our sustainability approach - SRF - Chemicals, Technical … · our sustainability approach SRF considers sustainability as a foundation to its business and is committed to excelling

our sustainability approachSRF considers sustainability as a foundation to its business and

is committed to excelling in the triple bottom line. It firmly believes that success in business fi

cannot be achieved without uplifting the people and society at large.

SRF leverages synergies of partnerships by engaging with the society and being effective stewards of the environment.

It has made an upstanding commitment towards the development of communities and

Natural Resource Management. SRF’s sustainability approach emphasizes optimization of business performance

to face upcoming challenges of technology and global environment.

SRF’s visionary leadership has transformed challenges of global environmental and economic issues into opportunity to

consolidate and energize the process with greater passion and positive frame of mind. Stringent audit measures and

a steadfast vertical structure of responsibility provides guidance

and the zeal to go beyond compliance, think beyond markets in returning to society,

caring for the environment and building a value-led brand.

23% increase in net revenue during 2008-099

32% growth in operatingg profi t (PBITT) ) duduriringngg 2 20000 8-09090909999

Increasese i in n cocompaany emmmmpppployee strtrenength byby 10%% in two years

2007-08 & 2008-09H I G H L I G H T S

77.9 Million MM ToTonsns e eququivivalalenent t ofof CO2 2 sssaaved from being released intoo the atmosphere inin t twowo y yeaearsrs

1.5 Million Cubic Meter rainwaater harvested in two years

Nearly 90,000 sapplings planted in two years

About 1,360 fammimililiees dirrecectltly y covered under CCommunity Development Programme inin t twwo years

about the reportSRF, as a businsinessess, i, is cs comommmmmittitted towards excelling in triple bobooottottottottott m linein , iii.e..e.

ecoeconomnomicic, so sociacial al nd envvironmental performances. Thhe re re re ee eport on n EcoEconoomic

Performance is drawn froom the Company’s AnAnnununuanual Rl epoeport.rt. M/S Deloittte

Haskins & Sells, Chartered Accountannnnts,ts,ts,ts, N Ne NeN w Dw Delhi (India), have auaudddidited

the accounts of the compmppany. TTTTheehe he CComComC pany publishes fi nanciial al report foor the fi

SRF group as a a whowhole.le.e.e.e WW W WWhWhWhWhWhilel all other fi nancial data iindindicated in this repport fi

perertaitains ns to to SRFSRFSRFSRFSRFR CC ChChemicaals Business, Dividendsnds to to shareholders are based on

thethetheheh SRSSR SRSRF Company perforrmance. Dataata r rellating to Environment, Health &

Safety (EHS) is compiledd frfromom hthe EHS performance data maintained bby the

organization. Socicial al DeDeveelopment is reflective of the initiatives taken by SSRF as fl

a part of of it its Corporate Soocial Responsibility (CSR). The data & performmance

indicator in this report peertains to the period of two consecutive years i.e.. 1st p p p f y

April, 2007 to 31st Marrch, 2008 and 1st April 2008 to 31st March, 20009.

The reporting cycle woulld be bi-annual.

As sett in in the maiden report publisheed in 2006-07, while compiling this report

asas well, GRI-G3 guidelines have beeen followed and all relevant technical

protocols adhered to for reporting thhe core and additional indicators.

The report covers details about the Chemicals Business, which includes

Fluorochemicals and Fluorospecialiity Chemicals Plant situated at Jhiwana,

Distt. Alwar, Rajasthan (India). TThe corporate offi ce is located at Gurgaon

(Haryana) and the marketing offi cees at various locations in India.

The following persons can be contaacted for questions regarding the report:

• Roop Salotra, President & CEOO ([email protected])

• Aseem Mehrotra, VP & Businesss Head ([email protected])

• Rajeev Marwah, VP & Head of Works ([email protected])

• H.S. Dua, AVP – HR & CSR (([email protected])

• Alok Chandra, Chief Manager ((EHS) ([email protected])

“We will make our nation proud by being the best at what we do.”

assurance statement 80

GRI indicators 882

governance, commitments and enngagement 76

awards and honours 79

higgggggghhhhhhhllllliiiiiigggghhhhttttssss 444444

mmmmmmmmeeeeessssaaggee ffrroooom the Managingg DDiirreeccttor 8

aabbout SRFabout SRF 1010

Chemicalss BBBBuussiinneesss 12

ouur stakeholders 15

challenges aand opportunities 18

managemennt waymanagemennt way 2323

our sustainaable business framewoork 25

M E S S A G E F R O MO M T HT H EE M A N A G I N GG D I R E C T O R

Dear Stakeholderss

Dear Stakeholdlderers,

I I am proudd to share our journey of sustainabablele b business durinng thehehehee

last two years. These years have beeeen a true test in various fffffacacacccccceets of

business; especiallyy oururr a apppprroach h toward a triple bottom llininininini eee.e Thiisss isis tthehe

CoCompmpanany’y’ss seseccond Suustainability Report based oon n n n GRGRGRGRGG I-G3G3 g guiuiddelines.

We have decided to puublish the report evvererrryyyy aalternnatatee year.We have decided to puublish the report evererrrry allteterrnate year.

SRF’s journey, whilee ddeeply yyy reererewwwawardrding, has been extremmelelyy challeenging

as the compapanyny f fffffacacacaaceeeeddededd arguably one of the mmost turbulent global

memeltltdodownwnwnwnw sss ss eve er witneessed. Like most t otothher corporates, SRF wwas hit

hhard by the economic slowdowownn which began unfolding in Septtember

2008 after a high grgrooowth trajectory in the fi rst half of the yearr. The

demandnd f foor our goodds declined and prices fell precipitouslyy. The

flflfluctuating exchange rrate did not help the cause either Clearly it was uctuating exchange rrate did not help the cause either. Clearly, it wasflfl

a free fall for the marrket.

YeY tt, wwee cocontinued the journey wiith stronger conviction than ever beforeYet, wwe e coontn inued the journey wiith stronger conviction than ever before

and spurred by oourur c cononfifidence inn the saying “When the going gets tough, fi

the tough get going”. The needed o offf f ththe hour was to match its extant ability

with adaptability to be able to garrner groowtwth.h. W We seized the opportunity

to improve our internal efficienciees by making our syyststememss ana d processesfi

lean using our TQM philosophy. Simultaneously, we renewed d ouourr fofocucus

in improving our cost competitiveness through enhanced productivity

and optimum resource utilizatiion. Most importantly, we remained

focused on delivering value to ourr customers using innovation as the key

instrument. Put simply, we walkked a tight and disciplined line to sttayay

afloat. The strategy paid off. Deespite slowdown in the global l ececononomomomomy, fl

the Chemicals Business net rrevenue increased bbyy 2222.5.5.5.5%%% % toooo RR R Rs.s.

594.57 crore and PBIT increaseed by 31.5%% t too RsRs. . 353535353.7555 ccc crororere..

Overall, the Chemicals Businnesesssss perfrfrfforororormmmance hahahahass bebeenenn eencncououououuuuououoo raging

and it continues to mainintataiin itss l lleeeaaaaddded rship p ininnn r r refefririgegeraraaannntnt g gasasesesesesessesee with about

40% market sshahare. ThThee FFluorosspppececececiaiaiaiallilityty BBusussinininnesess,s, w wwwwwwwhihihihihihihiih ch is essentially

drivenn b by ouuurr R&R&D experttisisissee ee iinin tthehe a arereeaaa a ofof flfluuororororrrrrriiiniii e chemistry, turnedflfl

arararouou dndd dduring thisis p p ppeereerioiod.d. TThehe ssssuuucuccecessssss oo offff f ff RRR&RRRR D is therefore criticacall.

We bbelievee t tthahahahat gogoinng g foforwrwwwwararararararddddd d FFFFFFlFlFlFlFluoroospsps eciality will provide SRSRF F wwith

a a cococoommpmmpetetiti ivivve ee e ededededgeggege ii in thhee markkeetttt.. SSSSRF’s R&D team iin n ththe ChChemicals

BBBBusiness is currrenentltly actitivevevevelylylyly innvolved in devellopopiing g ttechnologies &

processes fofoorr r phphararmama & &&& agro inttermediates.s.

EnEnEnEnvironment t tt MMMaM nagement remmmmaiains oonene of the key priorities for the

Chemiccccalalalals Business. The e CoComppppanany operates in an environment which

isss rrrrregulated by thhe e MMontreealal annd Kyoto Protocols. More recently, the

Company y hahas adopptetedd the Reaach Regulation due to the high export

coontntene t of saleses t to the European UUnion. The company is also focused on

micro leevevell issues related to wateer management & waste management.

During the last two years, thee revenue of the Chemicals Business

declined due to an accelerated pphase out of CFCs to meet deadlines

under the Montreal Protocol. This has increased the focus on

enhancing production of the neew generation refrigerant HFC 134a

which has continued as a subsstitute for CFCs. The technology &

process of HFC 134a was deveeloped in-house and SRF has the only

manufacturing facility of HFC 134a in India. This refrigerant is used

in automobiles, air conditionerss, refrigerators & pharma industries.

The company continues to incinnerate HFC 23, a Green House Gas,The company continues to incinnerate HFC 23, a Green House Gas,

as a commitment towards the KKyoto Protocol.

The Bhiwadi regiionnn,,, wwhwherererereeeeee ooooouourr CChemiccalals Business Plant is situated,The Bhiwadi regiionnnn, whwhhheeererrrreeee e ouour Chemmiicals Business Plant is situated,

comes under thhhhhheee e e rereeeeeddd d d d d zzozozozozonene witthh rereggard to ground water availabiliity. This haass

providededdeddd SS SS SS SSRFRFRFRFRFRF wwitittthh ththe daunting task of limiting the water coonsnsuumption.

ThThThThThThhe e eeee CCoCoCoCoCoCommpany haas taken this challenge with great convvicictition and started

various projects ttowards water conservation n & recycling/reeuse within

the plant. The CChemicals Busineessss bbecame a 'Zero Dischharge Unit'

in 2006-07 and ccontinues ttoo bebe so till date. Internal projectts were not

enough to replenissh wawatter babackck to the ground and therefore thhe company

decided to inininititiata ee a WWatershed Development Program forr rainwater

haharvrvesestititinngng i in n neneaarby villages in the year 2006-07. Cumuulatively the

wawateterrshhed projojecectt hahas haharvrvesesteted d ovover 1.5 million cubic meter oof rainwater

in the past two yeears. This is more e ththanan t thehe tototalal ccononsusumpmptitiooonon o of f waw teter r

used in the plant ooperations of the Chemicals Business.

The Company coontinues to be focused on energy optimizatioon projects.

Various time bouund projects were initiated in the last two yyears which

have paved the wway for the business to achieve more than 5% saving

in the annual ennergy consumption. This has helped miniimize CO2

emissions in adddition to saving valuable resources. In adddition, the

Company has inccreased the use of renewable energy and useed mustard

husk to produce low pressure steam for process usage. Thhis has also

provided fi nanciaal gains to local husk suppliers.fi

Waste minimizatiion through innovative ways has helped us iin reducing g y p g

plastic waste goinng in landfi ll. This is achieved by replacingg the plastic

barrels with bulkk packaging (Lined tankers) for procuremment of one

of the hazardous chemicals used in Fluorospeciality Plant.

Health and Safety remained at the top of our agenda annd has now

become well enttrenched parts of our value system. DDespite the

challenging milieeu, the Company has uplifted its Healthh & Safety

standards by layiing more focus on Process Safety, Structuural Safety,standards by layiing more focus on Process Safety, Structuural Safety,

Behavioral Safety and Emergency Preparedness as iss reflectedfl

through marked iimprovement in SRF’s external audit evalluation.

SRF’s commitment towards sustainability was honored in thhe business

community with the prestigious CII-ITC Sustainability AAward for

the year 2008. SSRF Chemicals Business won the 'Commmendation'

Certifi cate in thee independent category.

We believe that eemployees are our strength and unarguabbly the key

AA S H I S H B HB H A RA R A T R AR AA MMM

sto the ssucuccess off hthe ororgaganiization Our strong belief is that situationsto thee success of the ororgganiization. Our strong belief is that situations

t are tempmpororaary and institutiions are permanent. We therefore did no

nrresort to any knee-jerk reaction of downsizing during the year. In

fact, drawing strength froom our enduring value systems of trustt,

dignity and respect for eacch other, we renewed our focus on peoplee

development during the turrbulent year.

In community developmennt, we intensifi ed our efforts to reach ouut

to the most disadvantagedd of the poor in Tijara Tehsil of Alwarr, to the most disadvantagedd of the poor in Tijara Tehsil of Alwar

o Rajasthan near our Chemmicals Business Plant. The idea was to

r improve their livelihood by harnessing under-utilized land and water

e.eresources under Natural Reesource Management (N(NRMRM)) prprogograrammmmee

yDuDuriringng tthehe ppasast t twtwoo yeyearars,s tthohoususanandsd of f faf milies havave e bebeenen p pososititiiv lely

affected by our social devellopment interventions.

y Further, we carried forwaard our commitment for providing quality

ed i h d p ii il d i f h i d heducation to the underpriivileged sections of the society under the

a aegis of the SRF Founddation. The Company has adopted a

oGovernment primary schoool at village Ban-Ban in close vicinity to

n,the factory to improve thee minimum level of learning of children

nreduce drop-out rate of chhildren from school and impart education

to the girl child.

HIV/AIDS continues too remain a cause of social concernn.

sThe Company continued to strengthen its HIV/AIDS awareness

dprograms and campaign thrrough its master trainers especially trained

to propagate HIV preventioon through awareness programs.

e SRF has geared up its wwork towards inclusive growth with the

g adoption of the CII code oof conduct on affi rmative action. During

al the year various initiativess have been started including vocationa

ycourses, scholarships, remeedial centres to support the poor and needy

students from SC and ST ccategories.

r I would like to conclude byy expressing my sincere gratitude to all our

dstakeholders, including myy colleagues at SRF, for their unmatched

msupport in our journey towwards maintaining a balanced triple bottom

sline. We will continue to coonduct our business with impeccable values

s and ethics. I am sure that we will continue to build and excel SRF’s

h credibility as a professionaally managed, sustainable Company withy p f y g , p y

global ambitions and soundd values.

1010

a snapshot- USD 400 millionn (Rs. 2,000 crore) multi-product, multi-busiiness organization

- Market leader in Technical Textiles, Refrigerants, Engineeringg Plastics s and d InIndudustrial Yarrrnsnsns

- Eight locations in India and one each in Dubai, South Africa aaandnd T Thahailand

- Exporting to overr 60 countries

a domestic leader- Refrigerants: No. 1 in India (40% maarket share)

- Tyre Cord: No. 1 in India (36% marrket share)

- Belting fabrics: No. 1 in India (60% mmarket share)

- Fishnet Yarn: No. 1 in India (78% maarket share)

the only one- The only company in India to have developed indiggenous capability for manufacturing HFC 134a, a new generation Refrigerantt

- The only tyre cord company outside Japan to have won the prestigious Deming Application prize

- The only company in India to have ventured innto manufacturing Polyester Industrial Yarn fabric used in applications such as

radial tyres and belting fabrics

- One of the few companies in India to manufacture engineering plastics chips using four kinds of polymers – N6, N66, PBT & PC

a global leader- Nylon 6 Tyre Coord d FaFabbric: : 2n2n2n2n2n2ndddd dd largest producer

- Beltinng g FaFabrbricics: 22222ndndndndndn lll llara gest producer

Established in 1973 aas a manufacturer of nylon tyre cord, SRFF has since diversifi ed into a multi-business entity engaged in thef f y y , fi y g g manufacturiringng f gof industrial intermeddiates. With head quarters in Gurgaon, India, the Company has a workforce of f around 4,000 and has expanded its operations beyond borrders, into UAE, Thailand and South Afriica. In India, the plants are spread over eighht locations. Apart from the TechnicalTextiles Business, whiich enjoys a global leadership position, SRFF is a domestic leader in Refrigerants, Engiineering Plastics and Industrial Yarns. The Company also ennjoys a signifi cant presence among the keey domestic manufacturers of Polyester FFilms and Fluorospecialities. Builildidingngng on its in-house R&D facilities for Technical Textiles Business aand Chemicals Business, the company strrives to stay ahead in businnesesss ththhrorororouuuuggh h innovation in operations and product development. Winner oof the prestigious Deming Application Prrize for its Tyre CoCordrd B BBususussininininess,, SSRF F continues to redefi ne its work and corporate culture with TQMM as the backbone of its Management Waay.

11SRF Chemicals Business Sustainability Report 2008-09

Core Values & Principles

SRF has codifi ed the followwingfi

principles related to people and

work:

People Related

- Create a win-win with all

stakeholders

- Lead by example

- Self-discipline

- Participation by all

ll- Continuing education for al

Work Related

term - Focus on quality, not short-t

profitsfi

ut’- ‘Market-in’, not ‘product-ou

- Be customer-oriented

W k h f d d- Work with facts and data

mena- Act on causes, not phenom

- Be process-oriented

- Prioritize

Technicaal Textile Business

Building on its dominant position in thedomestic market, SRF enjoys a significant fipresence in the global market as well for all tht e fofoour produducts undder itits TeTe hchninicac l lTeTextile Buusiness - tyre cords, belting fabrics, coated fabbrics, andd iinddu tst iri lal yararnsns.

Its tyre cord fabrics are used as rreinforcementmaterial for all categories off tyres – frombicycles to heavy commerrcial vehicles.The company’s Belting Fabrics are used asreinforcement material for mmanufacturingconveyor belts. Its coated fabrics findfifiapplications as static and dyynamic coversin various areas ranging from AAgriculture toDefense applications, and SRRF’s industrialyarns with a market leaderrship of morethan 50% are used in the mmanufacturing of a wide range of products suuch as fishnet, firopes, industrial sewing thhread, narrow industrial tapes, Velcro, shooe strings and badminton raquet strings.

Chemicals & Polymers BusinessChemicals & Polymers Bussiness

SRF’s Chemicals & Polymmers Businessincludes the Chemicals and thhe EngineeringPlastics Business. The Chemmicals Businessin turn comprises Fluorochhemicals and Fluorospecialities Businessess. Company’s Refrigerant products are soold under thebrandname ‘FLORON’.

In the Fluorochemical spaace, SRF has grown to become the undispuuted domesticmarket leader in its core prroduct line of Refrigerants, while exporting g two-thirds of its production to world-class internationalbuyers spread across 60 countries. SRF’srefrigerants are used for a variety of industrial, commercial and household

dappplications such as refrigeration andtairr-conditioning, as a blowing agenrforr insulating foam, as a propellant forr

aerrosols, in mobile air conditioningng, , anandd aaasasa ppprp opopelellalantnt i inn memeteteredd ddosee inhalers forphharmaceutical companies.

SRSRRRFF hahass lalso b been taking responsiblee iniitiatives under the guidelines of Unitedd initiatives under the gguidelines of United

n Nations Framework Convention ons Climate Change (UNFFCCC) as a part of its

Clean Development MMechanism (CDM).

s SRF entered into thhe FluorospecialitiesnBusiness in 2003-04 as a natural progressionsof its expertise in Fluoorochemicals and itss strong knowledge of Floorine chemistry. Thisd addressing the needbusiness is focused on

for complex organo-fluorine compounds.ufl

-y integrated multiEquipped with fullyr, anali and Pantnagarlocation facilities at Maetic Business has thethe Engineering Plast

und more than 150capability to compou 0plastics in Nylon 6grades of engineering 6,

th consistent qualityNylon 66 and PBT wit y.Nylon 66 and PBT witames of TUFNYLL, With the brand naC the business caters TUFBET and TUFPCfferent sectors likee to the needs of dififferent sectors like

g, automotive, electrical, ttelecom, engineeringelectronics and industrrial sectors.

Packaging Films Bussiness

s The company’s Packaaging Film BusinessThe company s Packaproduces PET fi n which are used inlms, fi

al , cosmetics, personathe packaging of food,s oducts. The focusand health care pre move up the valueof the business is to

chain of packaging fi sms and towards thislmfiend, it is a supplier of metallized films andfiholographic fi lms apart from plain andfichemically treated polyester films.fi

A S P I R A TT IIIIIIII O NOO NO NOOOOO NNN 222 2 222 0 20 20 2 0

“To achiiiiiieveveveveveveve ee e e glglglglglglg obobbal lleaeadedership by continuously enhanccing g ororganizationall a andnd people capabilitty, developing innovative products andd

prococococcococeeeesesesesssseseseses s ththatat satisfy customers, and attaining chhalala lelennngnginingg bbenchmarks in productivity.”

1212

Chemicals Business

1989 1995 2004 2005 2006 Start-up year Chloromethanes Fluorospecialities Thermal Oxidation Plant Captive Power Plant Hydrofluoric Acid & Plant Plant fl & HFC 134a Plant Refrigerant Plant

Gases), Chloromethanes and Fluorospeciality products, which are used for a variety of industrial, commercial and household applications and intermediates for pharmaceutical & agrochemicals industry .

Based on its strength in fl uorination chemistry, plant engineering,fleffi cient plant operation and relationship with pharma and agro fimanufacturers, SRF identifi ed manufacturing of flfi uorospeciality flchemicals as a key focus area.

Customer Orientation and Innovation

Towards complete customer satisfaction, SRF follows the TQM way of satisfying customer needs on the three dimensions of Quality (Q), Cost (C) and Delivery (D).

Continual improvements in upstream and downstream processes is achieved through efficiency improvements, waste elimination, fireduction in non-conformities, and green production.

Strengths

• Proven capability in ‘process development to

commercialization’.

• Expertise in high pressure/temperature reactions,

reactions like fluorination, chlorination, bromination, fl

etc., and handling of hazardous chemicals puts SRF

Chemicals Business in top league.

• Commitment and responsibility towards quality and on-

time delivery is SRF’s hallmark.

Village Jhiwana, DistrictAlwar-301019, State Rajasthan (India), 65 km. from India's capital, New Delhi

Location of Head Office Block C, Sector 45, Gurgaon-fi122001, Haryana

Country of operation India

Nature of ownership of the company

Public Limited Company

Markets served India, Asia, Europe, USA,Middle East

Customer base Pharmaceuticals, agrochemicals, automobiles, refrigeration and air conditioning

Net sales (2007-08) Rs. 485 crore

Net sales (2008-09) Rs. 595 crore

Quantity of product soldin 2007-08

Fluorochemicals & allied Products = 12858 MTons (MT)Chloromethanes = 15835 MT

Quantity of product soldin 2008-09

Fluorochemicals & allied products = 13461 MTons (MT)Chloromethanes = 19635 MT

Employees by countries /regions

India: 405 employees

Factfi lefi


Comfort

Preservation of Food

Food Security

PIX

Life supportHealth care

High grain production

Non Stick Kitchenware

Building Construction

Car AC, Room AC

Refrigerator

Cold Storage, Food

transportation

Inhaler

Medicines from Pharma

Intermediate

Agro products from

Agro intermediate

Raw material for

PTEE (Teflon)

Gypsum as raw

material for Cement

touching many aspects of our lifeChemicals Business products touch our lives from the kitchen

to the boardroom. SRF keeps its focus on satisfying its

customers and wants to transform into a global, knowledge-

based organization that delivers the highest quality products at

the best prices to national and international customers, which

in turn will translate into strong returns for all stakeholders.

Chemicals Business products touch almost every aspect

of our life, providing comfort, preserving food, providing

healthcare support, medicines to cure disease, grain production,

kitchenware, and building construction.

1414

Whethher it is keeping your drink ice cool, providing you the comfort ooff aiair-r-coc nnditioning,helpping the world go green or helping yoour child breathe easy when asthmaa ststririkekes,s,

SRF i th p th t k p d t f f t bl ldSRF is the companny that makes products for a more comforrtable world.

product profi le

Chemicals Business

Chloromethane PPlant

- Methylene Dicchloride: Solvent in drugs, Cleaninng agent

- Chloroform: RRaw Material for Refrigerant gaases, Solvent, Lab chemical

- Carbon Tetracchloride: RawMaterial for RRefrigerant gases,

chemical, FlexibleSolvent, Lab nated rubber, foam, Chlorin

Insecticide

Refrigerant Plantsff

- Floron 22: Reffrigerant, ature Solvent,Low Temperaof Resins, PTFE.manufacture o

- Floron 134a R f i t Bl i: RRefrigerant, Blowing agent, Aerosool.

Fluorospeciality Plants- Trifluoroaceticc Acid (TFA)fl

- Penta Fluoro BBenzoic Acid (PFBA)

- Para Bromo Fluoro Benzene (PBFB)

- 2,3,5,6-Tetra flfl uorobenzyl Alcohol fl(TFBAlc)

- Ethyl Difluoro Acetate (EDFA)fl

- Ethyl Trifl o-aminocrotonate uorofl(EAC)

rma and Agro Application: Pharmediates inte

Fluorochemicals (FC)

Fluorospecialities (FS)


Responsibility and responsiveness to stakeholders is a theme

that runs throughout our approach to sustainability. SRF follows a

structured system for assessing and addressing stakeholder issues and reveals

all relevant data related to fi nance, environment, health & safety. Statutory bodies

are kept well-informed on crucial decisions and development initiatives are

shared with the stakeholders through displays, annual reports, meetings with

communities and other forms of engagements.

stakeholder engagement process

Identifi cation of primary & secondary

stakeholders.

Development of stakeholder influence andfl

dependency matrix.

Prioritizing stakeholdersthat need to be interacted with, on the basis of the

developed matrix.

Finalizing the approachesto be used for engagement

process.

Conduct the engagement. Different approaches include communication, consultation,

dialogue & partnership.

After the engagement, assessing the outcomeincluding evaluation

and result.

Sharing the learning internally.

1616

shareholders(Capital providers, Owners, Partners)

Nature of engagement- Annual General Meetings- Written communication with the

Board

Issues and concerns- Growth & profi t- Top line & bottom line performances- Risk mitigation- Compliance- Long term sustainability- Credibility & reputation

SRF’s responsesThe fi nancial performance is declared & published in all leading newspapers. These reports are also sent to SEBI. The following are available on SRF website www.srf.com:- Investors queries- Financial results- SRF v/s BSE- Shareholding pattern - Notifi cation to Stock Exchange- Weekly share price

employees(The key resource for sustainable growth)

Nature of engagement- Direct interaction with employees- Monthly and quarterly meetings- Kaizen schemes- TIE groups- Red book- Climate survey of the organization- Development dialogue- Focus group meeting

Issues and concerns- Personal development and growth- Occupational Health & Safety- Performance linked appraisals - Infrastructural development - Bonding between old and new

employees.

SRF’s responses- Regular training and development

to employees to enhance skills & capabilities facilitates personal growth.

- Regular interaction with employees through daily management meetings, Area EHS meetings, Focus group meeting, TIE groups, captures issues and grievances and facilitates in redressal.

- Red book captures HR, hygiene, personal and any other issues.

- Six monthly medical checkup of all employees monitors their health.

- Medical health insurance to all employees.

- Congenial relations between all categories of employees.

government(Statutory bodies, policy makers &regulators, revenue collectors, PollutionControl Boards, Labour & FactoryInspectors, etc.)

Nature of engagement- Regular meetings- Plant visits- Verbal & written communication

Issues and concerns- Statutory compliance- Payment of fees & taxes.- Compliance on audit/inspection

fi ndings.

SRF’s responsesAll relevant information is given to concerned statutory authorities in advance and as and when required.Regular meetings are held with statutory bodies to understand any new development on legal requirement.All fees, consents, licenses are obtained and renewed well in advance and as per schedule.


customers(The principal source of revenue & growth)

Nature of engagement- Customer feedback system- Regular meetings with OEMs, dealers

and suppliers- Interaction with end customers- Customer camps - Market survey to know customers’ need

Issues and concerns- Quality and EHS friendly products

and services- Availability of the product- Price- Product innovations- On-time and safe delivery- Customer confi dence- Easy-to-do business with - Sustainability of operations

SRF’s responses- The Integrated Management System

employed by SRF comprises various quality, product and process standards and the SRF Management Way helps in maintaining high Standards of product quality and Safety.

- TQM practices ensure proper and in-depth analysis of any problem or issue related to Product and services.

- Use of IT-enabled services and Supply Chain Management to enhance effi ciency.

- ORACLE (ERP) is used to improve various transactions taking place inside or outside the organisation.

- Customer feedback serves as an effective tool to improve product & service quality.

suppliers(Important part of SRF’s value chain, key

link between company and customers)

Nature of engagement- Vendor development and evaluation- Review of vendors’ & suppliers’ quality- Regular interaction with vendors

Issues and concerns- Adequate returns on investments- Continuity and growth of business- Improvement in processes- Timely and secured payment

SRF’s responses- Regular visits to suppliers enhance and

transfers best practices.- Regular feedback helps improve

services and relationships.- Treating them as partners.

communities(Communities around factory can be

potentially impacted by its operations)

Nature of engagement- Interaction with villagers and

sarpanch- Invitation to them to visit and join

factory functions- Interaction through NGOs- Community development programmes

Issues and concerns- Availability of water for drinking and

farming- Sanitation and hygienic conditions- Education for children- Environmental impact of existing

plant and future projects

SRF’s responses- Maintaining process parameters to

upkeep plant surroundings helps minimize any hazardous impact.

- Water harvesting projects in the nearby villages enhance the ground water level.

- Providing direct/ indirect employment to nearby villages engages the local population productively and positively.

- Regular meetings with opinion makers to take feedback and understand their issues, helps in addressing discontent, if any.

- Health checkups for the community are conducted.

- Awareness programmes on HIV/ AIDS are conducted for the community, especially for truck & tanker drivers.

1818

process to identify challenges & opportunitiesSRF has strategic planning groups both at corporate and business

levels that scan the environment for opportunities and challenges.

As a process, SRF has a 6-year Vision cycle, a 3-year strategic

planning cycle, and a one year annual planning cycle. As part of

this regular planning process, business leaders take a step back

from the operational matters and review longer-term opportunities

& challenges. The 6-year vision is broken down into the 3-year

strategic plan, and further into annual plans. As a part of each

strategic plan, the corporate strategy team defines the process that fifi

business teams follow to ensure that desired goals are met. The

following illustration of methodology shows that the process and

scope of analysis leads to identifi cation of gaps between currentfi

situation and desired situation, and formulation of a strategy to

bridge that gap.

The following table represents a selection of the opportunities and challenges available to the Chemicals Business today:

Opportunities Challenges

Financial and economic crises makes financially distressed fifi rms available at bargains.fi

Global economic crises may delay the growth engine.

FC: Accelerated HCFC phase-out Opportunities during industry churn.

FC: Constrained supply and skyrocketing prices of fluorspar flmay make low-cost production outside China unviable.

FS: Requirement of fluorinated intermediates in new agro fland pharma molecules.

FS: Short product lifecycles and very limited number of customers (<5) for most products.

FS: India perceived to be a nation that protects Intellectual

Property, and therefore safe for sharing high technology.

PURPOSE

ASPIRATIONS 2020

Grow current businesses

Improve returns from core businesses

Build new businesses

Build a high performing organisation

2011-12

2010-11

2009-10BASE YEAR

2006-07

2008-09

2007-08

breakthrough management methodology


risk management

The objective of Company’s risk management framework is

to identify potential events that may affect the Company and

manage risks in order to provide reasonable assurance regard-

ing the company’s objectives. The Board of Directors is ap-

prised of the development in risk management in the Company

on a periodic basis.

To realize the aspiration of SRF Chemicals Business to become a

global, highly customer-focused, knowledge-based organization that

delivers quality products at best prices, which in turn would translate

into strong returns for stakeholders, it is important to identify and

manage risks and challenges and optimize opportunities.

Strategic Risk Countermeasure

Product obsolescence in Fluorochemicals. Developed and commercialized new product (HFC 134a), where SRF is the domestic market leader in the OEM segmentand a major player in the trade segment. Working towardsdevelopment/ purchase of other HFCs, and capability to deliverHFC blends to customers.

Very high cost or non-availability of fl uorspar forflFluorochemicals products.

Have entered into a Joint Venture in China to ensure access toHydrogen Fluoride (‘HF’; one step downstream from fl uorspar).flAre looking at opportunities to source fl uorspar from otherflcountries as well.

Nature of Fluorospeciality products: High gestation, low product life.

Attempt to derisk process development by getting acommitment from the customer, or by fi nding two or three ficustomers who want the product. Product pricing attempts torecover investment over the life of the product.

Limited number of Fluorospeciality customers. Create strategic relationships with customers. Enter into

contracts for product supply.

Strategic Risks

Strategic plans for the Company’s business take into account

likely rise in competition, changing customer needs, obsolescence

and technological changes. The annual plans that are drawn

up consider the risks that are likely to impact the company’s

objectives in that year, and the counter-measure put in place.

The following table represents a view on the strategic risks

facing the Chemicals Business today, and the planned

countermeasures:

Operational Risks and Control

To manage the operational risks, SRF has well documented

policies and procedures, which are followed in its daily

operations. The Company has well defined delegation of power fi

and relies on a TQM system of control points, comprehensive

budgetary controls and review systems to monitor its operations.

In addition, internal audits verify compliance to defi ned policiesfi

& procedures.

2020

Financial Risks

Business operationon n neecccese saaariririlylyly iinvnvololvev s opportunities and ririsksks. Effective risk k mmmmamm nagementnt i iss ththereforrree e a key factor in safeguarding

a a cocompmpany’s valuuue.e. T TThhhhe management of opportuniititiees and riskks at SRF F isisisssss aaaaa an integralal p part of theee c corporrate governance system, not

merelyly t thehe task of one particular organizaz tiiononalal unit. Key elememeentnttss s ofofofofofofof the rissk k mmanagementntt s system are pplanning, budgeting, review,

reporting and control pprocessses.

ThThe e fofollllowowining table reprresentsts aa v vieieww on tthehe fi fififififig p nnnnananciciall risks facing g g ththe Chemicals Business today, and our plannedgg y, pfifififififi

coc unu termeaeasusureres:s:

Financial Risk Countermeasure

More than 80% of Fluorochemicals sales are USDdenominated.

Corporate Treasury hedges transactions, protecting any change between date of transaction and date of fund receipt. Conscious call not to speculate on currency futures.

More than 40% of Fluorospeciality sales are USD or Eurodenominated. This is expected to go up substantially over the next few years.

Attempting to denominate contracts in currency with a natural hedge. Also, Corporate Treasury hedges transactions between date of accrual and date of receipt.

Income from sale of Carbon Credits (incineration of R23) isEuro denominated.

Enter into futures contracts to safeguard exchange rate for CER income.

Environment Manageement

Environment manageement is dealt with at two levelss.

Macro level issues suuch as global climate are taken care oof

at the strategic level to ensure smooth phase-out of GHGG

& ODS substances. UUnit level issues are taken care by plannt

management team. A rrobust Environment Management Systemm

(EMS) is in place. Unnder EMS continual focus is being givenn

towards identifying thhe environmental aspects, its impact onn

the environment and putting adequate control to minimizee/

eliminate the pollutannts. Regular auditing, identification anddfi

implementation of Ennvironment Management Programam pavees

the way for protectionn of work area environmnmeent t and hehehelplplpsss iinn

acacacchihihihievevevevinii g ggg utmost care for ecologogyy anandd thhee e enenenviviviironment.

Social Risk & Control

Being a hazardous plant, social risk mitigation is always partrt

of the strategy and operations inn SRF Chemicals BuBusisiineneneessssssss.

The organization has a great conceern for the ssocociieetytyty i iiincncncnclllludiding

employees, contract workers and thee commmmunititi y.y.y.y. TTT Thhhhe CCompapanyny

communicates various hazards aandnd theee c ccconononontrololss iin pplalacce, , wiwiwiwiwiwiiiw thththth

the community using vaaririouous engagagagegegegeeeeemmmmentnts.s. U Utmosost caarere iiiiisss s bbeing

taken to maintaiain n ssafe & hhhheaeaeaeallllthy wwwworork k envivirronmmennnnnnnttt tttt internally

as well asas e exxternally y y tototo hh have gogo dod rellattioions wwitith thththhthhththe surrounding

vivillllagers & & & sososociety at llararge. Mananaaggemmenent tetetetetetett am strives towards

mamamaininintaining pepeacace e and haarmrmony inn ttttttttttheheheheheee nn neighborhood.


goals and targetsGoals and Targets (2007-08) Status

Establish SRF as a market leader in India for the new generation refrigerants by - Moving towards becoming globally cost competitive - Strategically positioning & improving market reach of R134a product

- R134a variable cost reduced.- Full production sold (major shares in OEMs)

Lay the foundation for exponential growth in Fluorospecialities through- Stabilizing production of current range of products

- Identification and development of new flfi uorinated fl intermediates for pharma and agro chemical industries

- Capacity of few FS product increased significantly.fi- Yield of one of the FS products increased.

- New TFBAL Plant was mechanically completed during the year.

Make SRF Chemical Business as an employer of choice by- Acquiring, developing and retaining talent

- Employee turnover ratio improved by 7.5%.

Goals and Targets (2008-09) Status

Move towards becoming a fl uorine chemicals major throughfl- Improving the viability of the Fluorospecialities Business

- Reduction in cost of conversion of current HFC 134a

- Strengthening domestic market leadership

- Marked improvement in performance of Fluorospecialities Business.- CoC of HFC 134a (stable run, fixed input prices) has fi been reduced.- Signifi cant increase in sales of HFC 134a.fi

Consolidate Bhiwadi operations by- Enhancing EHS systems

- Effi cient & Effective Utility managementfi

- 11% (77.5% to 85%) improvement in overall rating of Safety Audit carried out by a reputed agency (Assessment was done by main audit & follow up audit after nine months).- Productive downtime on account of power & steam has been reduced to almost half.- Power generation from Turbine Generator (Coal) increased by 12%.

Build people and organizational capabilities through- Standard Operating Procedures (SOPs) defi ned/improvedfi- Improvement in supervisor’s skill level

- 73% SOP were improved or introduced.- 23% Improvement in measured skills through Supervisors Skill Development Program.

2222

way forwardImproving the way we measure progress can be an important leverage point in designing policies and taking action compatible with

sustainable development.

objectives, targets & breakthrough directions (2009-10)

Accelerate growth of Fluorospecialities Business by:

- Penetrating international markets for existing products & identifying emerging products.- Commercializing ‘products-under-development’ rapidly.

signifi cant changes during reporting periodDe-bottlenecking of Hydrofluoric Acid, Chloromethanes and Fluorospeciality Plants.fl

Commissioning of 2,3,5,6 Tetrafluorobenzyl Alcohol (TFBAlc) Plant.fl

R&D: a core of business growth

Continuous innovation is the key to survive and grow in any

chemical industry. At SRF, R&D remains a critical function for

sustaining its competitive advantage. Building on core competence

of knowledge in halogen chemistry and operational excellence

in handling HF, we have intensifi ed our efforts to develop newfi

molecules for applications in pharmaceuticals and agrochemicals.

The Company's R&D department has developed technology for

the latest generation refrigerant HFC 134a & HFC 32 and has

also obtained a US patent for HFC 32. A production facility has

been set up for HFC 134a-based on in-house technology, with

quality matching international standards. We are also working on

more such substitutes and blends. These alternatives will enable

Chemicals Business to move forward and start delivering products

that will fill the vacuum created by the phase out of CFCs, and fi

eventually HCFCs under the Montreal Protocol.

Over the last three years SRF has invested about Rs. 40 crore

in R&D and built its R&D manpower strength to aggressively

pursue new product development.

tapping new markets

SRF made entry into pharma, agro-chemical/insecticide

intermediates area in India and abroad. SRF also got into

contract research and manufacturing and is actively pursuing

this business space.

Grow Refrigerant Business by:- Scaling up market presence in New Generation Refrigerants


Total Quality ManagementSRF’s sustained practice of Total Quality Management (TQM) over 15 years enabled the company to perform credibly even in the current

challenging economic scenario. The SRF group has achieved a unique milestone of 2,50,000 cumulative implemented Kaizens till 2008-

09, of which, 17,099 Kaizens have been taken up by the Chemicals Business, a feat very few Indian Company’s have attained.

- Employee groups – cross functional (own area,

maintenance, utilities, safety)

- 40 TIE groups with 100% participation

- Do 5-S, abnormality handling, AM, visual displays and

kaizen

- 20 min daily practice

- Kaizen Week is celebrated every year

- Most machines at step 3 of autonomous maintenance

TIE Group

CEO

All Employees

Head of Works

Facilitators

Daily

Mon

thly

Qua

terly

Ann

uallyChampion

(Faacilitator)

TIE: Total Involvement of Employees

We are committed to satisfying our customers of Fluorochemicals, Fluorospecialities, Chloromethanes and new products,

while attaining excellence in Quality, Environment, Health, Safety and Social Accountability.

We shall continually upgrade products, processes, technologies and employee capabilities

by adapting TQM practices that will help establish us as a credible global player in Fluorine chemistry.

Total Productive maintenance has helped Chemicals Business in

improving plant machinery with a focus on ‘Zero breakdowns’.

Business Leadership Team (BLT) (Left to right): Sunil Gulpadia (Finance & IT), R. N. Kaul (China JV), Aseem Mehrotra (Business Head), Roop Salotra (CEO – CB and PFB),Sanjay Mathur (International Sales & CDM), Rajeev Marwah (Head of Works), H.S. Dua (HR & CSR).

2424

problem solving process: an effort towards process improvements

Impa

ct o

f Im

prov

emen

t

Level of Complexity

Gold

Silver

Blue (Officer & Supervisors)

Blue (QCC)

SRF’s unique problem-solving process has grown to cumulative

cover over 750 people, with nearly 400 certified problem solvers. fi

In Chemicals Business total Certified Problem Solvers are 25. The fi

advanced problem solving “PSP Silver” programme picked up

momentum last year and the Company celebrated the first ever fi

company-wide PSP convention to recognize, motivate and deepen

the problem solving efforts of teams, giving a further fi llip tofi

TQM activities. Deep and rigorous application of TQM methods

and tools have contributed to the bottom line of the Company

through quality and cost improvement as well as significantly fi

raised the level of SRF’s own technology. To further raise the level

of TQM systems Chemicals Business has invited highly regarded

Japanese experts – Professor Kume and Dr. S Seta to the site.

They have commended the good work done and confirmed SRF’sfi

approach towards sustained capability building.

The PSP Program

SRF’s problem-solving process is a standardized and robust

methodology for solving a range of problems. This includes

improvement project, within the current system, or outside the

current system.

PSP’s Objective

Develop people’s ability to solve problems, based on a foundation

of technical knowledge. Provide certifi ed skills in problemfi

solving, using a structured methodology and tools, to identify

and complete themes emanating from annual plans.

Unique Three-Tier Certifi cation Systemfi

A unique 3-tier certification system (established in 2002) is shown fi

here. Problems are classified on the level of complexity involved in fi

the project as well as the business impact of solving the problem.

At the basic level, a large number of problems are solved using

the 7 QC tools and other simple tools, a few themes address more

complex and chronic issues, and select ones attack complex,

multi- functional problems. The levels are classified as Blue, Silverfi

and Gold, representing increasing levels of complexity.

Completed Silver PSP Projects - A Glimpse

Following is a summary of successfully completed Silver PSP

projects at the Chemical Business:

• In HF plant, reduction of Oleum ratio with respect to total

Sulfuric acid.

• Safe Disposal of spent Catalyst, though in-house technology

development.

• Increased HF plant stream capacity by 25%.


identifi cation of key focus areaCompany endeavors to identify key areas which affects its triple bottom line. Macro level issues are identified by strategic planning fi

group, which scans the environment with reference to applicable multilateral environmental agreements, share their findings andfi

make proposals to the business leadership team for relevant initiatives. Micro level issues are being identified by the functional headfi

of respective plants and departments. During the year following key focus areas identified for a Sustainable Business Model:fi

Economic Environment Social

- Phasing out of CFC & Carbon Tetrachloride & developing in-house technologies for new generation Refrigerants by strengthening R&D

- Minimizing the production of Carbon Tetrachloride by converting it into anenvironmentally-friendly chemical

- Stabilizing & developing the Fluorospeciality Chemicals forstrengthening the company’s presence in Fluorine-based chemicals

- Energy Conservation

- Water Conservation

- Replenishment of ground water tomake SRF Chemicals Business waterpositive.

- Enhancing the use of Renewableenergy.

- Waste minimization throughinnovative solutions.

- Strengthen the Bonding between new

and old employees

- Retaining skilled and experienced

manpower

- Excelling the process safety

- Contribution towards upliftment of

education system in nearby villagers

- Natural Resource Management

(NRM) project

beyond statutory compliance- Adoption of Integrated Management System including

ISO-9001, ISO-14001, OHSAS-18001 & SA-8000.

- Integrated watershed development program in partnership

with NGOs.

- Adoption of Responsible Care Management system & having

Responsible Care logo.

- Target-based energy conservation programs to reduce

energy consumption

- Target-based water conservation programs to reduce water

consumption.

- 35% plantation as against required 33%.

- Providing assistance to local administration, villagers,

nearby industries in mitigating industrial/local emergencies.

(e.g. fi re incidence, evacuation from well).fi

our profi t

growth in challenging times

The year 2008-09 presented SRF with an opportunity to convert challenges into opportunities.

During the year, despite global slowdown, net revenue of Chemical Business went up

by 22.5% and PBIT increased by 31.5% over the previous year.

SRF maintains its domestic leadership in Refrigerant gas business with about 40% market share.

It continues to focus sharply on Fluorospecialities Business as an engine for accelerated growth.

The Company has met the challenge of Montreal Protocol and the resultant phase-out of CFCs

by developing the substitute product HFC 134a with in-house technology.

SRF is the fi rst and the only manufacturer of HFC 134a in India and is the leading supplier

to major domestic manufacturers of cars and refrigerators.

- Aseem Mehrotra, VP & Business Head

32% growth in operating profi t (PBBIT)

SRF strives to achievee Economic Sustainability by working towards the strategic goals

enunciated in the Vision statementt.

It deploys its skills to ennsure that the product mix it offers mattches the demand in markets

where it wishes to be prresent by developing long-term relationnships with its customers and

proviiding lasting solutions in the Chemical Business.

2828

management approach

Policy

A Progressive Management believes in developing system and

its own benchmarks. System implementation in its true spirit

has been deeply entrenched in SRF’s business philosophy.

Control systems are deployed and strengthened everyday and

are critical from the operating level all the way to the Board

of Directors (BOD). Internal Control systems assure the BOD

and the Management that there are systemic structures for:

- Proper planning of various business elements and achieving

set targets;

- Risk evaluation that takes place in early stages and regular

reviews;

- Ensuring reliability and effectiveness of the financial andfi

operational reporting;

- Ensuring high degree of legal and regulatory compliance;

- Protection of company’s asset; and

- Prevention and detection of fraud and error.

The Company uses the Enterprise Resource Planning (ERP)

package supported by in-built controls that ensures reliable

and timely financial reporting. A well established internal fi

audit system periodically reviews the controls and compliance

of laws and regulation, and the environment under which the

internal control exits. Internal audit also checks the internal

control for effectiveness and the necessary changes arising out

of inadequacies, if any, are incorporated into the system with

an objective of matching its processes and controls with global

best practices. All financial and audit control systems are also fi

reviewed by the audit Committee of the Board of Directors.

The Company is fully committed towards ensuring an effective

control on its internal environment. In an endeavor to enhance

monitoring of internal controls, the company successfully

implemented Control Self Assessment (CSA) during the

year 2008-09. CSA is the process through which internal

control effectiveness is examined and assessed periodically by

management, process owners and control owners to provide

reasonable assurance that all business objectives will be met.

Objectives and Goals

SRF has stipulated a set of interrelated control systems, covering

all financial and operating functions, which provide reasonable fi

assurance that the set objectives are met. Some significantfi

features of these controls include:

(a) the planning system, which ensures that challenging goals

are drawn up, and detailed strategies and action plan

formulated for achieving these goals.

(b) risk assessment system, which accounts for all likely threats

to the achievement of the plans and draws up contingencies

to mitigate them. The review systems track the progress

of the plan and ensure that timely remedial measures are

taken to minimize deviations from the plan.


SRF total revenue: Rs. 1812.97 crore

Polymer Business

Chemicals Business(Fluorochemicals, Chloromethanes,

Fluorospecialities) follows...

micals and Polymer BusinessChemChem

SRF Chemicals Business operates in an environment regulated

by the Montreal and Kyoto Protocols. Since over 80% of the

production of refrigerant gases is sold in international markets,

REACH regulations governing the export of hazardous chemicals

to the EU have become increasingly relevant. Thanks to the

involvement of top leadership and strong processes in place, the

barriers imposed by multilateral agreements have been converted

into opportunities. We are the fi rst and only Company in thefi

country to have introduced the new-generation refrigerant,

HFC 134a, based on in-house technology. We have also

key fi nancial performance

introduced a number of new products in the Fluorospecialities

space in the last five years based on in-house R&D. Today, we fi

enjoy the reputation of being a credible, reliable and ethical

partner for our customers, suppliers and other stakeholders. We

command domestic market leadership with around 40% share

in the refrigerant gas business, and are preferred suppliers to top

global agro and pharma companies for Fluorospecialities. The

SRF Chemicals Business also benefi ted from reduction in energyfi

costs due to captive generation of power.

Accountability

Thorough discussion on Global climate change and its effect

on the business and other fi nancial aspects is an integral partfi

of the Board meeting. The climate issue is considered critical

especially for the Chemicals Business and risks associated with

it are given prime importance. The R&D work in progress to

replace the global warming / Ozone layer depleting substances

is updated in every board meeting. The resources required to

expedite the R&D process is on the top of the agenda of the

organization. Board perceives such challenges as an opportunity

and approves R&D work on new generation molecules.

Payment to Providers of Capital

On-time payment to suppliers is one of the key control points of

the finance and accounts department and this is reviewed and fi

reported on a monthly basis.

3030

22.5%

31.5%

84.3%

*

*SRF group as a whole.

The revenue increase has been achieved despite the business

having been under pressure due to complete phase-out of

the Ozone-depleting substance, Chlorofluorocarbons (CFCs) fl

under Montreal protocol, by 31st July 2008.

In addition to CERs, the Business witnessed an 80% growth in

FS, and a 40% growth in HFC 134a, which contributed to the

increase in operating profit.fi

SRF group has paid 100% dividend for the year 2008-09.

direct economic benefi t

(All fi gures in Rs. crore)fi

(All figures in Rs. crore)fi

Employee Wages Number of Jobs Created

indirect economic benefi t

(All fi gures in Rs. crore)fi (All fi gures in Rs. crore)fi


economic performance indicators

(All fi gures in Rs. crore)fi (All figures in Rs. crore)fi

contribution to the national exchequer

(All fi gures in Rs. crore)fi (All fi gures in Rs. crore)fi

investment on infrastructure

(All fi gures in Rs. crore)fi (All figures in Rs. lakh)fi

ourenvironment

substantially reducing our ecological footprint

SRF has aggressively pursued closed-loop systems of production and disposal

to minimize its environmental footprint in energy, water and hazardous waste.

Notably, SRF’s Chemicals Business prevented 7.9 Million M Tons equivalent of CO2 from being released

into the atmosphere over the previous two years, by incinerating HFC 23, a high potential GHG.

The Company became a ‘zero-discharge’ unit in 2006-07 and maintains that standing till date.

SRF’s Watershed Development Program resulted in harvesting more water than Chemicals Business

consumed in its operations: 1.5 million cubic meter of rainwater harvested over the previous two years.

SRF has also progressively reduced its energy consumption by over 5% with respect to previous year.

For these and other measures, the Company was conferred the

prestigious CII-ITC Sustainability Award (commendation for strong commitment) in 2008.

- Rajeev Marwah, VP & Head of Works

The long-term viaability of natural capital is critical for mmany areas of human endeavor.

SRF seeks to balaance society’s need to provide ecologicaal protection and maintain stableSRF seeks to balaance society s need to provide ecologicaal protection and maintain stable

environmental connditions. Its Environmental Sustainabillity programme not only insists on

maintainiing the existing natural environment buut actively promotes and

invessts in engineering solutions that supporrt human well-being

and aree compatible with sustaining natural ennvironmental systems.

3434

management approach

A healthy Environment Management is the key driver of any

Chemical Industry. At SRF Chemicals Business, Management

is committed to fi nd innovative ways of reducing pollutantsfi

at source and optimizing the usage of natural resources. SRF

has initiated programs to minimize waste and responsibly

dispose off the waste generated. Various initiatives have been

taken, especially over the last three years, with the backing

of top management towards energy conservation, water

conservation, replenishment of groundwater and resource

conservation. All macro level environmental issues are

discussed in top management meetings and Board of Director

meetings. In addition to this, micro and local level issues such

as water conservation are also a part of Unit Leadership Team

discussions. Continuous focus is being given for improving the

work area environment.

Objectives and Goals

Clear-cut goals and objectives are established at various levels

of management starting from the top. These objectives cover:

improvement in infrastructure to reduce pollutants, increasing

awareness of new initiatives in environment management,

conservation of energy, natural resource, reduction in waste

generation etc. These objectives are part of annual planning

cycle and updated on continuous basis. The progress is reviewed

by top management on monthly basis to ensure proper and

timely implementation.

Prime Accountability

The prime accountability to maintain Environment

Management lies with the Head of Works. The Environment

Health & Safety (EHS) department coordinates with all the

departments in the plant to ensure proper implementation of

statutory requirements pertaining to EHS and safe operating

procedures. EHS department is also responsible for liaison with

the statutory authorities.

Environment Management: Focus from Top

The following hierarchy is followed in Environment management.

This clearly shows involvement of the Top Management and

representation of Director (Environment & Safety) in the BOD.

Board of Directors

CEO ( Chemicals Business)

Head of the Works

Functional Head including Process, Engineerirng, EHS, etc.

HEAD (EHS)

Manager (EHS)

Responsible for maintaining EHS Management System in day-to-day operations at the unit level.

Director (Environment & Safety)

Manager (EHS)


EHS management is a value system and an intrinsic part of

the business. The Company’s Integrated Management System

includes QMS, EMS, OHSAS, SA-8000 and the SRF Way of

Management. It has integrated Environment management

at all levels of planning and operation. Accolades such as

the Responsible Care logo and the CII Sustainability Award

2008 (commendation for strong commitment) testify the

commitment and efforts towards environment management.

The EHS system is well depicted in our Holistic EHS Model.

This model is engrained in all our processes.

Clean Technology

Three Tier EHS Management

Focus on 5S

HIRA & A/I Evaluation

Skill Development

PPE’s Management

Health Monitoring

Audit, Inspection and Evaluation

Incident Analysis

Emergency Response team

Water Conservation

Energy Conservation

Hazop

Operational Safety

EHS Training

(OHSAS-18001,ISO-14001)

Focus on Systems Focus on Design Focus on People Environment Protection* Emergency Response Plan* Resource Conservation

ENVIRONMENT

HEALTH & SAFETY Safe & Healthy People

Clean & Green Environment

Social Acclaim

Global Competitiveness

Sustainable Business

Legal Compliance Framework – Major Accident Hazard (MAH) Unit

Commitment from Top Management

Management Structure

Emergency Management

Review Mechanism

Bench MarkingSelf AssessmentIMSRobust

Systems

the holistic EHS model

environment health & safety managementa value system

3636

Into the atmosphere

Raw materials Products

Engergy Hazardous Wastes

Into the water

Cl2, MeOH, NaOHH2S2O7, H2SO4, CaF2, TCETCAC, Benzonitrile, KF, FB

CH2Cl2, CHCl3, CCl4HF, R22/23, R 134aTFA, PFBA, PBFB

Coal, Mustard Husk, HSD, LSHSRSEB ElectricityGround Water

Spent oil Plastics Barrels

Water discharged outside premises - 0 KL/Year

Well within prescribed government norms

eco diagram

- Non Destructive Testing

- Scrubbing System

- Remote leak detection system/ Sensors.

- Training to the employees & Contract workers.

- Regular monitoring of work area & ambient environment.

Key Raw Material ConsumptionKey Raw Material CConsumption

Name of the Raw Material Quantity in M Tons

2006-07 2007-08 2008-09

Fluorspar 13992.97 16259.24 20040.14

Chloromethanes 7113.27 8701.11 4629.73

Sulphuric Acid 15395.10 18038.15 20126.89

Chlorine 32670.01 27490 34414.15

Handling Impact

Products like chlorine, hydrogen fluoride, hydrochloric acid, fl

refrigerants, etc, can cause air and water polluion and have an

impact on the communities. To negate the adverse impact, SRF

has the following controls in place:

- Safety by Design

- Inbuilt Safety System and automatic controls

- Compatible material of construction

- Electronic instrumentation like DCS, PLC for monitoring

and control

Product Packaging

Majority of company’s products are delivered in reusable

packaging like cylinders, tonners, tankers and ISO containers.


energy management

Fuel Consumption

Four types of fuels are used for producing steam, power and

hot air. Coal and husk are being used in the thermal power

plant while HSD & LSHS are used in diesel generators,

boilers, and air pre-heaters.

Direct and Indirect Energy Consumption

There are three different sources of Power. The Company has

its own Captive Power Plant using coal as a fuel. In addition to

steam, turbine diesel generators have been provided as backup.

Power connection from Rajasthan State Electricity Board (RSEB)

is primarily used for lighting & non-critical purposes.

Endeavor towards Energy Sustainability

Energy remains a key input for the Chemical Plant. Use of energy

starts right from receiving the raw material, to dispatch of the

product. Various forms of energy (e.g. thermal & electrical) is

required to perform various processes such as running of moving

machineries, heating in distillation column, etc. Following

initiatives have been taken to achieve energy sustainability for

Chemicals Business.

Reliability & Independence in Power Generation: Before setting up

our own Captive Power Plant, the Company was dependent on the

power supplied by Rajasthan State Electricity Board (RSEB) and

captive diesel generators (DG sets). These power sources were proneG

to frequent power failures and high cost. Power failures not only

cause production loss but have a potential to cause environmental

damage due to sudden disruption in process.

The reliability of power was achieved after successful

commissioning of the Captive Thermal Power Plant using coal as

fuel in 2006-07 and stabilization in the year 2007-08. The Captive

Power Plant meets the site’s steady state power requirement.

(All units in KWH)

Expenditure on Environment Management Program

SRF is committed to providing financial resources for environment improvement programs. Investments in some of the specififi c fi

environment improvement projects undertaken in 2007-08 and 2008-09 are as follows:

Project Area (2007-08) Expenditure (Rs. lakhs)

Environment Management Programs on energy conservation & water conservation

88.3

Project Area (2008-09) Expenditure (Rs. lakhs)

Environment Management Programs onenergy conservation, water conservation,noise reduction and improvement in workarea environment

90.3

3838

Use of Renewable Energy

In addition to the coal-based boilers, a boiler using

biomass (mustard husk) has been installed to produce

steam for captive use. This has not only saved on fossil

fuel consumption but also provided a cleaner environment

by consuming agriculture waste (mustard husk) in an eco-

friendly manner. The use of husk has saved coal, thereby

reducing carbon dioxide and sulphur dioxide generation

from coal. Husk is procured from the surrounding villages,

within a radius if 50-kilometers. With the increase in

husk consumption, the earnings of the local community is

increasing every year.

energy conservation programmeGreening the business processes is one of the key initiatives to

reduce natural resource consumption. The Energy Conservation

program has been given an impetus since 2006-07, when the

Company adopted a multi-dimensional approach:

1. Engaging two external agencies Forbes Marshal and

TERI (Tata Energy and Research Institute) to assess and

identify the avenues for Thermal and Electrical saving in

different processes.

2. Conducting Internal Audits with SRF’s internal technical

and shop floor personnel.fl

Certain exercises were carried out on optimizing the power

consumption in utilities and steam consumption in various unit

operations. Based on external fi ndings and company’s internal fi

audit, taking previous year as the baseline, a target of 5%

reduction in energy consumption was set for the years 2007-08

and 2008-09.

Low Cost of Energy

Power generated from the captive DG sets was expensive

which directly affected the bottom line of the Company. Power

produced from steam turbine generated by coal-fired boiler fi

and process steam generated using mustard husk as fuel, has

immensely reduced the cost of energy.

Thrust towards Continual Improvement

After stabilization of captive power plant in 2007-08, SRF’s

next focus was to optimize the consumption of coal to meet the

benchmark. Various initiatives were taken to further strengthen

the storage, crushing, conveying, and combustion of coal to

achieve improved coal-to-power ratio and coal-to-steam ratio.


During the year 2007-08, considerable thrust has been given

to minimize the power consumption of various utilities, with

a special focus on refrigerant compressors. Following is the

gist of initiatives implemented during the year.

Optimization in Compressor

1. Modification in HFC Instrument Air Compressor fi

to optimize its running during no-load days and

reduction in speed of the compressor.

2. In HCl and Chloromethanes condensation system in

Chloromethanes plant, replacement of a heat exchanger

resulted in running of two compressors in place of earlier

three compressors for the same refrigeration load.

3. In refrigeration (R30) system of Fluorochemicals plant,

chiller flow was optimized to meet the requirement fl

with one compressor and two pumps in place of earlier

two compressors & two pumps.

2007-08

Optimization in Cooling Towers

1. Optimization in running of FSP cooling tower fan by

providing a water temperature sensor-based auto cut

system.

2. In Fluorochemicals plant, energy optimization was done by

reducing the number of Cooling tower pumps & replacing

one of the pumps with lower power rating pump.

Optimization in Condensate Recovery System

1. Chloromethanes Plant condensate water was being

transferred to lagoon for horticulture uses without

utilizing its heat energy. A Condensate Recovery

System was installed in the power plant to utilize the

heat from the condensate.

4040

Successful implementation of energy saving schemes in 2007-

08 provided a big boost to the Energy Conservation program.

In 2008-09, major thrust was given to Captive Power Plant

as it was stabilized by this time. Following is the list of jobs

implemented during the year:

Optimization in Power Plant

1. In Coal boiler PA fan, VFD was installed to optimize

the power consumption at variable load.

2. In the Captive Power Plant (CPP), Condensate

Extraction Pump (CEP) was provided with VFD to

optimize the power at full load and minimize the power

loss during re-circulation.

3. In coal-fired boiler, high-pressure steam is generated. fi

The pressure of this steam was being reduced to low-

pressure steam using PRDS, suitable for use in different

processes as heating media. This was resulting in loss

of heat energy. To reduce this loss and save energy,

an extraction system was introduced in high-pressure

steam turbine. Through this system medium-pressure

steam was extracted from turbine and reduced to low-

pressure steam for process usage. This has saved energy

loss that was earlier occuring during direct reduction of

high-pressure to low-pressure steam.

4. In CPP, Air Compressor was running on No Load for 3

to 4 min after running on load for 1 min and stopped

for 45 sec. The no-load running has been reduced and

2008-09

compressor stoppage time increased to save power.

5. In CPP, raw water pump had 60 m3/hr flow against the fl

constant requirement of 35 m3/hr. The pump impeller

was trimmed to match the required flow, which resulted fl

in power saving.

Other Initiatives

1. General lighting is supplied at 245 V in various parts

of the premises. By installing step-down transformers

and using CFL & Metal Halide for almost 30% of total

lighting, lighting voltage was reduced by 8% without

affecting the illunination level, thereby saving energy.

2. In the HF Plant, atmospheric air was being directly

fed to the Hot Air Generator (HAG) system. A new

heat exchanger was installed to utilize the heat of HAG

exhaust. This preheats the incoming air and reduces

fuel consumption.

3. In the Refrigerant Gas Plant, higher-size cooling tower pump

was replaced with a lower-size pump to meet steady state

requirement, thereby reducing the power consumption.

4. In Refrigerant Gas Plant, brine pump was provided with

a VFD to regulate the flow as per seasonal requirement. fl

5. In Chloromethanes Plant’s cooling tower, aluminium

blade of cell-1 was replaced with lighter FRP blades,

resulting in reduction of power consumption. This

modifi cation was horizontally deployed to cell-2.fi

result of energy conservation programme


Water Management

The Company draws groundwater for its operations. Water is

withdrawn with the help of nine bore wells installed in different

parts of the premises with the consent of concerned authorities.

In spite of increase in output and number of products, water

withdrawal is about 63% of the total permissible withdrawal.

This is achieved through various initiatives taken for water

conservation during the year.

The Company has adopted two focus areas:

• Conservation

• Replenishment

The SRF Chemicals Business plant is located in Bhiwadi

region of Rajasthan state. This location is classified as Redfi

(exploited) Zone due to the low levels of ground water

by Central Ground Water Authority. After successful

commissioning of the Captive Thermal Power Plant in

2006-07 there was a quantum increase in the demand for

water thereby creating a thrust and need for conservation

water conservation & replenishment

and replenishment of water. Areas and processes were

identified inside the premises for water conservation and fi

rain water harvesting.

Since the total area of the plant was not sufficient to

replenish a large amount of water equal to water withdrawal

from the ground, the company undertook water harvesting

& replenishment in nearby villages under Company’s

Natural Resource Management project. These initiatives

witnessed tremendous support from management,

employees and villagers.

various initiatives towards water conservation (inside the premises)

SN Projects Year Potential for

Saving (Kiloliter/

day)

1 Utilization of RO reject water for back wash / rinsing of Multigrade filter, softner fi

and Side stream fi lters in DM plant.fi

2007-08 60

2 Installation of on-line Silica monitoring system to reduce the boiler blow down. 2007-08 6

3 Modifi cation and upgradation in the chemical treatment programme to operatefi

cooling tower at 9 COC against the earlier 6 COC. This has reduced the cooling

tower blow down by 30%.

2008-09 20

4 Utilization of the reject water from ultra fi ltration system into cooling tower as make upfifi

water.

2008-09 23

4242

water replenishment (outside the premises)

water table (measuring the results)

Change in water table was assessed by taking fortnightly

observations. Five piezometers were installed during May 2007

for capturing the changes in the groundwater table.

Interpretation of piezometers reading for water table has

provided the confidence that there was a rise in water tablefi

during monsoon season and pattern reverted after withdrawal

of rainfall under all the piezometers. This has also established

the success of rain water harvesting structures.

Water Consumption v/s Water Replenishment

As a part of Clean Development Mechanism, CB has

taken up an Integrated Natural Resource Management

(Watershed) initiative in partnership with the NGO

PRADAN for livelihood improvement and environmental

& ecological conservation in the highly degraded ecosystem

of Aravali hills in Rajasthan.

The project involves construction of water harvesting

structures like earthen check dams (paals) and loose stone

based check dams to harvest rain water which would

otherwise fl ow off. In the catchment area of the earthenfl

check dams, where land is extremely undulated, terracing,

land leveling and field Bunding is done to make these fi

wastelands cultivable.

• Created a total catchment area of 7,065 Ha and water

holding capacity of 251 Ha meters in the 107 Paals;

• Harvested 1.5 Million Cubic Meter (MCM) rainwater

(cumulative 2 yrs)


effl uent water

There are two types of effluent water generated in the Plantsfl :

Plant Effl uent and Domestic Efflfl uent. fl

Treatment of Plant Effl uent (Efflfl uent Treatment Plantfl )

Plant effluent includes process efflfl uent & utility efflfl uent.fl

The process effl uent comes from different plants, where, after fl

scrubbing and absorbing HF vapors, water goes to the Effluentfl

Treatment Plant (ETP). There it is treated with milk of lime to

remove acidity and fluoride. After treatment, part of this water fl

is recycled for scrubbing HF vapors. The remaining water is

sent to the lagoon where effluent from other utilities is mixedfl

and water is used in horticulture. This water is also used for

fire water makeup. fi

Domestic Effl uent Treatment (fl Sewage Treatment Plant)

An STP with a capacity of 80 Kiloliters per day was installed and

commissioned in 2006-07. This plant treats the sewage coming

from different washrooms and lavatories inside the company

premises and the canteen wastewater. The treated water from

the STP is being used in horticulture and sludge as manure.

Quality of Treated Water used for Horticulture

controlling air pollution

Air pollution control measures including controlling emission

levels and monitoring ambient air quality have helped improve

the work area environment.

Air Pollution: Sources and Treatment

There are two sources of air pollutants from the plant: hazardous

chemicals in various plants and suspended particles (dust) in

Captive power Plant.

In Chemical plant hazardous vapors are emanated at the time

of opening the equipment for maintenance, filling of the tankers fi

and sampling of the chemicals. Hydrofluoric acid, Hydrochloricfl

acid vapors and Chlorine could be the main air pollutants.

The HF vapors are taken care of by being sucked through the

zero discharge

The Company uses all the treated effluent

(Plant & Domestic) inside the premises in

horticulture. No water is discharged outside

the factory boundary limits, making the

SRF Chemicals Business a ‘Zero Discharge

Complex’.

4444

waste management

100 Per Cent Recycling of Solid Waste

As the site has grown, waste generation and disposal has become

a challenge for the organization. Continuous focus on waste

management of hazardous and non-hazardous waste has helped

containing hazards and keeping the surroundings clean. In

ETP, the acidic water from plant is neutralized with lime slurry

resulting in the formation of insoluble calcium fluoride, whichfl

is separated from the liquid effluent and dried in the sludge bed.fl

In HF manufacturing, Fluorspar/Calcium fluoride is the key raw fl

material. As the sludge from the ETP has a composition similar

to the raw material, sludge is mixed and fed to the rotary kiln to

recover the fl uoride value in the sludge. Any sludge generated isfl

reused in the process.

Spent Oils

Spent Oil from machines is collected by individual departments

and sent to the storage yard. Stores department makes

arrangement for its proper storage. Every alternate month, used

oil is sold to an authorized dealer, duly approved by the State

Pollution Control Board.

Electrostatic Precipitator

Electrostatic Precipitators (ESPs) have been installed in the

Thermal Power Plant. Installed between the boiler and final stack, fi

ESPs eliminate the suspended particulate matter from the boiler

fl ue gases, due to electrostatic action. Three (one additional fifl eldfi

as against the design requirement of two fields) fifi elds are providedfi

to enhance the separation of dust. Effective operation of ESPs has

resulted in achieving an SPM level in the fl ue gases, within the fl

consented limit of 50 Mg/M3.

Central Absorption System (CAS), where they get scrubbed

and absorbed in water. The liquid effluent goes for treatment infl

the Effl uent Treatment Plant and after treatment this water is fl

recycled to the scrubber for scrubbing HF vapors.

The Chlorine gas from the chlorine tonner during emptying

process, is sucked through a suction system and absorbed in the

hypo-absorption system using dilute Sodium Hydroxide solution

as the absorbing medium. The final product is converted into fi

Sodium Hypochlorite, which is a very useful by-product. In

Chloromethanes Plant, the Hydrochloric acid gas, from the

primary HCl scrubbing tower, is absorbed in the HCl absorption

system, using process water as the absorbing medium. The tanker

during fi lling is provided with hood and suction system to scrubfi

the hazardous vapours and control environmental pollution.

The final emission from all stacks is monitored and analyzed fi

with the help of sophisticated equipment and meets the

stipulated requirements of the Rajasthan Pollution Control

Board (RPCB) norms.

Ambient Air Monitoring

To measure ambient air quality, four ambient air monitors (High

Volume samplers) are installed in all four directions. Monthly

monitoring is done to assess the quality of ambient air with regard

to standards prescribed by the State pollution control Board.

Quality of Ambient Air


The copy of the manifest is sent to RPCB for their reference

and record. This is as per the requirement of the Hazardous

Waste (Management & Handling) Rules 1989, amended 2003

& 2008.

Waste Drums

In Fluorospeciality Plant, few of the raw materials come in plastic

barrels, which after emptying becomes hazardous waste. After

emptying the barrels same has to be decontaminated & cut into

pieces and sent to CTDF landfi ll site at Udaipur. In an effort tofifi

reduce the hazardous waste drums, an agreement was made with

a supplier to provide the raw material in tankers. During 2008-09,

this raw material was partly brought in tankers, thereby reducing

the generation of more than 8.0 M Tons of plastic landfill.fifi

Note: Increase in cut barrels quantity is mainly due to augmentation in production capacity.

land and biodiversity

Presently, the Chemicals Business owns 85.625 acres of land at

its factory site of which,approximately 31 acres of land is used for

industrial purposes. This area does not come under biodiversity

sensitive zone. However, before starting any new project, a

comprehensive Environment Impact Assessment (EIA) Study is

conducted and stakeholders are consulted to assess the possible

impacts, as well as address issues arising from this process, if any

The green belt area of the plant is being increased continuously,

as an effective pollution mitigating technique, as well as to

serve as a biological indicator for the pollutants released from

the premises of the plant. Specific soil conservation activities fi

take up by the Company involve construction of check dams to

prevent surface water run-off during the rains and soil erosion

and leveling of undulating wastelands. In last two years nearly

605.41 acres of village wasteland in the adjoining areas has been

leveled and rendered cultivable through SRF’s efforts.

Development of Green Land

The Company has installed a horticulture water reservoir and

a piping network to cater to the water requirement of whole

plant area for developing and maintaining the green belt. It uses

recycled and treated water. Around 35 per cent of the plant area

is under the green belt programme.

By-product Disposal

Closed system for Fly Ash conveying and fillingfi : Fly ash is generated

during operation of FBC boilers installed at the Captive Power

Plant, and is stored in silos. During 2007-08, closed conveying

system for fl y ash was installed, thereby eliminating the possibilityflfl

of fl y ash getting into the atmosphere during transferring from ESP flfl

to silo. In 2008-09 SRF got into a contract with a cement factory

in the vicinity to supply fly ash in closed tankers. This has resulted flfl

in safe and environment friendly transportation and disposal of the

Fly Ash. 23387 M Tons of dry fly ash was transferred to the cement flfl

plant without having to send any quantity for landfill. fi

Gypsum: Gypsum is one of the by-products generated during

manufacturing of the Hydrofl uoric acid. It is being sold to variousfl

cement manufacturers/consumers. In the year 2007-08 total

Gypsum produced to the tune of 28498.58 M Tons & in the year

2008-09, 32087.11 M Tons was disposed off to various consumers.

Waste generation

4646

Ozone Depleting Substances (ODS) and Green House Gases (GHG)

The fl uorocarbon industry is in a state of flfl ux. The fl

chlorofl uorocarbons (CFC-11 and -12), were found to befl

Ozone Depleting Substances (ODS), and have been phased out

under the Montreal Protocol. Another very popular refrigerant,

hydrochlorofluorocarbon-22 (HCFC-22), also an ODS, isfl

scheduled for phase out by 2030. The cutback in production will

commence from 2013. A by-product of HCFC-22, HCFC-23,

was found to be a potent greenhouse gas (‘GHG’), and is being

actively targeted under the Kyoto Protocol. The most effective

replacement of CFC-12 is a fluoro-refrigerant HFC 134a (hydro fl

fl uorocarbon), whose phase-out has already been scheduled in fl

Europe under the European Union’s f-gas regulations, since it,

too, is a GHG.

In this environment of strict regulation, the fluorocarbonsfl

industry fi nds majors and bit players alike struggling to maintainfi

their footing. The best room and car refrigeration technology

available today is built around HFCs and their blends (R404a,

407c, 410a) whose patents are scheduled to expire over the next

two years (between 2009 and 2011) in different geographies. This

opens up opportunities for a restructuring within the industry

as some players position themselves for the impending change

better than others. At the same time, this shift introduces into

India, new fl uoro-refrigerants that substitute HCFC-22 withfl

HFC blends where global players have a significant edge, which fi

changes market dynamics substantially.

ODS Phase out

The Chemicals Business has been phasing out process agent and

solvent use of carbon tetrachloride (an ODS) and CFCs over

the past ten years:

For phasing out Chloro-fluorocarbons (CFCs) as per fl

commitments under the Montreal Protocol, the Chemicals

Business received financial assistance from the fi Government.

2006-07 2007-08 2008-09

Financial assistance

from the government

(Rs. crore)

11.98 25.49 11.89

CDM project: GHG reduction

SRF is among the few companies in India who are major

beneficiaries of the CDM project. The initiative of incinerating fi

the global warming gas R-23 has earned SRF ‘Carbon Credits’.

Incineration of GHG R-23 (M Tons)

initiatives to meet climate change challengesODS phase out (in M Tons)

Note: R-23 incineration eligible for GHG emission reduction


GHG emission and control

CO2 generation from fuel (M Tons)

For producing different sources of energy like power, steam and

hot air, different fuels are used. There is a continual effort towards

reduction in GHG emission despite increase in production volumeG

due to added capacities in CMS, HF & FS Plant. This is achieved

due to increased use of Biomass.

other issues

Chemical Spills

There was no major spillage inside or outside the company premises

during 2007-08 & 2008-09. All chemical storage tanks & pumps

are provided with a proper dyke of adequate capacity. Any spillage

is contained inside the dyke and recycled back to the process. If

recycling is not feasible, then the chemical is neutralized with

proper neutralizing agent and transferred to the Effluent Treatmentfl

Plant (ETP) for further treatment. A thorough On-Site Emergency

Plan is available for mitigating any Chemical spill, small or large.

Transportation of Hazardous Chemicals

All safety precautions were taken in transportation of the raw

material, products and by-products. There are EHS checks

for incoming and outgoing vehicles at material gate to ensure

all necessary requirements are fulfilled. fi No case of significant fi

leakage was reported during 2007-08& 2008-09.

Compliance with Statutory Requirements

All statutory requirements pertaining to environment management

have been identifi ed as a part of the Integrated Managementfi

System. SRF Chemicals Business has all relevant permissions for

establishing and operating the different plants in its premises.

Regular monitoring ensures strict compliance with the statutory

requirements. A monthly compliance report is being sent to

Rajasthan Pollution Control Board (RPCB). In 2007-08 & 2008-

09, no monetary or non-monetary fines or sanctions were imposed fifi

on the Chemicals Business on account of any environmental issue.

Note: CO2 baseline database for the Indian power sector western grid has beenconsidered for calculating the indirect CO2generation.

CO2 Generarion v/s Destruction

During last three year, the total carbon dioxide generated is

shown in graph. This covers CO2 generated directly from fuel

and indirectly from power. Total carbon dioxide destroyed is in

the form of incineration of R-23, a gas with a very high GWP.

CO2 generarion v/s destruction (Million M Tons)

Note: CO2 emission factor taken from 2006 IPCC Guidelines for NationalGreenhouse Gas

Direct and Indirect CO2 Generation (M Tons)

4848

product responsibility

Management Apprroach

The Organisation is committed towards health and safety

of the customers//end-users. The Management takess the

responsibility for the product till it reaches the customerss/end-responsibility for thee product till it reaches the customerss/end

users. The Companny works to ensure proper communiccation

with customers on Health & Safety issues and has adopted

various methods of communication with the suppliers, deealers

and customers of thhe product.

Responsibility

ThT CECECECEOOOO & P id t i bibll f d t g t AAThT e CEO O &&& & PrPrPrPresesesesidididideeeeenenenentttt isisisis rrr resesesespopopoponsnsnsnsibibibiblelelele fff foooor product managemeent.t. A A

teteamam cccomomomprprprisising Heeads of various Divisions andd ooffifficcccererererssss eeeeenenenensure fififi

the implementationn of policy and p plalann agagagrrereed.

MaMannageement SSysystem

SRRFF ChChemicals Busiiness is certifi ed for InIntetegrg ated Manageemmenent t fi

System (IMS) by BBureau VVererititasa , India. The IMSMS i inccluludedededededd s s

ISISO-O-90900101, ISISO-O-141400000 1, OHSAS-180800101, , SAA-8-8000 annd d ththththththhhee e SRSRF

Managegemem nt Wayy. Inn addddititioion n to theh above, , ththe e e e e e CoCoCoCoCompm anny has

bebecocomeme a a s sigignanatory of ReR sponsible Caarere ( (((((RCRCRCRCRCRC) ) companiees and

RC guidelines have been madee p para t t ofofofofofof iii iits Management Syysttemem.

GoGoalals s and d Perfrfrfrfrfororororormmance

The e ee e CoCoCoCoCoC mpany endeaavors to proviidedede consistent quality prodduct to

its consumers and acccorddss itit top priority. Our Specialty prooducts

are supplied to o wworrld leaders in Pharma and Agro industries,

haviingng stringent noorms of vendor selection and our seleection

as reliable vendors iis a testimony of our Product Responsiibility.

In most of these inteeractions, senior management gets invvolved

and provides necessary suppport and resources to meet the

customer needs and expectattions. There is a process to measure

and improve customer satisfaaction with regard to all aspects of

QCDS (Quality, Cost, Delivvery, Safety and Service) wwhihichchch i iiissss

reviewed by the Business Leaadership Team.

Customer Health and Safetetyyyy

Following steps are bebeiningg takkeen n n n bybybyby the SSRFRF Chehemicacalslssss BBB BBBBusiness

to ensure e cuuststomomer Heaaaltlttlthhhh annd d SaSafefety:

• A Alll relevvvananant infoormrmatatioon is p providededd wwwwiww th the product

papapa kkckaging.

• Traraininiing programmmmesssss ff f f fooooorororor ssupupppplplplplliiiei rs’ and end-customomers.s.s.

•• Materrerrriaiaiaiallll SaSaSaSaSaafffefeffetytyty D Datata SShhhhheeeet (MSDS) is prprovovidi edded with ally ( ) pp

prprododucuccttststs. MSDS cccccoooono taains informatatioion reegagarding nature

ofof the productcttt,,,, iiiiti s effecct on ththee peopplele and environment,

safe hanndldldldldlinininining of the pprrrorodduct, sttororage and transportation

meeththhhhhhododododdods, and safafe e didispoosal mmeethod.

• • S SSSSSSafety nonormrms have bbbeeeeeen established for the storage and

trtranansps ortation ooofff variouus products. Proper implementation

is monitorrrededed to ensure ccompliance.

• Durrining transportation, all required safety gadgets are

provided by the Companny.

• Certifi ed training to drivers transporting hazardous fi

material is conducted evvery Quarter.

• In 2007-08 & 2008-09, more than 200 drivers got certified fi

by a competent externaal agency.

• An Emergency Responnse team with an action plan has An Emergency Responnse team with an action plan has

been established to tacckle any transport related incident

outside the plant premisses.


Life Cycle of Producct:t: H Healtthh and Environment Cooncerns

Majority of refrigigiggggeere ants aarere inert in nature and pose no ssignificant fi

iriskk tto o huhuhumamman n hehealth & safety. Refrigerants are aasphyxiant

and d d rereplplp aca e onnly oxygegen n inin t thehe atmosphere. Life off different

rerefrfrigerants varriies s frfromom 12 years to 100 years. DDu iriiingng i itsts l lifife e

cycle, it normallly does not decompose e anandd kekeepps its baasic nature

intact. While reefrigerants are comparatively safe for thhe humanintact. While reefrigerants are comparatively safe for thhe human

health and safetty, it has great potential to damage envvironment,

which has prommpted the phasing out of these gases.

Product Informmation and Labeling

The product infformation is given in form of the Material Safety

Data Sheet (MSSDS). Emergency Response guide 20004 is being

d f d idi g th d d l b l d t k gi gused for decidinng the codes and labels on product pacckaging as

per the requiremments of different countries/ region.

Product labelingg is done as per national/international reegulations.

Transport emerrgency cards are provided with all domestic/

international coonsignments. The Chemicals Businesss complies

with following sstatutory requirements, pertaining to product:

• Gas Cylindder Rules (amended in 1993, 2004)

• The Mannufacture, Storage and Import of HHazardous

Chemicalss (Amendment) Rules, 2000

• Standards of Weight & Measurement Act, 19766

• Central Exxcise Act

• The Ozoone Depleting Substances (Regulation and

C l) RR l 2000Control) RRules, 2000

• The Staticc and Mobile Pressure Vessels (Unfi reed) Rules,fi

including aamendment Rules

• The Factoories Act (as amended till 2001)

n The Company has made pprovisions to check and ensure validation

of product before launchhing the commercial product.

MaM rketinng g CoCommmmununicicatatttioionsns

The Company takes aaccount of all applicable rules andd

reregugulations and various vvoluntntararyy cocodedess whwhilile hch lalkking out its

y marketing plan. In its maarketing communication, the company

t,takes care to not only exxplain the good features of the product

n but also gives equal impportance to adverse effects on human

health, safety and environment, if any.

Compliance

ll The Company has estaablished a process for monitoring alp y p g

eapplicable rules and reguulations pertaining to provision and use

of products and services.

-• During 2007-08 & 2008-09, there were no cases of non

compliance with anny of the applicable laws

• No monetary fi nes were imposed on account of any non-fi

compliance.

REACH Compliance

n.Company is exporting some products to European Union

eUnder REACH complliance Pre Registration of all the

9.substances exported to EEU have been completed in 2008- 09

Top Management & Strategic Planning G n roup involved in

identifi s cation of Consulltant for representing SRF Chemicalsfi

-business as “Only Reprresentative” SRF has completed prebusiness as Only Reprresentative . SRF has completed pre

oregistration with the helpp of competent ‘Only Representative” to

n support REACH initiativve. With the successful pre-registration

U Company will continue tto export pre-registered products to EU

lltill registration window pperiod. REACH registration process wil

continue through the comming years.

our people

our most valuable asset

SRF is keenly aware of its people being the most valuable asset of the Company.

It treats its employees and community with dignity, respect, and has a vision for inclusive growth.

SRF is invested in career development to enhance job satisfaction.

Its policies refl ect transparency, work place safety and occupational health – such that

SRF is one of the premier institutions in the country for a pleasant and rewarding work environment.

- H. S. Dua, AVP – HR & CSR

S. K. Dixit started off as a coontract worker immediately upon passsing his 10+2.

Compaany was quick to recognize his dedicatiion, ability to complex tasks within a shhort period of time, and invitedCompaany was quick to recognize his dedicatiion, ability to complex tasks within a shhort period of time, and invited

him to be a perrmanent employee in the filling station.. fi

In recoognizing his aptitude, SRF gave him thee post of technician in 1991, where he worked in different sections of

the fi lliing station with increased responsibilityy, handling corrosive and toxic chemicaals. SRF provided him with on-fi

the-job training including proper hhandling of hazardous chemicals, compputer operations, etc.

Recoognizing his thirst for knowledge, dedication to the company, and impeccable safety records, the company

promoted him to thhe post of Junior Engineer in the year 22008promoted him to the post of Junior Engineer in the year 2008.

5252

Since its inception Chemmicals Business h hasas o ownwned its legacy of SSRF group to inculcate and nurturetalent. Company has givven lot of impetus in frf ammining g popolicies for development of the people byproviding training, job rootation, freedom to work, delegation n atattt d dififfef rent levels of the organisationand empowerment towarrds taking better decisions. This has shoown encocoururagaging results in terms of retaining talent and expeerienced people, who form the backbonne of the compannyy.

K Chalam completed his BSc in 1978 and his AMIE in

1990. He brought 11 years of work experience to his

position at Chemicals Business. He started off in 1989

as a Junior Engineer (Process), and due to his sheer hard work and

conviction rose to become the Plant Manager in the early nineties.

The Company had tapped him as future leader and provided

opportunity for him to learn and handle various responsibilities

with due delegation of power to enhance his managerial and

technical capablities. The Company’s confi dence in him paid off

and today, due to his sincere effort, and his laudable commitment

to the company, he has risen to the position of Head of Production

and is designated as Associate Vice President (Production). SRF

is happy honing his skills, giving him room to grow to his full

potential. He is now mentoring other young engineers to take on

higher responsibility for Plant operations.

in recognition of his effort...

nurturing talent

Employee TurnoverRegion-wise Employees

Manpower Strength Age-wise Employees


In last few years many new employees have joined the organisation due to attrition and new projects

at Bhiwadi site. This has resulted in blend of new (who are mostly young) and experienced employees.

At this juncture the need was felt to inculcate the culture of togetherness, respect for each other,

transparency among new employees so that they can become

integral part of SRF family. Chemicals Business found a unique

way of starting this mission. The annual sports meet held

between December 2008 and February 2009, was organized

around the theme of “Bonding Together”. The whole site was

formed into four houses named Dronacharya, Arjuna, Dhruva

and Eklavya. Each house was given a distinct identity of its

own. The format of the event ensured maximum participation

of employees from each house. The 66-day action packed sports

meet witnessed energy, passion, camaraderie, excitement and

sportsman spirit. Managing Director, President & CEO (CB),

President (HR) cheered the sports activities during their visits

to the site. The closing function was presided over by Dy MD

Mr. Kartik Bharat Ram who lauded the cohesiveness among

the Chemical Business employees, as refl ected in the fun,

frenzy and festivity during the events.

ensuring fairness and transparency

Transparency is one of the key features of the SRF Policies. The company endeavors to make the entire staff aware of different policies and its proper implementation. Strict internal and external audits ensure compliance with all applicable rules and regulations. In case of deviations (if any) suitable corrective measures are taken to eliminate the repetition.

Employee SalariesSRF does not have an Employee Union; therefore employees of Chemicals Business are not covered under collective bargaining. The management, however, looks after its employees and gives them a fair deal in terms of salaries and wages and the various statutory and non-statutory welfare benefits. Employees are figoverned by various policies including group medical insurance policy, leave travel allowance policy, loan facilities, loan subsidy scheme etc. Each year, the salaries are revised, taking into account the rise in cost of living, salaries in the market, and long-term sustainability.

Salary Structure of EmployeesBeing an equal opportunity employer, SRF’s employee salarystructure is determined on the basis of the job value. For officers,fijob value is determined through a process of job evaluation basedon well established Hay methodology. For others, job value takesinto account the qualification, nature and quality of experience and fiindividual competencies as assessed through the Selection Processand the Performance Management System.

Benefit Plan ObligationsfiThe Company has various benefits such as Provident Fund,fiSuperannuation Fund, Employees’ State Insurance Corporation,provided to employees. In addition, the employees are entitledto Gratuity after serving the organization for at least 5 years.

Appraisal and Career DevelopmentThe Company has a well-laid Employee Appraisal Systemfor officers, staff and workers. Employees’ developmentand increments are decided on the basis of the Appraisal.For officers and staff, the system is more participatory anddevelopment oriented. In the system, feedback is takenfrom the employee and the person Incharge, for assessingthe performance of the employee during the year. Plans forcareer development are based on potential, opportunitiesand feedback to ascertain career aspirartions.

employee cohesiveness - ‘bonding together’

5454

Employee Grievance Redressal and CommunicationThere is a structured system of recording and addressing employee needs and complaints. Various forums are available to employees to express their views and grievances. Employees are well represented in canteen, transport and other welfare committees. Open house meetings are held at frequent intervalsfor two-way communication with the work force and to recognize the workers for their achievements on the job as also for their involvement in extra curricular activities.

Signifi cant Operational Changes Affecting Service ConditionsfiNo operational change, which affects employees’ serviceconditions, is ever brought into effect without consultation with the representative groups. The feedback from the focused groups is taken into account before implementing any changes.Adequate time of three months is provided to the employees, for any signifi cant change to come into effect.fi

Safety, Health and Welfare CommitteesAll matters related to employee safety, occupational health and welfare are discussed in various committees viz. Area Safety committee, Canteen committee, Transport committee, and other Welfare committees. Discussions are initiated for an effective review of a decision taken.

Total Involvement of Employees (TIE)The Chemicals Business has a unique model of TIE (Total Involvement of Employees) groups. The factory is divided into 40 TIE group zones, each employee is a member of a TIE group. The groups meet for 20 minutes every morning to discuss issues,fi nd solutions and action their work related problems. This is fia powerful way of tapping the employee potential and keeping them engaged in improvement programmes.

No Discrimination at the Work placeThe policy of the company is to ensure that there is no discrimination on basis of caste, creed, religion, gender, Colour, political affi liation or age, in hiring, training, compensation,fipromotion or transfer of employees.

Freedom of AssociationThe Company respects the freedom of expression andassociation without any direct or indirect impediment ornegative consequences for any employee.

Human RightsSRF Chemicals Business follows the provisions of SA-8000standard and ensures compliance of human rights provisions asper the applicable laws and as described in the standard. While engaging contractors or suppliers, the Human Rights policy of the organisation is communicated to the concerned party. This is part of the work order given to the contractor/ supplier parties. Adherence to Human rights by the supplier/ contractor isensured by regular interaction with them. Contractors engaged in various jobs are also scrutinized for their performance onhuman rights policy.

Prohibition of Child and Forced LabourChild labour/young workers below the age of 18 years are notpermitted to work in any occupation in the Chemical Business.

hiring of senior management

Hiring of senior management people is done purely on the merit

of the individual considering the nature of industry and hazard

associated with it, the Company prefers a professional who is

technically qualified, with extensive experience in operating fi

chemical plants.

Given these pre-requisites, the local population has not been

an adequate source for senior management positions as the

literacy and education levels are low. However, at lower

levels, employment is given to the local people, based on their

educational qualifications and skill sets.fi


monitoring & audit

The HR department monitors activities to check deviations

from, and ensure adherence to, SA-8000 policies. Internal audit

is done as a part of Integrated Management System (IMS). In

addition, external audit is carried out by Bureau Veritas (India)

twice a year.

compliance during 2007-08 & 2008-09

In 20007-08 & 2008-09, the company complied with all

requirements under the applicable rules and regulations. No

monetary or non-monetary fines were imposed on the Business fi

on account of any non-compliance.

Bureau Veritas (India) conducts Surveillance audit every six

months. Following salient points emerged out of the discussions:

- Age proof, appointment order detailing the designation

given , wages fi xed etc are given to all the employees.fi

- Attendance and salary records are maintained as per the

statutory requirements.

- Wages to the contarct labourers are paid as per state

government’s notifi cation No-40/36-3-06-7/04 dated fi

24/02/2006 amended for revised DA for the period-

01.04.2008 to 30.09.2008.

- The company compensates overtime hours at double the

hourly rate for eligible employees as per ‘Factories Act

1948’.

- Bonus paid for the year 2007-08 was 20% of the annual

earnings, which is in excess than the statutory minimum

of 8.33%.

- Facilities like canteen,clean toilets and bathrooms are

provided.

- Training in fire fifi ghting and fifi rst aid is being periodicallyfi

given to employees and records to this effect maintained.

- Drinking water and medical facilities in the company’s

premises are provided.

training and development

CB is focused on development of people and organizational

capability. This is refl ected in its Business Policy. The company fl

follows an elaborate system of training which is reviewed at various

levels in the organisation. For managerial staff, LET (learning,

education and training) needs are identifi ed through Developmentfifi

Dialogue, Performance Management System and action plans are

made to execute identified training. Based on the needs identififi ed,fifi

HR prepares training calendar, which is circulated every month

and put on notice boards. HR maintains a list of approved training

vendors from whom training services are availed.

EHS department is responsible for Environment, Health and

Safety training to employees including contract labour and local

suppliers. No new employee, including contract worker, can be

taken on job until cleared fi t by EHS dept. Standard modulesfi

have been developed for EHS training at different levels.

Specific training programs are organized for energy conservation fi

and energy audits focused to improve environment performance.

Records of all training programs are maintained. At the end

of training, feedback on program and faculty is taken from

participants in the training feedback form. HR consolidates

and analyzes these feedback and initiates appropriate action, to

improve quality of training.

audits and improvements

Internal Audit are conducted under Integrated Management

System Audit on SA-8000 requirement is carried out by trained

internal Auditors. Internal Audit recommendations are shared

in Management Reviews. Action plan is shared in the meeting

for proper corrective and preventive action on all observations

& non conformance (if any). Improvements have been observed

based on audit fi ndings related to overtime, unplanned absencefi

and resolution of red book issues.

5656

Following are few topics covered under training to Management

Staff & Non Management Staff.

Energy

Conservation

Communication

Skill

First Aid Training

Leadership Responsible Care FMEA Concept

OHSAS

18001 - 2007 &

Behavioral Safety

Safety

Management in

Industry & Fire

Safety

Workshop

on HIRA &

Environmental

Aspect/Impact

TQM Basic

Course

HAZOP Managerial

Effectiveness

Extensive training programmes were conducted on various

topics as per needs identified. Continual improvement on fi

training man-hours depicts systematic efforts towards training

and development.

Training Expenses Per Employee (Rs. Lakh)

Training for Contract Workers: A Unique System

SRF Chemicals Business follows a three-tier contract worker grading

system (Red, Yellow & Green Cards) to keep control on the area

of work. Red card holders are allowed to work in hazardous area.

Yellow card holders can work in the chlorine area and green in non-

hazardous area. Every new contract worker undergoes compulsory

safety training and must qualify the interview assessment. If found

fit, his gate entry pass is stamped by the EHS department. Frequent fifi

refresher training is imparted to contract workers. Training Module

for Contract Employees Highlights

• EHS visual display room

• Importance of Personal Protective Equipment (PPE)

• Safe handling of hazardous chemicals

• Work at height and on fragile roof

• Safety in projects activities

Training Manhours

Training Manhours Per Person

Training Subject (in per cent)


occupational health & safety

Occupational Health and Safety are important aspects of an organization’s smooth and effective functioning.

Good health and safety performance ensures an accident-free industrial environment. SRF strives to ensure

a safe and healthy work environment for its people. This commitment filters down right from the top, as is fi

reflected in the statements below.fl

In Chemical Business, Safety has a special signifiI cance, in fact an overwhelming signififi cance, because of the nature fi

of our business. I don’t have to re emphasize the strong role of safety in every thing we do and think. However, of

ere is never enough that we can do with regard to Safety – we can only do more and more. I would continue tothe

urge all of you, especially, the new members of CB family to please adopt Safety fiurg rst and foremost as a basic thought fi

process in everything we do. We still have some way to go to reach our cherished goal of Zero Safety Incidents. Let L

us resolve on this day to work towards the same in letter and spirit.

I am very happy to see the various activities being organized at Bhiwadi regarding Safety, as well as otherr

activities like Blood Donation Camp.

Roop Salotra

(An extract from CEO’s message on National Safety Day on 4 March, 2009)

We believe that everyone who works for or on behalf of SRF is responsible for their own safety & safety of

thers around them.Safety is a value for us and not a priority because priorities change but Values don’t. We oth

ust encourage the philosophy of “Safe Production” where Safety & Productivity go hand in hand.mu

Most of us, probably, are aware of our everlasting Business Goals we have set for ourselves every year - a target

of “Zero Injury & Accidents”. This objective can only be achieved if each one of us in the organization starts

believing in Safety by embedding it seamlessly in all our actions.

The spread of safety culture should be felt and demonstrated all across and reflected in the way in which we doe dofl

our jobs. As I reiterate the signifi cance and commitment towards safety in our organization, I must emphasizeefi

that safety doesn’t just happen – We all have to make it happen.

Rajeev Marwah

(An extract from the Head of Work’s message on National Safety Day on 4 March, 2009)

5858

employee participation

EHS Meetings

Employee participation to capture issues and feedback related

to EHS is ensured through various EHS committee meetings.

The Organisation has three tiers of EHS committees – Apex

committee, Statutory committee and seven Area EHS

committees. Employees from different plants/departments are

nominated to these committees. At least 50% representation

from Non management Staff especially from Shop floor isfl

ensured in these meetings.

Highlights of the EHS Committee Meetings:

Total 259 points were captured in 2008-09 through these

meetings, out of which 225 points were completed during the

year. The 87% compliance has been achieved by continuous

focus on Safety jobs by management staff and involvement of

shop floor employees. fl

Key Improvement & Benefits from EHS Meetingsfi

• Improvement in use of PPE’s by strengthening the

Administrative safety..

• More focus on implementation of Work Permit system at

shop floor level.fl

• Introduction of Electrical Lock out system.

• Display of Hot & Vessel Entry Work permit at site.

• Sharing of near miss for learning.

• Introduction of Penalty system for Safety deviation has

improved the overall compliance level.

• Replacement of PP-FRP lines by Lined pipe has minimized

the possibility of pipeline leakages.

• EHS training attendance has improved.

EHS Promotional Activities

The company celebrates National Safety Day, Fire Service Day,

Environment Day, Kaizen Week, World AIDS Day amongst

others. Various promotional programmes and competitions are

held to promote the culture of safety at work place:

• EHS talk

• Slogan, poem writing on EHS

• EHS quiz

• Fire fighting competitionfi

• Poster competition for employees’ children

• Quiz competition

• Chlorine emergency kit

upgradation of OHSAS-18001: 1999 version to 2007 version

Company has adopted the OHSAS-18001: 2007 version. Focus on Human aspect in safety is key feature of 2007 version. SOP

for carrying out Hazard Identification & Risk Assessment (HIRA) was modififi ed to address the human aspect in hazards & risk. fi

HIRA of various activities got reviewed and updated. This was done involving shop fl oor employees and Plant Supervisor. This has fl

improved the understanding of hazard identification and its control to minimize the risk at workplace. Bureau Veritas (India) has fi

audited the OHSAS-18001: 2007 version in 2008-09 and upgraded the certificate accordingly.fi


key initiatives under Safety Risk Management

behavioral safety

Behavioral safety is one of the important element of OHSAS-18001:

2007 version. To study human behavior, coordinators from

various plants & departments have been trained to do audit of

human behavior working individually and in groups. Audit on

human behavior was conducted by various coordinators. Findings

of audits were shared with those concerned. This has helped in

improving human behavior towards safe execution of the work.

hazop & what if of HFC & FSP

To strengthen Process Safety of New plants i.e. Fluorospeciality

Plant & HFC Plant, Hazop & What-If analysis was carried out.

The comprehensive study was conducted by experts from a

reputed external agency. This study has resulted in many good

suggestions for improvement in Process safety of these two

Plants. More than 90% jobs were finished during the year.fi

process safety improvement through innovative solutions

Maintaining health of the equipment & pipelines remains a daunting task in our kind of chemical industry. In last two years,

improvement in process safety through strengthening the hardware system was one of the key focus areas and various equipment and

moving machineries were upgraded. Pipelines were replaced with higher grade MOC. Following is one example:

In HF Plant PSA Circulation system (P219) was modifi ed to minimize downtime and improve the work environment.fi

In the fi rst half of 2007-08, an extensive study was fi

undertaken; involving literature study & discussions with

suppliers & finally, a horizontal-mechanically-sealed-fi

polymer-lined-centrifugal pump design was selected

and installed in place of vertical pumps. These pumps

have given very encouraging performance and resulted

in improved work environment, reduction in plant

downtime and enhanced the reliability of the system.

The circulation pump of Pre-Scrubbing Acid (PSA)

system in our Hydrogen Fluoride (HF) plant was a seal-

less barrel type pump. This resulted in much acid fuming

& frequent overfl ow of acid from the pump disruptingfl

process & making work area unsafe. In the earlier years,

many sealing arrangements & a variety of standard

& custom made pumps had been tried to resolve this

chronic problem. But all efforts were in vain.

6060

accident reporting & analysis

As a part of Integrated Management System (IMS), the

Organisation has a written down accident-reporting procedure.

Any incident (accident, injury or near-miss) is reported as per

the procedure. In case of reportable accidents, all concerned

persons, including the statutory authorities, are informed.

Incident analysis using Why-Why technique is done by a team

and recommendations with a concrete action plan, are shared

with all concerned for timely implementation of corrective

action to stop recurrence.

Reportable/Lost Time AccidentIn reportable / lost time accident the injured person is prevented from working for a period of 48 hours or more. Two reportable accidents each, occured over the previous three years. There have been no fatal accidents reported over these three years.

Frequency Rate of Reportable Accident (No. of accidents permillion man-hours worked)Frequency rate has gone down due to increased man-hours worked with same no. of reportable accidents in 2007-08 & 2008-09.

Severity Rate of Reportable Accident (Man days lost per millionman hours worked)Severity rate gone up because of increased man days lost in project-related accidents.

First Aid InjuriesContinual improvement in reduction of First Aid injury due to various EHS initiatives over the previous three years.

Near MissTo reduce injuries, various initiatives have been taken to maximize identifi cation and reporting of near miss.fi


occupational health

Medical Examination

Periodic Medical Checkup: Highlights

• Comprehensive health check-up which covers the

following tests:

• General Physical examination, Blood & Urine test, Blood

urea, S Bilirubin (T), SGOT, SGPT, S Alkaline Phosphate,

S Calcium, ECG, X-ray, etc.

• Periodic medical check-up for Canteen workers: once in

4 months

• Eye tests for employees engaged in Fork Lift operation,

company transportation

• Audiometric tests for the employees working in high noise

areas like the compressor house, turbine, boiler, etc.

Personal Monitoring

Chlorine and Hydrofluoric Acid are two main hazardous chemicals used in the premises. These chemicals are used fl

in almost all the plants. As a part of health & hygiene program personal monitoring has been started for Chlorine &

Hydrofl uoric Acid. A person working the plant puts personal sampler on his shirt for eight hours. At the end of the fl

shift data are captured from the personal monitor to analyze whether exposure remains under TWA / STEL limit or

not. This has provided confi dence to the shop flfi oor employees and helped in improving work area environment.fl

Occupational Health Centre (OHC)

An IT-enabled system of health monitoring and analysis was

introduced in 2006-07. This system provides information

trends about individual employee health and repetition of

any occupational health issues. The analysis helps in taking

corrective/preventive action at appropriate time to improve

employees’ occupational health. In 2007-08 & 2008-09,

no deviation was observed in compliance with the legal

requirements.

Material Safety Data Sheets (MSDS) of all chemicals used

in the plant are available in the Medical Centre. Based on

characteristics of chemicals handled at the plant, antidotes,

neutralizers and medicines are stocked for providing first aidfi

treatment for any kind of chemical exposure at site.

A fully equipped First Aid centre is available in the factory

premises. The centre is manned round the clock with a trained

and experienced male nurse. An experienced medical doctor

with more than 20 years of experience is associated with the

company. All company and contract workers visit the First Aid

Centre for any Occupational Health or medical problems. The

company has tie-ups with not only the local hospital but also

with reputed hospitals in Delhi.

6262

safety audits

External Safety Audits

External safety audit is carried out every year by a reputed external agency. Last year it was conducted by Alpha Projects, Baroda. They

have given certain rating based on their fi ndings with recommendations for further improvement. A follow-up audit was conductedfi

after a gap of nine months from main audit by the same agency. Proper planning & implementation of various safety initiatives,

resulted in improved safety ratings, as depicted below:

visitors’ and transporters’ safety

To ensure safe transportation, vehicles plying both inside

the premises and going outside have to go through Security

checks. Any deviation from standard requirement is being

communicated to highest authority. To strengthen knowledge

and skills of the drivers one full day training is organized

involving external experts. In last two years more than 200

drivers have been trained for safe transportation of chemicals

and goods. In addition to this safety booklets are provided to

visitors and drivers at the time of entry.

Integrated Management System (IMS) Audit

IMS audit is done once every six months at two levels, internally

and externally by Bureau Veritas (India). Audit observations and

non-confirmances (if any) are recorded and properly addressed fi

for continual improvement of Management System.

Internal Safety Audits and Inspection

Regular safety audit and inspections are done internally to test

the adequecy of the system and verify the implementation of

various safety systems and functioning of safety equipment.

Audit and inspection frequencies have been decided according to

criticality of the item and activities.

Statutory Compliance

Statutory compliance is monitored by the EHS Department and

a monthly report is sent to Director (Environment & Safety)

and the President & CEO.


locally-based suppliers

SRF has identifi ed ‘local suppliers’ as those located withinfi

ten kilometer radius of the Company’s facility. As a conscious

decision, SRF Chemicals Business develops local suppliers for

different activities, which include supply of:

- Packaging and raw materials;

- Equipment and instruments for SRF’s plants;

- Food for employees at SRF plants;

- Erection & fabrication of structure, machineries, equipment;

- By-products.

The local suppliers are selected with great care. The way

the local suppliers conduct their business must be in tandem

with the avowed philosophy and core values of SRF. Care for

environment, society, customer, quality and reliability are pre-

requisites for choosing work partners as well as suppliers Local

suppliers who employ local people are preferred as it generates

more employment in the region of operation of the Company.

Premium is placed on employment of quality, environment and

social accountability standards. Local suppliers who have QMS,

EMS, OHSAS and SA-8000 systems and standards and are cost

conscious, are preferred. Few examples:

The company’s refrigerants are filled and packaged in small fi

jugs, cylinders and toners (The contract for supply of jugs has

been awarded to one of the Bhiwadi based local manufacturer

and supplier). The company has developed a local vendor

in Bhiwadi for manufacture and supply of refrigerant gas in

international market.

Chlorine is one of the key raw materials for our Chloromethanes

plant. Chemical Business was procuring the Chlorine from some

part of Rajasthan, Bihar, Uttar Pradesh & Punjab which are 400

to 1000 Km. An association was started with a local supplier

in the year 2008-09 which is based at Alwar having 90 Km

distance. This has not only reduced the transportation cost but

immensely decreased the safety risk during transportation.

Fly ash is generated in Captive Power Plant and is supplied

to one of the cement manufacturer in the nearby vicinity.

Company has negotiated with the Cement manufacturer to

send covered dedicated tankers for filling the flfi y ash. Theseflfl

tankers are closed type & specially designed to fill the flfi y ashflfl

with no dust nuisance. This has helped in improving the work

environment and environment friendly transportation of fly ash.flfl

Hydrochloric Acid (HCl) is one of our major by-products.

HCl was being sold to vendors in Uttar Pradesh, Punjab, and

Haryana & Delhi. In 2008-09 we engaged with three vendors

Kamal Rasayan, Bunty Chemicals & Globe Chemicals from

Bhiwadi. This has reduced the Safety & Environment risk and

saved transportation cost.

A local transporter based in a nearby village takes care of the bulk

of chlorine transportation. SRF has developed and encouraged

several small scale local engineering companies to fabricate

mechanical equipment and tanks for the various plants. The

majority of the company’s engineering work is done on contract

basis involving local contractors. This has helped in minimizing

the inventory level at the plant and transportation time.

our society

As a Responsible Care organisation, SRF is focused on

overall development of employees,

various stakeholders and the society within which the Company operates.

The Company’s commitment towards sustainable development and

inclusive growth encompasses:

- Focus on local communities in near by villages.

- Maintaining the ecological balance.

- Providing a safe environment to keep employees and community healthy and safe.

- Roop Salotra, President & CEO

Hari Singhh of Gautoli village, reminisces over tthe incredible change over

hi hith t lti bl l d “Th t f l dhis hitherrto uncultivable land. Three years aago most of my landdddd w w w ww wwwwasasassaaasaa

uncultivvable due to the lack of water and uneevenneeeeessssssssssssss oo ooffff fffff f ththe e teterrrain.

There wwas no means to capture rainwateteteeteteteet rrr,rrr aaandnd iit t cacaarrrrrrrrieiieieddd d vavaluluabablelelele

soil withh it, further denuding theee l l lll aananana d.dd.d I I s strtrtrrugugugu ggglglg edededed ttt toooo mamamamakekekeke ee ee dndnds meet,

and even pproviding food fofofofooforrr rrrrr mymy f fffamamamamillilillly yy y yy wawwawawawasss hhchchalalllllenging.g MMyy eleldder son has

always been good aaaaa aaaaattt tt ttt hhhihihh ss s s stsststttududududududiiieieieies s anandd secucureredd verry good marks in his 10th

d d HH dddddd f f h d bb h ffstandard. HHeHeHeHeHeeHeHH w wanananannannnteteteteteeddd ddd toto go o foforr fufurther studies, bbut given the inccomome of our

faaaafafafamimmimimimiilylylylylylyly,, hhhhhihis ededuucation was a luxury to us – oone wwe e ccouldn’t aafffforordd.

TThis year I sent him to a hostel for furrther studies in science. I can afford

to now. This dream has comme true because of SRF’s

NNRM project SRF helped us to level our undulated land and rainwaterNNRM project. SRF helped us to level our undulated land and rainwater

harvesting so I can fi nally cultivate mmy land. Today, I grow vegetables

eand fruit like chilies, tomatoes, oranges, lemons and guavas. I just can’t believe

this transformation and the prosperrity it has brought to my family.

6666

sense of confidence to the stakeholders & strengthens the fi

relationship with the company.

SRF believes in leveraging the benefits of working in

a partnership mode, therefore, its social initiatives are

structured through the SRF Community Partnership

Programmes. SRF is partnering with NGOs of high repute

– Society for All Round Development (SARD) is engaged

in health and education initiatives, and PRADAN, SST and

SPACE are involved in the Integrated Natural Resource

Management (INRM) project.

management structure

The HR department complements the Corporate Social

Responsibility team in the twin approach towards work place

and society. In addition to regular reviews by the Steering

committee, the top management of SRF led by its Chairman,

Arun Bharat Ram, and the Managing Director, Ashish Bharat

Ram, takes keen interest in CSR activities and provides valuable

inputs and direction. They visit the villages where sustainable

development initiatives are being implemented, interact with

the community beneficiaries and take feedback.fi

review mechanism

A Steering committee, which comprises the Chief Executive

Offi ce (CEO), Head of Works, Head of Human Resources, the fi

CSR team and representatives from partner NGOs, reviews

quarterly, the implementation of the social development

initiatives. Performance against targets is reviewed through

monthly updates.

management approach

SRF aspires to be a responsible and conscientious corporate

citizen, based on trust, transparency and accountability. To

realize its aspiration, SRF is involved in social engagement

beyond products and profitability. The company has structured fi

its social initiatives through “SRF Community Partnership”

program. The key focus in Community partnership has been

education, health, and natural resource management.

This approach is an integral part of the company’s journey

towards ‘Making our nation proud’. SRF believes in a healthy

and safe work environment, maintains fair and transparent

work practices, adheres to policies that respect human rights

at all levels, and treats employees with dignity and without

discrimination. The social initiatives are undertaken as a part

Corporate Social Responsibility programmes and are aligned to

commitment under CDM project.

strategy: building partnerships

• SRF believes in building a partnership with the local

community to make them part of the initiatives taken

in the area of primary education, formation of Self Help

Groups (SHGs), Natural Resource Management program.

This approach has helped in successfully implementing

various interventions.

• Inculcating ownership among employees by involving

and motivating them to be a part of Corporate Social

Responsibility initiatives as a volunteer. This has ensured

the effective implementation of CSR programmes.

• Regular interaction with various key stakeholders to share

various initiatives taken by the company and keep them

updated. SRF invites stakeholders to physically visit the

site where CSR programmes are going on. This provides a


SRF’s commitment to inclusive growth

adoption of the CII code of conduct on affi rmative action

Initiatives towards Inclusive GrowthTailoring/vocational Course: SRF Chemicals Business has

initiated tailoring course for adolescent girls in villages near its

factory in Bhiwadi in partnership with NGO- Society for All

Round Development. 76 girls have been trained of which 10

have been placed in Garment Factories and 12 started their

own. All girls are from poor family background – 5 of these girls

are from SC/ ST community.

Scholarship Scheme to SC / ST Students: SRF has introduced

a scholarship scheme which aims to provide financial assistancefi

to 50 meritorious and needy students from historically

disadvantaged sections to help them continue their studies at

school level and to encourage them to go for higher education

and improve prospects of their employability.

Mainstreaming Children who have dropped out / are out of

school through Bridge Schools: SRF along with SARD has

initiated project “Shiksha” to mainstream out of school children

through Bridge schools (Non Formal Education centres) in

villages near our factory in Bhiwadi. 40% of students have since

been enrolled in the government primary schools in last three

years starting 2006-07.

Remedial Support Centres: Remedial Centres have been

established in six local primary schools near our Bhiwadi factory

to supplement learning efforts of 150 students studying in these

schools who are at risk of dropping out.

Teachers Training/ capacity building: SRF – SARD have hired

three teachers from SC/ST background for its bridge schools and

remedial centres and they have been trained in pedagogy, building

Teaching Learning Materials, introducing joyful way of learning etc.

SRF uses independent agencies for impact assessment of its

initiatives under inclusive growth. These assessments are well

documented and are available. Top management, starting

from the Chairman is involved in setting direction and targets

for inclusive growth in the local community. A Steering

Committee comprising top management from SRF, NGOs and

an independent expert sets the direction for socio-economic

development initiatives. This committee meets every quarter for

full day wherein half of the day is spent in the field and the rest fi

half for project review. The United Nations’ Solution Exchange

has documented our NRM Project as a case study.

Bano- a 36 year old lady with 5 daughters is resident of

village Milakpur. Her husband Tinni who is around

40 years old is suffering from chest pain and has

undergone 3 surgeries without much relief. Bano had 6.5

bigha of land, but it was highly undulated and unarable.

Under the NRM project, 5.5 bigha of her land was treated

and made cultivable for planting fruit and vegetables. She

sold watermelons and cucumber and got Rs. 1,900 cash and 460 Kg of wheat (worth Rs. 4,700).

Following Bano, many more families have started adopting vegetable cultivation.

enabling dimensions

6868

vocational skills and training

SRF-SARD Project so far has supported 3 Vocational Training

Centres. In all, 125 women have benefited from learning fi

tailoring and cutting skills for earning their livelihood and for

stitching their own clothes which leads to further savings at

home and increases the liquid cash at home.

Women also learn basic reading and writing skills which fillsfifi

them with pride. 31 amongst these belong to the Scheduled

Caste families and the remaining from the Meo-Muslims and

OBC Groups. Two batches-104 women in all- have completed

their training successfully and the third one with 25 learners is

continuing in Jhiwana.

A few women completing the six-month course from the Vocational

Training Centers are gainfully employed at nearby Garment

factories and proudly contribute to their family incomes.

Of the 76 women enrolled in 2007-08, 10 were placed in nearby

factories, 12 started their own work and 14 were mainstreamed into

regular study. 30 continued learning at their respective centres.

SRF provides voccationall trtraiainiin ngng aa ass s papap rt of their commmunity development program inRajasthan. SRFF’s three vocationall ttrarainininininingg g cecc ntres, through partner NGOs providebasic education, vvocational training toward startitingngg t t theheheeeeiririr own business, offers placementservices for emplooyment in local businesses. SRF partticullarlrlrlyyy fofofocucuc seses on marginalized groups: women, mmeo-muslims, scheduled castes and triibes.

Tahira, age, 19 from Sohrab-ki-Dhanni was unhappy

since she was struggling with the burden of

household chores and monotonous life limited to

the four walls of her house. She recruited 15 young women

in her village, and contacted the SRF-SARD teacher in the

village in order to receive education and learn vocational

tailoring. The women wanted to stitch their own clothes and

those of others to raise small incomes for themselves. Tahira

offered her own domicile as a learning centre, and launched

the Vocational Training Centre for Women in 2007.

Such centres have set new trends for women like Rasheeda,

who could fi nish her course mainly due to the support of her

mother–in–law who motivated and allowed her to complete her course. She now earns a reasonably good income

through employing her learnt skills and has acquired a respectable position in her nuptial family. Some of the young

women have also become the main earners in their family earning upto Rs. 2,500 per month.

towards self-suffi ciency

Enrollment of adolescent girls in Vocational Centre


primary education

SRF-SARD launched its Project Shiksha in 2006 with two Bridge Schools located at Ban-Ban and Jhiwana villages. Bridge Schools

addressed the need of drop-out and out-of-school children and prepared them academically for re-entry into regular schools.

Bridge Schools

Number of Children in Bridge Schools

2006-07 2007-08 2008-09

Number of Centers: 2 Number of Centers: 1 Number of Centers: 1

Enrolled Mainstreamed Enrolled Mainstreamed Enrolled Mainstreamed

77 28 49 21 22 7

Remedial centers located within the premises of government schools provided special inputs to academically weaker children and

those at risk of dropping out to improve their learning achievement levels. The program was extended to five more villages in 2008-fi

09 and currently supports five Remedial centers in nearby villages of Khizuriwas, Bibipur, Ladiya, Tapukara & Jhiwana villages with fi

special focus on the Meo girl child, SC/ST children and children with special needs.

Number of Children in Remedial Centers

2006-07 2007-08 2008-09

Number of Centers: 6 Number of Centers: 6 Number of Centers: 5

Students Villages Students Villages Students Villages

Boys: 80

Girls: 86

Total:166

Jhiwana, BanBan, Hingla ki Dhani (Khizuriwas), Bibipur, Ram Singh ki Dhani (Tapukara), Ladiya

Boys: 92

Girls:79

Total:171

Jhiwana, BanBan,Hingla ki Dhani(Khizuriwas),Bibipur, RamSingh ki Dhani(Tapukara),Ladiya

Boys: 116

Girls:124

Total:240

Jhiwana, Hingla kihani (Khizuriwas),Bibipur, Ladiya

eSRSRF’F’s continuual focus has bebebeeeen to imimprproove educcatatiiioionnal status in primary schools in then nearby local coommuuuntntntiieies. Thehe p prrogrg amam h haas successfufully improved enrolment and retentiond of governmenenentttttt prprimimmarararyyy scschhool children, reduced tthe number of school drop-outs and

providdeded remeddiaiall support through quality educationn in the government primary schools.

Of the 190 children evaluated prior to admissions in

remedial centers during 2008, there were no children

performing at levels A and B. Most children showed

low performance at levels C and D. The project interventions

have made a perceptible difference in the performance levels

of the weaker students.

promise of a future

7070

Child-centered pedagogic approaches have led to improved

learning attainment levels of children. Pre-and post project

intervention evaluation results show a considerable decrease

in ‘C’ and ‘D’ category children (performing at below average

levels) and a perceptible increase in ‘A’ (mastery) and ‘B’

(levels as per GOI rating).

Of the 190 children evaluated prior to admissions in remedial

centers during 2008, there were no children performing at

levels A and B. Most children showed low performance

at levels C and D. The project interventions have made a

perceptible difference in the performance levels of the weaker

students. The project has succeeded in mainstreaming

about 46 children in 2008 to government primary schools

after acquiring age/grade acceptable learning levels at their

respective bridge schools.

Emphasis on co-curricular activities such as annual sports meet,

cultural activities and bal-melas for bridge, remedial & govt.

school children have helped in nurturing their talent, enhancing

creativity and making education a more joyful and interesting

experience for them. Awards and token gifts to participating

children keep their morale high and retain interest in various

activities of the school.

Adoption of Government Primary School

In order to bring about holistic improvements in the school

education system, SRF Chemicals Business adopted a

Government primary school at village Ban-Ban. The main

objectives of the Project were to enhance the minimum level

of learning of children, improve attendance and reduce dropout

rate of children from school particularly the girl child.

• Infrastructure support in the form of sheds for children’s

activities, water-tanks, out-door play-swings, toilet, clean

drinking water, and other facilities have been provided to

enhance the overall educational experience of children

• Supplementing teachers to maintain teacher-student ratio

and providing training to improve their teaching skills,

improve curriculum design and delivery. Capacity building

of teachers in child-centered pedagogy and development

of learning materials is a regular activity. All the recruited

teachers go through mandatory trainings during their

induction period. Teachers have also been exposed to 32

days of trainings by SARD, SRC - Jaipur and other agencies.

Exposure visits to other educational institutes outside the

district and the state are frequently organized to observe good

practices and expand the world view of engaged teachers.

Feed back after the visits from the teachers has been very

encouraging. Teachers feel highly motivated to replicate some

of the observed good practices in their respective schools.

Pre and Post evaluation (No of Children)


Learning level outcomes of evaluation (average marks obtained

by class)

Class 1:

Class I Apr.’08 Sept’08 Jan’09

Maths 27 41.41 70.33

Hindi 0 62.31 71.7

English 0 52.69 80.5

Regular enrolment drives for dropout and irregular students in

close coordination with local schools and their managements

have assisted in bringing children back to schools.

The Project has succeeded in reviving parental participation in

its various villages through regular Parent Teachers Committee

(PTC) meetings. These meetings have emerged as major

platforms for the parents to communicate their needs and

exchange ideas for schools to perform better. Parents and

teachers together assess various requirements and take decisions

for allocating resources for need-based infrastructural and other

support. The introduction of Urdu classes for girls completing

the primary classes is a case in point.

Many girls after completing class V are unable to continue their

studies due to lack of easy access to upper primary government

schools and their restricted mobility to the nearby villages. As

parents have become more open to their daughters’ education,

the project now provides for teachers in selected schools in close

co-ordination with the district education authorities for the

benefit of the students.fi

PTCs now take decisions regarding major and minor repairs to be

undertaken in schools, raise issues of concern for interface meetings

with government agencies and address issues of attendance and

irregularity among the participating children. Regular informal

visits of teachers to community have also helped in ensuring their

interest and participation in school activities. SRF employees also

provide resource support in their capacity development exercises.

Meeting with government offi cials and networking with otherfi

resource organizations have helped in building congenial relations

and eliciting the required support in time of need. State Resource

Center, Jaipur for instance has donated 128 books, mostly pictorial

for the library in Ban-Ban Remedial School that has been adopted

by SRF. Support of government officials is evident in various fi

activities and programs undertaken in schools.

7272

healthThe focus of the healthh intervenentitiononss hah s been on building awareness for protection against HIV/AIDS and organizzing health camps f foror v visision impairmment and physical disability in thelocal community througgh health camps for children, aandnd b bloood donations. SRF’s HIV/AIDS policy assures non-discrrimination of employees on account ofof h hisis/h/her real or perceived HIV status, besides providingg treatment, counseling, and psychologgical suppoportrt.. ThThe company has a well articulated HIV/AIIDS Policy at workplace.

PK. Gupta, a Master trainer shares his experience. “SRF

has been quite supportive and provides infrastructure

to propagate knowledge and awareness to prevent

HIV/ AIDS. Our team of master trainers has been trained

by ILO experts. We organize awareness programmes for

different sections of society including truckers/transporters,

and villagers. We focus on improving our methodology each

year for maximum penetration into society with HIV training

and awareness. It gives me great sense of responsibility and

satisfaction to do something for the society.”

the life after

HIV/ AIDS

SRF continued its commitment against spread of the deadly

disease HIV AIDS. The Company’s HIV/AIDS policy assures

non-discrimination on account of an employee’s real or

perceived HIV status, besides providing treatment, counseling,

and psychological support.

Regular awareness programs were conducted for SRF employees,

neighboring industries, local communities and villagers to

sensitize them about HIV/ AIDS, its causes, myths and realities

and measures for prevention. Company’s employees who

volunteer as peer educators spread awareness on HIV/AIDS

and Sexually Transmitted Infections. More than 600 people

have been covered through the various programs in 2007-08

and 2008-09.

Observing World AIDS Day

World AIDS day is observed every year on 1st December at the

SRF Chemicals Business’s Bhiwadi site to spread awareness and

dissemination of information on HIV/AIDS to employees, contract

workers and the local community including transporters.

Health Camps

• The SRF Chemicals Business organized health camp for

physically challenged children. 104 Children benefited fi

from the camp. A follow up camp was also organized

subsequently.

• Blood donation camp was organized on March 4, 2009, in

collaboration with Indian Red Cross Society, and 77 units

of blood was collected.


SRF Chemicals Business is committed to women empowerment by facilitating fi nancial prosperity and wealth in the region within which it operates. SRF has launched various micro-fi nance partnerships with local banks with a special focus on women’s empowerment and establishing micro enterprises. SRF’s 69 Self-Help groups with 811 members have collectively mobilized savings of about 7 lakhs.

Formation of SRF’s Self help group has given us the

power to save and use our hard earned money in a better

way. A local villager of Gautoli narrates, “Whenever we

require money for family functions and other important work,

we get it through SHGs. The money is repaid with regular

EMI, and the payments are quite affordable. We all contribute

Rs. 10 every month to this fund that adds up to a large sum

which can benefi t the members in need. I borrowed Rs. 5,000

for my daughter’s wedding about a year ago. I have repaid Rs.

1,500 of that amount already. I wonder where would I get such

funds if our SHG did not exist.”

‘I have the power’

SRF Chemicals Business has so far facilitated formation of 69

Self Help Groups with 811 members in them. The members

have so far collectively mobilized savings worth Rs. 6,86,666.

A network was established with the lead banks – Punjab

National Bank, Milakpur Gujar and Rajasthan Gramin Bank,

Tapukara. Savings are used currently for inter-loaning purposes

women’s em owermentwomen’s empowerment

for their members for taking care of small household expenses

and initiating income generating activities. The groups have

accounts with local banks. Inter-loaning activities among the

members have led to livestock (goat, buffalo, poultry etc) based

micro enterprises.

7474

improving livelihoodsunitiesINRM project was startedd f ffforor S Susustainable Development of Local Commu

med atunder the Clean Developmment Mechhananisism m (CDM). This project is aimi ienvironment conservation, improving water anand d sosoil resources, maintaaining

ecological balance and providding livelihood options for 6,00000 popooror f families in villagesp y p f y j , ( j )near the company’s productioon facility in Tehsil Tijara, Alwar (Rajajaststhahan)n).

When SRF viewed Milkhapur for the fi rst time,

there was no water that supported vegetal

growth; the land was barren. Today, thanks

to SRF’s water harvesting programs crops thrive in this

region. Milkhapur is a shining example of SRF’s successful

community-corporate partnership for enhanced well-being of

the regions SRF operates in. A local villager, Tinni, recalls:

“Pehle yahan puri banjar zameen thi…sukha rahata tha…

paani nahin tha…saal bhar kuch bhi nahin ugta tha”. Bano,

Tinni’s wife, says: “Abhi to bahut kuchh badal gaya hai. kheti

bhi ho rahi hai. paani hai to fasal achhi ho jaati hai…”

community-corporate partnership

Integrated Natural Resource Management

INRM, started as a part of Sustainable Development Project

under the Clean Development Mechanism (CDM) and is aimed

at environment conservation, improving water and soil resources,

maintaining ecological balance and livelihood improvement of

6,000 poor families in villages near the company’s production

facility in Tehsil Tijara, Alwar (Rajasthan).

Rainwater Harvesting Infrastructure

64 paals have been constructed in 2007-08 and 2008-09 taking

the cumulative fi gures to 104 paals. The farmers’ averagefi

contribution was between 11 and 13 per cent. In small paals,

community contribution ranged between 18 and 20 per cent

where as in large paals it was between 8 and 10 per cent.

Average Cost of Paals Construction

Small Medium Large

2006-07 26,600 67,642 152,845

2007-08 21,462 68,641 162,988

2008-09 47,414 62,852 156,498

Average Cost 31,825 66,379 157,444

Community groups were actively involved in the construction

of these Paals. Mobilizing tractors, labour and making payments

was largely done by the respective User Groups and WC in

different villages.

Field Bunding and land leveling

The project continued land leveling and terracing activities to

convert private wastelands into cultivable agricultural lands in

the catchments and down stream of Paals. Over the past three

years, 339 ha of wasteland has been renewed for cultivation.


2006-07 2008-09 2008-09 Cumulative

Land Leveling

(Hectare)94 150 95 339

Number of Loose Stone Check Dams (LSCD) constructed

2006-07 2008-09 2008-09 Cumulative

LSCDs 273 225 86 584

At places with steep slopes water drains very speedily and

erodes the soil with itself. In these areas, LSCD have been

constructed as under.

Impact

With a catchment area of 7065 Ha, water holding capacity of 26

cu mtr has been set up in various Paali.

Catchment Area

in (Ha)

Submergence

Area in (Ha)

Water Storage

Capacity (cu mtr)

7,065 260 2,613,698

plantations

In villages near SRF facilities, more than 120,000 saplings were

planted over the last 3 years. Following is the status of the plant

survival:

Plants Survivedfrom thoseplanted in2006-07 & 2007-08

Plants Survivedfrom thoseplanted in2008-09

CumulativeSurvival(31st March, 2009)

Fodder 26,879 11,980 38,879

Fruit 26,700 09,765 35,465

Total 53,579 21,745 74,344

Challenges Faced

• Mechanization of agriculture activities and careless

ploughing damage roots which cause slow death of plants

which is not possible to monitor.

• Members are mostly small farmers and not willing to take

risk, they are more concerned about food grains & regular

crops cultivation than planting fruit trees.

• Mortality in fruit plants due to shadowing by mustard &

bajra crops.

agricultural interventions• Besides rainwater harvesting and land leveling, focus has

been on afforestation interventions - seed treatment, soil

treatment and maintaining appropriate spacing.

• Local seeds used in mustard produced excellent results

with 25% improved yield.

• Mix crops with Bajra tilli, Ground nuts also gave

encouraging results.

coverage

No of districts: 1

Blocks: 2 (Tijara and Kishangarh bas)

Villages: 33

Families impacted: 3,413

Families 2006-07 and

2007-08

2008-09 Cumulative

Direct 1,449 409 1,758

Indirect 1,234 321 1,655

Total 2,683 730 3,413

7676

Corporate Governance

For SRF, good governance means adoption of best practices to

ensure that the company operates not only within the regulatory

framework, but is also guided by broader business ethics. The

adoption of such corporate practices based on transparency and

proper disclosures-ensures accountability of the persons in charge

of the Company and brings benefit to investors, customers,fi

creditors, employees and the society within which SRF operates.

Precautionary Approach

The Chemicals Business has exposure to the international market

and faces the inherent risks and challenges from various players.

These must be managed to run the business in a sustainable

manner. Annual planning and breakthrough management at the

highest level takes care of this. The national and international

events are closely monitored for any impact on the business.

A clear responsibility and accountability structure has been

demarcated for proper implementation of the planned objectives.

Progress of the implementation process is regularly reviewed and

suitable corrective action is taken wherever required.

Information Supplied to the Board

The Board of Directors (referred to as ‘Board’) has complete

access to all relevant information on the company.

Inter-alia, the following information is regularly provided to the

Board as part of the agenda papers well in advance of the Board

meetings or is tabled during the Board meetings:

• Materially important show cause, demand, prosecution

and penalty notices;

• Fatal or serious accidents, dangerous occurrences, any

material effl uent or pollution problems;fl

• Any issue which involves possible public or product liability

claims of substantial nature, including a judgment or order which

may have passed strictures on the conduct of the Company or

taken an adverse view regarding another enterprise that can

have negative implications on the Company;

governance, commitments and

engagement • Details of any joint venture or collaboration agreement;

• Signifi cant labour problems and their proposed solutions;fi

• Any signifi cant development in the sphere of humanfi

resources/ industrial relations eg. signing of wage agreement,

implementation of voluntary retirement scheme;

• Sale of material nature of any investment, subsidiaries,

assets, which is not in the normal course of business;

• Non-compliance of any regulatory, statutory or listing

requirements and shareholders’ service such as non-

payment of dividend, delay in share transfer.

The Board reviews quarterly, the compliance reports of all

laws applicable to the Company, as well as steps taken by the

Company to rectify instances of non-compliance.

Board of Directors

- Mr. Arun Bharat Ram, Executive Chairman, Promoter

- Mr. Ashish Bharat Ram, Executive, Promoter

- Mr. Kartikeya Bharat Ram, Executive, Promoter

- Mr. K Ravichandra, Executive

- Mr. S P Agarwala, Independent

- Mr. M V Subbiah, Independent

- Mr. Satish K Kaura, Independent

- Mr. Vinayak Chatterjee, Independent

- Mr. Subodh Bhargava, Independent

- Mr. Piyush G Mankad, Independent

Corporate Leadership Team

- Mr. Arun Bharat Ram, Chairman

- Mr. Ashish Bharat Ram, Managing Director

- Mr. Kartikeya Bharat Ram, Deputy Managing Director

- Mr. Rajdeep Anand, President & CEO (Projects & R&D)

- Mr. Sushil Kapoor, President & CEO (TTB)

- Mr. Roop Salotra, President & CEO (CB & PFB)

- Mr. Suresh Dutt Tripathi, President (Corporate HR)

- Mr. Rajendra Prasad, President & CFO


In the organization, the chair of highest governance body is also

an Executive Officer.fi

The various board committees (Audit Committee,

Shareholders’ Investors’ Grievance Committee, Committee of

Directors – Financial Resources, Remuneration Committee,

Provident Fund/Superannuation/ Gratuity Committee,

Corporate Leadership Team (CLT)

Business Leadership Team (BLT)

Unit Leadership Team (ULT)

Audit Committees Remuneration Committees

Shareholders’ Investors’ Grievance Committees

Committees of Directors Financial Resources

Board of Directors

Board Committees

To maximize shareholders’ capital and meet their expectations,

the highest Governance body – the Board of Directors,

provide direction to the company and review and monitor all

major activities. The Board of Directors adhere to the highest

principles and values to ensure the confidence of shareholdersfi

and stakeholders.

Committee of Directors - Projects) along with non-executive and

independent directors, help bring transparency and accountability

within the business processes. The details of the Board Committees

are available on the SRF official website – www.srf.com.fi

In accordance with the Articles of Association of the Company and

the Companies Act, all important resolutions like appointment

of Directors, Executive Directors, borrowing limits, balance

sheet and profit & loss account, declaration of fifi nal dividendfi

on shares, etc., are approved by the shareholders in the General

Body meeting. Remuneration of Directors is governed by the

Companies Act. Specific remuneration for Executive Directors isfi

determined by the shareholders at the general meeting within the

limits stipulated by the Companies Act.

7878

Oversight, Implementation and Audit of Economic,

Environmental, Social and Related Policies

The various Board committees of the Company approve the

different policies related to finance, occupational health and fifi

safety and social contribution. The Internal Audit teams from the

corporate office audit the individual units for the implementation fi

of fi nancial and legal requirements. The Auditors present their fi

findings and recommendations for improvements in the system. The fifi

improvement plan is reviewed with the CEO at regular intervals.

Details are available at the company website at www.srf.com.

Code of Conduct for Directors and Senior Management

The purpose of this Code of Conduct (or ‘Code’) is to lay down

the key principles, rules and guidelines for the Directors and

senior management to be followed in the course of conducting

the business of and in discharging fi duciary obligations towardsfi

SRF. The details are available at the SRF official website – www.fi

srf.com.

Monetary value of significant fifi nes and total number of fi

non-monetary sanctions for non-compliance with laws and

regulations SRF Chemicals Business has complied with

all regulations, laws and statutes applicable to its various

operations, services, distribution and other activities. No

monetary or non-monetary penalties or sanctions were imposed

during the year 2007-08 & 2008-09.

Public policy positions and participation in public policy

development and lobbying SRF is a member of various

government & non-government organization. It has given its

comments and inputs relating to guidelines, framework on

Montreal Protocol implementation, environment regulations

from Ministry of Environment and Forests and Corporate Social

Responsibility guidelines from the CII.

Code of Conduct and Ethics

The Organization has various policies related to Code of

Conduct & Ethics. Following are some of the key elements of

those policies:

- General behavior at work place

- Relating to each other

- Relating to company resources

- Relating to Business Partners and Associates

- Standard Protocol, if violation of Code of conduct is

observed:

An employee may have some questions, concerns or problems

regarding the application of the Code of Conduct by fellow

employees or organization. S/he is encouraged to discuss them

with the immediate superior/ process owner. If, for some reason,

this is not feasible or appropriate, the issue(s) may get raised

with one of the following, as appropriate: HR Process Head

(Corporate & Unit), IA Process Head, Corporate Process Head,

Business Manager, Chief Operating Officer, Chief Executive fi

Offi cer, Vice Chairman.fi

If the employee does not wish to disclose his/her identity, s/he

can do so via the help-line system that is made available in each

unit. The company is committed to protect such employee from

any unfair termination or prejudicial employment practices.

Performance Highlights

• Prevention of Corruption policy is kept on the Company’s

intranet. All employees are encouraged to go through the

policy kept at intranet. This policy is also communicated

to the employees as a part of their induction programme.

Approximately all employees have been trained to

understand and follow the organization’s prevention of

corruption policy.

• In the year 2007-08 & 2008-09, no case of violation for

Prevention of Corruption at Work place either directly or

indirectly was found.


awards and honours

Name of the Award orRating or Certificationfi

Name of Awarding / Rating / Certifying Organization

Year Dimension (s)

SRF among 50 best performing Stocks S&P ESG India Index 2009 Env/ Eco/ Soc

CII ITC Sustainability Award –Commendation for Strong Commitment

CII ITC Centre for Sustainable Development

2008 Env/ Eco/ Soc

Offi cer’s Cross of Merit to Chairman Federal Republic of Germany 2008 Eco/ Socfi

Hyundai Award for Quality Excellence Hyundai 2008 Eco

NABL Certifi cation for QA Lab National Accreditation Board for fiTesting and Calibration Laboratories

2008 Eco/ Env

SRF among 50 best performing Stocks S&P ESG India Index 2008 Env/ Eco/ Soc

Finalist of Golden Peacock EnvironmentManagement Award

Institute of Director 2008 Env

memberships and affi liations1. CII Membership

2. National Safety Council

3. Member of India Chemical Council (ICC)

4. Member of Local Crisis Group

5. Member of District Crisis Group

6. ASSOCHAM Membership

7. Bhiwadi Manufacturing Association

8080


G3 2007 Reference/Page No.

Strategy and Analysis

1.1 8-9

1.2 18

Organizational Profilefi

2.1 10 to 12

2.2 14

2.3 to 2.8 10 to 12

2.9 22

2.10 79

Report Parameters

3.1 to 3.4;3.6 to 3.10

6

3.5 15, 18

3.11 22

3.12 82

3.13 80

Governance, Commitments and Engagement

4.1; 4.11 76

4.2 to 4.5 77

4.6; 4.7, 4.9; 4.10;4.12

78

4.8 11, 78

4.13 79

4.14 to 4.17 15, 16

Economic Performance Indicators

ManagementApproach

28

GRI Report Index


EC1 30

EC2 20, 30, 46

EC3 53

EC4 46

EC5 55

EC6 63

EC7 54

EC8 31

EC9 30

Environmental Performance Indicators

ManagementApproach

34

EN1 to EN2;EN26 to EN27

36

EN3 to EN4; EN27 37

EN5 to EN7 38-40

EN8 to EN9 41

EN10 43

EN11 to EN13 45

EN16 to EN17 47

EN18 to EN19 46

EN20 44

EN21 43

EN22 44

EN23;EN28 to EN29

47

EN30 37


Social Performance Indicators

ManagementApproach (LA, HR and SO)

66

LA1 to LA2; LA13 52

LA3 to LA4; LA9;LA14

53

LA5;HR1; HR3;HR5 to HR7;HR9

54

LA6 58

LA7 60

LA8 61, 72

LA10; HR8 56

LA11 to LA12;HR2; HR4

55, 56

SO1 67 to 75

SO2 to SO8 78

Product Responsibility

ManagementApproach

48

PR1 to PR9 48, 49

Documents

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