OPERATIONS MANAGEMENT

CIA-3

SUSTAINABILITY REPORT on TATA CHEMICALS

By

SANJAY NANDAKUMAR

REGISTER NUMBER
2128225

Under the Guidance of

PROF. SIMON K JOHN

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
JANUARY 2022
Introduction:

Tata Chemicals Limited began its long and passionate journey to serve society through science
backin 1993. A leader in the production of synthetic soda ash in the country, it became the
world’s second largest soda ash manufacturer.

Tata Chemicals became the national leader in the branded salt category covering more than 7.5
Crore households. It is also a national leader in the branded pulses category and launched the
first indigenous nano tech water purifier, Swach. TCL along with its subsidiary company, Rallis
India Limited, has got significant share in crop nutrition and crop protection areas.

A part of over US$100 Billion Tata Group, Tata Chemicals Limited is a global company with
interests in businesses that focus on LIFE: Living, Industry and Farm Essentials. In line with its
mission statement, “Serving Society through Science”, Tata Chemicals is applying its technical
know-how in science to create sustainable products.
Living Essentials

Tata Chemicals is the pioneer and market leader in India’s branded iodised salt segment. With the
introduction of an innovative, low-cost, nanotechnology based water purifier; TCL is providing
affordable, safe drinking water to the masses. TCL unveiled India’s first national brand of pulses
in 2010, extending its portfolio from salt to other food essentials.

Industry Essentials

The Company provides key ingredients to some of the world’s largest manufacturers of glass,
detergents and other industrial products. Tata Chemicals is the world’s second largest producer of
soda ash with operations in Asia, Europe, Africa and North America.

Farm Essentials

The Company has carved a niche in India as a crop nutrients provider. It is a leading manufacturer
of Urea and phosphate fertilizers and through its subsidiaries Rallis India and Metahelix Life
Sciences it has built a strong position in the crop protection and seeds business respectively. TCL
is also a pioneer in the customized fertilizer segment and a leading supplier of farm services and
specialty products.

The Tata Chemicals Innovation Centre is home to world-class R&D capabilities in the emerging
areas of nanotechnology and biotechnology. The Company’s Centre for Agri-Solutions and
Technology provides advice on farming solutions and crop nutrition practices. The Company’s
joint venture with Temasek Life Sciences Laboratory Ltd. Singapore (JOiL) is to develop jatropha
seedlings to enable bio diesel capability.

Emerging Trends in Sustainability:

We are committed to the Tata Group philosophy of giving back to society what we earn; there is
a conscious effort to ensure the means of sustaining our leadership in all aspects of business, in an
innovative way, to return better value to the stakeholders and thus Sustainability remains at the
core of our business strategies. For us Sustainability encompasses stakeholder engagement to meet
their expectations, environmental stewardship, creating economic value, promoting human rights
and building social capital.

As Sustainability is an integral part of business strategy, all efforts have been made to deploy the
strategy innovatively and this has resulted in improved revenues and profits. Right from the
Company’s growth strategies, mergers and acquisitions, to various operational excellence
initiatives at the site level and safety, health, human resource development at the individual level
are contributing to the revenue and profit growth. Cement production from solid waste and fly ash
utilisation at Mithapur, sale of phosphorgypsum at Haldia, introduction of customised fertilisers
are some of the examples which are adding to the revenues. This has been further strengthened by
our Innovation Centre products like Tata Swach Water Purifier. Nutritional Solutions business has
set up a manufacturing plant at Chennai for Fructo-Oligo-Sachharide (FOS) production aimed at
improving gut health.

The first step of TCL’s strategy planning process includes analysing political, economic, social,
technological, legal and environmental changes that may impact TCL business and this includes
summarising inputs from various stakeholder interactions and engagement. This is an input to the
TCL strategy, ensuring that Sustainability is the basic foundation of TCL’s business strategy. TCL
is a diverse organisation and its business lines are organised around LIFE i.e., Living Industry and
Farm Essentials. We make a constant effort to understand Sustainability aspects of the various
stages of our value chain and increase stakeholder engagement to identify opportunities that meet
‘essential needs’ relating to economic, environmental and social aspects.

Sustainable Manufacturing:

Sustainability urges organizations to outline choices regarding natural, social, and human effects
as long as possible, instead of on momentary gains, for example, next quarter’s income report. It
impacts them to consider a greater number of components than just the quick benefit or loss.
Progressively, organizations have given sustainability objectives, for example, an obligation to
zero-waste packaging by a specific year or to lessen overall emissions by a specific rate.

These organizations can accomplish their sustainable requirements by cutting emissions, bringing
down their energy utilization, sourcing items from fair-trade organizations, and guaranteeing their
actual waste is discarded appropriately and with as little of a carbon impression as could be
expected under the circumstances.

TATA Chemicals ensures the best use of raw materials, in-house produced energy and canal water
to preserve underground reservoirs in order to reduce the effect of the production process on the
environment. Since production is the company's core feature, the company has maintained a
special emphasis on this. The initiatives undertaken can broadly be classified under the following
verticals:
1) Urea production – benchmark amongst Indian fertiliser industries for specific energy and water
consumption. Continued zero dependency on ground water at Mithapur and use of RO and thermal
desalination to further reduce dependence on fresh water. Action plan are chalked out at Babrala
and Mithapur to meet the PAT targets.

2) Achieved reach of 3,000 rural households for Tata Swach which does not require electricity or
running water for its operations.

3) Water footprint and Sustainability assessment for use of shared water resources. Rain water
harvesting projects at all 3 sites. Continued watershed development and management programmes
at Mithapur.

4) Salt pans at Mithapur, limestone mining at Ranavav, Urea plant at Babrala, DAP/ NPK fertilisers
at Haldia are zero process solid waste facility. Valid permissions for reutilising hazardous waste
are granted by CPCB. Mithapur Soda Ash effluent solids consumption in cement has reached the
level of 73.39%. Lowest SO2 emission from sulphuric acid plants.

5) The company has taken green packaging initiatives and have saved 7,902 MT CO2 e under this
initiatives in FY 13-14. Introduction of German designed Lupa Bulkers for transportation of soda
ash.

As a responsible business, TATA Chemicals firmly believes that this is the right time to set foot
on the pedal and scale up its sustainable growth programmes. The company is going forward in
its path with this commitment to make the company and its value chain more sustainable.
Relevance of Sustainability

Sustainability underpins that mission by endeavoring to improve the natural wellbeing and
personal satisfaction of our campus and community. Sustainability is significant for some reasons,
including:

 Environmental Quality – To have healthy communities, we need clean air, common

assets, and a nontoxic environment.
 Growth – we require more resources. Manageability expects to utilize our resources
effectively to profit our campus and community.
 Healthcare – Sustainability and medical care are unpredictably related

Since the quality of our current circumstance influences general wellbeing, for instance, numerous
medical problems are straightforwardly identified with air and water quality.

Other Air Emissions

Their production of soda ash contributes to air discharges, to be specific Oxides of Nitrogen (NOx),
Sulphur Dioxide (SO2), and Particulate Matter. Through compelling execution of observing
instruments, production cycles, and utilization of cleaner energies, they have effectively kept up
their emission rates beneath the administrative standards. Their soda ash plant is one of the
significant air emission sources as they utilize hazardous chemicals yet, are furnished with
appropriate emission control equipment to capture emissions during the preparing operations.

Waste Management

TATA Chemicals focused on consistently improve their Waste management practices at their
production plant. Their Plants are vertically incorporated and complete a wide reach of production
exercises inside the Plant. TATA Chemicals follows a three-pronged way to deal with waste
management:

 Waste Minimization
 Recovery and Recycle
 Development and adoption of Eco-friendly waste disposal method.

Waste management has become the part of plant operation and disposal of various types of wastes
have been done as per the guidelines documented in ISO system and as per prevailing waste
management rules. The company manages its hazardous wastes by proper collection, handling,
storage and disposal to authorised TSDF (Treatment, Storage & Disposal Facility) or registered
recyclers to ensure they are disposed off safely. Specific effluent generation has been reduced by
11.5% in last 7-years. All Plants dispose of waste consistently with working licenses and hazardous
waste authorizations. They lock-in with waste disposal facilities offices/water recyclers/concrete
organizations after due approval. According to their key drive to redirect hazardous wastes from
landfills also, incineration, various reusing alternatives have been investigated and actualized,
including Value-from Hazardous-Waste (VfHW) activity.
This was accomplished through co-processing of high calorific value hazardous waste at concrete
plants. Similarly, TML accomplished success with non-hazardous waste additionally; for example
– change of low worth chemical plastic packaging into fuel (agricultural application), bio-
machination and fertilizing the soil of bio-degradable canteen waste and fertilizing the soil of leaf-
litter.
Water & Effluent Management

Production plants and other subordinate units, particularly the furnace and other huge equipments,
require water to complete their activities. Guided by TML Environment Policy, the company
means to decrease its effect on water and persistently endeavors to improve its efficiencies. They
carry out particular water management improvements by following a three-pronged methodology
– Adoption of innovation or technology for effluent management; usage of preservation activities;
benchmarking and gaining from peers. They depend on water from surface water and groundwater
sources at the production plants. They place accentuation on decreasing their utilization of
freshwater (from streams and lakes, rainwater, groundwater, and metropolitan sources) since it is
the primary source of drinking water.

The fertiliser plant at Babrala is one of the world’s most energy efficient urea plants. At Mithapur,
alternative materials are used to conserve energy inclusive of maximisation of use of pet coke in
the boilers and anthracite coal in soda ash lime kiln. Wind Power generated is wheeled to state
electricity grid. Periodic water level and quality measurements are the part of Quality Assurance
System of Babrala. About 91% of water withdrawn is recycled back into the system or reused for
various purposes.

Root Zone Technology

Root zone treatment is executed for treating the wastewater utilizing “Vetiver” as a characteristic
route for profluent treatment at the plant. Vetiver (Chrysopogon zizanioides) of the Poaceae
family, local to India, commonly known as Khus, is an extreme, regular, non-intrusive plant with
a profound, penetrating fibrous root structure that grows up to 5 meters down. The fibrous mat of
vetiver roots has remarkable attributes to control contamination and prevent pollution.

Labor practices

The collective bargaining agreements covering equal pay, secure working conditions and freedom
of association, which are among the fundamental rights of workers, extend to many workers in the
automotive industry. Meanwhile, car firms can also operate in countries where worker rights are
not properly covered due to the multinational nature of the industry.
Efficient management and coordination of issues such as worker compensation and working
conditions can avoid disputes with employees that could lead to lengthy strike times that can delay
or shut down production, decrease income and increase operational risk. Automotive
manufacturers that manage employees in a manner that respects workers' rights can face higher
labour costs in the short term, but may be better placed to improve worker productivity to ensure
the long-term financial sustainability of their operations.

Challenges Faced

 Expanding awareness among customers and social cautiousness for climate cordial or
environment-friendly non-hazardous chemicals and expansion demand for more
chemicals.
 Compliance with new and current laws, rules, guidelines and government strategies with
respect to diminished GHG furthermore, different emissions and enviroment safety.
 Climate change
 Regulatory danger incorporates air contamination limits, product proficiency,
changing tax collection on materials, product naming and emission detailing
commitments.
 Change in actual atmosphere -, for example, change in precipitation and coming
about drought, or floods.
 Transition hazard dependent on 2-degree climate situation of low carbon economy.
 Increasing swelling and loan fees combined with quieted modern development.
 Intensifying rivalry with the competitors products.
 Under execution of the Company's dissemination channels and supply chain.
 Increase in input costs of crude materials and deficiency.

Managerial Implications:

Corporate Social Responsibility

TATA Chemicals is dedicated to supporting society through its social activities initiatives. The
Business claims that the local environment and culture as a direct party of interested parties. The
Company's CSR ventures three broad areas can be classified, namely the Culture, Creation,
development of skills and road safety. The Organization has set up the Board's CSR Committee
and has a properly accepted CSR strategy. The Committee on CSR during 2015-16, it met twice
to review the implementation of approved Projects, authorize the Annual Report of the CSR Annex
and to have guidance on social programs. Besides the CSR Committee's analysis, all CSR projects
each month are centrally checked and tracked at the corporate Niveau. Both CSR ventures are
audited by both internal and external auditors. Statutory compliance auditors as per the law and
CSR policy.

Sustainability development goals , which are adopted by the UN in September 2015, aims to realize
better international society by setting 17 goals in society , economy and environment to be worked
on by 2030 and make efforts for their solutions. The TATA group supports SDGs and will actively
take further decisions and responsibilities in goals that we can contribute in their achievement
through CSR activities

Our CSR initiatives are a part of global sustainable development goals (SDG). Specifically, we
address the following SDGs through our program – SDG 1: No poverty, SDG 2: Zero Hunger,
SDG 3: Good Health and Well-being, SDG 4: Quality Education, SDG 5: Gender Equality, SDG
6: Clean Water and Sanitation, SDG 7: Affordable and Clean Energy, SDG 10: Reduced
Inequality, SDG 13: Climate Action, SDG 14: Life Below Water, SDG 15: Life on Land, SDG 17:
Partnerships to achieve the Goal. These relate to poverty alleviation, food security, good health
and wellbeing, education, clean water & sanitation, Gender equality, reduced inequality,
sustainable energy, climate change, resource and Bio-diversity conservation.

Conclusion:
Tata Chemical’s sustainability initiatives are focussed at all possible stakeholders. These have been
widely acclaimed and awarded. In 2014, Tata Chemicals received an award for its 'Dharti Ko
Arpan' CSR initiative at the 6th edition of AIMA's Business Responsibility Summit. The company
has been recognised for its clear commitments to sustainability and its good environmental
management practices.
References:

 https://www.tatachemicals.com/Asia/News-room/Press-release/tata-chemicals-
promotes-sustainable-development-while-empowering-communities
 https://www.tatachemicals.com/upload/content_pdf/csr-policy-2020.pdf
 https://www.tatachemicals.com/Sustainability-@-TCL
 https://www.tatachemicals.com/News-room/Interviews/In-5-7-years,-our-business-
picture-will-be-very-different
 https://sustainability.tatachemicals.com/responsible-manufacturing/india/
Plagiarism Report: