nipm istd seminar 2012 -srf
TRANSCRIPT
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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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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.)
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…
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 .…
29Jul 5, 2012
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