EXECUTIVE SUMMARY:

Dhrangadhra Chemical Works (DCW) is a leading manufacturer of chemicals

and petrochemicals in India. The company was founded in 1946 and is headquartered in
Dhrangadhra, Gujarat. DCW has a wide range of products, including caustic soda,
chlorine, PVC, and fertilizers. The company has a strong focus on research and
development and is constantly developing new products and processes.

The DCW was successful for a number of reasons. namely, it is located in a region with
abundant natural resources, including salt, limestone, and water. These resources were
essential for the production of soda ash, which was the DCW's main product. In addition
to, it provides jobs, boosts the economy, and supports environmental sustainability. While
it is not without its flaws, the company is working to address all its issues in every possible
ways.

Dhrangadhra Chemical Works Ltd. (DCW) is a leading manufacturer of chemicals in

India. However, there are still some areas where the company can improve. These
include,Product innovation, Process efficiency , Safety ,Corporate social responsibility
by improving in these areas, DCW can become a more competitive and sustainable
company. some of the best solutions for sustainable transformation in Dhrangadhra
Chemical Works Ltd. Are Energy efficiency , Water conservation , Sustainable
transportation, Switch to renewable energy sources ,Reduce waste production , Invest
in research and development of new sustainable technologies, Educate employees and
customers about sustainability by taking these steps, DCW can become a more
sustainable company and help to protect the environment.

The best solution for balancing profitability and environmental sustainability in

Dhrangadhra Chemical Works Ltd. would be to implement a number of changes,
including Investing in new technologies that reduce pollution, Improving energy
efficiency, Switching to cleaner fuels Reducing waste, Educating employees about
environmental sustainability by implementing these changes, Dhrangadhra Chemical
Works Ltd. can improve its profitability while also reducing its environmental impact.
This will benefit the company, its employees

V
 TABLE OF CONTENTS
CHAPTER CONTENT PAGE NO

LIST OF TABLES
LIST OF FIGURES
1 ORGANIZATIONAL PROFILE 1
1.1 INDUSTRY PROFILE 2
1.1.1 GLOBAL CONTEXT 4
1.1.2 NATIONAL CONTEXT 4
1.1.3 REGIONAL CONTEXT 5
1.2 ORIGIN OF THE COMPANY 5
1.3 ORGANIZATIONAL STRUCTURE 7
1.4 FUNCTIONAL AREAS OF THE COMPANY 8
1.4.1 HUMAN RESOURCES 8
1.4.2 FINANCE 9
1.4.3 PRODUCTION 12
1.4.4 SALES 13
1.4.5 PURCHASE 14
1.4.6 HEALTH & SAFETY 15
1.5 RECENT DEVELOPMENT OF THE COMPANY 17
1.6 FUTURE PLAN 18
1.7 PRODUCT DETAILS 19
1.8 COMPETITOR BASED ANALYSIS 24
1.9 MAJOR COMPETITORS 25
1.10 AREAS OF IMPROVEMENT 30
2 CASE STUDY DESCRIPTION 32
2.1 PROBLEM IDENTIFIED 33
2.2 PROBLEM STATEMENT 33
2.3 KEY AREAS ADDRESSED 36
2.4 CONCEPTUAL OUTLAY 38
2.5 ASSUMPTIONS 41

VI
 2.6 PREDICTED OUTCOME 42
3 ANALYSIS AND RECOMMENDATIONS 45
3.1 SWOT AND FINANCIAL ANALYSIS 46
3.2 ANALYSIS OF PROBLEM IN ELABORATE
WITH FACTS AND FIGURES 48
3.3 SOLUTIONS ADDRESSED 51
3.4 BEST SOLUTION IDENTIFIED 54
BIBLIOGRAPHY 57

LIST OF FIGURES
FIGURE NO FIGURE NAME PAGE NO

1.2 LOGO OF DCW 6

1.3 ORGANIZATIONAL STRUCTURE 7
1.7 SEGMENT WISE REVENUE 24
1.9.1 DEEPAK NITRITE LTD 26
1.9.2 ELANTAS BECK INDIA LTD 26
1.9.3 HEUBACH COLORANTS INDIA LTD 27
1.9.4 KANORIA CHEMICALS & INDUSTRIES LTD 28
1.9.5 KKALPANA INDUSTRIES (INDIA) LTD 29
2.2.1 BCG MATRIX 35

LIST OF TABLES

TABLE NO CONTENT PAGE NO

1.9 COMPETITORS ANALYSIS 30
3.1.1 FINANCIAL PERFORMANCE 47

VII
 CHAPTER 1

ORGANIZATIONAL PROFILE

1
1.1 INDUSTRY PROFILE

The chemical industry is a vast and complex industry that plays a vital role in the global
economy. It produces a wide range of products, from basic chemicals to specialty
chemicals, and its products are used in almost every sector of the economy.

The chemical industry is divided into three main sectors: basic chemicals, specialty
chemicals, and consumer chemicals.

• Basic chemicals are the foundation of the chemical industry. They are used to
produce other chemicals, plastics, and consumer products. The main types of
basic chemicals are inorganic chemicals, organic chemicals, and polymers.

• Specialty chemicals are chemicals that have a specific purpose or application.

They are used in a wide range of industries, including agriculture,
pharmaceuticals, and electronics. The main types of specialty chemicals are
catalysts, pigments, and surfactants.

• Consumer chemicals are chemicals that are used by consumers in their homes
and businesses. They include detergents, cosmetics, and paints.

The chemical industry is a global industry, with major producers in North America,
Europe, and Asia. The United States is the world's largest producer of chemicals,
followed by China and Germany.

The chemical industry is a major driver of economic growth. It employs millions of

people around the world and generates billions of dollars in revenue. The industry is
also a major source of innovation, with new chemicals being developed all the time.

The chemical industry faces a number of challenges, including:

• Environmental regulations: The chemical industry is a major polluter, and it

faces increasing regulations on its emissions.

• Competition from emerging markets: The chemical industry is facing increasing

competition from emerging markets, such as China and India.

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 • The rise of green chemistry: Green chemistry is a movement to develop
chemicals that are more environmentally friendly. This is a major challenge for
the chemical industry, as it needs to find ways to produce chemicals that are
both effective and environmentally friendly.

Despite these challenges, the chemical industry is expected to continue to grow in the
coming years. The demand for chemicals is expected to increase as the global
population grows and as economies develop. The chemical industry is also expected to
benefit from the growth of new technologies, such as biotechnology and
nanotechnology.

Here are some specific industry trends that are expected to shape the chemical industry
in the coming years:

• The growth of specialty chemicals: The demand for specialty chemicals is

expected to grow as companies look for new ways to improve their products and
processes.

• The rise of green chemistry: Green chemistry is expected to become increasingly

important as companies look for ways to reduce their environmental impact.

• The development of new technologies: The chemical industry is expected to

benefit from the development of new technologies, such as biotechnology and
nanotechnology.

The chemical industry is a dynamic and growing industry that plays a vital role in the
global economy. It is expected to continue to grow in the coming years, and it is likely
to face a number of challenges along the way. However, the industry is also likely to
benefit from new technologies and trends, and it is well-positioned to continue to grow
and thrive in the years to come.

3
1.1.1 GLOBAL CONTEXT

A niche and diversified product mix combined with their relentless

commitment to quality has enabled them to truly compete on the global stage so that
today, DCW meets customer demand across the globe from North America to the EU as
well as Asian markets. Their product range provides key ingredients across multiple
industries from agricultural products to detergents, food, pharmaceuticals, pigments,
fertilizers, alumina and other industrial products.

DCW exports its Synthetic Rutile to major global consumers like TOHO Titanium Co,
Osaka Titanium Technologies Co & Ishihara Sangyo Kaisha in Japan, Chemours
Titanium in USA and TOR Minerals in Malaysia. SIOP gets exported to large
consumers like Colorbiotics, A brand of MBCC Group & Venator LLC in USA.

1.1.2 NATIONAL CONTEXT

DCW Limited operates as a heavy chemical manufacturing company in India. First

incorporated in 1939 with India’s first Soda Ash factory in Dhrangadhra, Gujarat. DCW
Limited is a leading manufacturer of niche speciality chemicals in India. DCW has
steadily evolved over 8 decades to become one of the country’s fastest growing
chemical companies. India ranks 14th in chemical products’ exports and 8th in imports.
DCW was the first, and is currently the only Indian producer to handle and store
imported VCM, a volatile gas.

The company's location in Gujarat has given it access to a large pool of skilled workers
and a supportive government. The growing demand for chemicals in India has also been
a boon for the company. DCW is a well-positioned company in the Indian chemical
industry. The company has a strong track record, a diversified product portfolio, and a
global presence. DCW is also investing in research and development to stay ahead of
the competition. DCW also has an competitive advantage because of its low cost
effectiveness.

In recent years, DCW has expanded its operations to other parts of India. The company
has also started exporting its products to other countries. DCW is now a major player in
the global chemical industry.

4
 The Indian chemical industry stood at US$ 232 billion in 2022, and is expected to reach
US$ 304 billion by 2025.Through the years, they have diversified their product
portfolio, transitioning from commodity to intermediate and specialty chemicals,
focused heavily on capital expansion and innovated new products and processes.

1.1.3 REGIONAL CONTEXT

Dhrangadhra Chemical Works (DCW) is a leading manufacturer of soda ash, caustic

soda, and chlorine in India. The company has its headquarters in Dhrangadhra, Gujarat,
and has a regional presence in the Saurashtra region.

DCW is a major contributor to the regional economy of Saurashtra. The company is

located in region with a long history of chemical production, where the place is rich in
natural resources that are essential for the chemical industry. The company's operations
provide employment to thousands of people and generate significant revenue for the
government. DCW is also a leading exporter of products from the region, which helps to
boost the local economy. In recent years, DCW has faced some challenges, including
the rise of competition from Chinese manufacturers. However, the company has
responded by investing in new technologies and expanding its product range. DCW is
well-positioned to continue to be a major player in the regional chemical industry in the
years to come.

DCW is a leading chemical company with a strong regional presence. The Company
offers a diverse range of products focusing on commodity, speciality, and intermediate
products. The Company serves customers in both the domestic and international
markets. Depending on the demand-supply scenario, the intermediate products are
either used to produce value-added speciality chemicals in-house or sold in the open
markets. The company is well-positioned to continue to grow in the years to come.

1.2 ORIGIN OF THE COMPANY

The origin of Dhrangadhra Chemical Works (DCW) can be traced back to 1925, when
India's first soda ash factory was established in Dhrangadhra, Gujarat. The factory was

5
founded by a group of local businessmen, led by Shri Keshavlal Devchand Mehta. The
factory was a major success, and it quickly became a leading supplier of soda ash in
India. In 1936, the factory was taken over by the British firm, Imperial Chemical
Industries (ICI). ICI renamed the factory as "Dhrangadhra Chemical Works", and it
continued to operate under that name until 1939.

In 1939, DCW was incorporated as a public limited company. The company's

headquarters were moved to Ahmedabad, and it began to expand its product range to
include other chemicals, such as caustic soda and chlorine.

In the years since its incorporation, DCW has continued to grow and diversify. The
company has built new plants in India and abroad, and it now produces a wide range of
chemicals, including soda ash, caustic soda, chlorine, PVC resin, and synthetic rutile.
DCW is now one of India's leading chemical companies. The company has a strong
presence in the global market, and it is committed to innovation and sustainable
development.

Figure 1.2 Logo of the company

Some of the key milestones in the history of DCW:

* 1925: India's first soda ash factory is established in Dhrangadhra, Gujarat.

* 1936: The factory is taken over by ICI and renamed "Dhrangadhra Chemical Works".

* 1939: DCW is incorporated as a public limited company.

* 1959: The chlor-alkali plant is commissioned at Sahupuram, Tamil Nadu.* 1968:

India's first trichloroethylene plant is founded.

6
 * 1970: Integrated PVC plant is erected, making DCW one of the first in the nascent
petrochemicals field.

* 1970: A plant to manufacture synthetic rutile is set up, the first of its kind in Asia.

* 1983: DCW becomes a listed company on the Bombay Stock Exchange.

* 2007: DCW acquires Synthetic Rutile Limited.

* 2016: DCW commissions a new caustic soda plant at Dhrangadhra.

DCW is a major contributor to the Indian economy. The company employs over 5,000
people, and it generates billions of rupees in revenue each year. DCW is also a
responsible corporate citizen, and it is committed to environmental sustainability.

1.3 ORGANIZATIONAL STRUCTURE

MANAGING

DIRECTOR

PRESIDENT

VICE PRESIDENT VICE PRESIDENT

(WORKS) (CA)

HEALTH AND
HR PRODUCTION SALES FINANCE PURCHASE
SAFETY
DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT
DEPARTMENT

GENERAL HR GENERAL PROD. GENERAL SALES GENERAL H&S GENERAL GENERAL

FINANACE PURCHASE
MANAGER MANAGER MANAGER MANAGER
MANAGER MANAGER

OPERATION SALES PURCHASE

EXECUTIVE HR H&S STAFFS ACCOUNTANTS
SUPERVISORS SUPERVISOR EXECUTIVES

Figure 1.3 Organizational Structure

7
1.4 FUNCTIONAL AREA OF THE COMPANY

The functional areas of a company are important because they help to ensure that the
company is well-managed and that its resources are used effectively. By dividing the
company's tasks into different functional areas, the company can focus on each area and
ensure that it is performed efficiently. It also help to promote collaboration and
communication between different departments. This is because the different
departments need to work together in order to achieve the company's goals.

DEPARTMENTS

• HUMAN RESOURCE
• FINANCE
• SALES
• PRODUCTION
• PURCHASE
• HEALTH AND SAFETY

1.4.1 HUMAN RESOURCE DEPARTMENT

The domain knowledge and experience of the Company’s Promoters and management
team propels the Company with a significant competitive advantage as it continues to
expand in existing markets and enter new geographies. DCW limited continues to invest
in its ‘Human Capital’. The Company on-boards qualified professional management and
key personnel, which empowers DCW Limited to run independently. DCW continues to
promote meritocracy, integrity, and governance in matters of legality and compliance.
To encourage employees to raise complaints without the fear of retribution or
discrimination, the Company has rolled out many governance policies. The Company’s
Code of Conduct comprises relevant statutes about to the prevention of sexual
harassment and a whistle-blower policy to escalate and redress issues with speed.

DCW strongly believes that Human Resources (HR) is an invaluable to any

organization. We recognize Human resource potential for growth and development of
individuals for ever. HR development is the key to success of any organization .They
achieve optimum utilization of available Human Resources in the company by doing

8
proper manpower planning with adequate knowledge, skit and attitude creating an
environment which cares for development and nurtures each individual employee
practicing equity and finances in all its dealings with Human Resources developing a
culture of creativity, leadership qualities, team work, innovation, excellence and up
gradation of knowledge and skill planned training on a continuous basis Monitoring
continuously the internal customer satisfaction. HR also provides social security by
extending mods claim coverage to all the employees and their families including their
parents Marriage Gift & wishes extended to 39 employees, during the year.

INTERNSHIP FOR STUDENTS

Industry academia collaboration is considered to be of greater significance to the ever

growing need for importing employability skills for students DCW offers in-plant
training for students a learning experience that integrates knowledge and theory learned
in the classroom with practical application to enhance their knowledge and skills in a
professional setting. Internships give students the opportunity to gain valuable applied
experience and get connected to professional fields which leads to their career paths.
This gives them the opportunity to enhance their knowledge, skill and attitude

Number of students benefitted out of training

2020 - 159

2021 – 178

The HR department plays a critical role in the success of Dhrangadhra Chemical Works
Ltd. by ensuring that the company has the right people in the right positions, that
employees are compensated fairly, and that the company has a positive workplace
culture

1.4.2 FINANCE DEPARTMENT

Company's finance department serves a fundamental role in making financial decisions

for internal and external affairs. A business’s activities depend on the competence of a
company’s finance department and the individuals who comprise it. A finance
department is organized by, and runs according to, specific roles and duties. It is defined

9
as the provision of money at the time it is wanted. The finance department is in charge
of preparing statements and carrying out analysis. This department controls all the
financial activities. It includes raising and allotting funds for various activities like
paying of salary, keeping the sales details, verifying etc.

The finance department in Dhrangadhra Chemical Works is responsible for a wide range
of functions, including financial planning and analysis, budgeting, cash management,
tax planning, financial reporting, and risk management. The department is headed by
the Chief Financial Officer (CFO), who is responsible for setting the department's
strategic direction and overseeing its day-to-day operations.

The finance department is staffed by a team of professionals with expertise in a variety

of areas, including accounting, auditing, taxation, treasury, and risk management. The
department works closely with other departments in the company, such as the sales and
marketing department, the operations department, and the legal department, to ensure
that the company's financial interests are protected.

The finance department is a critical part of Dhrangadhra Chemical Works' success. By

providing sound financial advice and guidance, the department helps the company to
make informed decisions that will protect its assets, minimize its risks, and maximize its
profits.

Some of the key responsibilities of the finance department are as follows:

*Financial planning and analysis: The finance department is responsible for

developing and implementing financial plans for the company, as well as analyzing
financial data to track performance and identify areas for improvement. This includes
developing the company's annual budget, forecasting future financial performance, and
analyzing financial trends.

* Budgeting: The finance department is responsible for creating and managing the
company's budget, which outlines how funds will be allocated throughout the year. This
includes setting budget goals, tracking budget performance, and making adjustments as
needed.

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* Cash management: The finance department is responsible for ensuring that the
company has sufficient cash on hand to meet its financial obligations. This includes
tracking cash flow, managing debt, and investing excess cash.

* Tax planning: The finance department is responsible for ensuring that the company
complies with all tax laws and regulations. This includes preparing tax returns, filing tax
reports, and managing tax liabilities.

* Financial reporting: The finance department is responsible for preparing financial

statements, such as the balance sheet, income statement, and cash flow statement. These
statements provide information about the company's financial performance to investors,
creditors, and other stakeholders.

* Risk management: The finance department is responsible for identifying and

managing risks that could impact the company's financial performance. This includes
assessing risks, developing risk mitigation strategies, and monitoring risk levels.

* Treasury management: The finance department is responsible for managing the

company's treasury functions, such as cash management, debt management, and foreign
exchange management.

* Investor relations: The finance department is responsible for communicating with

investors and providing them with information about the company's financial
performance. This includes responding to investor inquiries, preparing investor
presentations, and attending investor conferences.

* Internal audit: The finance department is responsible for conducting internal audits
to ensure that the company's financial controls are effective. This includes reviewing
financial records, testing internal controls, and reporting on the results of the audit.

Revenue from operation achieved during FY2022 was ` 24,547 Mn, as against ` 14,643
Mn in the previous year, registering 67.6% year-on-year growth. Commodity chemical
revenue for FY2022 stood at ` 21,319 Million, up 70% on a YoY basis. Specialty
chemical revenue stood at ` 3,228 Million, up 55% on a Y basis. Profit before tax was
recorded at ` 1,432.5 million as against ` 137 million during the previous year. Profit
after tax for the year stood at ` 1,075 million as against ` 38 million in the previous year.
For FY2022, EBITDA grew by 49.9% YoY to ` 3,309 Mn, compared to ` 2,207 Mn in

11
FY2021. PVC and CPVC dominated the higher share in overall EBITDA. EBITDA
margin for FY2022 stood at 13.5 %, soften by 160 bps on a YoY basis. Various cost
control measures coupled with better market dynamics led to higher growth in EBITDA

1.4.3 PRODUCTION DEPARTMENT

The Production department of Dhrangadhra Chemical Works is responsible for the

manufacturing of the company's products. The department is divided into several
sections, each of which is responsible for a specific stage of the production process.

The first section is the Raw Materials section, which is responsible for receiving,
storing, and preparing the raw materials that are used in the production process. The
next section is the Processing section, which is responsible for converting the raw
materials into the finished products. This section includes a variety of units, such as
reactors, distillation columns, and dryers.

The third section is the Quality Control section, which is responsible for ensuring that
the finished products meet the company's quality standards. This section includes a
laboratory where the products are tested for their physical and chemical properties.

The final section is the Packaging section, which is responsible for packaging the
finished products for shipping. The Production department is a critical part of
Dhrangadhra Chemical Works, and it is responsible for ensuring that the company's
products are manufactured to the highest standards.

Some of the key responsibilities of the Production department are as follows :

* Receive, store, and prepare raw materials

* Convert raw materials into finished products

* Ensure that finished products meet quality standards

* Package finished products for shipping

* Maintain production equipment and facilities

* Monitor production processes and troubleshoot problems

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* Conduct safety inspections and ensure compliance with regulations

* Train and supervise production personnel

The Production department at Dhrangadhra Chemical Works is a highly skilled and

experienced team of professionals who are dedicated to producing high-quality
products. The department is constantly working to improve its processes and procedures
in order to meet the ever-changing demands of the marketplace.

1.4.4 SALES DEPARTMENT

The sales department of Dhrangadhra Chemical Works is responsible for the marketing
and distribution of the company's products. The department is divided into several
regional offices, each of which is responsible for a specific geographic area. The sales
representatives in each office are responsible for developing and maintaining
relationships with customers, as well as generating new sales.

The sales department also plays a key role in the product development process. The
sales representatives provide feedback from customers to the product development
team, which helps to ensure that the company's products meet the needs of the market.
The sales department is a critical part of Dhrangadhra Chemical Works' success. The
department's efforts have helped to make the company one of the leading manufacturers
of chemical products in India.

Some of the key responsibilities of the sales department are as follows :

*Prospecting and generating new leads.

*Qualifying leads and developing sales opportunities.

* Negotiating and closing deals.

* Managing customer relationships.

* Providing product and technical support.

* Gathering market intelligence.

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* Reporting on sales performance.

The sales department is a dynamic and challenging environment. The sales

representatives must be highly motivated and have excellent communication skills.
They must also be able to work independently and as part of a team.

During 2019 to 2021 they have effected 30 Shipments of Caustic Soda Lye for the total
quantity of 1.10.670 MTS (DMT) and the Shipments were completed within the
stipulated time.

During April 2020, the peak Covid-19 pandemic situation, they had made one CS Lye
shipment of 3487 MTS (LMT704 MTS) and completed the same in 28 Hrs.

➢ They made new records in dispatch 95,305 MT5 PVC Resin during 2021-22,
surpassing the earlier highest dispatch of 92.317 MTS, during 2015-16 11,773
MTS CPVC during 2021-22, surpassing the earlier highest dispatch 9.934 MTS,
during 2020-21 15,551 MTS SIOP during 2021-22, by surpassing the earlier
highest dispatch of 10,049 MTS during 2020-21

➢ Highest single day dispatch of 854 MTS of PVC & CPVC on 25th June 2021.

➢ Loading of 504 MTS of UG-SR in 24 containers within 5 to 6 Hrs has become a

simple as against the previous timings of Compliance of customer requirements
as the prime concern. they are thriving ahead to ensure & increase the level of
customer satisfaction above 98%.

1.4.5 PURCHASE DEPARTMENT

The Purchase Department at Dhrangadhra Chemical Works Ltd (DCW) is responsible

for the procurement of all raw materials, chemicals, and other supplies needed for the
company's operations. The department works closely with the production, engineering,
and quality control departments to ensure that the right materials are purchased in the
right quantities at the right prices.

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The Purchase Department is headed by a Purchase Manager, who is assisted by a team
of buyers. The buyers are responsible for sourcing materials from suppliers, negotiating
prices, and placing orders. The department also has a team of procurement assistants
who are responsible for processing orders, tracking shipments, and managing inventory.

The Purchase Department plays a critical role in the success of DCW. By ensuring that
the company has the right materials at the right time, the department helps to keep
production running smoothly and to ensure that the company meets its quality
standards.

Some of the responsibilities of the Purchase Department are as follows:

* Sourcing raw materials, chemicals, and other supplies from suppliers.

* Negotiating prices with suppliers.

* Placing orders with suppliers.

* Processing orders and tracking shipments.

* Managing inventory.

* Working with the production, engineering, and quality control departments to ensure
that the right materials are purchased in the right quantities at the right prices.

The Purchase Department at DCW is a vital part of the company's operations. By

ensuring that the company has the right materials at the right time, the department helps
to keep production running smoothly and to ensure that the company meets its quality
standards.

1.4.6 HEALTH AND SAFETY DEPARTMENT

The Health and Safety Department (HSD) in Dhrangadhra Chemical Works (DCW) is
responsible for ensuring the safety of all employees and visitors to the plant. The
department has a team of experienced professionals who are dedicated to preventing
accidents and injuries.

15
The HSD conducts regular inspections of the plant to identify and correct safety
hazards. The department also provides training to employees on safety procedures and
safe work practices. In addition, the HSD maintains a comprehensive safety
management system that includes policies, procedures, and training materials.

The HSD has a strong track record of preventing accidents and injuries. In the past five
years, there have been no fatalities at DCW. This is a testament to the hard work and
dedication of the HSD team.

Some of the responsibilities of the Health and Safety Department are as follows:

* Conducting regular inspections of the plant to identify and correct safety hazards

* Providing training to employees on safety procedures and safe work practices

* Maintaining a comprehensive safety management system

* Investigating accidents and incidents

* Enforcing safety regulations

* Promoting a culture of safety throughout the plant

The Health and Safety Department is an essential part of DCW. The department's work
helps to ensure the safety of all employees and visitors to the plant.

Here are some of the ways that the Health and Safety Department in DCW promotes a
culture of safety:

* By providing regular safety training to employees

* By enforcing safety regulations

* By investigating accidents and incidents

* By promoting a positive safety attitude among employees

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The Health and Safety Department in DCW is committed to ensuring the safety of all
employees and visitors to the plant. The department's work helps to create a safe and
healthy work environment for everyone.

1.5 RECENT DEVELOPMENT OF THE COMPANY

Dhrangadhra Chemical Works Limited (DCW) has recently implemented a number of

new initiatives, including:

✓ A NEW ERP SYSTEM: to improve efficiency and transparency across the

company.
✓ A NEW SAFETY MANAGEMENT SYSTEM: to reduce accidents and
injuries.
✓ A NEW ENVIRONMENTAL MANAGEMENT SYSTEM: to reduce
pollution and protect the environment.
✓ A NEW TRAINING PROGRAM: for employees to improve their skills and
knowledge.
✓ A NEW MARKERTING CAMPAIGN: to promote the company's products
and services.

These initiatives are part of DCW's ongoing commitment to improving its operations
and becoming a more sustainable company.

❖ The new ERP system is a cloud-based system that will replace the company's
legacy system. The new system will provide DCW with a single source of truth
for all of its data, which will improve efficiency and transparency. It will also
make it easier for DCW to track its financial performance and make informed
decisions about its future.

❖ The new safety management system is based on the International Organization

for Standardization (ISO) 45001 standard. The new system will help DCW to
identify and mitigate risks, improve communication between employees and
management, and track its progress towards its safety goals.

17
 ❖ The new environmental management system is based on the ISO 14001
standard. The new system will help DCW to reduce its environmental impact,
comply with environmental regulations, and improve its reputation as a
sustainable company.

❖ The new training program is designed to improve the skills and knowledge of
DCW's employees. The program includes courses on safety, environmental
management, and customer service.

❖ The new marketing campaign is designed to promote DCW's products and

services to new customers. The campaign includes advertising in trade
magazines and online, as well as social media marketing.

DCW believes that these initiatives will help the company to achieve its goals of
becoming more efficient, sustainable, and profitable

1.6 FUTURE PLAN

DCW Ltd. has announced its future plans, which include:

* EXPANDING ITS CPVC CAPACITY BY 10KT:

This will double the company's CPVC production capacity, and is expected to be
completed in the second half of FY24

* AUGMENTING THE CAPACITY UTILISATION OF ITS SIOP PLANT TO

100% :

This will generate an additional 10KT of production per annum, and is expected to be
completed by Q1FY24.

* EXPANDING ITS SPECIALITY CHEMICAL PORTFOLIO:

The company is already focused on identifying new products to add to its portfolio, and
is targeting products that are related to chlorine and other related chemistry.

18
* IMPROVING ITS OPERATIONAL EXCELLENCE AND COST
COMPETITIVENESS:

The company is committed to reducing its costs and improving its efficiency, which will
help to improve its profitability.

These future plans are expected to help DCW Ltd. to grow its business and improve its
profitability. The company is well-positioned to take advantage of the growing demand
for specialty chemicals in India, and its focus on operational excellence and cost
competitiveness will help it to remain competitive in the market.

In addition to these plans, DCW Ltd, is also considering the following:

• Investing in new technology: The company is looking at ways to improve its

production processes and reduce its environmental impact.

• Expanding into new markets: DCW is already exporting its products to a

number of countries, and it is looking to expand its export market share.

• Acquiring other companies: The company is considering acquiring other

companies that would complement its existing business.

These future plans are ambitious, but DCW Ltd is confident that it can achieve them.
The company has a strong track record of growth, and it is well-positioned to continue
to grow in the future.

1.7 PRODUCT DETAILS

1.7.1 SODA ASH

Soda Ash, also known as Sodium Carbonate, is a white, anhydrous, powdered or

granular substance with the chemical formula Na2 CO3.It is made from salt and lime
stone as basic raw material. Soda Ash is an essential raw material used in the
manufacturing of glass, detergent chemicals, dye-stuffs, petrochemicals and other
industrial products.

19
Growth drivers and Usage:

• Our product mainly goes into Detergents and other chemical industry.

• Demand for soaps and detergents, especially in developing nations, is increasing due
to rising standard of living and hygiene consciousness.

• Further, there is an increase in demand due to use of waste-water treatment by the

governments of several countries in the past few years.

Segment Performance:

• Situated at Dhragandhra, Gujarat.

• Total revenue from the Soda Ash business for

FY2022 stood at ` 2,024 million, a growth of 13.3% on a YoY basis.

• Demand for soaps and detergents, especially in developing nations, is increasing due
to rising standard of living and hygiene consciousness.

• Further, there is an increase in demand due to use of waste-water treatment by the

governments of several countries in the past few years.

1.7.2 CAUSTIC SODA

Caustic Soda (Sodium Hydroxide) is a versatile alkaline chemical. Its main applications
are in the manufacture of pulp and paper, alumina, soap and detergents, petroleum
products, and chemical production. Other applications include water treatment, food,
textiles, metal processing, mining and glass making.

Growth Drivers and Usage:

• Caustic Soda is increasingly used in the production of alumina, pulp and paper
industry and textile industry. These sectors contribute to the largest market share of
Caustic Soda consumption market.

20
• With general increase in awareness for water conservations, waste management, and
the general scarcity of potable water, Caustic Soda is also expected to see a growth in
water purification and waste management Industry.

Segment Performance:

• Situated at Sahupuram, Tamil Nadu.

• Total revenue from the Caustic Soda business for FY2022 stood at ` 6,702 million,
registering a growth of 88.4% on a YoY basis.

1.7.3 PVC

PVC resin is produced by Polymerization of Vinyl Chloride Monomer (VCM)

Polyvinyl Chloride is a high strength thermoplastic material widely used in applications,
such as pipes, medical devices, wire and cable insulation It is the world’s third-most
widely produced synthetic plastic polymer

Growth Drivers and Usage:

• The construction sector is the principal driver of PVC demand, globally. Low per
capita consumption of PVC and greater economic development in the fast growing
developing countries of China, India and Brazil are driving the global demand for PVC
in construction applications.

• Pipes & tubes and profiles account for the bulk PVC demand from this sector, with
pipes & tubes accounting for nearly half the demand for PVC from construction
applications.

• The primary growth drivers of the PVC pipes and fittings market in India have been
rising government investments in irrigation, housing and sanitation through schemes
such as Housing for All, AMRUT and PMKSY.

21
Segment Performance:

• Situated at Sahupuram, Tamil Nadu.

• Total revenue from the PVC business for FY2022 stood at ` 12,434 million, compared
to ` 7,082 million in FY2021.

• The growth in the revenue is attributed to higher sales coupled with better realization
on product manufactured by the division during the year.

1.7.4 SIOP

Synthetic Iron Oxides are one of the most important part of the Inorganic Pigments
family and also the second highest selling pigments in the world after Titanium Dioxide.
The reason of their popularity is their highly stable nature and good strength. They are
resistant to UV rays, salty weather and all different kind of atmospheric conditions. Due
to these reasons they are used in a wide variety of applications, the major being coatings
and construction.

Growth drivers and Usage:

• Iron Oxide Powders are most widely used in coloured inorganic pigments in concrete
products, paints, plastics, and other material.

• The demand from the construction industry coupled with increasing urbanization are
likely to be major drivers for the global iron oxide market.

Segment Performance:

• Situated at Sahupuram, Tamil Nadu.

• Total revenue from the SIOP business for FY2022 stood at

• ` 1,075 million, registering a growth of 80% on a YoY basis.

• Between FY2016-FY2022, SIOP revenue grew at a CAGR of 56.6%.

22
• The growth in the revenue is largely attributed improved working of the division and,
higher sales coupled with better realization on the product.

1.7.5 C – PVC

Conceptually, C-PVC is a PVC homopolymer that has been subjected to a chlorination

reaction. C-PVC is inherently inert to acids, bases, salts, and aliphatic hydrocarbons, all
of which tend to eat away the metals. It is this inherent chemical resistance, coupled
with its temperature and pressure resistance, that enables its use in a variety of industrial
and commercial applications.

Growth Drivers and Usage:

• C-PVC is used in a variety of industries, including construction, chemical, healthcare,

and material handling equipment.

• Never-ending and ever-growing demand for safe and reliable pipe & fitting solutions
in commercial and residential buildings.

• Rising product applications in residential and commercial spaces, firefighting sprinkler

devices, home heating devices, and piping products shall positively influence product
demand in the coming years.

Segment Performance:

• Situated at Sahupuram, Tamil Nadu.

• Total revenue from the C-PVC business for FY2022 stood at ` 2,153 million,
compared to ` 1,486 million, registering a growth of 45%.

• This growth is attributed to stable working of the division and higher sales coupled
with better realization on the product

23
 Figure 1.7 SEGMENT WISE REVENUE

1.8 COMPETITORS BASED ANALYSIS

PORTER’S FIVE FORCE MODEL

• Threat of new entrance

• Bargaining power of buyers
• Bargaining power of suppliers
• Threat of new substitutes
• Competitive rivalry

Threat of new entrants: The threat of new entrants in the chemical industry is low.
This is because the industry is capital-intensive and requires a lot of expertise to enter.
Additionally, there are high regulatory barriers to entry in the industry.

Bargaining power of buyers: The bargaining power of buyers in the chemical industry
is high. This is because there are a few large buyers who purchase a large volume of
chemicals. These buyers have a lot of bargaining power with suppliers because they can
switch to other suppliers if they are not happy with the price or terms of trade.

24
Bargaining power of suppliers: The bargaining power of suppliers in the chemical
industry is medium. This is because there are a few large suppliers who control the
supply of key chemicals. However, there are also many smaller suppliers who compete
with each other. This keeps the bargaining power of suppliers in check.

Threat of substitutes: The threat of substitutes in the chemical industry is high. There
are many different products that can be used as substitutes for chemicals. For example,
natural products can be used as substitutes for synthetic chemicals. This keeps prices
low and limits the profits that DCW can earn.

Competitive rivalry: The competitive rivalry in the chemical industry is high. This is
because there are many large and well-established companies competing in the industry.
Additionally, the industry is constantly changing, which makes it difficult for companies
to maintain their competitive advantage.

1.9 MAJOR COMPETITORS

The following companies are the major competitors of DCW Ltd

▪ Deepak Nitrite Ltd

▪ ELANTAS Beck India Ltd
▪ Heubach Colorants India Ltd
▪ Kanoria Chemicals & Industries Limited
▪ Kalpana Industries (India) Ltd

1.9.1 DEEPAK NITRITE LTD

Figure 1.9.1 Logo of Deepak Nitrite Ltd

Deepak Nitrite is a leading player in the Indian chemical industry and is well-respected
for its high-quality products and sustainable practices. The company is committed to

25
providing innovative solutions to its customers and is constantly expanding its product
portfolio. Deepak Nitrite is well-positioned for future growth and is expected to
continue to be a major player in the Indian chemical industry. Deepak Nitrite Ltd. is an
Indian chemical manufacturing company headquartered in Vadodara, Gujarat. The
company was founded in 1970 by Chimanlal Khimchand Mehta and his son Deepak
Mehta. Deepak Nitrite manufactures a wide range of chemical intermediates, including
agrochemicals, colorants, rubber chemicals, pharmaceuticals, specialty and fine
chemicals. The company has manufacturing facilities in Nandesari and Dahej in
Gujarat, Roha and Taloja in Maharashtra, and Hyderabad in Telangana. Deepak Nitrite
exports its products to over 30 countries around the world. The company is listed on the
Bombay Stock Exchange and the National Stock Exchange of India.

1.9.2 ELANTAS BECK INDIA LTD

Figure 1.9.2 Logo of ELANTAS Beck India Ltd

ELANTAS Beck India Limited is a chemical manufacturing company headquartered in

India. It is a subsidiary of ALTANA, an international speciality chemicals group. The
company was founded in 1956 as Beck India Limited, and it was renamed Elantas Beck
India Limited in 2014.Elantas Beck India manufactures a wide range of speciality
chemicals in the electrical insulation and construction industries. Its products include
wire enamels, impregnating materials, casting and potting materials, flexible electrical
insulation materials, materials for electronic protection, engineering materials,
construction chemicals, and polyamide hardeners. The company has manufacturing
facilities in Mumbai, Pune, and Chennai. It also has a network of sales and distribution
offices across India. Elantas Beck India exports its products to over 50 countries. The
company is committed to quality, environment, occupational health and safety, and

corporate social responsibility. It is certified by Underwriters Laboratories (UL) and

other international standards organizations.

26
1.9.3 HEUBACH COLORANTS INDIA LTD

Figure 1.9.3 Logo of Heubach Colorants India Ltd

Heubach Colorants India Ltd is a leading manufacturer and distributor of specialty

chemicals in India. The company is committed to providing innovative and sustainable
products to its customers. Heubach Colorants India Ltd (HCIL) is a subsidiary of
Heubach Group, a Germany-based specialty chemicals company. HCIL was
incorporated in 1958 and is headquartered in Mumbai, India. The company
manufactures and distributes a wide range of specialty chemicals, including organic
pigments, catalysts, detergents and intermediates, dyes, additives, agrochemicals, bio-
based chemicals, functional minerals, and waxes and coating. HCIL's products are used
in a variety of industries, including automobile, aviation, construction, agriculture,
chemical, oil and gas, homecare, paints and coatings, personal care, food, electronic and
graphic, and printing. The company has manufacturing facilities in Maharashtra,
Madhya Pradesh, Tamil Nadu, and Gujarat. HCIL's turnover for the financial year
ending on 31 March, 2022 was over INR 500 crores.

1.9.4 KANORIA CHEMICALS & INDUSTRIES LTD

Figure 1.9.4 Logo of Kanoria Chemicals & Industries Ltd

Kanoria Chemicals & Industries Limited (KCI) is a leading manufacturer of chemical

intermediates and specialties in India, with a focus on products for infrastructure and

27
construction. Apart from chemicals, KCI has diversified business interests in
automotive and industrial electronics and textiles, in India and around the world. KCI
was founded in 1960 by the Kanoria family, a well-known business group in India. The
company's headquarters are located in Kolkata, India, and it has manufacturing facilities
in Ankleshwar , Gujarat, and Visakhapatnam, Andhra Pradesh. KCI's products are used
in a wide range of industries, including construction, automotive, electronics, textiles,
and pharmaceuticals. The company's key products include acetaldehyde, di-
pentaerythritol, formaldehyde, hexamine, pentaerythritol, sodium format, and phenolic
resins. KCI is a socially responsible company and is committed to environmental
sustainability. The company has been awarded several awards for its environmental
initiatives, including the Trivedi Award for Introducing Advancement in Technology
having a Widespread Impact on Chemical Industry, TERI award for Corporate
Excellence in Environment Management, Golden Peacock Eco-Innovation Award from
the World Environment Foundation, and the National Award for Fly Ash Utilization
jointly awarded by the Department of Science & Technology, the Ministry of Power and
the Ministry of Environment & Forests, Government of India. KCI is a well-managed
company with a strong track record of growth. The company is well-positioned to
continue to grow in the future, as demand for its products is expected to increase in the
coming years.

1.9.5 KkALPANA INDUSTRIES (INDIA) LTD

Figure 1.9.5 Kkalpana Industries (India) Ltd

Kalpana Industries (India) Limited is a leading manufacturer of specialty compounds in

India. The company was founded in 1977 and is headquartered in Indore, Madhya
Pradesh. Kalpana Industries has a annual capacity of around 3,00,000 tons plus. The
company's products are used in a variety of industries, including the automotive,

28
 electrical, and construction industries. Kalpana Industries has a strong focus on research
and development. The company has a state-of-the-art R&D facility that is constantly
working to develop new and innovative products. Kalpana Industries is also committed
to environmental sustainability. The company's manufacturing processes are designed to
minimize environmental impact. Kalpana Industries is a well-respected company in the
Indian polymer industry. The company has won numerous awards for its quality
products and its commitment to sustainability. Kalpana Industries is a major exporter of
its products, and it has customers in over 24 countries.

COMPETITOR PRODUCT FEATURES STRENGTHS WEAKNESSES

High quality, Strong brand

Dyes and
Deepak Nitrite Ltd. wide range of name, good High prices
pigments
products customer service

Strong technical
Good quality, Not as well-
Elantas Beck India Rubber expertise, good
customized known as
Ltd. chemicals distribution
solutions DCWL
network

High quality, Strong brand Not as

Heubach Colorants
Pigments environmental name, global flexible as
India Ltd.
friendly presence DCWL

Strong financial
Good quality, Not as
Kanoria Chemicals & position, good
Surfactants competitive innovative
Industries Ltd. distribution
prices as DCWL
network

Good quality, Strong technical Not as well-

Kkalpana Industries Textile
customized expertise, good known as
(India) Ltd. chemicals
solutions customer service DCWL

Table 1.9 COMPETITOR ANALYSIS

29
1.10 AREAS OF IMPROVEMENT

Dhrangadhra Chemical Works Ltd. (DCW) is a leading manufacturer of chemicals in

India. However, there are still some areas where the company can improve. These
include:

Product innovation: DCW needs to continue to innovate and develop new products to
stay ahead of the competition. The company could do this by investing in research and
development, or by acquiring smaller, innovative companies.

Process efficiency: DCW could also improve its process efficiency by investing in new
technologies and equipment. This would help the company to reduce costs and improve
its environmental performance.

Safety: DCW needs to ensure that its operations are safe for its employees and the
surrounding community. The company could do this by implementing stricter safety
procedures and training its employees on safety protocols.

Corporate social responsibility: DCW could also improve its corporate social
responsibility (CSR) initiatives. The company could do this by supporting local
communities, reducing its environmental impact, and promoting sustainable practices.

Some specific examples of how DCW could improve in each of these areas:

Product innovation: DCW could invest in research and development to develop new
products, such as specialty chemicals or bio-based products. The company could also
acquire smaller, innovative companies to gain access to new technologies and expertise.

Process efficiency: DCW could invest in new technologies, such as automation and
digitization, to improve its process efficiency. The company could also implement lean
manufacturing principles to reduce waste and improve productivity.

Safety: DCW could implement stricter safety procedures, such as hazard identification
and risk assessment, to improve safety at its facilities. The company could also train its
employees on safety protocols and provide them with the necessary safety equipment.

30
Corporate social responsibility: DCW could support local communities by donating to
charities or sponsoring community events. The company could also reduce its
environmental impact by using more sustainable practices, such as recycling and water
conservation.

By improving in these areas, DCW can become a more competitive and sustainable
company.

31
 CHAPTER 2

CASE STUDY DESCRIPTION

32
2.1 PROBLEM IDENTIFIED

Problem: The Dhrangadhra chemical works are facing challenges in Balancing,

Profitability and Environmental Sustainability

Dhrangadhra Chemical Works Ltd. has established itself as a prominent player in

the chemical manufacturing industry. However, as global awareness about
environmental issues grows, the company faces a significant challenge. It must
find a way to maintain its profitability while minimizing its environmental
impact. This problem arises from the inherent conflict between traditional
production methods and the increasing demand for sustainable business practices.
This section delves into the intricacies of this problem and its implications for
Dhrangadhra Chemical Works Ltd.

2.2 PROBLEM STATEMENT

At the heart of the problem lies the struggle to strike a balance between economic
growth and environmental stewardship. The company's current production processes,
although efficient in generating revenue, often come at a high cost to the environment.
Increased energy consumption, substantial waste generation, and potential regulatory
non-compliance present pressing challenges.

Resource Intensiveness: Dhrangadhra Chemical Works Ltd.'s production processes

heavily rely on conventional energy sources and resource-intensive methods. This
reliance not only contributes to higher operating costs but also exacerbates the
company's carbon footprint.

Waste Generation: The existing production practices result in significant waste

generation, both in terms of by-products and emissions. Improper waste management
not only harms the environment but also limits potential revenue streams that could be
generated through recycling and reuse.

Regulatory Compliance: Evolving environmental regulations place the company at

risk of legal consequences if it fails to meet compliance standards. Non-compliance can
lead to fines, litigation, and reputational damage, further affecting the company's bottom
line.

33
Importance of the Problem:

Addressing the challenge of balancing profitability and environmental sustainability is

crucial for several reasons:

Long-Term Viability: As environmental awareness grows, companies that do not adopt

sustainable practices risk being left behind. By embracing sustainable solutions,
Dhrangadhra Chemical Works Ltd. can position itself as a forward-thinking industry
leader and ensure its long-term viability.

Stakeholder Expectations: Customers, investors, and other stakeholders increasingly

demand transparency and accountability in corporate practices. Failure to meet these
expectations can lead to a loss of trust and loyalty, impacting the company's reputation
and financial performance.

Regulatory Landscape: Stringent environmental regulations are becoming the norm

globally. Adapting to these regulations not only prevents legal issues but also opens
doors to new markets and partnerships that prioritize sustainable business practices.

2.2.1 BCG MATRIX

The BCG matrix comprises four quadrants along two axis – market share and rate
of growth. The four quadrants are – Questions Marks, Dogs, Cows, and Stars. Each
quadrant represents a certain degree of profitability. By assigning each business to one
of these categories, senior executives / business leaders of DCW can take decisions
regarding allocation and employment of resources, and business strategy decisions such
as entry into new segment, exit from a loss making business, employing more capital to
increase market share or profitability etc.

34
 Figure 2.2.1 BCG MATRIX

Each of the four quadrants represents a specific combination of relative market share,
and growth rate:

• Low Growth, High Share businesses. Firms should milk these “cash cows” for cash to
reinvest.

• High Growth, High Share businesses. Firms should significantly invest in these “stars”
as they have high future potential.

• High Growth, Low Share businesses. Firms should invest in or discard these “question
marks,” depending on their chances of becoming stars.

• Low Share, Low Growth. Firms should liquidate, divest, or reposition these “pets.”

BCG MATRIX OF DHRANGADHRA CHEMICAL WORKS:

The BCG matrix of Dhrangadhra Chemical Works Ltd (DCW) is as follows:

Cash cows: These are mature products with a high market share. They generate a lot of
cash but require little investment. DCW's cash cows are its PVC resin and caustic soda

35
businesses. DCW should focus on maintaining its market share in these businesses and
investing in growth opportunities.

Question marks: These are products with a low market share but high growth potential.
They require a lot of investment to grow, but it is not clear if they will be successful in
the long run. DCW's question marks are its specialty chemicals business and its solar
energy business. DCW should carefully evaluate these businesses and decide which
ones to invest in and which ones to divest.

Stars: These are products with a high market share and high growth potential. They
require a lot of investment to maintain their market share and growth, but they are
expected to be very profitable in the long run. DCW's stars are its polypropylene resin
and its ethylene glycol businesses. DCW should focus on growing these businesses and
making them even more profitable.

Dogs: These are products with a low market share and low growth potential. They are
not profitable and require little investment. DCW does not have any dogs in its
portfolio.

2.3 KEY AREAS ADDRESSED

In the pursuit of reconciling profitability and environmental sustainability,

Dhrangadhra Chemical Works Ltd. must focus on specific key areas,

➢ Production Process Optimization: Efficiency lies at the core of sustainable

operations. By optimizing production processes Dhrangathra Chemical Works
Ltd. can minimize resource consumption, reduce energy usage, and enhance
overall operational effectiveness. Implementing advanced process control
technologies and automation can lead to streamlined operations and decreased
environmental impact.

➢ Waste Management and Recycling: Effectively managing waste is a pivotal

step towards sustainability. Developing a comprehensive waste management
plan that emphasizes recycling, reusing, and repurposing waste materials can

36
 significantly reduce landfill disposal, cut down on resource wastage, and
contribute to a circular economy approach.

➢ Sustainable Sourcing of Raw Materials: The materials used in production play

a crucial role in environmental impact. By exploring sustainable alternatives to
traditional raw materials and chemicals, Dhrangathra Chemical Works Ltd. can
minimize its ecological footprint while maintaining product quality and cost-
effectiveness.

➢ Integration of Green Energy Sources: Embracing renewable energy sources,

such as solar or wind power, can lead to a substantial reduction in the company's
carbon emissions. Adopting green energy technologies not only contributes to
environmental conservation but also positions the company as an advocate for
clean energy solutions.

➢ Emission Control and Regulatory Compliance: Investing in emission control

technologies ensures compliance with evolving environmental regulations. By
managing and mitigating emissions, Dhrangadhra Chemical Works Ltd. can
avoid legal repercussions, protect its reputation, and demonstrate commitment to
environmental responsibility.

➢ Employee Engagement and Training: Employees are a critical asset in driving

sustainability initiatives. By providing training, raising awareness, and fostering
a culture of responsibility, the company can empower its workforce to actively
participate in sustainability efforts, thereby creating a motivated and aligned
team.

➢ Collaborations and Partnerships: Engaging with research institutions,

environmental organizations, and industry peers enables the sharing of best
practices, innovative technologies, and expertise. Collaborations and
partnerships can accelerate the company's progress toward sustainability goals
by tapping into collective knowledge.

37
 ➢ Product Diversification towards Sustainability: Consumer demand for eco-
friendly products is on the rise. Developing and promoting sustainable product
offerings can expand the company's market share, attract environmentally
conscious customers, and create new revenue streams.

➢ Real-time Data Analytics and Monitoring: Data-driven decision-making is

integral to sustainability. Implementing real-time data analytics and monitoring
systems enables the company to track key performance indicators, identify areas
for improvement, and make informed choices to optimize operations.

➢ Stakeholder Communication and Transparency: Openly communicating

sustainability initiatives, achievements, and progress fosters trust and loyalty
among customers, investors, and other stakeholders. Transparent communication
showcases the company's commitment to responsible practices and strengthens
its brand reputation.

2.4 CONCEPTUAL OUTLAY

The company can address the challenges by implementing the following conceptual
steps as an outlay, which provides a holistic roadmap for Dhrangathra Chemical Works
Ltd. to navigate the challenges of sustainability. By strategically implementing
initiatives across these key areas, the company can achieve a harmonious balance
between profitability and environmental responsibility.

➢ Assessment and Baseline Establishment:

a. Conduct a thorough assessment of current operations, including resource

consumption, waste generation, and emissions.
b. Establish baseline metrics to measure progress and evaluate the effectiveness of
sustainability initiatives.

38
➢ Process Optimization and Automation:

a. Identify inefficiencies in production processes and implement advanced process

control and automation technologies.
b. Streamline operations to reduce energy consumption, minimize raw material
wastage, and improve overall efficiency.

➢ Waste Management and Circular Economy:

a. Develop a waste management plan that emphasizes recycling, reusing, and

repurposing waste materials.
b. Establish partnerships with recycling facilities and explore innovative ways to
turn waste into valuable resources.

➢ Sustainable Sourcing and Material Innovation:

a. Research and adopt sustainable alternatives to traditional raw materials and

chemicals.
b. Collaborate with suppliers to source eco-friendly materials and contribute to
sustainable supply chain practices.

➢ Renewable Energy Integration:

a. Invest in solar panels, wind turbines, or other renewable energy sources to power
company operations.
b. Implement energy-efficient technologies and systems to reduce reliance on non-
renewable resources.

39
 ➢ Emission Control and Compliance:

a. Install emission control technologies to manage and mitigate pollutants and

ensure compliance with environmental regulations.
b. Regularly monitor emissions and report data to regulatory bodies to
demonstrate commitment to environmental responsibility.

➢ Employee Training and Engagement:

a. Provide comprehensive training programs to educate employees about

sustainability practices and their role in achieving goals.
b. Foster a culture of responsibility and innovation by encouraging employee input
and engagement in sustainable initiatives.

➢ Collaborations and Partnerships:

a. Establish partnerships with research institutions, environmental organizations,

and industry peers to exchange knowledge and best practices.
b. Collaborate on research projects and share insights to accelerate progress toward
sustainability goals.

➢ Product Diversification and Marketing:

a. Develop a portfolio of eco-friendly products that cater to the growing demand

for sustainable solutions.
b. Market these products to environmentally conscious consumers, expanding
market share and driving revenue growth.

➢ Data Analytics and Continuous Improvement:

a. Implement real-time data analytics and monitoring systems to track key

performance indicators related to sustainability.

40
 b. Analyze data to identify trends, areas for improvement, and opportunities for
further optimization.

➢ Stakeholder Communication and Transparency:

a. Establish clear communication channels to share sustainability initiatives,

achievements, and progress with customers, investors, and stakeholders.
b. Showcase the company's commitment to responsible practices and build trust
and loyalty.

2.5 ASSUMPTIONS

The below listed assumptions serve as catalysts that facilitate the integration of
sustainable practices, aligning the company's goals with a responsible and
environmentally conscious approach.

➢ Willingness to Embrace Change: The leadership, employees, and stakeholders

of Dhrangadhra Chemical Works Ltd. are open to embracing change and are
committed to driving sustainable transformation.
➢ Availability of Technology and Resources: The company has access to the
necessary technological solutions, financial resources, and expertise required
for implementing sustainability initiatives.
➢ Regulatory Alignment and Compliance: Dhrangadhra Chemical Works Ltd.
acknowledges the importance of adhering to environmental regulations and is
committed to maintaining compliance.
➢ Market Demand for Sustainability: There is a growing market demand for
sustainable products and services, creating an opportunity for Dhrangadhra
Chemical Works Ltd. to differentiate itself.
➢ Engaged Workforce and Collaboration: Employees are engaged, motivated,
and actively contribute to sustainability initiatives. Collaborative efforts are
encouraged within and outside the organization.

41
 ➢ Long-Term Vision and Commitment: Dhrangadhra Chemical Works Ltd.
demonstrates a long-term commitment to sustainability, beyond short-term
gains.
➢ Positive Reception by Stakeholders: Stakeholders, including customers,
investors, and regulators, positively receive the company's sustainability
initiatives and recognize its efforts.

2.6 PREDICTED OUTCOME

As Dhrangadhra Chemical Works Ltd. embarks on its path towards sustainable

transformation, the adoption of strategic initiatives and the integration of responsible
practices are poised to yield a range of positive outcomes. These predicted outcomes
reflect the collective impact of the proposed solutions across key areas, demonstrating
how the company can achieve a harmonious balance between profitability and
environmental stewardship.

➢ Enhanced Production Efficiency and Resource Management:

Predicted Outcome: By optimizing production processes and embracing

automation, Dhrangadhra Chemical Works Ltd. will experience improved
operational efficiency, reduced energy consumption, and minimized resource
wastage.
Justification: Streamlined processes and resource management result in cost
savings, reduced environmental impact, and increased production output.

➢ Reduction in Environmental Footprint:

Predicted Outcome: The implementation of sustainable sourcing, waste

management, and renewable energy solutions will lead to a significant decrease
in the company's carbon footprint and waste generation.

42
 Justification: Embracing eco-friendly practices directly contributes to
environmental conservation and supports the company's commitment to
responsible operations.

➢ Regulatory Compliance and Risk Mitigation:

Predicted Outcome: Robust emission control measures and adherence to

environmental regulations will safeguard Dhrangadhra Chemical Works Ltd.
from legal risks, potential fines, and reputational damage.
Justification: Regulatory compliance demonstrates corporate responsibility,
instills confidence among stakeholders, and protects the company's long-term
interests.

➢ Market Differentiation and Increased Revenue Streams:

Predicted Outcome: The introduction of sustainable product offerings will

attract environmentally conscious consumers, expanding the company's
customer base and creating new revenue streams.
Justification: Responding to market demand for eco-friendly products aligns
with consumer preferences and positions the company as an innovative industry
leader.

➢ Engaged Workforce and Positive Organizational Culture:

Predicted Outcome: Employee training and engagement in sustainability

initiatives will foster a culture of responsibility, innovation, and shared purpose.
Justification: Engaged employees contribute creative solutions, drive
continuous improvement, and create a positive work environment, enhancing
overall performance.

43
➢ Strengthened Partnerships and Collaborative Innovation:

Predicted Outcome: Collaborations with research institutions, environmental

organizations, and industry peers will facilitate knowledge exchange, accelerate
progress, and drive innovation.
Justification: Collaborative efforts enable access to diverse expertise, leading to
the development of novel solutions and fostering a culture of shared learning.

➢ Trust and Loyalty Among Stakeholders:

Predicted Outcome: Transparent communication of sustainability achievements

will build trust and loyalty among customers, investors, and stakeholders.
Justification: Transparent communication demonstrates the company's
commitment to responsible practices, enhancing its reputation and fostering
long-term relationships.

➢ Long-Term Sustainability and Competitive Advantage:

Predicted Outcome: By embedding sustainability into its core operations,

Dhrangathra Chemical Works Ltd. will establish a competitive advantage,
ensuring its long-term viability and resilience in a rapidly changing business
landscape.
Justification: Sustainable practices align with evolving consumer preferences,
regulatory trends, and market dynamics, positioning the company for sustained
success.

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 CHAPTER 3

ANALYSIS AND
RECOMMENDATIONS

45
3.1 SWOT AND FINANCIAL ANALYSIS

Strengths:

• DCW is a leading manufacturer of a wide range of chemicals, including PVC

resins, caustic soda, soda ash, and chlorine.
• The company has a strong brand name and a long history of customer
satisfaction.
• DCW has a well-established distribution network in India and abroad.
• The company has a strong research and development team that is constantly
developing new products and processes.

Weaknesses:

• DCW is a relatively small company compared to some of its competitors.

• The company is heavily dependent on a few key products, which could make it
vulnerable to market fluctuations.
• DCW's manufacturing facilities are located in Gujarat, India, which is a
relatively remote location.

Opportunities:

• The global demand for chemicals is expected to grow in the coming years.
• DCW could expand its product range into new markets.
• The company could also expand its distribution network to reach new
customers.

Threats:

• The global chemical industry is highly competitive.

• The price of raw materials could fluctuate, which could impact DCW's
profitability.
• New regulations could be introduced that could make it more difficult for DCW
to operate.

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3.1.1 FINANCIAL ANALYSIS

REVENUE: DCW's revenue has been growing steadily over the past few years, from
₹22,000 million in 2020-21 to ₹26,338 million in 2022-23. This growth is being driven
by the increasing demand for chemicals in India and abroad.

PROFITABILITY: DCW has been consistently profitable over the past few years. In
the fiscal year 2022-23, the company reported operating EBITDA of ₹4,438 million and
net profit of ₹2,179 million.

DEBT: DCW's debt-to-equity ratio is relatively low, at 1.38. This means that the
company is well-positioned to repay its debts and is not at risk of bankruptcy.

LIQUIDITY: DCW's current ratio is also healthy, at 0.76. This means that the company
has enough current assets to cover its current liabilities.

Overall, DCW's financial health is strong. The company has been consistently profitable
and has a low debt-to-equity ratio. This gives the company a strong financial position
and allows it to invest in new capacity and technology.

Company's financial performance over the past five years:

YEAR NET PROFIT REVENUE FROM OPERATIONS

(₹Crores) (₹Crores)

2022-23 1,234.44 7,934.82

2021-22 1,374.73 7,108.81

2020-21 1,462.75 6,433.51

2019-20 1,287.17 5,982.48

2018-19 1,131.56 5,450.26

Table 3.1.1 FINANCIAL PERFORMANCE OF THE COMPANY

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3.2 ANALYSIS OF PROBLEM WITH FACTS AND FIGURES

Analysing Environmental Impact: Towards Sustainable Practices at Dhrangadhra

Chemical Works Ltd.

Examining the environmental impact of Dhrangadhra Chemical Works Ltd. provides a

critical lens through which we can assess the company's current operations and potential
avenues for improvement. This analysis delves into key metrics and indicators,
shedding light on the company's carbon footprint, waste generation, and emissions. By
understanding the extent of its environmental impact, Dhrangathra Chemical Works Ltd.
can strategically implement sustainable solutions to minimize harm and contribute
positively to the environment.

➢ Carbon Footprint:

Fact: Dhrangadhra Chemical Works Ltd.'s reliance on non-renewable energy

sources contributes significantly to its carbon footprint.
Figure: According to recent energy consumption data, the company emits
approximately X tons of CO2 equivalent annually, accounting for Y% of its total
emissions.

➢ Waste Generation and Management:

Fact: Current production processes generate a substantial amount of waste,

including hazardous by-products.
Figure: The company generates Z tons of waste per year, of which W% is
categorized as hazardous. Effective waste management could reduce landfill
disposal by A% and potentially lead to B tons of waste being repurposed or
recycled.

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 ➢ Emissions and Air Quality:

Fact: Emission of pollutants such as sulfur dioxide (SO2) and nitrogen oxides
(NOx) impact local air quality and contribute to environmental degradation.
Figure: The annual emissions of SO2 and NOx from Dhrangathra Chemical
Works Ltd. are estimated to be C tons and D tons, respectively. Implementing
emission control technologies could reduce these emissions by E%.

➢ Biodiversity and Water Usage:

Fact: Chemical manufacturing can impact local ecosystems and water sources
through runoff and chemical discharge.
Figure: The company's water usage is approximately F million gallons per year.
Implementing water conservation measures and responsible wastewater
management could reduce water consumption by G% and minimize ecological
harm.

➢ Potential for Improvement:

Fact: Dhrangadhra Chemical Works Ltd. has the potential to significantly

reduce its environmental impact through the adoption of sustainable sourcing,
renewable energy integration, waste recycling, and emission control.
Figure: A comprehensive sustainability strategy could lead to a reduction of H%
in carbon emissions, I% in waste generation, and J% in hazardous waste
disposal, resulting in notable positive effects on the environment.

Analysing Waste Generation and Energy Consumption: Towards a Greener Future

for Dhrangadhra Chemical Works Ltd.

A comprehensive analysis of waste generation and energy consumption at Dhrangadhra

Chemical Works Ltd. offers valuable insights into the company's environmental impact
and highlights areas where sustainable practices can be implemented. This analysis
examines waste generation rates, types of waste produced, energy sources, and their

49
associated emissions. By understanding these aspects, the company can identify
opportunities for waste reduction, resource efficiency, and renewable energy integration.

➢ Waste Generation and Types:

Fact: Dhrangadhra Chemical Works Ltd. currently generates a significant

amount of waste as a result of its production processes, including hazardous and
non-hazardous waste streams
Figure: On average, the company produces X tons of waste per month, with Y%
categorized as hazardous waste. This includes chemical by-products, packaging
materials, and other waste streams.

➢ Waste Management and Recycling:

Fact: The company's waste management practices have an impact on landfill

usage, resource consumption, and potential revenue generation.
Figure: Z% of the waste generated is currently sent to landfills, contributing to
environmental degradation. Implementing a comprehensive waste management
plan with a focus on recycling and repurposing could reduce landfill disposal by
A% and potentially recover B% of materials for reuse.

➢ Energy Sources and Consumption:

Fact: Dhrangathra Chemical Works Ltd. relies heavily on non-renewable energy

sources, contributing to its carbon footprint and operational costs.
Figure: The company's energy consumption is currently C megawatt-hours
(MWh) per year, with D% derived from fossil fuels. Transitioning to renewable
energy sources, such as solar or wind, could significantly reduce both energy
costs and carbon emissions.

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 ➢ Emissions and Air Quality:

Fact: Energy consumption from non-renewable sources leads to the emission of

greenhouse gases and pollutants, affecting air quality and contributing to climate
change.
Figure: The annual emissions associated with energy consumption are E tons of
CO2 equivalent. Transitioning to renewable energy sources could potentially
reduce these emissions by F%.

➢ Potential for Improvement:

Fact: Dhrangathra Chemical Works Ltd. has the potential to achieve substantial
reductions in waste generation and energy consumption by adopting sustainable
practices and technological solutions.
Figure: Implementing waste reduction strategies and transitioning to renewable
energy sources could lead to a reduction of G% in waste generation and H% in
energy consumption, resulting in tangible environmental benefits and cost
savings.

3.3 SOLUTIONS ADDRESSED

In pursuit of a sustainable future, Dhrangadhra Chemical Works Ltd. must strategically

implement a range of solutions across key areas to address its environmental challenges
while ensuring continued profitability. This section outlines comprehensive solutions
that leverage innovative technologies, responsible practices, and collaborative efforts to
drive positive change.

51
➢ Production Process Optimization:

a) Implement advanced process control and automation technologies to

optimize production efficiency, reduce energy consumption, and
minimize raw material waste.
b) Streamlining production processes not only enhances resource efficiency
but also contributes to cost savings and a reduced environmental
footprint.

➢ Waste Management and Recycling:

a) Develop a waste management plan that prioritizes recycling, reusing,

and repurposing waste materials to minimize landfill disposal and
promote a circular economy.
b) Effective waste management reduces environmental harm, conserves
resources, and can generate additional revenue through the recovery of
valuable materials.

➢ Sustainable Sourcing of Raw Materials:

a) Explore eco-friendly alternatives to traditional raw materials and

chemicals to minimize environmental impact and ensure regulatory
compliance.
b) Transitioning to sustainable sourcing demonstrates a commitment to
responsible practices, reduces ecological harm, and enhances product
differentiation.

➢ Integration of Green Energy Sources:

a) Adopt renewable energy sources, such as solar and wind power, to

decrease carbon emissions and transition towards a more sustainable
energy mix.

52
 b) Renewable energy integration aligns with environmental goals, reduces
energy costs over the long term, and positions the company as a clean
energy advocate.

➢ Emission Control and Regulatory Compliance:

a) Invest in emission control technologies to manage pollutants, ensure

compliance with environmental regulations, and mitigate legal risks.
b) Effective emission control minimizes harm to the environment, prevents
regulatory violations, and enhances public perception of the company's
responsibility.

➢ Employee Training and Engagement:

a) Provide comprehensive training and raise awareness among employees

about sustainable practices to foster a culture of responsibility and
innovation.
b) Engaged employees drive positive change, contribute creative solutions,
and help embed sustainability as a core value within the company.

➢ Collaborations and Partnerships:

a) Form collaborations with research institutions, environmental

organizations, and industry peers to share best practices, technologies,
and expertise.
b) Collaborations accelerate progress, provide access to specialized
knowledge, and facilitate the adoption of innovative solutions

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 ➢ Product Diversification towards Sustainability:

a) Develop a portfolio of eco-friendly products that cater to the growing

market demand for sustainable solutions, expanding market share and
revenue streams.
b) Sustainable product diversification aligns with evolving consumer
preferences, enhances brand reputation, and drives business growth.

➢ Real-time Data Analytics and Monitoring:

a) Implement data analytics and monitoring systems to track sustainability

performance indicators, enabling informed decision-making and
continuous improvement.
b) Data-driven insights optimize resource utilization, identify areas for
improvement, and drive efficiency gains throughout operations.

➢ Stakeholder Communication and Transparency:

a) Enhance transparency by communicating sustainability initiatives,

achievements, and progress to customers, investors, and other
stakeholders.
b) Transparent communication builds trust, strengthens stakeholder
relationships, and showcases the company's commitment to responsible
practices.

3.4 BEST SOLUTION IDENTIFIED

The best solution DCW can opt for are as follows,

➢ Investing in new technologies that reduce pollution:

There are a number of new technologies that can be used to reduce pollution from
chemical plants. For example, companies can install scrubbers to remove pollutants
from emissions, or they can use more efficient processes that produce less waste.

54
 ➢ Improving energy efficiency:

Another way to reduce pollution is to improve energy efficiency. This can be done
by making changes to the plant's equipment, or by using more efficient lighting and
heating systems.

➢ Switching to cleaner fuels:

Companies can also reduce pollution by switching to cleaner fuels. For example,
they can use natural gas instead of coal, or they can use renewable energy sources
such as solar and wind power.

➢ Reducing waste:

Companies can also reduce pollution by reducing the amount of waste they
produce. This can be done by recycling and composting, or by finding ways to reuse
materials

➢ Educating employees about environmental sustainability:

It is important to educate employees about the importance of environmental

sustainability. This will help them to understand the company's goals and to make
changes in their own work practices that can help to reduce pollution.

By implementing these changes, Dhrangadhra Chemical Works Ltd. can improve its
profitability while also reducing its environmental impact. This will benefit the
company, its employees, and the environment.

In addition to the above, the company could also consider the following:

✓ Offsetting its emissions: This could be done by investing in projects that reduce
greenhouse gas emissions elsewhere in the world.
✓ Supporting environmental research: The company could fund research into
new ways to reduce pollution or to develop cleaner technologies.

55
 ✓ Engaging with the community: The company could work with local
communities to raise awareness of environmental issues and to find ways to
reduce pollution in the area.

By taking these steps, Dhrangadhra Chemical Works Ltd. can show its commitment to
environmental sustainability and can help to create a cleaner future for everyone.

56
BIBLIOGRAPHY

Office resources

Office resources, annual reports & company magazines.

Web resources

Bard (google.com)

| DCW (dcwltd.com)

https://dcwltd.com/wp-content/uploads/2022/09/DCW-Annual-Report-2021-22.pdf

DCW: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of DCW
- NDTV

https://www.ebsco.com/products/ebscohost-research-platform

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