Sustainability Report 2013-14 04 Message from the CMD | 05 Group Profile | 11 Corporate Governance | 13 Management Approach
15 Sustainability and Us | 20 Cotton | 32 People | 42 Money | 50 Energy | 58 Water
64 Chemicals | 72 Product Responsibility | 75 Reporting Scope | 76 GRI Index HIGHLIGHTS
MESSAGE FROM THE CHAIRMAN & MANAGING DIRECTOR N O T
T 80,500 9,482 60,000 acres under farmers involved farm workers got employment O
C BCI & Organic Cultivation in BCI & Organic Farming from Better Cotton Initiative
Dear Stakeholder,
I am pleased to present 'Fundamentally Right', our maiden Sustainability Report.
Sustainable development and corporate Keeping pace with this success has The initiatives that give us the responsibility have been integral to the been sensitivity towards societal and maximum satisfaction are those where e
l 1,300 Sanjay Nagar slum 300 way Arvind has done business since its environmental needs. We have a long we blend environmental good with p students getting development project individuals trained for inception in 1931. Our diverse legacy of commitment to social social empowerment, like our o benefited every year included in the list of skill upgradation in e businesses are unified by a common development. sustainable cultivation project at Akola.
P from Gyanda Programme '100 best practices' by UNCHS collaboration with nift vision – To enable people to experience a better quality of life by providing, Our interventions in the fields of This report covers our triple bottom line enriching and inspiring lifestyle education, improving urban performance, shares our bespoke input solutions. infrastructure, upgrading slums and management approach to sustainability, providing vocational trainings to the plus details the opportunities and Arvind has achieved multiple successes youth, have enriched many lives. challenges we envisage.
y on the business front. We have e 63% 43,124.7 97.2% emerged as one of the largest denim & We are acutely aware that as one of While measurement will lead to better n growth in economic value increase In wovens manufacturers in the world and India's leading textile manufacturers, management, I see the report as a o profit before Tax distributed in the total expenditure (EXCLUDING EXCEPTIONAL INCOME) we shoulder a deep responsibility valuable tool that will helps us deepen M inr million on R&D In fy 2013-14 have won global recognitions for the manufacturing of khaki and knitted towards the environment which our engagement with our myriad fabrics. Our expertise spans the entire provides us three of our key inputs. stakeholders. apparel value chain - right from We require water at our wet processing cultivation of cotton to its culmination units, energy to keep our machines and as an exhilarating and satisfying boilers running and land to cultivate the shopping experience for all our cotton that makes our fabrics world-
y customers. Today we are a preferred class. Over the years, we have KW g 680 2 undertaken several green initiatives in r savings in Natural saved by less fuel consumption partner and a one-stop solution e order to minimise and/or mitigate our Gas consumption through switching to high capacity by using humidity provider for leading global and n environmental impact. Many of them E Energy-efficient Stenter air compressors sensor in tumble dryer domestic apparel brands. are detailed in the report. r
e 19.5 t 3 Sanjay S. Lalbhai
a Million M wastewater liquid discharge recycled water usage at at our Santej unit our Bengaluru unit Chairman & Managing Director W treated in FY 2014-15 s
l WE STRONGLY BELIEVE THAT SUCCESS AND a c i SENSITIVITY GO HAND-IN-HAND AND BOTH ARE VITAL m Chemicals Hazard Arvind Denim Lab accredited e Tracking Sheet created for by NABL, Levi's & GAP etc. Salt-recovery by MVRE and h TO CREATE A POSITIVE IMPACT ON LIFESTYLES. C entire chemical supply chain for physical & chemical testing Chillers for re-use in Dyeing
03 04 Group Profile
V I S I O N Established in the 1930s to cater to the immediate and pressing need of quality fabrics, Arvind is, today, one of the leading manufacturers of textiles in India. ONE OF THE In a journey spanning over 80 years, Arvind has remained relevant and veritably LARGEST DENIM value-driven. MANUFACTURERS In 1931, we were one of the few companies to develop spinning and weaving facilities. IN THE WORLD. In mid-1980s, when several large composite mills in the country were in crisis due to the introduction of power looms, we embarked on a new business strategy - 'Reno vision'. This strategy focused on international markets and high-quality premium fabrics.
A growing presence in the domain of readymade garments has further put Arvind on ARVIND LIMITED IS the top as a one-stop solution provider for leading global and domestic apparel brands. In addition to manufacturing fabric, we have diversified business interests comprising INDIA'S FIRST garments, advanced materials, chemicals & dyes, retail, engineering, real estate, COMPANY IN THE sustainable agriculture and telecom. TEXTILE SECTOR TO PUBLISH A SUSTAINABILITY REPORT. At Arvind, it is firmly believed that a successful company must play an active role in the conservation and development of the ecosystem and the society that supports it. We have been at the forefront of varied social and environmental initiatives.
PHILOSOPHY STRATEGIC GROWTH VISION
We Believe In people and their unlimited TO BE THE LARGEST potential; in content and in focus on problem solving; in teams for INTEGRATED TEXTILES effective performance and in the AND APPAREL PLAYER power of intellect. IN INDIA WITH We Endeavour LEADERSHIP POSITION This underlying theme of To select, train and coach people to enhancing lifestyle runs across obtain higher responsibilities; to IN SEVERAL the broad spectrum of nurture talent and to build leaders for all business activities at Arvind. the corporations of tomorrow; to reward, GLOBAL MARKETS celebrate and activate all intellectual business contributions. THREE PILLARS OF ARVIND'S STRATEGIC GROWTH VISION
We Dream Mature Established Future Businesses Growth Businesses Bets Of excellence in all endeavours; of mutual benefit and prosperity; • Denim Fabric • Knits • Technical Textiles of making the world a better • Woven • Garmenting • Custom Clothing place to live in. • Brands • Retail • e-commerce
05 06 KEY MILESTONES
2014 2013 2010 Buys 49% stake in Signs agreement for licenses of Hanes 2012 2011 Launched Calvin Klein in India. Enters long-term licensing Acquired India Set up joint venture The Arvind Store and Set up joint venture (JV) agreement with Iconix Lifestyle India operations for marketing its first major with Goodhill Corporation of Next Tommy Hilfiger brand Real Estate project of Japan for launch of formal suits 2009
2000 2003 2006 2007 2008 Garments Started Arvind Mills was rebranded Exports Division 2004 Organic farming as Arvind Ltd. ‘Lifestyle Apparels’ Arvind Brands with Fairtrade Arvind expands its presence in established Limited made Cotton Project the brands and retail segment 1999 subsidiary company by establishing MegaMart – of Arvind One of India’s largest value retail chains
Arvind enters the export market for 1993 Denims with an 1987 1995 export oriented unit 1992 1990 1989 named Arvind Exports Increased the Nagri Mills Started the 1988 1998 1997 1996 production of denim acquired and Telecom Division Established Set up Arvind Cotspin Ltd., by setting up the renamed as with the Santej Unit - an export oriented unit Arvind International Arvind Intex Ltd. production of shirting at Kolhapur, Maharashtra plant located and Saraspur Mills RAXs at Pune TS facility at Khatraj renamed as EXPOR 1994 Arvind Polycot Ltd.
Laid the foundation of Arvind Mills raising a share capital of INR 25.25 lac, Shri Kasturbhai Lalbhai, Shri Chimanbhai Lalbhai Diversification into and Shri Narottambhai Lalbhai starch production* 1980 1939 1985 1986 Initiated production Sanjay Lalbhai led the of textile-related ‘Reno-vision’ strategy, 1952 chemicals and dyestuff* implemented the first Denim plant and issued debentures 1931 * These companies are no longer part of Arvind Ltd. 07 08 OUR BUSINESS PROFILE CHARTERS AND COALITIONS
Like a wardrobe that comprises various styles and a fabric that consist of Our commitment to embracing the globally best sustainability practices is demonstrated by the fact that we are signatories to several myriad hues, our diversified portfolio stretches a wide spectrum of consumer international charters and coalitions. preferences and customer requirements. Our key business divisions are:
DENIM WOVEN FABRICS
Sustainable Apparel Coalition Better Cotton Initiative Social Accountability International SA8000 Standard We are a founding member of The The Better Cotton Initiative (BCI) is a Sustainable Apparel Coalition (SAC), a non-profit organisation that has Social Accountability International (SAI) global industry body comprising developed the global standards for is an international, non-governmental, brands, retailers, manufacturers, Better Cotton, and brings together the multi-stakeholder organisation government, and non-governmental complex cotton supply chain, from dedicated to improving workplaces and KNIT FABRICS GARMENT EXPORTS organisations and academic experts, farmers to retailers. communities by developing and representing more than a third of the implementing socially responsible We have collaborated extensively with global apparel and footwear market. standards. SA8000 standard for decent BCI in our quest to bring environmental AWARDS & work is a tool for implementing One of the key focus areas of the SAC and social sustainability in the international labour standards and is is the Higg Index which helps gauge production and sourcing of our most RECOGNITIONS being used in over 3000 factories, the environmental and social impact valued raw material - Cotton. across 66 countries and 65 industrial We have received numerous awards and of the apparel industry and drives sectors. recognitions from various industry improvement. Details of our collaboration with BCI are presented in the Cotton section of bodies and government agencies over In line with our commitment to human We have proactively carried out this Report. the years. Some of the key awards won rights, we have adopted Social assessments of our Denim (Naroda), by us in the recent past are listed below: Accountability Management System as ARVIND BRANDS THE ARVIND STORE Knits & Woven (Santej) and Garments Global Reporting Initiative per the SA8000: 2008 Standard, and (Bengaluru – Mysore Road) facilities have been externally audited by Bureau Ministry of Textile with respect to the Higg Index 2.0. The Global Reporting Initiative (GRI) Veritas. The scope of our operations for is an international, not-for-profit Largest Producer this certification includes manufacture organisation with a multi-stakeholder and Exporter of Global Organic Textile Standard and dispatch of woven fabrics, knit structure that has pioneered and Cotton Fabrics fabrics and industrial fabrics. in 2013 The Global Organic Textile Standard developed a comprehensive (GOTS) International Working Group Sustainability Reporting Framework International Organization for that is widely used by businesses and comprises four reputed member Standardization – ISO 9001, The Cotton Textiles Export Promotion organisations − OTA (USA), IVN organizations around the world. Council of India (TEXPROCIL) ISO 14001 ADVANCED MATERIALS MEGAMART RETAIL (Germany), Soil Association (UK) and Various Gold Trophies This Report presents our first attempt at JOCA (Japan), which work with The International Organization for presenting sustainability disclosures, for Highest Global Exports international stakeholder organisations Standardization (ISO) is the world's using the GRI G3.1 Sustainability and Outstanding and experts in the areas of organic largest developer of voluntary Reporting Guidelines (2011). It conveys Performance as an EOU – farming as well as environmentally and International Standards. our understanding of and approach to won every year from socially responsible textile farming. 1993-94 to 2012-13 sustainable development, key highlights Our operations are ISO 9001: 2008 We have received the GOTS Standard in the relevant areas and performance (Quality Management Systems) and 3.0 certification for our fabrics, fibres measures on indicators material to us. ISO 14001: 2004 (Environmental Export Credit Guarantee and yarns products. Our manufacturing As we continue to integrate Management Systems) certified. Corporation of India (ECGC) activities covered within the scope of sustainability within our business in the ECGC – D&B Indian this certification includes Yarn Dyeing, future, we remain committed to publicly Exporter‘s Excellence Dyeing, Exporting, Finishing, Knitting, disclosing our sustainability performance Award in 2012 Printing, Sizing, Spinning, Storing, through publishing such reports on a Trading, Weaving, and Wet Processing. periodic basis.
09 10 CORPORATE GOVERNANCE Our corporate governance philosophy is BOARD OF DIRECTORS AND BOARD COMMITTEES based on the following principles: The Board is at the core of our corporate governance practice and oversees how the • Satisfy the spirit of the law and Management serves and protects the long-term interests of all stakeholders. We not just the letter of the law. believe that an active, well-informed and independent Board is necessary to ensure Corporate governance standards the highest standards of corporate governance. should go beyond the law. The Board has nine Directors, comprising Chairman and Managing Director, Director • Be transparent and maintain a high degree of disclosure levels. and Chief Financial Officer, 2 Executive Directors and 5 Independent, Non-Executive When in doubt, disclose. Directors. The Non-Executive Directors are leading professionals from varied fields who not only bring in vast experience and independent judgment to the Board’s discussions • Make a clear distinction between and deliberations, but also enable the separation of ownership and control. personal conveniences and corporate resources. As of 31st March 2014, four out of the total nine Directors were ‘Executive’ and the rest were ‘Non-Executive’ and ‘Independent’. The Board comprised one female Director. • Communicate externally, in a One Director was below the age of 30 years, one within the range of 30-50 years and truthful manner, about how the the rest were above 50 years of age. The appointment of the Board members is based Company is run internally. on their credentials and there is no discrimination due to caste, creed, minority • Have a simple and transparent community or other indicators of diversity. corporate structure driven solely by business needs. The following is the composition of the Board as on 31st March, 2014:
• The Management is the trustee Name of Director Executive/Non-executive/Independent of the shareholders' capital and A STRONG GOVERNANCE STANDARD BOLSTERS not the owner. Mr. Sanjay S. Lalbhai Chairman & Managing Director (CMD) CONFIDENCE AND HENCE, PROVIDES PREFERENTIAL Mr. Punit S. Lalbhai Executive Director EVERY PRINCIPLE Mr. Kulin S. Lalbhai Executive Director ACCESS TO RESOURCES AT A COMPETITIVE COST. IT IS ALSO NEEDS A PROMULGATOR, Mr. Jayesh K. Shah Executive Director & Chief Financial Officer INSTRUMENTAL IN SHAPING THE SOCIAL AND ENVIRONMENTAL A PROMOTER AND Mr. Sudhir Mehta* Non-executive Independent Director OUTLOOK OF AN ORGANISATION. A PROTECTOR. Dr. Bakul Dholakia Non-executive Independent Director FOR ARVIND, THESE ROLES ARE ABLY Mr. Munesh Khanna* Non-executive Independent Director Any sustained endeavour to safeguard continuity of inputs, requires regular inputs; GOVERNANCE PERFORMED BY OUR Ms. Renuka Ramnath Non-executive Independent Director not just from an expert and experienced management team, but also from the BOARD OF DIRECTORS. Mr. Prabhakar Dalal* Nominee Director of EXIM Bank of India processes and rules that govern the day-to-day functioning of the organisation. This PHILOSOPHY set of rules that defines the relationship between the company's management and Corporate governance at Arvind is a * Mr. Munesh Khanna, a Non-Executive, Independent Director ceased to be a director with effect from 15th April, 2014, Mr. Sudhir Mehta, a Non-Executive, Independent Director ceased to be a its stakeholders and ensures fairness, transparency and protection of interests of all value-based framework to manage our stakeholders is essentially, Corporate Governance. director with effect from 30th July, 2014 and Mr. Prabhakar Dalal, a Nominee Director of EXIM Bank affairs in a fair and transparent manner. of India ceased to be a director with effect from 10th December, 2014. As a responsible corporate, we use this Over the last eight decades, we have espoused and practised the tenets of good framework to maintain accountability in corporate governance. We have always been accountable, fair and transparent all our activities and employ democratic The annual calendar of Board and Committee Meetings is agreed upon at the beginning of each year. Meetings are governed by a about our operations to our shareholders, as well as to the society. and open processes. We have evolved structured agenda and a Board member may bring up any matter for consideration of the meeting in consultation with the Chairman. guidelines and best practices over the Agenda papers are generally circulated to the Board members at least 4-5 working days in advance. Detailed presentations are made We have garnered the trust of our investors by employing funds judiciously, yet years to ensure timely and accurate at the meetings on all major issues to enable the Board to take informed decisions. competitively, and generating a steady stream of returns. We have reiterated the disclosure of information regarding our credibility and capability of our leadership time and again, by looking beyond the financials, performance, leadership and For more information about the Board, the Board Committees, and the various Codes governing its functioning, please refer to our bend and acting before the herd. governance of the Company. 83rd Annual Report 2013-14. http://www.arvind.com/pdf/annaul_finacial_reporting/2014/AnnualReportfor201314withNotice.pdf
11 12 Management Approach
ECONOMIC ENVIRONMENT TALENT
We believe that our economic Respect for environment is intrinsic in all our business activities and we constantly Employees are one of our most important stakeholders and key to our success and performance is fundamental to the seek opportunities to reduce and/or mitigate our environmental impacts. sustainability. At Arvind, we are committed to providing our employees with a sustainability of the organisation as nurturing environment of well-being, safety and continual learning. well as that of our stakeholders. Our As one of the founding members of the Sustainable Apparel Coalition, we supported role in the Indian economy is especially the development of the Higg Index and actively advocate its adoption among We comply and in most cases surpass the minimum legal requirements on issues significant given the fact that India is member companies. such as health and safety, protection of human rights, absence of forced/child labour the world's second largest producer of and elimination of discrimination. All our contracts and agreements include clauses textiles and garments, and we also The Higg Index is a tool for the apparel and footwear industry to pertaining to human rights as required by the law of the land. have an influential presence in the assess sustainability throughout a product's entire life cycle, from The male to female ratio in our organisation has shown improvement and we have global market on account of our materials to end-of-life. It was developed by the Sustainable Apparel undertaken focussed efforts to make it even better. We have in place clear policies exports business. Coalition, a non-profit organisation founded by a group of fashion (Vishaka Guidelines) on harassment and committees in four locations to implement companies, the United States government Environmental Protection these policies. Each of this committee has a female representative from an external Creation of mutual benefits and Agency, and other non-profit entities. prosperity is a central tenet of our NGO as well. business philosophy, and as a listed We sieve all our business decisions through the prism of environment sustainability No incidents of gender, human rights or any other discrimination company, it is our endeavour to and continuously invest in green technologies with an aim to set new benchmarks in generate sustained economic value textile manufacturing in India. have been reported in FY 2013-14. for all our shareholders. We have a holistic approach to sustainability. We believe in judiciously managing our Employee engagement is conducted round the year through institutionalised We are also mindful of our responsibility inputs, optimising our processes and meticulously designing our products so that the mechanisms such as an employee portal, periodic events and activities. On the anvil as an employer and buyer of various need for tailpipe management is eliminated or minimal. are town halls and a rewards and recognition programme. A rewards and recognition goods and services – through which we programme is already in place for employees of Arvind Stores. create significant direct and indirect We maintain full compliance with all applicable regulatory requirements and have socio-economic impacts on the developed internal systems to monitor our performance on key environmental At Arvind, we strive to ensure a corruption-free work environment livelihoods of our local communities. sustainability performance indicators. OUR PRODUCTS ARE and follow all the laws of the land in this regard. OUR AMBASSADORS WHO REACH OUT TO SOCIAL In accordance with SEBI regulations, our Board has adopted a Code for Prevention of Insider Trading (CPIT), a Code of Corporate Disclosures (CCD) and Code of Conduct for MILLIONS ACROSS We believe that only growth which is inclusive, can be sustainable in the long run. In line with this philosophy, we have tightly Directors and Senior Management Personnel. No incidents of corruption were THE WORLD. THEIR aligned the interests of farmers with the supply of our key raw material – cotton. With an aim to make them self-sustainable, we reported during the reporting period. QUALITY, ENVIRONMENTAL empower them with agricultural know-how, hand-hold them during the execution, facilitate formation of SHGs and provide them AND SOCIAL IMPACTS resources if and when needed. PRODUCT ARE PARAMOUNT TO US Our interventions have resulted in the advent of prosperity among economically distressed farmers. As a AND WE CONSTANTLY positive spin-off, it has also led to a more robust and reliable source of cotton for Arvind. We believe our product responsibility begins from the farm and extends to the UNDERTAKE LARGE 'end-of-life' of our product. Thus we have established sustainable contract farming AND SMALL INITIATIVES We also actively engage with local communities, address their needs and work towards improving their quality of life. Our relationships with scores of farmers. We also measure and manage our performance community initiatives are conceived and efficiently executed by the Strategic Help Alliance for Relief to Distressed Areas (SHARDA) in accordance with the Higg Index. TO ENHANCE EACH OF Trust. The geographical focus of the Trust till date was on Gujarat which houses our headquarters and two of our largest THESE PARAMETERS. manufacturing facilities. We aim to expand this scope in the near future.
13 14 sustainability and us
STAKEHOLDER ENGAGEMENT
STAKEHOLDER IDENTIFICATION The key attributes used to MODES OF ENGAGEMENT We recognise the fact that as a large business we have several stakeholder groups identify our stakeholder each with distinct priorities and diverse interests. We therefore developed a method universe include dependency, Post identification of key internal and external stakeholders, we re-examined our existing engagement platforms, for structured identification of stakeholder groups, understanding their concerns and responsibility, tension, influence reinforced, refined and reconstituted them to gain a better understanding of stakeholder concerns, collect timely feedback incorporating their views in our sustainability strategy. This method was developed and diverse perspectives. and communicate our Company's policies & expectations. as part of a Sustainability Roadmap study in 2013 by Ernst & Young LLP. Stakeholder Category Objective Engagement Methodologies
CUSTOMERS Develop a sustained relationship. • Periodic one-to-one interactions with key customers. KEY STAKEHOLDERS Anticipate short - and long-term expectations. • Our design and technology teams meet customer groups at regular intervals throughout the year.
CUSTOMERS INVESTORS Understand concerns and expectations, create • Regular dissemination of financial higher shared value. performance through newspapers and published accounts.
• In-depth interactions in analyst INVESTORS GOVT. BODIES meets and investor presentations.
EMPLOYEES & WORKERS Understand their career ambitions, job • Structured interactive appraisals, satisfaction parameters, support career growth, career path guidance, training training and development. programs, employee rewards and recognition (Arvind Stores), Share organisation's vision, short-term and long development programmes. term goals, workplace needs and expectations. MEDIA SUPPLIERS LOCAL COMMUNITY Maintain cordial relation with • SHARDA Trust's activities local communities. • Interactions by IR department.
MEDIA Communicate key developments, milestone • Media interaction events, events, growth plans etc. press conferences etc., media announcements of quarterly reports and major tie-ups. DISTRIBUTORS EMPLOYEES / WORKERS GOVERNMENT AGENCIES Understand compliance and applicable • Personal meetings. Submission of regulations. Brief them on steps taken and discuss relevant compliance documents, opportunities to collaborate on pressing issues. industry forums etc. LOCAL COMMUNITY & NGOS
SUPPLIERS Sharing of mutual expectations and needs, • Periodic interactions between especially with regard to quality, cost and timely Arvind's buying and sourcing teams. delivery, growth plans and sharing of best Training programmes, quality workshops. 15 practices. 16 MATERIALITY
The paradigms of sustainable business are changing. The value a company creates is not just limited to the products and services it Material issues are those that have the potential to significantly affect the sustainability of our business. As part of the Sustainability offers but is also equally dependent on the way it handles material issues. Roadmap study undertaken in the reporting period, a structured approach was adopted to identify and prioritise the issues.
SHORTLISTING OF PROBABLE MATERIAL ISSUES
Identification of Material Issues Development of Methodology Development of the Materiality Map for Arvind to Evaluate the Impact of The material issues identified by the Based on this analysis, a materiality map was developed, in which the material issues were plotted against an X- Material Issues on Business Sustainability Accounting Standards BoardTM axis of impact on business and Y-axis represented issues important to stakeholders. The material issues on the TM top right corner of the materiality map represent the highest significance to Arvind. (SASB ) were employed for the materiality The impact of material issues on business is 7 determination for Arvind. SASB is a non-profit qualitatively assessed in terms of impact of organisation that develops and provides material issues on brand value, growth and standards for use by publicly-listed corporations profitability of the firm leading to an overall MATERIALITY MAP OF ARVIND LIMITED in the U.S. in disclosing material sustainability ranking of issues based on the potential 5.0 issues for the investor and public benefit. SASB business impact. has identified 43 sustainability material issues through extensive research and stakeholder Regulatory & Legal Challenges consultation. These issues broadly fall under the Water Use & Management Assessment of Concern of aspects of environmental capital, social capital, Climate Change Risks Communication & Engagement Material Issues to Stakeholders Energy Management human capital, business model & innovation, Policies, Standards, 4.0 Code of Conduct and leadership & governance. Business Ethics & GHG Emissions & Air Pollution While the influence levels of stakeholders Competitive Behaviour Long term viability of Core Business remained constant across the material Community Development Supply Chain Engagement and Child & Forced Labour Labour Relations & Transparency issues, the interest level was found to vary Product Lifecycle Use Impact Union Practices Environmental Accidents Employee Health, Safety & wellness depending on the type of issue. The final & Remediation Product Quality & Safety Identification of Stakeholders Board Structure Fuel Management Customer & Independence Recruitment & Retention Biodiversity & Transportation Satisfaction
scores of importance of material issues to AKEHOLDER
T Impacts As described above, the identification of stakeholder were estimated based on the Waste Management & Effluents O S 3.0 Customer Privacy Product Pricing stakeholders was done on the basis of attributes Research, adopted framework. Compensation & Benefits Supply Chain Standards Development & of dependency, responsibility, tension, influence Customer Health & Safety & Selection Innovation ANCE T Diversity & Equal Opportunity Shareholder Engagement Raw Material Demand and diverse perspectives. T Disclosure & Labeling New markets Executive Compensation Accounting for IMPOR Training & Development Externalities Impact from Facilities Assessment of Impact of Marketing & Ethical Advertising Product Societal Value Development of Methodology Material Issues to Business 2.0 Access to Services to Evaluate the Importance of Lobbying & Political Material Issues to Stakeholders The detailed assessment of impact of Contributions material issue to business led to the short Based on a weighted average of the influence listing of 17 among the 43 identified Packaging and interest levels of stakeholders, the material issues that have the highest importance of material issues to stakeholders impact on Arvind's business. 1.0 was assessed. 0.0 1.0 2.0 3.0 4.0 5.0 IMPACT ON BUSINESS
17 18 On deeper analysis of our material issues, it was evident that a large basket of them were related to 'Input Management'. To build an immediate business connect across the organisation we grouped them under six input silos.
Cotton energy People Sustainable Sourcing Energy Management Labour Relations and Union Practices As a textile major, sourcing of cotton is Energy efficient technologies deployed We have clearly spelt out guidelines to crucial to our operations. Not just in across our units and offices help us to ensure that we engage in fair labour terms of quantity and supply, but also keep a check on our energy practices. This includes payment of in terms of sustainability. We harness consumptions. minimum wages, protection of human methodologies and projects like organic rights, prevention of child/forced labour farming and Better Cotton Initiative to Greenhouse Gas (GHG) Emissions & and encouragement of health and safety Air Pollution ensure that cotton farmers, the best practices. communities and mother Earth reap the We continuously strive to reduce the benefits of our fabrics. GHG footprint of our business by adopting green manufacturing Money Supply Chain Engagement technology and reducing our energy Long-term Viability of Core Business and Transparency consumptions. We try to be fundamentally right in our We meet our suppliers periodically to approach to run our business. This ensure transparency and clear ensures that our core business interests communication in the supply chain. remain protected and are sustainable.
water others Water Use and Management Communication and Engagement We have identified and implemented We take care of this material issue through continuous communication and ways to reused and recycle water and to engagement with our key stakeholders like customers, investors, employees etc. minimise our water footprint. Our water Details of this engagement are elaborated in the stakeholder engagement section. conservation and recycling initiatives have helped us to lower our dependence Policies, Standards and Code of Conduct on water resources in our key units. We have policies, standards and code of conduct for our business processes, engagements with customers & stakeholders as well as product manufacturing and chemicals services. Please refer to the corporate governance section in this report for more details. We use the right chemicals judiciously Customer Satisfaction and responsibly. It is our constant effort We try to anticipate short and long-term expectations of our customers. Our design and to find substitutes that have a smaller technology teams meet the customer groups at regular interval throughout the year. environmental impact. We treat not only the effluents but also extract Regulatory and Legal Challenges useful salts from them; such that they All our operations and business processes are as per the legal and regulatory processes can be reused. approved by the Government under the Companies Act 2013 in India.
At Arvind, responsibility towards the environment and society has always been intrinsic in the way we do business. However, as we seek to adopt newer sustainability practices in our operations and decision-making, while responding to growing customer inquiries on our sustainability performance, it is important for us to assess our current status and set future targets.
The independent study conducted by Ernst & Young LLP during the reporting period described above also included a current-state assessment of our sustainability practices, identification of industry best practices, recommendations as well as operational interventions and suggested enablers for roadmap formation. As we move forward on our sustainability journey, our goal is to improve our Higg Index scores and strengthen our sustainability practices.
19 20 80,500 9,482 farmers involved acres under We are one of the largest BCI & Organic Cultivation in BCI & Organic Farming manufacturers of textiles and garments in India and cotton is a key raw material for us. India is the second largest producer of cotton in the world, but that doesn't mean we can take the availability of cotton at competitive rates, for granted. The call of the hour is to ensure uninterrupted supply in the short-term Growing global population and rising plus institutionalise an eco-system incomes in developing countries are which nurtures economic health of fuelling an unprecedented growth in cotton farmers, enhances farm yield 60,000 demand for garments. With supply of and provides Arvind preferential access farm workers GOTS certification land not growing at the same rate, to support long-term growth plans. got employment from for organic cotton and we understand that availability of Better Cotton Initiative all natural fabrics affordable cotton, of the requisite Along with sustainable, quality in required quantity, could be a possible growth bottleneck. ethical and responsible sourcing, we also focus on optimising consumption.
CONSUMPTION, DEMAND AND SUPPLY OF COTTON 27% We track the consumption of cotton by weight at our Naroda and Santej plants. less water consumption
were produced at Better Cotton were produced at 29% enhanced soil Total cotton consumption in FY 2013-14 Initiative (BCI) project farms organic cotton farms more yield for health by reducing This constitutes nearly 15% of our cotton consumption. better cotton farmers the use of pesticides
Buoyed by the increased consumption of a burgeoning Indian middle-class and rise in discretionary spend, the Indian textile industry is projected to grow at a CAGR of 9-10% over the next 10 years. As one of the largest producers and exporters of textiles, we are poised to grow at a commensurable pace and are hence looking to fortify our supply lines.
While it is imperative for us to maintain a robust supply chain for uninterrupted production, we are equally vigilant that this supply doesn't come at the cost of the environment and the farming community.
21 22 FARM DYNAMICS & FARMER DILEMMAS Cotton farming in India faces all three challenges – Economic, Social and Environmental
Our success is directly linked to that of the farmer. Thus like a true partner, we work hand-in-hand with them and play a Cotton is considered a cash crop in India. The lure of lucrative returns pivotal role in every phase. pushes many farmers to take on debts to pursue cotton farming – a move that is risky considering that most farms are rainfed and monsoons are RESPONSIBLE SOURCING unpredictable. In the past, successive We partner with farmers and nurture mutually beneficial relationships. crop failures and under-realisation of Small land parcels make automation, investment have led to numerous economically unviable in the cotton Infrastructure and Capacity Building Monitoring farmer suicides. farms of India. The high unskilled labour We, along with national & international Our auditors visit the farms on a regular quotient further opens up possibilities organisations, help build infrastructure basis and maintain detailed records. for evils like forced labour, inhumane that augments capacities, reduces input Soil tests and constant monitoring are work conditions, gender and caste- Traditional cotton farming, with its needs and enhances yield. done to ensure a healthy crop. based discrimination, and child labour. chemical fertilizers and pesticides also takes a toll on the environment. Expert Advice Simplified Trade Structure A team of 75+ field experts comprising Farmers are introduced to dependable agronomists, soil scientists, pest farm input suppliers so that they can specialists and social work circumvent dubious middlemen. BUILDING A TRAINING BUYBACK AT professionals provide advice and FARMERS FAIR PRICES TEAM OF EXPERTS INTRODUCING guidance to farmers and ensure Buyback NEW TECHNOLOGY efficient implementation of We buy the crop directly from the interventions. farmer at fair market prices prevailing at the time of purchase. A 'Farm Gate' ELIMINATING MIDDLEMEN Technology and Skill Development payment policy ensures that payments FARM We develop on-ground and location are made to farmers within seven GROWING A SELECTION specific solutions by collaborating working days through account payee MANAGING THE BETTER CROP BUILDING THE SUPPLY CHAIN AND A HEALTHIER with participating farmers. Our bank cheques. INFRASTRUCTURE (SUPPORTED BY COMMUNITY EXTENSIVE MIS) experts train and educate farmers about crop, nutrient, pest and disease Managing the Supply Chain MONITORING END-TO-END management, and decent work We maintain 100% traceability and our PROCESSES ethics. They also develop and share management information system helps guidance material on better us preserve the chain of custody right management practices. from seed to shop floor.
THE ARVIND AGRIBUSINESS CONTRACT FARMING PROCESS
23 24 HELPING FARMERS MAKE THE RIGHT CHOICE
Arvind helps farmers multiply their yield by sharing with them scientific farming practices and handholding them through the implementation phase. At Arvind, we believe that one size Environmental Benefits doesn't fit all. As the quality of the soil Water Efficiency ORGANIC and the capabilities of the farmer COTTON FARMING changes from farm to farm, so must the The learning forums provide know-how sustainable farming intervention. We on using water efficiently through 94% micro-irrigation. Between 2010 and see great merit in the Better Cotton OF THE LEARNING GROUPS WERE ORGANIC COTTON FARMING IS THE PROCESS Initiative project as an intermediate COMPLIANT WITH BCI PRINCIPLES 2013, on an average, BCI farmers used No two farms are the same. There is either variation OF GROWING COTTON NATURALLY USING AND CRITERIA IN FY 2012 27% less water compared to NON GMO SEEDS, AND WITHOUT RESORTING step towards responsible farming. in the capacity of the soil or the capability of the farmer. conventional farmers in the same area. TO SYNTHETIC PESTICIDES AND CHEMICAL FERTILIZERS. FROM AN ECONOMIC AND Soil Health RESOURCE PRODUCTIVITY STAND POINT, Reduced use of pesticides, increased BASED ON VARIOUS Economic Benefits IT IS BEST SUITED FOR MARGINAL FARMS use of organic matter in the form of WITH POOR QUALITY OF SOIL. farmyard manure and compost, Reduced Cost of Production BETTER adoption of micro-irrigation and regular PARAMETERS LIKE Through collective purchase of farm COTTON INITIATIVE inputs and better, bargaining power soil tests ensure better soil health. BENEFITS with suppliers. Between 2010 and 2013, on an QUALITY OF SOIL, BCI IS A CONCEPT TO GROW COTTON WITH average, BCI farmers used 29% less More Profitability fertilizer and 15% less pesticide Economic VERY CAREFULLY CONTROLLED APPLICATION OF WATER, USE OF APPROVED FERTILIZERS The need for middlemen is eliminated compared to conventional farmers in ACCESS TO IRRIGATION Reduction in input cost through use of AND PESTICIDES AND DRAMATICALLY as Arvind Ltd. ensures that the produce the same area. farm-made organic inputs like enriched REDUCING THE ENVIRONMENTAL FOOTPRINT is bought at the farmer's doorstep. Habitat Conservation AND PREVAILING SOCIAL compost, botanicals, and by adoption of OF COTTON FARMING. THIS IS A STEPPING Access to Affordable Finance Scientific methods to reduce pesticides proper crop rotation practices STONE TO ORGANIC FARMING. Dependence on local moneylenders and minimise the harmful effects of CONDITIONS, WE HELP Scientific practices help improve yield per is reduced as farmers are given the crop protection on the natural habitat. acre over time know-how and encouraged to deal with reliable financial institutions. Direct buying-at-doorstep and a Social Benefits FARMERS MAKE seven-day payment cycle, along with LEARNING GROUPS Better Nutrient, Pest & elimination of exploitation by middlemen, We have formed Learning Groups (LGs) to Disease Management Abolishing Social Evils improve farmer's income THE RIGHT CHOICE Education is imparted on how to Social and cultural programmes are reducing the inputs like synthetic regularly organised in order to create Environmental pesticides & fertilizers without awareness about child labour and BETWEEN ORGANIC No synthetic chemicals and fertiliser are impacting yield. gender discrimination. used. The only additives come in the form of organic manures which protects the soil Knowledge & Skill Development Building a Healthy Community COTTON CULTIVATION and ground water Farmers receive practical knowledge on Internationally recognised health and production principles that decreases safety standards are shared and Soil quality is controlled by rotational the cost of production and increases farmers are taught how to follow them. AND BETTER COTTON cropping of leguminous crops like pulses profitability. So far, over 4,000 farmers have been trained in better cotton Decent Work Ethics INITIATIVE. Social production system. The initiative gives men, women and backward classes equal employment We mentor farmers to form Self Help Quality of Fibre Groups (SHGs) and create a self- and income opportunities (equal and sustainable, mutual support system, From soil preparation to harvesting and approved wages). 106 villages have where peer-power is harnessed for segregating better quality cotton at the been covered to spread awareness problem solving and mobilising funds farm gate, our agronomist help farmers about decent work aspects especially enhance the quality of their harvest. children and women.
25 26 ARVIND BCI PROJECT DASHBOARD
NO. OF VILLAGES BCI BENEFITS 109 TOTAL AREA COVERED (HA) ARVIND INITIATED INCREASE IN INCOME MONEY MANAGEMENT 39,080 CREDIT GUIDANCE REDUCED COST THE FIRST BCI APPROVED OF PRODUCTION NO. OF FARMER‘S PROJECT IN INDIA. TODAY, BENEFITTED IMPROVED HUMAN & SOIL HEALTH WE ARE AN IMPLEMENTATION 4,000 NO. OF FARM FAMILY BUILDING HEALTHY PARTNER WITH BCI AND MEMBERS BENEFITTED COMMUNITY ONE OF THE MAJOR 20,000 PEST AND DISEASE MANAGEMENT BCI PLAYERS IN INDIA. EMPLOYMENT GENERATED Our BCI initiative works on a contract-based (FARM WORKERS) ABOLISHING farming model wherein we provide the farmers SOCIAL EVILS know-how on BCI farming techniques and 60,000 a guarantee to buyback the cotton produced directly from the farmers. DECENT BENEFITS IN NUTSHELL WORK ETHICS
WATER EFFICIENCY BETWEEN 2010 & 2013, ON AN AVERAGE, BCI FARMERS GOT BETTER QUALITY FIBRE
MINIMISING EFFECTS PRESERVING OF CROP PROTECTION FIBRE QUALITY 29% MORE YIELD HABITAT COMPARED TO CONVENTIONAL CONSERVATION FARMERS IN THE SAME AREA.
27 28 C A S E S T U D Y
Cotton is a major cash crop in Akola District of Maharashtra. However, a staggering majority practice cotton farming using excessive levels of synthetic chemical fertilizers and pesticides; resulting in a 'distressed farming system' which leads to lower yields and a higher production cost.
The issues get further complicated because Vidarbha is a drought-prone area that has seen a spate of farmer suicides due to successive crop failures and mounting debts. THE PRIMARY OBJECTIVE This horrific reality of farmer WAS TO IMPROVE THE suicides, spurred us to initiate an organic farming project at Akola in 2007-08. ECONOMIC CONDITION OF THE FARMERS AND The chosen route was to educate them on scientific organic farming and buy their EMPOWER THEM TO BE produce at a fair market price. The associated goal was to make a positive impact on the FINANCIALLY SELF-RELIANT ecosystem of Akola and rejuvenate the farmlands. AS A COMMUNITY.
29 30 C A S E S T U D Y
CURRENTLY OUR We took a hands-on approach and covered every aspect of the farm cycle – from ORGANIC FARMING awareness about seeds to application of bio-fertilizers and from harvesting PRACTICE techniques to instituting buyback contracts that provide a guaranteed support ENCOMPASSES OVER price for the farmers. Some of the stellar outcomes of this project are: 5,482 Improvement of Soil Health and Nutrients As part of our project, farmers were sensitised to the ill effects of pesticides on SMALL AND MARGINAL the health of the soil. Today farmers are self-motivated and have adopted FARMERS IN AKOLA, organic, integrated nutrient management practices which comprise use of COVERING APPROX. enriched compost, bio-fertilizers, green manure, vermicompost, compost tea etc.
Periodic soil analysis is undertaken and the reports are shared with the farmers. This enables them to adopt appropriate nutrient management and derive a 41,471 better yield. Our interventions have led to a marked improvement in soil health. ACRES OF FARM LAND. Richer nutrient levels Stronger structure that still retains its porosity
Better chemical composition in terms of salinity and pH balance
Increase in macro and microorganisms beneficial to farming practice
Better Water Management Practices
Akola is a drought-prone area with little or no irrigation. We have institutionalised better water management practices like rainwater harvesting through farm bunds, farm trenching and contour farming.
As a result, farmers are able to save 75% more groundwater. This extended availability of water and significantly reduced wastage in comparison to flood irrigation has made farmers more resilient against the vagaries of the monsoon.
THE ENTIRE COTTON PRODUCED AT Enhanced Per-acre Profitability THESE ORGANIC FARMS As a manifestation of our integrated intervention, yields have increased by IS CERTIFIED BY around 1 to 1.5 quintals/acre while input costs have dropped due to non- THE CONTROL requirement of expensive chemical-based fertilizers and pesticides. This has UNION CERTIFICATION, enhanced farmer incomes and strengthened the financial might of the NETHERLANDS. community as a whole.
31 32 EMPLOYEE WELL-BEING
Every business exists to fulfil human needs; either directly or indirectly. We need the skill of our workers as much as we seek the loyalty of our customers. Textile industry has always been labour intensive. Over the years, due to technological advancements a high degree of automation has come into the production process; but it will, most likely, never substitute quality and skilled manpower.
Today, despite India being home to 1.2 billion people, the textile manufacturing industry in India is feeling a disconcerting dearth of quality manpower at almost every level of the skill hierarchy.
To mitigate this looming threat to our looms, we have devised and executed a comprehensive employee engagement and 8,000 development programme that seeks to not only provide a conducive work environment but also ample opportunities for professional workers covered in the growth and personal development. comprehensive demographic information survey TRAINING & DEVELOPMENT
Training and development are significant in shaping the career graph of an employee. Though we aim to attract, retain and nurture the best talent, we strongly believe that their DEVELOPMENT development during their tenure with 3,105 PROGRAMMES us is equally important, if not more. MAN-DAYS OF EMPLOYEE ZERO 1,300 TRAINING IN FY 2013-14 We have an array of development We offer various learning and instances of reported programmes that are designed and students getting development opportunities for our human rights violations & benefited every year conducted keeping in mind the present employees. Training calendars are gender discrimination from Gyanda Programme skill levels and future growth potential. drawn at the start of each year across 1,971 each business encompassing technical, TOTAL PARTICIPANTS Foundation Development functional and behavioural modules. Programmes Trainings are imparted on the job as 75 These programmes strengthen the well as through classrooms and TOTAL TRAINING DAYS base of our workforce and are focussed seminars. Continuous evaluation by at workers and junior management. senior colleagues and mentors ensures that employees develop necessary UNNATI capabilities and skill sets. 53 NO. OF TRAINING Sanjay Nagar slum 300 Unnati is our Worker Development Besides developing core implementation PROGRAMMES development project individuals trained Programme where the workers go skills, we also focus on developing soft included in the list of for skill upgradation through six-month of rigorous skills of our employees. We send our OUTBOUND TRAINING '100 best practices' in collaboration training in phase 1 and have to employees for outbound training by UNCHS with nift work on a six-month project in programmes for developing phase 2. Upon completion the interpersonal relations, enhancing workers get an opportunity to be communication, improving levels of promoted as supervisors. motivation, etc. These are conducted PARTICIPANTS once in two years in an informal and ACTIVELY Last year, natural environment by in-house 450 PARTICIPATED IN one batch of trainers. AROUND EIGHT SUCH TRAININGS. 20 participants underwent the Unnati programme.
33 34 UDAAN INDUSTRIAL RELATIONS
Udaan is our Junior Management Development programme. It is a six We provide a secure and happy workplace for our employees and workers, and have recognised worker unions at both our month programme comprising manufacturing operations - Naroda and Santej. All workers of these two facilities are covered by these unions. We have excellent classroom based training sessions industrial relations with our workforce and unions. Our industrial relations department regularly organises a variety of events and on behavioural and functional activities across locations: orientation, followed by a live project where the participants put Manager Development Programme (MDP) Employee Engagement Programmes the learning into practice. Our Manager Development Programme aims to increase the overall efficiency and A total of four batches capability of our managers. The programme comprises three modules: underwent Module 1 this training focuses on understanding self and inculcating problem-solving and programme in decision-making skills FY 2013-14. Module 2 includes sessions on coaching for empowerment and business communication
Module 3 has sessions on strategic management and interpersonal skills
• Snehmilan with Karobari Members – An annual Diwali get-together where the CEO also shares the organisation's vision for the new year
• 'Sathi Hath Badhana' – A development programme for Textile Labour Association (TLA) Members
• Employee Attendance Award ceremonies
• Annual Sports Meet - As part of 'Arvind Utsav'
• Earn & Learn Scheme – A skill development initiative for contract workers where they are given training to complete a 3-year ITI or a 4-year Diploma course while continuing to work, and are absorbed as regular on-roll workers upon completion. Launched in February 2014, the first batch of • Celebration of Woman's day - 120 Front Line Managers took part in FY 2013-14 MDP took place in Ahmedabad and consisted of 14 participants.
35 36 EMPLOYEE SNAPSHOT FY 2013-14
Total Workforce (Naroda, Santej & Bengaluru) 14,922
Workforce by Level of Employment Officers (Senior, Middle, Junior Management) 2,028 Towards end of 2012, SHARDA Others (Short Term Contracts, Trainees etc.) 297 Trust, our CSR implementation Workmen (Excluding FTC) 12,597 arm, initiated an ambitious plan to collect comprehensive Workforce by Type of Contract HUMAN RIGHTS demographic information about Permanent Employees 14,922 Arvind's workers and their family We are determined to uphold the tenets members. This included of human rights at our offices and mills. Workforce by Gender education and health records, We comply with all government policies Male 13,422 housing details, and contact and statutes applicable to us. information of the workforce. Female 1,500
The aim is to use the Workforce by Age Group (Officers only) information to plan welfare and <30 years 600 capacity building initiatives that During the reporting period, 30-50 years 1,193 will eventually enhance their we have covered around 8,000 >50 years 235 quality of life. For doing so, an out of approx. 12,597 workers in online Workers' Information Ahmedabad region and based Attrition Rates System was designed with on the findings, suggested Officers 16.2% provisions for generating initiatives have been presented - Senior Management: 2% intended reports. to the top management. In - Middle Management: 4% future, we aim to cover the - Junior Management: 27% remaining workforce in Attrition Rates by Gender (Officers only) 15.7% Male Ahmedabad region and expand 23.1% Female the scope of study to Bengaluru Attrition Rates by Age Group (Officers Only) 26% (<30) regions as well. 13% (30-50) 9% (>50) Attrition of Workforce 26% Family Engagement Programmes
• 'Tejasvi Tarla' – Merit award for the workers' children SAFETY
• Career Development Programme for the children of Front Line Managers The first step towards solving a problem, is to accept that it exists. Textile manufacturing is a labour-intensive process and involves working with heat, electricity, water and a plethora of machines – all of which pose a safety risk. In the past, our safety performance • Drawing competition for children of Front Line Managers - has been way off the national averages. We recognise this issue and are determined to address it. 96 children participated in May 2014
In addition to safety awareness programmes, we have undertaken following initiatives to make sure that safety is weaved into every aspect of the production process. Safety Performance Injuries 615 Awareness Campaigns • Dedicated safety committee at every plant location to drive awareness programmes Male 610 • Special medical check-up camp for women • Comprehensive on-site emergency plan at every unit Female 5 Frequency Rate 3.86 • Introduction to Employee State Insurance Scheme • Introduction of night mock drills to enhance emergency preparedness Severity Rate 73.07 • Safety awareness training programme for • Ultra-modern fire hydrant system with ultra-high pressure Front Line Managers Note: Safety data only pertains to the Naroda, • Plans are afoot to apply for an OHSAS certification in next reporting year Santej and Bengaluru facilities.
37 38 SOCIETY
Most of our interventions are directed towards improving the quality of life of THE OTHER IMPORTANT PART OF the urban poor residing in and around Ahmedabad - a city that houses two of OUR PEOPLE FOCUS IS THE WELL-BEING OF THE COMMUNITY our manufacturing facilities and our WE OPERATE IN. OUR CORPORATE SOCIAL RESPONSIBILITY corporate headquarters. (CSR) PHILOSOPHY IS BASED ON THE STRONG BELIEF FOCUS AREAS THAT HEALTH OF THE SOCIETY AND THE HEALTH OF We implement our CSR activities through the Strategic Help Alliance for Relief to Distressed Areas (SHARDA) Trust. Since its CORPORATION ARE INEXTRICABLY LINKED. inception in 1995, the Trust has based its interventions on the premise that a family has five basic needs, which are listed below according to their priority. 1 2 3 4 5 BASIC PHYSICAL PRIMARY ADVANCED BASIC DEVELOPING INFRASTRUCTURE HEALTHCARE HEALTHCARE EDUCATION (3RS) VOCATIONAL SKILL Clean potable water Includes prevention Access to high quality Basic skill-oriented Skills and Abilities at the doorsteps in of major diseases, Secondary and Tertiary education programmes to compete in a adequate quantity at treatment of basic Healthcare on Reading, Writing & highly competitive convenient hours, ailments Arithmetic Skills (3Rs - environment individual toilets, and Relating, Representing hygienic surroundings & Reasoning)
We understand that out of these five focus areas, there are some like primary healthcare and education where we can make a bigger impact by joining forces with other stakeholders that are already doing meaningful work in the area. Thus we actively collaborate with Government and NGOs to leverage combined strengths to achieve larger and faster outcomes.
SHARDA TRUST’S MODEL
Partnership with Supportive Innovative Monitoring, the Local Government Infrastructure Method & Materials Evaluation & Tracking • MoU with Municipal • Upgrading school infrastructure • Teaching Eng, Comp & Maths • Teaching days, schedules, School Board curriculum, tests & evaluation • Establishing quality computer lab • Teaching approach based criteria pre-defined • MSB allows use of on student’s strength infrastructure & provides • Projection facility (LCD monitor) • Tracking student’s electricity free of cost • Real life example, attendance & performance • Internet for faculty & students practical knowledge • Providing teaching hours • Ergonomic furniture • Following up irregular & • Subject’s reinforcement weak students • Neat and clean classrooms • Teaching by trust’s teachers • Interaction with parents • Using computers in teaching
39 40 INITIATIVES UNDERTAKEN BY SHARDA TRUST
IMPROVING PUBLIC INFRASTRUCTURE The Sanjay Nagar project received The first programme that the SHARDA Trust undertook after its inception was to recognition from United Nations Centre improve the physical infrastructure in 'Sanjay Nagar', a slum in Ahmedabad. It was for Human Settlement (UNCHS) and a Public Private Partnership, where-in SHARDA joined hands with the Ahmedabad was included in their global list of Municipal Corporation and upgraded the living conditions of the slum dwellers. The project was completed on time and within the approved budget. 100 BEST PRACTICES
ENHANCING LIVELIHOOD SKILLS
As part of this initiative, the SHARDA Trust trains youth from economically It has so far trained and placed over backward families in sewing machine operation. The Trust has undertaken this 300 STUDENTS initiative in collaboration with the National Institute of Fashion Technology (NIFT), 200 of whom have been placed Gandhinagar. Arvind has also tied up with local garment manufacturers for with Arvind. placement of the students. Till date, close to 250 individuals The Trust also offers a programme in Practical English and Computer Applications have undergone PECA programme (PECA) in collaboration with Chandraprasad Desai Memorial Foundation with an aim and a majority of them have been to enhance the employability of the youth in BPOs and ITES industry. placed with suitable jobs.
GYANDA – THE FOUNTAIN OF KNOWLEDGE
In 2006, the Trust launched – Gyanda, team of 32 full-time teachers & As of March 31, 2014, there are about meaning 'a fountain of knowledge' - a coordinators and 5 visiting teachers. 900 STUDENTS supplementary education model The initiative has made learning enrolled in the 3 centres for primary & designed for students of Municipal engaging for the students and Schools. It is a partnership with the local reduced the dropout rate. 300 STUDENTS government under which a memorandum in the 2 centres for of understanding has been signed with After three years of working with the secondary education. the Municipal School Board to conduct students, through carefully designed after-school classes within the premises criteria, bright and meritorious of municipal schools. students are identified, sponsored for studies till class XII in better schools The Model, tested in Ahmedabad for last and are also given academic support eight years, aims to establish a link after school hours. between education and employment by hand-holding and supporting a child for The Gyanda programme is unique 8 to 12 years. because no other supplementary education model tracks the In these after-school classes, students performance of all its students while of standard V to VII are taught English, maintaining direct contact with the Computers and Mathematics by teachers parents for the entire schooling specially appointed by the Trust. journey of 6-8 years and beyond for Currently the Trust has on board a higher education.
THE GYANDA PROGRAMME BENEFITS 1,300 STUDENTS EVERY YEAR. THE PROGRAMME IS POISED FOR RAPID EXPANSION IN THE NEXT 3-5 YEARS AND AIMS TO IMPACT AT LEAST 5,000 STUDENTS EVERY YEAR.
41 42 Textile manufacturing, the world over, has traditionally been capital intensive. Whether it is increasing the quantity of output by employing more men and machines, or enhancing the quality of output by leveraging technology, robust cash flows and long-term strategic investments have always been vital for growth and sustainability of business. At Arvind, sound finances Our unwavering focus on financial prudence for more than 80 years, 29% 63% has ensured that we always have access to capital, not only for and diligent investments daily operations but even for game-changing investments. growth in growth in have enabled aggressive Operating profit before Tax expansion and have given us EBIDTA (EXCLUDING EXCEPTIONAL INCOME) the muscle to implement far-sighted decisions. This in turn, has helped us maintain our leadership position across tumultuous times.
Arvind Mills Ltd. was established in 1931 with a share capital of INR 2.5 million. We embraced sophisticated 43,124.7 97.2% technology for superfine fabrics, got tremendous economic value increase In acceptance from the market and started announcing distributed in the total expenditure dividends for shareholders from 1934 itself. inr million on R&D In fy 2013-14
IN 1990S, WELL BEFORE THE LIBERALISATION OF INDIAN MARKET, WE FORAYED INTO DENIMS AND HIGH-QUALITY FABRICS AND TAPPED INTERNATIONAL MARKETS. TO FUEL THIS GROWTH, IN 1994, 42.4% 38.4% WE BECAME ONE OF THE FIRST INDIAN increase in increase in share dividend diluted EPs COMPANIES IN OUR SEGMENT TO FLOAT A EURO ISSUE OF USD 125 MILLION - In 1995-96, we made the first direct access to international debit market by raising a USD 15 million IT WAS OVERSUBSCRIBED 20 TIMES. term loan. In the year 1996-97, the foundation was laid for the Santej Unit near Ahmedabad – A state-of- the-art, eco-friendly facility with 'zero effluent discharge' capability.
In 2001-02, following a comprehensive debt restructuring scheme, we achieved the highest profitability in our history till then.
43 44 ECONOMIC VALUE GENERATED & DISTRIBUTED
While our annual reports share detailed information about our financial performance, the extent to which it impacts the broader economic system of the society, may not be easily inferred.
Detailed below is the quantum of economic value we generated and distributed. in INR million FY 11-12 FY 12-13 FY 13-14
Economic Value Generated (A) 36,299.4 38,737.5 48,599.1
• Operating Costs 25,577.6 26,797.7 34,063.7
• Employee Benefits and Wages 3,605.1 4,422.1 5,088.4
• Payment to Providers of Capital 1,976.2 2,022.9 3,095.3
• Payments direct to Government (Indian) 860.0 547.6 877.3
Economic Value Distributed (B) 32,018.9 33,790.3 43,124.7
Economic Value Retained (A - B) 4,280.5 4,947.2 5,474.4
Note: During the reporting period, we received government subsidies worth INR 19.6 million.
Dividends
Dividend is one of the major barometers of how efficiently and effectively, an organisation is distributing wealth to its shareholders. Here is a glimpse of our dividend pay-out over last three financial years.
FY 11-12 FY 12-13 FY 13-14
Dividend 10% 16.5% 23.5% (INR 1 per share) (INR 1.65 per share) (INR 2.35 per share)
Research & Development
Systematic expenditure in R&D is an investment in future-proofing an organisation's growth. We have two R&D Centres, one at Naroda and another at Santej. Both centres are duly recognised and approved by Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. in INR million R&D Expenditure FY 11-12 FY 12-13 FY 13-14
Naroda Centre 42.4 118.8 61.6
Santej Centre 11.8 78.6 327.7
45 46 OUR PERFORMANCE
In FY 2013-14, even in the backdrop VOILES & KNITS BUSINESS of a weak macro-economic scenario, both globally and in India, we posted 21% 48% an encouraging performance. revenue growth revenue growth in Voiles in Knits
WOVEN FABRICS BUSINESS GARMENTS BUSINESS MILLION 19% 103 METERS growth in highest ever 33% volume revenue growth growth in volume 8% 26% growth in average growth in revenues price realisation buoyed by the DENIM BUSINESS per meter domestic market
MILLION 18% 105 METERS growth in highest ever growth in volume volume in the last decade 6% 22% growth in growth in revenues due average price to increase in volume and realisation selling price in domestic & per meter export markets
Further details can be found in our 83rd Annual Report for FY 2013-14 at our website: http://www.arvind.com/investorrelations/annualfinancialreport.htm
47 48 LOCAL PROCUREMENT & HIRING
Economic sustainability for us goes beyond a strong balance sheet and enhanced shareholder value. We also catalyse socio-economic growth in our communities through local procurement of goods and services and hire from our local communities.
In the reporting year, almost all our significant (top ten by monetary amount) supplies were sourced domestically (i.e. from within the country). WE SEE LOCAL PROCUREMENT AND HIRING AS PROGRESSIVE, INCLUSIVE AND ECONOMICALLY BENEFICIAL TO THE COMMUNITY WE OPERATE IN.
While the attributes of quality, price and timeliness remain paramount in our procurement decisions, we prefer to source from local suppliers/vendors in order to encourage socio-economic growth around our operations.
Although we do not have a stated policy on hiring locally, we encourage and support employment of people from within nearby communities in order to generate socio-economic benefits. Our senior management consists entirely of Indian citizens, and our employees and workmen are predominantly from the communities where our manufacturing facilities are located.
49 50 More we manage to save today, It is said that energy can neither be created nor destroyed; more there shall be it can only be converted from one form to another. Unfortunately, the kind of energy that is material to us – for tomorrow. fossil fuel, is depleting at a rapid pace. The demand-supply Energy conservation deficit is ramping up fuel and electricity costs and threatens to affect top-line in the short and medium term is imperative to power and, might be even, production in the long term. a brighter future.
A host of small interventions to make a bigger impact on energy conservation
680 KW savings in Natural saved by Gas consumption through switching to high capacity Energy-efficient Stenter air compressors AS WE GROW AND PRODUCE MORE, IT IS OBVIOUS THAT WE WILL CONSUME MORE ENERGY. BUT THE RATE OF CONSUMPTION AND QUANTUM OF GHG EMISSIONS NEED NOT BE PROPORTIONATE TO THE RATE OF GROWTH. IN FACT, WE ARE CONTINUOUSLY FERRETING WAYS TO USING LESS ENERGY units/day saved by replacing less fuel consumption fluorescent bulbs with LED by using humidity PER UNIT OF PRODUCE. During the reporting year, our power & fuel cost increased marginally to an lights in the dry process area sensor in tumble dryer absolute value of INR 4,070 million. But as a percentage of output, it dropped remarkably to 9% as against 11% in the previous year. This savings happened mainly on account of higher amount of power being purchased through Open Access mechanism.
But while the financial impact of rising energy cost may be temporarily controlled using such mechanisms, the truth remains that energy conservation is imperative to power a brighter future.
51 52 CONSUMPTION
At Arvind, energy is primarily used in two forms – coal to run the boilers and electricity to operate the machines. Our energy sources can also be segmented into two broad categories - Direct Energy, the energy we generate ourselves through combustion of fuels such as diesel, coal and Compressed Natural Gas (CNG), and Indirect Energy, the electricity we purchase from the grid.
At Bengaluru, we primarily relied on non-renewable sources of energy till FY 11-12. In FY 12-13, we introduced Briquettes as a cleaner and greener substitute. This process of substitution was carried forward in FY 13-14 as well.
The graphs below depict the three-year trend of total direct and indirect energy consumption at the three manufacturing plants within the reporting scope for FY 2013-14.
Total Direct Energy Consumption In TJ IN THE NEAR FUTURE WE AIM TO ACHIEVE 4 1 8 , 2 5 0 6 2 5 , 2 9 2 9 8 , , 6 6 1 1 8 9 4 4 , , Woven & Knits (Santej) 1 1 OF OUR ENERGY REQUIREMENT Denim (Naroda) FROM BIOMASS AT THE 4 8 1 Garments (Bengaluru) 5 5 5 BENGALURU UNIT 2011-12 2012-13 2013-14
Note: Sources of Energy for both locations = Diesel + CNG + Coal (all converted to TJ)
Total Indirect Energy Consumption In MWh 4 8 1 , 7 2 2 0 0 0 3 , 0 1 7 0 7 0 , 8 1 6 6 3 0 4 , , 1 4 5 4
2 Woven & Knits (Santej) 0 1
2 OUR OPERATIONS ONLY PRODUCE 9 2 7
9 Denim (Naroda) , 6 2 2 4 1 0 2 , , , 7 Garments (Bengaluru) 5 4 4 CARBON DIOXIDE AND WE ARE FOCUSED TOWARDS 2011-12 2012-13 2013-14 MONITORING AND MITIGATING IT. WE CONTINUE TO INVEST IN TECHNOLOGY UPGRADATION AND PROCESS IMPROVEMENTS Specific Electricity Consumption (Santej) Specific Electricity Consumption (Naroda) TO RESTRICT OUR GHG EMISSIONS. in KWh/meter production in KWh/meter 8 2 3 9 0 6 . . 5 6 . 5 2 1 2 . 5 2 9 . . 2 1 1
2011-12 2012-13 2013-14 2011-12 2012-13 2013-14
53 54 ENERGY CONSERVATION INITIATIVES
The corresponding GHG emissions emanating from our direct and indirect use of energy are given in the graph below. The direct World over, the textile industry has been one of the lowest energy efficient sectors but emissions have been calculated on the basis of IPCC guidelines for GHG inventories. We have referred the Central Electricity c ontinues to be one of the highest energy consuming ones. Authority (CEA) database for calculating the indirect emissions. AS ONE OF THE LEADING TEXTILE PRODUCERS OF INDIA, WE TAKE IT AS OUR RESPONSIBILITY AND PREROGATIVE Total GHG Emissions (direct and indirect) TO LEAD THE CHARGE, AND CONTINUOUSLY PROMOTE In TCO2 2 7 2 ,
3 AND IMPLEMENT EFFICIENT USE OF ENERGY. 8 3 6 6 8 , 8 1 3 1 2 0 4 7 , 3 8 , 2 9 0 3 2 3 , 2 7 2 4 THERMAL ENERGY 3 0 0 , 2 4 7
1 India produces close to 14% of the worldwide textile yarns and fabrics; corresponding to 60 billion m² of textile per year. Approximately Woven & Knits (Santej) 66 billion kWh of thermal energy is required to maintain such a scale of operation. Thus there will always be a stress on the system and 3 2 7 7 Denim (Naroda) 6 7 8 for continuity and growth it would be prudent for us to reduce our specific energy consumption in the immediate and our absolute , 1 9 , 0 , Garments (Bengaluru) 9 1 5 energy consumption in the medium and long term. 2011-12 2012-13 2013-14 We have invested in technologically advanced machinery to enhance efficiency and derive cost savings.
Specific GHG Emission (Santej) Specific GHG Emission (Naroda)
in kg CO2/meter production in kg CO2/meter production 6 8 5 0 0 4 . . . 5 3 3 2 2 5
. Stenters are widely used for stretching, drying, heat-setting and finishing of fabrics.
6 THESE STENTERS HAVE HELPED 4 2 . 8 . 2
1 Heat-setting imparts important characteristics like shape retention, crease resistance, US REDUCE OUR NATURAL GAS resilience and elasticity to the fibres. CONSUMPTION BY AROUND
To reduce energy consumption at our Naroda plant, we commissioned an energy- 2011-12 2012-13 2013-14 2011-12 2012-13 2013-14 efficient stenter in November 2013. Its use has led to marked reduction in our energy consumption. The stenter is equipped with a mobile heat-recovery unit that draws in This year, GHG emissions have increased due to a shift in power generation. Earlier, power was generated through natural gas, hot air into a heat exchanger to pre-heats the incoming fresh air. but now it comes from the Grid due to non-availability and pricing issue of natural gas.
Preheaters installed at our Bengaluru At Naroda, we also reduce our fuel unit, recover the heat generated by the requirement by recovering steam and fuel gas emission from the thermic oil directing it back to the feed tank. heater and utilise it to preheat the boiler feed water. TON TON OF COAL SAVED PER DAY OF FUEL SAVED PER DAY
55 56 ELECTRICAL ENERGY
In a textile mill, the manufacture of yarn and cloth accounts for a majority of its electrical consumption. Rapid strides in technology ensure that every year more and more energy efficient machines are introduced in the market. At Arvind, though we are an old mill with an illustrious history, we periodically audit and replace energy-inefficient equipment with more efficient alternatives.
Regular upgradation of equipment keeps us ahead on the energy and productivity curve.
Compressed air is one of the prime energy intensive utilities in the Textile industry. Large amount of power is required to generate compressed air that keeps our looms running. Being highly versatile in nature, compressed air makes operations more effective in terms of productivity and safety and hence, it cannot be replaced. But its production can be made more energy efficient.
THIS HAS DECREASED ELECTRICITY CONSUMPTION BY 8% AND A SAVING OF
In FY 13-14, we replaced low-capacity compressors with three new high-capacity energy efficient centrifugal compressors. It has also helped in 'smoothening' of the 680 KW compressed air system, resulting in increased machine availability and hence more ON A TOTAL COMPRESSOR production time. LOAD OF 8,690 KW
VFDs are regarded as one the best We have migrated from electrical Tumble dryers offer a fast drying cycle, means of bringing down the electrical energy to steam energy in our but consume large amounts of electricity. consumption in a wide range of Crinkling Pre-curing machine at our By equipping our tumble dryers at machinery. We installed VFDs in the Bengaluru unit. Bengaluru with humidity sensors, we boilers at our Bengaluru unit. are ensuring that they use only as much energy as is required.
UNITS OF ELECTRICITY UNITS OF ENERGY SAVED PER DAY SAVED PER DAY SAVING IN FUEL USAGE
Lights are one of the most conspicuous users of electricity but are easily overlooked in a mammoth conservation plan. We understand that every bulb can contribute towards making our operations, more energy-efficient.
• Replaced the conventional T8 lights at our Denim production unit with new-generation, energy-efficient and longer life span LED lights. 200 UNITS OF ELECTRICITY • Replaced Fluorescent bulbs in the dry process area of our Bengaluru unit with LED. SAVED PER DAY
57 58 The textile industry consumes large amount of water, especially in its wet processing operations. Almost all dyes, specialty chemicals, and finishing chemicals are applied to textile substrates from water baths. Additionally, most fabric preparation steps like desizing, scouring, bleaching, 19.5 WATER IS TRULY THE LIFELINE OF OUR and mercerizing use aqueous systems. Million M3 liquid discharge PRODUCTION PROCESS AND WE MAINTAIN A SHARP FOCUS wastewater treated at our in FY 2014-15 Santej unit ON WATER CONSUMPTION, CONSERVATION AND RECYCLING. TREATING WASTEWATER, REUSING THE TREATED WATER AND RECHARGING GROUNDWATER ARE INTEGRAL TO OUR WATER STRATEGY.
estimated rainwater harvesting
m3 3 m per day of treated through the recharge sewage is being utilised wells at Santej unit at Bengaluru unit
recycled water usage at CONSUMPTION our Bengaluru unit During FY 2013-14, our Denims business grew 18% in volume to 105 million meters – Specific Water Consumption highest ever in the last decade, while the Woven Fabrics business achieved 19% In litres of water consumed/meter of production growth in volume to 103 million meters, again its highest ever volume. Yet, by deploying comprehensive water management initiatives, we managed to reel-in the absolute water consumption at Santej unit by 20.8%, while Naroda showed a 6 8 3 1 . 1 . 8 growth of approx. 7%. 5 . 2 5 9 3 3 0 5 4 3 4 7 . . . 1 0 The Garments business (Bengaluru), has an extremely low water footprint as 0 4 4 4 compared to the textile manufacturing plants. In FY 13-14, it chalked up a production volume growth of 23% and posted an increase in water consumption by 23.33%. It must be noted that this increase at Bengaluru is on an extremely low base and more importantly, 100% of industrial water requirement is met through recycled water 2011-12 2012-13 2013-14 and no freshwater is being used for the processes. The tanker water is primarily used for domestic purposes only. Santej Naroda
59 60 Total Freshwater Consumption In 1,000 m3 WATER MANAGEMENT & CONSERVATION 0 4 1 2 0 , 7 7 4 8 8 , , 3 3 EXTRACTING WATER FROM WASTE
WHILE PRODUCTION ACROSS While groundwater was depleting, the quantum of wastewater being produced daily CURRENTLY OUR UNITS TOUCHED RECORD was rising exponentially. Thus, instead of extracting water from the ground, we HIGH IN FY 2013-14, WE decided to extract water from waste. 0 7 1 REDUCED OUR TOTAL WATER 3 6 4
, M 5 In 2007, we started sourcing water from treated sewage 1 , 7 CONSUMPTION BY 1 0
2 Naroda and utilising it at Garment Washing units at our PER DAY OF TREATED SEWAGE IS , 9 1 1 8
3 Santej
0 BEING UTILISED AT THE BENGALURU UNIT 2 6 Bengaluru Plant. 2
1 Bengaluru 2011-12 2012-13 2013-14 0.7% The water for the Sewage Treatment Plant was sourced from the Bengaluru Water Note: The source of water at Naroda and Santej plants is groundwater, while the Bengaluru unit uses the treated wastewater from the in-house Sewage Treatment Plant. Supply and Sewerage Board (BWSSB) with permission from Karnataka Pollution Control Board (KPCB).
Looking at the success of this project, we EFFLUENT MANAGEMENT plan to extend this process of reusing water from Public Sewage Treatment Plants at the Effluents have always been part of textile manufacturing. But the fact that something Santej unit as well. In future, the Arvind has always existed, doesn't justify its existence. In addition to severe environmental Smart Value Homes' township project of concerns, effluent management must also respond to rapidly changing market 5,000 homes, coming up near our Santej requirements and customer expectations. In 1997, when we established our unit at 41 4% 3 plant will generate 1,600 m /day of Santej, we equipped it with the latest in effluent treatment systems and Zero-Liquid OF OUR TOTAL WATER REQUIREMENT IS MET BY RECYCLING AND REUSING sewage effluent. This effluent will be Discharge capabilities. Today, we recycle water at the Santej and Bengaluru facilities. 3 THE WASTEWATER IN-HOUSE. used to produce DM water to substitute In future, we plan to reuse 4,000 m /day of treated Here are the details on the volume of wastewater treated at these plants. the raw water presently used at our plant. sewage water, sourced from the Jaspur Sewage Plant at Gandhinagar. This will offset the groundwater extracted Total Water Treated & Reused in Process This initiative will reduce groundwater 3 by the Santej unit. In 1,000 m3 extraction by up to 900 m /day in the
4 textile complex. The aim is to eventually 5 6 ,
4 make Santej Campus, Water Neutral. 7 6 9 7 , 0 3 4 , 3
11.3 9 MILLION M Woven & Knits (Santej) WASTEWATER TREATED 3 9 5 Garments (Bengaluru) We also have a fully-equipped ETP at
6 AND REUSED IN PROCESS 5 2 the Bengaluru unit through which we 2011-12 2012-13 2013-14 saved 59,289 kilo litres in FY 12-13 which is equivalent to 17 litres of water Total Wastewater Treated & Discharged saved per garment wash. In 1,000 m3 OUR SANTEJ UNIT IS A In this unit, today, we are using 100% 7 4 7 1
, recycled water; out of which 70% is 6 4 2 3 4
, We are the only garment washing factory in Bengaluru
3 purchased and transported via a four , 2 2 km long pipeline from the government to use 100% recycled water. sewage water treatment body while DISCHARGE SITE the remaining 30% is from our own ETP. Denim (Naroda) 4
3 AS THE ENTIRE WATER DISCHARGED 7 7 3 0
1 Garments (Bengaluru) 1 1 IS TREATED & REUSED BY THE PLANT 2011-12 2012-13 2013-14
61 62 Our Santej unit is equipped with a Wastewater Treatment Plant which recycles up to 98% of our effluent. Thus, the net withdrawal of the water from bore wells is limited to evaporation and consumption losses.
The Wastewater Treatment Plant comprises an Effluent Treatment Plant (ETP), a physio-chemical and biological processing unit and a Reverse Osmosis (RO) based filtration plant in the tertiary unit - the largest of its kind in India. 95% of the effluent is recovered as good quality water by this four-stage RO system and the balance wastewater is treated through the MVRE technology.
HARVESTING RAINWATER TO RECHARGE GROUNDWATER
The recharge wells at Naroda have been particularly successful. It is estimated that these wells conserve 7 m3 of rainwater per hour. Assuming the average span of monsoon as four month, we have 20,160 m3 of rainwater recharge annually.
The importance of groundwater for the existence of human society cannot be overemphasized. In addition to being a major source of drinking water in both urban and rural India, groundwater is also an important source of water for agriculture and manufacturing. But we are drawing groundwater faster than it can recharge, thus it is AMOUNT OF RAINWATER RECHARGED vital to replenish and maintain its level for continued use in the future. THROUGH THE SANTEJ WELLS SINCE 1999 IS ESTIMATED TO BE Towards recharging the groundwater levels around our areas of operation, we have M3 excavated and installed recharge wells that harvest rainwater. We have four such wells at Santej which have been operational since 1999. Additionally we have one well at Bengaluru and seven wells at Naroda unit.
63 64 Chemicals are omnipresent. They are in the air, water and soil; in the fabric and in food; in sickness and in health. But contrary to popular belief, they are not always bad.
They make an incredibly wide array of human endeavours, products and processes faster, simpler, more effective, more profitable and In textile industry, for instance, more affordable. The trouble with chemicals is substantial quantities of complex not in its nature per se, but in the manner and chemicals are used, especially in the extent to which we use them. dyeing and finishing phase. These chemicals give fabrics some of their most characteristic qualities like colour, 98% encouraging natural & feel, strength etc. effluent organic farming techniques WE ARE DETERMINED TO DIFFERENTIATE recycling at to eliminate use of harmful santej unit synthetic chemicals THE GOOD CHEMICALS FROM THE BAD AND ALSO TO USE THE RIGHT CHEMICALS JUDICIOUSLY AND RESPONSIBLY.
Arvind Denim Lab Chemicals Hazard accredited by NABL, Levi's & Tracking Sheet created for GAP etc. for physical & the entire chemical supply chemical testing and process chain
Most of the chemicals used in textile processing are not retained on the fibre but are simply washed off. These washed off chemicals or effluents pose a serious threat to the ecosystem. They need to be reduced or made less dangerous by either controlling the quantity of each chemical used and/or replacing more-polluting chemicals with less-polluting substitutes. But in conservation and optimisation initiatives, much like in garments, one size never fits all.
introducing Salt-recovery by MVRE At Arvind, we understand that taking a broad brush and painting all caustic recovery and Chillers for re-use chemicals as harmful is akin to biting the hand that feeds us. plant at naroda in Dyeing
This is evident in how we are balancing organically grown cotton with the cotton that is grown in our BCI farms using the right chemicals in the right amount. It is also evident in the processes that we have in place to not only treat the effluents but also extract useful salts from them; such that they can be reused.
65 66 CHEMICAL MANAGEMENT WASTE GENERATION
Our aim is to ensure safe handling of chemicals throughout their lifecycle. REACH is a The textile industry generates millions of tonnes of waste every year. This is not only a big risk to our natural ecosystems and public The Arvind Denim Lab is regulation of the European Union and stands for Registration, Evaluation, Authorisation health, it is also detrimental to societal growth and economic development. accredited by NABL, Levi's, and Restriction of Chemicals. Despite being based outside the EU and hence not under GAP, and C&A amongst the purview of REACH, we adhere to all procedures and regulations stipulated by it. Consistent and comprehensive waste management translates into a number of benefits. The organisation that reduces and recycles others, for physical and waste, fundamentally gets to retain its societal license to operate. Cost reductions is an added benefit that boosts motivation. chemical testing. Highlights The graphs here detail the hazardous and non-hazardous waste generated at our plants. All hazardous waste is handled as per the • We undertook a comprehensive assessment and created a database of MSDS for applicable regulatory guidelines. all chemicals. We are currently identifying the critical materials in the list. In addition to identifying and • Based on the MSDS, a Chemicals Hazard Tracking Sheet has been created for the controlling the use of hazardous Non-Hazardous Solid Waste (Hard) Non-Hazardous Solid Waste (Soft) entire chemical supply and process chain. chemicals, we have established clear In Tonne In Tonne
channels of communication with our 7
• We receive disclosures on all Priority Substances from all the suppliers in our 3 7 1 3 2 , suppliers so that they know how we 7 1 0 0 2 dyes/chemicals supply chain. 9 5 5 5 4 , , 8 , ,
intend to use their chemicals, and with 3 2 2 3 2 2 2 2 , 2 , 2 our customers so that they understand 0
• We have identified the ZDHC Priority Chemicals for Denim production and we aim 0 2 9 7 3 8 8 7 ,
to stop or substitute the use of these priority chemicals. the nature of chemicals used by us. , 7 1 1 , 1 6 7 1 1 1 1 , , 1 1
2011-12 2012-13 2013-14 2011-12 2012-13 2013-14
Woven & Knits (Santej) Denim (Naroda) Woven & Knits (Santej) Denim (Naroda)
Non-Hazardous Solid Scrap Waste (Chindi) In Tonne 3 0 6 3 1 7 7 7 6 0 3 3 9 4 1 3 Denim (Naroda) 0 3 7
3 Woven & Knits (Santej) 2 5 8 5 4 Garments (Bengaluru)
2011-12 2012-13 2013-14
Hazardous Waste Non-refillable Empty Containers Disposed ETP Sludge | 2013-14 EFFICIENT MANAGEMENT OF HAZARDOUS & NON-HAZARDOUS In Nos. In ‘000 kg 8 1 3 2 6 ,
WASTE IS INTEGRAL TO ARVIND. SELF-RELIANT, RESPONSIBLE 7 , 2 1 2 0 7 1 5 8 1 3 , 1 2 7 5
WASTE DISPOSAL ALSO STEMS FROM ARVIND‘S ETHOS THAT , 9 4 1 4 5 , 5 9 4 8 4 0 9 , , 1 9 , 1 9 1 A CORPORATE SHOULD ALWAYS BE AN ASSET TO THE SOCIETY 5 4 1 6
AND NEVER BURDEN IT IN ANY MANNER. 5
2011-12 2012-13 2013-14 Denim (Naroda) Woven & Knits (Santej) Garments (Bengaluru)
Denim (Naroda) Woven & Knits (Santej) 67 68 WASTE MANAGEMENT
THE ZLD TECHNOLOGY USED BY SALT RECOVERY ARVIND LIMITED RECYCLES Salt Recovery Process
THROUGH ZERO Physio-chemical treatment LIQUID DISCHARGE of the effluent to remove 98% 1 colour and suspended solids Our Santej unit is a Zero Liquid OF THE EFFLUENT GENERATED Discharge (ZLD) unit. In 1998, the unit AT THE SANTEJ PLANT. Biological treatment to remove organic invested in ZLD technology to set up an impurities like Biological Oxygen Demand Effluent Treatment Plant (ETP) with a Recycling of water limits the net withdrawal of fresh 2 (BOD) and Chemical Oxygen Demand capacity to treat 17,500 cubic meter water from bore wells to evaporation and consumption of textile effluent per day. Tertiary treatment to remove dissolved losses (about 20% of the total water demand). solids and colloids to make water fit for 3 reuse by Reverse Osmosis Plants Salt recovered by Mechanical Vapour Recompression Evaporation (MVRE), the chillers and the Multiple Effect 4 Evaporator (MEE) plant are re-used in dyeing
We have started salt recovery at one of the MVRE as of now, we plan to complete this in all four MVRE during next reporting period.
AT ARVIND, WE NOT ONLY RECOVER SALTS, WE ALSO RECYCLE THEM SO THAT THEY DO NOT BURDEN OUR NATION‘S LANDFILLS. RECOVERED SALTS ARE UPCYCLED AND REUSED IN THE DYING PROCESS.
69 70 Bacterial Treatment for Removal of Reactive Dye product In another breakthrough at our Caustic Recovery System responsibility Santej unit, our in-house research & development team developed a We use caustic recovery system to convert liquid effluent from the mercerisers to bacterial treatment technique for concentrated wash liquor and feed it back to the merceriser. removal of reactive dye. In this Our products are the tangible outcomes of our philosophy, processes, policies and practices. Product responsibility at Arvind begins technique a specialised facultative In the recovery system, caustic at a low concentration is heated to its boiling point with responsible sourcing of raw material and retains focus through the chain till the finished product. bacteria is used to remove dye with the help of steam and the vapours generated are separated from its solution. effluents. Water at room temperature is passed to cool the vapours. This generates a highly concentrated caustic solution which is reused as an input in the process. The by- Our product portfolio ranges from organic cotton to fabrics and finished garments; and from affordable homes to value-for-money product is uncontaminated hot water which is also recycled back into the system. retail chains. The key aspects of our product responsibility endeavours are:
The adoption of this system has led to a Responsible Research & Green MVRE 1 Contract Farming 2 Development 3 Product 4 Technology significant reduction of our environmental (BCI + Organic Cotton) Portfolio for ZLD footprint. It has also imparted additional INR 15 cost savings. RESPONSIBLE CONTRACT FARMING
India is the second largest producer of cotton in the world and accounts for about Along with cotton, Arvind Agribusiness 18% of the world cotton production. Yet, cotton cultivation is plagued with a host of also produces, procures and markets a issues such as rain-fed farms, landless farm labour, inaccessible finance mechanisms wide range of organic soybean and and widespread use of agro-chemicals that affect the top-soil and the groundwater. pulses.
With a vision to promote a vibrant rural economy that is driven by the sustainable The Round Table on growth of agriculture, the Group established a focused vertical - Arvind Agribusiness, Responsible Soy (RTRS) is an international RECYCLING INITIATIVES AT BENGALURU UNIT in 2007. The vertical is currently working with over 9,000 cotton farmers and advising and hand-holding them to enhance their farm productivity while reducing multi-stakeholder initiative that promotes sustainable their financial risks. These initiatives have been reported in great detail in the Cotton soy production, processing, We are implementing a number of innovative solutions to reduce waste at our Other initiatives at Bengaluru chapter of this report. trade and use. Bengaluru plant. One such initiative is manufacture of bricks from waste pumice plant include recycling fabric stone powder. waste (chindi), paper waste and plastic waste. Waste pumice stone powder bags are stacked and left for about 15 days in the AS ONE OF THE LARGEST RTRS CERTIFIED SOYBEAN PRODUCING sun to remove moisture. Once the powder has dried, it is sieved through a mesh Recyclable fabric waste is sold to to remove unwanted substances and then the powder is compacted into bricks. GROUPS IN INDIA, ARVIND WORKS WITH AROUND 8,000 FARMERS AND chindi recyclers through private We manufacture around 200 bricks per day. These bricks find application within agencies. PRODUCES MORE THAN 18,000 MT OF RTRS CERTIFIED SOYBEAN FOR our premises in landscaping and some civil works. CUSTOMERS IN INDIA, EUROPE AND USA. Paper and carton box waste is sold to paper recyclers through paper scrap dealers.
71 72 RESEARCH AND DEVELOPMENT GREEN PRODUCT PORTFOLIO
Responsible cultivation of cotton holds little meaning if it is not processed responsibly. Our decades of experience across the Arvind has a rich history of responding with products that cater to the need of the hour. With an urgent whole spectrum of textile production, coupled with passion for innovation, helps us find newer and better ways to manufacture world-class products. global need to combat environmental impacts and the rising demand for green fabrics, Arvind has developed a wide and diverse sustainable product portfolio. We have a long and illustrious history of undertaking in-house research and development activities at our Naroda and Santej units. Here are some achievements of our R&D team in recent years.
The use of liquid indigo at Naroda and Neo Dyeing is a sustainable dyeing Authentic Denim is hand spun, hand hank It is manufactured using a ground- Santej and caustic recovery at Naroda concept where there is no drainage of dyed in natural indigo and woven on the breaking technology that reduces has led to reduction in water and dye after or before dyeing for shade handloom. Authentic Denim sports all the water and energy consumption by up chemical consumption. SUSTAINABLE FABRIC adjustment. Our dyeing machine has a properties of natural denim like comfort, to 92% and 30% respectively, POST-CONSUMER closed loop system which releases softness, and natural ageing, while compared to traditional indigo dyeing FROM POST-CONSUMER P.E.T. WASTE zero discharge and is equipped with retaining the performance property of Introduction of functional finishes like method. Reduced water consumption USED P.E.T. AT THE integrated nitrogen technology. being warm in winter and cool in summer. 'Ultra fresh' and 'Stay smart' which use means minimized wastewater from various technologies at the Santej plant SANTEJ PLANT LEADS The result is a saturated dark blue Additionally, the natural indigo offers rinsing and hence, a more efficient way FIBER to explore new colours. to enhance the longevity of the shirt TO ENERGY SAVINGS CONVERSION shade that washes down gradually medicinal properties of being anti- and to decrease the maintenance and offers great contrast at every inflammatory, anti-fungal & anti-bacterial. required on them. AND REDUCTION IN level. The versatility of the fabric dyed with Neo Technology is very wide and WATER USAGE UP TO the garment makers can do more Linen Denim offers exceptional Development of infrastructure for comfort and has a cooling property SUSTAINABLE levels of washing. It is a unique, soft, light and feminine 'Airo Finish' and 'Dual core spinning' FABRIC in hot and moist weather. It has denim that brings a new level of technology at the Naroda plant which high natural lustre, durable and is gives denim products more stretch- 86% comfort, softness, finesse, and skin one of the few fabrics that remain friendliness. It is made from the ability and a better finish. strong even when wet. choicest selection of wood pulp, a The fabric is dyed through a multi-dip natural and renewable resource. Key rope dye process in pure vegetable features include high moisture indigo, the oldest dye known to man. It absorbency, fluidity and drape and Recycled coffee grounds are has an authentic wash down feel and higher wet stability. It also retains its transformed through a patented ages naturally. The dyeing process is freshness even after repeated wash. OUR CURRENT R&D FOCUS GOTS certified. process to form special fibres. The resulting denim is fast-drying and • Performance-based Technologies and Products eco-friendly. It also controls odour and provides UV protection. • Green Technologies
• Sustainable Fibres and Newer Finishes The recycled polyester based denim • Joint Development Programs with Supplier Firms range extends the lifecycle of Polyester, and prolongs the synthetic non-biodegradable fibre from clogging • Ongoing Implementation of the Higg Index 2.0 landfills and polluting air through incineration.
73 74 HIGG INDEX 2.0 reporting G3.1 Content Index
scope STANDARD DISCLOSURES PART I: Profile Disclosures Arvind is a member of the Sustainable Apparel Coalition (SAC), a premier group of sustainability leaders from global apparel and footwear This maiden sustainability report elucidates Profile Disclosure Level of Location of For partially reported Reason for Explanation for Disclosure reporting disclosure disclosures, indicate omission the reason for companies. An important focus of the SAC is the development, piloting our economic, social and environmental the part not reported omission and broad adoption of the Higg Index, a tool for measuring the performance to our stakeholders. It also Strategy and Analysis environmental and social performance of apparel products. describes our approach to sustainability, stakeholder engagement and an 1.1 Statement from the most senior decision-maker of Fully Notes from the the organization. CMD; 4 identification of the key sustainability The Higg Index 2.0, released in Dec. 2013 as 1.2 Description of key impacts, risks, and opportunities. Fully Sustainability & us; Facility issues material to our business. an update to Higg Index 1.0, is a set of 17-19 Organizational Profile indicator-based assessment tools that asks To report this performance, we have practice-based, qualitative questions to HIGG INDEX Brand adopted the Global Reporting Initiative 2.1 Name of the organization. Fully Arvind Limited gauge environmental sustainability 2.0 (GRI) G3.1 Guidelines. The GRI content 2.2 Primary brands, products, and/or services. Fully Group Profile; 5-9 performance and drive behaviour for index table at the end of this report shows 2.3 Operational structure of the organization, Fully Group Profile; improvement across three modules: the definition of each reported disclosure including main divisions, operating companies, 5-9 Product subsidiaries, and joint ventures. Facility, Brand, and Product. as well as its location within the report. 2.4 Location of organization's headquarters. Fully Arvind Limited, Naroda Road, The performance disclosures contained in We have adopted the Facility module of Higg Index and have Ahmedabad this report pertain to the financial year 2.5 Number of countries where the organization Fully One Country; India assessed our three biggest manufacturing units on their ending on March 31st, 2014. We are operates, and names of countries with either environmental parameters. The three units are scored across determined to report our triple bottom line major operations or that are specifically relevant to the sustainability issues covered in the report. 8 material areas viz. Environmental Management System, performance on regular basis. 2.6 Nature of ownership and legal form. Fully Corporate Energy & GHG, Water Use, Wastewater, Air Emission, Waste Governance; 11-12 Management and Chemical Management. 2.7 Markets served (including geographic breakdown, Partially 5 sectors served, and types of customers/ REPORTING BOUNDARY beneficiaries). Unit-wise Higg Index Scores Naroda Santej Bengaluru 2.8 Scale of the reporting organization. Fully 5-9, 38, 46 For all profile disclosures, economic 2.9 Significant changes during the reporting period Fully 7, 8 Overall Score 55 62 64 performance and employee indicators: regarding size, structure, or ownership. Arvind Limited. 2.10 Awards received in the reporting period. Fully 9
Report Parameters Deciphering the Scores Environmental performance data is limited to our 3 major manufacturing operations at 3.1 Reporting period (e.g., fiscal/calendar year) Fully Reporting Scope; The 100-point score card is bifurcated as follows: for information provided. 76 i. Naroda (Denims business) 3.2 Date of most recent previous report (if any). Fully Reporting Scope; 76 ii. Santej (Woven and Knits business) Level 1 3.3 Reporting cycle (annual, biennial, etc.) Fully Reporting Scope; 76 iii. Bengaluru-Mysuru Road Awareness, understanding & baseline performance - Maximum Points: 30 3.4 Contact point for questions regarding Fully Reporting Scope; (Garments business) the report or its contents. 76 Level 2 3.5 Process for defining report content. Fully Sustainability & Us; 15-19 Planning and management - Maximum Points: 30 The community section of the report 3.6 Boundary of the report (e.g., countries, divisions, Fully Reporting Scope; describes the CSR activities undertaken subsidiaries, leased facilities, joint ventures, 76 Level 3 by Strategic Help Alliance for Relief to suppliers). See GRI Boundary Protocol for further Implementing sustainability measures, demonstrating performance and Distressed Areas (SHARDA) Trust which guidance. progress - Maximum Points: 40 represent the CSR arm of the Company. 3.7 State any specific limitations on the scope or Fully Reporting Scope; boundary of the report (see completeness 76 principle for explanation of scope). No other entities, such as subsidiaries, 3.8 Basis for reporting on joint ventures, subsidiaries, Fully Reporting Scope; associates, joint ventures, vendors etc. leased facilities, outsourced operations, and 76 are within the reporting boundary. other entities that can significantly affect Enhancing Performance comparability from period to period This report details how we have embedded and/or between organizations. We aim to enhance our current score and for this, we have charted a sustainability as a core imperative in our 3.9 Data measurement techniques and the bases of Fully Sustainability & Us; roadmap that comprises calculations, including assumptions and 15-19 business through the goal of 'Fundamentally techniques underlying estimations applied to the • Formulating long-term targets on environmental strategy Right'. We request you to share your compilation of the Indicators and other information in the report. Explain any decisions valuable inputs so that we may accelerate not to apply, or to substantially diverge from, • Devising a strategy to work with suppliers on environmental impacts and strengthen our sustainability journey. the GRI Indicator Protocols. 3.10 Explanation of the effect of any re-statements of Fully First Sustainability • Use of STP water as a substitute to groundwater information provided in earlier reports, and the Report Please send your feedback to: reasons for such re-statement (e.g. mergers/ • Improving the chemical management system acquisitions, change of base years/periods, nature [email protected] of business, measurement methods). 75 76 Profile Disclosure Level of Location of For partially reported Reason for Explanation for Profile Disclosure Level of Location of For partially reported Reason for Explanation for Disclosure reporting disclosure disclosures, indicate omission the reason for Disclosure reporting disclosure disclosures, indicate omission the reason for the part not reported omission the part not reported omission
3.11 Significant changes from previous reporting Fully First Sustainability 4.16 Approaches to stakeholder engagement, Fully Stakeholder periods in the scope, boundary, or measurement Report including frequency of engagement by type Engagement; methods applied in the report. and by stakeholder group. 15, 16 3.12 Table identifying the location of the Standard Fully GRI Index; 77 4.17 Key topics and concerns that have been raised Fully Stakeholder Disclosures in the report. through stakeholder engagement, and how the Engagement; 3.13 Policy and current practice with regard to Fully This report has not organization has responded to those key topics 15, 16 seeking external assurance for the report. undergone any and concerns, including through its reporting. external assurance STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) Governance, Commitments, and Engagement G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be 4.1 Governance structure of the organization, including Fully Corporate DMAs reporting disclosure reported for reason for omission reported committees under the highest governance body Governance; 12 disclosures, omission in responsible for specific tasks, such as setting indicate the strategy or organizational oversight. part not 4.2 Indicate whether the Chair of the highest Fully Corporate reported governance body is also an executive officer. Governance; 12 DMA EC Disclosure on Management Approach EC 4.3 For organizations that have a unitary board Fully Corporate structure, state the number and gender of Governance; 12 Aspects Economic Performance Fully Money - members of the highest governance body that are Economic Value independent and/or non-executive members. Generated & 4.4 Mechanisms for shareholders and employees Fully Corporate Distributed; to provide recommendations or direction to Governance; 12 46, 47 48 the highest governance body. Market presence Fully Key Milestones; 4.5 Linkage between compensation for members of Not Does not We do not have 7-8 the highest governance body, senior managers, exist such procedures Indirect economic impacts Fully Management and executives (including departure in place as on Approach; 13-14 arrangements), and the organization's performance the reporting (including social and environmental performance). period. DMA EN Disclosure on Management Approach EN 4.6 Processes in place for the highest governance body Fully Corporate Aspects Materials Partially Management to ensure conflicts of interest are avoided. Governance; 12 Approach; 13-14 4.7 Process for determining the composition, Fully Corporate Energy Fully Management qualifications, and expertise of the members Governance; 12 Approach; 13-14 of the highest governance body and its committees, including any consideration of gender Water Fully Management and other indicators of diversity. Approach; 13-14 4.8 Internally developed statements of mission or Fully Group Profile; 5 Biodiversity Not Not values, codes of conduct, and principles relevant to Management applicable economic, environmental, and social performance Approach: 13-14 Emissions, effluents and waste Fully Management and the status of their implementation. Approach; 13-14 4.9 Procedures of the highest governance body for Fully Corporate Products and services Fully Management overseeing the organization's identification and Governance; Approach; 13-14 management of economic, environmental, and 11-12 social performance, including relevant risks and Compliance Fully Management opportunities, and adherence or compliance with Approach; 13-14 internationally agreed standards, codes of Transport Not Not Not monitoring transport 2016 conduct, and principles. available impacts currently 4.10 Processes for evaluating the highest governance Not Does not Overall Fully Management body's own performance, particularly with respect exist Approach; 13-14 to economic, environmental, and social performance. DMA LA Disclosure on Management Approach LA 4.11 Explanation of whether and how the precautionary Fully Management approach or principle is addressed by the Approach: Aspects Employment Fully Management organization. 13-14 Approach; 13-14 4.12 Externally developed economic, environmental, Fully Charters and Labor/management relations Fully Management and social charters, principles, or other initiatives Coalitions; 10 Approach; 13-14 to which the organization subscribes or endorses. Occupational health and safety Fully Management 4.13 Memberships in associations (such as industry Fully Charters and Approach; 13-14 associations) and/or national/international Coalitions; 10 Training and education Fully Management advocacy organizations in which the organization: Approach; 13-14 * Has positions in governance bodies; Diversity and equal opportunity Fully Management * Participates in projects or committees; Approach; 13-14 * Provides substantive funding beyond routine membership dues; or Equal remuneration for women Fully Management * Views membership as strategic. and men Approach; 13-14
4.14 List of stakeholder groups engaged Fully Stakeholder DMA HR Disclosure on Management Approach HR by the organization. Engagement; 15, 16 4.15 Basis for identification and selection of Fully Stakeholder Aspects Investment and procurement Not Not 2016 stakeholders with whom to engage. Engagement; 15, 16 practices available Non-discrimination Fully Management Approach; 13-14 77 78 G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be DMAs reporting disclosure reported for reason for omission reported DMAs reporting disclosure reported for reason for omission reported disclosures, omission in disclosures, omission in indicate the indicate the part not part not reported reported
Freedom of association and Fully Management EC6 Policy, practices, and proportion of spending Fully Money - Our collective bargaining Approach; 13-14 on locally-based suppliers at significant Performance; locations of operation. 47, 48 Child labor Fully Management Approach; 13-14 EC7 Procedures for local hiring and proportion Fully Money - Local of senior management hired from the local Procurement Prevention of forced and Fully Management community at significant locations of operation. & Hiring; 49 compulsory labor Approach; 13-14
Security practices Fully Management Indirect economic impacts Approach; 13-14 EC8 Development and impact of infrastructure Fully Society; Indigenous rights Not Not investments and services provided 40-41 applicable primarily for public benefit through Assessment Fully Management commercial, in-kind, or pro bono engagement. Approach; 13-14 EC9 Understanding and describing significant Not Not Does not exist 2016 Remediation Fully Management indirect economic impacts, including available Approach; 13-14 the extent of impacts.
DMA SO Disclosure on Management Approach SO Environmental Aspects Local communities Fully Management Materials Approach; 13-14 Corruption Fully Management EN1 Materials used by weight or volume. Partially Cotton; 22 Not This report only covers our 2016 Approach; 14 available major raw material which is Cotton. We would compile Public policy Fully Management and report on other Approach; 14 materials in future reports. Anti-competitive behavior Not Not EN2 Percentage of materials used that Not Not Need to establish 2016 applicable are recycled input materials. available accounting mechanisms to Compliance Fully Management identify and compile all Approach; 13-14 recycled materials.
DMA PR Disclosure on Management Approach PR Energy EN3 Direct energy consumption by Fully Energy-Total Aspects Customer health and safety Fully Management primary energy source. Direct Energy Approach; 13-14 Consumption; Product and service labelling Not Not We would work towards 53 available creating internal policies to EN4 Indirect energy consumption by Fully Energy-Total address the Product primary source. Indirect Energy Responsibility parameters. Consumption; Marketing communications Not Not 53 available EN5 Energy saved due to conservation Fully Energy - Specific Customer privacy Not Not and efficiency improvements. Electricity available Consumption; 53; Compliance Fully Management Energy - Energy Approach; 13-14 Conservation Initiatives; 56, 57 STANDARD DISCLOSURES PART III: Performance Indicators EN6 Initiatives to provide energy - efficient or Not Not renewable energy based products and applicable Economic services, and reductions in energy requirements as a result of these initiatives. Economic performance EN7 Initiatives to reduce indirect energy Not Not Information not captured in EC1 Direct economic value generated and Fully Money - consumption and reductions achieved. available the current system. distributed, including revenues, operating Economic Value costs, employee compensation, donations and Generated and Water other community investments, retained Distributed; earnings, and payments to capital 46 EN8 Total water withdrawal by source. Fully Water - Total providers and governments. Freshwater Consumption; 61 EC2 Financial implications and other risks and Not Not Does not exist 2016 opportunities for the organization's activities available EN9 Water sources significantly affected Fully We use either due to climate change. by withdrawal of water. ground water or recycled water. EC3 Coverage of the organization's defined Not Not Does not exist So water source benefit plan obligations. available affected by EC4 Significant financial assistance received Fully Money; 46 withdrawal is from government. ground water. EN10 Percentage and total volume of Fully Water - Total Market presence water recycled and reused. treated and reused in the EC5 Range of ratios of standard entry level wage Not Not Does not exist 2016 process; 61 by gender compared to local minimum wage available at significant locations of operation.
79 80 G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be DMAs reporting disclosure reported for reason for omission reported DMAs reporting disclosure reported for reason for omission reported disclosures, omission in disclosures, omission in indicate the indicate the part not part not reported reported
Biodiversity Transport
EN11 Location and size of land owned, leased, Not Not EN29 Significant environmental impacts of Not Not We do not monitor this 2017 managed in, or adjacent to, protected areas applicable transporting products and other goods and available indicator presently. and areas of high biodiversity value outside materials used for the organization's operations, protected areas. and transporting members of the EN12 Description of significant impacts of activities, Not Not workforce. products, and services on biodiversity in applicable protected areas and areas of high biodiversity Overall value outside protected areas. EN30 Total environmental protection Not Not We do not monitor this 2017 EN13 Habitats protected or restored. Not Not expenditures and investments by type. available indicator presently. applicable EN14 Strategies, current actions, and future plans Not Not Social: Labor Practices and Decent Work for managing impacts on biodiversity. applicable Employment EN15 Number of IUCN Red List species and national Not Not conservation list species with habitats applicable LA1 Total workforce by employment type, Fully People - in areas affected by operations, by level employment contract, and region, broken Employee of extinction risk. down by gender. Snapshot; 38 LA2 Total number and rate of new employee Fully People - Emissions, effluents and waste hires and employee turnover by age group, Employee gender, and region. Snapshot; 38 EN16 Total direct and indirect greenhouse Fully Energy - Total gas emissions by weight. GHG Emissions, LA3 Benefits provided to full-time employees Not Not This indicator is 2016 Specific that are not provided to temporary or available presently not monitored Emissions; 55 part-time employees, by major operations. EN17 Other relevant indirect greenhouse Not Not Currently we do not have LA15 Return to work and retention rates Not Not This indicator is gas emissions by weight. available systems in place to monitor after parental leave, by gender. available presently not monitored indirect emissions. Labor/management relations EN18 Initiatives to reduce greenhouse gas Fully Energy - Energy emissions and reductions achieved. Conservation LA4 Percentage of employees covered by Fully All employees Initiatives; 56, 57 collective bargaining agreements. covered by EN19 Emissions of ozone-depleting Not Not Currently we do not have collective substances by weight. available systems in place for bargaining continuous monitoring of air agreements. emissions. LA5 Minimum notice period(s) regarding Fully Goverened EN20 NOx, SOx, and other significant air Not significant operational changes, by collective emissions by type and weight. including whether it is specified in agreements as collective agreements. per the location. EN21 Total water discharge by quality and Fully Water - Effluent destination. Management; 61 Occupational health and safety
EN22 Total weight of waste by type and Fully Waste LA6 Percentage of total workforce represented Not Not This indicator is 2016 disposal method. Generation; 68 in formal joint management-worker health available presently not monitored EN23 Total number and volume of Not No significant Not and safety committees that help monitor significant spills. spills applicable and advise on occupational health and safety programs. EN24 Weight of transported, imported, exported, Not Not or treated waste deemed hazardous under applicable LA7 Rates of injury, occupational diseases, lost Fully People - the terms of the Basel Convention Annex I, II, days, and absenteeism, and number of work- Safety; 38 III, and VIII, and percentage of transported related fatalities by region and by gender. waste shipped internationally. LA8 Education, training, counseling, prevention, Fully People - EN25 Identity, size, protected status, and biodiversity Not Not and risk-control programs in place to assist Industrial value of water bodies and related habitats applicable workforce members, their families, or Relations; 36, 37 significantly affected by the reporting community members regarding organization's discharges of water and runoff. serious diseases. LA9 Health and safety topics covered in Fully Health and Products and services formal agreements with trade safety topics are unions. covered in the EN26 Initiatives to mitigate environmental Fully Green Product formal impacts of products and services, Portfolio, agreements with and extent of impact mitigation. 74 trade unions. EN27 Percentage of products sold and their Not Not This indicator is packaging materials that are available presently not Training and education reclaimed by category. monitored LA10 Average hours of training per year Fully People - Compliance per employee by gender, and by Employee employee category. Wellbeing; EN28 Monetary value of significant fines and total Fully No such instance 34, 35, 36 number of non-monetary sanctions for of fines and non-compliance with environmental laws sanctions during LA11 Programs for skills management and lifelong Not Not Such programs are not and regulations. the reporting learning that support the continued available in place presently. period. employability of employees and assist them in managing career endings. 81 82 G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be DMAs reporting disclosure reported for reason for omission reported DMAs reporting disclosure reported for reason for omission reported disclosures, omission in disclosures, omission in indicate the indicate the part not part not reported reported
LA12 Percentage of employees receiving Fully All employees Prevention of forced and compulsory labor regular performance and career in management HR7 Operations and significant suppliers identified Partially We have strict We have not development reviews, by gender. grade receive as having significant risk for incidents of policy against identified annual forced or compulsory labor, and measures to forced and such performance contribute to the elimination of all forms of bonded labour suppliers and career forced or compulsory labor. at all our currently. development operations. reviews. Security practices Diversity and equal opportunity
LA13 Composition of governance bodies and Fully Corporate HR8 Percentage of security personnel trained in Not Not We do not conduct breakdown of employees per employee Governance, the organization's policies or procedures available training of Human category according to gender, age group, 11-12 concerning aspects of human rights that are Rights presently. minority group membership, and other relevant to operations. indicators of diversity. Indigenous rights
Equal remuneration for women and men HR9 Total number of incidents of violations Not Not involving rights of indigenous people applicable LA14 Ratio of basic salary and remuneration of Not Not This indicator is and actions taken. women to men by employee category, available presently not by significant locations of operation. monitored Assessment
Social: Human Rights HR10 Percentage and total number of Fully We have not operations that have been subject to carried out Investment and procurement practices human rights reviews and/or impact impact assessments. assessment of HR1 Percentage and total number of significant Fully Human Rights human rights at investment agreements and contracts that aspects are not our operations. include clauses incorporating human rights covered in the concerns, or that have undergone significant Remediation human rights screening. investment contracts. HR11 Number of grievances related to human rights Fully No such cases HR2 Percentage of significant suppliers, contractors Fully We have not filed, addressed and resolved through reported during and other business partners that have screened any of formal grievance mechanisms. the reporting undergone human rights screening, our suppliers period. and actions taken. and contractors for human rights. Social: Society HR3 Total hours of employee training on policies Fully We have not Local communities and procedures concerning aspects of human identified rights that are relevant to operations, human rights SO1 Percentage of operations with implemented Fully Society; including the percentage of employees that are local community engagement, impact 40, 41 trained. relevant to our assessments, and development programs. operations. SO9 Operations with significant potential or actual Partially Society; negative impacts on local communities. 40, 41 Non-discrimination SO10 Prevention and mitigation measures Not Not This indicator is presently HR4 Total number of incidents of discrimination Fully Human implemented in operations with significant available not monitored and corrective actions taken. Rights; 38 potential or actual negative impacts on local communities. Freedom of association and collective bargaining Corruption HR5 Operations and significant suppliers identified Partially Right to exercise We have not in which the right to exercise freedom of freedom of identified SO2 Percentage and total number of Fully All our business association and collective bargaining may be association is such business units analyzed for risks units have violated or at significant risk, and not being suppliers related to corruption. carried out risk actions taken to support these rights. violated at currently. assessment any of our with respect operations to corruption. SO3 Percentage of employees trained in Fully We do not have Child labor organization's anti-corruption any formal HR6 Operations and significant suppliers identified Partially We have strictly We have not policies and procedures. training programs as having significant risk for incidents of enforced child identified of anti-corruption child labor, and measures taken to contribute labour policy at such policies as of to the effective abolition of child labor. all our suppliers now. operations. currently. SO4 Actions taken in response to Fully No incidents incidents of corruption. of corruption reported during the reporting period.
83 84 G3.1 Disclosure Level of Location of For partially Reason Explanation for the To be DMAs reporting disclosure reported for reason for omission reported Acronyms disclosures, omission in indicate the part not reported BCI Better Cotton Initiative
Public policy BOD Biological Oxygen Demand BWSSB Bengaluru Water Supply and Sewerage Board SO5 Public policy positions and participation Not Not Information pending 2016 in public policy development and lobbying. available CCD Code of Corporate Disclosures SO6 Total value of financial and in-kind Not Not Information pending 2016 contributions to political parties, politicians, available CEA Central Electricity Authority and related institutions by country. CMD Chairman & Managing Director
Anti-competitive behavior CNG Compressed Natural Gas
SO7 Total number of legal actions for anti- Not Not Does not exist 2016 CoC Code of Conduct competitive behavior, anti-trust, and monopoly available practices and their outcomes. CPIT Code for Prevention of Insider Trading
Compliance CSR Corporate Social Responsibility
SO8 Monetary value of significant fines and total Not Not Information pending 2016 DMA Disclosures on Management Approach number of non-monetary sanctions for available ECGC Export Credit Guarantee Corporation of India non-compliance with laws and regulations. ETP Effluent Treatment Plant Social: Product Responsibility GHG Greenhouse Gas Customer health and safety GOTS Global Organic Textile Standard PR1 Life cycle stages in which health and safety Not Not This indicator is 2017 impacts of products and services are assessed available presently not GRI Global Reporting Initiative for improvement, and percentage of monitored significant products and services HA Hectare categories subject to such procedure. INR Indian Rupee PR2 Total number of incidents of non-compliance Fully No such with regulations and voluntary codes incidents ISO International Organization for Standardization concerning health and safety impacts of during the products and services during their reporting JOCA Japan Organic Cotton Association life cycle, by type of outcomes. period. JV Joint Venture
Product and service labelling KPCB Karnataka Pollution Control Board
PR3 Type of product and service information Not Not LG Learning Groups required by procedures, and percentage of applicable significant products and services subject to MDP Manager Development Programme such information requirements. MEE Multiple Effect Evaporator PR4 Total number of incidents of non-compliance Not Not with regulations and voluntary codes applicable MIS Management Information System concerning product and service information and labeling, by type of outcomes. MSDS Material Safety Data Sheets PR5 Practices related to customer satisfaction, Not Not No surveys carried out 2017 MVRE Mechanical Vapour Recompression Evaporation including results of surveys measuring available during reporting period customer satisfaction. NIFT National Institute of Fashion Technology
Marketing communications OTA Organic Trade Association
PR6 Programs for adherence to laws, standards, Not 71 Not This indicator is 2017 RO Reverse Osmosis and voluntary codes related to marketing available presently not RTRS Round Table on Responsible Soy communications, including advertising, monitored promotion, and sponsorship. SAC Sustainable Apparel Coalition PR7 Total number of incidents of non-compliance Fully No such with regulations and voluntary codes incidents SAI Social Accountability International concerning marketing communications, during the SASB Sustainability Accounting Standards Board including advertising, promotion, reporting and sponsorship by type of outcomes. period. SHARDA Strategic Help Alliance for Relief to Distressed Areas
Customer privacy SHG Self Help Groups
PR8 Total number of substantiated complaints Fully No such TEXPROCIL Cotton Textiles Export Promotion Council of India regarding breaches of customer privacy incidents and losses of customer data. during the TJ Terajoule reporting period. TLA Textile Labour Organisation Compliance UK United Kingdom PR9 Monetary value of significant fines for Fully No such non-compliance with laws and regulations incidents UNCHS United Nations Centre for Human Settlements concerning the provision and use of during the ZLD Zero Liquid Discharge products and services. reporting period. 85 N a
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