Last updated : July 10, 2026 9:54 am
Going forward, AI-enabled HR systems, predictive analytics, and personalised learning ecosystems will play a bigger role in shaping future workforce
In an exclusive interaction with Pravin Prashant, Executive Editor, Indian Chemical News, Manoj Kumar Sharma, President & CHRO, Aarti Industries Ltd. talks about increasing happiness index among employees, transforming Aarti from family owned to professionally managed company, employee engagement and performance culture at Aarti, Gallup Exceptional Workplace Award 2026, reducing attrition, Aarti's Engaging Leadership Model, utilising IT/technology for HR functions, and nurturing culture. Excerpts of the interview:
How is HR in a manufacturing company different from HR in a non-manufacturing company? What steps did you take to increase happiness index among employees in Aarti Industries through HR transformation?
At Aarti Industries Ltd. (AIL), HR in manufacturing is fundamentally different due to a highly integrated environment of people, processes, sustainability, and safety. In manufacturing, human resource management is more immersive than conventional practices because every decision directly affects safety, operations, productivity, and sustainability. In specialty chemicals, the workforce faces complex conditions, and engagement should be experienced daily through leadership, growth, recognition, trust, and purpose, not just policies or surveys.
Over the years, AIL's HR transformation has focused on building a high-performance, high-care culture centred on the People Leadership Model - Aarti Engaging Leader (AEL) which promotes “We listen and speak powerfully.” Our culture building workshops have been key in reinforcing listening and other concepts like alignment, collaboration, and operating in a natural state of action, making them part of daily work. Significant investment has been made in frontline capability and manager effectiveness, given their crucial impact on employee experience.
In 2025, AIL conducted 15,799 conversations (7,991 hours), mainly about well-being and development rather than performance. The chairman also hosts biannual sessions on the "Science of Unhappiness," exploring emotional frameworks, Karya(Work), and resilience to help leaders manage stress.
What differentiates AIL is that we do not view engagement as an HR initiative but as a business capability. Our people agenda is deeply linked to operational excellence, innovation, customer-centricity, safety, and sustainability. This philosophy has helped us create a workplace where employees feel respected, heard, empowered, and connected to a larger purpose, as reflected in our recognition as the first Indian chemical company to receive the Gallup Exceptional Workplace Award.
Chemical companies in India are mainly family-owned and Aarti is also one such company. How did you transform Aarti from a family-owned to a professionally managed company with a mix of family members and professionals in the last eight years as President & CHRO? Lessons learned in the process which will be helpful for Indian chemical companies?
Shift from a family-led to a professionally managed organisation isn't about replacing values but institutionalising them for growth and sustainability. At AIL, the promoter family showed clarity by enabling professional management while maintaining agility and long-term commitment. Our aim was to strengthen, not dilute, entrepreneurial spirit through governance, leadership depth, and merit-based pay, fostering a culture where professionals take ownership aligned with core values. The organisation's strategic reorientation has significantly enhanced its professional identity. The onboarding of experienced leaders, including the CEO, has boosted credibility, leadership maturity, and global readiness, positioning AIL as a progressive player in the chemical industry.
A key lesson from this transformation is that culture can't be outsourced; systems matter, but leadership intent and consistency are crucial. For Indian chemical companies aiming for global scale, success will depend on blending entrepreneurial speed with institutional strength. Talent, governance, innovation, sustainability, and culture will be key competitive factors beyond manufacturing capabilities alone.
Aarti Industries is among the first chemical company in India to receive the Gallup Exceptional Workplace Award 2026, thanks to employee engagement and performance culture. Would you talk about employee engagement and performance culture at Aarti, and how they differ from those at other companies?
Receiving the Gallup Exceptional Workplace Award 2026 is a proud milestone for all of us at Aarti Industries, as it validates the strength of our culture on a global stage. What makes this recognition particularly meaningful is that the Gallup evaluation is based on deep employee engagement outcomes linked with business performance. AIL transformed DEI into a core practice by implementing egalitarian measures like shared transportation, canteens, and a universal uniform policy to bridge the gap between corporate and shop floor staff. Supported by a transparent appraisal system and the inclusion of Associates in the "Voice" survey where they achieved 90th percentile scores (4.70-4.83); these initiatives successfully decreased Associate attrition by 8%.
Our 'The Aarti Way' framework, based on McKinsey 7S: Strategy, Structure, Systems, Style, Staff, Skills, and Shared Values that aligns our business goals with human capital. Central to this is our culture, the unseen structure that unites Aarti Industries and embeds core values, leadership styles, and norms. To operationalise this culture, we focus heavily on capability building and organic workplace connections: Aayam (leadership transformation): Our flagship program boosts leadership by mastering advanced listening through experiential learning, fostering safety and trust. Employee feedback highlights open-door communication; Cross-Functional Buddy Program: 700 pairs meet weekly to encourage peer networking and informal connections; Performance System: Shifted from rigid KPIs to a commitment-based ownership model; Aarti Leadership Conclave: Starts the fiscal year with employees sharing promises with leadership, which are turned into measurable KPIs; and Results: Driven by these promises, we achieved improved productivity, yield, and cost efficiency.
At AIL, employee feedback is a core leadership responsibility, made accountable through our Voice-to-Action framework. It ensures 100% action plan conversion at organisational, vertical, and manager levels with dedicated teams and commitments. Focus on culture and leadership has driven growth, moving AIL from the 42nd to the 84th percentile in employee engagement, with scores rising from 3.95 (FY20) to 4.60 (FY26). This improves engagement, agility, collaboration, and performance, creating a culture that is globally benchmarked but rooted in Indian values.
What is the percentage of attrition in chemical companies, and where does Aarti Industries stand with respect to attrition? What steps are you taking to reduce attrition?
Attrition in the chemical industry varies by skill, location, and market. Competition for technical talent is rising across manufacturing. At Aarti Industries, we focus on building long-term commitment through growth, purpose, learning, and leadership, rather than just reducing attrition. Our retention efforts include career development, internal mobility, succession planning, wellbeing, recognition, and fostering a safe, inclusive environment. We analyze attrition data to target interventions. We believe understanding why employees stay is key; while exit feedback helps, we prioritize factors that boost engagement and loyalty. This approach has strengthened workforce stability, attracted top talent, and enhanced our employer brand, making Aarti Industries a preferred workplace in the chemical sector.
Explain the Aarti Engaging Leadership Model and how this model has contributed to Aarti's success, and how you are creating leaders who will move to the leadership role in future?
Aarti's Engaging Leadership Model is based on the unique belief that people engage with leaders, not just the organisation. Co-created by founders, executive, and senior leadership teams with experienced coaches. Key Dimensions are: Living Aarti values: Integrating care, Integrity, and excellence into every decision; Natural state of action: Promoting proactive engagement over passivity; Alignment: Working as one team, eliminating silos; Powerful listening and speaking: Encouraging authentic communication; Being a cause: Encouraging leaders to view themselves as the "cause in the matter" and take full ownership of outcomes; and Co-creation: Instilling the belief that leadership is a shared responsibility to build a world-class company.
This model has helped AIL grow by boosting employee engagement, improving execution, and promoting alignment across businesses, enabling quicker decisions and stronger ownership throughout organization. The company has built a talent pipeline through succession planning, assessments, development centres, mentoring, cross-functional exposure, and experiential learning to cultivate global leaders committed to operational excellence and people-centricity. In today’s fast-changing world, investing in leadership gives a competitive edge. At AIL, leadership development is a strategic priority, not just an HR process.
The company has been using IT/technology in its manufacturing operations. Are you also utilising IT/Technology for HR functions, and how has it benefited Aarti Industries in terms of operational efficiency, productivity, and process excellence?
Technology is transforming HR from transactional to strategic at Aarti Industries, where digital platforms are used across recruitment, onboarding, learning, performance, talent reviews, analytics, and communication. One of the biggest advantages of technology adoption has been improved speed, transparency, and decision quality. Digitalisation has enabled us to streamline processes, reduce reliance on manual processes, improve compliance, and create better employee experiences across locations. We are increasingly using analytics for workforce planning, talent insights, engagement, and capability decisions, enabling HR to operate more precisely and align with business. In manufacturing, scalability and consistency are vital. Technology helps standardise yet keep processes agile, allowing leaders to focus on strategy and employee growth. Going forward, AI-enabled HR systems, predictive analytics, and personalised learning ecosystems will play a bigger role in shaping future workforce.
What is AIL’s culture, and how are you nurturing it over the years as Chief Gardening Officer or Chief Human Resource Officer to make it performance-oriented?
Organisational culture is like nurturing a child; it requires constant attention and is shaped by every interaction. At Aarti Industries, our culture is built on patience, accountability, and purpose, ensuring scale leads to excellence rather than complexity. As CHRO, I shape human energy so that leadership, safety, and well-being grow in balance. We have embedded empowerment and ownership into our fabric, driving performance through shared purpose rather than hierarchy. Winning the Gallup Exceptional Workplace Award 2026 validates our journey, proving Indian chemical firms can achieve world-class engagement. Culture is built daily through actions and decisions, ensuring that values and high performance sustainably reinforce each other.