFrost&SullivanasVisionariesforanOutstandingandExceptionalPerformanceinChemicals,MaterialsandFoodAwardatanOstentatiousCeremonyheldinDecember,2010inMumbai.Theawardwasforshowcasingunparalleledinnovationacrossawidevarietyofproductsandservices.Thenomineesandawardrecipientswereidentifiedbyadiligentprocesstakingintoconsiderationperspectives from customers, experts and thought leaders within theindustryalongwithFrost&Sullivan’sknowledgeontheindustries,whichhasbeenacquiredthroughyearsofcontinuousresearchandtracking.
Theerudite jury includedpersonalities likeMr.SanjayLaud,GlobalVicePresident,BioplusLifeSciences;Mr.GMTewari,Ex-ChairmanandGoverningBoardMemberofProteinFoodsandNutritionalDevelopmentAssociationof India (PFNDAI); Dr. R Rajagopal, Director, Knowgenix; Mr. Rajeev M Pandia, Ex MD of SI and Past President, ICC;Mr. Ramesh Alur, General Partner, Ventureast; Dr. Hirwani,Director,URDIPCSIR;andDr.AnandRamanathan,Manager,KPMG.
Ms. Mamta Wadhwa, Senior Director, Chemicals, Materials and Foods practice, Frost & Sullivan.
The Water based Adhesive industry is faced with several key industry challenges that companies must address to succeed. Jubilant possesses an enviable and broad range of products allowing it to act as a one stop solution for all customers needs. Today Jubilant is one the few organizations offering a unique set of capabilities based on a deeper understanding of competitive offerings relative to customer needs
Jubilant Industries Limited Corporate Sustainability Report 2010-11 17
Fertilizer Association of India Award 2010 for Environment Protection for Single Super Phosphate, Kapasan Plant
The Company’s Fertilizer unit at Kapasan, Chittorgarh received huge honor onreceiving prestigious Fertilizer Association of India (FAI) Environment ProtectionAward in the SSP fertilizer plants category during their Annual Function held inNovember2010inNewDelhiinpresenceofapprox.2000nationalandinternationaldelegates fromFertilizers industriesacross theglobe.Theawardwas receivedbyCEOandWholeTimeDirectoroftheCompanyfromtheHon’bleUnionMinisterofChemicalsandFertilizers,Mr.MKAzhagiri.ThisawardwasadjudgedonfulfillmentoftheparametersofEnvironmentProtectionmeasurestakenbytheCompanyandwascomparedwithalltheSSPunitsacrossthecountry.
Greentech Safety Gold Award 2011 in Chemical sector for Outstanding Safety Management
The Company received Greentech Safety Gold Award in Chemical sector foroutstandingachievementinSafetyManagementforGajraulaplant.TheawardistheacknowledgementofCompany’sworkandcommitmenttowardssafetymanagementin its business operations making them safer operations and environmentallysustainable.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 18
4.0 Transparency and Accountability4.1COrpOraTe TransparenCy and aCCOunTabiliTy
TheTransparencyandAccountabilityisthemainindicatorofgoodgovernance,whilegoodgovernanceisapre-conditioninachievingSustainability.Infact,JubilantIndustriesfirmlybelievesthatthetransparencyandaccountabilityareinterrelatedconceptsandmutuallyreinforcing.Without transparency there couldn’t be any accountability. Unless there isaccountability,transparencywouldbeofnovalue.Theexistenceofbothcontributestoaneffective,efficientandequitablemanagement.
The transparency refers to sharing informationandacting in anopenmanner.It allows stakeholders togather information thatmaybe critical touncoveringissuesandtheirinterests.Transparencyisbuiltonthefreeflowofinformation.Processes,institutionsandinformationaredirectlyaccessibletothoseconcernedwiththem,andenoughinformationisprovidedtounderstandandmonitorthem.Accessible information means more transparency. The Company’s initiativeforCorporateSustainabilityReportwithinsixmonthsof its formation isa stepforwardfortransparencyandaccountability.
TheBoardofDirectorsoftheCompanyistheapexgoverningbodyresponsibleforframingandimplementationofcorporategovernancepolicies.TheBoard,withtheobjectiveofcreatingsustainablevalueforallstakeholders,providesvisiontotheCompanyandoverseesthemanagement’sdecisions.TheBoardhasfosteredaspiritofconstructivecriticismandcreatedacultureoftransparencythroughouttheorganization.Jubilant’soperationsarelookedafterbythehighestExecutiveOfficeroftheCompany,whoisCEOandWholetimeDirector.TheCEOandWholetimeDirector isnotapromoterorfounderoftheCompany.TheremunerationofCEOandWholeTimeDirector is paidonly after approval by theBoardandShareholders.
TheDirectorsarepaidsittingfeestomeettheexpenses incurredbytheminattendingtheBoardmeetings,whicharedulyapprovedbytheBoardofDirectorsandareinaccordancewithGovernmentguidelines.Further,non-executivedirectorsarealsopaidcommissiononanannualbasis,inordertocompensatethemforthetimeandeffort.SuchcommissionissubjecttotheapprovalofBoardandshareholders. Presently,theCompanyhasnotadoptedaformalmethodforevaluatingtheperformanceofnon-executiveBoardmembers.Theperformanceevaluationoftheexecutivemembersisbasedontheresultsachievedintheirrespectiveareas.
TheCompany’sexecutivecompensationpoliciesarestructuredinlinewiththecurrentbusinessnormsandpractices.ThecompensationisgiventotheCompany’sexecutivesonthebasisoftheirachievementsonnon-financialparametersalso.
TheCompanyalsohasvariousBoardlevelCommittees,whichincludeAuditCommittee,InvestorsGrievanceCommittee,andRemunerationCommitteetomeetregulatoryrequirementsaswellastodischargethesecriticalfunctionsasdelegatedbytheBoard.TheothercommitteesareFinanceCommitteeandListingCommittee.
ThereareinformalproceduresinplaceforappointingmembersoftheBoardwhereinthecompositionoftheBoardisstudiedtoassessifthere isaproperbalance inplaceatthestrategic level.ForappointinganewDirector,suitablecandidatesareshort-listed,basedonthecriteriasetbytheBoard,includingtheareaofexpertise/specialization.TherightoffinalselectioniswiththeBoard.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 19
TheCompany’sBoard isa judiciousmixofexecutive,non-executiveand independentdirectors.Outof thetotalofsixdirectors,fivearenon-executiveandoutofthesethreeareindependent.Non-executivedirectorsarethosewhoarenotassociatedwiththeCompanyinanexecutivecapacity.An independentdirector isanon-executivedirectorwhoapart fromreceivingdirector’s remunerationdoesnothaveanymaterialpecuniaryrelationshipwiththeCompany.Thereisnoformalwrittenpolicyforconflictresolution.Theconflictswithinseniormanagementlevelareresolvedthroughinformalchannels.
TheBoardhasalsoconstitutedaSustainabilityCommitteeforbettermanagementofEconomic,EnvironmentandSocialperformanceaswellasinitiativesformitigationofClimateChange.TheformationofSustainabilityCommitteewithinashortperiodofformationoftheCompanyistestimonyofCompany’scommitmentforSustainability.
TheBoard/Committeesregularlymonitor:
Internal Audit Reports
RiskManagementProcesses
Businessstrategyandlongtermplans
Financialperformance
ForeignExchangeexposures
Statutory compliance
Further,toensureeffectiveimplementationofBoard’spolicydecisions,thereareseveralExecutiveCommittees,comprisingCEO&WholeTimeDirectorandseniorofficialsoftheCompany.TheBusinessHeadsareresponsibleforsupervisingandoverseeingthefunctioningoftherespectivebusinesses,includingthedevelopmentofbusinessstrategiesandplans,withdueconsiderationtotheinterestsofstakeholders.AttheAnnualStrategyMeet,theChairmanandtheCEO&WholeTimeDirectorreviewthesebusinessstrategies.TheManagementTeamofJubilantispresentedbelow:
Accessible information means more transparency. The Company’s initiative for Corporate Sustainability Report within six months of its formation is a step forward for transparency and accountability.
bOard Of direCTOr
CEO & Whole-time Director
CfO
Treasury BU Head - Agri
bu head - Cpd
accounts
Taxation
Legal
businessunit heads
Companysecretary
bu head - Vpl
bu head - spVa
Heads - Mfg head - sCm head - hr head - r&d
mis
eXpOrTs
head - Techserv
businessexcellence
ehs &sustainability
Jubilant Industries Limited Corporate Sustainability Report 2010-11 20
TheCompanyhasbesttalenttolookaftertheinterestoftheshareholders.ThisconsistsofHeadofFinance,Business,Manufacturing,SupplyChain,R&D,HumanResourcesandBusinessExcellenceetc.However,presentlytheEHS&Sustainabilityisoverseen&guidedbyChiefofEHS&SustainabilityofJubilantLifeSciences.Infact,theseactivitiesatplantlevelareperformedbyateamofEHSpersonnelandthisteamfunctionallyreporttoChiefofEHS&Sustainability.
TheactivitiesofEnvironment,Health&SafetyrelatedareassuchasmitigationofClimateChangeandSustainabilityetc.arealsooverseen&guidedbyChiefofEHS&SustainabilityofJubilantLifeSciencesduringthereportingyear.TheCompanyalsohasseveralpoliciesonlaborpracticesandHead-HRistheseniormostofficersresponsibleforlaborpracticesoftheCompany.Thespecificgoalsaremonitoredasindicatorfor laborpractices. TheCompanybelievesand respect inhuman rights.HumanRights issues suchas freedomofassociation, collectivebargainingandabolitionofchildlaboretc.areaddressedaspervariouspolicies.Duringthereportingperiod,therewasnocaseofhumanrightsviolation.
TheCompanyiscontinuallyworkingtoimprovethequalityofservicerenderedtoitsstatutoryrequirements.TheAnnualGeneralMeetingisimportantplatformwhereshareholderscansharetheirvaluablesuggestionsandideaswithdirectors.
Dueconsiderationwillbegiventothesuggestions/ideasgivenbytheshareholders,andtotheextentfoundpracticable,appropriateandintheinterestsoftheCompany,suitableactionsaretaken.Theminutesofthemeetingsofmemberswillbepreparedasperrequirementsoflaw.TheCompanysendshardcopyofNoticeofAnnualGeneralMeetingandAnnualReporttoshareholders.AcopyofthisSustainabilityReportwillbeforwardedtoalltheshareholdersalongwiththeAnnualReportaswellastootherkeystakeholders.
TheProfitisintegraltosurvival.Itrevives,renewsandreplenishes.Withoutasurplus–especiallyinsustainableway-therewillbenofundstoinvestintheenvironmentalandsocialdriversofsustainabledevelopment.TheCompanyconstantlyfocusedongrowingbusinesswiththeobjectivetoenhancevalueforallthestakeholders.StrongfinancialmanagementandgrowthacrossthevaluechangeenabletheCompanytoundertakeenvironmentalandsocialinitiativesyearafteryearwithoutcompromising.TheCompanyhasadoptedERPsystemforfinancialaccountingandreporting.ThemainproductsoftheCompanyforthereportingyearareasfollows;
s.no. products Quantity per annum
1 PolymersincludingCo-PolymersandVPLatex 37,139MT
2 SSP 276,771MT
3 SulfuricAcid 59,911MT
4 AgriChemicals 779KL
5 IMFL 6,197KBL
6 Biocompost 5,550MT
The revenuegeneratedwas`5539.90millionduring this year. The revenuewas`2613.30 and `2570.40million forAgri&performancePolymerbusinessrespectively.Therevenuegenerationfromotherbusinessanddiscontinuingoperationswas`22.30millionand&`333.90respectively.Theregionwiserevenuegenerationfromexportsisgivenbelow:
Sales revenue by Geographic Markets ` in million
Americas&Europe 2,98.64
China 1,16.43
Asia&Others 2,12.54
Total Exports 6,27.61Therevenuegenerationfromexportis`627.61Millionwhichis11.33%ofthetotalrevenuegeneration.
4.0 Transparency and Accountability
4.2eCOnOmiC TransparenCy and aCCOunTabiliTy
Jubilant Industries Limited Corporate Sustainability Report 2010-11 21
The Value disTribuTiOnThecontinuoussupplyofqualityrawmaterialisimportantforanybusiness.TheCompanyhasbeenworkingwithitsPartnerinProgresstoensuresustainabilityofthebusiness.Asignificantpartofrawmaterialsandsupplyprocurementisdonebyadvancepaymentorthroughletterofcredit.TheCompanyprocuresmajorpartofthematerialsfromthelocallybased(withinIndia)suppliersandtriestoconnectourPartnersinProgresswithGreenSupplyChainManagementasdefinedinthepolicy.Themainrawmaterialconsumedduringthereportingyearisasfollows;
s.no. raw materialsQuantity
(mT per annum)
1 Process Chemicals 8171
2 Rock Phosphate 160248
3 Sulfur 82621
4 ChemicalsforLatex 3647
5 Vinyl Acetate Monomer 8196
Thedetailsofmajorexpensesformanufacturingsuchasrawmaterial,powerandfuel,advertisementandpublicityetc.aregivenbelow;
item ` in million
Purchases–Tradedgoods 60.04
RawandProcessmaterialsconsumed 3065.96
PowerandFuel 168.20
Stores,spares,chemicals,Catalyst&packagingmaterialconsumed 349.59
Processingcharges 1.27
Advertisement,Publicity&Salespromotion 33.84
Printing&Stationery 4.67
Communicationexpenses 7.88
AuditorsRemuneration - As Auditors 0.51
-Fortaxationmatters 0.13
-Forcertification/advices 0.47
Legal,Professional&Consultancycharges 31.19
Freight&Forwarding 320.51
Total 4044.26
Thestaffcostasapercentageofnetsalesis7.74%ofnetsalesinFY2010-11.Thedetailsregardingsalaries,contributiontoProvidentFund,Gratuityetc.aregivenbelow;
Jubilant Industries Limited Corporate Sustainability Report 2010-11 22
TheCompany’sretainedearningsandreservesare`2720.29Million.Thedividendpayoutforthereportingyearincludesthedividendtaxanditispresentedbelow;
dividend Value
Totaldividendpayout `27.94Million
%dividend(onfacevalueof` 10) 30%
ThedetailsoftheCompany’scontributiontothepublicexchequeraregivenbelow;
Taxes ` in million
Corporate Tax 118.02
TaxonDistributedProfitsonEquityShares(Provision) 3.90
ExciseDuty 250.86
Total 372.78
ShareholdingPatternoftheCompanyasonMarch31,2011isasunder:
TheCompany receives subsidies for themanufactureof fertilizers,which isanAgrovetproduct.During theyear, theamountof subsidyreceivedfromtheGovernment,is`1379.43Million.
4.0 Transparency and Accountability
19.76%
indian public/ Others
47.51%
promoter/ group Company
20.86%
fiis/nris/ Foreign Bodies
2.04%FI/Bank/
mutual funds
9.83%Corporate
bodies
item ` in million
Salaries,Wages,Bonus,Gratuity&Allowances 383.68
ContributiontoProvidentFund&SuperannuationFund 23.48
StaffWelfareExpenses 21.73
Total 428.89
Jubilant Industries Limited Corporate Sustainability Report 2010-11 23
The Sustainability issues - environmental, social or economic - can present risks toorganizationsaswellasopportunitiesthatmaycontributetothesuccessoftheCompany.Ingeneral, sustainability risksandopportunitiesarenotadequately coveredbyexistingmanagement approaches. Today’s business environment, remains challenging for theCorporateWorld and riskmanagement retains its positionhighon everyorganization’sagenda.ThesearewellunderstoodbytheCompanyandadequatemeasuresandsystemsare in place.
Thebusinessdynamicsarechangingwhichbringinnewriskhorizons.Theabilitytoanticipatethreats,respondandcontinuallyadaptisacriticalpartoftheriskmanagementprocessGlobaloperationsandcontinuousenhancementinproductpipeline,capacitiesandtechnologiescoupledwithintensifyingcompetitionposesignificantchallengesandrisksfortheorganization.Suchrisks,ifnotperceivedinatimelymanner,couldadverselyimpactaccomplishmentoftheoverallobjectivesoftheorganization&itssustainability.Theriskandopportunitiesarisefromthree principle areas:
OperationalrisksandopportunitiesfromtheCompany’soperations.
ExternalrisksandopportunitiessuchasClimateChange.
Relationshiprisksandopportunitiesfromtheinternalandexternalstakeholders. Thesustainabilityriskandopportunityrequiresariskmanagementprocess.
AtJIL,theriskmanagementprocessesisinplace.However,furtherthekeystagesofa sustainabilityriskmanagementprocessinclude;
Identifyandassesskeyrisksandopportunities.
Workaspercommitmentandprovidereassurance
DefineCompany’ssustainabilityriskstrategy
Identifysignificanceandprioritiesformarketopportunities
Implementriskmanagementplan
Monitorandreview
Establishprocessforcommunicationtointernal&externalstakeholders.
Aneffectiveriskmanagementframeworkenhancestheorganization’sabilitytoproactivelyaddressitsrisks&opportunitiesbydeterminingariskresponsestrategy&monitoringitsprogressonadynamicbasis.This,ineffect,helpsindrivingcontinuedcompetitivesustainabilityofanorganizationasitenablesalignmentofitsoperationsandactivitieswithitsvisionandvalues.
Inthecurrentbusinessclimate,wheretherearereputationthreatsandarisingpoliticalbacklash,thecompanieswillneedtotreadcarefullytomaintainthetrustofpublic. TheCompany’sturnoverandprofitcanbechallengedbysomeofinternal&externalchallenges.TheCompanyhaspotentialtoconvertthesechallengesintoopportunitieswithanobjectiveofcreatingvalueasperaboveriskandopportunitymanagementprocess.Thereviewofthekeyimpacts,risks&opportunitiesfortheCompanyispresentedbelow;
pOTenTial finanCial impliCaTiOns and risK TO prOfiTabiliTy As part of Company’s growth strategy, the plan is to expand production capacity& services and further acquiring and developing new
5.0 Risks and Opportunities
Jubilant Industries Limited Corporate Sustainability Report 2010-11 24
5.0 Risks and Opportunitiesbusinesses&productsinthegrowingmarket.However,thereisafinancialrisk,ifnotcompletedinscheduledtimeorwiththeestimatedresourcesforthesame.Tomitigatethisrisk,theCompanyhasastrongteamforeffectiveimplementationofsuchprojectsinstipulatedtimeand resources.
IftheCompanycannotmaintaincostefficiencyintheproductsegments,itmaynotbeabletocaptureanticipatedbusinessopportunitiesoritmaylosemarketshare,asaresultofwhichitsbusinessfinancialconditionandresultsofoperationsmaybeadverselyaffected.Understandingthisasanopportunityanddriverforbusinessgrowth,theCompanyfollowsleanmanufacturingtechniques,alternateresourcemanagementandsixsigmainitiatives.SignificantvariationsinthecostandavailabilityofrawmaterialsandenergymayreducetheCompany’soperatingresults.Ingeneral,thepricesandavailabilityoftherawmaterialsandenergymayvarywithmarketconditionsandmaybehighlyvolatile.Whereverfeasible,TheCompanyentersintolongtermcontractswithvolumecommitmentsandpriceswhicharelinkedtokeyinputmaterialpricestomitigatetherisk.
risKs due TO regulaTOry requiremenTForcontinuedoperationsof theCompany’smanufacturing facilitiesandtomeetthegrowthplansbycapacityexpansion,environmentalapproval isvery importantandnecessary.Theseenvironmentalapprovalsaresubject to thecompliancewith therecommendationsandnormssetbythestatutoryauthorities.Anynoncomplianceinthese,mayleadtodiscontinuationofoperationsordelayinrequiredapprovalforcapacityexpansionorgreenfieldprojects,thismayleadtohighercost.Toavertthisrisk,theCompany’sproactiveapproachforcomplianceprovidesanopportunityoftoavoidthedelayinenvironmentalapprovals.
TheEnvironmentalperformancemonitoringmechanismisputinplacetomapandtrackallsuchoperationsandisreviewedtimetotime.Similarly,foranynewactivitiesenvironmentalandSafetyrelatedaspectsareassessedattheprojectstagealongwithitsmanagementplan.Basedonwhichprocedureforobtainingtherequisiteenvironmentalapprovalsforanynewplant/expansionisinitiatedbeforehand.
TheCompanybelievesthatcompliancewithstringentenvironmentalregulationsmayaffectthebusiness.SomeofCompany’smanufacturingoperationsinvolvehazardouschemicals,processesandby-products.TheCompanyanticipatesthatenvironmentallawsandregulationsinthejurisdictions,whereitoperates,relatingtothedischarge,emission,storage,handlinganddisposalofavarietyofsubstancesthatmaybe used in or result from its operations,may becomemore restrictive and enforcedmore strictly in the future. It also anticipates thatcustomerrequirementsastothequalityandsafetyofproductionprocessesandproductswillcontinuetoincrease.Inanticipationofsuchrequirements, theCompanyhasallocatedadequateresourcestoproactivelyadoptand implementcontrolmeasuresto itsadherencetoenvironmentalqualitystandardsandenhanceitssafetylevels.
At JIL, thechallengesduetocompany’soperationsrelatedtoEnvironment,HealthandSafety (EHS)aspects for thebusiness,employees &societyaremappedandmitigatedthroughaseriesof systematicanddisciplinedsetsofpoliciesandprocedures,whichareexplained below;
For existing plant operations, the audit team reviews the system regularly to achieve the overall objective of the organization andsustainability.
Assessmentof EHSaspects at the capital expenditure stageof thenewprojects aswell as expansion to address the same includingassessmentofneedtohaveseparateapprovalsand/orthesystems&investmentsaccordingly.
CarryoutEnvironmentalImpactAssessmentstudyfortheprojectsasperthestatutoryrequirementandobtainapprovalpriortosettingupofnewplantorexpansionofexistingfacilities.DeveloptheEnvironmentManagementPlantominimizetheimpactsidentified.
TheCompany’soperationsaresubjecttotheoperatingrisksassociatedwithChemicalmanufacturingandFertilizersincludingrelatedstorageandtransportationofrawmaterials,productsandwaste.Thesehazardsinclude,amongotherthings:pipelineandstoragetankleaksandruptures;Fire&explosions;andDischargesorreleasesoftoxicorhazardoussubstances.Suchhazardsmaycausepersonalinjury,propertydamage and environmental contamination, andmay result in the shutdown of affected facilities and the imposition of civil or criminal
Jubilant Industries Limited Corporate Sustainability Report 2010-11 25
penalties.Theoccurrenceofanyof theseeventsmaysubject theCompany to litigationand/orsignificantly reduce theproductivityandprofitabilityofaparticularmanufacturingfacility.
Tomitigatetheserisks,theHAZOPisalsousedforhazardidentificationprocesswhereintherisksareinvolved.Ateachandeverymanufacturingunit,regularsafetytrainingisalsoimpartedtoallconcernedtoupdatetheirskillsandresponsivenessonSiteEmergencyPlanstocontroleventuality,ifany.
TheCompanyhasprocessesinplaceforriskidentification,monitoringandmitigationandincidentmanagementrelatedtoemployeeandenvironmentalprotection,facilities,assets,products,compliance,reputationandcommunications.
Tomeetwiththeproductrequirementvariouschemicalsarehandledasrawmaterials,intermediatesorfinishedgoods.Someofthemarehazardousinnature,whichmayposefire/explosionhazardortoxicrelease.Similarly,incaseofanymajordeviationofoperatingparametersinmanufacturingfacilitiesmayresultintosomeundesirableincident.ThesafetycontrolmeasuresareinplaceinalltheunitssuchasproperselectionofMaterialofConstruction(MOC),Safetyreliefvalves,interlocks,FireHydrantsystems,etc.aspertherequirement.Inadditiontothis,eachandeveryactivityiscarriedoutasperdefinedSafeOperatingProcedures(SOP)andOperatingguidelinesforsafeoperations.TheCompanyhasalsotakenaPublicLiabilityInsurancepolicyforallmanufacturingunits.
AllthemanufacturingfacilitiesofJubilantIndustriesLtdexceptKapasanareaccreditedwithEnvironmentalManagementSystemISO14001andOccupationalHealth&SafetyAssessmentSeriesOHSAS18001certifications,whichexhibitscompany’scommitmenttowardssystemizedapproachforEnvironmentandSafety.TheGajraulaandSamlayaoperationswerecertifiedtomanagementsystems,howeverduetodemergerthecertificateinthenameoftheCompanyareawaited.
Single super phosphate business is likely to be affected by government regulatory controls on subsidies, pricing, disbursements and distribution. Any changes in public policy such as removal of price controls or pricing fluctuation or reduction/removal of subsidies ordisbursementofsubsidiesmayreducetheprofitabilityof thebusiness. However,company iskeepingagoodtrackonthesechangesofpoliciesandpricingetc.
risK due TO prOduCT sTandard COmplianCe
TheCompanyisgovernedbytheFertilizerControlOrder,1985underwhichitrequirestoobtainacertificateofregistrationtosell,offerforsaleorcarryonthebusinessofsellingoffertilizeratanyplaceasawholesaledealerorretaildealer.Further,certainproductsarerequiredtoconformtothestandardsasnotifiedbytheCentralGovernment/StateGovernmentintheOfficialGazette.IftheCompanyisunabletoobtaintherequisiteregistrationsorifitfailstoconformtothenotifiedstandards,thebusinessmaybeadverselyaffected.TheCompanyhasobtainedaCertificateofRegistrationtosellandmaintainthequalityoffertilizerproductsaccordingly.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 26
5.0 Risks and OpportunitiesSimilarly,theSolidPVAandotherperformancepolymersalsorequireasetofqualitynormsforthevariouscustomers.Theseareobtainedasperqualitycontrolprocedures.
ToavoidtheadverseimpactontheCompany’sbusiness,aQualitypolicyhasbeenframedandrobustqualitycontrolandassurancesystemaredevelopedatalltheunitstoconvertthisriskandemergeasaqualityproductprovider.
risK due TO ClimaTe Change TheagriculturaloutputofIndiaissignificantlydependentuponweatherconditionse.g.monsoon,floods,draughtsetc.andmayaffecttheconsumptionoffertilizers.TheriskduetoClimatechangemayresultindecreaseinrainfallandreducedagriculturalproductionorviceversaduetoclimatechange.ThismayultimatelyandadverselyaffectCompany’sbusiness.
LowwoodavailabilityinthefutureduetoClimatechange,ifany,orincreasedusageofpre-laminatedboardsduetomodernconstructionmayresultincrease/decreasetheuseofwoodadhesives,whichmayeitherhaveanadverseeffectoncompany’sbusinessorimprovethebusinessprofitability.
planT shuTdOwn / disrupTiOn / reduCed CapaCiTy uTilizaTiOn risK
TheCompany’sbusinessisdependentonthemanufacturingunits.Thelossduetoshutdownofoperationsatanyofmanufacturingfacilitywillhaveanadverseeffectonthebusiness.ThemanufacturingplantatGajraulaandSamlayadrawtheutilitiesfromJubilantLifeSciences.TheeffluentiseithertreatedordisposedthroughJubilantLifeScienceseffluenttreatmentplantfacilityaspertheregulatoryconditions.AnydisruptioninunitofJubilantLifeSciencesLtd.mayaffectcompany’smanufacturingoperationsattheselocationsalso.However,theregularpreventive / operativemaintenance system followed at the plantswill help tomaintain the infrastructure facilities as per requirement.Further,JubilantLifeSciences,beinganenvironmentalconsciouscompanyalsomaintainstheinfrastructurefacilityandkeeptheregulatorycompliance inplace.Forutility,effluenttreatment,solidwastedisposal,Firefightingetc. Jubilant IndustrieshassignedagreementswithJubilantLifeSciences.Inaddition,adequateinsuranceprotectionhasbeentakenbytheCompanytoensurecontinuityinitsearningcapacity.AtGajraula,presenceofamajorworkforceinJLL’sresidentialcolonyadjoiningplantpremisesensuressustenanceofplantoperationsunderchallengingcircumstances.Duetothis,therewillnotbeanyimpactoncompany’soperation. The operations could also be affected by strikes,work stoppages or increasedwage demands by the employees. The Companymakescontinuouseffortsformaintainingtheharmonytoavertthisrisk.
Thedemandforpolymerproductusedinthemanufactureoftyres isdirectly linkedtotheperformanceoftheautomobile industry.AnyreductionindemandforautomobilesindustryduetoimportoftyresorchangeinGovernmentpolicymayleadtoaconsequentreductionindemand&reducedcapacityutilizationforthesame.
risK due TO prOfessiOnal TalenT
The Company’s dependence on Human Talentmakes it very important that it recruits and retains high quality employees. In case theCompanyfailstohireandretainsufficientnumbersofqualifiedprofessionalsinallfunctionssuchasmanufacturing,finance,marketing&sales,informationtechnology,humanresourcesandmanagement,it’sbusinessoperatingresultsandfinancialconditioncouldbeharmed.
TheCompanyhascommittedsubstantialresourcestothiseffort.Toexecute itsgrowthanddiversificationplans,whileononehand,theCompanycontinuestohirenew,highly-skilledscientificandtechnicalpersonnelattheOperationallevel.TheCompanyattractsthebesttalentinManagementpositionsandLeadershipLevels.TheHumanResourcesPoliciesareemployeefriendlyandsodesignedsoastopositivelyimpacttheEngagementlevelofEmployees.TheRewardRecognitionProgram,theCompany’sEmployeeWellnessProgram,aresomesuchprogramsthattheorganizationgivesduefocusontoimproveTalentRetention.Thejob-rotationandgrowthopportunitiesprovidedwithintheorganizationareagoodwayofengagingtalent.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 27
Astheworldgrappleswiththegrowingimpactofclimatechange,societyisincreasinglyconcernedaboutGreenHouseGases(GHG)emissionsleadingtodroughts,floods,hurricanes&climateextremes.Nocountryorbusinesscanignorethecostof‘no’or‘deferred’actionformitigationofClimatechangeasitwillbehigherthanthe‘right’actiontoday.
TheCompanyisconsciousthattheClimateChangeandGlobalWarmingarechallengesthatneedtobeaddressedindividuallyaswellasatgloballevelforsurvivalandsustenanceofhumanbeing.Livingmoresustainablyisoneofthegreatestcollectivechallengesastheworld’sgrowingpopulationplacesoverevergreaterdemandsonitsnaturalresources.
ThestoichiometricquantitiesofCO2arereleasedforeverytonnesofcoalusedforgenerationofheatenergyintheformofsteamorhotairusedincompany’sprocessplants.CO2isalsogeneratedindirectlybytheuseofelectricityinvariousplants.However,variousinitiativesaretakenbytheCompanytoreduceitscarbonfootprintwhichincludesenergyconservationalso.Theinitiativesatlocationsinclude:
AtGajraula, inSPVAplant,theoperationoftheairblowerduringtheheatingmodeisoptimizedtosavepowerbyswitchingovertoon-offmode from continuousmode. These initiatives have reduced indirect energy consumption and the reduction achieved is in Powerconsumptionisapprox.5500kWh.Also,AirConditioners(Equivalentto120TR)werereplacedwithacentralizedchilledwatersystemthatsavesenergy.Greeneryincreasedbyapprox.1000sq.metersaroundpolymer&Fertilizerplants.Awarenessprogramonclimatechange,itscausativefactors&mitigationwereconductedforemployeesandtheirfamiliesanduseofenergyefficientelectricalappliancessuchasCFLsisencouraged.AtnewcorporateofficeoftheCompany,onlyCFLareinstalledforlightingtoconserveenergy.
6.0 ClimateChange& SustainableBehaviour
Jubilant Industries Limited Corporate Sustainability Report 2010-11 28
6.0 ClimateChange& SustainableBehaviourAtSamlaya,aseparateheaterforbarrelisinstalledformeltingofoneoftherawmaterial,HydrogenatedTelloFattyAcid(HTFA)handledinbarrelswhichnotonlymadetheactivitysaferbutsavedsteamconsumptionby60%whichwasearliermanuallyusedformelting.Inaddition,thishaseliminatedslipperyfloor&likelihoodofburninjuryduetomanualoperation.
Thetotalindirectenergyconsumptionispresentedbelow:
s.no. parameter unit Value
1Electricity Purchased KWh 22316135Energy Peta Joules 0.08
2Steam Purchased MT 13476Energy Peta Joules 0.04TotalIndirectEnergyConsumed Peta Joules 0.12
AtKapasan,VFDdrivesareusedinACmotorsforsavingenergy.Also,naturallightisusedduringdaytimeinoffices&usedpapersareusedasnotepads/writingpads/Internalprintingand&photocopyforconservationofpaper.TheCompanyactivelyparticipatedinGreenRajasthancampaignoftheGovernmentofRajasthanfortreeplantation.Inaddition,saplingsweredistributedtotheSchoolsinthevicinityofplant,VeterinaryhospitalandalsotothecommunityinSinghpur&Narellavillages.
Thetotaldirectenergyconsumptionfromfossilfuelispresentedinthetable.
s.no. parameter unit Value
1Coal MT 5412Energy Peta Joules 0.09
2LDO MT 73Energy Peta Joules 0.003
3HSD MT 233Energy Peta Joules 0.01
4FO MT 806Energy Peta Joules 0.03TotalDirectEnergyConsumed Peta Joules 0.14
before – Practice of Melting HTFA by using steam through loose pipes.
After – Heating unit for Barrel at Samlaya
Jubilant Industries Limited Corporate Sustainability Report 2010-11 29
AtGajraula&Samlaya,powerandsteamisprovidedbytheJubilantLifeSciences.AtGajraula,thepowerisproducedprimarilyfromcoalofwhich0.2%isfromHSD.Duringtheyear,indirectenergyuseis0.04Petajoules.
TheCompanyismakingcontinuouseffortstofurtherreduceitscarbonfootprintthroughvariousinitiativeslike:
ImplementationofClimateChangeMitigationPolicyadoptedonDecember4,2010.
Involvementofemployees tocreateawarenessaboutclimatechangeand inculcateresponsiblebehaviour inday-to-dayactivities like replacementofordinarylampswithCFLsandusingnaturallightduringdaytimeinofficesandathomewhereverfeasible.
CelebratingWorldEnvironmentday,Earthhourandothereventsforcreatingenvironmentalawarenessatalllevels.
Continuetoinvestininformationtechnologytoreducetheneedtotravelforinternalmeetings.
ThrougheachofCompany’slocationhasspecifictransportplans.However,it isencouragedtostafftousethelowestcarbonmodeof travelforbusiness-relatedjourneysandtraveltowork,wherepracticable.
TheGHGemissionsasperScope1andScope2of theCompanyGHGemissionsare12512tCO2eand16819tCO2erespectively.This iscalculatedonthebasisofweightedaverageemissionfactorasperUserGuideVersion6.0ofMinistryofPower,GovernmentofIndia.ThesteamgenerationatGajraulaisfromcoalandatSamlayaisfrombiomass.AtGajraula,theCompany’skeyrawmaterialrockphosphateisreceivedthroughrailwayracksfromJanuary2011onwardswhichwasearlierreceivedthroughtrucks.Thisinitiativeisatestimonyofcompany’scommitmenttowardsmoresustainabletransportthathasreducedindirectGHGemissionthoughnotquantifiedandincludedinthereport.
OntheoccasionofEarthHouronMarch26,2011,CEOandWholeTimeDirectorreleasedamessagewithanappealtoallfortheirparticipationinEarthHourandcontributeformitigationofclimatechangeanddemonstrateresponsibilitytowardsMotherEarth.
Come & join to Commemorate earth hour 2011March 26, 2011, from 8:30 p.m. to 9:30 p.m
AmailonEarthHourwascommunicateddownthelineamongallresidentsandemployeesforawarenessabouttheeventandthiswasalsodisplayedonthenoticeboards.
AtGajraula,theresidentsinthecolonywererequestedtoswitchoffthelightsandeverybodycametogetherforthisgreatglobaleffort.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 30
6.0 ClimateChange& SustainableBehaviourAmessagewascirculatedtoallconcernedintheCompanybyCEOandWholeTimeDirectoronconservationofpreciousresourcesforourplanetbysettingexamplesforotherstofollow,especiallyourfuturegenerations.Everyonewasrequestedtoconserve:Paper–byviewingonelectronicmedia/PC,etcanddesistingfromtakingprintoutsunnecessarily;Water–bybeingcarefulinusageinhomes,offices,publicplaces,etc.;Power–byswitchingofflights/fans/TV’swheneverleavingaroom,bynotswitchingonanylightduringdaytimewhereverpossible,etc.;
TherearenoemissionsofozonedepletingsubstancefromtheCompany’smanufacturingprocesses.Further,theCompanyneitherusesCFCsinitsoperationsnorusesanyproductswithCFCs.TheCompanydoesnotpurchaseanyCFCdirectlyorequipmentcontainingCFC.UndertheMontrealProtocoltheuseofHCFCispermittedinIndiaandcompanyistopingsomeoftherefrigerationsystemforwhichdataiscurrentlynotmonitoredbecausethisispermittedasperOzoneDepletingSubstances(RegulationsandControl)Rules,2000,MinistryofEnvironment&Forests,GovernmentofIndia.TheuseofHCFCispermittedtill2015andcompanywillmakesuretobuyequipmentwithoutHCFCafter2015.
A Sustainability Council has been constituted at the corporate office of Jubilant Industries under the chairmanship of CEO andWholeTimeDirectortodrivetheSustainabilityinitiativesforintegratingwithbusinesses.ThemembersofthisSustainabilityCouncilarefromHR,Manufacturing,Business,FinanceandCorporateGovernancetostrengthenintegrationofSustainabilityintobusinesses.ThisissupportedbytheCorporateGroupofEHS&CSRofJubilantLifeSciences.Anin-housetrainingsessiononSustainabilitywasorganizedinDecember2010forthemembersofthecommitteeandotherstaffoftheCompany.
ThiscouncilwillworktoattainSustainabilityaspertheMission,Vision,PromiseandPoliciesonClimateChange,Environment,HealthandSafetyandGreenSupplyChain.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 31
7.0 Caringfor EnvironmentAs an environmentally responsible company, continual efforts are made to reduceenvironmental impact through an extension beyond mere statutory compliance. TheCompany follows the 3R approach – Reduce, Reuse and Recycle; to conserve naturalresourcesandminimizeenvironmentalimpact.
TheEnvironment&SafetymanagementisestablishedasalinefunctionandtherespectiveLocationUnitheadsareresponsibleformeetingallEnvironmental&Safetyrequirementsatvariouslocations.However,ateamofcompetentandexperiencedprofessionalsisresponsibleinEHSdepartmentatalllocationsandtheyreporttoChiefofEHS&SustainabilityatCorporateoffice.
waTerThe Company understands business risks and opportunities relating to water scarcity and is committed to promote responsible watermanagement.TheCompanyacknowledgedthefundamentalneedformoredetailedworkonwaterconservation,efficiencyandproductivity.ThestrategyadoptedbytheCompanyistousewaterefficiently,recycleandreusewhereverpossible.
TheCompanymonitorstheamountofwaterusedbyindividualunitstoimprovetheconsumptionnormsbyimplementingvariousconservationefforts.Forminimizingusageofwater,variouseffortssuchasmoppinginplaceofhosingforcleaningoffloors,reusinglowgradedproductsforcleaningtheblendingvessels&reactorsofhighgradedproductsandregularmonitoringofwaterusageetc.arepracticedintheplants.
ThewateratGajraula,NiraandSamlayaunitsaresuppliedbyJubilantLifeSciencesaspertheagreement.
ThewaterconsumedinSPVAplantatGajraulaisreducedbyreductioninnumberofwashingofpolymerfrom3toonewashingandtheconsumptionhascomedownfrom2.5KL/MTto1.5KL/MT.Thishasresulted inTotalwaterreductionofapproximately600KL/Month.
TheCompanyhas also implemented rainwaterharvesting inorder to recharge thegroundwater.Toconservewater,recyclingofcondensatefromtheprocessispracticed.The Company continuously strives to reduce its water consumption and modifyprocessesthroughR&Defforts.
rain waTer harVesTing sTruCTure aT Kapasan
ground water55317 Kl
municipal & Other Utilities Water
194517 Kl
surface water12941 Kl
2010-11
Jubilant Industries Limited Corporate Sustainability Report 2010-11 32
7.0 Caringfor EnvironmentTheeffluentmanagementisonhighpriorityfortheCompanytoreduceitsecologicalimpact.TheCompanyisencouragingandfollowinginnovativeandefficientwaystoreducetheeffluent.Thereisnodischargeofeffluentfromanyofthemanufacturingfacilitiestoanysurfacewater body. The treated effluent is utilizedwithin the plants for horticulture purposes at all locations except Samlaya& Sahibabad. AtSamlayaunit,1781KLeffluentisdischargedthroughthefacilityofJubilantLifeSciencesforfurthertreatment&disposaltocommoneffluenttreatmentfacility.AtSahibabad,thetreatedeffluent240KLisdischargedintomunicipalseweraspertheconditionoftheStatePollutionControl Board.
AmajorachievementhasbeenproductionofSodiumSilicoFluoride(SSF)fromthewastescrubberwaterusedintheproductionprocessoffertilizerSingleSuperPhosphate(SSP)atKapasan.
Regular operations related to Effluent Treatment Plant and other environmental control measures are included in the overall cost ofmanufacturingoperationsofrespectiveunits.Inthereportingyear,theCompany’sexpenditureonenvironmentalprotectionamountedtoapprox. `4.6Million.
air emissiOns TheCompanyconsiderscleanairasanassetandcontinuestoenhancethetechnologyandupgradeprocessestoreduceitsimpactonthequalityofair.Airemissionsourcesaremainlyfluegasandprocessemissions.TheCompanyhasinstalledadequatetreatmentfacilitiestoensurenecessarycompliance.ThefluegasemissionsmainlyfromBoilers,FurnacesandDGsets,etc.areprovidedwiththeadequateheightofstackforeffectivedispersion.Forcontrolofparticulateemissionsmulticyclonesandbagfiltersareprovidedtomeetthestipulatedstandards.Regularmonitoringofallstacksiscarriedoutbythirdpartyalsofortheconcentrationofpollutantsbeingreleasedintotheatmosphere.Theairemissionsarewellwithinthelevelsstipulatedbytheregulatorybodiesandthesereportsaresubmittedtotheregulatoryagenciesperiodicallyasandwhenrequired.
TheCompany’sdirectemissionsofSO2,NOX,andparticulatematteraregeneratedmainlyfromtheusageoffossilfuelandfromtheprocessventsinitsmanufacturinglocations;whileindirectemissionsarethosegeneratedfrompurchasedelectricity.TheCompanymonitorsSO2
as well as NOx emission from its various manufacturinglocations.Thedetailsoftheseemissionsaregivenbelow;
TheCompanyusesthebesttechnologycurrentlyavailableandairpollutioncontrolequipmentatitsvariousmanufacturinglocationstominimizetheadverseenvironmentalimpactsdueto emissions.
Regular monitoring of the environmental parametersas suggested by regulatory agencies is carried out at allmanufacturinglocationsandreportsareregularlysubmittedto the statutory and regulatory authorities. The variousemission analysis confirm that existing emissions complywith the requirements and are well within the limitsspecifiedbytheregulatoryagency,asapplicableatrespectivemanufacturinglocations.ThesesystemsenabletheCompanytotrackemissionperformanceandtherebyreducetherisktocommunitiesandstafflivinginthevicinityofmanufacturinglocations.
2010-11150.00
100.00
50.00
0.00SO2LOAD142
PMLOAD73
NOXLOAD9
mT/
an
nu
m
Jubilant Industries Limited Corporate Sustainability Report 2010-11 33
wasTe uTilizaTiOn TheCompanyiscontinuouslyworkingtowardsWasteMinimizationthroughsystematically“reducingwasteatsource”.Thevariousmeasuresinclude; Preventionandreductionofwastegeneration Efficientuseofrawmaterialsandpackagingmaterials Encouragingre-use,recyclingandrecovery.
TheCompanygeneratesverylowquantityofhazardouswastefromitsoperationsandfollowsmethodologiestoreusethewastegeneratedintheplants.ThesulfurfromsludgeisreusedinthefertilizerplantatGajraulaUnit.AtSahibabad,waterbasedproductsreactorwashings,blenderwashingsandfiltrationwastearereusedinprocessforvariousproductsandmeetsthespecifiedproductquality.ReuseofSilicainSSPisanotherexampleofwasteutilizationinthefertilizerplantsatGajraula&Kapasan.
The hazardous wastes generated from Company’s operation are categorized into incinerable and non-incinerable wastes. At Gajraula,incinerablewastesareincineratedatSolidwasteincineratorofJubilantLifeSciences.However,atotherlocations,incinerableaswellasnon-incinerablewastesaresenttoauthorizedtreatment&disposalfacilityaspertheregulatoryrequirements.
Non-incinerablewastesatGajraulaaredirectlydisposedtoSecuredLandfillFacility(SLF)ofJubilantLifeSciences,whilethewasteoilgeneratedfromtheCompany’soperationissoldtoauthorizedre-processors.Thehazardouswastesduringtheyearweredisposedoffasperrequisiteapprovals.ThehazardouswastegenerationismaintainedinForm3asperprevailinglawsanditsdisposalismentionedbelow:
At Sahibabad, 215 L of used oil was sent to authorized disposal facility. TheCompanyhasalsosoldnon–hazardousmaterialsotherthanflyashduringthereporting year, which falls in the category of scrapmaterial. Thesematerialsincludemetal, plastic scrap, paper, packagingmaterial etc. The total quantitydisposedis42MT.
TheCompanyhasinitiatedproperdisposalofe-wastecomprisingofdiscarded,obsolete, or brokenelectrical or electronic devices. TheCompany’s operationinvolvedlotofchemicals,solventsaswellasotheraqueousmaterialandwastewater.Theoperationsarewellequippedwithstorage,handlingandtreatmentfacilitiestoavoidanyspillage.Nospillagewasreportedfromanyoftheoperationsduringthereportingyear.
The Company has not transported, imported, exported, or treated wastedeemed hazardous under the Basel Convention. During the reporting period,
WastemanagementpracticesareinlinewiththedisposalprocessstipulatedbytheStatePollutionControlBoardsandarewellwithinthepermittedlimits.
AllthemanufacturinglocationsoftheCompanydonotfallinoradjacenttoProtectedArea,Sanctuary,ReserveForestsorareaofimportanceofBiodiversity.Themajorunitsarelocatedinindustrialarea.Duetobetterenvironmentalmanagement,aestheticenvironmentaroundthemanufacturingfacilitieswasobservedtobeconduciveasanaturalhabitatformanybirds.TheCompanyhasalsoconductedAvifaunastudiesearlier.TheCompanydoesnothaveactivities,productsandservicesinprotectedareasandsohasnoimpactonthebiodiversityofsuchareas.
solid waste to slf (mT)
15.8
in-house reuse (mT)
385.5
solid waste incinerated (mT)
35.8
hazardOus wasTe
Jubilant Industries Limited Corporate Sustainability Report 2010-11 34
8.0 ContinualFocuson SafetyTheCompanyaimstoimprovethework-lifequalityofitsemployeesbyprovidingasafeandhealthyworkingenvironment.TheCompany’sapproachtohealthandworkplacesafetyisguidedbyitsEnvironment,HealthandSafetyPolicy.
At JIL, the challenge is to consistently maintain high safety standards that safeguard the health and wellbeing of employees and thecommunity.TheCompany’ssafetypracticesandoccupationalhealthfacilitiesareofhighstandard&bestpracticesandsubjectedtoongoingupgradation.
TheCompany intends that thebehavioralapproach to riskawarenessandmanagementwillmakeamajor contribution in reducingandimprovinghealthintheworkplaceacrossallthemanufacturinglocations.
a gOOd safeTy reCOrdTheCompanyaccidentrecordisgoodthroughthereportingofunsafeactsandconditionsthatcouldresultinanaccident.TheCompanywillcontinuetocampaignforincreasedawarenessandemployeeengagementatalllevels.TheCompany’sapproachforidentifyingunsafeactsandunsafeconditionsandtakingappropriateactionisessentialtoachieveimprovementinsafetyperformance.
Duringthereportingyear,therewasnoreportableaccident.However,therewasaminoraccident(non-reportable)toamaleemployeeatGajraulaunitresultinginoneman-dayloss.Thetotalaccidentfreeman-hoursoftheCompanywere2.6millionhoursduringthereportingyear.TheCompanywouldcontinueitseffortsonsafeworkpracticesalongwithstrengtheningofSafetysystemsincomingyearstoo.
safeTy mOTiVaTiOnTheCompany’sapproachtohealthandworkplacesafetyisguidedbyitsEnvironment,HealthandSafetyPolicy.“EnsureSafe&HealthyWorkEnvironment”isincorporatedintheCompany’sEHSpolicy,whichiswidelypublicizedandusedacrossalllocations.TheCompanyorganizedvarioussafetycompetitionsandprogramsatvariousmanufacturing locations forcreatingsafetyawarenessonMarch4,2011,beingtheNationalSafetyDay.Onthisoccasion,safetypledgewasalsoadministeredbyrespectiveUnitHeads&EHSheadstoreiteratesafetyoffsiteaswellasintheworkplacebetreatedwithutmostimportance.
Fire drill at Gajraula
Jubilant Industries Limited Corporate Sustainability Report 2010-11 35
safeTy embedded in TrainingThesafetyculture isa suiteof trainingcoursesandworkshops, tailored to theneedsofemployees ranging fromnewrecruits to seniormanagersandaddressingpersonalsafety,systematicfailuresandriskmanagement.
Training initiatives covers process safety, emergency preparedness, use of self-contained breathing apparatus, emergencymanagement,emergencykithandling,firesafetyandprevention,firefighting,generalsafety,materialhandling,first-aidtraining.Regulartrainingiscarriedoutduringtheyeartoraiseawarenessandencouragesafebehaviourinallwork-relatedactivities&alsoextendstotheoffsitesafety.
Employeesacrossranksarealsosentforexternaltrainingprogramsandseminarscoveringsafety,environment,managementdevelopmentandtechnicaltraining,etc.
managing safeTyTheCompany’sEHSpolicyrecognizesthecompliancetoregulatorystandardsonenvironment,healthandsafetyandateachmanufacturinglocationhasEHSExecutive/managerresponsibletooverseeandensurethecomplianceofenvironment,healthandsafetyrequirements.TheCompanyidentifiedandminimizedworkplaceandexternalhealthrisksandpromotedbetterhealth&safetyawarenessthroughthefollowinginitiatives:
In-househealthcarefacilities,first-aidandemergencycareservicesforallemployees
Full-time/Visitingdoctorsattheplantandparamedicalstaffaton-siteclinic
RegularEmployeehealthchecks
Safetycommitteemeetingatvariousmanufacturinglocationsatregularinterval
Conductedregularsafetyaudits
Trainingprogramonawarenessforworkplacesafetywithregularcampaignstospreadthemessageofsafety
Usageofandmonitoredsafetyprotectionequipmentlikesafetyhelmets,glovesandotherPPEsetc
Conductregularmockdrillsinvolvingconcernedpersons
ConductSafetyDaycelebrationsemployeesandcommunityinvolvement
AtGajraula,flammablesolventssuchasAcetone,Xylene&Tolueneetc.arestoredintankstoavoidfugitiveemissions.Earlierthiswasbeingstoredindrums. Further,safetysystemforNitrocellulosestorage isalso improvedby installationofsprinklersystem.InSolidPVAplant,mediumvelocitywatersprinklersystemforprocessareahandlingflammablematerialisinstalled.Afterthedemerger,assemblypointswererelocatedandOnsiteEmergencyPlanrevisedtomeetwiththesafeandquickresponseincaseofanyemergency.Theevacuationdrillisalso
Safety rally during safety day celebration at Gajraula
Safety tool talk in the powder processing room at Gajraula
Safety talk among operating personnel at Gajraula
Jubilant Industries Limited Corporate Sustainability Report 2010-11 36
8.0 ContinualFocuson Safetyconductedregularly.InSulfuricacidplantarea,ecoventilatorsareinstalledandfugitiveemissionsofsulfurreducedintheworkplaceareaofsulfurmeltingsection.
ToimprovisetheresponsesystemandprecautiontoavoidfirethreatatSahibabadunit,automaticfiresprinklersystemhasbeenimplementedinthereportingyear.Underthisexercise,varioussectionsofrawmaterialaswellasfinishedgoodsstoragehavebeencovered.
TheCompanyengageswiththemediaonaregularbasistoapprisethemoftheCompanydevelopmentsbeyondstatutoryrequirements.TheCompanyviewsmediaascriticalstakeholderswhohelptheCompanybuildaneffectivebrandimage.
DuringtheyeartheCompanyheldspecialmediabriefingstoinformabouttheCompany’sEnvironment,Health&SafetypracticesandCSRinitiatives.
emergenCy respOnse aT sahibabad
WATEr SPrInKLEr AT SAHIBABAD (WArEHOUSE)
Location identified for Assembly point in case of emergency. Yellow lines marked for people to stand in queue at the emergency assembly point.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 37
TheCompanyaimstocreateanenvironmentthatcanhelp,nurturetalentandhelppeoplerealise their potential. The Company’s comprehensive people policy is based onmerit-basedrecruitment,impartialperformanceappraisal;training-ledskillsetsupgradation,acompensationstructurebenchmarkedwith thebest industry levels.TheCompany isanequalopportunityemployerandpreferstohirethemiddle/seniormanagementalsofromthelocalcommunityatlocationsofsignificantoperationdependingontheavailability.
TheCompanybelievesinfairnessandtransparency,guaranteeingemployeesequalopportunitiesandamerit-basedstructure.Theresultisaworkplacefreefromdiscriminationorharassmentonthebasisofage,caste,gender,religionorothergrounds.TheCompanyprovidesmaternityleavetoaddressleaverequirementduringpregnancy&childbirthandthisisasperMaternityBenefitAct,1961andemployeereturntoworkafterparentalleave.However,duringthereportingyeartherewasonlyonecasewhereanemployeeavailedmaternityleaveandlaterreturnedtoworki.e.100%retention.TheCompanyhasadopteddefinedbenefitplansfortheemployeesasperthecurrentindustryscenarioaswellasalsointroducedvariablepayplanforseniormanagementtoattractthebestmanpowerandmaintainahighperformanceculture in the Company.
rewarding The effOrT Theemployeesare rewardedandpromotedon thebasisof theirperformance.All employeesareevaluatedaccording toa transparentperformanceappraisalsystem.TheCompanyrewardsthewilltosucceedandthedesiretocompetewiththebestintheworld.Theperformancedrivenculturethat’scalibratedthroughrigorousprocessesisgearedtorewardhighperformingindividualsandteamstoachievechallengingandstretchabletargets.TheCompanyhasReward&Recognitionprogrammetorecognizeindividualsandteams,inatimelyandeffectiveway,fortheirexceptionalcontributionstotheorganization.TheCompanyalsohasfollowingprogramthatsubstantiatethisphilosophy;
Appraisal system
BetterEmployeeEngagementprogram
SalesTalentandAppreciationProgram-STAR
IncentiveProgram
Variable Pay Plan
Sankalp is an employee suggestion scheme underwhich employees are given an opportunity to express their suggestions or ideas forimprovementinanyaspectoftheirworkenvironment.Thisschemepracticesthephilosophyofcontinuousimprovement.Thesesuggestionsarefilteredandevaluatedfortheirfeasibilityofbeingimplemented.Employeesgivingthebestoftheideasareappropriatelyrewarded.
TheGoalSettingProcessisarigorousexercisetakenupeveryyearandfollowsaTop-Downmethodology.Thishelpseachindividualknowwhathisobjectivesfortheyear.TheseGoalsaresetinlinewiththeOrganizationalPrioritiesandBusinessFocusAreas.TheperformanceofthetopexecutiveandmanagementisappraisedthroughafairandtransparentIT-enabledreviewsystemthatcouldbeviewedontheintranet.PerformanceReviewandDialogue-apost-appraisaldialoguetool-helpedsuperiorscommunicatewiththeirsubordinatesabouttheir expectations and guide the latter through individual goals,weaknesses, strengths, correctivemeasures, support and training. Thetrainingimpartedtonumberofemployeecategorywiseisasfollows:
Category Average no. of Employees no. of employee trained man-hours man-hour per employee per year
Executives 504 309 1828 6
Workers 139 171 825 5
Total 643 480 2653 6
9.0 SharingValue withEmployees
Jubilant Industries Limited Corporate Sustainability Report 2010-11 38
9.0 SharingValue withEmployeesThenumberofemployeestrained,traininghoursandaveragehoursoftraininginMan-hourperEmployeeperyeararegivenbelow:
year 2010-11
No.ofEmployeestrained 480
TrainingHours 2653
Averagehoursoftrainingperemployeeperyear 6
Toprovidefairredressalintheeventofanydiscrimination,employeescanseektheservicesofanombudsman.TheCompanydoesnothaveaspecificpolicyonhiringfromthe localcommunity.TheCompany isanequal-opportunityemployer.TheCompanytreatsallemployeesasequalanddoesnotdifferentiateonthebasisofcaste,genderorage.Thecriteriaforselectiontovariouslevelsaretheknowledgeandcompetencyoftheemployee.
Theeconomicbenefitsfortheemployeesarethedirectandindirectwages.TheCompanyensuresthatthecriteriaforminimumwagearemetforallworkersandothercadresrelevanttotherespectivelevelsofrecruitment.Thetotalpersonnelcostin2010-11amountedto`386.03 Million.TheCompany’sdefinedbenefitobligationisthegratuityscheme.
The Company has mediclaim health insurance (hospitalization) for employees & their dependents. The employees are covered underaccidental insurancepolicyandworkerscompensationpolicies.ApartfromESIcoverageasapplicableunder law,theCompanyfacilitatesprovidinghospitalisation,accidentalandtermlifeinsurancepoliciesforemployeesandworkers.ThecontractualemployeeshavealsobeenprovidedcertainbenefitslikesalariesasperMinimumWagesAct,ProvidentFund,ESIbenefitstomeethospitalizationrequirements.Alltheworkersarecoveredunderthecollectivebargainingthroughformalizegroup/committeeandthisis22%oftheCompany’stotalpermanentemployees asonMarch31, 2011.Nofixednoticeperiod ismentioned in collectiveagreementsbut theCompanygives sufficienttime,whereverrequired.TheminimumnoticeperiodgivenadherestotheprovisionoftheIndustrialDisputeAct,1947.
peOple sTrengThThetotalemployeestrengthinthemanagementandexecutiveis504asonMarch31,2011.Thisincludesemployeesofcorporateofficealso.Theworkersare22%ofthetotalmanpower.
lOCaTiOn Executives Workers Total
Corpoffice/Branches 315 0 315
Gajraula 81 104 185
R&D-I 12 0 12
Samlaya 33 14 47
Sahibabad 33 22 55
Nira 2 0 2
Kapasan 27 0 27
grand Total 503 140 643
Jubilant Industries Limited Corporate Sustainability Report 2010-11 39
Duringtheyear,theaveragenumberofcontractworkerswas730.Thegenderwiseandagewisecategorizationisshownbelow:
Age-Group gender
< 30 30-50 >50 F M
134 441 68 14 629
643 643
Theattritionrate is22.9%during thereportingperiod.Thisattrition ishighduetoyoungergenerationandentry level requirement formarketingoftheconsumerproducts.Infact,theattritionrateforlessthan30yearsofageisapprox.45%asgivenbelow:
yearAge-Group gender grand Total
< 30 30-50 >50 F M
2010-11 44.77 17.69 13.23 7.14 23.21 22.9
Human rightsTheCompanyethicsisgovernedbyaCodeofConductandseveralpolicies.Thesepoliciesencourageintellectualhonesty,employeesconduct,freedomof association etc. in every aspect. The Company advocates fair business practiceswhich are centered on transparency, equalopportunity,lawfulnessandintegrityofrecords.EachandeveryemployeeisgiventrainingontheCompany’spoliciesatthetimeofjoining,duringorientationandas&whenrequired.Thepoliciesareavailableonwebsite,handedovertoemployeesatthetimeofjoiningasEmployeeHandBookaswellasavailableondemand.Presently,allthepoliciesoftheparentcompanyareadoptedbytheJubilantIndustries.
TheCompanyfollowsallrelevant,applicablerulesandregulationsasdescribedbygovernancebodieswithregardtotheinclusionofhumanrights clauses in its variousagreementswith the suppliersandcontractors. TheCompany followsapolicyofnon-discriminationon thegroundsofgender,caste,religionandothers.Noincidenceofdiscriminationandgrievancerelatedtohumanrightswasreportedduringtheyear.TheagewiseandgenderwisenumberofemployeeswholefttheCompanyaregivenbelow:
yearAge-Group gender grand Total
< 30 30-50 >50 F M
2010-11 60 78 9 1 146 147
TherewerenosignificantinvestmentagreementsandcontractsthatincludeclausesincorporatinghumanrightconcernsincetheformationoftheCompanyduringthisyear.
TherearenoareasintheCompany’soperationswhererighttoexercisefreedomofassociationandcollectivebargainingmaybeatrisk.Asapolicy,theCompanydoesnotemploychildorforcedlabordirectlyorindirectlyinitsoperations.ThisisalsogovernedthroughtheGreenSupplyChainPolicyaswellasaddressedduringPartnersinProgressMeet,Individualdiscussionswithsuppliersduringnegotiationandinotherformalways.
AlltheCompany’soperationsarecoveredforhumanrightsreviewsand/orimpactassessmentduringinternalauditbyManagementAssuranceServiceatregularintervals.Therewerenogrievanceswithrespectivehumanrightsduringthereportingyear.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 40
9.0 SharingValue withEmployeesfun aT wOrKTheCompanybelievesthatpeopleperformtothebestoftheirabilitiesinorganizationstowhichtheyfeeltrulyconnected.TheCompanyiscommittedincreatinganinclusiveenvironment-onethatisprogressive,flexible,funandvaluestheindividualcontributionsofallthepeople.TheCompanyisproudtohaveaculturethatbringsoutthebestinindividualsandencouragesthemtopursueexcellence.
TheCompanykeepspeopleintellectuallystimulatedandgivesthemthefreedomtotaketheirowndecisions.Engagementactivitiessuchasbirthdaycelebrations,annualdaycelebrations,departmentalmeetsandget-togethersareapartofwayoflifeintheCompany.Beitafestivecelebrationorindividualacknowledgement,theCompanydoesitallinawaythatinvolvesandconnectstoall.CelebrationsontheeventsofHoli,Diwali,IndependenceDay,NewYearorChristmasareatimetosharejoystogether.Funactivitieslikeplayfulteamgames,Antakshri,passingtheparcel&manymore,improveemployeemoraleandareagoodstressbusterforemployeesoutofroutineworklife.
‘Disha’-TheinitiativeinassociationwithGallupiscompany’scommitmenttowardsacknowledgingtheopinionsofitspeople.
jubilanT wellness prOgramTheCompanyisconcernedaboutthewellbeingandhealthofitsemployeesandbelievesthatawell-designedwellnessprogramcanincreaseproductivity,boostmoraleandvitality,reducestress,reduceabsenteeism,andcontrolpreventablehealthcarecostswithinanorganization.Someofthewellnessinitiativesinclude
Pre employment health check up
MedicalservicesatManufacturingunits
ParttimemedicalconsultationatHO&R&DCenters.
SponsoredannualhealthcheckatHO–HDFCergo
ImprovedMediclaimservicesforemployeesandfamilies
EnhancedbenefitsonPersonalAccidentInsurance&GroupTermInsurance
VarioushealthchecksasrequiredundervariousStatuesatUnits.
HealthAwarenessthroughperiodicaltalks&articles likeonLifeStyleManagement,DietManagement,Respiratoryailments,Cardiac, CancerPrevention,EyeCare,Fitness&Exercise,Yoga&Meditationetc
HealthinitiativesforsurroundingcommunitythroughCSR.
Tieupswithmajorhospitalsinthecity
Jubilant Industries Limited Corporate Sustainability Report 2010-11 41
TheCustomerengagementinshapingabenefitservicehelpstoensurethatitisdeliveredinresponsetoknownneedsratherthanperceptions.Throughimprovedengagementwiththebenefitservice,theCompanydesignedtheapproachwhichgivesimprovementsdirectlyto customer needs.
TheCompanyworkscloselywiththecustomersandsuppliers,sothatservicescanbedevelopedtomeetlocalrequirementsinabalancedmanner.ThisallowscustomerssatisfactionaswellasavaluablecontributiontotheCompany’sgrowth.Theactivitiesidentifiedandpracticedat the Company are:
Measuringcustomersatisfaction
Developingcustomerservicedatasystem
Workingwithcustomers
Helpingstafftoworkwithcustomersatisfaction
The collection of customer feedback from a variety of sources helps to develop a balanced view of the service. The Company collectsinformationaboutcustomersatisfactionfromcomplaintsforms,mysteryshoppingexercisesandsurveysatcustomeraccesspoints.Theseareusedtoidentifyquickwinsandensureimprovementsareresponsivetocustomerneeds.
TheCompanyiscontinuouslyengagedtowardsproductsafetyinlinewiththevisionofnoaccidents,injuriesorharmtothepersonnelandenvironment.TheCompanyprovidescustomerswithproductsandservicesthatmeettheirneedsexactlyandprovidingnecessaryinformationandsupport,sothatcustomerscanusetheproductssafelyandeffectively.TheproductsatallthelocationsaremanufacturedwithhighestqualitystandardsaspertheQualityPolicyframed.Therobustqualitycontrolandassurancesystemarefollowedatalltheunitstodeliverqualityproductstothecustomers.
10.0Workingwith Customers
Jubilant Industries Limited Corporate Sustainability Report 2010-11 41
QUALITY POLICY
Jubilant Industries Limited endeavours to achieve the quality of products and
services that exceeds customer expectation by:
ŸContinuously exploring opportunities to upgrade manufacturing technologies
to achieve quality standards
ŸCreating a cohesive and motivated team through continuous training to
enhance knowledge and skills
ŸEnsuring compliance to the national and international regulatory standards
Ananda MukherjeeCEO and Whole Time Director March 30, 2011
Jubilant Industries Limited Corporate Sustainability Report 2010-11 42
Jubilant Industries Limited Corporate Sustainability Report 2010-11 43
TheCompany’sBusinessdoesnothaveanynon-compliancewithregulationsandvoluntarycodesconcerninghealthandsafetyofitsproductsduringthereportingyear.ThehealthandsafetyimpactsofproductsarestrictlyadheredtoaspertheprovisionsoftheFertilizerControlOrderandPesticideControlOrderfortheagribusiness.
TheSolidPVAproductsaresubject tospecificregulationsof theChinaFoodSafetyLawasper theDepartmentofCustomsand labelingrequirementoftheDepartmentofCustoms,KingdomofSaudiArabia(KSA),withregardtolabelingofSPVAbags,andpallets.TheCompanystrictlyfollowstheselawsandregulations.Therehavebeennoincidentsofnon-compliancewithregardtolabelingrequirementsofspecificCountriesofChinaandKSA.
However,forinformation&labelingonSingleSuperPhosphate(SSP)andAgrochemicalsmarketedbytheCompanystrictlycomplywiththeFertilizerControlOrder(FCO)asenforcedbytheMinistryofFertilizersandChemicals,Govt.ofIndia.Thelabelingregulations,asgovernedbytheaboveacts,stipulatesthedivulgenceofinformationintheprescribedformatoneachoftheparameters,contents,applications,safety,quality,usageetc.TheAgribusinessdivisiondoesnothaveanynon-compliancewithregulationsandvoluntarycodesconcerningproductinformationandlabelingofanyofitsproductsduringreportingyear.
ThecustomersatisfactionsurveysareconductedperiodicallywithcustomersintheIndiaonly.ThedivisionisgovernedwithISO9000:2001certificationandcustomeri.e.dealersatisfactionlevelsaremeasuredandtabulatedaspertheISOmodulethroughastructuredquestionnaire.ISOprocessesinthedivisionareregularlyauditedbyinternalandexternalauditors.
TherearenocodesorstandardspertainingtomarketcommunicationsrelatedtoSolidPolyvinylAcetate,sincethisisanintermediateproductsolddirectlytoendcustomers.However,Agribusinessdivisionconductsitsbusiness,includingmarketingcommunicationandadvertising,inanethicalmannerandnocommunicationisdesignedviolatingthegeneraladvertisinglawsofIndia,beitethical,cultural,privacyintrusionorattemptstoinfluencevulnerableaudiences.ThedivisionkeepsitselfabreastwithanychangesbroughtaboutbytheGovernmentinthisregardandreviews iteveryyear.Althoughthedivision’sbusiness isprimarily limitedtodomesticmarket,noneof theproducts that thedivisiondealsintoisbeingbannedincertainmarkets.
JubilantIndustriesdoesnotsellanyofitsproductstoanycountrywheretheproductisbanned,ortheusageofwhichissubjecttostakeholderquestionsorpublicdebate.Therearenoincidentsofnoncompliancewithregardtovoluntarycodesconcerningmarketingcommunication,includingadvertisingpromotionandsponsorshipduringtheyear.
Therearenocomplaintsagainst theCompany’sbusinesswith regard tobreachof customerprivacyand/or lossesof customerdata.Nosanctions,administrativeor judicial,oranymonetaryfinehasbeen leviedontheCompany’sbusinessfornon-compliancewith lawsandregulationsconcerningtheprovisionanduseofproductsmanufacturedand/ormarketedbyit.
InLatexbusiness, labelingonLatexproductscomplywithGlobalHarmonizedSystem(GHS)ofClassificationLabelingandPackaging.Forsupplies toEuropeanUnion(EU)market, theMaterialSafetyDataSheet (MSDS)complywithClassificationLabelingandPackaging (CLP)notificationunderRegistrationEvaluationandAuthorizationandRestrictionofChemicals(REACH)regulationofEU.
TheCompany’sR&Deffortsaretoimprovetheproductyield,reductionintheuseofsolvents,aswellastoreducetheeffluentgeneration.TheCompanybelievesinwasteminimizationandcleanerproduction.AtKapasan,thescrubbersolutionintheSSPplantisutilizedformakingSodiumSilicoFluorideby-producttherebyimprovingthescrubbingefficiencywithleansolutiontoreducefluorideemissiontoatmosphere.Further,SodiumSilicoFluoride issoldasaby-product.This isanexampleofWealth fromWaste.TheCompany’sproductsafety focus isoperationalthroughfocusonsafehandlingofproductsfrompointofproductiontopointofdistribution.StandardOperatingProcedures(SOP)ensuressafehandlingandtransportofproducts.EveryproductconsignmentisdispatchedinaccordancewithSOPformulated.TheCompanydoesnothaveaformalend-useandend-productassessmentmechanisminplaceasaresultofwhichproductlifecycleanalysiswasnotundertaken.TheCompanyactivitiesaretomanufactureconsumableproducts.Thesearenotreclaimable.SomeofthebulkmaterialsuchasLatexissuppliedthroughISOtankerswhichdoesnotinvolveanypackagingmaterial.Theotherconsumergoodandexportedproductsarepackedwithsuitablematerialasrequired.However,thesepackagingmaterialsarenotreclaimedbytheCompany.TheCompanypaidnofinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices.
Duringtheyear,anewproduct“Lamino’waslaunchedintheConsumerProductsDivision.Themainbenefitswere:Costadvantageasitprovides20%extracoverageresultingintosubstantialcostsavings;Applicationadvantageduetobubblefreelaminationandproductivityincreaseduetoquickdryingwhich iscrucial in furnituresegment. Theresponse fromthemarketwasoverwhelmingandtheCompanyreceivedveryencouragingfeedbackfromthedealers.
11.0GrowingwithCommunities forInclusiveGrowthBasically,inclusivegrowthismakingthebenefitsofdevelopmentavailableandaccessibletoall,particularlytheweakersectionofthecommunity.Itisincludingthosewhoaretoooftenexcludedandmarginalizedbyseemingdevelopment,bothingeographicalandsocialterms.Thosewhoareleftbehindorrelegatedtothemargins,geographicallyliveinruralareas,whilethosewhoareexcludedsociallytendtobesmallorlandlessfarmers,womenandindigenousgroups.Growththatisinclusivewouldmeanagrowththatnotonlycreatesopportunities,butmore importantly,ensuresequitableaccess tonatural resourcesandotheropportunities.
TheCompanybelievesinpartneringforvaluecreationforthissegmentofthesocietyinandaroundthemanufacturingunits.Itcarriesoutsocial interventionunder theaegisof JubilantBhartiaFoundation (JBF),which is supportedby JubilantBhartiaGroup.TheactivitiesaremonitoredbyseparatestaffofeveryunitandtheCompanyapprovesthebudgetaryallocationfortheseactivities.Trainingandawarenessprogramsarealsoorganizedonselectedtopicsonregularintervalsandaspertheneedofthecommunity.Takingintoaccounttheimportanceofcommunityasanimportantstakeholder,Jubilantensurescontinuousengagementfortheirbetterment.Theparentcompanystartedwiththephilanthropicapproachatthefirstbutgradually,withthegrowthoftheCompanytheapproachforthecommunitydevelopmentbecameparticipatory.TheCompanydistributeddrinkingwateraroundKapasanunitduringdraught,carrybagsinGajraulatocreateawarenesstosay“NotoPolyBags”andorganizedprogramforenvironment&safetyawarenessforpublicbenefit.TheCompanystrategicallystrengtheneditsSocialResponsibilitytocarryoutsocialactivitiesneededforthebenefitofthecommunitywithneedbasedparticipatoryapproach,withthesamevigourunderthefollowingdomain;
TheCompanyhascarriedoutactivitiesthroughJubilantBhartiaFoundation(JBF)forthesocio-economicdevelopmentinthevicinityofitsplants.TheexpenditurefortheactivitiescarriedoutduringNovember2010toMarch2011isover`1Million.AstheCompanydemergedinNovember2010,theCompanyhasnotpaidseparatelytoJBF.However,companyplanstocontributeseparatelyduringnextyear.
eduCaTiOn: healTh: liVelihOOd:
StrengtheningGovt. PrimaryEducationSystemwith
CommunityInvolvement;
Inculcatinghealthseeking behaviourinthecommunity
throughAwareness;
Creatinginstitutionswithforwardlinkagesforimproving
Employability;
Jubilant Industries Limited Corporate Sustainability Report 2010-11 45
TheCompanyworkstowardsbettermentoftheneedsofthestakeholdersforcommunityaroundthemanufacturingunitsandtheprojectsaremostlyalignedwiththeobjectivesofUnitedNation’sMillenniumDevelopmentGoals(MDGs).TheseGoalswithobjectivesandJubilant’sinitiativesinitalicsfortheMDGsaregivenbelow;
Exposurevisitofsmallfarmerstolearnbetteragriculturepracticesandimproveproductivitytoeradicatepoverty.
Supplement health care servicesrelatedtoMother&Child care.
Preventandeducatethelocalcommunityforcommunicableand other diseases
Ensurebetterinfrastructurelikee.g.drinkingwaterdistributionandpromote biogasplant&solarlights.
WorkwithNGOs,Government,NationalandInternationalorganizationsforruraldevelopmentactivities
Motivatestudentstoattendschoolforqualityeducationandmotivationforsecondaryeducation.
Supporttheinvolvementofwomenforincomegenerationprogram.
SupportingchildrenofprimaryschoolbyNirogBachpanprogramforpreventive health care.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 46
11.0GrowingwithCommunities forInclusiveGrowthTheCompanyvaluetheconcernsofallthestakeholdersassociateddirectlyorindirectlywiththebusinessandspeciallythelocalcommunity.TheCompany is intouchwithcommunityaroundmanufacturingplantsthroughJubilantBhartiaFoundationto implementvarioussocialinitiativesasoutlinedaboveandfewphotographsofengagementwiththecommunityaregivensubsequently.Company’sinterventionsarebringingachangeforbetterlifeofthecommunityandthiswillbeanongoingeffortoftheCompany.Thedetailedinterventionsarewellillustratedinthesocialsectionofthereport.Someoftheconcernsraisedbythecommunityaregivenbelow;
SomeofthesocialinitiativesarewiththeengagementofGovernmentorganizationalsounderPublicPrivatePartnership(PPP)modeforthecommunitybasedprojects.UnderPPPschemeofNationalProjectonManagementofSoilHealthandFertility,Dept.ofAgriculture,Govt.ofRajasthan,theCompanyhastakenresponsibilitytooperatetheMobileSoilTestingVanintheadjoiningdistricts.
Concerns raised by Stakeholders Action Taken
ImmediatescarcityofwaterSinghpurvillageKapasan
Community Waterdistributionthroughtankersownedbylocalcommunity
PoorCattlehealth,Samlaya CommunityandVeterinaryDept. Supportedveterinarycampsinthenearbyvillages
SupportforFamilyPlanningcampaign, Gajraula
HealthDept. Organizedcampandprovidedincentivetothebeneficiaries
TheCompany’s strongVision, Promise,Values, SustainabilityMission andpoliciesare guiding principles that drives conduciveworking environment. The Companyofficialsdealinanethicalmannerandplacecustomersandtheirpersonalinterestabovethoseofemployees.TheCompanyanalysestherisksrelatedtobriberyandcorruptionandthis isgovernedaspertheCompany’sCodeofConduct forseniormanagement.Seniorofficersofallthebusinessesfollowthecodeofconductwhichalso covers issues related to corruption. Heads of different Businesses analysedtheir divisions for risks related to corruption and trained their staff accordingly.TheCompanyemployeecanaccesstheCodeofConductthroughintranetandtheCompanydoesnothaveaseparateanti-corruptionpolicy.TheCompanyemployeesarealso informedforanticorruptionbehaviourduring induction,AnnualHRMeetand informal discussions of HR department. The Company employees were notinvolvedandtherewasnoincidentofcorruptionduringtheyear.
SocialinitiativesoftheCompanyareundertakenatallthelocationsforinclusivegrowthwiththeparticipationofemployees.Theimpactsofthedevelopmentprogramsimplementedareassessedatregularintervalsandcorrectiveactionsaretaken,whereverrequired.
TheCompanyhasimplementedEnvironmentalManagementSystemsatalllocationstominimisetheimpactsarisingoutofitsoperations.Duringtheyear, therewerenosignificant impactsonthesurroundingcommunity.Asmentioned,therearenosignificantenvironmentalimpactsandadequatecontrolmeasuresandsystemsareinplace.ThepreventivemaintenanceandothermeasurestominimisetheimpactofoperationisanongoingexerciseandMaintenance/ProjectDepartmentisinvolvedforcontinuousimprovementinthisarea.
Asapolicydecision,therepresentativesoftheCompanydonotindulgeorparticipateinpolicydevelopmentorlobbyingwhichmayimpacttheCompany. Infact,TheCompanyhasnotcontributedeither incashof inkindtoanypoliticalparties,politiciansandotherassociatedinstitutions.TheCompany’spresenceiswellnoticedinthevicinityofmanufacturingplantsduetosocio-economicdevelopmentactivities.Mostof theseactivitiesareundertakenon thebasisofNeedAssessmentSurveyand for thebenefitof societyat large.However, theseactivitiesmaynotsatisfyhandfulofsocietymembersbuttheactivitiesaremainlytoseetheoverallbenefitstothesociety.Duringthisyear,nosuchunlawfulactivityornonsatisfactionwasreportedfromthesocietyandgovernmentinstitutionsandnosignificantfineofmonetaryvaluewasimposedfornoncompliancewithlawsandregulations.
Drinking water distribution during Draught at Kapasan
Jubilant Industries Limited Corporate Sustainability Report 2010-11 47
TheClimate Change is visible from the changingweather. The staff oftheGajraulaunitdecidedtoworkformitigatingtheclimatechangeanddistributedsolarlanterntoschoolgoingchildreninthevillageschoolsinthevicinityoftheplantinassociationwiththeRotaryclub.Thisinitiativenot only helped and encouraged students to read and write in theabsenceofelectricityindarknightswithanenvironmentfriendlysourceoflightandalsohelpedinreductingGHGemissionindirectly.
LIGHTInG THE LIFE - SOLAr LIGHTSCase 1
Lantern distribution at Tigri Mela, Gajraula
Thehealthof thepeople isa reflectionof thecommunities inwhichtheylive,play,workandlearn.Communitiesshapethelifestylesthatpeopleadoptandtheirlivelihoodoflivingsafe,fulfillingandproductivelives.Forthose,whoseektounderstandhumanhealth,thecommunityisan importantforcetounderstand.Forthose,whowishto improvethe health of others, the community is an essential factor in theequationofpeople’shealthandwellbeing.Therelationshipbetweenthehealthofpeopleandtheircommunitiesliesatthecoreofnursingwork.Fortunately,thecommunityhealthnursingisnowmovingintoitsrenaissance.Thefastestgrowingcontextfornursingservicesisnowthecommunity.TheCompanyisregularlyorganisingthehealthcheckupsfor a healthy living of people and a similar program was organisedduring the famous Tigri Mela at Brij Ghat, near Gajraula JP Nagar.AwarenessprogramsandcampaignforemployeesandcommunitywereorganizedatvariouslocationsonTheWorldsAIDSDayonDecember1,2010.VariousawarenesscumhealthcheckcampswereorganizedatKapasanandGajraula.During theyear, theCompanyalso supportedFamiliyplanningcampsatboththelocationswhere170familyplanningoperationswereconducted.
awareness On healTh, sOCial & enVirOnmenTCase 2
Health checkup for ladies and kids during Tigri Mela, Brij Ghat, Jyotiba Phule Nagar
Jubilant Industries Limited Corporate Sustainability Report 2010-11 48
TheCompanyisnotonlyinvolvedwiththeSocialactivitiesintheregionbuttheeffortsaretoeducatethepeopleforenvironmental,healthandotherrelatedissues.AsanefforttocreateawarenessamongemployeesandcommunityinthevicinityoftheGajraulaplant,theCompanyactivelyparticipated in “JHOLA ANDOLAN”, a drive to discourage the use ofpolythenebags.TheCompanydistributedmorethan9000CarrybagsatTigriMelaheldinNovember2010.
say nO TO pOly bagsCase 3
Bag distribution at Tigri Mela in Gajraula
TheCompanybelievesthatanemergencyisasituationwhenoperatorsat aplantunit cannot copeupwith apotentially hazardous situationandlossofcontrolofincidentcausestheplanttogobeyonditsnormaloperating conditions thus creating danger. First few minutes after anemergencysituationaremostcriticalandaquick&effectiveresponsepreventscatastropheordisaster.TheCompanyhas improvedresponsein caseof anyemergency arisingout in plant at its Sahibabadunit byupgradationofsafetysystemssuchas:Flashingofemergencylightinhighnoiselevelarea;AutomaticwatersprinklerinWarehouse;FoamMonitorforfirefightinginsolventstoragearea;“Exit”signageatprominentplacesandimprovedheadcountsystem.
imprOVed emergenCy respOnse aT sahibabad uniTCase 4
Improved Emergency response at Sahibabad
11.0GrowingwithCommunities forInclusiveGrowth
Jubilant Industries Limited Corporate Sustainability Report 2010-11 49
Smiling ladies with machines provided by JBF for livelihood generation, at Kapasan
TheCompanyhasbeencontributingtowardseducatingthelocalfarmerson agricultural science so that the yield of crop increases and in turnimprove their income. Programmes are conducted for local farmersonoptimumutilisationof their landand to improve theyieldof crop.JBForganisedvariousprograms toeducate the farmerson thevariousscientificaspectsofagriculturesuchasFarmerEducationalTour,Arrangingscientificinputsonagriculturetofarmers&CattleHealthCamps.
Duringtheyear,anexposurevisitwasorganizedfor14nos.ofprogressiveandprominentfarmersfromSinghpurvillageofChittorgarhDistrict.Themain objective of this program was to learn the cultivation practicessuchassowingtime,varietiesgrownetc.beingfollowedbyfarmersofJaitaran;tocreateawarenessamongthefarmersabouttheprofitabilityofwintervegetablecultivation.Basedonthediscussionandreviewheldafterthevisit,thefarmersgreatlybenefittedfromtheExposureVisitandstartedapplyingnewmeasuresandmethodlearnedintheircultivationpractices.
eXpOsure VisiT fOr farmersCase 6
Discussion with farmers during a visit to farm, Kapasan
sKill deVelOpmenT prOgramCase 5
During the year, various skill development programs were organizedat the Vocational Training Institute approved by National Council forVocationalTrainingatGajraulatoimproveemployabilityofyouth.
Since,statusofwomeninthesocietycontinuestobeoneofdeprivationanddenialinmostpartofIndia,vocationaltrainingprogramsareaimedatcontributingtocorrectingthissituationbygivingasmuchopportunityto women as possible. Vocational Trainings on stitching and tailoringwereorganizedatKapasanandencouragedwomenfolks.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 50
12.0TheWayForward
The leadership Challenges Thebusinessleadersatmanyorganizationslevel,whilstawareofsomeofthechallenges,areoftenillequippedtodealwithfewimportantglobalissues.Somedismissedthemasirrelevanttotheirpersonalresponsibilitiesandaccountabilities.OthersteerclearofquestioningtheeconomicsystemsuponwhichtheCompany’sworkinginenvironmentisbased.TheCompanybelievesthatthereareatleastfoururgentchallengesthatneedtobeaddressed.
Thinking and Acting in Global Context
BesidesFinancial,EnvironmentalandSocialperformance,theCompanyviewsthatglobalissuesareequallyimportant.Today,globalissuessuchasclimatechange,demandsandunderstandingwithinthescopeandmanufacturingfacilitiesoftheCompany.Globalissuesarenotjustachallengeforlargemulti-nationalcorporations.Fewglobalissuesarenotonlyanissuetodiscussbutit’saresponsibilityofeverybusinessorganization.Understandingthis, Jubilant Industriesdevelopedapolicy forClimateChangeMitigationsignedbyoneof theDirectoranddecidedtoactwithafocusedapproachandaddresseditwitharesponsiblebehaviour.
Broadening Corporate Culture
Most organizations are still largely construed in narrow economic terms. Today, corporate activity and responsibility has dominatedmanagementthought.Ithasbeenanassumptionthatrulesandnormsofthesocietyinwhichbusinessoperatesaresufficienttoframetheappropriatefundamentalvaluesofbusinessbehaviour.However,duetomovetoaglobaleconomicsystemandthepeoplelivinginaperiodoftransaction,theCompanydecidedtomoveforwardasperthepolicies.TheVision,Values&PromiseofJubilantBhartiaGroupandtheSustainabilityMissionofJILsignedbytheChairmanforEnvironmentalManagement&Socialinitiativescompetingwiththeeconomicspacewillbeaddressedinapragmaticway.TheCompany’sendeavoristoworkwiththephilosophyofSustainableDevelopmentofJubilantBhartiaGroupandthepromiseofCaring,Sharing,Growing.
Sowing the Seeds of Ethics
ThebusinessethicsandCorporateResponsibilitythoughhaveacquiredthecentreplaceattheJILbuttheCompanywilladoptmoreethicalandresponsiblefocus.TheCompanywillplantoworkontheprinciplesofUnitedNationsGlobalCompact(UNGC)andMillenniumDevelopmentGoals(MDGs)ofUnitedNationsforresponsibleinitiatives.Theseinitiativesforresponsibilitywillbeseenasaninvestment,notacost.
Transforming Business into Education
TheEnvironment,Health,Safety,InitiativesforClimateChange,theSustainabilityandotherrelatedissues,whichareveryimportantforthebusinesstodaywillnotonlybeinculcatedatplantlevelbutatofficesalso.AsperEHSandGreenSupplyChainPolicy,theCompanyeffortswillbetocreateawarenessamongemployees,theirfamilies,customers,partnerinprogress,communityaroundtheplantsaswellasonwidernationalsceneforabetterworldtomorrow.
TheCompany’staskwillbetointegratethisWayForwardintobusinessandmonitortheprogressinyearstocome.Thiswayforwardwillhelpto Involve, Influence, Inspire, Internalize and Interconnect (5i) all at Jubilant Industries Ltd.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 51
GRICONTENTINDEXSTAnDArD DISCLOSUrES PArT I: Profile Disclosures
Profile disclosure
Description reported Cross-reference/direct answer
if applicable, indicate the part not reported
reason for omission Explanation
1. Strategy and Analysis
1.1 Statementfromthemostseniordecision-makeroftheorganization.
Fully 3
1.2 Descriptionofkeyimpacts,risks,andopportunities.
Fully 34
2. Organizational Profile
2.1 Nameoftheorganization. Fully 13
2.2 Primarybrands,products,and/orservices.
Fully 13
2.3 Operationalstructureoftheorganization,includingmaindivisions,operatingcompanies,subsidiaries,andjointventures.
Fully 14,19
2.4 Locationoforganization'sheadquarters.
Fully 13
2.5 Numberofcountrieswheretheorganizationoperates,andnamesofcountrieswitheithermajoroperationsorthatarespecificallyrelevanttothesustainabilityissuescoveredinthereport.
Fully 13
2.6 Natureofownershipandlegalform. Fully 14
2.7 Marketsserved(includinggeographicbreakdown,sectorsserved,andtypesofcustomers/beneficiaries).
Fully 13,20
2.8 Scaleofthereportingorganization. Fully 20,22,13
2.9 Significantchangesduringthereportingperiodregardingsize,structure,orownership.
Fully 10
2.10 Awardsreceivedinthereportingperiod.
Fully 16
3. report parameters
3.1 Reportingperiod(e.g.,fiscal/calendaryear)forinformationprovided.
Fully 10
3.2 Dateofmostrecentpreviousreport(ifany).
Fully 10
3.3 Reportingcycle(annual,biennial,etc.) Fully 10
3.4 Contactpointforquestionsregardingthe report or its contents.
Fully 10
3.5 Processfordefiningreportcontent. Fully 10, 11
3.6 Boundaryofthereport(e.g.,countries,divisions,subsidiaries,leasedfacilities,jointventures,suppliers). See GRI Boundary Protocol forfurtherguidance.
Fully 10
3.7 Stateanyspecificlimitationsonthescopeorboundaryofthereport(seecompletenessprincipleforexplanationofscope).
Fully 10
Jubilant Industries Limited Corporate Sustainability Report 2010-11 52
STAnDArD DISCLOSUrES PArT I: Profile Disclosures
Profile disclosure
Description reported Cross-reference/direct answer
if applicable, indicate the part not reported
reason for omission Explanation
3.8 Basisforreportingonjointventures,subsidiaries,leasedfacilities,outsourcedoperations,andotherentitiesthatcansignificantlyaffectcomparabilityfromperiodtoperiodand/orbetweenorganizations.
Fully 14
3.9 Datameasurementtechniquesandthebasesofcalculations,includingassumptionsandtechniquesunderlyingestimationsappliedtothecompilationoftheIndicatorsandotherinformationinthereport.Explain any decisions not to apply, or tosubstantiallydivergefrom,theGRIIndicator Protocols.
Fully 10
3.10 Explanationoftheeffectofanyre-statementsofinformationprovidedin earlier reports, and the reasons forsuchre-statement(e.g.,mergers/acquisitions,changeofbaseyears/periods,natureofbusiness,measurement methods).
Fully 10
3.11 Significantchangesfrompreviousreportingperiodsinthescope,boundary, or measurement methods applied in the report.
Fully 10
3.12 TableidentifyingthelocationoftheStandardDisclosuresinthereport.
Fully 51
3.13 Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport.
Fully 11
4. Governance, Commitments, and Engagement
4.1 Governancestructureoftheorganization,includingcommitteesunderthehighestgovernancebodyresponsibleforspecifictasks,suchassettingstrategyororganizationaloversight.
Fully 18
4.2 IndicatewhethertheChairofthehighestgovernancebodyisalsoanexecutiveofficer.
Fully 19,28
4.3 Fororganizationsthathaveaunitaryboard structure, state the number andgenderofmembersofthehighestgovernancebodythatareindependentand/ornon-executivemembers.
Fully 19
4.4 Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody.
Fully 20
4.5 Linkagebetweencompensationformembersofthehighestgovernancebody,seniormanagers,andexecutives(includingdeparturearrangements),andtheorganization'sperformance(includingsocialandenvironmentalperformance).
Fully 18
4.6 Processesinplaceforthehighestgovernancebodytoensureconflictsofinterestareavoided.
Fully 19
Jubilant Industries Limited Corporate Sustainability Report 2010-11 53
STAnDArD DISCLOSUrES PArT I: Profile Disclosures
Profile disclosure
Description reported Cross-reference/direct answer
if applicable, indicate the part not reported
reason for omission Explanation
4.7 Processfordeterminingthecomposition,qualifications,andexpertiseofthemembersofthehighestgovernancebodyanditscommittees,includinganyconsiderationofgenderandotherindicatorsofdiversity.
Fully 18
4.8 Internallydevelopedstatementsofmissionorvalues,codesofconduct,andprinciplesrelevanttoeconomic,environmental,andsocialperformanceandthestatusoftheirimplementation.
Fully 6
4.9 Proceduresofthehighestgovernancebodyforoverseeingtheorganization'sidentificationandmanagementofeconomic,environmental,andsocialperformance,includingrelevantrisksandopportunities,andadherenceorcompliancewithinternationallyagreedstandards,codesofconduct,and principles.
Fully 19
4.10 Processesforevaluatingthehighestgovernancebody'sownperformance,particularlywithrespecttoeconomic,environmental,andsocialperformance.
Fully 18
4.11 Explanationofwhetherandhowtheprecautionaryapproachorprincipleisaddressedbytheorganization.
Fully 24,25,35,43
4.12 Externallydevelopedeconomic,environmental,andsocialcharters,principles,orotherinitiativestowhichtheorganizationsubscribesorendorses.
Fully 25,45
4.13 Membershipsinassociations(suchasindustryassociations)and/ornational/internationaladvocacyorganizationsinwhichtheorganization:*Haspositionsingovernancebodies;*Participatesinprojectsorcommittees;*Providessubstantivefundingbeyondroutinemembershipdues;or*Viewsmembershipasstrategic.
Fully 13
4.14 Listofstakeholdergroupsengagedbytheorganization.
Fully 20,25,26,34,36,41,44
4.15 Basisforidentificationandselectionofstakeholderswithwhomtoengage.
Fully 20,25,26,34,36,41,40,44
4.16 Approaches to stakeholder engagement,includingfrequencyofengagementbytypeandbystakeholdergroup.
Fully 20,25,26,34,36,41,37,44
4.17 Keytopicsandconcernsthathavebeenraisedthroughstakeholderengagement,andhowtheorganizationhasrespondedtothosekeytopicsandconcerns,includingthroughitsreporting.
Fully 34,40,41,37,44
Jubilant Industries Limited Corporate Sustainability Report 2010-11 54
STAnDArD DISCLOSUrES PArT II: Disclosures on Management Approach (DMAs)
g3 dma Description reported Cross-reference/direct answer
if applicable, indicate the part not reported
reason for omission Explanation To be reported in
DMAEC DisclosureonManagementApproachEC
Fully 6,7,20
Aspects Economicperformance Fully 20
Market presence Fully 38
Indirect economic impacts Fully 46
DMAEN DisclosureonManagementApproachEN
Fully 6,7,20
Aspects Materials Fully 21
Energy Fully 28
Water Fully 31
Biodiversity Partially 33 Notmaterial We do not report on this issue since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because noneofthemanufacturingfacilityofthecompanyislocated in the protected areaorareasofhighbiodiversityvalue.
Emissions,effluentsandwaste Fully 29
Productsandservices Fully 31
Compliance Fully 43
Transport Not
Overall Fully 32
DMALA DisclosureonManagementApproachLA
Fully 6,7,20
Aspects Employment Fully 38
Labor/managementrelations Fully 38
Occupationalhealthandsafety Fully 34
Trainingandeducation Fully 38
Diversityandequalopportunity Fully 38
Equalremunerationforwomenandmen
Fully 38
DMAHR DisclosureonManagementApproachHR
Fully 6,7,20
Aspects Investmentandprocurementpractices
Fully 39
Non-discrimination Fully 37
Freedomofassociationandcollectivebargaining
Fully 39
Child labor Fully 39
Preventionofforcedandcompulsorylabor
Fully 39
Securitypractices Not
Indigenousrights Fully 20
Assessment Fully 39
Remediation Fully 39
DMASO DisclosureonManagementApproachSO
Fully 6,7,20
Aspects Localcommunities Fully 46
Jubilant Industries Limited Corporate Sustainability Report 2010-11 55
sTandard disClOsures parT iii: performance indicators
economic
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
Public policy Fully 46
Anti-competitivebehavior Fully 46
Compliance Fully 46
DMAPR DisclosureonManagementApproachPR
Fully 6,7,20
Aspects Customerhealthandsafety Fully 43
Productandservicelabelling Fully 43
Marketingcommunications Fully 43
Customerprivacy Fully 43
Compliance Fully 43
Economicperformance
EC1 Directeconomicvaluegeneratedanddistributed,includingrevenues,operatingcosts,employeecompensation,donationsandothercommunityinvestments,retainedearnings,andpaymentstocapitalprovidersandgovernments.
Fully 20,21,22
EC2 Financialimplicationsandotherrisksandopportunitiesfortheorganization'sactivitiesduetoclimatechange.
Fully 26
EC3 Coverageoftheorganization'sdefinedbenefitplanobligations.
Fully 37
EC4 Significantfinancialassistancereceivedfromgovernment.
Fully 22
Market presence
EC5 Rangeofratiosofstandardentrylevelwagebygendercomparedtolocalminimumwageatsignificantlocationsofoperation.
Fully 38
EC6 Policy,practices,andproportionofspendingonlocally-basedsuppliersatsignificantlocationsofoperation.
Fully 21
EC7 Proceduresforlocalhiringandproportionofseniormanagementhiredfromthelocalcommunityatsignificantlocationsofoperation.
Fully 37
Indirect economic impacts
EC8 Developmentandimpactofinfrastructureinvestmentsandservicesprovidedprimarilyforpublicbenefitthroughcommercial,in-kind,orprobonoengagement.
Fully 46
EC9 Understandinganddescribingsignificantindirecteconomicimpacts,includingtheextentofimpacts.
Fully 48
environmental
Materials
EN1 Materialsusedbyweightorvolume. Fully 21
Jubilant Industries Limited Corporate Sustainability Report 2010-11 56
sTandard disClOsures parT iii: performance indicators
environmental
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
Energy
EN2 Percentageofmaterialsusedthatarerecycled input materials.
Fully 33
EN3 Directenergyconsumptionbyprimaryenergysource.
Fully 28
EN4 Indirectenergyconsumptionbyprimary source.
Fully 28
EN5 Energysavedduetoconservationandefficiencyimprovements.
Fully 27
EN6 Initiativestoprovideenergy-efficientorrenewableenergybasedproductsandservices,andreductionsinenergyrequirementsasaresultoftheseinitiatives.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.
EN7 Initiativestoreduceindirectenergyconsumptionandreductionsachieved.
Fully 27,28
Water
EN8 Totalwaterwithdrawalbysource. Fully 31
EN9 Watersourcessignificantlyaffectedbywithdrawalofwater.
Not Notmaterial We do not report on this issue as the disclosure is not material to our business. Themajorityofthewaterissupplied by the third party, howeverCompanyisalsoconscious and installed rainwaterstructureforrechargingofgroundwater.ThewaterquantityinCompany'soperationsis21%fromgroundwater.
EN10 Percentageandtotalvolumeofwaterrecycled and reused.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillreportinfuture.
Biodiversity
EN11 Locationandsizeoflandowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas.
Fully 33
EN12 Descriptionofsignificantimpactsofactivities,products,andservicesonbiodiversityinprotectedareasandareasofhighbiodiversityvalueoutside protected areas.
Fully 33
EN13 Habitats protected or restored. Not Notmaterial We do not report on this issue since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because noneofthemanufacturingfacilityofthecompanyislocated in the protected areaorareasofhighbiodiversityvalue.
Jubilant Industries Limited Corporate Sustainability Report 2010-11 57
sTandard disClOsures parT iii: performance indicators
environmental
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
EN14 Strategies,currentactions,andfutureplansformanagingimpactsonbiodiversity.
Not Notmaterial We do not report on this issue since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because noneofthemanufacturingfacilityofthecompanyislocated in the protected areaorareasofhighbiodiversityvalue.
EN15 NumberofIUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperations,bylevelofextinctionrisk.
Not Notmaterial We do not report on this issue since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because noneofthemanufacturingfacilityofthecompanyislocated in the protected areaorareasofhighbiodiversityvalue.
Emissions,effluentsandwasteEN16 Totaldirectandindirectgreenhouse
gasemissionsbyweight.Fully 29
EN17 Otherrelevantindirectgreenhousegasemissionsbyweight.
Fully 29
EN18 Initiativestoreducegreenhousegasemissionsandreductionsachieved.
Fully 29
EN19 Emissionsofozone-depletingsubstancesbyweight.
Fully 30
EN20 NOx,SOx,andothersignificantairemissionsbytypeandweight.
Fully 32
EN21 Totalwaterdischargebyqualityanddestination.
Fully 32
EN22 Totalweightofwastebytypeanddisposal method.
Fully 33
EN23 Totalnumberandvolumeofsignificantspills.
Fully 33
EN24 Weightoftransported,imported,exported,ortreatedwastedeemedhazardousunderthetermsoftheBaselConventionAnnexI,II,III,andVIII,andpercentageoftransportedwasteshippedinternationally.
Fully 33
EN25 Identity,size,protectedstatus,andbiodiversityvalueofwaterbodiesandrelatedhabitatssignificantlyaffectedbythereportingorganization'sdischargesofwaterandrunoff.
Not Notmaterial We do not report on this issue since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because noneofthemanufacturingfacilityofthecompanyislocated in the protected areaorareasofhighbiodiversityvalue.
ProductsandservicesEN26 Initiativestomitigateenvironmental
impactsofproductsandservices,andextentofimpactmitigation.
Fully 31,43
EN27 Percentageofproductssoldandtheirpackagingmaterialsthatarereclaimedbycategory.
Fully 43
Jubilant Industries Limited Corporate Sustainability Report 2010-11 58
sTandard disClOsures parT iii: performance indicators
Social: Labor Practices and Decent Work
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
ComplianceEN28 Monetaryvalueofsignificantfines
andtotalnumberofnon-monetarysanctionsfornon-compliancewithenvironmentallawsandregulations.
Fully 43
TransportEN29 Significantenvironmentalimpacts
oftransportingproductsandothergoodsandmaterialsusedfortheorganization'soperations,andtransportingmembersoftheworkforce.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.
OverallEN30 Totalenvironmentalprotection
expendituresandinvestmentsbytype.
Fully 32
Employment
LA1 Totalworkforcebyemploymenttype,employmentcontract,andregion,brokendownbygender.
Fully 38
LA2 Totalnumberandrateofnewemployee hires and employee turnoverbyagegroup,gender,andregion.
Fully 39
LA3 Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees,bymajoroperations.
Fully 38
LA15 Returntoworkandretentionratesafterparentalleave,bygender.
Fully 37
Labor/managementrelations
LA4 Percentageofemployeescoveredbycollectivebargainingagreements.
Fully 38
LA5 Minimumnoticeperiod(s)regardingsignificantoperationalchanges,includingwhetheritisspecifiedincollectiveagreements.
Fully 38
Occupationalhealthandsafety
LA6 Percentageoftotalworkforcerepresentedinformaljointmanagement-workerhealthandsafetycommitteesthathelpmonitorandadviseonoccupationalhealthandsafetyprograms.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.
LA7 Ratesofinjury,occupationaldiseases,lost days, and absenteeism, and numberofwork-relatedfatalitiesbyregionandbygender.
Fully 34
LA8 Education,training,counseling,prevention,andrisk-controlprogramsinplacetoassistworkforcemembers,theirfamilies,orcommunitymembersregardingseriousdiseases.
Fully 47
Jubilant Industries Limited Corporate Sustainability Report 2010-11 59
sTandard disClOsures parT iii: performance indicators
Social: Labor Practices and Decent Work
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
LA9 Healthandsafetytopicscoveredinformalagreementswithtradeunions.
Not Notapplicable We do not report on this point since the disclosure as prescribed by the GRI Guidelines is not applicable to our business because there are no trade unions inanyoftheplantsofthecompany.
Trainingandeducation
LA10 Averagehoursoftrainingperyearperemployeebygender,andbyemployeecategory.
Partially 38 The data as per genderandemployeecategoryhasnotbeenreported.
Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,sincethecompanywasrecentlydemerged.
2012
LA11 Programsforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassisttheminmanagingcareerendings.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.
LA12 Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews,bygender.
Not Notavailable We do not report on this yet aswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.
Diversityandequalopportunity
LA13 Compositionofgovernancebodiesandbreakdownofemployeesperemployeecategoryaccordingtogender,agegroup,minoritygroupmembership,andotherindicatorsofdiversity.
Fully 38
Equalremunerationforwomenandmen
LA14 Ratioofbasicsalaryandremunerationofwomentomenbyemployeecategory,bysignificantlocationsofoperation.
Fully 38
Investmentandprocurementpractices
HR1 Percentageandtotalnumberofsignificantinvestmentagreementsand contracts that include clauses incorporatinghumanrightsconcerns,orthathaveundergonehumanrightsscreening.
Fully 39
HR2 Percentageofsignificantsuppliers,contractors and other business partnersthathaveundergonehumanrightsscreening,andactionstaken.
Fully 39
Jubilant Industries Limited Corporate Sustainability Report 2010-11 60
sTandard disClOsures parT iii: performance indicators
Social: Human rights
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
HR3 Totalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations,includingthepercentageofemployeestrained.
Fully 39
Non-discrimination
HR4 Totalnumberofincidentsofdiscriminationandcorrectiveactionstaken.
Fully 37,39
Freedomofassociationandcollectivebargaining
HR5 Operationsandsignificantsuppliersidentifiedinwhichtherighttoexercisefreedomofassociationandcollectivebargainingmaybeviolatedoratsignificantrisk,andactionstakentosupporttheserights.
Fully 39
Child labor
HR6 Operationsandsignificantsuppliersidentifiedashavingsignificantriskforincidentsofchildlabor,andmeasurestakentocontributetotheeffectiveabolitionofchildlabor.
Fully 39
Forced and compulsory labor
HR7 Operationsandsignificantsuppliersidentifiedashavingsignificantriskforincidentsofforcedorcompulsorylabor, and measures to contribute to theeliminationofallformsofforcedor compulsory labor.
Fully 39
Securitypractices
HR8 Percentageofsecuritypersonneltrainedintheorganization'spoliciesorproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations.
Not Notavailable We do not report on this yetaswehavethusfarbeenunabletogatherthedatabeingthefirstreportingyear,butwewillbeabletoreportinfuture.The Company has ensured securityofitsplantsbydeployingalicensedsecurityagencyatallthelocationswhoaretrained.
Indigenousrights
HR9 Totalnumberofincidentsofviolationsinvolvingrightsofindigenouspeopleandactionstaken.
Fully 20
Assessment
HR10 Percentageandtotalnumberofoperationsthathavebeensubjecttohumanrightsreviewsand/orimpactassessments.
Fully 39
Remediation
HR11 "Numberofgrievancesrelatedtohumanrightsfiled,addressedandresolvedthroughformal grievancemechanisms."
Fully 39
Jubilant Industries Limited Corporate Sustainability Report 2010-11 61
sTandard disClOsures parT iii: performance indicators
social: society
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
ReasonforOmission Explanation To be reported in
Localcommunities
SO1 Percentageofoperationswithimplemented local community engagement,impactassessments,anddevelopmentprograms.
Fully 46
SO9 Operationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities.
Fully 46
SO10 Preventionandmitigationmeasuresimplementedinoperationswithsignificantpotentialoractualnegativeimpactsonlocalcommunities.
Fully 46
Corruption
SO2 Percentageandtotalnumberofbusinessunitsanalyzedforrisksrelatedtocorruption.
Fully 46
SO3 Percentageofemployeestrainedinorganization'santi-corruptionpoliciesand procedures.
Fully 46
SO4 Actionstakeninresponsetoincidentsofcorruption.
Fully 46
Public policy
SO5 Publicpolicypositionsandparticipationinpublicpolicydevelopmentandlobbying.
Fully 46
SO6 Totalvalueoffinancialandin-kindcontributionstopoliticalparties,politicians,andrelatedinstitutionsby country.
Fully 46
Anti-competitivebehavior
SO7 Totalnumberoflegalactionsforanti-competitivebehavior,anti-trust,andmonopolypracticesandtheiroutcomes.
Fully 46
Compliance
SO8 Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithlawsandregulations.
Fully 46
Customerhealthandsafety
PR1 Lifecyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovement,andpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures.
Fully 43
PR2 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerninghealthandsafetyimpactsofproductsandservicesduringtheirlifecycle,bytypeofoutcomes.
Fully 43
Jubilant Industries Limited Corporate Sustainability Report 2010-11 62
sTandard disClOsures parT iii: performance indicators
social: product responsibility
PerformanceIndicator
Description Reported Cross-reference/Directanswer
Ifapplicable,indicatethe part not reported
Reasonforomission Explanation To be reported in
Productandservicelabelling
PR3 Typeofproductandserviceinformationrequiredbyprocedures,andpercentageofsignificantproductsandservicessubjecttosuchinformationrequirements.
Fully 43
PR4 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningproductandserviceinformationandlabeling,bytypeofoutcomes.
Fully 43
PR5 Practicesrelatedtocustomersatisfaction,includingresultsofsurveysmeasuringcustomersatisfaction.
Fully 43,41
Marketingcommunications
PR6 Programsforadherencetolaws,standards,andvoluntarycodesrelatedtomarketingcommunications,includingadvertising,promotion,andsponsorship.
Fully 43,41
PR7 Totalnumberofincidentsofnon-compliancewithregulationsandvoluntarycodesconcerningmarketingcommunications,includingadvertising,promotion,andsponsorshipbytypeofoutcomes.
Fully 43
Customerprivacy
PR8 Totalnumberofsubstantiatedcomplaintsregardingbreachesofcustomerprivacyandlossesofcustomer data.
Fully 43
Compliance
PR9 Monetaryvalueofsignificantfinesfornon-compliancewithlawsandregulationsconcerningtheprovisionanduseofproductsandservices.
Fully 43
Jubilant Industries Limited Corporate Sustainability Report 2010-11 63
ListofAbbreviations
AIDA AllIndiaDistillersAssociation
AIDS AcquiredImmuneDeficiencySyndrome
ANU AnimalNutritionUnit
API ActivePharmaceuticalIngredients
APP Agri&PolymerProducts
CCMP ClimateChangeMitigationPolicy
CFC Chloro Fluoro Carbon
CFL CompactFlorescentLight
CII ConfederationofIndianIndustry
CMD Chairman&ManagingDirector
CCMD Co-Chairman&ManagingDirector
CLP ClassificationLabelingandPackaging
CSR Corporate Social Responsibility
ERP EnterpriseResourcePlanning
ESI Employees'StateInsuranceAct
ETP EffluentTreatmentPlant
EU European Union
FICCI FederationofIndianChambersofCommerce&Industry
FO Furnace Oil
FY FinancialYear
GHG Greenhouse Gases
GHS GlobalHarmonizedSystems
GRI GlobalReportingInitiative
GSCM GreenSupplyChainManagement
HAZOP HazardIdentification&ControlsystemthroughHazardOperability
HCFC Hydro Chloro Fluoro Carbons
HIV HumanImmunodeficiencyVirus
HO HeadOffice
HRIS HumanResourceInformationSystem
HSD HighSpeedDiesel
ICC Indian Chemical Council
IMFL Indianmanufacturedforeignliquor
IMS IntegratedManagementSystem
ISO InternationalOrganizationforStandardization
JBF JubilantBhartiaFoundation
KRAs Key Result Areas
KSA KingdomofSaudiArabia
LDO LightDieselOil
MDGs MillenniumDevelopmentGoals
MOC MaterialofConstruction
MSDS MaterialSafetyDataSheet
MT Metric tons
NABARD NationalBankforAgricultureandRuralDevelop-ment
NCVT NationalCouncilforVocationalTraining
NGOs NonGovernmentOrganisations
NOx OxidesofNitrogen
OHSAS OccupationalHealthandSafetyAssessmentSeries
PPEs PersonalProtectiveEquipments
PVA Poly Vinyle Alcohol
RFO Residual Furnace Oil
RO ReverseOsmosis
SLF SecuredLandfillFacility
SO2 SulfurDioxide
SOP StandardOperatingProcedure
SPVA Solid Poly Vinyle Alcohol
SSF Sodium Silico Fluoride
SSP SingleSuperPhosphate
tCO2e TonnesCarbonDioxideEquivalentto
TR TonsofRefrigeration
REACH RegistrationEvaluation&Authorization&Restric-tionofChemicals
UNGC UnitedNationsGlobalCompact
VFD VariableFrequencyDrive
VP Vinyl Pyridine
VTP VocationalTrainingProvider
CFL ChloroFluorescentLight
GHS GloballyHarmonizedSystemofClassificationandLabelingofChemicals
HAZOP HazardIdentification&ControlsystemthroughHazardOperability
HCFCs Hydro Chloro Fluoro Carbons
MT Metric Tonnes
PVA Poly Vinyl Acetate
REACH Registration,Evaluation,Authorization&Restric-tionofChemicals
SPVA Solid Poly Vinyl Acetate
tCO2e TonnesCarbonDioxideEquivalent
TR TonnesofRefrigeration
Jubilant Industries Limited Corporate Sustainability Report 2010-11 64
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Jubilant Industries Limited Corporate Sustainability Report 2010-11 65
Jubilant Industries Limited Corporate Sustainability Report 2010-11 66
Feed Back FormSustainability Report 2010-11Details of information provided on issues covered in the report
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