Case Study:
 Developing and Sustaining Brand Image
With Environmental and Social Dimensions



  NIPM ISTD Seminar: 30th June 2012
                  By
                HS Dua
   Associate Vice President –HR,CSR
        SRF Chemicals Business

                                           1
Natural Resource Management for Poverty Alleviation and
               Environment Conservation




      A classical example of successful CSR initiative of
                   SRF Chemicals Business
                                                            2
•SRF Chemicals

    Context                                       Business




   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




                                                                3
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




                                                               4
Community Profile: Meo-Muslims & SCs
Low literacy, large family size, and drudgery of women




                                  Literacy               45.3%
                                  Female Literacy        29.4%
                                  Sex Ratio                829
                                                            5
Aravali Ecosystem- A challenge for Development
• 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
                                                             Struggle for drinking water
  to get education……

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


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

                                                                                           6
SRF’s initiative….
• 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




                                                                             7
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
    Sponsors          Project Guide      Implementation        Impact assessment

                                                                                    8
Project Objectives
• 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




                                                                                   9
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




                                                                            10
Community Mobilization




•Self Help Groups & User Groups are
formed which carry out interventions
•Funds are channelized through these
groups, ensuring transparency




                                       11
Construction of Paals




These are earthen embankments constructed across main gullies carrying runoff
          from barren hills and waste lands for rainwater harvesting.           12
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
                                                                                 13
Plantations 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
                                                                                  14
Production improvement on leveled lands




•Introduced package of practices - in mustard sowing, vegetable cultivation along
               with composting , green manuring… Drip sprinklers                 15
Promotion of Farmers’ Cooperative




• 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




                                                                           16
Achievement since 2006……
                                                     Cumulative
Sl.No                         Activity
                                                      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

                                                                  17
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




                                                                               18
The increase in water table (Mtr)




                                    19
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




                                                                                     20
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
                                                                           21
Impact on the Community
• 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




                                                                               22
Economic Analysis of the Project intervention (Mn Rs.)
                       Present    Present       Net                          Pay back
       Sector          value of   value of    present    B:C ratio   IRR %    period
                         cost     benefits     value                           Years

 Paal construction       7.3        21.3        14.0       2.92      32.0       4

 Land leveling with
                        16.0        48.5        32.5       3.04      20.5       7
 veg. and plantation

 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.

                                                                                        23
Cost Benefit Analysis of Check Dams Construction




                                                   24
What have we achieved…
 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 made it work .…
 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
Accolades: CII – ITC Sustainability Award




2011



                              2009




 2008                 2009                2010
                                                 28
Global Sustainability Awards



Bayer Crop Sciences:
Supplier Sustainability
Award 2010, 2011


Syngenta:
Global Sourcing Award of
Recognition 2012




                                                          29
                                                 Jul 5, 2012
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.
Forbes Asia




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




                                             Jul 5, 2012
Thank You




            32

NIPM ISTD Seminar 2012 -SRF

  • 1.
    Case Study: Developingand Sustaining Brand Image With Environmental and Social Dimensions NIPM ISTD Seminar: 30th June 2012 By HS Dua Associate Vice President –HR,CSR SRF Chemicals Business 1
  • 2.
    Natural Resource Managementfor Poverty Alleviation and Environment Conservation A classical example of successful CSR initiative of SRF Chemicals Business 2
  • 3.
    •SRF Chemicals Context Business  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 3
  • 4.
    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 4
  • 5.
    Community Profile: Meo-Muslims& SCs Low literacy, large family size, and drudgery of women Literacy 45.3% Female Literacy 29.4% Sex Ratio 829 5
  • 6.
    Aravali Ecosystem- Achallenge for Development • 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 Struggle for drinking water to get education…… …….. posing challenge for ecosystem rehabilitation and sustainable development in the region…. which, if not addressed, could affect our Business continuity - especially the water issue 6
  • 7.
    SRF’s initiative…. • SRFventured 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 7
  • 8.
    Strategy Adopted….. • Feasibilitystudy 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 Sponsors Project Guide Implementation Impact assessment 8
  • 9.
    Project Objectives • Toimpact 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 9
  • 10.
    Technological Package • Mappingof 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 10
  • 11.
    Community Mobilization •Self HelpGroups & User Groups are formed which carry out interventions •Funds are channelized through these groups, ensuring transparency 11
  • 12.
    Construction of Paals Theseare earthen embankments constructed across main gullies carrying runoff from barren hills and waste lands for rainwater harvesting. 12
  • 13.
    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 13
  • 14.
    Plantations on leveledlands Fast growing fodder and timber tress planted along the bunds and fruit plants in the fields was designed and promoted involving the local community 14
  • 15.
    Production improvement onleveled lands •Introduced package of practices - in mustard sowing, vegetable cultivation along with composting , green manuring… Drip sprinklers 15
  • 16.
    Promotion of Farmers’Cooperative • 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 16
  • 17.
    Achievement since 2006…… Cumulative Sl.No Activity 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 17
  • 18.
    Impact of RainWater 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 18
  • 19.
    The increase inwater table (Mtr) 19
  • 20.
    Impact of LandLeveling • 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 20
  • 21.
    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 21
  • 22.
    Impact on theCommunity • 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 22
  • 23.
    Economic Analysis ofthe Project intervention (Mn Rs.) Present Present Net Pay back Sector value of value of present B:C ratio IRR % period cost benefits value Years Paal construction 7.3 21.3 14.0 2.92 32.0 4 Land leveling with 16.0 48.5 32.5 3.04 20.5 7 veg. and plantation 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. 23
  • 24.
    Cost Benefit Analysisof Check Dams Construction 24
  • 25.
    What have weachieved…  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
  • 26.
    What have weachieved…
  • 27.
    What made itwork .…  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
  • 28.
    Accolades: CII –ITC Sustainability Award 2011 2009 2008 2009 2010 28
  • 29.
    Global Sustainability Awards BayerCrop Sciences: Supplier Sustainability Award 2010, 2011 Syngenta: Global Sourcing Award of Recognition 2012 29 Jul 5, 2012
  • 30.
    Global Recognition The NRMproject 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.
  • 31.
    Forbes Asia Forbes Asiaranked SRF as one among the 200 Best Corporations in Asia Pacific under a Billion $ Category Jul 5, 2012
  • 32.