I took opportunity to express my gratitude to all who have guided and helped me during the project
for making this a meaningful work. At the outset, I would like to mention my deep respect for my
parents who always stood beside me, and without their support, it would have not been possible to
complete this project work.
It is now my turn to express my sincere gratitude to. Prof (Dr.) Tamal Datta Chaudhuri, Dean; I
would like express my deep regards to. Prof (Dr.) Tamal Datta Chaudhuri, for guiding me and
encouraging me to complete this project. I shall fail in my duties if I do not express my heartfelt
regards to all other faculty members of Calcutta Business School for supporting me and providing
necessary insight. I would like to conclude by extending my appreciation to all staff members and
my fellow classmates for their necessary support.
EXECUTIVE SUMMARY
Tata Chemicals Limited (TCL) is a global company with interests in businesses that focus on LIFE
— living, industrialand farming essentials. It is the world's second-largest producer of soda ash.
With manufacturing facilities in India,UK, US and Kenya, TCL is the world’s most geographically
diversified soda ash company, with an efficient supplychain that can service customers across the
globe.Established in 1939 at Mithapur (in Gujarat, India), TCL is a part of the Tata group. It is a
leading player in the agribusiness sector with a strong presence in crop nutrients (urea
andphosphatic fertilisers) and crop protection products. The company is a pioneer and market
leader in the Indianbranded iodised salt segment through its pioneering brand Tata Salt.TCL’s
global soda ash capacity is around 5.5million tonnes per annum, out of which 60 per cent capacity
is from natural soda ash deposits at Wyoming in the USand Lake Magadi in Kenya. Along with
soda ash (sodium carbonate), the company also manufactures sodiumbicarbonate and bulk
chemicals such as sulphuric acid, phosphoric acid, and sodium tripoly phosphate (STPP).
Thecompany has extended its operations into the services sector and touches lives through
applications in agriculture,animal nutrition, construction, consumer products, glass, metals,
pharmaceuticals, soaps and detergents, and textilesand leather industries.
PREFACE
Critical analysis of an Organization is a paper in which we apply all our basic concepts that we
have learnt in our previous year and by applying those ideas and concepts we analyse the
performance of an organization and link it to corporate level strategy and business level strategy.
The analysis of an organization is done by tools and techniques, analytical frameworks and these
help to understand and know the Vision and Mission of the organization, and the process of
management that is visible in the company, the growth prospects, the market size, the customer
profile, the competitive position and financial performance.
The above mentioned course can be learnt by observing of annual reports of Indian companies,
which will help us to measure the respective performance of an organization.
1. Personal investment portfolio- If we study about a company we would know about its
financial status and hence we would get an idea whether we should invest our money in this
respective company and what amount of returns will we get back from our initial investment.
2. Analyst Job- Analyst Job is specific as we would have the required skills to analyse a
organization on certain predefined parameters.
3. Advisor- We can advise people related to any information of a selected company and tell
them whether this company would be beneficial for them and what all future prospects are
available for the company for its required growth.
4. Develop a appreciation for each and every company and our concept of criticizing a
company would be minimized as if a company is there then it must be having a customer base and
must be making profits and returns, so no company is good or bad all are there to sustain their
respective business.
Introduction
Tata Chemicals Limited (‘the Company or ‘TCL) is a global company with interests in
businesses that focus on Living, Industry and Farm Essentials. The story of the Company is
about harnessing the fruits of science for goals that go beyond business.
The Company started its journey in Mithapur, Gujarat in Western India in 1939 with the creation
of a small plant that would raise a wealth of marine chemicals from the ocean, with a potential
to touch human lives in many ways. From these humble beginnings, a global international
business was evolved, with operations across the four continents located in India, UK, Kenya
and USA. TCL is the worlds second largest producer of soda ash with manufacturing facilities
in North America, Europe, Asia and Africa, reaches over 148 million households through its
Tata Salt brand portfolio in India and covers 80% of Indias districts impacting over 5 million
farmers through its subsidiaries, Rallis India Limited (‘Rallis) and Metahelix Life Sciences
Limited (‘Metahelix). To fuel TCLs existing growth and also build a pipeline o f innovative
products for the future, the Company has established world class R&D facilities such as the
Innovation Centre in Pune and Rallis Innovation Chemistry Hub (‘RICH) in Bangalore. TCL’s
R&D facilities are home to capabilities in nanotechnology, biotechnology, food science and
technology and nutrition science.
Apart from innovation, sustainability is also at the core of all of Tata Chemicals activities. This
includes TCLs social responsibility initiatives and is intricately woven into all of the Companys
business functions. The Company continues to transform itself from a commodity and an
inorganic chemicals manufacturer towards providing wellness solutions, with a strong focus on
consumer, agri and specialty businesses, while further strengthening its core. TCL is making
significant progress in its transformation journey by focusing on building brands through
greater customer centricity and technology led differentiation. The Company has also embarked
on simplification of its business processes, customer experience, portfolio and structures to
achieve its transformation goals. TCL is also addressing requisite capability building in each of
its businesses to drive long term value creation for stakeholders
Brief History/ Milestone of The Company
1927
1937
1955
Production of technical grade benzene hexachloride (a pesticide) starts.
1956
1957
1979
Relief and rehabilitation programmes undertaken for those affected by Morvi floods.
1980
Develops new salt works.
Tata Chemicals Society for Rural Development established to improve quality of life in
Okhamandal villages.
1992
Regional development programme for Okhamandal villages started.
Tata Shudh detergent launched.
1993
New cement plant started in Mithapur.
1994
Fertiliser plant at Babrala commissioned in 36 months, a world record for setting up a
fertiliser plant.
2002
Mithapur plant, India awarded the ISO 14001 certificate.
2003
Tata Salt ranked No. 1 Food brand in Brand Equity Survey of India's most trusted brands.
Mithapur becomes the first industrial township to be awarded the ISO 14001 certificate.
Fertiliser plant gets ISO 14001 and OHSAS 18001 certification.
2004
Sets up the Innovation Centre to develop world-class R&D capability in the emerging areas
of nanotechnology and biotechnology.
2005
First step towards internationalisation – Tata Chemicals acquires stake in Indo Maroc
Phosphore SA (IMACID).
2006
Tata Chemicals completes acquisition of UK-based Brunner Mond Group, one of the
world's leading manufacturers of soda ash and associated alkaline products.
2008
Tata Chemicals becomes world's second largest soda ash manufacturer after acquiring US-
based General Chemical Industrial Products (GCIP).
2009
Tata Chemicals launches I-Shakti Cooking Soda – refined sodium bicarbonate.
Tata Chemicals launches 'Tata Swach' water purifier, designed to tackle one of India's
biggest social and technological challenges – the need for safe drinking water.
2010
Tata Chemicals launches I-Shakti dals and pulses.
Rallis India acquires majority stake in Metahelix Life Sciences.
Tata Chemicals acquires 100 percent stake in leading vacuum salt producer British Salt,
UK.
2011
Tata Chemicals rebrands global subsidiaries - Tata Chemicals North America (General
Chemical Industrial Products), Tata Chemicals Magadi (Magadi Soda Company), Tata
Chemicals Europe (Brunner Mond and British Salt).
Acquires stake in EPM Mining Ventures, Canada.
2012
Tata Salt launches its flavoured variants - 'Flavoritz'.
Tata Salt Plus, India's first iodine plus iron fortified salt launched.
2013
Tata Chemicals's efforts help save more than 350 whale sharks.
Tata Chemicals signs MoU with the Institute of Chemical Technology to set up endowment
chair.
Tata Chemicals launches innovative organic plant growth regulators – FarmGro and
FarmGro G.
2014
Tata Chemicals launches Paras 20:20:0:13 ammonium phosphate sulphate fertilizer.
State-of-art innovation centre inaugurated in Pune.
Tata Chemicals completes 75 years in business.
2015
Tata Chemicals signs MoU with Tata Community Initiatives Trust to build the first skill
development centre under Tata Strive.
Tata Chemicals launches Tata Sampann with a focus on providing everyday nourishing
foods.
2017-18
Completes sale and transfer of Urea Business (Babrala) to Yara Fertilisers India .
Starts construction of 5,000 MT manufacturing plant of fructooligosaccharides in Nellore,
Andhra Pradesh.
Acquires the precipitated silica business of Allied Silica in Cuddalore, Tamil Nadu; starts
manufacturing Highly Dispersible Silica (HDS).
Launches new Tata Sampann products — Multigrain Khichdi, Nutri Mix Chillas and
Organic Pulses.
Launches MedikarbTM, India’s — first branded pharmaceutical-grade sodium bicarbonate.
Ranks no 1 in the Responsible Business Rankings 2017, a report co-produced by the Indian
Institute of Management, Udaipur and Futurescape Netcom .
Scores Grade B under climate change performance management category in CDP 17 and
stands 1st under material category.
Operations:
1.1 India Operations: During the year under review, the Inorganic Chemicals Business
achieved revenue on standalone basis of Rs. 3,376.83 crore against Rs. 3,459.80 crore in the
previous year, a marginal decrease of 2.4%.
FY 2017-18 was another year of strong financial and operational performance for the Indian
Chemical Operations. This performance was achieved in a challenging business environment
marked by increase in input energy costs and competitive pressures emanating from domestic
and global capacity additions in the key product. This performance was made possible largely
through operational excellence with relentless focus on optimising the costs and serving
customers efficiently.
The business continued to maximise throughput of all key products. Significant rise in the input
energy costs led to some pressure on profitability which was more than adequately compensated
by a strict control on the operational costs.
Soda Ash: Domestic demand for soda ash grew at 12% for the year, driven by a broad based
growth in key application industries including glass and detergents. The manufacturing volumes
at Mithapur remained flat at 8.17 lakh tonnes p.a. while the sales volume at 6.93 lakh tonnes
p.a. was marginally lower than the corresponding figure of 7.08 lakh tonnes p.a. in the previous
year, mainly on account of higher captive consumption of soda ash to produce sodium
bicarbonate. In order to meet the higher customer requirements during the year, the business
also supplemented its Mithapur soda ash volumes with imports from TCL group companies and
others. The Company launched "Detmate", a branded speckle grade soda ash offering for the
detergent segment. The strong growth in demand and the firming up of the international prices
during the year contributed to better price realisations.
Sodium Bicarbonate: In line with its long-term growth rate, the domestic sodium bicarbonate
(‘bicarb) demand registered a growth of 13% p.a. in FY 2017-18. The Company continues to
focus on both volume and value growth of bicarb. Mithapur registered the highest ever bicarb
production of 1.06 lakh tonnes p.a. (against 1.01 lakh tonnes p.a. in the previous year) and
highest sales volume of 1.06 lakh tonnes p.a. (against 1.01 lakh tonnes p.a. in the previous year),
including the sales in small consumer packs. In line with our strategy to increase the share of
higher value grades in bicarb, the Company also launched "Medikarb", a pharmaceutical gr ade
product which received excellent response from customers. The price realisations for bicarb
showed good gains as the share of value added and differentiated brands targeted towards
specific consumer segments of the bicarb portfolio continued to show strong growth.
Cement: The cement market scenario showed improvement in both demand and price
realisation in the Companys targeted markets in Gujarat. Cement production volumes were at
approximately 5.00 lakh tonnes during the year under review against 5.16 lakh tonnes during
the previous year. Cement sales during the year were at approximately 4.83 lakh tonnes against
5.08 lakh tonnes during the previous year. While production and sales volume of cement were
marginally lower than the corresponding figures in the previous year due to operational
constraints, its price realisations and profitability improved significantly during the year,
largely due to its rigorous quality focus and customer connect initiatives undertaken during the
year.
Salt: During the year, the Iodised salt production in Mithapur was 9,60,596 tonnes, 4.4% higher
than the previous year. Overall, branded salt sales were at 10,58,772 tonnes in FY 2017 -18.
Tata Salt grew by 2.2% in sales volume over the previous year to reach sales volume of 9,24,863
tonnes in FY 2017-18. It continues to be the largest distributed brand with a reach of 17.8 lakh
retail outlets across India. Tata Salt Lite grew by 3.3% in sales volume and achieved volumes
of 20,261 tonnes in FY 2017-18. I-Shakti salt continued to drive the iodisation movement,
complimenting Tata Salt with a sale of 91,656 tonnes in FY 2017-18.
3. Others
During the year, the ‘Others segment including pulses, spices, water purifiers and nutritional
solutions achieved a total revenue of Rs. 146.07 crore against Rs. 374.83 crore in the previous
year, down by 61.0%.
Pulses: Tata Sampann is the only national player in the branded packaged pulses space. This
year, pulses production in India saw a growth of around 20% over last three-year average. This
has resulted in low prices throughout the year. The Company has continued to focus on protein
delivery through pilot launches in various platforms like dal based mixes and organic pulses.
The Company has also realigned the go-to-market model to improve freshness on shelf and
focused specially on the modern distribution channels.
Spices: During the year, three new variants were added in the Tata Sampann spices portfolio
viz. Sambhar Masala, Pav Bhaji Masala and Chat Masala. The "Aaj Ka Masaledar Sach"
campaign continued to drive communication regarding the superiority of Tata Sampann spices.
The Company continued to focus on modern channels and e-commerce along with investments
in brand to create a differentiated proposition.
Water Purifiers: Water purifier business continued to promote affordable clean drinking water
through alternate marketing channels including partnering with NGOs, village level
entrepreneurs and introduction of more cost-effective products. This year the water purifier
business introduced community based gravity non-electric water purification solutions
targeting schools and small hamlets.
During the current year, following the decision to give increased impetus and greater access to
clean drinking water, the water purifier business will be taken up through a social enterprise
foundation, Ncourage Social Enterprise Foundation. This Foundation was incorporated under
Section 8 of the Companies Act, 2013 (‘the Act) by the Company to establish and promote
social businesses which provide business solutions to social issues and will initially focus on
clean drinking water.
Fertilizer Business (Discontinued Business): As mentioned above, the Company sold the
Urea and Customised Fertiliser business situated at Babrala, Uttar Pradesh to Yara India
effective 12 January, 2018. During the year under review, the Company also entered into a
Business Transfer Agreement with IRC Agrochemicals Private Limited, a subsidiary of
Indorama Holdings B.V., Netherlands, for the sale of its Phosphatic Fertilisers Business and the
Trading Business comprising bulk and non-bulk fertilisers situated at Haldia, West Bengal
subject to certain regulatory and other approvals. The Company is intending to close the
pesticides and seeds business and has considerably wound down the same during the year. In
view of the above, the entire business is now classified as Discontinued Operations in the
financial statements for the year ended 31 March, 2018.
During the year, sales revenue of Discontinued Operations stood at Rs. 4,086.91 crore against
Rs. 4,616.80 crore in the previous year. The Profit after Tax from Discontinued Operations was
Rs. 1,142.49 crore against Rs. 113.47 crore in the previous year (includes exceptional items of
Rs. 1,213.99 crore).
Product Portfolio
Tata Chemicals
Transforming to a Consumer Product Focused Company: Now, Tata Chemical focusing more
on consumer and speciality product. The commodity business (73% of revenue) as of FY 17
includes soda ash, sodium bicarbonate, cement and fertilizers. The S&C business (27% revenue in
FY17) includes salt, agri inputs, pulses, spices and nutritional solutions. As planned, Tata chemical
has exited from highly regulated fertilizer business (urea and phosphoric), allowing to focus more
of the efficient s&c business. The company aims to take the total contribution of this business is
to 50% based on its planned product pipeline.
Reducing Debt: Company has sold its urea and customized fertilizer business in Babrala to Yara
Fertilizer India in August 2016 for INR 26.8B. The transfer of assets to Yara was completed on 12
January 2018. It also sold its phosphotic fertilizer in November 2017 for INR 3.75b excluding
outstanding subsidy amounts. The move was driven by company’s plan to build the consumer and
inorganic chemical businesses, and to focus on the farm business through subsidiaries, Rallies and
Metahelix. This would help company to focus more on the commodity and speciality & consumer
businesses and thus faster growth.
Company was also able to reduce its working capital by selling the urea business- note that the
fertilizer business is government-regulated and requires significant investment. Sale of the urea
segment proved beneficial for company as working capital in this business accounted for 31% of
the company’s overall working capital.
Company has reduced debt through focus on working capital, ultimately leading to a reduction in
the debt to equity ratio to 0.7x in FY17 from 1.1x in FY16.
Theoretical Framework
SWOT Analysis
Strengths Weakness
• Leveraging Tata Brands • Saturated soda market, low scope for
• 25% share of Indian salt market growth
• Second largest and most diversified • Due to global operations, company is
soda ash producer in the world exposed to foreign exchange risk
• Strong R&D set up.
• Resources and capabilities.
Oppertunities Threats
• HDS, FOS and GOS products are • Sudden increase in soda ash
relatively niche and could prove to be production from Turkey disrupting
major sucess factors. market dynamics.
• Ample headroom to increase • Increasing competition in salt business
distribution network
BCG MATRIX
Porter,s Five Forces
Economies of Scale
Government Policies
Threat of substitute products: Low
There is no direct substitute for a specific chemical product.
Bargaining power of suppliers: Moderate
Supplier can influence the industry by deciding on the price at which the raw material can
be sold.
Switching cost for supplier is high.
Bargaining Power of customers: Moderate
Customers have multiple source of supply.
Brand image of Tata attracts customer.
Rivalry among existing competitors: Low
Tata chemicals has high concentration ratio.
CSR Activity
Purpose: Tata Chemicals is committed to upholding the highest standards of corporate social
responsibility. They endorse the Tata Group Purpose of improving the quality of life of the
communities and serve through long term stakeholder value creation. They believe in positively
impacting the environment and supporting the communities They operate in, focusing on
sustainability of their programs and empowerment of their communities.
Serve - and be seen to serve - society, local and national goals in all the countries where
they operate.
Create a significant and sustained impact on communities affected by their businesses.
Provide opportunities to their employees, customers and partners to contribute to these
efforts through volunteering.
Play a significant role in promotion of inclusive growth through empowerment of farmers,
women and socially and economically weaker sections of society.
Build partnerships and promote innovation through incubation of ideas and technology to
address societal needs.
Their CSR initiative called BEACoN - the guiding light shall focus on the following sectors and
issues:
ln addition, they will respond to any disasters, depending upon where they occur and their own
ability to respond meaningfully.
Resources:
They propose to deploy the following resources for their CSR activities:
Funds: At the minimum, 2% of average net standalone lndia profits of the past 3 years as
per lndia's Companies Act 2013.
Expertise: Of their employees through structured volunteering programme hope.
Facilities: Our offices and plant sites.
Resources from their business partner.
Resource from other organizations within and outside the Tata group.
Any surpluses arising out of CSR projects or programmes or activities shall not form a part of the
business profits of the company.
The geographical focus of the company's CSR activities will be where they have a significant
presence. Currently, these are the states of Gujarat, Uttar Pradesh, West Bengal, Maharashtra and
Tamil Nadu. ln these geographies, they would concentrate their efforts on villages and habitations
within a 50 km radius of their plants and offices. The specific locations will be determined at the
beginning of each year.
They implement their CSR activities in a number of ways: Directly through their in-house teams
and through their Trusts and societies viz.Tata Chemicals society for Rural Development, Okhai-
centre for Empowerment, Uday Foundation and Golden Jubilee foundation, The Tatia Trusts and
organisations set up to implement Tata Group Focus lnitiatives and through external expert
agencies and partners.
lmplementation of this policy will be monitored and reviewed periodically through a three tier
structure comprising: CSR committee of the Board, CSR steering committee and CSR teams at
the corporate offices and manufacturing plants.
Company’s Efficiency
Gross Profit Margin: Gross profit ratio expresses the relationship between gross profit and sales.
Table No. 1.1: Gross profit ratio of Tata chemicals
Year 2012- 2013- 2014- 2015- 2016-
13 14 15 16 17
Gross Profit Ratio 17.36 12.27 13.22 14.9 21.84
Due to increase in manufacturing cost gross profit went down in the year 2013-14. Otherwise, it
is showing upward trend.
Net Profit Margin: Net profit ratio show the relationship between net profit and sales.
Table No. 1.2: Net Profit Ratio of Tata Chemicals
Year 2012- 2013- 2014- 2015- 2016-
13 14 15 16 17
Net Profit Margin 4.1 -5.08 4.69 6.66 11.77
Current Ratio
Table No. 1.3: Current Ratio of Tata Chemicals
Year 2012- 2013- 2014- 2015- 2016-
13 14 15 16 17
Current Ratio 1.23 1.44 1.18 1.51 1.32
%Free Float- In case of Tata Chemicals %Free Float is 69.37. which is high and shows public
faith in this company.
Company’s mission statement, vision and values are an important way of explaining what are the
company’s goal, for what company stands and what makes it special.
In the Tata group, company’s mission is to improve the quality of life for the communities they
serve globally, through long-term stakeholder value creation based on leadership with trust.
Company believes in innovation and R&D, till 31 March 2017, company has filed 74 patents.
Product Innovation:
Surplus
Blast Resistant Rice
Tata Nx
Tata NQ
P/E Ratio
P/BVPS
Sustainability Vision:
They are committed to integrate environmental, social and ethical principles into their business,
which is central to improving the quality of life of the communities they serve globally and
enhancing long-term stakeholder value.
Their Principles:
Integrate sustainability considerations into business decisions and key work processes, with the
aim of creating value, mitigating future risks and maximising opportunities.
Follow highest standards of governance and transparency.
Embody principles of product stewardship by enhancing health, safety, environmental and social
impacts of products and services across their lifecycles
Provide employees and business associates with working conditions that are clean, safe, healthy
and fair.
Strive to be neighbour of choice in the communities in which they operate and contribute to their
equitable and inclusive development.
Economic Performance
Tata Chemicals' sustainability initiatives and their direct and indirect engagement with the
communities in which they serve has made a huge impact on the economy of the geographies in
which they operate
One of the biggest private sector organisations, Tata Chemicals’ economic sustainability impacts
the national economy as well as that of its operating areas.
Besides direct generation of employment in their areas of operations, they also indirectly offer
opportunities for income generation. Ancillary activities such as civil, and other, contract
workmen, transporters, and other goods and services that service these people, etc., provide
livelihoods for thousands of people. They are equally concerned with the overall upliftment of the
nearby community, especially that of the underprivileged. Either directly, or through the Tata
Chemicals Society for Rural Development (TCSRD), they help improve infrastructure such as
roads, provide brick paved tracks, construction and repair of schools, piped water supply, rural
electrification, construction of cattle sheds, etc. Through watershed development and water
management programmes, they have provided succour to approximately 100,000 people, helping
them get water for drinking and irrigation. They have also established ‘Uday’, a rural BPO setup
at Mithapur in partnership with Tata Business Support Services to help bridge the digital divide
between the rural and urban population and provide employment. ‘Okhai’, promoting rural
handicrafts made by communities around Mithapur, is now becoming a well-known brand for
handicrafts and garments.
Graph shows total direct economic value generated revenue by TCL during 2010-15
16000
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12000
10000
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6000
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0
2010-11 2011-12 2012-13 2013-14 2014-15
YEAR
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Borrowing cost Community Dividends to all Employee Minority & Payments to
& foregin investments shareholders wages & associates government -
exchange loss benefits - Company taxes
on borrowings Employee
(Net) Salaries
Employee Well Being
TCL thinks that their biggest capital is their employee and for that they have taken various
initiatives that have been launched to promote employee safety, engagement, health and education.
Ensuring a safe work environment for their employees continues to be an area of focus. They have
launched many interventions such as audits, training, rewards, recognitions and process/design
improvements.
The company has a set of employee-friendly people policies and benefits which they review every
year to ensure the policies are contemporary, and aligned to their values. All employees are
covered under Group Personal Accident Insurance/Workmen Compensation Insurance.
A Group Gratuity Scheme has been initiated for contract workmen at Mithapur. They also have a
Suraksha Scheme for contract workmen to cover financial assistance towards death/disablement.
Special care is provided for women employees with regard to amenities, travel, child care, flexi
hours, etc.
They monitor workforce health through annual health check-ups. Medical facilities and medical
officers are available at all plant site locations to quickly respond to any eventuality.
Several learning initiatives are made available to the employees across the organisation to build or
enhance role-critical competencies through functional, behavioural and leadership training in these
areas. These include Jagruti for the front-line field force in Agri business, technical capability
programmes at manufacturing sites, on-the-job projects by the Management Development
Programme (MDP), and extensive focus on safety awareness initiatives. The MDP has been
redesigned to incorporate relevant inputs to enable people to handle future challenges. Employees
can continuously upgrade their competencies/skills at their own pace from any location through
various e-learning platforms such as Skill Soft.
They have a Katalyst Program to develop and deploy internal faculty for programmes like AMT,
Safety, Sustainability, MBE, LSS, technical training, etc. Besides saving costs on external
facilitators, this initiative acts as a great motivator for internal talent.
Employee Engagement
To ensure a supportive and encouraging work environment, TCL has focused its efforts towards
employee engagement and regular monitoring of employee engagement levels.
While TCL uses a number of formal and informal mechanisms to assess the engagement levels
of its workforce, the annual global Employee Engagement Survey (Xpress), which guarantees
anonymity to the respondent, gives a true picture of the employee engagement levels.
The other mechanisms to gauge employee engagement are through FGDs, skill level meetings,
town halls and exit surveys for various workforce. These inputs have ushered in policy-related
changes, for example, work flexi timings at office locations, paternity leave, health and wellness,
etc.
Goal and strategy alignment, performance linked scheme, communication channels, township
benefits and allowance, rewards and recognition, are some of the examples of how engagement
levels are sustained.
The leadership team interacts with the new candidates in every quarter through the ‘Let’s Chat’
forum. Other informal engagement measures include participation in organisational initiatives
like cross-functional teams (CFTs), theatres, cultural events, family days, CSR events, etc.
Diversity
TCL is an Equal Opportunity Employer and also follows the diversity agenda of the Tata Group
with a focus on gender diversity and affirmative actions. A Diversity Council has been set up in
India with members from various businesses to drive the agenda. The focussed effort has led to
one percent increase in women employees in India this year.
Safety and Health
Tata Chemicals Limited (TCL)'s ongoing journey towards 'Target Zero Harm' is focused on key
challenges while balancing stakeholder needs.
The company deals with the challenges of chemical hazards and occupational safety and health.
Their CSR, Safety and Sustainability (CSS) committee was formed to focus exclusively on these
challenges. The Corporate SHE policy is an umbrella policy, and subsidiaries' policies align with
local regulatory and safety directorates. Voluntary standards, such as OHSAS 18001, British
Safety Council guidelines and AIChE-CCPS guidelines, help ensure continual improvement in
SHE performance. British Safety Council awarded their fertiliser manufacturing sites with the
'Sword of Honour' award. In 2014-15, the Mithapur and Haldia plants were recertified for British
Safety Council's 5-star rating.
Their journey towards 'Target Zero Harm' ensures that their Long-Term Strategic Plan (LTSP)
focuses on key SHE challenges and risks, while balancing stakeholder needs. These are evaluated
from an engineering and/or process improvement perspective. Safety performance is linked to
individual Performance Linked Variable Pay (PLVP) or incentives. Senior leadership plays a
critical role in fostering a culture of safety by establishing clear and transparent policies. Their
cross-functional teams for safety improvement initiatives includes:
The company protects the interests of its employees by providing them with appropriate and up-
to-date training and access to development programmes. Health monitoring of its employees
include regular health check-ups, special health checks for employees working in hazardous areas,
eye, audiometry and PF tests, ergonomic surveys, stress management, yoga, first aid training, and
other training workshops.
By adhering to world class safety standards, promoting product stewardship and operational safety,
and encouraging the active participation of every employee and key value chain partners TCL has
created a healthy work environment that complements its superior product line.