1

RAJEEV GANDHI COLLEGE OF MANAGEMENT STUDIES

GHANSOLI, NAVI MUMBAI-400701

A PROJECT REPORT ON:

“SUPPLY CHAIN MANAGEMENT OVERVIEW OF PALM OIL”

STUDY CONDUCTED AT GODREJ INSDUSTRIES LTD
(CHEMICAL DIVISION) – VIKROLI, MUMBAI

SUBMITTED

FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS MANAGEMENT IN OPERATIONS

[2019-2021]

SUBMITTED BY:

SANDEEP SADASHIV RANMALE

(Roll No. 201921086)

UNDER GUIDANCE OF:

Professor Mr. ATUL RAMTEKE
 2

RAJEEV GANDHI COLLEGE OF MANAGEMENT STUDIES

GHANSOLI, NAVI MUMBAI-400701

A PROJECT REPORT ON:

“SUPPLY CHAIN MANAGEMENT OVERVIEW OF PALM OIL”

STUDY CONDUCTED AT GODREJ INSDUSTRIES LTD
(CHEMICAL DIVISION) – VIKROLI, MUMBAI

SUBMITTED

FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS MANAGEMENT IN OPERATIONS

[2019-2021]

SUBMITTED BY:

SANDEEP SADASHIV RANMALE

(Roll No. 201921086)

UNDER GUIDANCE OF:

Professor Mr. ATUL RAMTEKE
 3

Acknowledgment

I, hereby acknowledge all those who directly or indirectly helped me in drafting of this
project report. It would not have been possible for me to complete the task without their
help and guidance.

First of all, I would like to thank the guide Prof. Atul Ramteke and Prof.

Piyusha Ambradkar who gave me the opportunity to do this project work. They

also conveyed the important instructions from the university time to time.

They not only rendered time out of their busy scheduled but also answered my queries
without hesitation. They gave me information on their system of working in their
organization and told me how promotional strategies are done in their organization.

Last but not the least; I am thankful to the University of Mumbai for offering the project
in the syllabus. I must mention my hearty gratitude towards my family, other faculties
and friends who supported me to go ahead with the project.
 4

CERTIFICATE

This is to certify that Mr. SANDEEP SADASHIV RANMALE is a bonafide student of this

Institute. As a part of the University curriculum, the student has undergone study of

“SUPPLY CHAIN MANAGEMENT OVERVIEW OF PALM OIL” STUDY

CONDUCTED AT GODREJ INSDUSTRIES LTD (CHEMICAL DIVISION) –

VIKROLI, MUMBAI in Rajeev Gandhi College of Management Studies during the

period from 2019 - 2020 in the partial fulfilment of the requirement for the award of the

Degree of “Master in Management Studies (MMS).

Date: ………………

Place: ……………..

Signature Signature
Prof. Atul Ramteke Dr. Anil Matkar

(Teacher Guide) (Director)

 5

UNDERTAKING

I, Sandeep Sadashiv Ranmale have completed the Summer Internship Project titled

“SUPPLY CHAIN MANAGEMENT OVERVIEW OF PALM OIL” STUDY

CONDUCTED AT GODREJ INSDUSTRIES LTD (CHEMICAL DIVISION) – VIKROLI,

MUMBAI” in Godrej Industries Ltd. under the guidance of Prof. Atul Ramteke in the

partial fulfilment of the requirement for the award of degree of Master in Management

Studies (MMS) of Mumbai University. This is an original piece of work & I have neither

copied and nor submitted it earlier elsewhere.

Student’s Name & Signature

 6

Executive summary
The purpose of this study was to analyse Godrej Chemicals and their factories supply chain
management, green initiatives and sustainability which will help to implement in the other
chemical industries in India. This assignment is to study the overarching grand challenges for
sustainability in chemical industry with supply chain management. There are many
operational challenges in the industry, such as energy efficient initiatives and energy sources,
carbon neutrality, minimum wastages, environmental sustainability and commitment to
maintain international supply chain network. Godrej chemicals are making environmental
sustainability a key part of the manufacturing process and value chain across their businesses.
As per the National Investment Promotion & Facilitation Agency India ranks 6th in the world
in Chemicals sales and contributes 3% to global chemical industry. Indian ranks 14th in
export and 8th in import of chemicals (Excluding Pharmaceuticals products) globally.

The data obtained and discussed in this assignment from the persons who have ideally
knowledge of all the aspects. This study will be explanatory for the supply chain environment
and supply chain software used to optimised the process. In this assignment we will firstly go
through the import scenario of Palm Fatty Acids Distillates (PFAD) and Catalyst, the most
important raw materials in the B2B process of Godrej Chemicals. How the bulk import of
these raw products taken place, what important aspects used and the process is initiated by
top level management authority. The value addition process implemented by factories to
convert the raw materials into a valuable product which Godrej industries uses for internal
consumption, domestic market selling and international exports. Resources, inventories and
SCM used to make it delivered to all the customers India as well as internationally. Along
with the aim of sustainability, as a Group Godrej have always actively championed social
responsibility-23 per cent of the shares of the Group's holding company, are held in a trust
that invests back in initiatives that support environment, education and healthcare.

Secondly a short overview of other business undertaken by Godrej Industries Ltd such as
Godrej Agrovet Ltd, Godrej Consumer Products Ltd, and Godrej Properties Ltd. Each
company has a comprehensive CSR policy that outlines programmes and projects to
undertake that help create a positive impact on stakeholders. The CSR committee in each
company reviews, monitors and provides strategic inputs on the sustainability efforts.

This project also emphasise the palm oil market and its current situation all over the world. A
short brief on how the palm oil market, exporter countries and importers have impacted due
to COVID-19. What happens to palm oil demand in India has a significant effect on the entire
industry. Since India's palm oil imports account for nearly 20% of the global trade, it has a
big effect on efforts to make the production and processing of the commodity sustainable,
ensuring that no further environmental damage is done. As one of the importer how Godrej
Industries have taken initiatives towards sustainability.
 7

Table of Contents

1 Introduction……………………………………………………………… 08

2 Literature Review……………………………………………………….. 29

3 Objective of study……………………………………………………….. 52

4 Research Methodology………………….……………………………….. 54

5 Data Analysis & Interpretation …………………………………………. 55

6 Findings & Recommendations……….………………………………….. 61

7 Limitations……………………………………………………………….. 63

8 Conclusion……………………………………………………………….. 64

9 Bibliography……..…………...………………………………………….. 65

10 Appendix……………………..………………………………………….. 66
 8

1. Introduction:

1.1 Chemical industry in India

Chemicals industry in India is highly diversified, covering more than 80,000 commercial
products. It is broadly classified into Bulk chemicals, Specialty chemicals, Agrochemicals,
Petrochemicals, Polymers and Fertilizers. India’s proximity to the Middle East, the world’s
source of petrochemicals feedstock, makes for economies of scale.

India is a strong global dye supplier, accounting for approximately 16% of the world
production of dyestuff and dye intermediates. Chemicals industry in India has been de-
licensed except for few hazardous chemicals. Upcoming Petroleum, Chemicals and
Petrochemicals Investment Regions (PCPIRs) and Plastic parks will provide state-of-the-art
infrastructure for Chemicals and Petrochemicals sector.

 The Indian chemicals industry is projected to reach $304 billion by 2025

 Indian ranks 14th in export and 8th in import of chemicals (Excluding
Pharmaceuticals products) globally
 Demand of chemical products is expected to grow at approximately 9% p.a. over the
next 5 years
 Indian chemical industry employs more than 2 million people

The production of Total Major Chemicals and Petrochemicals in 2019-20 (up to September
2019) was 13,871 thousand MT. CAGR in production of Total Chemicals and Petrochemicals
during the period 2014-15 to 2018-19 is 4.78%. Alkali Chemicals accounts for around 71%
of the total production of Major Chemicals for the year 2019-20 (up to September 2019).

As per the BDA Partners news, India’s chemicals sector is the 6th largest in the world and has
witnessed strong growth momentum over the last couple of years. Following global supply-
chain disruptions and the government’s lockdown measures to restrict the spread of COVID-
19, Indian capital markets experienced a significant decline in March 2020 and a subsequent
rebound in April. Given the essential nature of the chemical sector, manufacturing operations
resumed shortly after the initial lockdown, reflected by a moderate price impact for listed
Indian chemical companies. Sectors like Specialty Chemicals, Agrochemicals and Pharma
Intermediates will have limited impact given their essential nature.

In the weeks following India’s lockdown to contain the spread of novel coronavirus (COVID-
19), the chemicals sector has witnessed considerable short term volatility but is well
positioned to benefit in the near future.

“Mumbai: The outbreak of the novel coronavirus in China, the factory of the world, could be
seen as an opportunity to obtain new markets and to relook at risk management for Indian
manufacturing, said several industrialists at an event on Thursday.”

"While it is difficult to see what the impact (of the virus outbreak) may be, it is important to
see where the opportunity may lie," said R Mukundan, managing director of Tata Chemicals.
 9

Companies should analyse their and their international competitors' supply chains and see
what new places could be occupied, he said while speaking at a Confederation of Indian
Industry (CII) conference in the city.

"This is a once in a lifetime opportunity."

One of the things that have been highlighted in the past few weeks is the over-dependence of
Indian manufacturing on China, said Jamshyd Godrej, managing director of Godrej and
Boyce Mfg.

"We need to make more in India," he said. "There are so many components that are imported
from China only because they have the scale and thus cost advantage."

Though there is an impact of COVID-19 but Indian manufacturers have already come up with
the substitutional raw material products. This is an opportunity for India to make out of this
and to develop our own market for raw materials and new technology of manufacturing.

India oleo chemicals market has been segmented into five categories namely - fatty acids,
fatty alcohols, glycerine, fatty acid methyl esters and fatty amines. Oleo chemicals are
industrially produced chemicals derived from animal fats or vegetable oils. Since oleo
chemicals are less toxic as compared to conventional petrochemical products, various
industries such as polymers, primarily high growth packaging industry and food additives,
primarily upcoming processed food segment. Other industries that are not big contributors to
the overall pie but use oleo-chemicals to add some functional properties include cosmetics,
paints, coating, lubricants, surfactants, soaps, detergents. Robust growth in India oleo
chemicals market can be attributed to the increasing demand for naturally derived raw
materials for personal care and soaps industry. Rising consumer spending on green products
and increasing awareness regarding the harmful effects of chemicals used in cosmetic
products has resulted in an upsurge in preference for oleo chemicals in the country, especially
over the last few years. India oleo chemicals market is projected to cross US$2.6 billion by
2025.

The Indian Chemical Industry comprises both small and large-scale units, and presently, there
are about 70,000 chemical manufacturing units located in the country (Department Of
Chemicals and Petrochemicals-Draft National Chemical Policy-December 2013) a major
component (in numbers) are covered in the small scale sector
 10

1.2 FDI Investments & Industry scenario

India has emerged as one of the most preferred destinations for foreign investment, just after
China and the United States. The government of India has gone a step further and formulated
investor friendly policies to encourage FDI in India. One of the fastest growing economies of
the world, India boasts of a stable annual growth rate, booming capital markets, and rising
foreign exchange reserves.

Government recognizes Chemical industry as a key growth element of Indian economy. In

Chemical Sector, 100% FDI is permissible. Manufacture of most of chemical products is
delicenced.

Recent Investments:

 Jan 31, 2020: Germany headquartered SCHOTT AG, international speciality glass
and technical ceramic materials manufacturer increases sales in India and plans record
investments.

 Jul 28, 2019: Tata Chemicals will expand its soda ash production facility in
Dwarka, Gujarat at an estimated cost of over INR 1000 crores, increasing its output
from 10.9 lakh tonne per annum to 113.16 lakh tonne per annum.

 May 2019: Netherlands - based Royal DSM's Indian branch DSM Material has
acquired the Engineering Plastics business from Gurugram - based chemicals firm
SRF Ltd for Rs.3, 200 crores. DSM will use this acquisition to further strengthen its
position as a leading player in engineering plastics in India.

Indian chemical industry is expected to register a growth of 8-9% in the next decade and is
expected to double its share in global chemical industry to 5-6% by 2021. Indian Chemical
industry has the potential to grow significantly provided some of the key growth imperatives
are taken care of. Securing Feedstock, Right Product Mix, M&A opportunities are currently
the key imperatives for chemical industry in India.

 India is a strong global dye supplier, accounting for approximately 16% of the world
production of dyestuff and dye intermediates.
 11

 Demand for organic chemicals is expected to grow at 9% CAGR from FY19-23, with
phenol demand growing at 11%

 Alkali chemicals had the largest share in the Chemical industry in India with
approximately 69% share in the total production. Production of polymers account for
around 59% of total production of basic major petrochemicals

 The petrochemical market in India is expected to grow at a CAGR of 10% over the
next 5 years to reach $100 billion by 2022

 The Indian colorant industry, valued at USD 6.8 billion, exports nearly 75% of its
production

The Indian chemicals industry is projected to reach $ 304 billion by 2025. Indian ranks 14th
in export and 8th in import of chemicals (Excluding Pharmaceuticals products) globally. The
demand of chemical products is expected to grow at approximately 9% p.a. over the next 5
years. Indian chemical industry employs more than 2 million people

Total production of major chemicals and petrochemicals stood at 27,847 MT during 2018-19,
a growth of 4.15% over 2017-18. Alkali chemicals had the largest share in the Chemical
industry in India with approximately 69% share in the total production. The production of
polymers is account for around 61% of total production of basic major petrochemicals.

India is an ideal destination for Chemical manufacturing. Development of strong Intellectual

Property regime backed by R&D focus is picking up pace, development of infrastructure is
being made to enable chemical and manufacturing industry – warehouses, waste management
facilities, ports etc., Development of PCPIRs will mitigate the feedstock disadvantage.
Currently, roughly 50% of the country’s demand for PVC is being met by imports. The
current per capita consumption of chemicals is very low at 1/10th of global average. This is
expected to increase in the coming decade with India’s expanding middle class creating an
unparalleled end-user market.
 12

1.3 Industry Analysis

Market Size: Palm Oil Industry (Import)

India is the largest importer of palm oil in the world, accounting for almost 16% of total
imported palm oil. India is also the second largest consumer of palm oil in the world after
Indonesia, with over 9 million metric tonnes consumed annually with more than 90% of palm
oil (crude and processed) coming from imported sources.

Palm oil is popular in India due to its lower cost compared to other vegetable oils, neutrality
in flavour and physical stability. It is also distributed via the public distribution system (PDS)
along with other necessary commodities.

The majority of PO coming into India is used as a cooking medium, with only 10% or so
going to the manufacturing sectors. Moreover, all of the Palm Oil in India, whether imported
or domestically produced, is for domestic use with no exports to speak of. A market like
China on the other hand imports and produces Palm Oil for both domestic consumption and
re-export of manufactured goods going to western markets, which implies the drivers and
market dynamics for palm oil are quite different.

The demand from countries like India and China is a major driver for expansion of oil palm
plantations in producer countries like Indonesia and Malaysia. India has been consistently
importing palm oil in huge quantities year after year owing to increase in demand from
consumers and manufacturers. Palm oil accounts for more than 80% of total vegetable oil
imported into India.

The expansion of Oil Palm plantations in producer countries like Indonesia and Malaysia has
come at the expense of primary forest cover and its endemic biodiversity. Deforestation
leading to GHG emissions, climate change, species losses and extinction threats for
threatened species has motivated several responses from business, NGOs, and government.
Primary among these is the Roundtable on Sustainable Palm Oil (RSPO) – a body of
producers, buyers, civil society groups, financiers and others – which has developed a set of
Principles and Criteria which can be applied to both production systems and supply chains to
ensure a set of environmental, social and environmental standards are met. Today over 20%
of global palm oil supply is produced under RSPO certification standards.

To support the further production and uptake of certified sustainable palm oil large buyers
such as those found in India must commit to sustainable sourcing. Therefore, India as the
highest importer of PO in the world has an important role to play in ensuring the conservation
of critical landscapes through the ability to influence producers.
 13

Current Palm Oil Market Situation:

In India, palm oil consumption has drastically increased by almost 230% over the last two
decades. Click on the link below to find out more about the palm oil market in India and the
need for private sustainability governance with progressive multinationals with global
commitments.

Palm oil production in Indonesia, the world’s top palm producing nation, and main exporter
to India, was expected to fall drastically, according to a US Department of Agriculture
attaché in Jakarta. Malaysia had also temporary shuttered plantations and factories in three
districts of the Sabah area after seven workers tested positive for the COVID-19 virus. Recent
news reports show palm oil production-side challenges and supply chain disruptions in the
wake of the COVID-19 global pandemic, which are set to significantly impact prices and/or
volumes available in India as well.

India is a net food exporting country but depends heavily on imports of edible oils. Prime
Minister Narendra Modi appealed on 23 July 2020 to the farmers in the North-East States to
take up oil palm cultivation in a big way. It is a step to support the Atmanirbhar Bharat
initiative and will reduce the imports of Palm oil and make India self-sufficient in edible oils
too. The domestic consumption of edible oils in India has been outstripping the production
and the gap between the two is quite significant which is being met by imports. India imports
nearly 15 million tonnes annually (or nearly 68 per cent) of edible oils to meet the country’s
annual consumption demand of about 22 million tonnes. The bulk of these imports are palm
oil. Of the total imports of edible oil, palm oil accounts for 60 per cent or about 9 million
tonnes.
 14

1.4 Company Analysis

Established in 1897, the Godrej Group has its roots in India's Independence and Swadeshi
movement. The founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few
ventures, before he struck gold with a locks business. Today, Godrej has the patronage of 1.1
billion consumers globally across consumer goods, real estate, appliances, agriculture and
many other businesses. In fact, its geographical footprint extends beyond Earth, with the
engines now powering many of India's space missions. With revenue of over USD 4.1 billion
and are growing fast, and have exciting, ambitious aspirations. Approximately 23 per cent of
the promoter holding in the Godrej Group is held in trusts that invest in the environment,
health and education. Godrej also brings together the passion and purpose to make a
difference through Good & Green strategy of 'shared value' to create a more inclusive and
greener India.

Godrej has made its footprints in lot of sectors

Aerospace & Defence: It was in 1985, ISRO has coordinated with Godrej to develop high
precision satellite components for a launch. Since then, they were a part of every other space
mission of India, building the engines of India’s rockets and other critical components,
including those of the Mangalyaan and Chandrayaan missions.

Appliances: The year 1958 Godrej made the first Indian refrigerator. They developed ACs,
refrigerators and washing machines that not only are energy efficient, but also designed to handle
erratic electricity and water supply, which unfortunately are issues most Indians face.

Chemicals: Godrej Group, Chemicals Business Vertical is one of the oldest ones. Today, it is
one of India's leading oleo-chemicals players, manufacturing and marketing over 100 key
chemicals. Over the last decade, it has diversified the product portfolio to include value-
added specialty products and export to over 80 countries spread across North and South
America, Asia, Europe, Australia and Africa.

Food & Agriculture: The Godrej Animal Feed business is a leading compound feed player
across the Cattle (Milk), Broiler, Layer, Fish and Shrimp Feed segments in India. It feeds
look after the health of the animals and ensure their yields are efficient. Godrej Agrovet is
also the most significant Indian producers of Crude Palm Oil and Palm Kernel Oil through
Oil Palm Business. When it comes to Food & Beverage brands, they produce a mix of Dairy,
Poultry and Vending Foods through our businesses.

Furniture, Furnishing & Fittings: Godrej Interio, India’s oldest and largest brand of home and
office furniture; India Circus, a contemporary home furnishings brand; Script, a minimalist
brand designed with clean lines to promote mindfulness and intentional living; and U&US, an
innovative concept driven brand that enables users to co-create and customise their dream
homes digitally with complete assurance on quality at an affordable price.

General Engineering: Godrej manufacture generator equipment for gearless wind turbines
and power generators, key structures like catalyst baskets for nitric acid plants, hydro-
turbines as well as steel plant equipment.
 15

Heavy Engineering: Since 1976, Godrej & Boyce’s Heavy Engineering business has built a
firm reputation as a leading manufacturer of custom-built critical process equipment for
companies operating in core sectors like Oil and Gas, Petrochemicals, Fertiliser, Chemicals,
Power and Water and demonstrated global leadership in fabricating unit static equipment and
produce and service columns as well as custom-built equipment like piping spools, heat
exchangers, pressure vehicles and reactors.

Home & personal care: It was in 1920, Godrej ventured into the Home & Personal Care
Business and began with an innovation by manufacturing soap from vegetable oil instead of
animal fat and showing the world that there’s a humane way to do human things. Since then,
they have been one of India's leading FMCG companies. In fact, most people know them as
an inextricable part of India and their history. Godrej’s half of revenues in the FMCG
business come from international businesses in three emerging markets - Asia, Africa and
Latin America, across three categories - home care, personal wash and hair care.

Intra Logistics: Godrej has its own solutions setup with Godrej material handling, Godrej
storage solutions, and Godrej consoveyo. The Intralogistics solutions ensure that the orders of
millions of India's fast-growing online customers are met rapidly, efficiently and profitably
by the new generation of e-commerce companies.

Godrej Infotech: Godrej Infotech Limited has a unique range of solution offerings that meet
the diverse needs of today's enterprises. The portfolio includes Enterprise Applications,
Value-based Add-ons, Surround Technologies, Cloud and Digital Solutions.

Godrej Infrastructure: Commitment to sustainable construction touches every stage of the real
estate development lifecycle - from producing green building materials and solving the
pressing issue of construction waste to promoting lean manufacturing methods and green
building services that help eliminate waste, create better value and ensure faster delivery of
projects.

Locks & Security Solutions: From the timeless Navtal lock, their offerings have evolved to
high-end holistic security solutions that today safeguard millions of homes and offices as well
as the premises of prestigious institutions like the Reserve Bank of India, the Taj Mahal and
other national organizations of importance. From pioneering the technology of a spring less
lock that ensures that every key is unique to new digital-driven integrated solutions that
incorporate biometric technology, they provide security that safeguards the nation and its
most valuable assets.

Power & Engineering: Godrej Power and Energy business manufactures and delivers a range
of equipment, solutions and services aimed at driving efficient energy management across the
industry value chain. From manufacturing clean energy generation equipment to building
state-of-the-art control systems that drive effective energy-management in factories and
buildings, focus is on creating energy-efficient solutions for industry and homes.
 16

Real Estate: Godrej Properties is one of the largest listed real estate companies in the country,
with a vibrant portfolio comprising of commercial, residential and mixed use projects spread
across key cities in India. Godrej Properties brings the Godrej Group philosophy of
innovation, sustainability, and excellence to the real estate industry. Each of our development
combines the Group's legacy of excellence and trust with a commitment to cutting-edge
design and technology.

The group can be broadly divided in to 2

 Godrej Industries Ltd

 Godrej Chemicals,
 Godrej Agrovet,
 Godrej Consumer Products,
 Godrej Properties

 Godrej & Boyce

Godrej Industries Ltd (Chemicals)

Godrej Chemicals is one of the divisions of Godrej Industries Limited.

Godrej Industries is one of the Godrej Groups holding companies. Its own businesses
comprises of chemicals, estate management and Finance & Investments. Its chemical division
manufactures and markets a wide range of oleo chemical products derived from organic
materials. The product portfolio under the chemicals division includes Fatty Alcohols, Fatty
Acids, Surfactants, Glycerine and Specialty Products. These products are used as raw
materials in the home and personal care, pharmaceutical and food industries.
 17

Godrej Industries is an Indian manufacturer of oleo-chemicals (a chemical compound derived

industrially from animal or vegetable oils or fats) for use in over various industries. It also
manufactures edible oils, Vanaspati and bakery fats. In addition, it operates real estate.
Godrej Industries (Chemicals Division) has its headquarters in Mumbai, India, and bases in
40 countries; it exports to more than 60 countries. The company operates in many other
segments through its subsidiaries. The company is having subsidiaries like Godrej properties
for real estate, Godrej Agrovet with animal feed, Godrej nature’s basket for grocery and
Fresh Food store.

Leadership Team:

 Managing Director: Nadir Godrej

He is the Managing Director of Godrej Industries and Chairman of Godrej Agrovet.
He is also a Director of numerous firms including Godrej & Boyce Co Ltd, Godrej
Consumer Products Ltd, Indian Hotels Co Ltd and Mahindra & Mahindra Ltd.
A Bachelor of Chemical Engineering from the Massachusetts Institute of Technology
and a Master of Chemical Engineering from Stanford University, Nadir completed his
MBA from the Harvard Business School. He lives in Mumbai, India with his wife and
three children.

 Executive Director & President: Nitin Nabar

He is Executive Director and President, Godrej Industries Limited (Chemicals). He
also serves on the Board of Directors of Godrej Industries Limited and as the
Manufacturing Council Head for the Godrej Group.
He played a key role in building and expanding the export market of the Chemicals
business. Under his leadership, the business now exports products to over 80
countries.
Nitin nabar is the Chairman – Cosmetics of Chemexcil, an export promotion council
for the chemicals industry. He has also been a member of the taskforce setup by the
Ministry of Chemicals and Fertilizers to help in the growth of the oleo-chemicals
industry in India.

 Supply chain & Marketing head – Atul Prakash

He is Head - Marketing and Supply Chain, Godrej Industries Limited (Chemicals).
He joined Godrej Industries in 2008 as Associate Vice President – Corporate
Technical Services and was responsible for stabilising and improving surfactants
operations and driving special projects.
In his current role, he is responsible for overall manufacturing operations of the
Chemicals business. He also leads new projects and expansions. Atul has a keen
interest in energy conservation and he champions green initiatives for the business.

 Chief Financial Officer: Clement Pinto

Clement Pinto is Chief Financial Officer, Godrej Industries Limited (Chemicals).
 18

He is a member of the Forex Committee and Risk Management Committee of Godrej

Industries (Chemicals).

Godrej Industries Ltd derives a significant portion of its revenue from exports (33% of its
turnover). Over the past few years the company has been adding value-added products which
have helped it in expanding its product portfolio and de-disking the business. It currently
produces 100 products which have application in 24 industries. The products are exported to
around 80 countries in Asia, Europe, South & North America, Africa and Australia.

Fatty Alcohols, in which the company is a leading producer, find its use in home and personal
care industry. Fatty acids find its use in textiles, rubber, polymers, foods and feeds, and
personal care products. Surfactants are used in industries ranging from home and personal
care to polymers, oil fields and construction chemicals. Glycerine is used in a variety of
applications including food and personal care products among others. Rising consumer
spending on green products and increasing awareness regarding the harmful effects of
chemicals used in cosmetic products has resulted in an upsurge in preference for oleo
chemicals.

1.5 Godrej Industries Ltd (Chemicals) Plants:

At our state-of-the-art manufacturing facilities in Valia, Gujarat, and Ambernath,
Maharashtra, we drive a relentless focus on productivity and energy efficiency. Over the last
couple of years, we have been investing significantly in building our Research and
Development capabilities to grow our value-added products portfolio. We produce over
2,73,700 metric tonnes of chemical products annually, for use in home and personal care,
rubber processing, polymer, pharmaceutical and industrial applications.

Safety is a non-negotiable core value for us and quality, environment, health and safety
standards at our factories have global certifications.

Valia:

In 1990, they have set up manufacturing facility at Valia in Gujarat. Spread across 140 acres,
this integrated manufacturing plant has a production capacity of over 1,94,700 metric tonnes
per annum. It has two Fatty Alcohol units to enable customization of products according to
the needs of customers. These plants have a Distributed Control System, which enables good
process control and ensures product quality.

Valia plant is ISO 9001:2015, ISO 14001:2015, OHSAS 18001:2007 certified and all
products made at this facility are Kosher certified. They have also won several industry
awards and accolades for Green initiatives at Valia, including being the first oleo-chemicals
manufacturer to receive a "Gold" GreenCo rating by the CII - Sohrabji Godrej Green
Business Centre.
 19

Ambernath:

They have another oleo-chemicals manufacturing facility at Ambernath in Maharashtra which

started five years ago. The 17-acre facility is designed with the latest technologies to provide
quality products at competitive prices. This plant has a production capacity of over 79,000
metric tonnes per annum with a focus on manufacturing Surfactants, Fatty Acids (including
Specialty Grades) and refined Glycerine. In line with commitment to building a greener
India, they have adopted energy-efficient equipment and processes to minimize the energy
consumption.

The Ambernath plant is ISO 9001:2015, ISO 14001:2015, ISO 45000:2018 and ISO
22716:2007 certified, and all products made at this facility are Kosher certified.

1.6 Godrej Industries Ltd (Chemical Division): Products

Chemical division is the pioneer in manufacturing of oleo chemicals in India and one of the
oldest businesses of Godrej group. Currently it is one of the leading oleo chemicals
manufactures in India with a product offering of more than 100 chemicals which are used in
more than 24 industries. The company has expanded its global presence by exporting to 80
countries in FY18 up from 65 countries in FY15. These countries are located in North and
South America, Asia, Europe, Australia and Africa. Its state-of-the-art manufacturing
facilities are located at Valia in Gujarat and Ambernath in Maharashtra. A research and
development centre has been set up at Ambernath and a pilot plant at Valia has been set up to
develop a new range of products. Exports for the year 2019 has growth rate of 35%.

Godrej Industries manufacture a wide range of oleo-chemical products derived from organic
materials. They constantly evolving product portfolio includes Fatty Alcohols, Fatty Acids,
Surfactants, Glycerine and Specialty Products. These products are used as raw materials in
the home and personal care, pharmaceutical and food industries.

PRODUCTS:

Godrej manufacture a wide range of oleo chemical products derived from organic materials.
They constantly evolving product portfolio includes Fatty Alcohols, Fatty Acids, Surfactants,
Glycerine and Specialty Products. These products are used as raw materials in the home and
personal care, pharmaceutical and food industries. As per the industry standard Godrej has
also defined their products with company trade names which make their own branding of
products in the market.
 20

Fatty alcohol
1. Lauryl Alcohol

Lauryl alcohol is an organic compound produced industrially from palm kernel oil or coconut
oil. It is a fatty alcohol. Sulfate esters of lauryl alcohol, especially sodium lauryl sulfate, are
very widely used as surfactants (Surfactants: Surfactants are compounds that lower the
surface tension (or interfacial tension) between two liquids, between a gas and a liquid, or
between a liquid and a solid. Surfactants may act as detergents, wetting agents, emulsifiers,
foaming agents, and dispersants). Sodium lauryl sulfate, ammonium lauryl sulfate, and
sodium laureth sulfate are all used in shampoos. Lauryl alcohol is tasteless and colourless
with a floral odour.

Godrej used to supply various grades of lauryl alcohol as per the customers’ requirements.
They are generally having below specs grades available for lauryl alcohol.

Ginol 12 (98%)
Ginol 12 (99%)
Ginol 1214
Ginol 1214 (S)
Ginol 1218

2. Cetostearyl Alcohol

Cetostearyl alcohol, cetearyl alcohol or say cetylstearyl alcohol is a mixture of fatty alcohols,
consisting predominantly of cetyl (16 C) and stearyl alcohols (18 C) and is classified as a
fatty alcohol.

If you’ve ever used lotions, shampoos, or conditioners, you may have noticed they include a
chemical called cetearyl alcohol. The good news is that cetearyl alcohol isn’t “bad” for you,
your skin, or your hair. Most importantly, cetearyl alcohol is very different from regular
alcohols, like ethanol.

Cetearyl alcohol is a chemical found in cosmetic products. It’s a white, waxy substance made
from cetyl alcohol and stearyl alcohol, both fatty alcohols. They’re found in animals and
plants, like coconut and palm oil.

They are used in personal care products, mainly skin lotions, hair products, and creams. They
help create smoother creams, thicker lotions, and more stable foam products. Fatty alcohols
are sometimes called long-chain alcohols because of their chemical formula. They usually
have an even number of carbon atoms, with a single alcohol group (–OH) attached to the last
carbon.

Godrej Industries supplies below specs grades for Cetostearyl alcohol.

Ginol 1618-PS
 21

Ginol 1618 50:50

Ginol 1618 – TA
Ginol 1618 60:40

3. Cetyl Alcohol:

Cetyl alcohol is a common ingredient in a variety of personal care products and cosmetics. It
is derived from vegetable oils such as palm or coconut oil.

In personal care products like skin lotions and creams, cetyl alcohol serves as a thickening
agent and emulsifier, to help keep product ingredients from separating. Because cetyl alcohol
melts at temperatures higher than the average human body temperature, it is useful in
cosmetic products like lipsticks, helping lip colour adhere to the skin.

Cetyl alcohol is also a multipurpose food additive, used as a flavouring agent or in food
decorations. For example, cetyl alcohol is an ingredient in colourful lettering or pictures on
some types of candy or gum.

In industrial applications, cetyl alcohol is a primary ingredient in fuels, chemical

intermediates and plasticizers and is used as a lubricant for nuts and bolts in manufacturing
applications. Cetyl alcohol acts as a binding agent, helping the various ingredients in many
moisturizers, lotions and creams bind together, which helps enable smooth application.

Ideally there are 3 types or grades produced by Godrej Industries Ltd.

Ginol 16 (95%)
Ginol 16 (98%)
Ginol 16 (99%)

4. Stearyl Alcohol

Stearyl alcohol is a vegetable derived long chain fatty alcohol. It is commonly found in a
wide variety of skin care and cosmetic products. Stearyl alcohol has a long history of safe use
in personal care products.

It has a wide range of uses as an ingredient in lubricants, resins, perfumes, and cosmetics. It
is used as an emollient, emulsifier, and thickener in ointments, and is widely used as a hair
coating in shampoos and hair conditioners. Stearyl heptanoate, the ester of stearyl alcohol and
heptatonic acid (enanthic acid), is found in most cosmetic eyeliners. Stearyl alcohol has also
found application as an evaporation suppressing monolayer when applied to the surface of
water.

Stearyl Alcohol is a white, waxy, practically inert solid with a faint odour. Stearyl Alcohol is
used in cosmetics as an emollient, stabilizer, antifoaming agent, emulsifier, and carrier. It is
 22

used as water in oil (w/o) emulsifier to produce firm cosmetic products at ordinary
temperatures. Godrej has list of grades of stearyl alcohol as follows.

Ginol 18 (95%)
Ginol 18 (98%)
Ginol 18 (99%)

5. Behenyl Alcohol

Behenyl alcohol, also known as docosanol, is a saturated fatty alcohol with 22 carbons. Fatty
alcohols are high molecular weight, straight chain primary alcohols derived from natural fats
and oils. Behenyl alcohol is derived from vegetable sources (i.e. corn), but it can also be
synthetically produced.

Behenyl alcohol is primarily used in face/body lotions and creams, but can also be found in
deodorant, lipstick, foundation, and hair care products. In addition to use in the cosmetic
industry, behenyl alcohol is available as a nutritional supplement and a pharmaceutical
antiviral agent. In the OTC cold sore medication Abreva, docosanol has been shown to
reduce the duration of cold sores caused by herpes simplex virus.

In cosmetic and skin care formulations, behenyl alcohol functions as an opacifying

ingredient, thickener, emollient, and emulsifier. As an opacifying agent and a thickener,
behenyl alcohol can be added to clear or transparent cosmetic formulations to render them
more resistant to visible light. Its thickening property allows products to achieve a more
desirable, spreadable texture. Thus, manufacturers will add behenyl alcohol to formulations
to create a thick, smooth, and creamy product.

Behenyl alcohol is used as an emollient in cosmetic formulations because of its ability to

soften and soothe the skin. After topical application, behenyl alcohol forms a protective layer
on the skin that helps to prevent moisture loss. Plus, behenyl alcohol does not leave a greasy
feel after application like other emollients can. Godrej supplies below grades of Behenyl
alcohol carrying their trade name.

Ginol 1822
Ginol 22

There are lot more chemical products manufactured and supplied by Godrej Chemicals here
are they with a short overview:

Fatty Acids
Godrej Industries have pioneered the manufacturing of the world’s first vegetable oil based
soap using Fatty Acids in 1918. Today, they manufacture a range of C16 and C18 Fatty Acids
that have diverse applications in textiles, rubber, polymers, foods and feeds, and personal
 23

care products. Over the last decade, Godrej Industries have diversified their portfolio to
include high purity specialty Fatty Acid derived from mustard oil.

Stearic Acids

Polymer-Grade Stearic Acid Specialty Grades

Plastric special Textric

Distric Textric Special

Plastric-E

Cosmetic-Grade Stearic Acid Rubber-Grade Stearic Acid

Hystric Lubstric 995

Oleic Acids

Commercial Grades Premium Grades

Emulsolic Eco Emulsolic

Indolic Liquolic RBS

Lubolic-E Lopour

Lubolic - 20 Lubolic

Fractionated Fatty Acids

Behenic Acid 85% Hytitre (Stearic min 90%)

Erucic Acid 90% Lauric 99%

Palmitic Acid – 90% Myristic 99%

Puroleic Acid – 70% Distilled Linseed Fatty Acid

 24

Coconut Grades

Commercial Grades Premium Grades

Distilled coconut fatty acid regular Distilled coconut fatty acid special

Surfactants
Surfactants are compounds that lower the surface tension between two liquids, between a gas
and a liquid, or between a liquid and a solid. Surfactants may act as detergents, wetting
agents, emulsifiers, foaming agents, and dispersants. The word surfactant is a blend of
surface-active agent.

Surfactants are one of the most representative chemical products that are consumed in large
quantities every day. Owing to the trend toward greater environmental awareness and
protection, there is a pressing need for high-performance surfactants that are biodegradable
and biocompatible.

Godrej Industries are pioneers in manufacturing and developing applications of Alpha Olefin
Sulphonate (AOS). The unique properties of AOS are effective in a variety of applications in
industries ranging from home and personal care to polymers, oil fields and construction
chemicals. Over the last decade, Godrej Industries have also started producing Fatty Alcohol
based Surfactants that are used extensively in the home and personal care industry.

Alpha Olefine Sulphonate (AOS)

Detergents, Toilet Soaps Shampoo, Handwash

Alfodet L46-AOS liquid 38% Alfodet XL46-AOS liquid 38%

Alfodet P46-AOS paste 70% Ginasul 36468

Industrial Applications

Alfodet XL-46(S)-AOS liquid 39%

(Emulsion Polymerisation)
 25

Ginasul TWS Pesticide Formulation

(Wool Scouring)
Ginasul 46P AOS Powder (94%min)
Ginasul 6836 (Textile Processing)
Ginasul 68 P

Ginasul 46N AOS Needles (94%min)

Ginasul 68 N

Sodium Lauryl Sulphate (SLS)

Detergents, Toilet Soaps Toothpaste, Pharmaceuticals

Ginopol L24D Liquid Ginopol L24 Liquid

Ginopol P24 Paste Ginopol 24P Powder

Ginopol 24P Powder Ginopol 24NS

Ginopol 24N

Shampoo, Handwash

Godrej SLES L24 - 230 Liquid

Godrej SLES P24 - 270 Paste

Glycerine
Glycerine is a versatile chemical and is used in a variety of applications including food and
personal care products among others. Its quality grade meets both domestic and international
regulatory requirements including that of the Pharmacopeia, Food Codex and Food Safety
and Standards Authority of India.
 26

Refined Glycerine I P Refined Glycerine C P

Glycerine USP-30 Refined Glycerine I W

Refined Glycerine B P

Oleo Derivatives and Specialty Chemicals

The range of Oleo Derivative and Specialty products line include Bio-Surfactants,
Emulsifying Waxes, Esters Secondary Ingredients, Active/Specialty Chemical and Ready
Blends. These products are developed keeping in mind the customer need and consumer
trends.

Emulsifying Wax

Based on differentiating properties, special blends of base ingredients are used to form
Emulsifying Waxes. Multi-functional waxes provide conditioning, improve the consistency
and stability of emulsions.

Applications

Creams, Lotions, Colour, Shampoos, Conditioners, Depilatory cream

GINOL EW 6820 GINONIC CSA 20

GINOL EW 68S GINONIC CSA 10

GINOL EW UNREK GINONIC S2

GINOWAX GINONIC S20

GINOWAX GST GINONIC B-20

GINOWAX AO GINONIC B-30

GINONIC CSA 25
 27

Emulsifying Wax

There are extensive range of Esters based on in-house natural fatty acid and alcohols. They
provide functional benefits for different applications like personal care, skin care, sunscreen,
and other industrial applications.

These Esters are designed to create different textures and different properties like nourishing
properties, anti-acne emollient, light to medium conditioning, natural thickener, etc.

GINCOL IPP GINCOL PEGDS6

GINCOL IPM GINCOL EHP

GINCOL HIS GINCOL CSHP

GINCOL CP GINCOL CO

GINCOL MM GINCOL EHPS

GINCOL OHS GINCOL BS

GINCOL TDS GINCOL ML

GINCOL CSO GINCOL DOM

GINCOL BO GINOSOFT 6

GINCOL TDP GINOSOFT 7

GINCOL CA

Secondary Ingredients

There are Secondary Surfactant, Viscosity & Foam Booster, Paralyzing Agents, and
Preservatives/Antimicrobial. Most of Secondary Ingredients complete base products
portfolio. For Rinse Off application, they complement Surfactants portfolio. For Leave on
application, they complement our Fatty Alcohol and Fatty Acid portfolio.

GINAMIDE GINODET DOSS

GINAMIDE A GINODET MO

GINAMIDE D GINCOL EGMS

 28

GINAMIDE AO Ginodet BKC 50

GINONIC L 242 Ginodet BKC 80

GINONIC L 247 GINODET G

Specialty/Actives

The range of Specialty and Actives includes key ingredients in Sunscreen, Sulfate Free
Surfactants and skin care actives.

These products are largely based in natural trends and provide benefits like deep
moisturization, anti-ageing, UV protections.

GINCOL OS GINACTIVE OS

GINODET 2000 GINACTIVE Hydra

GINODET 1200

Blends

The range of blend line products is ever-evolving and covers spectrum of both leave-on and
rinse off applications. Specialty Blends are formulated to provide solutions like All Natural
RM, LLP free, Mineral Oil Free, minimising inventory, application support.

GINAMIX CB GINAMIX BW

GINAMIX B1 GINAMIX LB

Godrej Industries (Chemicals) manufacture and market over 100 chemicals for use in more
than 24 industries. Their products are exported to over 80 countries in North and South
America, Asia, Europe, Australia and Africa.
 29

2. Literature Review:
Palm oil

The oil palm tree has an unbranched stem and belongs to the Palmae family. The palm tree
can grow to a height of 20 to 30 meters with a lifespan of 25 to 30 years (Hassan 1988). Oil
palm provides the highest yield of oil per unit of any crop. Each palm tree produces
approximately one fruit bunch, containing as many as 3,000 fruit lets, per month. Two
different oils are obtained from oil palms (i.e. palm kernel oil and palm oil), both of which
are important in edible oil trade (Purseglove 1983). Palm kernel oil (PKO) is minor oil
derived from the kernel of the nut of the palm fruit, which contains about 50% oil (Figure
1.1). It is hard, light yellow oil (resembling coconut oil in taste and odour), which contains a
higher proportion of the saturated lauric and myristic acids and belongs to te category of
medium chain fatty acid rich oil (Purseglove 1983; Oyenuga 1968).

Crude (red) palm oil is the fresh oil obtained from the palm fruit mesocarp before refining
(Figure 1.1). It is produced in palm oil mills; the fractionation and refining of crude palm oil
take place in palm oil refineries. Palm olein and super olein are the fractions obtained from
refined, bleached, and deodorized (RBD) palm oil. This fractionation brings about an
increase in monounsaturated oleic acid with the concomitant reduction of palmitic acid, the
major saturated fatty acid in palm oil (Coursey, Macfarlane, and Swetman 1984; Chong and
Ng 1991).

Palm oil production

Many countries planted oil palm to produce the oil to fulfil their local demand. Palm oil
production during the year 2013 is shown in Table 1.12. Currently, most of the world's palm
oil (PO) production comes from Indonesia and Malaysia. Indonesia is the largest producer of
palm oil and its production during the year 2013 was 3.35 million metric tonns (MT)

(http:// www.indexmundi.com/agriculture/?commodity=palm-oil&graph=production;). India

is one of the largest importers of palm oil and the largest consumer of edible oils in the world.
India imports nearly 3.5 million tonnes of palm oil annually mainly from Malaysia and
 30

Indonesia. The palm oil production in the country is about 70,000 tonnes annually, which is
0.2% share of the world palm oil production (Casson 2000).

Palm oil usage

Palm oil is extracted from the fleshy orange-red mesocarp of the fruit of the oil palm (Elaeis
guineensis). This plant, indigenous to West Africa, has spread to the tropical and subtropical
zones of the world, particularly Malaysia and Indonesia (Edem 2002). About 90% of the
world palm oil production is used for edible purposes (e.g., margarine, deep fat frying,
shortening, ice-creams, cocoa butter substitutes in chocolate); the remaining 10% is used for
soap and oleo chemical manufacturing (fatty acids, methyl esters, fatty nitrogenous
derivatives, surfactants, and detergents) (Hassan 1988; Idris and Samsuddin 1993). Palm oil
is a raw material used for the production of cosmetics, waxes, lubricants, and traditional
antidote in toothpaste against cyanide toxicity.

Palm oil extraction and processing

Palm oil processing involves the sequences of processing steps (Figure 1.2). The harvested
fruit arrives from the field as bunches or loose fruit. The quality standard achieved in the oil
is initially dependent on the quality of bunches arriving at the mill. The factors that affect the
composition and final quality of palm oil are genetic, age of the tree, environmental,
agronomic, harvesting technique, handling, and transport. Many of the factors are beyond the
control of a small-scale processor (Poku 2002).

The fresh fruit bunches were sterilized or cooked by means of high temperature wet heat
treatment. This sterilization helps in destroying oil-splitting enzymes, weaken the fruit stem
and makes it easy to remove fruit from bunches, coagulation of protein that brings oil bearing
cells come together and weakens the pulp structure, softening it making easier to detach
fibrous material and helps in oil release more readily. The fruits were separated from the
sterilized bunches and undergo fruit digestion, during this process release the oil in the fruit
through the rupture or breaking down the oil bearing cells. The digestion of the fruits at high
temperature reduces the viscosity of oil, destroy the fruit outer covering (exocarp) and
complete the destruction of oil-bearing cells. The wet method or dry methods are used to
extract oil from the digested mash. In the dry method, the oil is squeezed out of a mixture of
oil, moisture and fibre by applying mechanical pressure. In wet method, the oil leaches out by
the uses hot water (Poku 2002; http://lipidlibrary.aocs.org/processing/palmoil/index.htm;
Corley and Tinker 2003).

The extracted oil is a mixture of oil, water, cell debris, fibrous material and non-oily solids.
Thus, the extracted oil undergoes clarification process to remove entertained impurities from
the oil. The impurities are separated by addition of water and heating. The addition of water
helps to reduce the viscosity of press fluid and heating help to break the emulsion. Finally,
 31

moisture content of the oil reduces to 0.15 to 0.25% by drying with reheating of the oil (Poku
2002).

Below image is self-explanatory for the imported palm oil value chain process, its
further ingredients to be extracted or other products manufactured and used in the
other industry.
 32

2.1 Godrej Industries journey in market setup

 Godrej Industries manufacture and marketed over 100 chemicals for use in more than
24 industries. Also their products are exported to over 80 countries in North and
South America, Asia, Europe, Australia and Africa. A technology use for production
process, logistics and orders confirmation leads to the efficient management of Godrej
Industries Ltd.
 The company has a very long journey to setup its business in the domestic and
international market. Currently the company is listed in Bombay Stock Exchange &
National Stock exchange. Godrej Industries (GIL) has significant interest in consumer
goods, real estate, agriculture and gourmet retail through subsidiary and associate
companies, across 18 countries. The company owns 23.8% stake (as on 31 March
2018) in Godrej Consumer Products which an FMCG company. GIL owns 56.7%
stake (as on 31 March 2018) in real estate development firm Godrej Properties. GIL
owns 58% stake (as on 31 March 2018) in Godrej Agrovet which a diversified agri-
business company. It holds 100% stake in Natures Basket which operates fresh good
and gourmet store under the Natures Basket brand.
 Godrej Industries Ltd was incorporated in the year 1988 as Gujarat-Godrej Innovative
Chemical Ltd. Godrej Soaps Ltd was amalgamated with the company with effect from
April 1, 1994 and the name was changed to Godrej Soaps Ltd.
 During the year 1994-95, the company acquired majority stake holding in
Transelektra Domestic Products Ltd, the largest manufacturer of mosquito mats in the
world.
 In April 1995, they entered into a joint venture and technical assistance agreements
with Siat SA, a Belgian company and formed Godrej Oil Palm Konkan Ltd for Oil
Palm Plantations business.
 During the year 1995-96, the company entered into an agreement with Sara Lee
DE/NV for securing an equity participation of Sara Lee in Transelektra. They set up
new ultra-modern Toilet Soap finishing lines of 48 TPD capacities each at Vikhroli
and Malanpur factories. Also, they set up sophisticated Fatty Acid Distillation Plant of
75 TPD capacity at Vikhroli factory.
 During the year 1996-97, Ensemble Holdings & Finance Ltd became a subsidiary of
the company. The distribution of consumer products was handed over to Godrej
Healthcare Ltd, a subsidiary company with effect from September 16, 1996.
 In November 1996, they commissioned the new fatty acid complex at Malanpur
factory. In March 1997, they sold their Oil Palm Plantations business to Godrej
Agrovet Ltd, a subsidiary company.
 During the year 1997-98, the company set up a factory at Silvassa for manufacturing
of Hair Dye, which commenced production in November 1997. Godrej Healthcare
Ltd ceased to be a subsidiary of the company with effect from July 7, 1997. The
company commissioned the c Cogeneration plant for generation of electricity in
December 1997 at Valia and in May 1998 at Vikhroli.
 The consumer products division of the company has been de-merged and a new
company was formed, namely Godrej Consumer Products Ltd with effect from April
 33

1, 2001. As
a part of the scheme of de-merger, the name of the company was changed from
Godrej Soaps Ltd to Godrej Industries Ltd.
 During the year 2001-02, the Foods Division ventured into products catering to the
needs of bakeries through their Himgiri, Zesta Puff brands of bakery shortening and
Margarine.
 During the year 2002-03, Godrej Tea Ltd, a new company co-promoted by the Godrej
group in the branded Tea/ coffee business commenced their operations. They
launched Godrej Noble House & Godrej Chai House brands of tea during the year.
They incorporated a new company, Godrej Global Solutions Limited, in the Business
Process Outsourcing (BPO) and back office support areas.
 During the year 2003-04, Godrej Agrovet Ltd, the subsidiary company GAVL formed
a wholly owned subsidiary, namely Golden Feed Products Ltd to carry on the
business of animal feeds.
 Godrej Consumer Products Ltd terminated the Processing Agreement with the
company for manufacturing of soaps with effect from April 1, 2004 since they had
expanded their own manufacturing facilities.
 During the year 2004-05, Godrej Agrovet Ltd, a subsidiary company formed a 50:50
joint venture with ACI Ltd, Bangladesh for carrying on businesses of Poultry Feeds,
rearing of poultry birds, etc. Also Godrej Agrovet Ltd acquired 26% stake each in
Hyderabad based Cream line Dairy Products Ltd. and Cream line Nutrients Ltd,
which are into milk and milk products.
 During the year, Godrej Healthcare Ltd, which is a service company in the Pest
Management Business, became a subsidiary of the company. Also, the company
entered into Share Purchase Agreement with Cbay Systems Ltd., USA (Cbay) for sale
of 100% stake in Godrej Remote Services Ltd to Cbay.
 During the year 2005-06, Export Oriented Unit (EOU) at Valia started commercial
production. The factory also commissioned a Pastillation plant to cater to the
domestic and international demand for long chain fatty alcohol in pastille form.
 In March 2006, the company sold the food division to Godrej Tea Ltd. with effect
from March 31, 2006. During the year 2006-07, additional fractionation column was
installed in existing Fatty Acid Fractionation plant at Valia for the production of
Lauric Acid.
 Godrej Beverages & Foods Ltd ceased to be the subsidiary of the company with effect
from May 08, 2006.
 During the year 2007-08, the company entered into a MoU with Godrej Properties Ltd
to develop and commercially exploit the lands leased to it by Godrej and Boyce Mfg.
Co Ltd. The company sold their Diagnostic division on slump sale basis to RFCL
Limited, a leading life sciences and laboratory solutions company with effect from
December 31, 2007.
 In February 2008, the company launched a wide range of mattresses under the brand
name of Godrej mattress in Orissa market in a bid to achieve the leadership position
in this industry.
 34

 Also, they entered into a joint venture with Malaysian firm IJM Plantations for
developing palm estates and palm oil mills in India. In June 2008, Godrej Agrovet
Ltd, a subsidiary of Godrej Industries Ltd transferred their poultry business to Godrej
Foods Ltd. During the year 2009-10, Godrej Agrovet Ltd (GAVL) transferred their
entire shareholding in Natures Basket Ltd (NBL) to the company. The company sold
their entire stake in Compass BPO Ltd.
 Godrej Hygiene Care Ltd (GHCL) (formerly known as Godrej Hygiene Care Pvt Ltd),
100% subsidiary of the company, was merged with Godrej Consumer Products Ltd
(GCPL) with effect from June 1, 2009.
 The company’s subsidiary, Godrej Properties Ltd successfully completed its IPO and
listed on BSE and NSE. During the year 2010-11, the company produced new
products, C20-90%, C22-98% Fatty Alcohols and Emulsifying Wax on commercial
scale. Also, they commissioned new spray dryer plant for the production of SLS
powder and needles.
 The company incorporated a separate R&D Centre, catering exclusively to the
Chemicals business. The GIL Research Centre will soon be a recognized In-House
R&D Unit, post their approval from the DSIR.
 The Board of Directors of Godrej Industries at its meeting held on 27 July 2010
approved capital expenditure of about Rs. 230 crore for setting up an oleo chemicals
facility at Additional Ambernath, Thane District, Maharashtra. The project would be
financed through a mix of internal accruals and debt. The company acquired 17 acres
of Industrial land at Additional Ambernath MIDC. The project involves expansion
(and relocation of some of the existing facilities from Vikhroli) at Additional
Ambernath Industrial Area, Thane district with a modern plant with state of the art
technology.
 The Board of Directors of Godrej Industries at its meeting held on 27 July 2010
approved formation of Limited Liability Partnerships (LLPs) with Godrej Properties
Ltd. (GPL) for joint development of property at Vikhroli.
 The Board of Directors of Godrej Industries at its meeting held on 24 January 2011
approved capital expenditure of about Rs 52 crore for expansion of fatty acids
manufacturing capacity at Valia, District Bharuch, Gujarat. The project would be
financed through a mix of internal accruals and debt. The Board of Directors of
Godrej Industries at its meeting held on 3 February 2012 approved a revised capital
expenditure of Rs 296 crore plus interest during construction and other charges. The
capital expenditure is being incurred over a two year period. The increased capital
expenditure is mainly on account of increased scope of plants, additional
activities/expenses on account of creating facilities in low lying land area and
inflation in material costs related to construction.
 On 30 March 2012, Godrej Industries announced that the Board of Directors of the
company has approved capital expenditure of about Rs 265 crore plus applicable costs
including stamp duty, registration charges and other charges towards acquiring a
Corporate Office at Godrej One, Vikhroli. Godrej One is the first phase of the Joint
development project The Trees between the company and Godrej Properties Limited,
a subsidiary of the company. The Securities Issuance Committee of the Board of
 35

Directors of Godrej Industries by a resolution dated 27 July 2012 allotted 1.72 crore
equity shares to successful applicants at an issue price of Rs 215 per equity share,
aggregating to Rs 370.51 crore, under the institutional placement programme. The
Board of Directors of Godrej Industries at its meeting held on 11 August 2012
accorded its consent for further investment of a sum of up to Rs 150 crore in Godrej
Consumer Products Limited and up to Rs 100 crore in Godrej Properties Limited. The
Board also approved exploring various possibilities of restructuring Godrej Hershey
Limited.
 On 7 September 2012, Godrej Industries announced that it has entered into a share
purchase agreement to divest its 43% stake in Godrej Hershey Limited to Hershey
Company for an undisclosed consideration. The transaction is expected to close by the
end of Quarter 2, fiscal year 2012-13. Post the transaction the company will become a
wholly-owned subsidiary of the Hershey Company. The Board of Directors of Godrej
Industries through a Circular Resolution on 17 December 2012 approved
consideration of a strategic partner(s) in the company’s subsidiary, Godrej Agrovet
Limited (GAVL) and also part sale of the company’s investment in GAVL. Godrej
Agrovet Limited (GAVL), a subsidiary of Godrej Industries Limited (GIL),
announced on 17 December 2012 that Temasek, an investment company based in
Singapore, has entered into a definitive agreement to acquire a 19.99% stake in
GAVL for a consideration of Rs 572 crore. The investment will be a combination of
primary and secondary investment with the primary investment intended to support
GAVLs future expansion plans.
 The Board of Directors of Godrej Industries at its meeting held on 22 March 2013
considered and approved the Scheme of Amalgamation of Swadeshi Detergents
Limited with Godrej Industries Limited (Scheme) and their respective shareholders
under sections 391 to 394 of the Companies Act, 1956. No shares are proposed to be
issued pursuant to the Scheme since Swadeshi Detergents Limited is a wholly owned
subsidiary of Godrej Industries Limited.
 The Board of Directors of Godrej Industries at its meeting held on 7 February 2014
considered and approved the Scheme of Amalgamation of Wadala Commodities
Limited with Godrej Industries Limited (the Scheme) and their respective
shareholders under sections 391 to 394 of the Companies Act, 1956. In consideration
for the amalgamation of Wadala Commodities Limited with Godrej Industries, Godrej
Industries will issue one equity of the company for every 108 shares of Wadala
Commodities held by the equity shareholders of Wadala Commodities and 10 shares
of the company to the preference shareholder(s) against 50 lakh, 0.01% Redeemable
Cumulative Preference Shares of Rs 10 each (Rs 9 called and paid up) held by
preference shareholder(s) of Wadala Commodities. Further, in order to ensure that the
interest of the public shareholders of Godrej Industries is not prejudiced and to ensure
that there is no dilution of shareholding of the public shareholders of Godrej
Industries pursuant to the amalgamation of Wadala Commodities with Godrej
Industries, Godrej Industries would issue bonus equity shares of the company credited
as fully paid-up equity shares to its shareholders (except to the Promoters and
Promoters group entities of Godrej Industries) in the proportion of one new fully paid
 36

up equity share for every 1,250 held by them in Godrej Industries by way of
capitalization of sum to the extent of Rs 67,680 standing to the credit of the General
Reserve Account of Godrej Industries.
 The Board of Directors of Godrej Industries at its meeting held on 30 April 2015
approved incorporation of Godrej Vikhroli Real Estate Limited or any other name as
may be approved by the regulatory authorities (GVREL), as a 100% subsidiary of the
company and capitalization of GVREL, subject to approval by shareholders of the
company. The Board also approved admission of GVREL as 40% partner in Godrej
Vikhroli Properties LLP (GVP-LLP) and simultaneously retirement of the company
from the said GVP-LLP and the consolidation of company’s/GVRELs interest in
GVP-LLP (joint venture entity) by amalgamating it into Godrej Properties Limited, a
company listed on BSE and NSE. This would be achieved through amalgamation of
GVREL with Godrej Properties Limited through court approved Scheme of
Amalgamation under section 391 to 394 of the Companies Act 1956.In October 2017,
Godrej Industries sold a part of its stake in the initial public offer of its subsidiary
company Godrej Agrovet. The Board of Directors of Godrej Industries (GIL) at its
meeting held on 14 December 2017 considered and approved the amalgamation of
Vora Soaps Limited (VSL) with GIL in consideration for equity shares of GIL.VSL is
a promoter holding company of GIL.VSL holds 19.39 crore shares, representing about
57.66% of the total paid up capital of GIL. In consideration for the merger of VSL
with GIL, GIL will issue an aggregated 19.39 crore shares to the shareholders of VSL
and compulsory convertible preference shareholders of VSL in the proportion of their
holding in VSL as on the record date.
 37

2.2 Process Overview:

PRODUCT STANDARD
PROFORMA FOR
ENQUIRY TERMS
APPROVAL
RECEIVED EVALUATION

ORDER DETAILS PURCHASE ORDER PROFORMA

FEEDING IN SAP RECEIVED CONFIRMATION

FACTORY ESTIMATED EXECUTION OF

PREPARES THE PLANNING DATES ORDER FOR
ORDER IN SAP SHIPMENT

FINAL
ORDER RECEIVED SHIPMENT BY
DOCUMENTS TO
TO CUSTOMER AIR/SEA
CUSTOMER

CUSTOMER
SALES RETURN
PRODUCT
(IF APPLICABLE)
EVALUATION
 38

The Valuable Supply Chain Process:

2.3 Import strategy (Palm Oil):

The market size is huge in India for import of Palm oil. Therefore Godrej Industries
chemicals Division import strategist experts have eyes on international market prices and
import Palm Oil or its factors required as raw material as per the increase or decrease in
international market prices. Palm oil is imported on the basis of forecasted demand in the
next quarters or periodical time assumed for forecasting. A management committee analyse
the previous orders and uses as well as last few years statistics to create a forecast demand
report.

India is the largest palm oil importer in the world. In little under three decades, India has
become the biggest buyer of vegetable oils in the world. A rising urban population, changes
in consumption patterns and domestic production that has failed to keep up with demand,
have contributed majorly to the country’s increasing importation of edible oils.

A committee of members have a constant eye on the international market trends and tends to
analyse the market situation to find out beneficial buying situation for the required raw
material i.e. Palm oil. The form of palm oil import depends on the flexible price catalogue
changing periodically in the international market. It can be crude palm oil, palm kernel and
palm fatty acid distillate.

The import market in India is extremely price-sensitive, experts and industry insiders say.
Importers are primarily looking at the lowest price points for various grades of palm oil and
are not yet overly concerned about how the commodity is produced. This is the primary
barrier to the uptake of ethical palm oil in the country. It is now clear that, in the face of
rising demand, domestic production will remain way under 10% in the years to come. That
essentially means that India will continue to import palm oil in various forms. However, the
dynamics of imports is not just dictated by demand but also geopolitics.

India imports a significant quantity of palm oil to meet the growing demand for edible oil.
The Government of India promotes oil palm cultivation in certain regions of the country, so
as to help them become self-sufficient in edible oil production. The Government’s unique
private-public partnership model also encourages farmers to take up oil palm cultivation.

Godrej is among the largest oil palm developers in India and work directly with the farmers
for the entire lifecycle of their crop. Over the years, they have developed more than 61,700
hectares of plantations across Andhra Pradesh, Telangana, Tamil Nadu, Goa, Maharashtra
and Mizoram. They produce a range of products, including Crude Palm Oil, Crude Palm
Kernel Oil and Palm Kernel Cake. Godrej has five oil palm mills across the country and
recently commissioned a mill in Mizoram, which is one of the largest private sector
investments in the state. In 2006 Godrej Agrovet (GAVL), part of the Godrej Group, signed a
MoU with Malaysia’s IJM Plantations to set up a joint venture in the palm oil business in
India. The Joint Venture enables GAVL to access IJM’s high-quality planting material in
Malaysia, besides helping it benefit from its partner’s superior yield and milling practices.
 39

Godrej Industries (chemicals) consume palm oil as a major raw material for oleo chemicals as
well as for soap business. For Manufacturing of Fatty Alcohols Godrej is mainly organised
import of Palm Fatty Acids Distillates (PFAD) and Catalyst, the 2 substances defined for the
manufacturing of fatty alcohol. Palm oil (raw material) is generally imported from Malaysia
which is the 2nd largest producer and exporter of palm oil in the world. The quantity of import
has influenced by some aspects like its price factor in international market, forecast demand
concern of the company and some conditions of the local government body on import of
palm oil in India.

Palm Oil is imported in bulk tanker vessels as per the requirement, international price effect
and the forecast demand. Someone can find current Malaysian palm oil prices for the day on
the websites of the Malaysian Palm Oil Council or the Malaysian Palm Oil Board, a division
of the Malaysian government’s Economics & Industry development division that supervises
the palm oil trade in Malaysia.

The following are a list of organizations dedicated to providing information about the palm
oil trade:

Malaysian Palm Oil Council (MPOC) – http://www.mpoc.org.my

Indonesian Palm Oil Association (GAPKI IPOA) – https://gapki.id

Roundtable on Sustainable Palm Oil – https://rspo.org/about

The import of palm oil or refined palm oil is subject to the certain conditions levied by the
Director General of Foreign Trade (DGFT) which is headquartered at Delhi. Both Crude
Palm Stearine (CPS) and Palm Fatty Acid Distillate (PFAD) are currently allowed for import
under ‘actual user’ condition and attract import duty of 7.5 per cent ad valorem.
 40

The imported palm oil has unloaded from

the tanker vessels to the ports storage,
consist of large storage tanks. These
storage tanks have various capacities of
liquid storage like 30 to 50 metric tonnes,
100 to 150 metric tonnes and more.

Catalysts are substances that speed up

reactions by providing an alternative
pathway for the breaking and making of
bonds. Key to this alternative pathway is
lower activation energy than that required for the un-catalysed reaction.

Catalyst can be imported from Denmark, USA, France, United Kingdom, the leading exports
countries for catalyst. Haldor Topsoe (Denmark), UOP (USA), Axens (France), BASF
(Germany) are some of the top companies playing role in catalyst exports. In India most of
the importers import catalyst from these country sources as per the international market price
fluctuations.

Godrej Industries also used to import catalyst from the above listed countries as per the
requirement and the lowest price strategy in the market. Catalyst can be imported in various
packaging like bags or drums packaging’s depends on the exporter.

2.4 Transportation

Port to Factory:

The tanker vessels are arranged to unload at Nhava sheva port (Maharashtra) & Hazira port
(Gujarat) as it is the nearest to the Ambernath & Valia factory respectively. These tonnes of
imported Palm Fatty Acids Distillates (PFAD) unloaded to the tank storages available at the
port facility. After all the import custom procedures the raw material (palm oil) is transported
to the factory in fractioned of quantity as per the
capacity availability of the storage tanks in each factory.
For this transport arrangements factory uses ISO tanks
container as shown in image here.

Godrej does not incurred or invest for own vehicles to

facilitate the transportation. They used to outsource the
transportation requirements with the trained and skilled
transporters in the market. As a huge level of
transportation requirement Godrej Industries logistics
team make a contract or agreements between the
transporters and company for timely availability of
ISO Tanks
required 20 feet, 40 feet or ISO tank vehicles. They have
to book or arrange the ISO tanks with the concern ISO tank operators in the market for
domestic transport purpose. It is adhere to the cleanliness of ISO tanks for desired liquids.
 41

COVID-19 effects on import of Palm Oil:

Palm oil shipments from Malaysia to top customer India may plunge to a fresh record low in
April as the virus lockdown and punitive import curbs cause demand to dry up.

Malaysia, the No. 2 producer, exported just 10,806 tons to the country in March, according to
Malaysian Palm Oil Board data. That’s a whopping 97% slump from a year earlier and the
lowest monthly total in board data going back to 2000.

2.5 Purchase / lead generation:

Godrej Industries has a wide range of products as discussed in earlier sections. They have
packaging and grading standard specs for the products offer by them. The products data and
specs are openly available on the website of the company (http://www.godrejindustries.com).
Customers and online visitors are able to get all the details of packaging and grading
standards of the each and every products manufactured by them on website.

Purchase team initiate the orders received through:

1. International promotions
2. Promotion councils
3. E-business strategies
4. Godrej Oversees / counterparts
Godrej Indonesia - Indonesia
Godrej Consumer Products International FZCO - U.A.E.
Godrej Household Products Bangladesh (Pvt) Ltd – Bangladesh
Godrej Household Products Lanka (Pvt) Ltd – Sri Lanka
Godrej South Africa – South Africa
Godrej Nigeria – Nigeria
Godrej Kenya – Kenya
Godrej Argentina – Argentina
Cosmetica Nacional – Chile
Strength of Nature - USA

For Domestic Market:

1. Marketing emails
2. Seminars
3. Exhibitions

Purchase team analyse the requirements of the client or customer and cross checks it with all
the details with the factory for

 Standard quality specs / grade

 Standard quantity in terms of packaging like plastic drums, steel drums, IBC tanks,
paper bags or plastic bags,
 Palletisation, stacking obligations, markings of the package and so on.
 42

 Estimated readiness of product

 Mode of shipment sea/air
 Inco Terms of shipment

Team handles necessary communication with overseas buyer on terms of payment and terms
of delivery, they arrange to issue proforma invoice with all the details required such as Inco
terms, product quantity and quality, palletisation if required for bags, cartons, drums etc.,
estimated readiness of the products, mode of transport sea or air shipment, any international
certifications requested along with the products, markings of the product container which
ever applicable, stacking obligations, importer company’s countries norms if any to be
included in the commercial invoice, if a company requires RSPO certification product, in
case of ISO tank – kosher seal is required etc., in turn receive export order from the overseas
buyer to supply the listed products in accumulated time period. The terms of payment for
export contract could be advance payment, Documents against Acceptance DA, Documents
against Payments DAP, or under Letter of Credit LC. In some cases Godrej require to cover
credit risk against the overseas buyer, then the head office operation team approach
concerned authorities to cover insurance. In India, ECGC is the authorized agency who
covers such credit risks for Indian exporters. The terms of delivery could be EX-Works,
FOB, CFR, CIF, DAP, DDP or any other Inco terms.

Team also takes initiative to feed the confirmed export order into the system to get it
executed further and take into consideration for planning and scheduling.

In Godrej Industries chemical division there are internal meeting arranged to plan and
schedule the material to take into production and to make available the achievable estimated
dates. There are huge terms of orders received to this department on daily basis so the
planning and scheduling is very much important for achieving the customer desired date of
shipment.

Generally the estimated time of products is differing from 1 month to 3 months. Also some
customers send their requirements early 6 months as the products of this organisation are
usually a raw material for the other industries and they will be scheduling them early for their
production requirements.

2.6 Factory role for Finish Products development:

PFAD (palm fatty acid distillate) is a by‐product of physical refining of crude palm oil
products and is composed of free fatty acids (81.7%), glycerides (14.4%), squalene (0.8%),
vitamin E (0.5%), sterols (0.4%) and other substances (2.2%). PFAD is used in the animal
feed and laundry soap industries as well as a raw material for the oleo chemicals industry.
Vitamin E, squalene and phytosterols are value‐added products which could be extracted
from PFAD and are of potential value for the nutraceutical and cosmetic industries. If the
PFAD is obtained from crude palm oil it is brown solid at room temperature and melts to a
brown liquid on heating.
 43

The ISO tank containers are used to transport the imported stored raw material to the factory
and stored at factory locations in large storage tanks. Logistics department arranges the detail
paperwork and permissions required to transport the material from port to factory location as
per their needs of production.

While the ISO tanks reaches to the factory the documents like permissions and invoice
details, waybills are checked and the carrier enters in factory premises. The same intimation
has been given to the procurement and logistics team.

SAP ROLE:

SCM software’s introduced to help in getting shipment alerts, managing warehousing

inventory, demand forecasting, or using analytical decisions, you can bet the warehouse and
logistics personnel managing.

 SAP
 Oracle
 JDA Software
 Infor Global Solutions
 Descartes Systems Group

Logistics team unload the material into the factory premises and store into factory storage
tanks for use in production. The same time logistics team takes the GRN in SAP and so the
material inward intimation is automatically triggered from factory to head office which is at
VIkroli, Mumbai. The overall planning and scheduling of domestic and international
shipments are managed by the head office location. Factory as well as Head office has a well
trained and experienced employees who are managed the tight deadlines and schedule to
maintain the execution and delivery of customer desired specs product on time. SAP helps to
optimise and manage the activities and controlled communication in the organisation at
higher level. Godrej Industries have managed to organise a dedicated team for the
development and technical issues arising out of the system. This team is specialised for
analyse and maintain up to date data in system. This team and the executive level team have
the responsibility to develop new T-Codes and reports to get better and easer to schedule the
material in system. It enables the factory as well as head office to manage the tight deadlines
of the customers and getting the data ready for planning purpose. It helps for better decision
making and forecasting.
 44

2.7 Factory Logistics / HO operation team:

The initiated order by purchase team / logistics team notified through SAP to the factory
logistics team for order preparation & execution. Logistics team coordinates with production
team for the readiness, available packing descriptions, and inventory to optimise and acquired
the production dates for delivery. The factory logistics team coordinates with the head office
planning execution team for further available and organise required inventory or paperwork
for the products. Factory logistics team put the dates of material readiness into the SAP
system which intimates the head office team and they can plan and execute the shipment for
further process.

There are lot more applications to do along with the production process in factory operations
level.

Head office team coordination:

SAP system software is playing a dominant role in this organisation. Raw Material stock,
finished goods stock, inventory, payment process, planning, forecasting and till the shipment
executed lots of activities are maintained by this software.

Factory team after confirmation of material readiness and inventory arrangements schedule
manpower for the shipment and put the readiness dates in SAP. These dates are accessible to
all the head office export operation team. They schedule further and arrange for the
transportation as well as specific containers required for the shipment. A freight forwarder,
forwarder, or forwarding agent, is a person or company that organizes shipments for
individuals or corporations to get goods from the manufacturer or producer to customer or
final point of distribution. Forwarders contract with a carrier or often multiple carriers to
move the goods. A specific carrier will be arranged by the head office operation team to
handle the cargo to the customers place or destination. Freight forwarders provide containers
/ ISO tanks in case of liquid cargo to the team on teams request for service. Team coordinate
for all the necessary documents required for booking the cargo and arrange a container for the
concern shipment. After that the team also required a transporter who can carry the container
to the factory premises for loading the cargo. Godrej industries have a large scale business
turnover and hence they arrange specific tasks of operations that can be easier the flow of
goods. They have managed to arrange factory stuffing permission for their both factories
Valia & Ambernath so the cargo will not delay and the container will stuff at the factory
premises and sealed after loading the cargo. A transporter carries the container to the factory
for stuffing the cargo.

Factory operations team is well organised for stuffing the goods properly. They packed the
material into bags with the markings received from the customer or the standard marking of
the factory fo the specific material for identification. They use labours; forklift to handle the
material packed in bags, drums or carboys. For safety purpose mostly the material has been
palletised as per requirements. The vessels or say ship that carries the containers have
encountered external forces on ship which makes the containerised cargo unstable or result in
cargo damage. To make the cargo undamaged till the destination operation team make
 45

strapping & lashing to all the materials carefully. Improper cargo lashing and failure to
adhere to the procedures required for cargo stowage on ships is dangerous to property, life
and environment at sea. If any international quality check agencies like SGS, BVQI etc. are
involved as per the terms and conditions between organisation and overseas buyer, such
inspection is arranged. After completing necessary quality check (QC) formalities, the goods
for export are arranged for proper packing to meet export quality. These agencies arrange
certifications in return and allow the exporter to go ahead for shipment. The export orders can
be full container load or loose container load, the operation team works accordingly.

Head office documentation / operation department prepares export invoice, export packing
list etc. based on the purchased order or LC. Application for certificate of origin (GSP –
Generalized System of Preference) and other required documents required for importer are
also prepared.

Once the container is booked and concern vessel details are received to the head office
operation team they will be arranging the final customs invoice and other below listed
documents for the cargo movement and send them to factory for realising the documents hard
copies along with the cargo for customs clearance purpose.

The team sends below documents to factory by email.

 Customs invoice
 Hazardous or non-hazardous certificate
 COO or if any,
 Purchase order
 LC copy if applicable

Necessary documents required for export customs clearance purpose are forwarded to
Custom House Agent (CHA) or customs broker. This agent clears the cargo for custom
clearance. After some customs procedure the containers get in to the port area and loaded on
the vessel for destination.

But here is not the end of things, office documentation team send an SAP system base alert to
each and every of its customers as soon as the containers / ISO tank loaded on vessel. Team
also prepares post shipment documents immediately after the received of Bill of lading in
case of sea shipment and Air way bill in case of air shipment. They send the soft confirmation
to the customer with invoice, packing list and Bill of Lading / Air way bill. The team also
initiate the final documents to them ASAP through DHL or Fed-ex. It enables the customer to
clear the shipment at destination against these documents.

Though there are a lot of customers and shipments for the factory per day they have managed
a way to provide each accurate details to the customers automatically with the use of SAP
software.. For Valia, factory almost having 10 to 12 containers to be stuffed daily and for
Ambernath it is 4 to 7 containers daily. Hence for such a huge customer approach they need
to expedite the cargo information to the customer timely. They have designed an ECRM alert
system which needs to triggered one time manually and it sends the containers movement, on
 46

board details and payment notifications to the concern customers on daily basis as the
containers released from the factory. It helps the customers too for getting the consignment
movement details on time. It enables the customers to make the payment on time.

Inward Goods
Received
Note

Warehouse Planning &

Manage Scheduling

Heat Factory Production

Treatment Team
Certifications Team coordination

Testing Lab Inventory

Certifications Management

Transport
Coordination

Warehouse Management:

Godrej has its own warehouse management solution. There is a large storage area in both the
factories Valia as well as Ambernath. They have Chemical storage system for hazardous
chemicals and radioactive material with 90 and 120 minute fire retardant. It has storage
solutions for an efficiently move, store or handle materials in a physical facility. The ability
to conceive & implement complex solutions which help optimise space, reduce inventory,
increase accuracy of picks & lower operating cost. Its warehouses have resorted to vertical
stacking, aiding easy and quick identification and location of finished goods.

Godrej is having own warehousing solution managed subsidiary. They provide Storage
solutions for an industry that needs to efficiently move, store or handle materials in a physical
facility. They have the ability to conceive & implement complex solutions which help
optimise space, reduce inventory, increase accuracy of picks & lower your operating cost.
They are market leaders in the Warehousing Storage business in India since 4 decades and
possess proven credentials with more than 10,000 installations of credit.
 47

Order
Management

Final Docs. Planning &

to Customer Scheduling

Export
License
HO CHA / Freight
forwarder
Processing Team coordination

Documents
Transport
of Govt.
Arrangement
bodies
Customer
Coordination

Export Transportation

Godrej Outsource for transportation facility required for transporting the finish goods
containers from factory to the port area for exports. Outsourcing company's logistical needs
not only reduces risks but it also reduces financial risk of an investment in property,
equipment, and transportation in the even company or business downsizes. The company, not
the carrier, bears the ultimate responsibility for delivering packages to consumers, so
companies are finding it increasingly important to examine various transportation
management options. The most significant reason to outsource transportation management is
to receive volume discounts. The provider will have significant buying power in the
marketplace and will receive deep discounts for their purchases (i.e., trucks, carriers, etc.).
Because these discounts are based on volume, they will likely be much greater than discounts
companies can receive on their own.

Something to keep an eye on within transportation management is on-demand, or expedited,

services. On-demand services are transportation services that are not planned for (or not
known about) in advance. Outsourcing transportation management needs can save you plenty
of time, money, and resources.
 48

Freight Management:

Godrej Industries manufacture and market over 100 chemicals for use in more than 24
industries. Our products are exported to over 80 countries in North and South America, Asia,
Europe, Australia and Africa.

Godrej Industries (chemical Division) use multimodal transport to deliver the products across
the globe. Sometimes as per the customer needs air as well as sea mode transportation is
arranged. There are lot of freight forwarders / agents are formulated in the market to give
services. Godrej has to arrange the containers to transport their products to the different
sections of the world on right time. For this arrangement they used to outsource and
coordinate with the quality freight forwarders to arrange services for international
transportation for their products. It is depends on the purchase order nature that how the
customer want to deliver the product by sea mode or air mode.

Sales return:

In some rare cases due to some issues the material can be returned to the exporter. Due to
technical reasons the material doesn't qualify or some other strong reason quantify the export
return. This will lead to huge losses to the company in case of export products are in bulk
quantity.
 49

2.8 Path to sustainability

Since India's palm oil imports account for nearly 20% of the global trade, it has a big effect
on efforts to make the production and processing of the commodity sustainable, ensuring that
no further environmental damage is done.

At Godrej Industries (Chemicals), sustainability has been a lever of growth for a long time.
The innovative products offer solutions that enhance utility of the end applications, while the
processes ensure efficient use of resources and reduce impact on the environment. This goes
beyond products and production processes, a drive for sustainability throughout the value
chain. For Godrej sustainability is about finding more efficient and innovative ways of
running business.

Godrej Industries also investing in energy efficiency, waste and water management,
sustainable materials and supply chain to reduce the operational and environmental footprint.
The fiscal year 2018-19 is a result of continued focus on improving efficiencies especially in
energy conservation, being conscious of capital spends, and being efficient in utilization of
capital and good management of working capital.

Godrej group’s vision ‘Godrej Good & Green’ for building a more inclusive and greener
world. As part of Good & Green by 2020, we aspire to train 1 million rural and urban youth
in skilled employment, work towards environmental sustainability, and innovate for good and
green products.

In Godrej Industries environmental sustainability is a key to manufacturing processes and

supply chain. They are implementing several initiatives across manufacturing locations and
have set targets to reduce specific energy, specific water consumption, specific waste to
landfill, specific greenhouse gas emissions, and increase renewable energy portfolio. Their
manufacturing plants operate on a ‘zero-discharge’ basis for effluents by use of RO plants.
Now over 45 per cent of the energy they consume is derived from renewable sources.

Godrej Industries sustainability achievements: 2018-19

 38% Reduction in specific greenhouse gas emissions

 42% Energy from renewable sources
 35% Reduction in specific water consumption
 71% Reduction in specific waste to landfill

Sustainable Procurement Policy:

To align with the sustainability commitment, they have developed a Sustainable Procurement
Policy, which is an extension of our values; applicable to all suppliers. They expect from
suppliers to operate in accordance with the principles as outlined in this Policy, while
adhering to all applicable laws and regulations. In the policy, it go beyond legal compliance
requirements by drawing upon internationally recognised standards in order to identify and
 50

define best practices from across the globe. The policy outlines the expectations with regards
to ethics, business integrity, human rights, health & safety, environment, the local
community, quality of product & operations, human rights aspects like collective bargaining,
child labour, forced labour and other parameters. Godrej periodically review the procurement
policy for improvement and to ensure that it continues to help us move towards the vision.

Bio Based Surfactants:

In line with the growing demand of green products, and furthering our environmental
sustainability, we are working on several oleo based green ingredients for home and personal
care applications that can replace existing chemical ingredients. We have built our first ever
pilot fermentation plant for the production of a speciality Biosurfactant, named as BioGod.
BioGod is our unique offering of a bio-surfactant from sophorolipid category which has a
very low carbon footprint. This non-ionic biosurfactant has an edge over chemical surfactants
because of its distinctive characteristics like fast and complete biodegradability, better
surfactancy, non-toxicity, good activity at extreme pH & salinity, and micro emulsification
capability. It also demonstrates antimicrobial activity to the formulations and end
applications.

2018-19 – Green goals and performance:

Emissions:

Godrej Industries runs energy intensive operations; emission management is one of critical
importance. It is also one of the material aspects. In order to ensure all the emissions are
managed responsibly it is important to follow systematic approach and make continuous
effort to reduce overall emissions. The sustainability vision and continual efforts have helped
to reduce a considerable amount of carbon emissions. To manage the carbon impact and
achieve emission reduction goals, they have strategized a number of interventions such as
 51

replacing fossil fuel with biomass in boilers, utilisation of pitch in boilers to enable the reuse
of organic waste as fuel, among others. Their interventions have helped us mitigate 40
percent of the carbon impact as compared to the baseline in FY 2011. They monitor
emissions across our facilities to identify high impact zones. Emissions data is verified
through a third party certification body, TUV India Pvt. Ltd. In FY 2018-19, the total carbon
impact, both direct and indirect, at Valia and Ambernath was 87602 tCO2e (scope 1+2).
Carbon impact in Wadala was 2,221 tCO2e (scope 1+2).

In FY 2018-19, there was a 40% reduction in specific GHG emissions. They also achieved
29% reduction in scope 3 emissions from logistics due to redirection of finished goods from
Jawaharlal Nehru Port to Hazira Port.

Integration of Renewable Energy:

Godrej Industries is taking efforts to increase

renewable energy portfolio include utilisation
of manufacturing by-products in energy
production, use of biomass briquettes and use
of solar energy. In 2018-19, 45 percent of
energy consumed has been derived from
renewable sources. The Valia and Ambernath
plants also fulfil their energy requirements through their solar rooftop installations, of 315
KWp and 189 KWp respectively.

Waste Management:

In the chemical industry, waste management is an extremely prudent aspect. At GIL

Chemicals, they have developed a robust waste management framework to meet with the
sustainability challenges of the chemical industry. All the material use and manufacturing
processes are conducted in a conscious manner to yield minimal waste. They follow three R’s
(reduce, recycle, reuse) method to go beyond compliance to ensure effective waste
management. The waste generated from facilities is well within the permissible limits
required by local, regional and national norms.

The waste management strategy includes collection, segregation, recycling and disposal in a
scientific manner. They have an in-house effluent treatment plant (ETP) to treat waste water
generated at own facilities. The biological and chemical sludge generated from the ETP is
separated; biological sludge is converted into compost and used for gardening and chemical
waste is made to go through further treatment. Currently, they are testing waste to energy
technologies to help us manage our chemical and industrial wastes through plasma
gasification process. Since 2013, they have been involved in producing bricks from the ash
generated during manufacturing processes.
 52

In FY 2018-19, the waste footprint was found to be 6011 tons; 502 tons being non-hazardous
waste and 5509 tons being hazardous waste. Their waste to landfill impact per ton of product
produced has reduced by 66 percent as compared to 2011 baseline.

3. Objective of the study

3.1 Scope:

This study is focused on the overall supply chain management – business activity of Godrej
Chemicals division (Godrej Industries Group). Godrej chemicals use the raw material and
converse it into higher commercial value final products. They use these products (which are
raw material for other industries) internal consumption, to sell the other customers all over
the world as well as in domestic market. Supply chain management is the life blood of entire
operational activities.

Supply chain management (SCM) is the process and activity of sourcing the raw materials or
components an enterprise needs to create a product or service and deliver that product or
service to customers. Effective supply chain systems help both manufacturers and retailers
reduce excess inventory and cost. This decreases the cost of producing, shipping, insuring,
and storing product that cannot be sold. Supply chain management mobilise and
operationalise material and executes implementation of e-business activities. It is involved in
multiple stake holder’s suppliers, manufacturers and customers.

Godrej chemicals import the raw material (Palm Oil) and convert it into the products such as
fatty alcohol, fatty acids, glycerine, surfactants, oleo derivatives and specialty chemicals.
They consume these products internally as well as use to sell in the international market.

My study will be confined to end to end supply chain management of raw material (Palm Oil)
and its distribution to final customers globally. Supply chain management plans implement
and contracts the material movement involved in different organisations, suppliers,
manufacturers and distributors.

3.2 Managerial Usefulness:

 It helps to understand the current market situation of palm oil import in India as well
as Indian palm oil requirement for industries.
 To understand the international logistic overview from suppliers (importer).
 To understand the value addition process from raw material (Palm Oil) to final
products (fatty alcohol, fatty acids, glycerine, surfactants, oleo derivatives and
specialty chemicals).
 To understand the distribution of final products to end customers globally.
 53

 To analyse the effective SCM and logistics process used to improve overall
performance.

3.3 Limitations:

The data collection is done by the secondary research methods and it is limited to web
sources, annual reports, magazines and a company web portal. Some of the techniques or
processes in lead or orders generations are not emphasised as it violates the company
information copyright.

The study could states only about the resources used for chemical firm supply chain
management process which can be differ for other products.

The organisations performance can be affected by some global issues like current (COVID-
19) scenario and they are not accounted for this study.

Due to the monthly changes and developments in the organisation some data or calculations
may vary.

This is to study only Godrej Chemicals division’s supply chain process management and
could not covered rest of the Godrej businesses
 54

4. Research Methodology
The data is collected from primary as well as secondary data collection method.

Primary Method: Primary data is collected through the questionnaire. The data collected has
been concluded after personal conversations with the export team of Godrej Industries
(Chemicals Division) and their knowledge of the process and working in an industry. These
employees are working in an industry from more than 10 to 15 years. They have the working
knowledge of the process and daily hands on documentation required for the process.

Secondary Data: the secondary data is gathered from sources of:

 Magazines
 Company Annual Reports
 Company Report on Sustainability
 Company Website
 News Articles for Palm oil Import in India

Research Design: The research design will be used in this study is both ‘Descriptive’ and
‘Exploratory’

Method used to present the data:

The data is obtained through the direct questions is represented in description along with the
suitable images to explain the supply form and relate the situation. There are some analysed
data which is represented by in graphical form.

Not everything that can be counted counts and not everything that counts can be counted. (A.
Einstein) So, the present study adopted qualitative research methods on the basis of document
studies, observations and interviews from the real world projects as discussed in order to
meet the research objectives.

For the present study, a qualitative method of data collection was utilized where the data is
expressed in words rather than expressing in a lot of numbers.

This method is carried out to fulfil the research objectives, primary and secondary are the two
data collection methods. The present study adopted mostly secondary data for data collection.
The semi-structured interview is adopted as data collection technique so as to answer the
research questions. In this study research, the interviews are a most suitable method for data
collection. The semi-structured interview also provides the solutions are aroused by the
participants and proper answers also given. Further, additional details are taken from follow-
up questions. Secondary data can be collected through different techniques and approaches.
This data collection approach encompasses both quantitative and qualitative information.
 55

5. Data Analysis & Interpretation

1. Which are the most accountable products for revenue as per latest record
available?

Total Revenue of Q4 for FY 2018-19

Products revenue Fatty Alcohol

6% Fatty Acids
26% Glycerin
19%
Surfactant
8%
Others
41%

Interpretation:

As per the above diagram the organisation is mostly earning revenue from Fatty Acids and
Fatty Alcohols production. For the financial year 2018-19 quarter 4, there are more sales for
Fatty acids and Fatty alcohol in terms of other products. It almost occupies 65 to 67% sale of
the total revenue.

2. In which industries the products are mostly demanded?

Base: 50 orders of Fatty Alcohol

Industry Orders

4 Tyre
10
16 Soaps & detergents
13 Neutral chemicals
7 Personal care & Beauty
Foods & Feeds

Interpretation:

The above diagram is based on the data of 50 orders for Fatty alcohol. The product Fatty
alcohol is mostly used in the production of detergent and soaps and secondly in the process of
 56

making personal care and beauty products. There are total 16 orders from soaps & detergents
manufacturing industry followed by 13 orders from personal & beauty care products industry.
For food industry 10, neutral chemical 7 & lastly 4 orders accountable for tyre manufacturing
industry.

3. How the organisation taking care for sustainability and environment?

Godrej Sustainability Report 2018-19

80%
70%
60%
50% 45%
40% 27%
Reductions
30% 67%
Achieved
20% 43% 42%
30% 30% Goals
10%
0%
Energy Improved Carbon Reduced in Reduction in
Consumption Renewable Neutrality Water Waste to
Energy Reduced Consumption Landfill

Interpretation:

Godrej Industries has published their sustainability report 2018-19 and it seems they are
taking more efforts towards the environment and sustainability. The carbon emission has
been reduced to 43% from the last year. The waste management is also well achieved and
reduced waste to landfill 67%. Water is most important in industry level and it’s difficult to
manage the resource properly, while Godrej Industries Innovative water management systems
& process improvements are helpful to achieve this reduction of 42% in water consumption.
 57

4. What is the transport systems used to ship the products?

International transport
0
18
Sea
Air
82
Road

Interpretation:

On the basis of accumulated 50 orders it seems that almost 41 orders are instructed to
expedite through sea shipment mode and rest 9 orders are to be shipped by Air transport
mode. So it is clear that 80% of shipments are executed by sea shipment while other 9% by
air shipment.

5. Which system software is used to manage the orders and supply chain activities?

Softwares to manage the SCM activities

SAP

Email Softwares to manage the SCM

activities

MS Office

MS Excel

0 20 40 60 80 100
 58

Interpretation:

Godrej Industries has adopted SAP system software in 2008 for its all the work and supply
chain activities. Since then all the raw material requirement, stock, finished goods, all the
reports, inwards, outwards, payments are managed by SAP. The organisation uses this
software in every term of supply chain transaction. Also with this emails, for making bank
documents MS-office & excel, to enhance the decision making takes reports from SAP into
excel is used.

6. What are the containers used to store the finished products in factory?

Answer: Steel drums, Plastic drums, Paper bags, Plastic bags, Carboys, Tank bulk
containers

Interpretation:

The finished products are stores as per the finished form of the product. If the product is in
liquid form it can be stored in steel drums, plastic drums and if the products is in solid form
like pastille form it is stored or packed in the paper bags or plastic bags as per the customers
requirement. When the finished product is ordered in bulk and it is in liquid form, tank
containers are used to ship as well as to store the products.

7. What are the modes of stock management?

Stock Management

OTHERS

EOQ

Stock Management

LIFO

FIFO

0 10 20 30 40 50 60 70
 59

Interpretation:

Orders processing are managed with FIFO (First In First Out) method. Also few orders are
distributed on LIFO basis which is Last In First Out. For some products are processed with
Economic orders quantity to get the higher efficiency as well as the lower cost level.

8. How much is the time gap between order and order receipt?

Orders

70

60

50

40
Orders
30

20

10

0
Half yearly Quarterly One month More than 1
before week

Interpretation:

Though mostly orders are received from overseas buyers it received on quarterly basis. Also
some of the customers plan their activities in well advance and place the orders half year
before for bulk productions. For seasonal times there are more productions and invited extra
raw material which creates immediate orders includes one month prior or 1 week prior orders
as the destinations transit time are booked.

9. What are the major problems faced by the organisation?

Extreme weather
Local Transportation Issues Loading Capacity Re-orders
conditions
 60

Interpretation:
Local transporters creates problems due to the breakdown of vehicle and other issues which
causes delay in shipments. In rainy season as well as summer vacations there is lack of
vehicle drivers on time which results in unavailability of vehicles on time. In seasonal time
the orders are high in terms of the factory capacity and it has to manage on top priority while
some orders are replaced with the increased or decreased in quantity at the time of actual
shipment. It creates a huge problem in factory level.

10. What are the effects of COVID-19 on your organisation?

300

250

200

Manpower
150
Orders
Transportation
100

50

0
data1 data2 data3 data4

Interpretation:

COVID-19 has created drastically effects on many organisations. Due to the pandemic
manpower is effected and production has slows down which resulted in lower activities. Also
the same way orders are reduced as the pandemic spreads all over the world. Lockdown is
implemented everywhere as per the situation and transportation affected as well as backlog is
created.
 61

6. Finding and Recommendation

 The organisation mostl y depends on the import of Palm Fatt y Acids
Distillates (PFAD) and catal yst to be used as raw material and they
need a constant eye on the international market price of Palm Oil.

 Fatt y Alcohol and Fatt y acids have the significant and high demand as
a raw material for other industries.

 Being the largest consumer with a high demand growth rate, India is an
important consumer of palm oil in the global market .

 To satisfy the needs of palm oil and to maintain the sustainabilit y ,

organisation has started its own company Godrej Agrovet which is for
animal feed and agribusiness purposes. A company mission is to
improve the productivit y of Indian farmers by innovating products and
services that sustainabl y increase crop and livestock yields.

 To maintain the flow of import of palm oil and its substances

government has to deploy some strong initiatives.

 India is the largest importer of palm oil and fulfils most of demands
from its process ed substances.

 There is unsustainable expansion of oil palm cultivation in India

 A study by Carlson et al. (2018) shows that certification by the RSPO

lowered deforestation by 33% from a counterfactual of 9.8 to 6.6% per
year between 2001 and 2015, in Indonesia.

 NGOs play an important role in counteracting the negative impacts of

the palm oil industry, and in pressuring governments toward reform
and better policy.

 In this era of global biodiversit y conservation, India cannot sustain its

future palm oil needs, just by increasing the import quantit y, as it
would be exporting its biodiversit y issues to the suppl ying countries.

Recommendations:

 India should use the leverage to promote the trade of sustainable palm
oil by implementing strong import regulations.

 We should support the Government of India’s views to expand oil palm

cultivation in India.
 62

 India Must Consider Sustainable Oil Palm Cultivation .

 Recommend tackling this issue using an integrative framework

involving scientific research, Social measures, and Political actions .

 We suggest that plantations must be increased on existing agricultural

lands by converting other oil seed crops, such as rap eseed, peanut and
sunflower seed, and staple food crops such as rice, to oil palm
plantations.

 Oil palm is extremely water intensive, requiring 280 to 350 L of water

per plant per day. With rising temperatures, it will be difficult to rel y
on precipitatio n alone for agriculture. Measures should be taken to
effectivel y harvest rainfall.

 Operational guidelines include incentives for farmers to set up drip

irrigation and bore wells and to construct ponds and purchase pump
sets for irrigation .

 Replenishment of ground water must be immediatel y undertaken to

sustain irrigation.

 The local conservation organizations dealing with the oil palm industry
involve the RSPO in their action plans. One of the most important steps
in this regard is for consumers, conserva tion scientists, civil societ y
groups, and the international communit y to lobby the Government of
India to formall y recognize and endorse the RSPO certification
schemes through appropriate policies.

 The RSPO (2018a) is non -existent in the growing Indian o il palm

industry, with onl y 49 members . This has to be increased and maintain
the sustainabilit y.

 A clear regulatory framework must be prepared regarding land usage

for oil palm in such sensitive areas.

 A regulatory policy must be designed before the expansion of oil palm

plantations in such traditional agriculture and communit y -owned lands
of India to prevent suffering of the local communities in the future.

 Under scientific research, we recommend an explicit mapping to

identify suitable areas for oil palm production and artificiall y
facilitating the increase of groundwater level. Under social measures,
we recommend involving local communities in decision -making
process, protection of communit y-managed forests, and involvement of
Roundtable for Sustainable Palm Oil and local NGOs.
 63

7. Limitations
 The study has obtained the data and findings without violating the
organisation policies for internal data.

 The data is bound to the overall anal ytics and r eports of the other
materials available on palm oil and its substances. Hence the data can
be varying.

 There are some points which are not disclosed in these reports like the
total import of a company, strategies used to manage the internal
suppl y, higher committee decisions taken to improve the strategy
constantl y.

 It is not possible to observe all the palm oil suppl y and its uses in
Indian industry, data is onl y li mited to certain company jurisdiction.

 The assignment is limited to the palm oil substances used in Godrej

Industries. There are lot more products and commodities are depends
on palm oil such as food and food products.

 Oil palm has a long gestation period and restricts income flow to
farmers for at least 4-5 years.

 Small holdings of farmers with limited resources.

 Fluctuation in prices of CPO in the international market and price of

FFBs.

 Erratic monsoon leading to shortage of water.

 Variation in import dut y on edible oils.

 One of the limits of future oil palm expansion is the competition for
land with other uses.

 It is difficult to include all the aspects in this study.

 64

8. Conclusion

 After this research study it is very clear that India is the major
importer of palm oil and its substances & the demand is increasing da y
by day.

 It is very difficult to survive the small scale business in long run

though such a fluctuation in international prices and Indian import
regulations.

 India has taken some major decisions on development of oil palm

plantation in India and started steps towards sustainabilit y.

 Indian farmers and investors needs to educate about the cultivation

activities required for oil palm plantation India.

 Palm oil consumption increased 230% in almost 2 decades, yet India

imports most of it .

 Oil palm is affordable as it has a highest affordable yield but the price
of palm oil is prone to huge fluctuations.

 India is still not been able to achieve self -sufficiency in the production
of oil pam fruit.

 Environment and sustainabilit y are also the most important factor for
chemical industries and Godrej Industries has already taking initiatives
towards sustainability.

 Just like Godrej Industries all the other industries should take more
initiatives towards sustainabilit y then only the dependency of palm oil
import can be reduced and managed.
 65

9. Bibliography

www.godrej.com

www.godrejindustries.com

https://www.isealalliance.org/sites/default/files/resource/2018-06/Responsible-Business-
Practices-in-the-Indian-Palm-Oil-Sector-CRB-Feb-2014-PDF.pdf

https://d2ouvy59p0dg6k.cloudfront.net/downloads/palmoilmarketsustainability_india_2
013.pdf

https://www.theguardian.com/news/2019/feb/19/palm-oil-ingredient-biscuits-shampoo-
environmental

https://www.wwf.org.uk/updates/8-things-know-about-palm-oil

https://scroll.in/article/967186/as-worlds-largest-importer-of-palm-oil-india-has-a-duty-
to-push-for-ethical-production-practices

https://thewire.in/business/india-palm-oil-paradox-import-cultivation

https://www.downtoearth.org.in/coverage/agriculture/palm-oil-consumption-increased-
230-in-almost-2-decades-yet-india-imports-most-of-it-61040

https://www.fdi.finance/sectors/chemicals

https://www.indiachem.in/
 66

10. Appendix

Palmae: chiefly tropical trees and shrubs and vines usually having a tall columnar trunk
bearing a crown of very large leaves; coextensive with the order Palmales. Arecaceae,
family Arecaceae, family Palmaceae, family Palmae, palm family, Palmaceae.

GreenCo: This Rating is the "first of its kind in the World" holistic framework that evaluates
companies on the environmental friendliness of their activities using life cycle approach.
Implementation of GreenCo rating provides leadership and guidance to companies on how
to make products, services and operations greener.