Environmental Management

Project Report
Submitted by:
Dilip Pandey Aashutosh Singh Kavita Singh Mahesh Swamy Naina Tak 38 52 53 55 56

Industry Analysis
Chemical industry is one of Indias oldest industries, contributing significantly towards the industrial and economic growth of the nation. The Indian Chemical Industry forms the backbone of the industrial and agricultural development of India and provides building blocks for several downstream industries. According to the Department of Chemicals and Petrochemicals, the Indian chemical industry is estimated to be worth approximately US$ 35 bn, which is about 3% of Indias total GDP. The total investment in the Indian chemical industry is approximately US$ 60 bn and total employment generated was about 1 mn. In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Exports of chemicals from India have increased significantly and account for about 14% of total exports and 9% of total imports of the country. The Indian chemical industry comprises both small and large-scale units. Fiscal concessions granted to the small sector in the mid-eighties led to the establishment of a large number of units in the Small Scale Industries (SSI) sector. The major sub segments of this industry include alkali, organic chemicals, inorganic chemicals, pesticides, dyes & dyestuffs and specialty chemicals. The Indian chemical industry deals in products like fertilizers, bromine compounds, catalyst, sodium and sodium compounds, dye intermediates, inks and resins, phosphorous, paint chemicals, coatings, isobutyl, zinc sulphate, zinc chloride, water treatment chemicals, organic surfactants, pigment dispersions, industrial aerosols and many more. The commodity chemicals are the largest segment in the chemical market. Some of the major markets for chemicals are North America, Western Europe, Japan and emerging economies in Asia and Latin America. The Indian chemical industry is matured and is in the midst of a major restructuring and consolidation phase. Globalization has opened the doors for this sector to capture a major part of the global market pie.

The sector has experienced many reforms in India and is expected to grow at 15% p.a. in the near future. The investment in R&D will also play a vital role in this sector. In a nutshell, the Indian chemical industry has a large potential to grow in domestic as well as in export markets. In the current market conditions, with an appreciating rupee, pricing will be a crucial factor while competing with other exporting countries.

There is considerable growth potential in the engineering plastics industry worldwide since untapped opportunities still exist for metal replacement in cars and trucks, household appliances as well as other applications. Growth in Asia will be driven by increasing usage of engineering plastics in segments like electrical & electronics (E&E), construction and automotives in particular.

Engineering plastics demand is expected to rise globally, driven by the ongoing replacement of metal parts with high-performance plastic.

Engineering plastics in India has witnessed fast growth although the market size is not as large as some other Asian countries. However, this is likely to change as more OEMs, particularly in the automotive industry, plan to establish plants in India. With India becoming an automotive hub, and the electrical and electronics market witnessing a boom, the demand for engineering plastics in India is set to grow at a rapid pace.

Company Analysis
SRF Limited is an Indian maker of industrial intermediates. It manufactures nylon fibers, engineering plastics, chemicals and polymers. The company was established in 1970, as Shri Ram Fibres Limited by DCM Limited as a wholly owned subsidiary. Its initial focus was on the manufacture of nylon cord fibres for tyres. Its first manufacturing plant was set up in Manali, near Chennai, in 1973. Over the years, the company diversified its product offerings into technical textiles, engineering plastics, chemicals and packaging films. In 1990, it changed its name to SRF Limited. In 1986, the company setup a joint-venture with Denso, SRF Nippondenso, for the manufacture of automotive components. This was later spun off as a separate company in 1993. Another subsidiary, SRF Finance, started in 1986, was sold to GE Capital in 1997. SRF also had a health-care division which manufactured plastic optical lenses, which was spun off as a separate company in 1997. SRF Limited was listed in the 2011 Asia's Best under a Billion list by Forbes magazine. Operations SRF R&D centers are located in Jhiwana, Rajasthan and Chennai, Tamil Nadu. SRF operates 8 manufacturing plants in India and 1 each in South Africa, Thailand and the UAE.

Milestones
Over the years SRF has grown and diversified into a multi-business entity achieving global leadership for most of its products.

1970 Incorporated as Shri Ram Fibres 1974 commenced operations of nylon tyre cord at Manali 1977 production of fishnet twines started 1979 commences production of nylon engineering plastics 1983 commissioning of Belting Fabrics at Viralimalai 1986 commissioning of coated fabrics at Viralimalai 1986 commencement of operations at SRF Nippondenso Ltd 1986 set up SRF Finance Ltd 1989 entered Chemicals Business with production of refrigerants 1990 Shri Ram Fibres renames as SRF Ltd 1993 divested SRF Nippondenso 1995 commercial production Chloromethanes 1995 ventured into Packaging Films Business 1995 started Vision Care Division at Bangalore 1996 set up the company's first overseas plant (tyre cord) in Dubai 1997 divested SRF Finance Ltd. to GE Capital

1997 divested Vision Care Division 2002 polyester films, fishnet twines and engineering plastics businesses spun off as a separate entity, SRF Polymers Ltd 2009 purchased of two businesses of SRF Polymers Ltd., the Engineering Plastics and the Industrial Yarn Business

Projects Undertaken
Wind Mills SRF set up nine units of 14 MW Wind Mill in Tamil Nadu in 2008 to meet the partial energy requirements for its units based in Southern India. This amount of power produced from wind energy, a carbon free resource has resulted in GHG emission reduction equal to the carbon content in the power substituted from the electricity grid. The project, which has been implemented as a major source of renewable energy, is part of the company's Clean Development Mechanism (CDM) initiative. The generated power from the wind turbines will be wheeled by Tamil Nadu Electricity Board (TNEB) grid network. With this project, SRF shall prevent emissions of about 35,000 metric tonnes of CO2 entering the atmosphere annually from power generation. The climate impact correlates to planting 150,000 trees or removing 30,000 cars from the road. Biomass Project SRF has also installed a boiler using biomass (mustard husk) to produce steam for captive use in its chemicals plant in Bhiwadi. This has not only saved on fossil fuel consulption 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 of 50 kilometres.

CDM Project SRF has been one of the pioneers in the country to invest in Clean Development Mechanism (CDM) for cutting carbon emissions. SRF got its CDM project registered with the UNFCCC (United Nations Framework Convention on Climate Change) under Kyoto Protocol in December 2005. The company thus began incinerating R-23, a byproduct of one of the refrigerant gases R-22 (HCFC), which is produced by SRF at its Chemical Plant at Bhiwadi. Earlier, like all other producers of HCFC 22 in the developing world, R-23, which has a global warming potential equal to 11,700 times that of CO2was being vented into the atmosphere. SRF's CDM project has the potential to mitigate 3.83 million metric tonnes CO2 equivalent greenhouse gas emissions annually. The revenues generated from the transfer of CERs (carbon emission reductions) have been used by SRF to augment its efforts in the area of Sustainable Development besides investing in core businesses.

PLANNING A CDM Project ACTIVITY

y CDM PP s PLANS CDM PROJECT ACTIVITY

PREPARING PDD

y PP s PREPARE THE PPD FOR CDM PROJECT

GETTING APPROVAL

y PP s SHALL GET WRITTEN APPROVALS OF VOLUNTARY PARTICIPATION FROM DNAOF EACH PARTY INVOLVED, INCLUDING POST PARTY y PP s MAY GET WRITTEN APPROVAL IN STEPS 1,2 0R EVEN 4

VALIDATION

VALIDATION IS THE PROCESS OF INDEPENDENT EVALUATION OF PROJECT ACTIVITY AGAINST REQUIREMENT OF CDM

REGISTRATION

REGISTRATION IS THE FORMAL ACCEPTANCE OF A VALIDATE PROJECT AS THE CDM PROJECT ACTIVITY.

MONITORING A CDM PROJECT ACTIVITY

y PPs COLLECT AND ACHIEVE ALL RELEVANT DATA NECESSARY FOR CALCULATING GHG EMISSION REDUCTION BY CDM PROJECT ACTIVITY IN ACCONDANCE WITH THE MONITORING PLAN IN THE PDD

VERIFICATION & CERTIFICATION

y VERIFICATION IS A PERIODIC INDEPENDENT REVIEW AND EX-POST DETERMINATION OF THE MONITORED GHG EMISSION REDUCTION. y CERTIFICATION IS THE WRITTEN ASSURANCE BY DOE THAT PROJECT ACTIVITY ACHIEVES THE REJECT REDUCTIONS IN GHG EMISSIONS AS VERIFIED.

ISSUANCE OF CER s

y THE EV WILL BE ISSUED CERs = VERIFIED AMOUNT OF GHG EMISSION REDUCTION y AMONG ISSUED CERs 2 % WILL BE DEDUCTED FOT THE SHARE OF PROCEED TO ASSIST DEVELOPING COUNTRIES TO MEET COST OF ADAPTATION.

DISTRIBUTION OF CER s y CERs WILL BE DISTRIBUTED AMONG PPs

Calculation of Total CER s Generated: Actual Emmisions Total generation factor Emmisions (Kwh) (kgCO2/Kw Reduction (tCO2) h) 55882 0.92931 519 3567066 0.92931 3315 6321042 0.92931 5874 6564102 0.92931 6100 5758350 0.92931 5351 4406268 0.92931 4095 4026396 0.92931 3742 831264 0.92931 773 1187136 0.92931 1103 2026554 0.92931 1883 867798 0.92931 806 1430898 0.92931 1330 932994 0.92931 867 38478750 0.92931 35759

Mar'09- Apr'09 Apr 09 - May 09 May 09 - Jun 09 Jun 09 - Jul 09 Jul 09 - Aug 09 Aug 09- Sep 09 Sep 09 - Oct 09 Oct 09 - Nov' 09 Nov 09- Dec 09 Dec 09 - Jan 10 Jan 10 - 27 Jan 10 Jan 10 - Feb 10 Feb 10- Mar 10 Total

PROCESS FLOW

IDENTIFICATION OF ALTERNATIVES TO THE PROJECT ACTIVITES CONSISTENT WITH CURRENT LAWS AND REGULATION

PASS
INVESTMENT ANALYSIS BARRIER ANALYSIS

PASS
COMMON PRACTICE ANLYISIS

PASS
THE PROJECT ACTIVITY IS ADDITIONAL