The Chemical industry has been the backbone of the industrial and agricultural development in India. Companies in petrochemical, refining and pharmaceutical are key stakeholders in this industry. This industry contributes over $100 billion annually to Indian economy and employees millions of people.

The companies in this industry typically have one or more plants and factories. They employ contract labour, deal with hazardous chemicals and working conditions, release effluents in the environment leading to licenses, registrations, returns, registers etc. As a result, the compliance implications are huge and need to be managed meticulously.

Our Client

The client company is one of the leading colour and effect pigment manufacturers. They are a multinational company manufacturing plants in India and sales offices in various parts of the world. The company has over 2,000 employees including contractors. They work with over 170 channel partners globally. It has plans to expand in China and South Africa in the near term as well. The client is recognized for its CSR and Safety efforts on various international forums.

The client is headquartered in Mumbai with 2 manufacturing plants in Maharashtra. It deals with Chemicals, Pharma, Veterinary, Polymer input and environ-biotech division.

Our client had several challenges, such as meeting strict safety and compliance requirements, increased regulations related EHS, and meeting the safety, health and welfare of workers provisions specified in the factories act, 1948. The company faced with several issues due to such challenges, such as:

  • Manual tracking of compliances across all its plant and office locations
  • Late Filings due to human errors leading to financial penalties
  • Lack of clarity on compliance obligations under Factory’s act and EHS categories
  • Multiple instances of missed display compliances
  • Manual Search for applicable Legal Updates
  • Frequent statutory notices
  • Instances of lost compliance documents and working files

Our client needed a compliance automation solution that could help them address day to day tracking of compliances for their entire organisation. They were looking for a web and mobile based SAAS solution to go live within 4-5 weeks. They needed internal compliance tracking capabilities as well to monitor non-statutory obligations as well.


Avantis Engagement

Avantis engaged with the client company in 2017, and conducted a thorough analysis of business activities, entities and locations. A team of 2 subject matter experts visited their headquarters and plant locations to understand the operational process and workings of the company.

Phase 1 - Business Discovery

This phase of the project focused on understanding the client’s business and after a through interactions with the departmental heads and CXO’S the following information were generated:

  • Business Set up (Group, Entities, Locations, clients, number and nature of establishments, Industry, export)
  • Products (Type of Products manufactured)
  • Equipment & Machines
  • Internal compliances

Phase 2 - Compliance Applicability Assessment

Avantis identified several hoists, lifts, weighing equipment, cranes, vessels, hazardous effluent, boilers, pressure vessels, gas cylinders, solid waste effluents among others. These equipment required proper safety assurance and compliance requirements thereby leading to applicability of different Acts and Compliances.

Our Client was a private limited company and a number of secretarial events and other non secretarial events were also applicable. They had 2 plants in maharashtra, hence Factories Act and various other Acts under EHS also became applicable.

The team identified over 155 applicable Acts with over 6,080 applicable compliances including time based and on-going compliances. An additional 550 event-based compliances were also found applicable.

Over a hundred licenses, registrations, permissions, consent to operate orders, approvals were identified. A gap assessment was done and it uncovered several critical gaps between statutory requirement and actual requirements which were to be met by the company.

Phase 3- Implementation

This phase is the most critical phase of the project. During this phase, Avantis assigned a 3 member team of subject matter experts to work with the client’s project team. This phase lasted about 3 weeks during which the following items were accomplished:

  • Map the Client Organisation (Group, Entities, Sub-Entities, Locations, Departments)
  • Review of identified applicable Acts and Compliances with respective department heads
  • Discussion on identified gaps with department heads and compliance head
  • Mapping of Compliances to specific users along with their roles
  • Hands on training sessions with user groups based on their locations and roles
  • Activation of system for a predetermined go-live date

Avantis team downloaded the mobile Apps from App store and Play store on the user’s devices. A total of 50 users were identified across the organisation mapped to performer, reviewer, approver and management roles.


In Conclusion

Chemical Industry in India is key to job creation and GDP growth. However, it is labour intensive, capital intensive and compliance intensive leading to a challenging business environment.

AVACOM is an excellent product that helps companies in this industry scale with ease. The product helps them bring in efficiencies, productivity gains and significantly reduce the costs arising out of penalties and delays. Avantis can help clients migrate to predictable, process oriented and digital compliance environment.

Project Highlights