our sustainability approach

SRF considers sustainability as a foundation to its business and

is committed to excelling in the triple bottom line. It firmly
fi believes that success in business
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.
 2007-08 & 2008-09
H I G H L I G H T S

23% increase in net revenue during 2008-09

9

32% growth in operating

g profit (PBITT) du
duriring
ng
g220
008-09
09
9

Increase
se iinn co
compaany em
mployee strtren
ength by 10%
% in two years
 About 1,360 fammiliees dirrec
mili ectltlyy covered under Community Development
Programme in ttw
wo years

7.9 Million M To
Tons
ns eequ
quiv
ival
alen
entt of CO2 saaved from being released into
o the atmosphere in ttwo
wo yyea
ears
rss

1.5 Million Cubic Meter rainwaater harvested in two years

Nearly 90,000 sap

plings planted in two years
 “We will make our nation proud
by being the best at what we do.”

about the report

SRF, as a busin siness
ess,, is
is com
commmitted towards excelling in triple bootto
mmitt tt m line
in , i.e. As sett in the maiden report publisheed in 2006-07, while compiling this report
econom
eco nomicic, so
socia
ciall and envvironmental performances. Thhe report onn Eco Econoomic as well, GRI-G3 guidelines have beeen followed and all relevant technical
Performance is drawn froom the Company’s Annu Annunuall Repo
nua eport.
rt. M/S Deloittte protocols adhered to for reporting thhe core and additional indicators.
Haskins & Sells, Chartered Accountannts, Ne N w Delhi
D (India), have aud audited
di The report covers details about the Chemicals Business, which includes
the accounts of the comp mppany. Thee Com
Company publishes financiial report foor the Fluorochemicals and Fluorospecialiity Chemicals Plant situated at Jhiwana,
SRF group as a who whole.le.
e W
e. While
Whh l all other financial data indi ndicated in this repport Distt. Alwar, Rajasthan (India). The corporate office is located at Gurgaon
per
ertai
tains
ns to SRFR Chemica
C
Ch als Business, Dividends nds to shareholders are based on (Haryana) and the marketing officees at various locations in India.
the
h SR
he SR Company perforrmance. Data
SRF ata rrellating to Environment, Health &
Safety (EHS) is compiledd fr from
om the
h EHS performance data maintained by the The following persons can be contaacted for questions regarding the report:
organization. Soci cial
al De
Deveelopment is reflective
fl of the initiatives taken by SRF as • Roop Salotra, President & CEO O (salotra@srf.com)
a part of itits Corporate Soocial Responsibility (CSR). The data & perform mance • Aseem Mehrotra, VP & Businesss Head (aseem@srf.com)
indicator in this report
p ppeertains to the period
p off two consecutive years
y i.e.. 1st • Rajeev Marwah, VP & Head of Works (Rajeev.Marwah@srf.com)
April, 2007 to 31st Marrch, 2008 and 1st April 2008 to 31st March, 20009. • H.S. Dua, AVP – HR & CSR (hsdua@srf.com)
The reporting cycle woulld be bi-annual. • Alok Chandra, Chief Manager (EHS) (alok.chandra@srf.com)
 ghlights 4
hig
g Director 8
message from the Managing
about SRF 10
about
Chemicalss Business 12
ouur stakeholders 15
challenges and opportunities 18
managemennt way 23
ork 25
our sustainaable business framewo

governance, commitments and enngagement 76

awards and honours 79

assurance statement 80
GRI indicators 82
MESSAGE FROM THE MANAGING DIRECTOR

Y t, we co
Ye
Yet, continued
ont
n inued the journey wiith stronger conviction than ever before
and spurred by our ccon
onfifidence inn the saying “When the going gets tough,
the tough get going”. The need
ed ooff th
the hour was to match its extant ability
with adaptability to be able to garrner groowt
wth.
h. W
We seized the opportunity
to improve our internal efficiencie
fi es by making our syyst
stem
emss an
a d processes
lean using our TQM philosophy. Simultaneously, we renewedd ou
ourr fo
focu
cus
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 sttay
afloat.
fl The strategy paid off. Deespite slowdown in the globall ec
econ
onom
omy,
om
the Chemicals Business net revenue increased by 22
22.5
.5%
.5% too R
Rs.
s.
594.57 crore and PBIT increaseed by 31.5%
% to
to Rs
Rs.. 35
353.755 cro
crore
re..

Overall, the Chemicals Businnesss perf

rffor
orm
mance ha
hass be
been
enn enc
ncou
ouraging
ou
and it continues to main
inta
taiin itss leadershipp inn rref
efri
rige
gera
raant
nt ggas
ases
es with about
es
40% market sha
hare. Th
Thee Fluorosspec
ecia
iallity
ia lity Bussinnes
ess,
s, whhiich is essentially
Dear Stakeholderss
drivenn bby ouur R&
R&D experttisse in
in the aare
reea of fluorrine chemistry, turned
arou
aroundd during this
is perio
riod.
d. The succe
uccess
sss ooff R&D is therefore critica
call.
We believee tha
hat go
goinng fo
forw
rw
war
ardd Fl
Fl osp
Fluoros eciality will provide SR
SRF
F with
a coompet
petitiivve ed
edge
ge in
ge i thhe markket. SRF’s R&D team in th
the Ch
Chemicals
Business is currren
entltly actitive
vely
vely innvolved in devellop
opiingg technologies &
processes foor ph
phar
arma
ma & agro inttermediates.
s.

Environmentt Management rem

En mai
ains one of the key priorities for the
Chemiccal
als Business. Thee Co
Comppan
any operates in an environment which
Dear Stakehold
lder
ers,
iss regulated by thhe Montreeal annd Kyoto Protocols. More recently, the
I am proudd to share our journey of sustainab
able
le bbusiness durinng the
hee Companyy ha
has adoppte
tedd the Reaach Regulation due to the high export
last two years. These years have bee
een a true test in various faccets of coont
nten
e t of sales
es tto the European Union. The company is also focused on
business; especiallyy our
urr aapp
pprroachh toward a triple bottom lin
i e. Thiis is the micro leeve
vell issues related to wateer management & waste management.
Comp
Compan
any’
y’ss se
seccond Suustainability Report based on GR
G I-G3
G3 ggui
uiddelines.
During the last two years, thee revenue of the Chemicals Business
We have decided to puublish the report ever
evverry al
alltern
terrnate
te nat
atee year.
declined due to an accelerated phase out of CFCs to meet deadlines
SRF’s journey, whilee deeplyy re
rew
eward
warding, has been extrem
mel
elyy challeenging under the Montreal Protocol. This has increased the focus on
as the compa
pany
ny fac
aceed
ed arguably one of the most turbulent global enhancing production of the neew generation refrigerant HFC 134a
meltltdo
me down
w s ev
wn e er witneessed. Like mostt ot
othher corporates, SRF was hit which has continued as a subsstitute for CFCs. The technology &
hard by the economic slowdow
ownn which began unfolding in Septtember process of HFC 134a was deveeloped in-house and SRF has the only
2008 after a high gr
groowth trajectory in the first half of the yearr. The manufacturing facility of HFC 134a in India. This refrigerant is used
demand
nd ffoor our goodds declined and prices fell precipitouslyy. The in automobiles, air conditionerss, refrigerators & pharma industries.
fluctuating exchange rate did not help the cause either
either. Clearly
Clearly, it was The company continues to incinnerate HFC 23, a Green House Gas,
a free fall for the marrket. as a commitment towards the Kyoto Protocol.
 ASHISH BHARAT RAM

The Bhiwadi regiionn, wh

wher
wher
eere
re ou
our C
our Chem
hemic
micals
cal
als Business Plant is situated, to thee ssuccess
uccess off the
uc h or
orga
org
ggani
aniization.
zation Our strong belief is that situationss
comes under thhe reed zo
zone witth re
zone reggard to ground water availabiliity. This haas are temp
mpor
oraary and institutiions are permanent. We therefore did not
provided
edd SRF witth th
the daunting task of limiting the water coons
nsuumption. resort to any knee-jerk reaction of downsizing during the year. Inn
Thhe Co
Company haas taken this challenge with great convvic
Com ictition and started fact, drawing strength froom our enduring value systems of trustt,
various projects towards water conservationn & recycling/reeuse within dignity and respect for eacch other, we renewed our focus on peoplee
the plant. The Chemicals Busineess became a 'Zero Dischharge Unit' development during the turrbulent year.
in 2006-07 and continues to be so till date. Internal projectts were not
In community developmennt, we intensified our efforts to reach ouut
enough to replenissh wa
watter ba
back
ck to the ground and therefore thhe company
to the most disadvantagedd of the poor in Tijara Tehsil of Alwarr,
decided to ini
nititiat
ni a e a Watershed Development Program forr rainwater
Rajasthan near our Chem
micals Business Plant. The idea was too
harv
harves
estititinng
ng iinn ne
neaarby villages in the year 2006-07. Cumuulatively the
improve their livelihood by harnessing under-utilized land and waterr
wate
waterrshhed proj
ojec
ectt ha
has ha
harv
rves
este
tedd ov
over 1.5 million cubic meter of rainwater
resources under Natural Reesource Management (N
(NRM
RM)) pr
prog
ogra
ramm
mmeee.
in the past two yeears. This is moree th
than
an tthe
he tot
otal
al con
onsu
sump
mptitioon
on ooff wa
w te
terr
Duri
Du ring
ng the pas
astt tw
twoo ye
year
ars,
s tho
hous
usan
ands
d off fa
f milies hav
avee be
been
en ppos
osititiively
ly
used in the plant operations of the Chemicals Business.
affected by our social devellopment interventions.
The Company coontinues to be focused on energy optimizatioon projects.
Further, we carried forwaard our commitment for providing qualityy
Various time bouund projects were initiated in the last two years which
education
d i to the
h underpri
d p ivileged
il d sections
i off the
h society
i under
d the
he
have paved the way for the business to achieve more than 5% saving
aegis of the SRF Founddation. The Company has adopted a
in the annual ennergy consumption. This has helped miniimize CO2
Government primary schoool at village Ban-Ban in close vicinity too
emissions in adddition to saving valuable resources. In adddition, the
the factory to improve thee minimum level of learning of childrenn,
Company has inccreased the use of renewable energy and useed mustard
reduce drop-out rate of chhildren from school and impart educationn
husk to produce low pressure steam for process usage. Thhis has also
to the girl child.
provided financiaal gains to local husk suppliers.
HIV/AIDS continues too remain a cause of social concernn.
Waste minimizatiion through
g innovative ways
y has helped
p us in reducingg
The Company continued to strengthen its HIV/AIDS awarenesss
plastic waste goinng in landfill. This is achieved by replacingg the plastic
programs and campaign thrrough its master trainers especially trainedd
barrels with bulkk packaging (Lined tankers) for procurem
ment of one
to propagate HIV preventioon through awareness programs.
of the hazardous chemicals used in Fluorospeciality Plant.
SRF has geared up its work towards inclusive growth with thee
Health and Safety remained at the top of our agenda annd has now
adoption of the CII code of conduct on affirmative action. Duringg
become well enttrenched parts of our value system. Despite the
the year various initiativess have been started including vocationaal
challenging milieeu, the Company has uplifted its Healthh & Safety
courses, scholarships, remeedial centres to support the poor and needyy
standards by layiing more focus on Process Safety, Structuural Safety,
students from SC and ST categories.
Behavioral Safety and Emergency Preparedness as iss reflected
fl
through marked improvement in SRF’s external audit evalluation.
I would like to conclude byy expressing my sincere gratitude to all ourr
SRF’s commitment towards sustainability was honored in thhe business stakeholders, including myy colleagues at SRF, for their unmatchedd
community with the prestigious CII-ITC Sustainability Award for support in our journey tow
wards maintaining a balanced triple bottom
m
the year 2008. SRF Chemicals Business won the 'Comm
mendation' line. We will continue to coonduct our business with impeccable valuess
Certificate in thee independent category. and ethics. I am sure that we will continue to build and excel SRF’ss
credibilityy as a professiona
p f allyy managed,
g , sustainable Company
p y withh
We believe that employees are our strength and unarguabbly the key global ambitions and soundd values.
Established in 1973 as a manufacturer
f off nylon
y tyre
y cord,, SRF F has since diversifified into a multi-business entityy engaged
g g in the manufacturi
f ring
ngg
of industrial intermeddiates. With head quarters in Gurgaon, India, the Company has a workforce off 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 Technical
Textiles Business, whiich enjoys a global leadership position, SRF
F is a domestic leader in Refrigerants, Engiineering Plastics and Industrial Yarns.
The Company also ennjoys a significant presence among the keey domestic manufacturers of Polyester Films and Fluorospecialities. Builildi ding
ng
on its in-house R&D facilities for Technical Textiles Business and Chemicals Business, the company strrives to stay ahead in businnes esss thhro
rouugh
innovation in operations and product development. Winner of the prestigious Deming Application Prrize for its Tyre Co Cord
rd Bussin
iness,, SRF F
continues to redefine its work and corporate culture with TQM M as the backbone of its Management Waay.

a snapshot
- USD 400 millionn (Rs. 2,000 crore) multi-product, multi-busiiness organization
- Market leader in Technical Textiles, Refrigerants, Engineeringg Plasticss andd In
Indu
dustrial Yarrns
- Eight locations in India and one each in Dubai, South Africa and T
Tha
hailand
- Exporting to overr 60 countries

a global leader a domestic leader

- Nylon 6 Tyre Coordd Fa
Fabbric:: 2n
2ndd largest producer - Refrigerants: No. 1 in India (40% maarket share)
- Beltinng Fa
Fabr
bric
ics: 2nd
n lar
a gest producer - Tyre Cord: No. 1 in India (36% marrket share)
- Belting fabrics: No. 1 in India (60% market 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

10
ASPIRATION 2020

“To achiiev
e e gl
g obbal lea
eade
dership by continuously enhanccingg or
organizationall aand
nd people capabilitty, developing innovative products and
d
proc
oce
oc
ces
esse
ses th
ses that
at satisfy customers, and attaining ch
hal
a le
lenngingg benchmarks in productivity.”
ngin

Technicaal Textile Business appplications such as refrigeration and d

airr-conditioning, as a blowing agent
Building on its dominant position in the forr insulating foam, as a propellant forr
domestic market, SRF enjoys a significant fi aerrosols, in mobile air conditioning
ng,, an
and
d as
as
presence in the global market as well for a propopel
ella
lant
nt in
in me
mete
teredd dosee inhalers for
all th
t e foour produ
ducts und der it its Techni
hnica
c l ph
harmaceutical companies.
Textile Bu
Te usiness - tyre cords, belting fabrics,
coated fabbrics, and d ind
dusttriiall yar
arns
ns. SRRF ha hass also
l bbeen taking responsiblee
iniitiatives under the gguidelines
initiatives uidelines of United
d
Its tyre cord fabrics are used as reinforcement Nations Framework Convention on n
Core Values & Principles
material for all categories off tyres – from Climate Change (UNF FCCC) as a part of itss
SRF has codifi
fied the follow
wing bicycles to heavy commerrcial vehicles. Clean Development Mechanism (CDM).
principles related to people and The company’s Belting Fabrics are used as
work: reinforcement material for manufacturing SRF entered into th he Fluorospecialitiess
conveyor belts. Its coated fabrics fi find Business in 2003-04 as a natural progression
n
People Related of its expertise in Fluoorochemicals and itss
applications as static and dyynamic covers
- Create a win-win with all in various areas ranging from Agriculture to strong knowledge of Floorine chemistry. Thiss
stakeholders Defense applications, and SR RF’s industrial business is focused on addressing the need d
- Lead by example yarns with a market leaderrship of more for complex organo-fluorine
flu compounds.
- Self-discipline than 50% are used in the manufacturing
Equipped with fullyy integrated multi-
of a wide range of products su uch as fifishnet,
- Participation by all location facilities at Maanali and Pantnagarr,
ropes, industrial sewing th hread, narrow
- Continuing education for alll the Engineering Plasttic Business has thee
industrial tapes, Velcro, shooe strings and
capability to compou und more than 1500
Work Related badminton raquet strings.
grades of engineering plastics in Nylon 6, 6
- Focus on quality, not short-tterm Nylon 66 and PBT witth consistent qualityy.
Chemicals & Polymers Bus
Business
siness
profits
fi With the brand naames of TUFNYL L,
- ‘Market-in’, not ‘product-ou
ut’ SRF’s Chemicals & Polym mers Business TUFBET and TUFPC C the business caters
includes the Chemicals and th
he Engineering to the needs of dif ifferent
fferent sectors likee
- Be customer-oriented
Plastics Business. The Chemmicals Business automotive, electrical, telecom, engineeringg,
- Work
W k with
h facts
f and
d data
d
in turn comprises Fluoroch hemicals and electronics and industrrial sectors.
- Act on causes, not phenom
mena Fluorospecialities Businessess. Company’s
- Be process-oriented Refrigerant products are soold under the Packaging Films Bussiness
- Prioritize brandname ‘FLORON’.
The company
company’ss Packaaging Film Businesss
In the Fluorochemical spaace, SRF has produces PET films, which are used in n
grown to become the undispu uted domestic the packaging of food,, cosmetics, personaal
market leader in its core prroduct line of and health care products. The focuss
Refrigerants, while exportingg two-thirds of of the business is to move up the valuee
its production to world-class international chain of packaging film ms and towards thiss
buyers spread across 60 countries. SRF’s end, it is a supplier of metallized fi
films and
refrigerants are used for a variety of holographic films apart from plain and
industrial, commercial and household chemically treated polyester fi films.

SRF Chemicals Business 11 Sustainability Report 2008-09

 Chemicals Business

1989 1995 2004 2005 2006

Start-up year Chloromethanes Fluorospecialities Thermal Oxidation Plant Captive Power Plant
Hydrofluoric
fl Acid & Plant Plant & HFC 134a Plant
Refrigerant Plant

Factfi
file
Gases), Chloromethanes and Fluorospeciality products, Village Jhiwana, District
which are used for a variety of industrial, commercial and Alwar-301019, State Rajasthan
household applications and intermediates for pharmaceutical & (India), 65 km. from India's
agrochemicals industry . capital, New Delhi
Location of Head Office
fi Block C, Sector 45, Gurgaon-
Based on its strength in fluorination chemistry, plant engineering, 122001, Haryana
effi
ficient plant operation and relationship with pharma and agro
Country of operation India
manufacturers, SRF identifi fied manufacturing of fluorospeciality
Nature of ownership of Public Limited Company
chemicals as a key focus area.
the company
Customer Orientation and Innovation Markets served India, Asia, Europe, USA,
Middle East
Towards complete customer satisfaction, SRF follows the TQM
Customer base Pharmaceuticals, agro
way of satisfying customer needs on the three dimensions of chemicals, automobiles,
Quality (Q), Cost (C) and Delivery (D). refrigeration and air
conditioning
Continual improvements in upstream and downstream processes
Net sales (2007-08) Rs. 485 crore
is achieved through efficiency
fi improvements, waste elimination,
Net sales (2008-09) Rs. 595 crore
reduction in non-conformities, and green production.
Quantity of product sold Fluorochemicals & allied
Strengths in 2007-08 Products = 12858 MTons
(MT)
• Proven capability in ‘process development to Chloromethanes = 15835 MT
commercialization’.
Quantity of product sold Fluorochemicals & allied
• Expertise in high pressure/temperature reactions, in 2008-09 products = 13461 MTons
reactions like fluorination,
fl chlorination, bromination, (MT)
Chloromethanes = 19635 MT
etc., and handling of hazardous chemicals puts SRF
Employees by countries / India: 405 employees
Chemicals Business in top league.
regions
• Commitment and responsibility towards quality and on-
time delivery is SRF’s hallmark.

12
touching many aspects of our life
Chemicals 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.

Comfort

Building Preservation
Construction of Food

Gypsum as Car AC,

raw Room AC
material for
Cement Refrigerator

Non Stick
Kitchenware

PIX
Raw material
for Cold Storage, Food Security
PTEE (Teflon) Food
transportation

Inhaler

Agro products
from
Agro intermediate

Medicines from
Pharma
Intermediate

High grain Life support

production Health care

SRF Chemicals Business 13 Sustainability Report 2008-09

 product profile
Whethher it is keeping your drink ice cool, providing you the comfort of ai
air-
r-co
c nditioning,
helpping the world go green or helping yoour child breathe easy when asthmaa st stri
rike
kes,
s,
SRF iis the
th compan
p ny that
th t makes
k products
p d t for f a more comfor
f rtable
t bl world. ld

Chemicals Business

Fluorochemicals (FC) Refrigerant

f Plants
- Floron 22: Reffrigerant,
Low Temperaature Solvent,
manufacture oof Resins, PTFE.
- Floron 134a: Refrigerant,
fi t Bl
Blowing
i
agent, Aerosool.

Chloromethane Plant
- Methylene Dicchloride: Solvent in
drugs, Cleanin
ng agent
- Chloroform: Raw Material for
Refrigerant gaases, Solvent, Lab
chemical
- Carbon Tetracchloride: Raw
Material for Refrigerant gases,
Solvent, Lab chemical, Flexible
foam, Chlorinnated rubber,
Insecticide

Fluorospecialities (FS) Fluorospeciality Plants

- Trifluoroacetic
fl c Acid (TFA)
- Penta Fluoro Benzoic Acid (PFBA)
- Para Bromo Fluoro Benzene
(PBFB)
- 2,3,5,6-Tetra fluorobenzyl Alcohol
(TFBAlc)
- Ethyl Difluoro
fl Acetate (EDFA)
- Ethyl Trifl
fluoroo-aminocrotonate
(EAC)
Application: Pharma and Agro
intermediates

14
 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 finance, 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

Prioritizing stakeholders
Identification of Development of
that need to be interacted
primary & secondary stakeholder influence
fl and
with, on the basis of the
stakeholders. dependency matrix.
developed matrix.

After the engagement, Conduct the engagement.

assessing the outcome
including evaluation
and result.
Finalizing the approaches
Different approaches include
to be used for engagement
communication, consultation,
process.
dialogue & partnership.

Sharing the learning

internally.

SRF Chemicals Business 15 Sustainability Report 2008-09

shareholders government employees
(Capital providers, Owners, Partners) (Statutory bodies, policy makers & (The key resource for sustainable growth)
regulators, revenue collectors, Pollution
Nature of engagement Control Boards, Labour & Factory Nature of engagement
- Annual General Meetings Inspectors, etc.) - Direct interaction with employees
- Written communication with the - Monthly and quarterly meetings
Board Nature of engagement - Kaizen schemes
- Regular meetings - TIE groups
Issues and concerns - Plant visits - Red book
- Growth & profit - Verbal & written communication - Climate survey of the organization
- Top line & bottom line performances - Development dialogue
- Risk mitigation Issues and concerns - Focus group meeting
- Compliance - Statutory compliance
- Long term sustainability - Payment of fees & taxes. Issues and concerns
- Credibility & reputation - Compliance on audit/inspection - Personal development and growth
findings. - Occupational Health & Safety
SRF’s responses - Performance linked appraisals
The financial performance is declared SRF’s responses - Infrastructural development
& published in all leading newspapers. All relevant information is given to - Bonding between old and new
These reports are also sent to SEBI. concerned statutory authorities in employees.
The following are available on SRF advance and as and when required.
website www.srf.com: Regular meetings are held with SRF’s responses
- Investors queries statutory bodies to understand any new - Regular training and development
- Financial results development on legal requirement. to employees to enhance skills &
- SRF v/s BSE All fees, consents, licenses are obtained capabilities facilitates personal growth.
- Shareholding pattern and renewed well in advance and as per - Regular interaction with employees
- Notification to Stock Exchange schedule. through daily management meetings,
- Weekly share price 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.

16
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 confidence
- 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
efficiency.
- 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.
SRF Chemicals Business
communities suppliers
(Communities around factory can be (Important part of SRF’s value chain, key
potentially impacted by its operations) link between company and customers)
Nature of engagement Nature of engagement
- Interaction with villagers and - Vendor development and evaluation
sarpanch - Review of vendors’ & suppliers’ quality
- Invitation to them to visit and join - Regular interaction with vendors
factory functions
- Interaction through NGOs Issues and concerns
- Community development programmes - Adequate returns on investments
- Continuity and growth of business
Issues and concerns - Improvement in processes
- Availability of water for drinking and - Timely and secured payment
farming
- Sanitation and hygienic conditions SRF’s responses
- Education for children - Regular visits to suppliers enhance and
- Environmental impact of existing transfers best practices.
plant and future projects - Regular feedback helps improve
services and relationships.
SRF’s responses - Treating them as partners.
- 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.
17 Sustainability Report 2008-09
process to identify challenges & opportunities
SRF 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
fi the process that
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
fication of gaps between current
situation and desired situation, and formulation of a strategy to
bridge that gap.

breakthrough management methodology

PURPOSE

ASPIRATIONS 2020

2011-12
Grow current businesses

2010-11
Improve returns from
core businesses BASE
2009-10 YEAR
2006-07
Build new businesses
2008-09

Build a high performing

organisation 2007-08

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
fi distressed Global economic crises may delay the growth engine.
firms available at bargains.
FC: Accelerated HCFC phase-out FC: Constrained supply and skyrocketing prices of fl
fluorspar
Opportunities during industry churn. may make low-cost production outside China unviable.
FS: Requirement of fl
fluorinated intermediates in new agro FS: Short product lifecycles and very limited number of
and pharma molecules. customers (<5) for most products.
FS: India perceived to be a nation that protects Intellectual
Property, and therefore safe for sharing high technology.

18
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
Product obsolescence in Fluorochemicals.
Very high cost or non-availability of fluorspar for
Fluorochemicals products.
Nature of Fluorospeciality products: High gestation, low
product life.
Limited number of Fluorospeciality customers.
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
fi delegation of power
and relies on a TQM system of control points, comprehensive
SRF Chemicals Business
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:
Countermeasure
Developed and commercialized new product (HFC 134a),
where SRF is the domestic market leader in the OEM segment
and a major player in the trade segment. Working towards
development/ purchase of other HFCs, and capability to deliver
HFC blends to customers.
Have entered into a Joint Venture in China to ensure access to
Hydrogen Fluoride (‘HF’; one step downstream from fluorspar).
Are looking at opportunities to source fluorspar from other
countries as well.
Attempt to derisk process development by getting a
commitment from the customer, or by finding two or three
customers who want the product. Product pricing attempts to
recover investment over the life of the product.
Create strategic relationships with customers. Enter into
contracts for product supply.
budgetary controls and review systems to monitor its operations.
In addition, internal audits verify compliance to defi
fined policies
& procedures.
19 Sustainability Report 2008-09
Environment Manageement Social Risk & Control

Environment manageement is dealt with at two levelss. Being a hazardous plant, social risk mitigation is always part
rt
Macro level issues su
uch as global climate are taken care of of the strategy and operations in
n SRF Chemicals Bu
Busi
siineess
ss.
at the strategic level to ensure smooth phase-out of GHG
G The organization has a great conceern for the soc
ociiety inc
nclludi
ding
& ODS substances. Unit level issues are taken care by plan
nt employees, contract workers and thee comm
mmunit
i y. Th
it The Compa
pany
ny
management team. A robust Environment Management System
m communicates various hazards and thee con
ontrol
olss in pla
lacce,, w
wiith
(EMS) is in place. Un
nder EMS continual focus is being given
n the community using vaari
riou
ous enga
gage
gageement
nts.
s. Utmos
U ost caare is being
towards identifying th
he environmental aspects, its impact on
n taken to maintai
ainn safe & hea
eallthy wor
ork
k envi
virronm
men
nt internally
the environment and putting adequate control to minimizee/ as well as eexxternallyy to have
h good
d rellattio
ions wit
ith th
the
h surrounding
eliminate the pollutan
nts. Regular auditing, identification
fi and
d vill
villagers & so
society at lar
arge. Man
anaagem
men
ent te
t am strives towards
implementation of En
nvironment Management Program
am pavees main
maintaining pe
in peac
acee and haarm
rmony in
n thee n
neighborhood.
the way for protection
n of work area environm
nmeentt and he
help
lpss in
lp
acchi
hiev
evin
ev i g utmost care for ecolog
ogyy an
andd th
he en
envi
viironment.

Financial Risks

Business operation
on ne
neces
e saari
rily
ly inv
nvol
olve
v s opportunities and ri
risk
sks. Effective risk
k management
nt iiss th
thereforre a key factor in safeguarding
a co
comp
mpany’s valu
ue. The management of opportuniiti
tiees and risk
ks at SRF
F iss aan integral
al part
p of thee ccorporrate governance system, not
merely
ly tthe
he task of one particular organiza
z tiion
onal
al unit. Key eleme
meentts of the rissk management
ntt ssystem are planning, budgeting, review,
reporting and control processses.

Thee fo
Th foll
llow
owin
ingg table repr
presents
ts a vvie
ieww on the finan
anci
ciall risks facingg th
the Chemicals Business today,
y, and our planned
p
c un
co u termea
easu
sure
res:
s:

Financial Risk Countermeasure

More than 80% of Fluorochemicals sales are USD Corporate Treasury hedges transactions, protecting any change
denominated. 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 Euro Attempting to denominate contracts in currency with a natural
denominated. This is expected to go up substantially over the hedge. Also, Corporate Treasury hedges transactions between
next few years. date of accrual and date of receipt.
Income from sale of Carbon Credits (incineration of R23) is Enter into futures contracts to safeguard exchange rate for CER
Euro denominated. income.

20
goals and targets
Goals and Targets (2007-08)
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
Lay the foundation for exponential growth in
Fluorospecialities through
- Stabilizing production of current range of products
- Identification
fi and development of new fluorinated
intermediates for pharma and agro chemical industries
Make SRF Chemical Business as an employer of choice by
- Acquiring, developing and retaining talent
Goals and Targets (2008-09)
Move towards becoming a fluorine chemicals major through
- Improving the viability of the Fluorospecialities Business
- Reduction in cost of conversion of current HFC 134a
- Strengthening domestic market leadership
Consolidate Bhiwadi operations by
- Enhancing EHS systems
- Effi
ficient & Effective Utility management
Build people and organizational capabilities through
- Standard Operating Procedures (SOPs) defi fined/improved
- Improvement in supervisor’s skill level
SRF Chemicals Business
Status
- R134a variable cost reduced.
- Full production sold (major shares in OEMs)
- 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.
- Employee turnover ratio improved by 7.5%.
Status
- Marked improvement in performance of Fluorospecialities
Business.
- CoC of HFC 134a (stable run, fi fixed input prices) has
been reduced.
- Signifi
ficant increase in sales of HFC 134a.
- 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%.
- 73% SOP were improved or introduced.
- 23% Improvement in measured skills through Supervisors
Skill Development Program.
21 Sustainability Report 2008-09
way forward
Improving 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: Grow Refrigerant Business by:
- Scaling up market presence in New Generation
- Penetrating international markets for existing products &
Refrigerants
identifying emerging products.
- Commercializing ‘products-under-development’ rapidly.

more such substitutes and blends. These alternatives will enable

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
fied our efforts to develop new
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
Chemicals Business to move forward and start delivering products
that will fill
fi the vacuum created by the phase out of CFCs, and
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.

significant changes during reporting period

De-bottlenecking of Hydrofluoric
fl Acid, Chloromethanes and Fluorospeciality Plants.

Commissioning of 2,3,5,6 Tetrafluorobenzyl

fl Alcohol (TFBAlc) Plant.

22
 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.

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).

Total Quality Management

SRF’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.

TIE Group TIE: Total Involvement of Employees

Champion CEO
Annually

- Employee groups – cross functional (own area,

(Faacilitator)
maintenance, utilities, safety)
- 40 TIE groups with 100% participation
Quaterly

Head of Works - Do 5-S, abnormality handling, AM, visual displays and

kaizen

Facilitators
- 20 min daily practice
Monthly

- Kaizen Week is celebrated every year

- Most machines at step 3 of autonomous maintenance
All Employees
Total Productive maintenance has helped Chemicals Business in
Daily

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

SRF Chemicals Business 23 Sustainability Report 2008-09

problem solving process: an effort towards process improvements
SRF’s unique problem-solving process has grown to cumulative
cover over 750 people, with nearly 400 certified
fi problem solvers.
In Chemicals Business total Certified
fi Problem Solvers are 25. The
advanced problem solving “PSP Silver” programme picked up
momentum last year and the Company celebrated the fi
first ever Gold
company-wide PSP convention to recognize, motivate and deepen
the problem solving efforts of teams, giving a further fillip to
Silver
TQM activities. Deep and rigorous application of TQM methods
and tools have contributed to the bottom line of the Company
Blue (Officer
through quality and cost improvement as well as significantly
fi & Supervisors)
Impact of Improvement

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. Blue (QCC)

They have commended the good work done and confirmed

fi SRF’s
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
fied skills in problem
solving, using a structured methodology and tools, to identify
and complete themes emanating from annual plans.
Unique Three-Tier Certifi
fication System
Level of Complexity
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
fi as Blue, Silver
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

A unique 3-tier certification

fi system (established in 2002) is shown Sulfuric acid.

here. Problems are classified

fi on the level of complexity involved in • Safe Disposal of spent Catalyst, though in-house technology
the project as well as the business impact of solving the problem. development.
At the basic level, a large number of problems are solved using • Increased HF plant stream capacity by 25%.

24
identification of key focus area
Company endeavors to identify key areas which affects its triple bottom line. Macro level issues are identified
fi by strategic planning
group, which scans the environment with reference to applicable multilateral environmental agreements, share their fi
findings and
make proposals to the business leadership team for relevant initiatives. Micro level issues are being identified
fi by the functional head
of respective plants and departments. During the year following key focus areas identified
fi for a Sustainable Business Model:

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 an
environmentally-friendly chemical
- Stabilizing & developing the
Fluorospeciality Chemicals for
strengthening the company’s presence
in Fluorine-based chemicals
- Energy Conservation - Strengthen the Bonding between new
and old employees
- Water Conservation
- Retaining skilled and experienced
- Replenishment of ground water to
manpower
make SRF Chemicals Business water
positive.
- Excelling the process safety
- Enhancing the use of Renewable
energy. - Contribution towards upliftment of
education system in nearby villagers
- Waste minimization through
innovative solutions. - Natural Resource Management
(NRM) project

beyond statutory compliance - Target-based water conservation programs to reduce water

consumption.
- Adoption of Integrated Management System including
ISO-9001, ISO-14001, OHSAS-18001 & SA-8000. - 35% plantation as against required 33%.

- Integrated watershed development program in partnership - Providing assistance to local administration, villagers,

with NGOs. nearby industries in mitigating industrial/local emergencies.

(e.g. fire incidence, evacuation from well).
- Adoption of Responsible Care Management system & having
Responsible Care logo.

- Target-based energy conservation programs to reduce

energy consumption

SRF Chemicals Business 25 Sustainability Report 2008-09

 our profit
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 first 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 profit (PB
BIT)

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.
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 fi
financial and
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 fi
financial reporting. A well established internal
audit system periodically reviews the controls and compliance
of laws and regulation, and the environment under which the
28
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 fi
financial and audit control systems are also
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
fi and operating functions, which provide reasonable
assurance that the set objectives are met. Some significant
fi
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.
Accountability
Thorough discussion on Global climate change and its effect
on the business and other financial aspects is an integral part
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
key financial performance
SRF total revenue: Rs. 1812.97 crore
Chem
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 first and only Company in the
country to have introduced the new-generation refrigerant,
HFC 134a, based on in-house technology. We have also
SRF Chemicals Business
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 fi
finance and accounts department and this is reviewed and
reported on a monthly basis.
micals and Polymer Business
Polymer Business
Chemicals Business
(Fluorochemicals, Chloromethanes,
Fluorospecialities) follows...
introduced a number of new products in the Fluorospecialities
space in the last five
fi years based on in-house R&D. Today, we
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
fited from reduction in energy
costs due to captive generation of power.
29 Sustainability Report 2008-09
The revenue increase has been achieved despite the business (All figures in Rs. crore)

having been under pressure due to complete phase-out of

the Ozone-depleting substance, Chlorofluorocarbons
fl (CFCs) 22.5%

under Montreal protocol, by 31st July 2008.

31.5%
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
84.3%
SRF group has paid 100% dividend for the year 2008-09.

*
SRF group as a whole.

direct economic benefit

Employee Wages Number of Jobs Created
(All figures
fi in Rs. crore)

indirect economic benefit

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

30
economic performance indicators
(All figures in Rs. crore) (All figures
fi in Rs. crore)

contribution to the national exchequer

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

investment on infrastructure
(All figures in Rs. crore) (All figures
fi in Rs. lakh)

SRF Chemicals Business 31 Sustainability Report 2008-09

 our
environment
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 many areas of human endeavor.
SRF seeks to balaance society
society’ss 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.
management approach
A healthy Environment Management is the key driver of any
Chemical Industry. At SRF Chemicals Business, Management
is committed to find innovative ways of reducing pollutants
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.
Board of Directors
Director (Environment & Safety)
CEO ( Chemicals Business)
Head of the Works
Functional Head including
Process, Engineerirng, EHS, etc.
HEAD (EHS)
Manager (EHS)
34
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.
Responsible for maintaining
EHS Management System in
day-to-day operations at the
unit level.
Manager (EHS)
 environment health & safety management
a value system
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.

the holistic EHS model

Sustainable Business

Clean & Green Social

Environment Acclaim

Safe & E N V I RO N ME NT
Global
Healthy Competitiveness
People HEALTH & S A F E T Y

Focus on Systems Focus on Design Focus on People Environment Protection

* Emergency Response Plan
* Resource Conservation

Clean Technology (OHSAS-18001,ISO-14001) Skill Development Incident Analysis

Three Tier EHS Management Hazop PPE’s Management Emergency Response team

Focus on 5S Operational Safety Health Monitoring Water Conservation

HIRA & A/I Evaluation EHS Training Audit, Inspection and Evaluation Energy Conservation

Management Robust IMS Self Assessment Bench Review Emergency

Structure Systems Marking Mechanism Management

Legal Compliance Framework – Major Accident Hazard (MAH) Unit

Commitment from Top Management

SRF Chemicals Business 35 Sustainability Report 2008-09

Key Raw Material C
Consumption
onsumption
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 - Non Destructive Testing

Products like chlorine, hydrogen fl
fluoride, hydrochloric acid,
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
- Scrubbing System
- Remote leak detection system/ Sensors.
- Training to the employees & Contract workers.
- Regular monitoring of work area & ambient environment.
Product Packaging
Majority of company’s products are delivered in reusable
packaging like cylinders, tonners, tankers and ISO containers.

eco diagram
Into the atmosphere
Well within prescribed
government norms

Raw materials Products

Cl2, MeOH, NaOH CH2Cl2, CHCl3, CCl4
H2S2O7, H2SO4, HF, R22/23, R 134a
CaF2, TCE TFA, PFBA, PBFB
TCAC, Benzonitrile,
KF, FB

Engergy Hazardous Wastes

Coal, Mustard
Spent oil
Husk, HSD, LSHS
Plastics Barrels
RSEB Electricity
Ground Water

Into the water

Water discharged outside
premises - 0 KL/Year

36
Expenditure on Environment Management Program
SRF is committed to providing fi
financial resources for environment improvement programs. Investments in some of the specifi
fic
environment improvement projects undertaken in 2007-08 and 2008-09 are as follows:

Project Area (2007-08) Expenditure Project Area (2008-09) Expenditure

(Rs. lakhs) (Rs. lakhs)
Environment Management Programs on 88.3 Environment Management Programs on 90.3
energy conservation & water conservation energy conservation, water conservation,
noise reduction and improvement in work
area environment

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
(All units in KWH)
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 to frequent power failures and high cost. Power failures not only
initiatives have been taken to achieve energy sustainability for cause production loss but have a potential to cause environmental
Chemicals Business. damage due to sudden disruption in process.

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
G sets). These power sources were prone
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.

SRF Chemicals Business 37 Sustainability Report 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
fi boiler
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.

Use of Renewable Energy

energy conservation
In addition to the coal-based boilers, a boiler using
biomass (mustard husk) has been installed to produce
programme
Greening the business processes is one of the key initiatives to
steam for captive use. This has not only saved on fossil
reduce natural resource consumption. The Energy Conservation
fuel consumption but also provided a cleaner environment
program has been given an impetus since 2006-07, when the
by consuming agriculture waste (mustard husk) in an eco-
Company adopted a multi-dimensional approach:
friendly manner. The use of husk has saved coal, thereby
1. Engaging two external agencies Forbes Marshal and
reducing carbon dioxide and sulphur dioxide generation
TERI (Tata Energy and Research Institute) to assess and
from coal. Husk is procured from the surrounding villages,
identify the avenues for Thermal and Electrical saving in
within a radius if 50-kilometers. With the increase in
different processes.
husk consumption, the earnings of the local community is
2. Conducting Internal Audits with SRF’s internal technical
increasing every year.
and shop fl
floor personnel.

Certain exercises were carried out on optimizing the power

consumption in utilities and steam consumption in various unit
operations. Based on external findings and company’s internal
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.

38
2007-08
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
fi in HFC Instrument Air Compressor
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
fl was optimized to meet the requirement
with one compressor and two pumps in place of earlier
two compressors & two pumps.
SRF Chemicals Business
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.
39 Sustainability Report 2008-09
 2008-09
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
fi boiler, high-pressure steam is generated.
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
result of energy conservation programme
40
compressor stoppage time increased to save power.
5. In CPP, raw water pump had 60 m3/hr fl
flow against the
constant requirement of 35 m3/hr. The pump impeller
was trimmed to match the required fl
flow, which resulted
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 fl
flow as per seasonal requirement.
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
fication was horizontally deployed to cell-2.
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.

water conservation & replenishment

The Company has adopted two focus areas: and replenishment of water. Areas and processes were
• Conservation identified
fi inside the premises for water conservation and
• Replenishment rain water harvesting.

The SRF Chemicals Business plant is located in Bhiwadi Since the total area of the plant was not sufficient to
region of Rajasthan state. This location is classified
fi as Red replenish a large amount of water equal to water withdrawal
(exploited) Zone due to the low levels of ground water from the ground, the company undertook water harvesting
by Central Ground Water Authority. After successful & replenishment in nearby villages under Company’s
commissioning of the Captive Thermal Power Plant in Natural Resource Management project. These initiatives
2006-07 there was a quantum increase in the demand for witnessed tremendous support from management,
water thereby creating a thrust and need for conservation 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 fi
filter, softner 2007-08 60
and Side stream filters in DM plant.
2 Installation of on-line Silica monitoring system to reduce the boiler blow down. 2007-08 6
3 Modifi
fication and upgradation in the chemical treatment programme to operate 2008-09 20
cooling tower at 9 COC against the earlier 6 COC. This has reduced the cooling
tower blow down by 30%.
4 Utilization of the reject water from ultra filtration system into cooling tower as make up 2008-09 23
water.

SRF Chemicals Business 41 Sustainability Report 2008-09

 water replenishment (outside the premises)

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 flow off. In the catchment area of the earthen
check dams, where land is extremely undulated, terracing,
land leveling and field
fi Bunding is done to make these
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)

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
fi that there was a rise in water table
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.

42
effluent water Quality of Treated Water used for Horticulture

There are two types of effluent

fl water generated in the Plants:
Plant Effl
fluent and Domestic Effl
fluent.

Treatment of Plant Effl

fluent (Effl
fluent Treatment Plant)
Plant effluent
fl includes process effl
fluent & utility effl
fluent.
The process effl
fluent comes from different plants, where, after
scrubbing and absorbing HF vapors, water goes to the Effluent
fl
Treatment Plant (ETP). There it is treated with milk of lime to
remove acidity and fl
fluoride. After treatment, part of this water
is recycled for scrubbing HF vapors. The remaining water is
sent to the lagoon where effluent
fl from other utilities is mixed
and water is used in horticulture. This water is also used for
fire water makeup.
fi

Domestic Effl
fluent Treatment (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.
controlling air pollution
Air pollution control measures including controlling emission
zero discharge levels and monitoring ambient air quality have helped improve
the work area environment.
The Company uses all the treated effluent
Air Pollution: Sources and Treatment
(Plant & Domestic) inside the premises in
There are two sources of air pollutants from the plant: hazardous
horticulture. No water is discharged outside chemicals in various plants and suspended particles (dust) in
the factory boundary limits, making the Captive power Plant.

SRF Chemicals Business a ‘Zero Discharge In Chemical plant hazardous vapors are emanated at the time
Complex’. of opening the equipment for maintenance, fi
filling of the tankers
and sampling of the chemicals. Hydrofluoric
fl acid, Hydrochloric
acid vapors and Chlorine could be the main air pollutants.
The HF vapors are taken care of by being sucked through the

SRF Chemicals Business 43 Sustainability Report 2008-09

Central Absorption System (CAS), where they get scrubbed
and absorbed in water. The liquid effluent
fl goes for treatment in
the Effl
fluent Treatment Plant and after treatment this water is
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 fi
final product is converted into
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 filling is provided with hood and suction system to scrub
the hazardous vapours and control environmental pollution.
The fi
final emission from all stacks is monitored and analyzed
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
44
Electrostatic Precipitator
Electrostatic Precipitators (ESPs) have been installed in the
Thermal Power Plant. Installed between the boiler and fi
final stack,
ESPs eliminate the suspended particulate matter from the boiler
flue gases, due to electrostatic action. Three (one additional field
as against the design requirement of two fi
fields) fields are provided
to enhance the separation of dust. Effective operation of ESPs has
resulted in achieving an SPM level in the flue gases, within the
consented limit of 50 Mg/M3.
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,
fl which
is separated from the liquid effluent
fl and dried in the sludge bed.
In HF manufacturing, Fluorspar/Calcium fl
fluoride is the key raw
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 fluoride value in the sludge. Any sludge generated is
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.
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
fill site at Udaipur. In an effort to
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.
fi
Waste generation
Note: Increase in cut barrels quantity is mainly due to augmentation in production
capacity.
By-product Disposal
Closed system for Fly Ash conveying and filling
fi : 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 fly ash was installed, thereby eliminating the possibility
of fly ash getting into the atmosphere during transferring from ESP
to silo. In 2008-09 SRF got into a contract with a cement factory
in the vicinity to supply fly
fl ash in closed tankers. This has resulted
in safe and environment friendly transportation and disposal of the
SRF Chemicals Business 45
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
fi soil conservation activities
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.
Fly Ash. 23387 M Tons of dry fl
fly ash was transferred to the cement
plant without having to send any quantity for landfill.
fi
Gypsum: Gypsum is one of the by-products generated during
manufacturing of the Hydrofl
fluoric acid. It is being sold to various
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.
Sustainability Report 2008-09
initiatives to meet climate change challenges
Ozone Depleting Substances ODS phase out (in M Tons)

(ODS) and Green House

Gases (GHG)
The fluorocarbon industry is in a state of flux. The
chlorofl
fluorocarbons (CFC-11 and -12), were found to be
Ozone Depleting Substances (ODS), and have been phased out
under the Montreal Protocol. Another very popular refrigerant,
hydrochlorofluorocarbon-22
fl (HCFC-22), also an ODS, is
scheduled for phase out by 2030. The cutback in production will For phasing out Chloro-fluorocarbons
fl (CFCs) as per
commence from 2013. A by-product of HCFC-22, HCFC-23, commitments under the Montreal Protocol, the Chemicals
was found to be a potent greenhouse gas (‘GHG’), and is being Business received financial
fi assistance from the Government.
actively targeted under the Kyoto Protocol. The most effective
replacement of CFC-12 is a fl
fluoro-refrigerant HFC 134a (hydro 2006-07 2007-08 2008-09
fluorocarbon), whose phase-out has already been scheduled in Financial assistance 11.98 25.49 11.89
Europe under the European Union’s f-gas regulations, since it, from the government
too, is a GHG. (Rs. crore)

In this environment of strict regulation, the fl

fluorocarbons
industry finds majors and bit players alike struggling to maintain
their footing. The best room and car refrigeration technology CDM project: GHG reduction
available today is built around HFCs and their blends (R404a,
SRF is among the few companies in India who are major
407c, 410a) whose patents are scheduled to expire over the next
beneficiaries
fi of the CDM project. The initiative of incinerating
two years (between 2009 and 2011) in different geographies. This
the global warming gas R-23 has earned SRF ‘Carbon Credits’.
opens up opportunities for a restructuring within the industry
as some players position themselves for the impending change Incineration of GHG R-23 (M Tons)
better than others. At the same time, this shift introduces into
India, new fluoro-refrigerants that substitute HCFC-22 with
HFC blends where global players have a significant
fi edge, which
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:
Note: R-23 incineration eligible for GHG emission reduction

46
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
G emission despite increase in production volume
due to added capacities in CMS, HF & FS Plant. This is achieved
due to increased use of Biomass.
Note: CO2 emission factor taken from 2006 IPCC Guidelines for National
Greenhouse Gas
Direct and Indirect CO2 Generation (M Tons)
Note: CO2 baseline database for the Indian power sector western grid has been
considered 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.
SRF Chemicals Business
CO2 generarion v/s destruction (Million M Tons)
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
fl Treatment
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
fied as a part of the Integrated Management
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 fi
fines or sanctions were imposed
on the Chemicals Business on account of any environmental issue.
47 Sustainability Report 2008-09
product responsibility 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
Management Apprroach QCDS (Quality, Cost, Delivvery, Safety and Service) whi
hich
ch is
The Organisation is committed towards health and safety reviewed by the Business Leaadership Team.
of the customers//end-users. The Management takess the
responsibility for thee product till it reaches the customerss/end
/end-
Customer Health and Safet
etyy
users. The Compan
ny works to ensure proper communiccation
Following steps are be
bein
ingg tak
ken by the SRF Che
hemica
cals
lss Business
with customers on Health & Safety issues and has adopted
to ensuree cu
ust
stom
omer Heaalth
ltth an
nd Sa
Safe
fety:
various methods of communication with the suppliers, deealers
and customers of th
he product. • Alll relevvan
A ant infoorm
rmat
atioon is pprovide
ded
d with the product
packaging.
k
• Tra
rain
iniing programm
mmess ffoor
or suppplliers’ and end-custom
omers.
s.
Responsibility
• Mater
erria
iall Saafe
fety
etyy D
Dat
ata Sheet ((MSDS)) is ppr
prov
ovid
i ed
d with all
T e CEO
Th CEO & P
Pres
Presid
esid
ideen
ent iis rres
ent espo
es pons
ponsib
ns ibl
ible
ib
ble
l fo
for product
d t manageme
g ent.
t A
t.
prod
pr oduc
uccts
ts MSDS contaains informat
ts. atio
ion reega
garding nature
team
team com
ompr
pris
pr ising Heeads of various Divisions and
d offi
ffic
ficer
erss en
en
ensure
of the product
ctt, its effecct on th
thee peopple and environment,
the implementation
n of policy and ppla
lann ag
agrreed.
re
safe han
ndl
dlin
ing of the prod
in roduct, sttor
orage and transportation
meeth
hods,
od
d and saf
afee di
dispoosal method.
Man
Manageement Sys
ystem • Safety no
norm
rms have bee
een established for the storage and
SR
RF Ch
Chemicals Busiiness is certifi
fied for In
Inte
tegr
g ated Manageemen
entt tran
tr ansp
s ortation of variou
us products. Proper implementation
System (IMS) by Bureau Ver
erit
itas
a , India. The IMS
MS iincclu
lude
d s
de is monitorred to ensure compliance.
ISO-
ISO-90
9001
01, IS
ISO-
O-14
140001, OHSAS-180
8001
01,, SA
A-8
-8000 an
nd th
he SR
SRF
• Durrin
ing transportation, all required safety gadgets are
Manage
geme
m nt Wayy. In
n add
ddit
itio
ionn to the
h above,, th
thee Co
Comp
m an
ny has
provided by the Compan
ny.
beco
become
me a ssig
igna
natory of Re
R sponsible Caare (RC
RC)) companiees and
• Certifi
fied training to drivers transporting hazardous
RC guidelines have been madee ppar
a t of its Management Syysttem
em.
material is conducted evvery Quarter.
• In 2007-08 & 2008-09, more than 200 drivers got certified
fi
Goal
Go alss and
d Perf
rfor
rf orm
ormance by a competent externaal agency.
Thee Co
C mpany endeaavors to proviide consistent quality prod
duct to
• An Emergency Respon
nse team with an action plan has
its consumers and acccord
ds it top priority. Our Specialty prooducts
been established to tacckle any transport related incident
are supplied too worrld leaders in Pharma and Agro industries,
outside the plant premisses.
haviing stringent noorms of vendor selection and our seleection
as reliable vendors is a testimony of our Product Responsiibility.
In most of these inteeractions, senior management gets invvolved

48
Life Cycle of Producct: Healt
H th and Environment Co
oncerns The Company has made provisions to check and ensure validation
n
Majority of refrig
iggerants are inert in nature and pose no significant
fi of product before launch
hing the commercial product.
risk
i k to hu
huma
man
n he
health & safety. Refrigerants are asphyxiant
and
d re
repl
p ac
pl a e on
nly oxyge
genn in tthe
he atmosphere. Life off different
M rketin
Ma ng Co
Comm
mmun
unic
icat
attio
ions
ns
refr
re frigerants varriess fr
from
om 12 years to 100 years. Duriing iits
ts lif
lifee
The Company takes account of all applicable rules and
d
cycle, it normallly does not decomposee an
andd ke
keepps its baasic nature
regu
re gulations and various volunt
ntar
aryy co
code
dess wh
whil
ile ch
halk
lking out its
intact. While reefrigerants are comparatively safe for th
he human
marketing plan. In its maarketing communication, the companyy
health and safetty, it has great potential to damage envvironment,
takes care to not only exxplain the good features of the productt,
which has prom
mpted the phasing out of these gases.
but also gives equal impportance to adverse effects on human
n
health, safety and environment, if any.
Product Inform
mation and Labeling
The product infformation is given in form of the Material Safety
Compliance
Data Sheet (MS
SDS). Emergency Response guide 20004 is being
The Company
p y has estaablished a process
p for monitoringg alll
used
d for
f decidin
d iding the
th codes
d and
d llabels
b l on product
d t pacckaging
k gi g as
applicable rules and regu
ulations pertaining to provision and usee
per the requirem
ments of different countries/ region.
of products and services.

Product labelingg is done as per national/international reegulations. • During 2007-08 & 2008-09, there were no cases of non-
Transport emerrgency cards are provided with all domestic/ compliance with an
ny of the applicable laws
international coonsignments. The Chemicals Businesss complies • No monetary fines were imposed on account of any non-
with following statutory requirements, pertaining to product: compliance.

• Gas Cylind
der Rules (amended in 1993, 2004)
REACH Compliance
• The Man
nufacture, Storage and Import of Hazardous Company is exporting some products to European Union
n.
Chemicalss (Amendment) Rules, 2000 Under REACH complliance Pre Registration of all thee
• Standards of Weight & Measurement Act, 19766 substances exported to EU have been completed in 2008- 099.
• Central Exxcise Act Top Management & Strategic Planning Group involved in
n

• The Ozoone Depleting Substances (Regulation and identifi

fication of Consulltant for representing SRF Chemicalss

C
Control)
l) Rules,
l 2000 business as “Only
Only Reprresentative
esentative”. SRF has completed pre-
registration with the helpp of competent ‘Only Representative” too
• The Staticc and Mobile Pressure Vessels (Unfi
fireed) Rules,
support REACH initiativve. With the successful pre-registration
n
including amendment Rules
Company will continue to export pre-registered products to EU
U
• The Factoories Act (as amended till 2001) till registration window period. REACH registration process willl
continue through the com
ming years.

SRF Chemicals Business 49 Sustainability Report 2008-09

 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 reflect 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 invited
him to be a perrmanent employee in the filling
fi station..
In recoognizing his aptitude, SRF gave him thee post of technician in 1991, where he worked in different sections of
the filliing station with increased responsibilityy, handling corrosive and toxic chemicaals. SRF provided him with on-
the-job training including proper handling of hazardous chemicals, compputer operations, etc.
Recoognizing his thirst for knowledge, dedication to the company, and impeccable safety records, the company
promoted him to the
thhe post of Junior Engineer in the year 2008.
2008
 nurturing talent
Since its inception Chemmicals Business hhas
as oown
wned its legacy of SRF group to inculcate and nurture
talent. Company has givven lot of impetus in fr f am
min
ingg po
policies for development of the people by
providing training, job rootation, freedom to work, delegationn att ddififfe
f rent levels of the organisation
and empowerment towarrds taking better decisions. This has shoown enco cour
urag
aging results in terms of
retaining talent and expeerienced people, who form the backbonne of the companny.

in recognition of his effort...

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 confidence 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.

Manpower Strength Age-wise Employees

Region-wise Employees Employee Turnover

52
 employee cohesiveness - ‘bonding together’
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 reflected in the fun,
frenzy and festivity during the events.

Salary Structure of Employees

ensuring fairness and Being an equal opportunity employer, SRF’s employee salary
transparency structure is determined on the basis of the job value. For officers,
fi
job value is determined through a process of job evaluation based
on well established Hay methodology. For others, job value takes
Transparency is one of the key features of the SRF Policies. The
into account the qualification,
fi nature and quality of experience and
company endeavors to make the entire staff aware of different
individual competencies as assessed through the Selection Process
policies and its proper implementation. Strict internal and
and the Performance Management System.
external audits ensure compliance with all applicable rules and
regulations. In case of deviations (if any) suitable corrective
Benefit
fi Plan Obligations
measures are taken to eliminate the repetition.
The Company has various benefits fi such as Provident Fund,
Superannuation Fund, Employees’ State Insurance Corporation,
Employee Salaries
provided to employees. In addition, the employees are entitled
SRF does not have an Employee Union; therefore employees of
to Gratuity after serving the organization for at least 5 years.
Chemicals Business are not covered under collective bargaining.
The management, however, looks after its employees and gives
Appraisal and Career Development
them a fair deal in terms of salaries and wages and the various
The Company has a well-laid Employee Appraisal System
statutory and non-statutory welfare benefits. fi Employees are
for officers, staff and workers. Employees’ development
governed by various policies including group medical insurance
and increments are decided on the basis of the Appraisal.
policy, leave travel allowance policy, loan facilities, loan subsidy
For officers and staff, the system is more participatory and
scheme etc. Each year, the salaries are revised, taking into
development oriented. In the system, feedback is taken
account the rise in cost of living, salaries in the market, and
from the employee and the person Incharge, for assessing
long-term sustainability.
the performance of the employee during the year. Plans for
career development are based on potential, opportunities
and feedback to ascertain career aspirartions.

SRF Chemicals Business 53 Sustainability Report 2008-09

Employee Grievance Redressal and Communication
There 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 intervals
for 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
ficant Operational Changes Affecting Service Conditions
No operational change, which affects employees’ service
conditions, 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
ficant change to come into effect.
Safety, Health and Welfare Committees
All 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,
find solutions and action their work related problems. This is
a powerful way of tapping the employee potential and keeping
them engaged in improvement programmes.
No Discrimination at the Work place
The policy of the company is to ensure that there is no
discrimination on basis of caste, creed, religion, gender, Colour,
political affi
filiation or age, in hiring, training, compensation,
promotion or transfer of employees.
54
Freedom of Association
The Company respects the freedom of expression and
association without any direct or indirect impediment or
negative consequences for any employee.
Human Rights
SRF Chemicals Business follows the provisions of SA-8000
standard and ensures compliance of human rights provisions as
per 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 is
ensured by regular interaction with them. Contractors engaged
in various jobs are also scrutinized for their performance on
human rights policy.
Prohibition of Child and Forced Labour
Child labour/young workers below the age of 18 years are not
permitted 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,
fi with extensive experience in operating
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
fi and skill sets.
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 fi
fines were imposed on the Business
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 fixed etc are given to all the employees.
- Attendance and salary records are maintained as per the
statutory requirements.
- Wages to the contarct labourers are paid as per state
government’s notifi
fication No-40/36-3-06-7/04 dated
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
fi fighting and first aid is being periodically
given to employees and records to this effect maintained.
- Drinking water and medical facilities in the company’s
premises are provided.
SRF Chemicals Business
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 findings related to overtime, unplanned absence
and resolution of red book issues.
training and development
CB is focused on development of people and organizational
capability. This is refl
flected in its Business Policy. The company
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
fied through Development
Dialogue, Performance Management System and action plans are
made to execute identified
fi training. Based on the needs identifi
fied,
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 fit by EHS dept. Standard modules
have been developed for EHS training at different levels.
Specific
fi training programs are organized for energy conservation
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.
55 Sustainability Report 2008-09
Following are few topics covered under training to Management Training Manhours

Staff & Non Management Staff.

Energy Communication First Aid Training

Conservation Skill
Leadership Responsible Care FMEA Concept
OHSAS Safety Workshop
18001 - 2007 & Management in on HIRA &
Behavioral Safety Industry & Fire Environmental
Safety Aspect/Impact Training Manhours Per Person
TQM Basic HAZOP Managerial
Course Effectiveness

Extensive training programmes were conducted on various

topics as per needs identified.
fi Continual improvement on
training man-hours depicts systematic efforts towards training
and development.

Training for Contract Workers: A Unique System

Training Subject (in per cent)
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
fi
refresher training is imparted to contract workers. Training Module
for Contract Employees Highlights

Training Expenses Per Employee (Rs. Lakh)

• 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

56
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 fi
filters down right from the top, as is
reflected
fl in the statements below.

IIn Chemical Business, Safety has a special signifi

ficance, in fact an overwhelming signifi
ficance, because of the nature
of our business. I don’t have to re emphasize the strong role of safety in every thing we do and think. However,
theere is never enough that we can do with regard to Safety – we can only do more and more. I would continue to
urge all of you, especially, the new members of CB family to please adopt Safety first and foremost as a basic thought
urg
process in everything we do. We still have some way to go to reach our cherished goal of Zero Safety Incidents. L
Let
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
oth
thers around them.Safety is a value for us and not a priority because priorities change but Values don’t. We
mu
ust encourage the philosophy of “Safe Production” where Safety & Productivity go hand in hand.

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
fl in the way in which wee do
our jobs. As I reiterate the signifi
ficance and commitment towards safety in our organization, I must emphasizee
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)

SRF Chemicals Business 57 Sustainability Report 2008-09

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 fl
floor is
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 fl
floor employees.
Key Improvement & Benefits
fi from EHS Meetings
• Improvement in use of PPE’s by strengthening the
Administrative safety..
• More focus on implementation of Work Permit system at
shop fl
floor level.
• 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 fi
fighting competition
• 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
fi & Risk Assessment (HIRA) was modifi
fied to address the human aspect in hazards & risk.
HIRA of various activities got reviewed and updated. This was done involving shop floor employees and Plant Supervisor. This has
improved the understanding of hazard identification
fi and its control to minimize the risk at workplace. Bureau Veritas (India) has
audited the OHSAS-18001: 2007 version in 2008-09 and upgraded the certificate
fi accordingly.

58
key initiatives under Safety Risk Management
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

fied to minimize downtime and improve the work environment.

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
flow of acid from the pump disrupting
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.
In the first half of 2007-08, an extensive study was
undertaken; involving literature study & discussions with
suppliers & fi
finally, a horizontal-mechanically-sealed-
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.

hazop & what if of HFC & FSP behavioral safety

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 fi
finished during the year.
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.

SRF Chemicals Business 59 Sustainability Report 2008-09

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 Accident

In 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 per
million 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 million
man hours worked)
Severity rate gone up because of increased man days lost in
project-related accidents.
First Aid Injuries
Continual improvement in reduction of First Aid injury due to
various EHS initiatives over the previous three years.
Near Miss
To reduce injuries, various initiatives have been taken to
maximize identifi
fication and reporting of near miss.

60
occupational health
Personal Monitoring

Chlorine and Hydrofluoric

fl Acid are two main hazardous chemicals used in the premises. These chemicals are used
in almost all the plants. As a part of health & hygiene program personal monitoring has been started for Chlorine &
Hydrofl
fluoric Acid. A person working the plant puts personal sampler on his shirt for eight hours. At the end of the
shift data are captured from the personal monitor to analyze whether exposure remains under TWA / STEL limit or
not. This has provided confi
fidence to the shop floor employees and helped in improving work area environment.

Occupational Health Centre (OHC) Medical Examination

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, Periodic Medical Checkup: Highlights
neutralizers and medicines are stocked for providing fi
first aid
• Comprehensive health check-up which covers the
treatment for any kind of chemical exposure at site.
following tests:
• General Physical examination, Blood & Urine test, Blood
A fully equipped First Aid centre is available in the factory
urea, S Bilirubin (T), SGOT, SGPT, S Alkaline Phosphate,
premises. The centre is manned round the clock with a trained
S Calcium, ECG, X-ray, etc.
and experienced male nurse. An experienced medical doctor
• Periodic medical check-up for Canteen workers: once in
with more than 20 years of experience is associated with the
4 months
company. All company and contract workers visit the First Aid
• Eye tests for employees engaged in Fork Lift operation,
Centre for any Occupational Health or medical problems. The
company transportation
company has tie-ups with not only the local hospital but also
• Audiometric tests for the employees working in high noise
with reputed hospitals in Delhi.
areas like the compressor house, turbine, boiler, etc.

SRF Chemicals Business 61 Sustainability Report 2008-09

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 findings with recommendations for further improvement. A follow-up audit was conducted
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:

Integrated Management System (IMS) Audit various safety systems and functioning of safety equipment.
Audit and inspection frequencies have been decided according to
IMS audit is done once every six months at two levels, internally
criticality of the item and activities.
and externally by Bureau Veritas (India). Audit observations and
non-confirmances
fi (if any) are recorded and properly addressed Statutory Compliance
for continual improvement of Management System.
Statutory compliance is monitored by the EHS Department and
Internal Safety Audits and Inspection a monthly report is sent to Director (Environment & Safety)
and the President & CEO.
Regular safety audit and inspections are done internally to test
the adequecy of the system and verify the implementation of

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.

62
locally-based suppliers
SRF has identifi
fied ‘local suppliers’ as those located within
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 fi
filled and packaged in small
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
SRF Chemicals Business
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 fi
filling the fly ash. These
tankers are closed type & specially designed to fi
fill the fly ash
with no dust nuisance. This has helped in improving the work
environment and environment friendly transportation of fl
fly ash.
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.
63 Sustainability Report 2008-09
 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 the incredible change over
hi hither
his hith rtto uncultivable
lti bl lland.
d “Th
Three years ago mostt off my land
l d waass
uncultivvable due to the lack of water and uneevenneess
ss of th
thee te
terrrain.
There was no means to capture rainwate
tteer, and it caarr
rrie
ied va
ied valu
luab
able
le
soil withh it, further denuding thee lan
andd.. I sstr
trrug
u gl
gled ttoo ma
make
ke end
nds
d meet,
and even providing food for
foor my fam
amililly wa
was ch
was chal
halllenging.
g My el
eldder son has
always been good at hi
his st
stud
udiie
ies an
ies andd secu
cure
redd verry good marks in his 10th
standard.
d d HeHe w
wan
annteed to goo fo
f r fu
for f h studies,
further d but given the
h inccom
ome off our
fami
fa
ami
mily
ly,, his
hi ed
eduucation was a luxury to us – one we couldn’t aff
ffor
ordd.

This year I sent him to a hostel for furrther studies in science. I can afford
to now. This dream has com
me true because of SRF’s
NRM project.
project SRF helped us to level our undulated land and rainwater
harvesting so I can finally cultivate my land. Today, I grow vegetables
and fruit like chilies, tomatoes, oranges, lemons and guavas. I just can’t believee
this transformation and the prosperrity it has brought to my family.
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.
fi The company has structured
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
66
sense of confidence
fi to the stakeholders & strengthens the
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
fi and take feedback.
review mechanism
A Steering committee, which comprises the Chief Executive
Offi
fice (CEO), Head of Works, Head of Human Resources, the
CSR team and representatives from partner NGOs, reviews
quarterly, the implementation of the social development
initiatives. Performance against targets is reviewed through
monthly updates.
 SRF’s commitment to
inclusive growth
adoption of the CII code of conduct on
affirmative action
Initiatives towards Inclusive Growth
Tailoring/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
fi assistance
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
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.
SRF Chemicals Business
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 fi
field and the rest
half for project review. The United Nations’ Solution Exchange
has documented our NRM Project as a case study.
enabling dimensions
B
ano- 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
67 Sustainability Report 2008-09
vocational skills and training
SRF provides voccationall tr
trai
aini
ning as
as pa
p rt of their com mmunity development program in
Rajasthan. SRF F’s three vocationall tra
rain
inin
in ingg ce
in c ntres, through partner NGOs provide
basic education, vocational training toward startiting
ngg tthe
heeir own business, offers placement
services for emplooyment in local businesses. SRF partticullarl rlyy fo
rl focu
c se
cu ses on marginalized
groups: women, meo-muslims, scheduled castes and triibes.

towards self-sufficiency

T
ahira, 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 finish 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.

SRF-SARD Project so far has supported 3 Vocational Training Of the 76 women enrolled in 2007-08, 10 were placed in nearby
Centres. In all, 125 women have benefited
fi from learning factories, 12 started their own work and 14 were mainstreamed into
tailoring and cutting skills for earning their livelihood and for regular study. 30 continued learning at their respective centres.
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 fills
fi
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
Enrollment of adolescent girls in Vocational Centre
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.

68
primary education
SRF’s continuual focus has be
SRF’ beeen to im
impr
proove educcat
atiion
ional status in primary schools in thee
nearby local coommuunt ntiies.
ie The he pr
progr
g am ha
has successfu
fully improved enrolment and retentionn
of governmenentt pr
en prim
im
mar
aryy sc
schhool children, reduced the number of school drop-outs andd
providded remeddia
iall support through quality educationn in the government primary schools.

promise of a future

O
f 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.

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 fi
five more villages in 2008-
09 and currently supports fi
five Remedial centers in nearby villages of Khizuriwas, Bibipur, Ladiya, Tapukara & Jhiwana villages with
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 Jhiwana, BanBan, Boys: 92 Jhiwana, BanBan, Boys: 116 Jhiwana, Hingla ki
Hingla ki Dhani Hingla ki Dhani hani (Khizuriwas),
Girls: 86 (Khizuriwas), Girls:79 (Khizuriwas), Girls:124 Bibipur, Ladiya
Bibipur, Ram Bibipur, Ram
Total:166 Singh ki Dhani Total:171 Singh ki Dhani Total:240
(Tapukara), Ladiya (Tapukara),Ladiya

SRF Chemicals Business 69 Sustainability Report 2008-09

Child-centered pedagogic approaches have led to improved
Pre and Post evaluation (No of Children)
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
• Infrastructure support in the form of sheds for children’s
students. The project has succeeded in mainstreaming
activities, water-tanks, out-door play-swings, toilet, clean
about 46 children in 2008 to government primary schools
drinking water, and other facilities have been provided to
after acquiring age/grade acceptable learning levels at their
enhance the overall educational experience of children
respective bridge schools.
• Supplementing teachers to maintain teacher-student ratio
and providing training to improve their teaching skills,
Emphasis on co-curricular activities such as annual sports meet,
improve curriculum design and delivery. Capacity building
cultural activities and bal-melas for bridge, remedial & govt.
of teachers in child-centered pedagogy and development
school children have helped in nurturing their talent, enhancing
of learning materials is a regular activity. All the recruited
creativity and making education a more joyful and interesting
teachers go through mandatory trainings during their
experience for them. Awards and token gifts to participating
induction period. Teachers have also been exposed to 32
children keep their morale high and retain interest in various
days of trainings by SARD, SRC - Jaipur and other agencies.
activities of the school.
Exposure visits to other educational institutes outside the
district and the state are frequently organized to observe good
Adoption of Government Primary School
practices and expand the world view of engaged teachers.
In order to bring about holistic improvements in the school
Feed back after the visits from the teachers has been very
education system, SRF Chemicals Business adopted a
encouraging. Teachers feel highly motivated to replicate some
Government primary school at village Ban-Ban. The main
of the observed good practices in their respective schools.
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.

70
Learning level outcomes of evaluation (average marks obtained Many girls after completing class V are unable to continue their
by class) studies due to lack of easy access to upper primary government
schools and their restricted mobility to the nearby villages. As
Class 1: parents have become more open to their daughters’ education,
Class I Apr.’08 Sept’08 Jan’09 the project now provides for teachers in selected schools in close
Maths 27 41.41 70.33 co-ordination with the district education authorities for the
Hindi 0 62.31 71.7 benefit
fi of the students.

English 0 52.69 80.5

PTCs now take decisions regarding major and minor repairs to be
undertaken in schools, raise issues of concern for interface meetings

Regular enrolment drives for dropout and irregular students in with government agencies and address issues of attendance and

close coordination with local schools and their managements irregularity among the participating children. Regular informal

have assisted in bringing children back to schools. visits of teachers to community have also helped in ensuring their
interest and participation in school activities. SRF employees also

The Project has succeeded in reviving parental participation in provide resource support in their capacity development exercises.

its various villages through regular Parent Teachers Committee

(PTC) meetings. These meetings have emerged as major Meeting with government offi
ficials and networking with other

platforms for the parents to communicate their needs and resource organizations have helped in building congenial relations

exchange ideas for schools to perform better. Parents and and eliciting the required support in time of need. State Resource

teachers together assess various requirements and take decisions Center, Jaipur for instance has donated 128 books, mostly pictorial

for allocating resources for need-based infrastructural and other for the library in Ban-Ban Remedial School that has been adopted

support. The introduction of Urdu classes for girls completing by SRF. Support of government officials
fi is evident in various

the primary classes is a case in point. activities and programs undertaken in schools.

SRF Chemicals Business 71 Sustainability Report 2008-09

health
The focus of the healthh intervenentition
onss ha
h s been on building awareness for protection against
HIV/AIDS and organizzing health camps ffor or vvis
ision impairm
ment and physical disability in the
local community througgh health camps for children, and bbloood donations. SRF’s HIV/AIDS
policy assures non-discrrimination of employees on account of hhis is/h
/her real or perceived HIV
status, besides providingg treatment, counseling, and psychologgical suppo port
rt.. Th
The company has a
well articulated HIV/AIIDS Policy at workplace.

the life after

P
K. 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.”

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.
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.

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.
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.

72
women’s empowerment
em owerment
SRF Chemicals Business is committed to women empowerment by facilitating financial
prosperity and wealth in the region within which it operates. SRF has launched various micro-
finance 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.

‘I have the power’

F
ormation 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 benefit 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.”

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
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.

SRF Chemicals Business 73 Sustainability Report 2008-09

improving livelihoods
INRM project was startedd for SSus ustainable Development of Local Commuunities
under the Clean Developm ment Mechhan anis
ism
m (CDM). This project is aim med at
environment conservation, improving water an andd so
soil resources, maintaaiining i
ecological balance and providding livelihood options for 6,0000 po
poor
or ffamilies in villages
near the company’s
p y productio
p on facility
f y in Tehsil Tijara,
j , Alwar (Raja
( jast
j stha
han)n).
)

community-corporate partnership

W
hen SRF viewed Milkhapur for the first 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…”

Integrated Natural Resource Management Average Cost of Paals Construction

Small Medium Large
INRM, started as a part of Sustainable Development Project
2006-07 26,600 67,642 152,845
under the Clean Development Mechanism (CDM) and is aimed
2007-08 21,462 68,641 162,988
at environment conservation, improving water and soil resources,
2008-09 47,414 62,852 156,498
maintaining ecological balance and livelihood improvement of
Average Cost 31,825 66,379 157,444
6,000 poor families in villages near the company’s production
facility in Tehsil Tijara, Alwar (Rajasthan).
Community groups were actively involved in the construction
of these Paals. Mobilizing tractors, labour and making payments
Rainwater Harvesting Infrastructure
was largely done by the respective User Groups and WC in
64 paals have been constructed in 2007-08 and 2008-09 taking
different villages.
the cumulative figures to 104 paals. The farmers’ average
contribution was between 11 and 13 per cent. In small paals,
Field Bunding and land leveling
community contribution ranged between 18 and 20 per cent
The project continued land leveling and terracing activities to
where as in large paals it was between 8 and 10 per cent.
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.

74
 2006-07 2008-09 2008-09 Cumulative plantations
Land Leveling
94 150 95 339 In villages near SRF facilities, more than 120,000 saplings were
(Hectare)
planted over the last 3 years. Following is the status of the plant
survival:
Number of Loose Stone Check Dams (LSCD) constructed
Plants Survived Plants Survived Cumulative
2006-07 2008-09 2008-09 Cumulative from those from those Survival
LSCDs 273 225 86 584 planted in planted in (31st March,
2006-07 & 2008-09 2009)
2007-08
At places with steep slopes water drains very speedily and Fodder 26,879 11,980 38,879
erodes the soil with itself. In these areas, LSCD have been Fruit 26,700 09,765 35,465
constructed as under. Total 53,579 21,745 74,344

Impact Challenges Faced

With a catchment area of 7065 Ha, water holding capacity of 26 • Mechanization of agriculture activities and careless
cu mtr has been set up in various Paali. ploughing damage roots which cause slow death of plants
Catchment Area Submergence Water Storage which is not possible to monitor.
in (Ha) Area in (Ha) Capacity (cu mtr) • Members are mostly small farmers and not willing to take
7,065 260 2,613,698 risk, they are more concerned about food grains & regular
crops cultivation than planting fruit trees.
agricultural interventions • Mortality in fruit plants due to shadowing by mustard &
• Besides rainwater harvesting and land leveling, focus has
bajra crops.
been on afforestation interventions - seed treatment, soil
treatment and maintaining appropriate spacing.
• Local seeds used in mustard produced excellent results coverage
with 25% improved yield.
• Mix crops with Bajra tilli, Ground nuts also gave No of districts: 1
encouraging results. Blocks: 2 (Tijara and Kishangarh bas)
Villages: 33
Families impacted: 3,413

Families 2006-07 and 2008-09 Cumulative

2007-08
Direct 1,449 409 1,758
Indirect 1,234 321 1,655
Total 2,683 730 3,413

SRF Chemicals Business 75 Sustainability Report 2008-09

 governance,
commitments and
engagement
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
fi to investors, customers,
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
fluent or pollution problems;
• 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;
76
• Details of any joint venture or collaboration agreement;
• ficant labour problems and their proposed solutions;
Signifi
• Any signifi
ficant development in the sphere of human
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
 Board of Directors

Board Committees

Remuneration Shareholders’ Investors’ Committees of Directors

Audit Committees
Committees Grievance Committees Financial Resources

Corporate Leadership Team (CLT)

Business Leadership Team (BLT)

Unit Leadership Team (ULT)

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
fi of shareholders
and stakeholders.
In the organization, the chair of highest governance body is also
an Executive Officer.
fi sheet and profit
The various board committees (Audit Committee,
Shareholders’ Investors’ Grievance Committee, Committee of
Directors – Financial Resources, Remuneration Committee,
Provident Fund/Superannuation/ Gratuity Committee,
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
fi website – www.srf.com.
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
fi & loss account, declaration of final dividend
on shares, etc., are approved by the shareholders in the General
Body meeting. Remuneration of Directors is governed by the
Companies Act. Specific
fi remuneration for Executive Directors is
determined by the shareholders at the general meeting within the
limits stipulated by the Companies Act.

SRF Chemicals Business 77 Sustainability Report 2008-09

Oversight, Implementation and Audit of Economic,
Environmental, Social and Related Policies
The various Board committees of the Company approve the
different policies related to fi
finance, occupational health and
safety and social contribution. The Internal Audit teams from the
fi audit the individual units for the implementation
corporate office
of financial and legal requirements. The Auditors present their
findings and recommendations for improvements in the system. The
fi
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 fiduciary obligations towards
SRF. The details are available at the SRF official
fi website – www.
srf.com.
Monetary value of significant
fi fines and total number of
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.
78
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,
fi Chief Executive
Offi
ficer, Vice Chairman.
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 or Name of Awarding / Rating / Year Dimension (s)

Rating or Certification
fi Certifying Organization

SRF among 50 best performing Stocks S&P ESG India Index 2009 Env/ Eco/ Soc
CII ITC Sustainability Award – CII ITC Centre for Sustainable 2008 Env/ Eco/ Soc
Commendation for Strong Commitment Development
Offi
ficer’s Cross of Merit to Chairman Federal Republic of Germany 2008 Eco/ Soc
Hyundai Award for Quality Excellence Hyundai 2008 Eco
NABL Certifi
fication for QA Lab National Accreditation Board for 2008 Eco/ Env
Testing and Calibration Laboratories
SRF among 50 best performing Stocks S&P ESG India Index 2008 Env/ Eco/ Soc
Finalist of Golden Peacock Environment Institute of Director 2008 Env
Management Award

memberships and affiliations

1. CII Membership 5. Member of District Crisis Group
2. National Safety Council 6. ASSOCHAM Membership
3. Member of India Chemical Council (ICC) 7. Bhiwadi Manufacturing Association
4. Member of Local Crisis Group

SRF Chemicals Business 79 Sustainability Report 2008-09

80
SRF Chemicals Business 81 Sustainability Report 2008-09
 GRI Report Index

G3 2007 Reference/ G3 2007 Reference/ G3 2007 Reference/

Page No. Page No. Page No.
Strategy and Analysis EC1 30 Social Performance Indicators
1.1 8-9 EC2 20, 30, 46 Management 66
EC3 53 Approach (LA, HR
1.2 18
and SO)
Organizational Profile
fi EC4 46
LA1 to LA2; LA13 52
2.1 10 to 12 EC5 55
LA3 to LA4; LA9; 53
2.2 14 EC6 63 LA14
2.3 to 2.8 10 to 12 EC7 54 LA5; 54
2.9 22 EC8 31 HR1; HR3;
EC9 30 HR5 to HR7;
2.10 79
HR9
Report Parameters Environmental Performance Indicators
LA6 58
3.1 to 3.4; 6 Management 34
Approach LA7 60
3.6 to 3.10
EN1 to EN2; 36 LA8 61, 72
3.5 15, 18
EN26 to EN27 LA10; HR8 56
3.11 22
EN3 to EN4; EN27 37 LA11 to LA12; 55, 56
3.12 82
EN5 to EN7 38-40 HR2; HR4
3.13 80
EN8 to EN9 41 SO1 67 to 75
Governance, Commitments and
EN10 43 SO2 to SO8 78
Engagement
EN11 to EN13 45 Product Responsibility
4.1; 4.11 76
EN16 to EN17 47 Management 48
4.2 to 4.5 77
Approach
4.6; 4.7, 4.9; 4.10; 78 EN18 to EN19 46
PR1 to PR9 48, 49
4.12 EN20 44
4.8 11, 78 EN21 43
4.13 79 EN22 44
4.14 to 4.17 15, 16 EN23; 47
Economic Performance Indicators EN28 to EN29
Management 28 EN30 37
Approach
7YVK\JLKVU-:*HWWYV]LKWHWLY