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NIPM ISTD Seminar: 30th June 2012

By

HS Dua

Associate Vice President –HR,CSR

SRF Chemicals Business

Case Study: Developing and Sustaining Brand Image

With Environmental and Social Dimensions

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A classical example of successful CSR initiative of

SRF Chemicals Business

Natural Resource Management for Poverty Alleviation and Environment Conservation

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Context

SRF plant is located in Tijara of Alwar; part of Aravali hills

Aravali hills spread over 500 kms across N-E to S-W of Rajasthan

Once upon a time, covered with dense forest - providing firewood, fodder to local communities; maintaining delicate ecological balance of the Aravali ecosystem.

•SRF

•SRF Chemicals Business

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Landscape

Over the years, severe land degradation has occurred due to:

Increasing pressure of human and livestock population Breakup of Community system leading to non ownership

and maintenance of water structures. Large scale mining- legal and illegal

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Literacy 45.3%

Female Literacy 29.4%

Sex Ratio 829

Community Profile: Meo-Muslims & SCsLow literacy, large family size, and drudgery of women

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• Fast depleting ground water

• harsh climate & impoverished sandy soils

• Over grazing by live stock – the main source of livelihood

• Poor people - lack of money to invest on land improvement

• illiteracy, large family size and least urge to get education……

Aravali Ecosystem- A challenge for Development

…….. posing challenge for ecosystem rehabilitation and sustainable development in the region….

which, if not addressed, could affect our Business continuity - especially the water issue

Struggle for drinking water

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• SRF ventured to take head on with these problems and initiated a natural resources management project for Sustainable Development based on social, economic and environmental dimensions – in 2006.

• Used Water as the starting plank for engaging with the local community

• Created livelihood opportunities for the poorest- through underutilized land & water resources

• Revived/Constructed Rainwater Harvesting Structures – called ‘Paals’

• We did this through:

A unique Corporate- NGO Partnership Model for project implementation and Impact assessment

SRF’s initiative….

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Strategy Adopted…..• Feasibility study in 35 villages within 25 Km radius of the plant to understand

the risks and opportunities to make social and environmental impact.

• The study recommended a development program based on soil and water conservation

• Entered into Partnership with PRADAN, a reputed NGO to implement interventions

• Established the Deliverables – activities & outcomes…. Budget (in line with the Activities)…Details of working relationships

• Engaged professional NGO for impact assessment….

• Constituted a Steering Committee to review progress and suggest improvements

SPACE

Project Guide Implementation Impact assessmentSponsors

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• To impact 6,500 families by 2015 and increase their annual income by Rs 10,000 on a sustainable basis.

• Enhance productivity of natural resources through:• Harvest rainwater to recharge ground water • Reclaim waste lands • Promote livelihood programs –using soil and water• Organize people for collective ventures and assist in market links

The interventions were taken up for first two years (2006-08) in 17 villages as pilot phase and later expanded to 34 villages over next 4 years

Project Objectives

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Technological Package

• Mapping of the target areas with involvement of local community

• Old water structures were identified

• Phased plan of implementation

• Community stake - 20-30 % contribution to get long term buy-in

• Contour surveys and hydrological studies to establish optimum locations

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•Self Help Groups & User Groups are Self Help Groups & User Groups are formed which carry out interventionsformed which carry out interventions

•Funds are channelized through these Funds are channelized through these groups, ensuring transparencygroups, ensuring transparency

Community Mobilization

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Construction of Paals

These are earthen embankments constructed across main gullies carrying runoff from barren hills and waste lands for rainwater harvesting.

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Leveling of uneven, undulating waste lands

Farmers started growing mustard just after leveling and gained Rs 4000 to 5000 / ac in first year itself - farmers share 40-50 % of the cost

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Plantations on leveled landsPlantations on leveled lands

Fast growing fodder and timber tress planted along the bunds and fruit plants in the fields was designed and promoted involving the local community

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Production improvement on leveled lands

•Introduced package of practices - in mustard sowing, vegetable cultivation along with composting , green manuring… Drip sprinklers

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• Formed and strengthened Vegetable Producer's’ Cooperative Association

• Tie-up with National Dairy Development Board (NDDB) and Mother Dairy and in the project villages for marketing of vegetables

Promotion of Farmers’ Cooperative

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Sl.No Activity Cumulative

Since ‘06

1 Construction of Earthen check dams (Paals) 174

2 Catchment Area Covered (ha) 8954

3 Ground Water Recharged (MnM³) 5.34

4 Land Leveling (Ha) 893

5 Plantation of fruit and fodder trees (No.) 2,11,465

6 Number of Self Help Groups (SHGs) 108

7 No of members in Self Help Groups 1114

8 Families Impacted (direct/indirect) 4212

Achievement since 2006……

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Impact of Rain Water Harvesting• The trend of ground water depletion has reversed- Dried wells have sprung

back to life

• Rise in ground water level from 0.6 to upto 2.1 meters in some of project

villages

• Increased soil moisture on account of land leveling improved soil and crop

productivity

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The increase in water table (Mtr)

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Impact of Land Leveling

• Crop yields increased by 150% with land leveling and improved agriculture practices

• The price of land has increased four to five times

• Farmers invested in irrigation systems, installed sprinklers and rubber pipes on which State provides good amount of subsidy.

• Women and old members of family are gainfully employed on own farms

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Impact of Plantation

• Over 0.2 million fruit and fodder trees planted on the reclaimed lands

• Ardu Neem (Ailanthus) along the field boundary proved a major success

• Increase in forest cover and income options for the poor

A Paal in 2006 … in 2012

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• 4212 families in 35 villages benefited with sustainable livelihood options

• The income of targeted families increased by 300% from vegetable crops

• Over 100 women self-help groups have started piggy banks by contributing meager savings and inter-loaning successfully to meet their credit needs

Impact on the Community

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SectorPresent value of

cost

Present value of benefits

Net present value

B:C ratio IRR %Pay back

period Years

Paal construction 7.3 21.3 14.0 2.92 32.0 4

Land leveling with veg. and plantation

16.0 48.5 32.5 3.04 20.5 7

Crop Production 8.9 16.4 7.5 1.85 47.0 1

Overall 2.68 33 3

The construction of Paals, land development and crop improvement package gave benefit: cost ratio of 2.92, 3.02, and 1.85 and internal rate of return (IRR) of 32, 20, and 47% respectively thus indicating that investments are paid back in a period of 3 years with large number of intangible benefits to the community.

Economic Analysis of the Project intervention (Mn Rs.)

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Cost Benefit Analysis of Check Dams Construction

Development of local community• Self-esteem, social pride, self employment , urge to progress & reinvest

Business Sustainability• Enhanced Brand Image and reputation - necessary to achieve our vision of

“ Global, Credible Player”. Increased sales from international customers• Have become Water positive –More water harvesting than its net

consumption in our operations • Reduced carbon footprint of the business• Goodwill of local community...minimizing disruption risk• Better equation with/respect from local administration• Sense of pride among employees – attraction and retention

What have we achieved…

What have we achieved…

Strong commitment by the promoters/top Management

Unique model of Corporate-NGO partnership

Sustainability linked to overall business strategy

Effective planning towards resource allocation

Time-bound implementation with measurable goals

Strong review & support mechanism

What made it work .…

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Accolades: CII – ITC Sustainability Award

2008

2009

2009 2010

2011

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Bayer Crop Sciences:Supplier Sustainability Award 2010, 2011

Syngenta: Global Sourcing Award of Recognition 2012

Global Sustainability Awards

Global Recognition

The NRM project was selected

for a case study on NGO-

Business Partnership.

The case study, documented by

PRIA, was showcased at

Erasmus University, Rotterdam

in April 2011.

Jul 5, 2012

Forbes Asia ranked SRF as one among the 200 Best Corporations in Asia Pacific under a Billion $ Category

Forbes Asia

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Thank You