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A presentation on

Presented by:

Aamir mansuri 1223 Vinay savani 1249

EXCEL INDUSTRIES LIMITED


Excel industries ltd. was started in 1941 with the objective of developing import-substitutes in the Indian chemical industry. Over the years, Excel came to be known as an industry leader in the area of agro-chemicals and agro-chemical intermediates. Using its expertise in Chemistry and Chemical technology, Excel also expanded its chemicals manufacturing range to include Water treatment chemicals and Polymer Additives and few other speciality chemicals.

VISION

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Mr. KC shroff, MD of excel industries limited, was looking at the performance data of his company. In June 1992, Mr. shroff was highly satisfied with the result of the last finance year, but he also felt that was Not the time to get complacent. More vigorous efforts were required, he felt, to continue the success story of the company under changing competitive pressures. Mr shroff had begun giving thought to the future strategy the company needed to pursue. He wanted to consolidate his views before calling a meeting of his senior managers to discuss his plan with them. Mr shroff remembered the different phases, ups and downs through which excel had passed over the years and how withstood the company, due to appropriate strategic choice and team -work had withstood the businesspressures and had come out a winner.

EXCEL: OPERATION AND DEVELOPMENT


According to a company booklet, excel was a company made through the vision of one man. Having started off as a kitchen laboratory, excel had grown to be a giant, ranking with pharma/chemical multinational operating in India. from day one , it had helped the country save and earn foreign exchange by indigenously producing chemicals and exporting them to those very countries, India used to import from.

Above all, to2500 and more Excelites, it was the family in which they could innovate, grow, discover and explore areas of their interest.

It all began in the early forties, when a young science graduate Mr. C C Shorff set his sights on putting India on the chemical map of the world. if it can be done elsewhere, why not India? was his credo.

Some of the highlights of Excels operations


Through its in-house research, Excel developed aluminum phosphide in 1967, manufactured at that time by only two other companies in the world. Excel also became the first in Asia and the third in the world to produce the broad-spectrum insecticide endosulfan. Excel was second in the world after the USA, to develop and manufacture the translocated herbicide glyphosphate. Excel was also first in Asia to make butene diol, a basic raw material for endosulfan. Excel had also pioneered the development of a range of phosphonatebased water treatment chemicals that are widely used by fertiliser, petrochemical and detergent units.

Excel had bagged 11 awards in the following categories


A series of awards for technological development for process-design and engineering from Indian chemicals manufacturers association (ICMA). Gold, silver and bronze shields for import substitution from the government of India. Export awards for three years in a row from the chemicals export promotion council (CHEMEXCIL). The trishul award for triple triumph for outstanding export performance from CHEMEXCIL. And yet The story of Excel, said the booklet, was not just one of chemicals and awards. It was also the story of its people. if people are treated with honesty and dignity and are allowed to participate in the process of communication, they respond with commitment. The evidence was shown in the success of Excel.

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Government of India and state regulations in the 1980s offered some incentives to industries located in backward areas. The adodidas, a notorious criminal community, were Excels first employees at Bhavnagar. the adivasis and warlis of Maharashtra and Gujarat had come to stay at Excels plant at Jogeshwari, Roha and Amboli. Excelites in Bhavnagar welcomed lepers to work at the plant giving them a chance to live with dignity. From a small beginning in 1950, Excel had grown into a big company with five large plants at jogeshwari and amboli in Bombay, Bhavnagar, Roha and Lote parsuram. Excels operations included recovering silver out of waste film to producing a wide range of vital industrial and agro-chemicals.

THE START-UP PHASE (1941-1968)


In 1941, shroff decided to set up a small company named it Excel Industries. Excels first product was zinc chloride, much in demand with the textile and dry-cell industries. Shroff developed his own manufacturing processes, cheaper, simple and as efficient as any other in the world. In 1954, he went to the UK with a plan to set up manufacturing facilities for mercuric chloride there. The English company was impressed with the new process. They purchased the technology and the plant.

Before Excel started manufacturing, most of the product like ferric chloride and phosphorous were being imported. Excel developed these products firstly, because the country needed these products, secondly, partly because of the sheer pleasure of solving problem of making chemicals everyone else thought was hazardous and thirdly because of an unwillingness to be tied down to only one product or process, a refusal to turn stale or complacent.

The growth phase (1968-1985)


after Mr. CC shroff had passed away in 1968, his younger brother Mr. GC shroff took over as the chairman-cum-managing director of Excel Industries Ltd. He was seen to have the vision and dynamism to take the organization to greater heights. In 1970, Excel set up an arc furnace for the manufacture of yellow phosphorus, from locally available cheap rock phosphate mainly for its captive requirement. This would give the companys products the additional edge by way of higher value-addition. The investment needed was about Rs 100 lakh at 1970 prices, for one arc furnace to manufacture 2500 tons per annum, of yellow phosphorus. To meet the fund requirements, Excel made a public issue of Rs 150 crore in 1970.

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In 1976, Excel set up another furnace with a similar capacity. The period from 1979 to 1983 could be termed as the first rapid-growth period of Excel. Performance highlights: 1976-1983

The stagnation phase (1983-87)


The period 1983-87 was not a rosy one for Excel Industries. Many changes were taking place in the environment and in the competitive front. Performance highlights: 1983-87

OVER DEPENDENCE ON AGRO-CHEMICALS


By 1983, direct sale of agrochemicals formed around 65 per cent of the companys turnover. In 1986, the country faced the worst drought in many decades and the pesticides industry registered negative growth rates.

ADVENT OF SYNTHETIC PYRETHROIDS


BUTENE DIOL

The consolidation and development phase (1987-91)


Mr. KC shorff took over charge when Excel was going through a bad phase. He became the managing director of Excel in 1985 having been the MD since 1968.
Performance highlights: 1987-91

R&D ORGANISATION
The R&D department had highly experienced, knowledgeable scientists and technicians apart from many who had come from various productionunits with their experience of ongoing process-developments in the plant. The R&D manpower was classified into two teams. One, which would look into the development of new product and the other to work on processmodifications and cost-reduction exercises on current products.

PHOSPHORUS COMPOUNDS
Di-ethyl phosphoryl chloride (DETC), a critical intermediate for a range of organo-phosphorus pesticides, was ready in bench scale and pilot-plant scale-up work was in process. This product was earlier imported and was in demand. So it was decided to increase the capacity. But during this period no new additional capital expenditure was possible. A wide range of water-treatment chemicals and formulations was developed. The market grew and the current sales were to the tune of above Rs 10 crore.

ENDOSULFAN
Endosulfan, the key product, had the following problems: About 10-15% of the production was of non-saleable quality and needed future processing and purifications which was costly. Physical appearance of the product did not match with the international standards. Solvents and raw materials consumptions were high.

BUTENEDIOL
After the explosion of an acetylene cylinder in the butenediol plant in 1986, all the process-steps were re-examined from the safety-angle. The hydrogen cylinder, in a manifold, was transported with utmost care for about 6 months. Excel bagged the prestigious sir PC Roy award for 1991 fro m the Indian chemicals manufacturers association for the development of this lowpressure butenediol technology indigenously and innovative as compared to high-pressure technology only available with two other manufacturers in Europe and USA.

PRODUCTION IMPROVEMENT
All manufacturing facilities were checked and corrective action were taken wherever required. Safety committees were formed at all manufacturing sites. Internal safety audits and risk-analysis of all products were carried out. Manpower levels which were supporting a turnover of around Rs 45 crore in 1986, could well support an increased turnover of Rs130 crore (199091).

REVITALISED ORGANISATION
Company-wide organisation restructuring was undertaken. The marketing department was substantially reconstituted. The company also instituted a voluntary retirement-scheme which facilitated the departure of surplus, older, less qualified employees.

PYRETHROLD SETBACK
Simultaneous to the above improvements, the experience of 1987, showed the weakness of pyrethroids. Emphasis on quality assurance of endosulfan initiated during 1984-86 before fruits in the export- market also. The registration procedure of many of Excels agro-chemicals in foreign countries initiated in 1983 had been completed in 1987. As a result of the above efforts, Excel also achieved improved results in the years that followed.

CORPORATE PHILOSOPHY AND OPERATIONS


The corporate philosophy of excel was partly summarised in the companys mission statement redrafted and circulated in 1990.

Teamwork through interaction


Excel laid stress on group working as a counter to the ego-tendencies for solo play. group met at different hierarchical levels. Corporate management and general management teams met separately on three days in a week and jointly on two days in a week. There were regular meeting on technology, safety, fund-management, energy etc.

HUMAN RESOURCES
A candidate was recruited only when he was approve by the entire group with whom he was to work. The interview was conducted by all of them together. When Excel started a new unit like the one that was coming up in up, about 25 persons from among the existing personnel were selected to form the nucleus, to start the new unit. The groups were given names like Ramaban, janani, vikas and sethu evocative of role model in the Hindu epics.

SOCIO-BUSINESS COMBINE
The isavasyam idam sarvam maxim was also the drive to focus on the environment, the integrated management of which included people, cattle, nature, soil water, plants and everything else. The following were some examples.] Choolhas had been designed to work on twigs and small branches and to keep the house smokeless. More than 14,000 villagers had learnt to use these and also to do necessary repairs. Excel developed a technology to convert vegetable-market-garbage into rich organic manure and demonstrated the effectiveness of this manure by growing fruits and vegetables in public land, which used to be barren. In the Kutch area, where the rainfall was scanty and streams were few, Excel had pioneered technologies for preserving whatever water was available. cattle husbandry techniques had been developed using only local breeds, and operating in local condition of nature.

Products manufactured by Excel (1992)


industrial chemicals Phosphorus elemental Phosphorus pentasulphide Phosphorus trichloride Ferro Phosphorus Di Ethyl Thio Phosphoryl Chloride (DETC) Di Ethyl Thio Phosphoric acid (DETA) Di Ethyl Methyl Phosphoric Chloride (DMTC) Di Ethyl Methyl Phosphoric acid (DMTA) Oxalic acid Diethyl oxalate Sodium penta chlorophenate . Agricultural chemicals Endocel technical Endocel 35 EC Celphos Glycel technical Glycel 41% SL Emisan-6 Commando

Speciality chemicals (water treatment) Sequacel range Acexcel rang Apexcel rang (Fire retardant) Chlorendic anhydrude

Also in supply of agro-products, anything short of quality products to the farmers would case damage to the crop in particular and the nation in general.