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our sustainability approach SRF considers sustainability as a foundation to its business and is committed

our sustainability approach

SRF considers sustainability as a foundation to its business and is committed to excelling in the triple bottom line. It fifirmly 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 HIGHLIGHTS 23% increase in net revenue during 2008-09 32% growth in operating profit (PBIT)
2007-08&2008-09 HIGHLIGHTS 23% increase in net revenue during 2008-09 32% growth in operating profit (PBIT)
2007-08&2008-09 HIGHLIGHTS 23% increase in net revenue during 2008-09 32% growth in operating profit (PBIT)
2007-08&2008-09 HIGHLIGHTS 23% increase in net revenue during 2008-09 32% growth in operating profit (PBIT)
2007-08&2008-09 HIGHLIGHTS 23% increase in net revenue during 2008-09 32% growth in operating profit (PBIT)
2007-08&2008-09
HIGHLIGHTS
23% increase in net revenue during 2008-09
32% growth in operating profit (PBIT) duduringg 22008-0909
Increasese inn company emmmployee strtreength byby 10% in two years
in operating profit (PBIT) duduringg 22008-0909 Increasese inn company emmmployee strtreength byby 10% in two years
in operating profit (PBIT) duduringg 22008-0909 Increasese inn company emmmployee strtreength byby 10% in two years
About 1,360 famim lilies direcectlly covered under Community Development Programme in two years 7.9 Million
About 1,360 famim lilies direcectlly covered under Community Development Programme in two years 7.9 Million
About 1,360 famim lilies direcectlly covered under Community Development Programme in two years 7.9 Million
About 1,360 famim lilies direcectlly covered under Community Development Programme in two years 7.9 Million
About 1,360 famim lilies direcectlly covered under Community Development Programme in two years 7.9 Million
About 1,360 famim lilies direcectlly covered under Community Development
Programme in two years
7.9 Million M ToTonsns eequuivvala ent of CO 2 saved from being released into the atmosphere in two yyeaearrss
1.5 Million Cubic Meter rainwater harvested in two years
Nearly 90,000 saplings planted in two years
in two yyeaearrss 1.5 Million Cubic Meter rainwater harvested in two years Nearly 90,000 saplings planted
in two yyeaearrss 1.5 Million Cubic Meter rainwater harvested in two years Nearly 90,000 saplings planted
“We will make our nation proud by being the best at what we do.” about
“We will make our nation proud by being the best at what we do.” about

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

about the report SRF, as a business,, iss ccoommmmittitted towards excelling in triple bottottttottott m
about the report
SRF, as a business,, iss ccoommmmittitted towards excelling in triple bottottttottott m linei
, i.e e.
ecoconomnomicic, social and environmental performances. Theeee rrreport on EcEconomic
Performance is drawn from the Company’s AnAnnunununual Repoeport.rt. M/S Deloitte
Haskins & Sells, Chartered Accountants,tsts,ts, NeNeww Delhi (India), have auauddited
the accounts of the compmpany. Thehehe ComCompany publishes financialal report for the
SRF group as aa whowhole.le. WhWhile all other financial data indindicated in this report
pertaitainsns toto SRFSRFSRFSRFSRF Chhemicals Business, Dividendss tto shareholders are based on
ththethe SRF Company performance. Datata relating to Environment, Health &
Safety (EHS) is compiled fromom the EHS performance data maintained by the
organization. Sociala Development is reflective of the initiatives taken by SRF as
a part ofof itits Corporate Social Responsibility (CSR). The data & performance
indicator in this report pertains to the period of two consecutive years i.e. 1st
April, 2007 to 31st March, 2008 and 1st April 2008 to 31st March, 2009.
The reporting cycle would be bi-annual.
As set inin the maiden report published in 2006-07, while compiling this report
asas well, GRI-G3 guidelines have been followed and all relevant technical
protocols adhered to for reporting the core and additional indicators.
The report covers details about the Chemicals Business, which includes
Fluorochemicals and Fluorospeciality Chemicals Plant situated at Jhiwana,
Distt. Alwar, Rajasthan (India). The corporate office is located at Gurgaon
(Haryana) and the marketing offices at various locations in India.
The following persons can be contacted for questions regarding the report:
• Roop Salotra, President & CEO (salotra@srf.com)
• Aseem Mehrotra, VP & Business Head (aseem@srf.com)
• Rajeev Marwah, VP & Head of Works (Rajeev.Marwah@srf.com)
• H.S. Dua, AVP – HR & CSR (hsdua@srf.com)
• Alok Chandra, Chief Manager (EHS) (alok.chandra@srf.com)
higgghhhlliigghhttss 4444 mmmmmmeesssage ffrrom the Managing Director 8 about SRF 10 Chemicals BBusiness 12 our
higgghhhlliigghhttss 4444 mmmmmmeesssage ffrrom the Managing Director 8 about SRF 10 Chemicals BBusiness 12 our
higgghhhlliigghhttss 4444
mmmmmmeesssage ffrrom the Managing Director 8
about SRF 10
Chemicals BBusiness 12
our stakeholders 15
challenges and opportunities 18
management way 23
our sustainable business framework 25
governance, commitments and engagement 76
awards and honours 79
assurance statement 80
GRI indicators 82
M ESS A G E F R OO MM TT HH E M A N
M ESS A G E F R OO MM TT HH E M A N
M ESS A G E F R OO MM TT HH E M A N
M ESS A G E F R OO MM TT HH E M A N
M ESS A G E F R OO MM TT HH E M A N
M ESS A G E
F R OO MM
TT HH E
M A N A GIN G
DIRECT O R
Yet, wwee cocontinued the journey with stronger conviction than ever before
and spurred by ourur ccononfidence in the saying “When the going gets tough,
the tough get going”. The needd oof the hour was to match its extant ability
with adaptability to be able to garner growtwth.h. We seized the opportunity
to improve our internal efficiencies by making our syststememss and processes
lean using our TQM philosophy. Simultaneously, we renewed ouur fofocucus
in improving our cost competitiveness through enhanced productivity
and optimum resource utilization. Most importantly, we remained
focused on delivering value to our customers using innovation as the key
instrument. Put simply, we walked a tight and disciplined line to stayay
afloat. The strategy paid off. Despite slowdown in the global ececononoomomomy,
the Chemicals Business net revenue increased byy 2222.5.5.5%%% to RRRs.s.
594.57 crore and PBIT increased by 31.5% tto RsRs. 35353553.75 ccccrororere
Dear Stakeholders
Overall, the Chemicals Busineess perfrfororormance hahahahass bebeenenn eencncouoououraging
and it continues to mainntain its leeeadership ininn rrefefririgegeraraanntnt ggasaseseesese with about
40% market shahare. The Fluorospecececciiai lilityty BBususinininesess,s, wwhihihihhich is essentially
drivenn bby ourr R&D expertisissee in thhe aarereaa ofof flfluuorrrrrine chemistry, turned
arouound during thisis ppperioi d.d. TThehe ssuucu ceessss ooof R&D is therefore criticacall.
We believe tthahahat gogoinng foforwrwwararararardddd Fluoroosspeciality will provide SRRFF wwith
a cococommmpetitivive edeedge in thhee market. SRF’s R&D team in ththe CChemicals
Business is currenently activeveeelllyl involved in developoping technologies &
processes fofor phphararmama &&&& agro intermediates
Dear Stakeholders,
I am proud to share our journey of sustainabblele business during theeee
last two years. These years have beeeen a true test in various faacets of
business; especially our apppproach toward a triple bottom lininininne. This iss thehe
Compmpanany’y’ss second Sustainability Report based oon GGGGRI-G3G3 guiuidelines.
We have decided to publish the report evvereryy alternatate year.
EEEnvironment MMMaM nagement remaiins onne of the key priorities for the
Chemicalalalals Business. Thee CCompanany operates in an environment which
is rrrregulated by thee Montrealal and Kyoto Protocols. More recently, the
Companyy hahas adopteted the Reach Regulation due to the high export
contntent of sales tto the European Union. The company is also focused on
micro levvel issues related to water management & waste management.

SRF’s journey, while deeply rererewawarding, has been extremelely challenging as the compapanyny ffacacaca eed arguably one of the mmost turbulent global memeltltdodownwnwnwns ever witnessed. Like most otother corporates, SRF was hit hard by the economic slowdowown which began unfolding in September 2008 after a high grgrowth trajectory in the first half of the year. The demand ffor our goods declined and prices fell precipitously. The fluctuating exchange rate did not help the cause either. Clearly, it was a free fall for the market.

cause either. Clearly, it was a free fall for the market. During the last two years,

During the last two years, the revenue of the Chemicals Business declined due to an accelerated phase out of CFCs to meet deadlines under the Montreal Protocol. This has increased the focus on enhancing production of the new generation refrigerant HFC 134a which has continued as a substitute for CFCs. The technology & process of HFC 134a was developed in-house and SRF has the only manufacturing facility of HFC 134a in India. This refrigerant is used in automobiles, air conditioners, refrigerators & pharma industries. The company continues to incinerate HFC 23, a Green House Gas, as a commitment towards the Kyoto Protocol.

industries. The company continues to incinerate HFC 23, a Green House Gas, as a commitment towards
A SHI S H B H A R A T RR AA MM The Bhiwadi
A SHI S H B H A R A T RR AA MM The Bhiwadi
A SHI S H B H A R A T RR AA MM The Bhiwadi
A SHI S H B H A R A T RR AA MM The Bhiwadi
A SHI S H
B H A R A T
RR AA MM
The Bhiwadi region, whwhereerree ouourr Chemicalals Business Plant is situated,
comes under theee rereddd zozone with reregard to ground water availability. This has
provided SSSSSSRFRFRFRFRFRF withh the daunting task of limiting the water consnsumption.
ThThThThheee CoCoCoCompany has taken this challenge with great convici tion and started
various projects towards water conservationn & recycling/reuse within
the plant. The Chemicals Businessss bbecame a 'Zero Discharge Unit'
in 2006-07 and continues too bebe so till date. Internal projects were not
enough to replenish wawater baback to the ground and therefore the company
decided to inititiate a WWatershed Development Program for rainwater
haharvrvesestitit ngng in nnearby villages in the year 2006-07. Cumulatively the
wawatetershed projectt has harvesesteted over 1.5 million cubic meter of rainwater
in the past two years. This is more tht anan thehe totall cononsusumptitionon oof water
used in the plant operations of the Chemicals Business.
to the success of the organization. Our strong belief is that situations
are tempororary and institutions are permanent. We therefore did not
resort to any knee-jerk reaction of downsizing during the year. In
fact, drawing strength from our enduring value systems of trust,
dignity and respect for each other, we renewed our focus on people
development during the turbulent year.
In community development, we intensified our efforts to reach out
to the most disadvantaged of the poor in Tijara Tehsil of Alwar,
Rajasthan near our Chemicals Business Plant. The idea was to
improve their livelihood by harnessing under-utilized land and water
resources under Natural Resource Management (NRM)) prrogograrammmmee.
DuD ring theh pastt two years, thhousands of families have beenen positively
affected by our social development interventions.
The Company continues to be focused on energy optimization projects.
Various time bound projects were initiated in the last two years which
have paved the way for the business to achieve more than 5% saving
in the annual energy consumption. This has helped minimize CO 2
emissions in addition to saving valuable resources. In addition, the
Company has increased the use of renewable energy and used mustard
husk to produce low pressure steam for process usage. This has also
provided financial gains to local husk suppliers.
Further, we carried forward our commitment for providing quality
education to the underprivileged sections of the society under the
aegis of the SRF Foundation. The Company has adopted a
Government primary school at village Ban-Ban in close vicinity to
the factory to improve the minimum level of learning of children,
reduce drop-out rate of children from school and impart education
to the girl child.
Waste minimization through innovative ways has helped us in reducing
plastic waste going in landfill. This is achieved by replacing the plastic
barrels with bulk packaging (Lined tankers) for procurement of one
of the hazardous chemicals used in Fluorospeciality Plant.
HIV/AIDS continues to remain a cause of social concern.
The Company continued to strengthen its HIV/AIDS awareness
programs and campaign through its master trainers especially trained
to propagate HIV prevention through awareness programs.
Health and Safety remained at the top of our agenda and has now
become well entrenched parts of our value system. Despite the
challenging milieu, the Company has uplifted its Health & Safety
standards by laying more focus on Process Safety, Structural Safety,
Behavioral Safety and Emergency Preparedness as is reflected
through marked improvement in SRF’s external audit evaluation.
SRF has geared up its work towards inclusive growth with the
adoption of the CII code of conduct on affirmative action. During
the year various initiatives have been started including vocational
courses, scholarships, remedial centres to support the poor and needy
students from SC and ST categories.
SRF’s commitment towards sustainability was honored in the business
community with the prestigious CII-ITC Sustainability Award for
the year 2008. SRF Chemicals Business won the 'Commendation'
Certificate in the independent category.

I would like to conclude by expressing my sincere gratitude to all our stakeholders, including my colleagues at SRF, for their unmatched support in our journey towards maintaining a balanced triple bottom line. We will continue to conduct our business with impeccable values and ethics. I am sure that we will continue to build and excel SRF’s credibility as a professionally managed, sustainable Company with global ambitions and sound values.

We believe that employees are our strength and unarguably the key
We believe that employees are our strength and unarguably the key
Company with global ambitions and sound values. We believe that employees are our strength and unarguably
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into
Established in 1973 as a manufacturer of nylon tyre cord, SRF has since diversified into a multi-business entity engaged in the manufacturingng
of industrial intermediates. With head quarters in Gurgaon, India, the Company has a workforce of around 4,000 and has expanded its
operations beyond borders, into UAE, Thailand and South Africa. In India, the plants are spread over eight locations. Apart from the Technical
Textiles Business, which enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns.
The Company also enjoys a significant presence among the key domestic manufacturers of Polyester Films and Fluorospecialities. Buildidingng
on its in-house R&D facilities for Technical Textiles Business and Chemicals Business, the company strives to stay ahead in businnesess ththrororoough
innovation in operations and product development. Winner of the prestigious Deming Application Prize for its Tyre Coordd BBusususininininess, SRF
continues to redefine its work and corporate culture with TQM as the backbone of its Management Way.
a snapshot
- USD 400 million (Rs. 2,000 crore) multi-product, multi-business organization
- Market leader in Technical Textiles, Refrigerants, Engineering Plastics and InInddustrial Yarnsnsns
- Eight locations in India and one each in Dubai, South Africa andn TThhailand
- Exporting to over 60 countries
a global leader
a domestic leader
- Nylon 6 Tyre Cord FaFabric: 2n2n2n2n2nd largest producer
- Refrigerants: No. 1 in India (40% market share)
- Beltingg FaFabriics: 2ndndndndn llargest producer
- Tyre Cord: No. 1 in India (36% market share)
- Belting fabrics: No. 1 in India (60% market share)
- Fishnet Yarn: No. 1 in India (78% market share)
the only one
- The only company in India to have developed indigenous capability for manufacturing HFC 134a, a new generation Refrigerant
- The only tyre cord company outside Japan to have won the prestigious Deming Application prize
- The only company in India to have ventured into manufacturing Polyester Industrial Yarn fabric used in applications such as
Industrial Yarn fabric used in applications such as radial tyres and belting fabrics - One of

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

1100
1100
A SPIR A T I OOOOOO NNN 2222 000 222 0 “To achieeeeveeevee glglllobal leaeadership
A SPIR A T I OOOOOO NNN 2222 000 222 0 “To achieeeeveeevee glglllobal leaeadership
A SPIR A T I OOOOOO NNN 2222 000 222 0 “To achieeeeveeevee glglllobal leaeadership
A SPIR A T I OOOOOO NNN 2222 000 222 0 “To achieeeeveeevee glglllobal leaeadership
A SPIR A T I OOOOOO NNN
2222 000 222 0
“To achieeeeveeevee glglllobal leaeadership by continuously enhancing ororganizational andnd people capability, developing innovative products and
proccccccesesesseseses s ththat satisfy customers, and attaining chala lelenggining benchmarks in productivity.”
Technical Textile Business
Building on its dominant position in the
domestic market, SRF enjoys a signifificant
presence in the global market as well for
all the fof ur produducts under its TeTechninical
Textile Business - tyre cords, belting fabrics,
coated fabrics, and industrial yarns.
applications such as refrigeration and
air-conditioning, as a blowing agent
for insulating foam, as a propellant for
aerosols, in mobile air conditioning,, anandd as
a proppellaant inn memeteredd dose inhalers for
pharmaceutical companies.
Core Values & Principles
SRF has codifified the following
principles related to people and
work:
People Related
Its tyre cord fabrics are used as reinforcement
material for all categories of tyres – from
bicycles to heavy commercial vehicles.
The company’s Belting Fabrics are used as
reinforcement material for manufacturing
conveyor belts. Its coated fabrics fifind
applications as static and dynamic covers
SRF hhas also been taking responsible
initiatives under the guidelines of United
Nations Framework Convention on
Climate Change (UNFCCC) as a part of its
Clean Development Mechanism (CDM).
- Create a win-win with all
stakeholders
in various areas ranging from Agriculture to
Defense applications, and SRF’s industrial
- Lead by example
yarns with a market leadership of more
SRF entered into the Fluorospecialities
Business in 2003-04 as a natural progression
of its expertise in Fluorochemicals and its
strong knowledge of Florine chemistry. This
business is focused on addressing the need
for complex organo-flfluorine compounds.
than 50% are used in the manufacturing
- Self-discipline
of a wide range of products such as fifishnet,
- Participation by all
ropes, industrial sewing thread, narrow
- Continuing education for all
Work Related
industrial tapes, Velcro, shoe strings and
badminton raquet strings.
- Focus on quality, not short-term
Chemicals & Polymers Business
profifits
SRF’s Chemicals & Polymers Business
- ‘Market-in’, not ‘product-out’
includestheChemicalsandtheEngineering
- Be customer-oriented
Plastics Business. The Chemicals Business
- Work with facts and data
in turn comprises Fluorochemicals and
Equipped with fully integrated multi-
location facilities at Manali and Pantnagar,
the Engineering Plastic Business has the
capability to compound more than 150
grades of engineering plastics in Nylon 6,
Nylon 66 and PBT with consistent quality.
With the brand names of TUFNYL,
TUFBET and TUFPC the business caters
to the needs of different sectors like
automotive,electrical,telecom,engineering,
electronics and industrial sectors.
- Act on causes, not phenomena
Fluorospecialities Businesses. Company’s
- Be process-oriented
Refrigerant products are sold under the
Packaging Films Business
- Prioritize
brandname ‘FLORON’.

In the Fluorochemical space, SRF has grown to become the undisputed domestic market leader in its core product line of Refrigerants, while exporting two-thirds of its production to world-class international buyers spread across 60 countries. SRF’s refrigerants are used for a variety of industrial, commercial and household

The company’s Packaging Film Business produces PET fifilms, which are used in the packaging of food, cosmetics, personal and health care products. The focus of the business is to move up the value chain of packaging films and towards this end, it is a supplier of metallized fifilms and holographic fifilms apart from plain and chemically treated polyester fifilms.

apart from plain and chemically treated polyester fifilms. SRF Chemicals Business 11 Sustainability Report 2008-09

SRF Chemicals Business

11
11

Sustainability Report 2008-09

Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business
Chemicals Business
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
Chemicals Business 1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant
1989 1995 2004 2005 2006 Start-up year Hydroflfluoric Acid & Refrigerant Plant Chloromethanes
1989
1995
2004
2005
2006
Start-up year
Hydroflfluoric Acid &
Refrigerant Plant
Chloromethanes
Fluorospecialities
Thermal Oxidation Plant
Plant
Plant
Captive Power Plant
& HFC 134a Plant
Plant Plant Captive Power Plant & HFC 134a Plant Gases), Chloromethanes and Fluorospeciality products, which

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

Based on its strength in flfluorination chemistry, plant engineering, efficient plant operation and relationship with pharma and agro manufacturers, SRF identified manufacturing of flfluorospeciality chemicals as a key focus area.

Customer Orientation and Innovation

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

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

Strengths

• Proven

capability

in

commercialization’.

‘process

development

to

• Expertise in high pressure/temperature reactions,

reactions like flfluorination, chlorination, bromination,

etc., and handling of hazardous chemicals puts SRF

Chemicals Business in top league.

• Commitment and responsibility towards quality and on-

time delivery is SRF’s hallmark.

Factfifile

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

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

Location of Head Office

Block C, Sector 45, Gurgaon- 122001, Haryana

Country of operation

India

Nature of ownership of the company

Public Limited Company

Markets served

India, Asia, Europe, USA, Middle East

Customer base

Pharmaceuticals, agro chemicals, automobiles, refrigeration and air conditioning

Net sales (2007-08)

Rs. 485 crore

Net sales (2008-09)

Rs. 595 crore

Quantity of product sold in 2007-08

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

Quantity of product sold in 2008-09

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

Employees by countries / regions

India: 405 employees

1122
1122
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen
touching many aspects of our life Chemicals Business products touch our lives from the kitchen

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.

grain production, kitchenware, and building construction. Co mf o r t Ca r AC, Roo m

Comfort

kitchenware, and building construction. Co mf o r t Ca r AC, Roo m AC Gypsum

Car AC,

Room AC

Gypsum as raw material for Cement
Gypsum as
raw
material for
Cement

Building

Construction

as raw material for Cement B ui ld i ng Co n st r uctio n
as raw material for Cement B ui ld i ng Co n st r uctio n
Preservation of Food Refrigerator
Preservation
of Food
Refrigerator
i ng Co n st r uctio n Preservation of Food Refrigerator PIX Inhaler Pharma Intermediate
i ng Co n st r uctio n Preservation of Food Refrigerator PIX Inhaler Pharma Intermediate
PIX Inhaler Pharma Intermediate
PIX
Inhaler
Pharma
Intermediate

Non Stick

Kitchenware

Inhaler Pharma Intermediate N o n Stic k Kitc henw a re Raw m a teri

Raw material

for

PTEE (Teflon)

k Kitc henw a re Raw m a teri al fo r PT EE ( Te

Food Security

Cold Storage,

Food

transportation

cu r ity Col d St o r a ge , F oo d tr a

Life support

Agro products

from

Agro intermediate

pp o r t A gr o pr o du c ts f r o m

High grain

production

Medicines from

a te H i gh gr ai n pr o d uctio n M edi c

Health care

SRF Chemicals Business

13
13

Sustainability Report 2008-09

product profile Whether it is keeping your drink ice cool, providing you the comfort of
product profile Whether it is keeping your drink ice cool, providing you the comfort of
product profile Whether it is keeping your drink ice cool, providing you the comfort of
product profile Whether it is keeping your drink ice cool, providing you the comfort of
product profile Whether it is keeping your drink ice cool, providing you the comfort of
product profile
Whether it is keeping your drink ice cool, providing you the comfort of aiair-r-conditioning,
helping the world go green or helping your child breathe easy when asthma stririkekes,,
SRF is the company that makes products for a more comfortable world.
Chemicals Business
Fluorochemicals (FC)
Refrigerant Plants
- Floron 22: Refrigerant,
Low Temperature Solvent,
manufacture of Resins, PTFE.
- Floron 134a: Refrigerant, Blowing
agent, Aerosol.
Chloromethane Plant
- Methylene Dichloride: Solvent in
drugs, Cleaning agent
- Chloroform: Raw Material for
Refrigerant gases, Solvent, Lab
chemical
- Carbon Tetrachloride: Raw
Material for Refrigerant gases,
Solvent, Lab chemical, Flexible
foam, Chlorinated rubber,
Insecticide
Fluorospecialities (FS)
Fluorospeciality Plants
- Trifluoroacetic Acid (TFA)
- Penta Fluoro Benzoic Acid (PFBA)
- Para Bromo Fluoro Benzene
(PBFB)
- 2,3,5,6-Tetra fluorobenzyl Alcohol
(TFBAlc)
- Ethyl Difluoro Acetate (EDFA)
- Ethyl Trifluoro-aminocrotonate
(EAC)
Application: Pharma and Agro
inte rme d iate s
1144
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.
Responsibility and responsiveness to stakeholders is a theme that runs throughout our approach to sustainability.

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

Identification of

Development of

primary & secondary stakeholders.

stakeholder influence an d dependency matrix. uence and dependency matrix.

After the engagement, assessing the outcome including evaluation and result.

Conduct the engagement. Different approaches include communication, consultation, dialogue & partnership.After the engagement, assessing the outcome including evaluation and result.

Sharing the learning internally.

Prioritizing stakeholders that need to be interacted

with, on the basis of the developed matrix.Prioritizing stakeholders that need to be interacted Finalizing the approaches to be used for engagement process.

Finalizing the approaches

to be used for engagement process.on the basis of the developed matrix. Finalizing the approaches SRF Chemicals Business 15 Sustainability Report

SRF Chemicals Business

15
15

Sustainability Report 2008-09

shareholders government employees (Capital providers, Owners, Partners) Nature of engagement (Statutory bodies,
shareholders government employees (Capital providers, Owners, Partners) Nature of engagement (Statutory bodies,
shareholders government employees (Capital providers, Owners, Partners) Nature of engagement (Statutory bodies,
shareholders government employees (Capital providers, Owners, Partners) Nature of engagement (Statutory bodies,
shareholders government employees (Capital providers, Owners, Partners) Nature of engagement (Statutory bodies,
shareholders
government
employees
(Capital providers, Owners, Partners)
Nature of engagement
(Statutory bodies, policy makers &
regulators, revenue collectors, Pollution
Control Boards, Labour & Factory
(The key resource for sustainable growth)
Nature of engagement
- Annual General Meetings
Inspectors, etc.)
- Direct interaction with employees
- Written communication with the
Board
- Monthly and quarterly meetings
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
findings.
- Personal development and growth
- Occupational Health & Safety
SRF’s responses
The financial performance is declared
- Performance linked appraisals
& published in all leading newspapers.
These reports are also sent to SEBI.
The following are available on SRF
website www.srf.com:
SRF’s responses
All relevant information is given to
concerned statutory authorities in
advance and as and when required.
Regular meetings are held with
- Infrastructural development
- Bonding between old and new
employees.
SRF’s responses
- Investors queries
statutory bodies to understand any new
- Financial results
development on legal requirement.
- SRF v/s BSE
All fees, consents, licenses are obtained
- Regular training and development
to employees to enhance skills &
capabilities facilitates personal growth.
- Shareholding pattern
and renewed well in advance and as per
- Notification to Stock Exchange
schedule.
- Weekly share price
- Regular interaction with employees
through daily management meetings,
Area EHS meetings, Focus group
meeting, TIE groups, captures issues and
grievances and facilitates in redressal.
- Red book captures HR, hygiene,
personal and any other issues.
- Six monthly medical checkup of all
employees monitors their health.
- Medical health insurance to all
employees.
- Congenial relations between all
categories of employees.
1166
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers communities suppliers (The principal source of revenue & growth) (Communities around factory can be
customers
communities
suppliers
(The principal source of revenue & growth)
(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
- Customer feedback system
Nature of engagement
Nature of engagement
- Regular meetings with OEMs, dealers
and suppliers
- Interaction with villagers and
sarpanch
- Vendor development and evaluation
- Review of vendors’ & suppliers’ quality
- Interaction with end customers
- Customer camps
- Invitation to them to visit and join
factory functions
- Regular interaction with vendors
- Market survey to know customers’ need
- Interaction through NGOs
Issues and concerns
- Community development programmes
- Adequate returns on investments
Issues and concerns
- Continuity and growth of business
- Quality and EHS friendly products
and services
Issues and concerns
- Improvement in processes
- Availability of water for drinking and
farming
- Timely and secured payment
- Availability of the product
- Price
- Sanitation and hygienic conditions
SRF’s responses
- Product innovations
- Education for children
- On-time and safe delivery
- Regular visits to suppliers enhance and
transfers best practices.
- Customer confidence
- Environmental impact of existing
plant and future projects
- Easy-to-do business with
- Regular feedback helps improve
services and relationships.
- Sustainability of operations
SRF’s responses
- Treating them as partners.
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.
- Maintaining process parameters to
upkeep plant surroundings helps
minimize any hazardous impact.
- Water harvesting projects in the
nearby villages enhance the ground
water level.
- TQM practices ensure proper and in-
depth analysis of any problem or issue
related to Product and services.
- Providing direct/ indirect employment
to nearby villages engages the local
population productively and positively.
- Use of IT-enabled services and Supply
Chain Management to enhance
efficiency.
- Regular meetings with opinion makers
to take feedback and understand their
issues, helps in addressing discontent,
if any.
- ORACLE (ERP) is used to improve
various transactions taking place
inside or outside the organisation.
- Health checkups for the community
are conducted.
- Customer feedback serves as an
effective tool to improve product &
service quality.
- Awareness programmes on HIV/
AIDS are conducted for the
community, especially for truck &
tanker drivers.
for the community, especially for truck & tanker drivers. SRF Chemicals Business 17 Sustainability Report 2008-09

SRF Chemicals Business

17
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Sustainability Report 2008-09

process to identify challenges & opportunities SRF has strategic planning groups both at corporate and

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 defifines 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 identifification 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
2011-12
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
methodology P UR P O S E A S PIRA T I O N S 2020
2010-11 2009-10 2008-09
2010-11
2009-10
2008-09
2007-08
2007-08
Grow current businesses Improve returns from core businesses Build new businesses Build a high performing
Grow current businesses
Improve returns from
core businesses
Build new businesses
Build a high performing
organisation

BASE

YEAR

2006-07

a high performing organisation B A S E YEAR 2006-07 The following table represents a selection

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

Opportunities

Challenges

Financial and economic crises makes fifinancially distressed firms available at bargains.

Global economic crises may delay the growth engine.

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

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

FS: Requirement of flfluorinated intermediates in new agro and pharma molecules.

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

FS: India perceived to be a nation that protects Intellectual

Property, and therefore safe for sharing high technology.

1188
1188
risk management The objective of Company’s risk management framework is to identify potential events that
risk management The objective of Company’s risk management framework is to identify potential events that

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 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:

Strategic Risk

Countermeasure

Product obsolescence in Fluorochemicals.

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.

Very high cost or non-availability of fluorspar Fluorochemicals products.

for

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 countries as well.

from other

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

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.

Limited number of Fluorospeciality customers.

Create strategic relationships with customers. Enter into

contracts for product supply.

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 defifined delegation of power

and relies on a TQM system of control points, comprehensive

budgetary controls and review systems to monitor its operations.

In addition, internal audits verify compliance to defifined policies

& procedures.

SRF Chemicals Business

19
19

Sustainability Report 2008-09

Environment Management Social Risk & Control Environment management is dealt with at two levels. Being
Environment Management Social Risk & Control Environment management is dealt with at two levels. Being
Environment Management Social Risk & Control Environment management is dealt with at two levels. Being
Environment Management Social Risk & Control Environment management is dealt with at two levels. Being
Environment Management Social Risk & Control Environment management is dealt with at two levels. Being
Environment Management
Social Risk & Control
Environment management is dealt with at two levels.
Being a hazardous plant, social risk mitigation is always partt
Macro level issues such as global climate are taken care of
of the strategy and operations in SRF Chemicals BuBusisinenenessssssss.
at the strategic level to ensure smooth phase-out of GHG
The organization has a great concern for the sococietytyty iinnncncludiding
& ODS substances. Unit level issues are taken care by plant
employees, contract workers and the commmmunitity.y.y.y. TTTThe CCompapanyy
management team. A robust Environment Management System
communicates various hazards aandd the cccoononontrolss in plalace, wiiiiith
(EMS) is in place. Under EMS continual focus is being given
the community using varir oous engagagaggegegements.s. Utmosost carre iss being
towards identifying the environmental aspects, its impact on
taken to maintaia nn safe & hheaeeaealthy worork envivironmmennnt internally
the environment and putting adequate control to minimize/
as well asas eexternallyy ttoto have gogood relatioions wwitith thththhe surrounding
eliminate the pollutants. Regular auditing, identifification and
vivillagers & sosociety at laarge. Mannagemenent ttetetett am strives towards
implementation of Environment Management Programm paves
mamaaiintaining pepeaace and harmrmony inn thehehehehe neighborhood.
the way for protection of work area environmnment and hellps in
acachiieveving utmost care for ecologgyy and the enenenviironment.
Financial Risks
Business operationon nnecessariririllyl
iinvnvolves opportunities and ririsksks. Effective risk mmmmamm nagement iiss thereforee a key factor in safeguarding
aa cocompmpany’s valuee. The management of opportunititiees and risks at SRF isis an integrala ppart of the corporate governance system, not
merelyy tthhe task of one particular organizationonall unit. Key elemmentntss ofofofofofof the risk mmanagementt ssystem are planning, budgeting, review,
reporting and control processes.
ThThee
foollowowing
table
representss
aa
vviiew
on
thehe
fifififififinnananciial
risks
facing
the
Chemicals
Business
today,
and
our
planned
countermeasusurees:
Financial Risk
Countermeasure
More than 80% of Fluorochemicals sales are USD
denominated.
Corporate Treasury hedges transactions, protecting any change
between date of transaction and date of fund receipt. Conscious
call not to speculate on currency futures.
More than 40% of Fluorospeciality sales are USD or Euro
denominated. This is expected to go up substantially over the
next few years.
Attempting to denominate contracts in currency with a natural
hedge. Also, Corporate Treasury hedges transactions between
date of accrual and date of receipt.
Income from sale of Carbon Credits (incineration of R23) is
Euro denominated.
Enter into futures contracts to safeguard exchange rate for CER
income.
2020
goals and targets Goals and Targets (2007-08) Status Establish SRF as a market leader in
goals and targets Goals and Targets (2007-08) Status Establish SRF as a market leader in
goals and targets Goals and Targets (2007-08) Status Establish SRF as a market leader in
goals and targets Goals and Targets (2007-08) Status Establish SRF as a market leader in
goals and targets Goals and Targets (2007-08) Status Establish SRF as a market leader in
goals and targets
Goals and Targets (2007-08)
Status
Establish SRF as a market leader in India for the new
generation refrigerants by
- Moving towards becoming globally cost competitive
- R134a variable cost reduced.
- Strategically positioning & improving market reach of
R134a product
- Full production sold (major shares in OEMs)
Lay the foundation for exponential growth in
Fluorospecialities through
- Stabilizing production of current range of products
- Capacity of few FS product increased signifificantly.
- Yield of one of the FS products increased.
- Identi fication and development of new flfluorinated
intermediates for pharma and agro chemical industries
- New TFBAL Plant was mechanically completed during
the year.
Make SRF Chemical Business as an employer of choice by
- Employee turnover ratio improved by 7.5%.
- Acquiring, developing and retaining talent
Goals and Targets (2008-09)
Status
Move towards becoming a fluorine
chemicals major through
- Improving the viability of the Fluorospecialities Business
- Marked improvement in performance of Fluorospecialities
Business.
- Reduction in cost of conversion of current HFC 134a
- CoC of HFC 134a (stable run, fifixed input prices) has
been reduced.
- Strengthening domestic market leadership
- Signifi ficant increase in sales of HFC 134a.
Consolidate Bhiwadi operations by
- Enhancing EHS systems
- 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).
- Ef ficient & Effective Utility management
- Productive downtime on account of power & steam has been
reduced to almost half.
- Power generation from Turbine Generator (Coal) increased by
12%.
Build people and organizational capabilities through
- Standard Operating Procedures (SOPs) defi fined/improved
- 73% SOP were improved or introduced.
- Improvement in supervisor’s skill level
- 23% Improvement in measured skills through Supervisors
Skill Development Program.
in measured skills through Supervisors Skill Development Program. SRF Chemicals Business 21 Sustainability Report 2008-09

SRF Chemicals Business

21
21

Sustainability Report 2008-09

way forward Improving the way we measure progress can be an important leverage point in
way forward Improving the way we measure progress can be an important leverage point in

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:

- Penetrating international markets for existing products & identifying emerging products.

- Commercializing ‘products-under-development’ rapidly.

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 intensifified 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

Grow Refrigerant Business by:

- Scaling up market presence in New Generation Refrigerants

more such substitutes and blends. These alternatives will enable

Chemicals Business to move forward and start delivering products

that will fifill 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 Hydroflfluoric Acid, Chloromethanes and Fluorospeciality Plants.

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

2222
2222
We are committed to satisfying our customers of Fluorochemicals, Fluorospecialities, Chloromethanes and new products,
We are committed to satisfying our customers of Fluorochemicals, Fluorospecialities, Chloromethanes and new products,
We are committed to satisfying our customers of Fluorochemicals, Fluorospecialities, Chloromethanes and new products,

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.

us as a credible global player in Fluorine chemistry. Business Leadership Team (BLT) (Left to rig

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

CEO Champion (Faacilitator) H e a d of Wo rks Facilitators All Employees Daily Monthly
CEO
Champion
(Faacilitator)
H e a d of Wo rks
Facilitators
All Employees
Daily
Monthly
Quaterly
Annually

TIE: Total Involvement of Employees

- Employee groups – cross functional (own area, maintenance, utilities, safety)

- 40 TIE groups with 100% participation

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

- 20 min daily practice

-
-

Kaizen Week is celebrated every year

- Most machines at step 3 of autonomous maintenance

Total Productive maintenance has helped Chemicals Business in improving plant machinery with a focus on ‘Zero breakdowns’.

SRF Chemicals Business

23
23

Sustainability Report 2008-09

problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to
problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to
problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to
problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to
problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to
problem solving process: an effort towards process improvements SRF’s unique problem-solving process has grown to

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 certifified problem solvers.

In Chemicals Business total Certifified Problem Solvers are 25. The

advanced problem solving “PSP Silver” programme picked up momentum last year and the Company celebrated the fifirst ever company-wide PSP convention to recognize, motivate and deepen the problem solving efforts of teams, giving a further fifillip to TQM activities. Deep and rigorous application of TQM methods and tools have contributed to the bottom line of the Company

through quality and cost improvement as well as signifificantly raised the level of SRF’s own technology. To further raise the level

of TQM systems Chemicals Business has invited highly regarded

Japanese experts – Professor Kume and Dr. S Seta to the site. They have commended the good work done and confifirmed SRF’s

approach towards sustained capability building.

Gold Silver Blue (Officer & Supervisors) Blue (QCC) Level of Complexity Impact of Improvement
Gold
Silver
Blue (Officer
& Supervisors)
Blue (QCC)
Level of Complexity
Impact of Improvement

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 classifified 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 Sulfuric acid.

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

• Increased HF plant stream capacity by 25%.

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 certifified skills in problem solving, using a structured methodology and tools, to identify and complete themes emanating from annual plans.

Unique Three-Tier Certifification System

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

here. Problems are classifified on the level of complexity involved in the project as well as the business impact of solving the problem. At the basic level, a large number of problems are solved using

2424
2424
identification of key focus area Company endeavors to identify key areas which affects its triple
identification of key focus area Company endeavors to identify key areas which affects its triple
identification of key focus area Company endeavors to identify key areas which affects its triple
identification of key focus area Company endeavors to identify key areas which affects its triple
identification of key focus area Company endeavors to identify key areas which affects its triple
identification of key focus area Company endeavors to identify key areas which affects its triple

identification of key focus area

Company endeavors to identify key areas which affects its triple bottom line. Macro level issues are identifified by strategic planning

group, which scans the environment with reference to applicable multilateral environmental agreements, share their fifindings and

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

of respective plants and departments. During the year following key focus areas identifified 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

- Energy Conservation

- Strengthen the Bonding between new

and old employees

- Water Conservation

- Retaining skilled and experienced

 

- Replenishment of ground water to make SRF Chemicals Business water positive.

manpower

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

- Excelling the process safety

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

- 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

- Adoption of Integrated Management System including

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

- Integrated watershed development program in partnership

with NGOs.

- Adoption of Responsible Care Management system & having

Responsible Care logo.

- Target-based energy conservation programs to reduce

energy consumption

SRF Chemicals Business

25
25

- Target-based water conservation programs to reduce water

consumption.

- 35% plantation as against required 33%.

- Providing assistance to local administration, villagers,

nearby industries in mitigating industrial/local emergencies.

(e.g. fifire incidence, evacuation from well).

Sustainability Report 2008-09

our profit growth in challenging times The year 2008-09 presented SRF with an opportunity to
our profit growth in challenging times The year 2008-09 presented SRF with an opportunity to
our profit growth in challenging times The year 2008-09 presented SRF with an opportunity to
our profit growth in challenging times The year 2008-09 presented SRF with an opportunity to
our profit growth in challenging times The year 2008-09 presented SRF with an opportunity to
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
the leading supplier to major domestic manufacturers of cars and refrigerators. - Aseem Mehrotra, VP &
the leading supplier to major domestic manufacturers of cars and refrigerators. - Aseem Mehrotra, VP &
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT) SRF strives to achieve Economic Sustainability by working towards
32% growth in operating profit (PBIT)
SRF strives to achieve Economic Sustainability by working towards the strategic goals
enunciated in the Vision statement.
It deploys its skills to ensure that the product mix it offers matches the demand in markets
where it wishes to be present by developing long-term relationships with its customers and
providing lasting solutions in the Chemical Business.
by developing long-term relationships with its customers and providing lasting solutions in the Chemical Business.
by developing long-term relationships with its customers and providing lasting solutions in the Chemical Business.
management approach Policy A Progressive Management bel ieves in d eve lop ing system an

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 nancial 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 fifinancial reporting. A well established internal

audit system periodically reviews the controls and compliance

of laws and regulation, and the environment under which the

of laws and regulation, and the environment under which the internal control exits. Internal audit also

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 fifinancial 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 fifinancial and operating functions, which provide reasonable assurance that the set objectives are met. Some signifificant 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.

2828
2828
Accountability Thorough discussion on Global climate change and its effect on the business and other
Accountability Thorough discussion on Global climate change and its effect on the business and other
Accountability Thorough discussion on Global climate change and its effect on the business and other
Accountability Thorough discussion on Global climate change and its effect on the business and other
Accountability Thorough discussion on Global climate change and its effect on the business and other
Accountability Thorough discussion on Global climate change and its effect on the business and other

Accountability

Thorough discussion on Global climate change and its effect on the business and other fifinancial 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

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 fifinance and accounts department and this is reviewed and

reported on a monthly basis.

key financial performance

SRF total revenue: Rs. 1812.97 crore
SRF total revenue: Rs. 1812.97 crore
financial performance SRF total revenue: Rs. 1812.97 crore Chehemicals and Polymer Business Polymer Business Chemicals

Chehemicals and Polymer Business

revenue: Rs. 1812.97 crore Chehemicals and Polymer Business Polymer Business Chemicals Business (Fluorochemicals,

Polymer Business

Chemicals Business

(Fluorochemicals, Chloromethanes, Fluorospecialities) follows

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 fifirst and only Company in the country to have introduced the new-generation refrigerant, HFC 134a, based on in-house technology. We have also

introduced a number of new products in the Fluorospecialities space in the last fifive 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 benefifited from reduction in energy costs due to captive generation of power.

SRF Chemicals Business

Sustainability Report 2008-09Business also benefifited from reduction in energy costs due to captive generation of power. SRF Chemicals

The revenue increase has been achieved despite the business having been under pressure due to
The revenue increase has been achieved despite the business having been under pressure due to
The revenue increase has been achieved despite the business having been under pressure due to
The revenue increase has been achieved despite the business having been under pressure due to
The revenue increase has been achieved despite the business having been under pressure due to

The revenue increase has been achieved despite the business having been under pressure due to complete phase-out of the Ozone-depleting substance, Chloroflfluorocarbons (CFCs) under Montreal protocol, by 31 st July 2008.

In addition to CERs, the Business witnessed an 80% growth in FS, and a 40% growth in HFC 134a, which contributed to the increase in operating profifit.

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

(All fifigures in Rs. crore) 22.5% 31.5% 84.3% *
(All fifigures in Rs. crore)
22.5%
31.5%
84.3%
*

* SRF group as a whole.

direct economic benefit

Employee Wages

(All fifigures in Rs. crore)
(All fifigures in Rs. crore)

indirect economic benefit

Number of Jobs Created

Rs. crore) indirect economic benefit Number of Jobs Created (All fifigures in Rs. crore) (All fifigures
(All fifigures in Rs. crore) (All fifigures in Rs. crore) 3300
(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
3300
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to
economic performance indicators (All fifigures in Rs. crore) (All fifigures in Rs. crore) contribution to

economic performance indicators

(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
(All fifigures in Rs. crore)

contribution to the national exchequer

(All fifigures in Rs. crore)
(All fifigures in Rs. crore)

investment on infrastructure

(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
(All fifigures in Rs. crore)
(All fifigures in Rs. lakh)
(All fifigures in Rs. lakh)

SRF Chemicals Business

31
31

Sustainability Report 2008-09

our environment substantially reducing our ecological footprint SRF has aggressively pursued closed-loop systems of
our environment substantially reducing our ecological footprint SRF has aggressively pursued closed-loop systems of
our environment substantially reducing our ecological footprint SRF has aggressively pursued closed-loop systems of
our environment substantially reducing our ecological footprint SRF has aggressively pursued closed-loop systems of
our environment substantially reducing our ecological footprint SRF has aggressively pursued closed-loop systems of
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 CO 2 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
CII-ITC Sustainability Award (commendation for strong commitment) in 2008. - Rajeev Marwah, VP & Head of
CII-ITC Sustainability Award (commendation for strong commitment) in 2008. - Rajeev Marwah, VP & Head of
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor. SRF
The long-term viability of natural capital is critical for many areas of human endeavor.
SRF seeks to balance society’s need to provide ecological protection and maintain stable
environmental conditions. Its Environmental Sustainability programme not only insists on
maintaining the existing natural environment but actively promotes and
invests in engineering solutions that support human well-being
and are compatible with sustaining natural environmental systems.
in engineering solutions that support human well-being and are compatible with sustaining natural environmental systems.
in engineering solutions that support human well-being and are compatible with sustaining natural environmental systems.
management approach Objectives and G oals A healthy Environment Management is the key driver of
management approach Objectives and G oals A healthy Environment Management is the key driver of
management approach Objectives and G oals A healthy Environment Management is the key driver of
management approach Objectives and G oals A healthy Environment Management is the key driver of
management approach Objectives and G oals A healthy Environment Management is the key driver of
management approach Objectives and G oals A healthy Environment Management is the key driver of

management approach

Objectives and Goals

A

healthy Environment Management is the key driver of any

Clear-cut goals and objectives are established at various levels

Chemical Industry. At SRF Chemicals Business, Management

of management starting from the top. These objectives cover:

is

committed to fifind innovative ways of reducing pollutants

improvement in infrastructure to reduce pollutants, increasing

at

source and optimizing the usage of natural resources. SRF

awareness of new initiatives in environment management,

has initiated programs to minimize waste and responsibly

conservation of energy, natural resource, reduction in waste

dispose off the waste generated. Various initiatives have been

generation etc. These objectives are part of annual planning

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

cycle and updated on continuous basis. The progress is reviewed

of top management towards energy conservation, water

by top management on monthly basis to ensure proper and

conservation, replenishment of groundwater and resource

timely implementation.

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

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.

Director (Environment & Safety)

CEO ( Chemicals Business)

Head of the Works

Functional Head including Process, Engineerirng, EHS, etc.

HEAD (EHS)

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.

of Director (Environment & Safety) in the BOD. Re s p o n si ble f

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

a gemen t Syst em i n d ay-to- d ay o per atio n s

Manager (EHS)

a gemen t Syst em i n d ay-to- d ay o per atio n s

Manager (EHS)

3344
3344
a value system environment health & safety management EHS management is a value system and
a value system environment health & safety management EHS management is a value system and
a value system environment health & safety management EHS management is a value system and
a value system environment health & safety management EHS management is a value system and
a value system
a value system

environment health & safety management

a value system environment health & safety management EHS management is a value system and an

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 Environment Social Acclaim Safe & Healthy People ENVIRONMENT HEALTH
Sustainable Business
Clean & Green
Environment
Social
Acclaim
Safe &
Healthy
People
ENVIRONMENT
HEALTH & SAFETY
Global
Competitiveness

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
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 Bench Review Emergency IMS Self Assessment Structure Systems Marking Mechanism Management
Management
Robust
Bench
Review
Emergency
IMS
Self Assessment
Structure
Systems
Marking
Mechanism
Management
Structure Systems Marking Mechanism Management Legal Compliance Frame w ork – M ajor Accident H azard
Legal Compliance Frame w ork – M ajor Accident H azard ( M A H)

Legal Compliance Framework – Major Accident Hazard (MAH) Unit

Legal Compliance Frame w ork – M ajor Accident H azard ( M A H) U
Frame w ork – M ajor Accident H azard ( M A H) U nit Commitment
Commitment f rom Top M anagement

Commitment from Top Management

Commitment f rom Top M anagement

SRF Chemicals Business

35
35

Sustainability Report 2008-09

Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M
Key R a w M aterial Consumption Name o f the R a w M

Key Raw Material Consumption

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 flfluoride, 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

cylinders, tonners, tankers and ISO containers. eco diagram Raw m a teri al s C l

Raw materials

Cl 2 , MeOH, NaOH H 2 S 2 O 7 , H 2 SO 4 , CaF 2 , TCE TCAC, Benzonitrile, KF, FB

E ngergy Coal, Mustard Husk, HSD, LSHS RSEB Electricity Ground Water
E ngergy
Coal, Mustard
Husk, HSD, LSHS
RSEB Electricity
Ground Water

Into the atmosphere

Well within prescribed Well w it h i n pre sc r i g o vernmen t n o government norms

Well w it h i n pre sc r i bed g o vernmen t n
Well w it h i n pre sc r i bed g o vernmen t n
Well w it h i n pre sc r i bed g o vernmen t n

P r o d u c t s Products

CH 2 Cl 2 , CHCl 3 , CCl 4 HF, R22/23, R 134a TFA, PFBA, PBFB

, CC l 4 HF , R 22/23, R 13 4 a T FA , PFBA

Ha z a rd o us Wa stes z a rd o us Wa stes

Spent oil

Plastics Barrels

Into the water

Water discharged outside premises - 0 KL/Year

3366
3366
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program SRF is committed to providing fifinancial resources for environment
Expenditure on Environment Management Program
SRF is committed to providing fifinancial resources for environment improvement programs. Investments in some of the specifific
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
90.3
energy conservation & water conservation
88.3 Environment Management Programs on
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

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

steam, turbine diesel generators have been provided as backup.

Power connection from Rajasthan State Electricity Board (RSEB)

is primarily used for lighting & non-critical purposes.

Endeavor towards Energy Sustainability

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

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

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

required to perform various processes such as running of moving

machineries, heating in distillation column, etc. Following

initiatives have been taken to achieve energy sustainability for

Chemicals Business.

Reliability & Independence in Power Generation: Before setting up

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

power supplied by Rajasthan State Electricity Board (RSEB) and

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

diesel generators (DG sets). These power sources were prone (All units in KWH) to frequent power
(All units in KWH)
(All units in KWH)

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

cause production loss but have a potential to cause environmental

damage due to sudden disruption in process.

The reliability of power was achieved after successful

commissioning of the Captive Thermal Power Plant using coal as

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

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

SRF Chemicals Business

37
37

Sustainability Report 2008-09

Low Cost of Energy Power generated from the captive DG sets was expensive which directly
Low Cost of Energy Power generated from the captive DG sets was expensive which directly

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-fifired 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

In addition to the coal-based boilers, a boiler using biomass (mustard husk) has been installed to produce steam for captive use. This has not only saved on fossil fuel consumption but also provided a cleaner environment by consuming agriculture waste (mustard husk) in an eco- friendly manner. The use of husk has saved coal, thereby reducing carbon dioxide and sulphur dioxide generation from coal. Husk is procured from the surrounding villages, within a radius if 50-kilometers. With the increase in husk consumption, the earnings of the local community is increasing every year.

earnings of the local community is increasi ng every year . energy conservation programme Greening the
earnings of the local community is increasi ng every year . energy conservation programme Greening the

energy conservation programme

Greening the business processes is one of the key initiatives to reduce natural resource consumption. The Energy Conservation program has been given an impetus since 2006-07, when the Company adopted a multi-dimensional approach:

1. Engaging two external agencies Forbes Marshal and TERI (Tata Energy and Research Institute) to assess and identify the avenues for Thermal and Electrical saving in different processes.

2. Conducting Internal Audits with SRF’s internal technical and shop flfloor personnel.

Certain exercises were carried out on optimizing the power consumption in utilities and steam consumption in various unit operations. Based on external fifindings 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.

3388
3388
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption
2007-08 During the year 2007-08, considerable thrust has been given to minimize the power consumption

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. Modifification 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 flflow was optimized to meet the requirement with one compressor and two pumps in place of earlier two compressors & two pumps.

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.

in the power plant to utilize the heat from the condensate. SRF Chemicals Business 39 Sustainability

SRF Chemicals Business

39
39

Sustainability Report 2008-09

2008-09 Successful implementation of energy saving schemes in 2007- 08 provided a big boost to
2008-09 Successful implementation of energy saving schemes in 2007- 08 provided a big boost to
2008-09 Successful implementation of energy saving schemes in 2007- 08 provided a big boost to
2008-09 Successful implementation of energy saving schemes in 2007- 08 provided a big boost to
2008-09 Successful implementation of energy saving schemes in 2007- 08 provided a big boost to

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-fifired 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

compressor stoppage time increased to save power.

5.

In CPP, raw water pump had 60 m 3 /hr flflow against the constant requirement of 35 m 3 /hr. The pump impeller was trimmed to match the required flflow, 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 flflow 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.

result of energy conservation programme

4040
4040
Water Management The Company draws groundwater for its operations. Water is withdrawn with the help
Water Management The Company draws groundwater for its operations. Water is withdrawn with the help

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.

initiatives taken for water conservation during the year. water conservation & replenishment The Company has

water conservation & replenishment

The Company has adopted two focus areas:

• Conservation

• Replenishment

The SRF Chemicals Business plant is located in Bhiwadi

region of Rajasthan state. This location is classifified as Red

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

by Central Ground Water Authority. After successful

commissioning of the Captive Thermal Power Plant in

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

water thereby creating a thrust and need for conservation

and replenishment of water. Areas and processes were

identifified inside the premises for water conservation and

rain water harvesting.

Since the total area of the plant was not sufficient to

replenish a large amount of water equal to water withdrawal

from the ground, the company undertook water harvesting

& replenishment in nearby villages under Company’s

Natural Resource Management project. These initiatives

witnessed tremendous support from management,

employees and villagers.

various initiatives towards water conservation (inside the premises)

SN

Projects

Year

Potential for

 

Saving (Kiloliter/

day)

1

Utilization of RO reject water for back wash / rinsing of Multigrade fifilter, softner

2007-08

60

and Side stream fi 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

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Sustainability Report 2008-09

water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a
water replenishment (outside the premises) W ater Consumption v/s W ater R eplenishment As a

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 fl off. In the catchment area of the earthen check dams, where land is extremely undulated, terracing, land leveling and fifield 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)

capacity of 251 Ha meters in the 107 Paals; • Harvested 1.5 Million Cubic Meter (MCM)
capacity of 251 Ha meters in the 107 Paals; • Harvested 1.5 Million Cubic Meter (MCM)

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 confifidence 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.

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effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w
effluent water There are t w o types o f e f flfl uent w

effluent water

There are two types of efflfluent water generated in the Plants:

Plant Efflfluent and Domestic Efflfluent.

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

Domestic Efflfluent 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.

zero discharge

The Company uses all the treated effluent (Plant & Domestic) inside the premises in horticulture. No water is discharged outside the factory boundary limits, making the SRF Chemicals Business a ‘Zero Discharge Complex’.

Quality of Treated Water used for Horticulture

Quality o f Treated W ater used f or H orticulture controlling air pollution Air pollution
Quality o f Treated W ater used f or H orticulture controlling air pollution Air pollution

controlling air pollution

Air pollution control measures including controlling emission levels and monitoring ambient air quality have helped improve the work area environment.

Air Pollution: Sources and Treatment There are two sources of air pollutants from the plant: hazardous chemicals in various plants and suspended particles (dust) in Captive power Plant.

In Chemical plant hazardous vapors are emanated at the time of opening the equipment for maintenance, fifilling of the tankers and sampling of the chemicals. Hydroflfluoric acid, Hydrochloric acid va p ors and Chlorine could be the main air p ollutants. The HF vapors are taken care of by being sucked through the

SRF Chemicals Business

43
43

Sustainability Report 2008-09

Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfl
Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfl
Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfl
Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfl
Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfl

Central Absorption System (CAS), where they get scrubbed and absorbed in water. The liquid efflfluent goes for treatment in the Efflfluent 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 fifinal 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 fifilling is provided with hood and suction system to scrub the hazardous vapours and control environmental pollution.

The fifinal 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

State p ollution control Board. Quality o f Ambient Air E lectrostatic Precipitator Electrostatic Precipitators

Electrostatic Precipitator

Electrostatic Precipitators (ESPs) have been installed in the Thermal Power Plant. Installed between the boiler and fifinal stack, ESPs eliminate the suspended particulate matter from the boiler flflue gases, due to electrostatic action. Three (one additional fifield

as

against the design requirement of two fifields) fifields are provided

to

enhance the separation of dust. Effective operation of ESPs has

resulted in achieving an SPM level in the flflue gases, within the consented limit of 50 Mg/M 3 .

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 flfluoride, which

is

separated from the liquid efflfluent and dried in the sludge bed.

In

HF manufacturing, Fluorspar/Calcium flfluoride 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 flfluoride 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.

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The copy of the manifest is sent to RPCB for their reference and record. This

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 landfifill 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 landfifill.

Waste generation
Waste generation

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

land and biodiversity

Presently, the Chemicals Business owns 85.625 acres of land at its factory site of which,approximately 31 acres of land is used for industrial purposes. This area does not come under biodiversity sensitive zone. However, before starting any new project, a comprehensive Environment Impact Assessment (EIA) Study is conducted and stakeholders are consulted to assess the possible impacts, as well as address issues arising from this process, if any The green belt area of the plant is being increased continuously, as an effective pollution mitigating technique, as well as to serve as a biological indicator for the pollutants released from the premises of the plant. Specifific 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.

By-product Disposal

Closed system for Fly Ash conveying and filling: 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 flfly ash was installed, thereby eliminating the possibility of flfly 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 flfly ash in closed tankers. This has resulted in safe and environment friendly transportation and disposal of the

Fly Ash. 23387 M Tons of dry flfly ash was transferred to the cement plant without having to send any quantity for landfifill.

Gypsum: Gypsum is one of the by-products generated during manufacturing of the Hydroflfluoric 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.

SRF Chemicals Business

45
45

Sustainability Report 2008-09

initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)
initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)
initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)
initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)
initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)
initiatives to meet climate change challenges Ozone Depleting Substances (ODS) and Green House Gases (GHG)

initiatives to meet climate change challenges

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

The flfluorocarbon industry is in a state of flflux. The chloroflfluorocarbons (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, hydrochloroflfluorocarbon-22 (HCFC-22), also an ODS, is scheduled for phase out by 2030. The cutback in production will commence from 2013. A by-product of HCFC-22, HCFC-23, was found to be a potent greenhouse gas (‘GHG’), and is being actively targeted under the Kyoto Protocol. The most effective replacement of CFC-12 is a flfluoro-refrigerant HFC 134a (hydro flfluorocarbon), whose phase-out has already been scheduled in Europe under the European Union’s f-gas regulations, since it, too, is a GHG.

ODS phase out (in M Tons)
ODS phase out (in M Tons)

For phasing out Chloro-flfluorocarbons (CFCs) as per commitments under the Montreal Protocol, the Chemicals Business received fifinancial assistance from the Government.

 

2006-07

2007-08

2008-09

Financial assistance from the government (Rs. crore)

11.98

25.49

11.89

In this environment of strict regulation, the flfluorocarbons industry fifinds majors and bit players alike struggling to maintain their footing. The best room and car refrigeration technology available today is built around HFCs and their blends (R404a, 407c, 410a) whose patents are scheduled to expire over the next two years (between 2009 and 2011) in different geographies. This opens up opportunities for a restructuring within the industry as some players position themselves for the impending change better than others. At the same time, this shift introduces into India, new flfluoro-refrigerants that substitute HCFC-22 with HFC blends where global players have a significant 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:

CDM project: GHG reduction

SRF is among the few companies in India who are major benefificiaries of the CDM project. The initiative of incinerating the global warming gas R-23 has earned SRF ‘Carbon Credits’.

Incineration of GHG R-23 (M Tons)

‘Carbon Credits’. Incineration o f GHG R- 23 ( M Tons ) Note: R-23 incineration eligible

Note: R-23 incineration eligible for GHG emission reduction

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4466
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )
GHG emission and control CO 2 generation f rom f uel ( M Tons )

GHG emission and control

CO 2 generation from fuel (M Tons) For producing different sources of energy like power, steam and hot air, different fuels are used. There is a continual effort towards reduction in GHG emission despite increase in production volume due to added capacities in CMS, HF & FS Plant. This is achieved due to increased use of Biomass.

FS Plant. This is achieved due to increased use of Biomass. Note: CO 2 emission factor

Note: CO 2 emission factor taken from 2006 IPCC Guidelines for National Greenhouse Gas

Direct and Indirect CO 2 Generation (M Tons)

Gas D irect and Indirect CO 2 G eneration ( M Tons ) Note: CO 2

Note: CO 2 baseline database for the Indian power sector western grid has been considered for calculating the indirect CO 2 generation.

CO 2 Generarion v/s Destruction

During last three year, the total carbon dioxide generated is shown in graph. This covers CO 2 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.

CO 2 generarion v/s destruction (Million M Tons)
CO 2 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 Efflfluent 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 fulfifilled. No case of signifificant leakage was reported during 2007-08& 2008-09.

Compliance with Statutory Requirements All statutory requirements pertaining to environment management have been identifified 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 fines or sanctions were imposed on the Chemicals Business on account of any environmental issue