In India, a strategic relationship has been forged with a major styrenics producer that has put SD at the top of its corporate agenda.
Supreme Petrochem Ltd (SPL) is India's leading styrenics producer. It has also grown to become one of Shell's largest styrene monomer (SM) customers in Asia, as a result of strategic fit and a shared vision of corporate citizenship.
"It's important when developing strategic relationships in emerging markets that the customer has a sustainable business model. SPL has demonstrated it shares our thinking and philosophy about doing business in a sustainable manner, and being committed to high standards of HSSE (health, safety, security and environment)," says Wee Chiong Lim, Shell Chemicals SM Business Manager for Asia-Pacific/Middle East.
SPL's emphasis on operating under the principles of SD has earned it both a valued reputation among the local community, and recognition at a regional and national level. Since opening its 340-acre manufacturing complex near Mumbai in 1995, it has not only brought direct and indirect employment to the area but also established and funded a number of community development programmes and environmental initiatives. This has been key to gaining the trust and confidence of the local community and has helped spawn a range of entrepreneurial businesses, co-operatives and mini-industries that have transformed the local economy.
N Gopal, Executive Director (Styrenics), says: "When we came to Amdoshi we set out to become a partner with the community and to demonstrate that it would benefit from our presence. From the outset we realised that if we did not have the support of local people - if they did not see improvements in their lives - we would not be able to grow our operations here."
SPL's plantation has donated more than 10,000 saplings to both forestry and conservation projects. Expansions of the plant have employed best practices for energy and water conservation and waste management. The company's presence has spawned a range of entrepreneurial businesses, co-operatives and mini-industries that have transformed the local economy.
Land around the SPL site has been allocated to the development of a commercial plantation, providing a 'green belt' between the plant and the local villages. The plantation is used to grow crops, trees and medicinal plants, giving local people an opportunity to acquire horticultural skills and develop spin-off businesses.
"We provided agricultural training and management support to enable local people to develop a small agricultural industry," says Gopal. The company has also involved the community in the running of its business. "We sponsor local students to attend technical university, who then come back to work for us. They not only become key members of our team but also act as ambassadors to the local villages," explains Gopal.
Ern-Teng Phua, Shell Chemicals SM Sales Manager for Southeast Asia/India, says: "SPL has clearly recognised the business value of SD, not just for improving a company's image but as a critical enabler of growth."
Other projects have helped to develop facilities in the villages themselves, including the provision of a clean water supply, school buildings and resources for the local library. The company continues to provide training and scholarships for local students, sponsorship for cultural and sports activities and funding for health check-ups and awareness schemes. Gopal says this approach to SD has been a good investment.
"As a result of these programmes we have the full support of the community, as well as local authorities, and are considered to be an honest, ethical company."
The developing relationship with Shell Chemicals is also fundamental to its growth strategy, which aims to take advantage of opportunities in emerging specialty styrenics applications. "It's a relationship we want to develop, not just because we see the opportunity to support SPL's growth plans, but also because the two companies understand each other and share a philosophy," says Wee Chiong Lim. "That's important when you're in business for the long term."
This feature was added to the Innovations section in February 2008
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