PETROCHEMICALS

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a CSR
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Presented by: Himanshu Kum

 Preface
Introduction
Performance
Future Prospect
Contribution
Growth Drivers
Issues
Top Companies
Reliance Industries Limited
BP
 Introduction
• Petrochemicals are chemicals made from
petroleum (crude oil) and natural gas. The
petrochemical industry of today is an
indispensable part of the manufacturing and
consuming sectors, churning out products
which include paint, plastic, rubber,
detergents, dyes, fertilizers and textiles
• Paradigm shift from West to East, with the
Middle East emerging as global production
hub with natural advantages of low cost
feedstock and Asia becoming a major
consumption centres
Contd..
• Job in the petrochemical industry offers
lucrative income, employee welfare facilities
and career development opportunities.
Career opportunities for educated, highly
skilled and motivated workers include jobs
as engineers, operating technicians, lab
technicians, electricians, environmental,
health and safety technicians and managers
and supervisors
 Performance
• The global petrochemicals sector was ravaged
by a huge drop in demand for its products due
to the global economic slowdown
• The Indian petrochemical industry has been
one of India’s fastest growing domestic
industries, comprising both small and large
scale enterprises. Due to its linkages with
various domestic manufacturing industries
such as pharmaceuticals, construction,
agriculture, and textiles etc it is undoubtedly
an integral part of the energy value chain
 Future Prospects
• The aggregate demand of all the key segments in
the petrochemical industry is likely to regain a
sharp positive trajectory, with key players aiming
to ramp up scale and increase recruitment.
Hence, those graduates with a strong technical
and/ or engineering background should remain
confident of being able to find decent
employment opportunities
• This is not an industry suitable for the initiated,
and fresher with general degrees would be best
advised to seek alternate options elsewhere
Contribution

51%

7%
 Growth Drivers
• Demand for dyes, speciality chemicals and
intermediates: Demand for intermediates, dyes,
speciality chemicals etc will increase the demand for
petrochemicals. This will result in a significant
growth for this industry
• Restart of eight public sector fertilizer plants:
The government’s decision to revamp eight public
sector fertilizer units by 2009, will lead to a
significant growth of the industry, despite a weak
overseas market
• Booming plastic industry: Growing demand from
the plastic industry will lead to a strong demand in
petrochemicals
 Issues
• Raw material costs: A steep rise in raw
material costs on account of a drastic hike in
crude oil prices may affect the profit margins of
companies operating in this sector
• Reduced exports: A slowdown in the US and
European economies will result in a significant
lowering of export revenues
• Low demand from other sectors: A slow
demand from textiles, heavy construction and
pharmaceuticals industry for petrochemicals will
hinder the industry’s growth
 Top Companies
• BASF (Germany)
• Dow Chemical (USA)
• ExxonMobil Chemical (USA)
• Lyondell Basell Industries (Netherlands)
• INEOS (UK)
• Saudi Basic Industries Corporation (Saudi A
• Formosa Plastics Corporation (Taiwan)
• Sumitomo Chemical (Japan)
• DuPont (USA)
• Chevron Phillips (USA)
 CSR
• Corporate social responsibility (CSR) or
corporate citizenship entails companies
behaving in a socially responsible manner,
and dealing with other business parties who
do the same. With growing public awareness
and demand for socially responsible
businesses, it is little wonder that companies
of today take corporate social responsibility
into account when planning future socially
responsible business operations
 Reliance Industries
•
Limited
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest
private sector enterprise, with businesses in the energy and materials value chain.
Group's annual revenues are in excess of US$ 44 billion. The flagship company, 
Reliance Industries Limited, is a Fortune Global 500 company and is the largest
private sector company in India.
• Backward vertical integration has been the cornerstone of the evolution and growth
of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of
backward vertical integration - in polyester, fibre intermediates, plastics,
petrochemicals, petroleum refining and oil and gas exploration and production - to be
fully integrated along the materials and energy value chain.
• The Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and
chemicals), textiles, retail and special economic zones.
• Reliance enjoys global leadership in its businesses, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the world
in major petrochemical products.
• Major Group Companies are Reliance Industries Limited (including main subsidiary
Reliance Retail Limited) and Reliance Industrial Infrastructure Limited
 Social Responsibility and
Community Development
• RIL has a long and strong tradition of
supporting the larger communities that it
connects with - from education, health,
drinking water, large-scale development of
employable skills, to assistance during
natural calamities such as earthquakes and
cyclones
• EDUCATION- Education continues to be one
of the major thrust areas of RIL's CSR
interventions. A network of 10 schools
caters to over 14,000 students spread
across geographies in India…………….
Contd..
• RIL's project for physically challenged children
at Surat, near the Hazira Manufacturing
Division, is fast emerging as a global model of
public-private partnership, supporting
physically challenged children's education with
a local NGO. A hostel for physically challenged
female students from the underprivileged
segment of the society has also been
constructed
• "Reliance Dhirubhai Ambani Protsaham"
programme continues to support poor and
brilliant students in pursuing higher studies
Contd..
• HEALTH CARE- RIL has developed
Community Medical Centres (CMCs) near
most of its manufacturing divisions. These
CMCs provide comprehensive health
services covering preventive, promotive
and curative health care to the
communities from neighbouring villages
• A unique joint initiative of RIL and the
National Association of Blind (NAB),
'Project Drishti' has undertaken over
8,000 free corneal graft surgeries for the
visually challenged from the
underprivileged segment of the society
Contd..
• COMMUNITY’S SAFETY- The Road Safety
System is the most advanced, cost effective
and easy to use tool for improving public
safety and reducing operating economic
costs. RIL has institutionalised road safety
training across its numerous manufacturing
divisions
• RURAL INFRASTRUCTURE DEVELOPMENT-
Reliance Rural Development Trust (RRDT) as
a Corporate NGO, continued its activities
under the Gokul Gram Yojana of the state
government of Gujarat. In FY 2009-10, RRDT
undertook development of 1,390 village
infrastructure facilities in 1,243 villages of 166
talukas across all 25 districts of the state of
Gujarat
Contd..
• OTHERS-
 Livelihood Support Programmes
Relief Operations
Wildlife and Animal Care
Heritage Conservation
Supporting Professional Organisations
and NGOs
Promoting Sports and Sportspersons
Dhirubhai Ambani Foundation
Dhirubhai Ambani International School
(DAIS)
 BP-Snapshot
• BP plc is a British-based global energy company
which is the third largest energy company and the
fourth largest company in the world. The name is
derived from the initials of its former legal
name, British Petroleum. A multinational oil
company ("oil major"), BP is the United Kingdom's
largest corporation, with its head office in 
St James's, City of Westminster,  London. BP
America's headquarters is in the One Westlake Park
 in the Energy Corridor area of Houston, Texas. The
company is among the largest private sector energy
corporations in the world and is one of the six "
super majors" (vertically integrated private sector 
oil exploration, natural gas, and petroleum 
product marketing companies). The company is
listed on the London Stock Exchange, the 
New York Stock Exchange, and is a constituent of
the FTSE 100 Index
 Company Description
• BP is one of the world's leading oil companies on the
basis of market capitalisation and proven reserves. Its
main businesses are Exploration and Production,
Refining and Marketing, and Chemicals. Exploration and
Production's activities include oil and natural gas
exploration and field development and production,
together with pipeline transportation, natural gas
processing and gas and power marketing. The activities
of Refining and Marketing include oil supply and trading
as well as refining and marketing. Chemicals activities
include petrochemicals manufacturing and marketing. In
addition, the Company has a solar energy business
which is one of the world's largest manufacturers of
photovoltaic modules and systems.
 CSR perspective
• ISSUES- There are very few aspects of how a
company behaves as a corporate citizen that do not
apply to a company of the size and nature of BP. The
most significant of these are the sheer environmental
impact - not simply of the extraction of oil and the
energy use of BP's own operation, but more
significantly of the impact on climate change of the
actual use of all the oil by BP's customers
• CRITICISM- BP's move towards positioning itself as a
sustainable energy company has been the proverbial
red rag to a bull for some. They point out that BP's
claim to be a global leader in producing the cleanest
burning fossil fuel (natural gas) is an incremental
improvement over oil at best, and a distraction from
getting away from fossil fuels at worst. BP, they
claim, has co-opted the language of the
environmentalists without the real commitment to
deliver
Contd..
• BP STANDS FOR BAD PETROLEUM- Despite among
largest producer of petroleum BP not paying proper
attention on Social concerns. In March 2005, corrosion of
BP’s pipes and equipment on the North Slope in Alaska
led to a spill of 270,000 gallons of oil, the largest spill
ever recorded in that fragile territory. Critics said BP
wasn’t spending enough money to prevent such spills
• BP GOES FROM BEYOND PETROLEUM TO BIG POLLUTER
IN CSR SETBACK- On 11 May 2010, top BP Plc executives
face U.S. lawmakers who will grill BP Plc, Transocean and
Halliburton on the drilling rig explosion and oil spill that
threatens a socially irresponsible environmental
catastrophe and a major CSR setback for BP off the coast
of Louisiana in the Gulf of Mexico. The colossal oil spill
threatens numerous tourist beaches, wildlife sanctuaries
and fishing grounds across four states in the United
States which has forced Mr. Barack Obama to question
offshore drilling activities
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