Sustainability Report 2018-19

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Sustainability Report 2018-19 Eicher Motors Limited Sustainability Report 2018-19 PASSION WITH RESPONSIBILITY Eicher Motors Limited Registered Office 3rd Floor-Select Citywalk, A-3 District Centre, Saket, New Delhi - 110 017 Tel: +91-124-444 5070 www.eichermotors.com CONTENTS MEssagE fROM ChiEf OpERating OffiCER Dear Stakeholders, I AM DELIGHTED TO SHARE WITH YOU EICHER MOTOR LIMITED’S (EML) FIRST SUSTAINABILITY REPORt ‘PASSION WITH RESPONSIBILIty’. FINANCIAL YEAR 2018-19 HAS BEEN VERY EXCITING FOR US AS WE ACHIEVED OUR HIGHEST EVER REVENUE AND PROFITS IN THE YEAR. Message from Chief 102-14 Operating officer 01 Water management 34 Our strong risk management framework enabled us to withstand working towards aligning even more closely with the SDGs in the the challenges posed by regulatory changes like implementation coming years. of Anti-lock Braking System, and I am sure we will stand firm for Key highlights throughout Material and waste the upcoming regulations as well. I wish to take this opportunity to thank all stakeholders for placing the value chain 02 management 36 their trust and faith in our company. We strive to continuously We are further expanding our third manufacturing plant at Vallam deliver value to our stakeholders in spheres of engagement with Disclosure number Vadagal, near Chennai, India, to cater to the projected increase them. We hope to further strengthen our communication with our in GRI Index in demand of our motorcycles. We are also building a technical stakeholders in coming years. About us Compliance 04 37 centre at Chennai to enhance our technical strength. We have added 90 new dealerships in India this year, taking the total I look forward to your valuable feedback on this report. Our alignment to to 915 exclusive stores. This gives us a strong presence and a Go-to page for Sustainable Development Investing in human B Govindarajan more details competitive edge in the market. Goals (SDGs) 14 capital 38 Chief Operating Officer We work very hard to keep our environmental impact minimal and all our operational practices are geared up towards this vision. Strengthening stakeholder Recruitment and attrition of Various initiatives are undertaken at our facilities to reduce our engagement 16 employees 40 energy consumption in line with the Government of India’s target of reducing energy intensity by 33-35% of GDP by 2030. We have recently upgraded our equipment and processes to optimize use Occupational of electricity, resulting in increase in energy intensity marginally Creating economic value 24 health & safety 42 despite an addition of new facility and increased production. All plants of EML have a closed-loop water recycling design that Our performance ensures zero discharge of wastewater. Up to 90% of recycled (EML Standalone) Upskilling employees 25 43 water is used in our processes within the factories. 85% of the materials used in our motorcycles can be recycled at the end of Diversity & non- life. We engage closely with our suppliers to take them forward Economic value discrimination at the on our sustainability journey and create awareness about the distributed 26 workplace 44 environmental related aspects in the supplier assessment to motivate them towards adopting environmental initiatives within Environmental Caring for their systems as well. stewardship 28 communities 46 Employees are our strength and we invest in employee engagement, upskilling and motivation to create a cadre of focused and driven professionals that work collectively to achieve corporate goals. Diversity within the workforce is one of our fortes. Energy management GRI index 29 50 The percentage of women in the plants has been increasing by 10% year-on-year for the last three years. In addition to this, there are over 200 women contributing to other business areas such as marketing, sales, service, etc. GHG emissions 34 At EML, we are also committed to support the implementation of the Sustainable Development Goals (SDGs) and have mapped our approach to relevant SDGs in this report. We hope to continue KEy highLights thROughOut thE vaLuE Chain Design Procurement Production Sales and Distribution End of Life Stages Major Impacts Key Statistics SDG Alignment Innovation in products and processes R&D Investment : INR 310.28 crores Brand reputation and value Vehicle safety and quality Raw material consumption Health and safety of workers Design Environmental impact Indirect employment in third-party Local Procurement : 98.1% which amounts to operations INR 4,959 crores Working conditions for third-party employees Indirect environmental impact and Procurement natural resource consumption Direct employment 9,00,000 units of installed production capacity per annum Employee safety and working Total employees : 14,568 conditions Energy intensity : 0.66 Employee development through Water intensity : 0.36 training Fuel efficiency increased by 80% Environmental impact and natural GHG emissions reduced by 45% resource consumption from direct 100% of manufacturing units have a closed loop system to operations recycle effluent to water for processes Production Zero fatality at manufacturing units Customer satisfaction and loyalty Revenue : INR 9,794 crores Brand reputation and value Highest ever sales figure achieved : 8,23,828 Relationship with distributors 91% market share in India’s mid-size (250-750 cc) motorcycles segment 915 stores across India Sales and Distribution Environmental impacts of vehicle 85% of recyclable materials used in manufacturing process from waste generation, dismantling, 90% of recycled water used in manufacturing process recycling, disposal management 100% waste paint from process is sent to the cement and remanufacturing industry for safe disposal End of life 02 Eicher Motors Limited Sustainability Report 2018-19 03 abOut us In 2008, we entered into a strategic joint venture with the SHAREHOLDING PATTERN Volvo Group, named-VE Commercial Vehicles Limited (VECV) IN VECV (%) to manufacture commercial vehicles including light-medium duty truck, heavy duty trucks and buses in India. We also have fully owned subsidiaries in USA (Royal Enfield North America Ltd), Canada (Royal Enfield Canada Ltd.), Brazil (Royal Enfield Brasil Comércio de Motocicletas Ltda), Thailand (Royal Enfield 54.4 Thailand Ltd.) and UK (Royal Enfield UK Ltd.) Eicher Motors Limited Being a public listed company, our company is listed on BSE Limited and National Stock Exchange of India Limited. 45.6 We understand that business sustainability can be achieved Volvo Group only when economic development is well-balanced with environmental and social development. We adopt a proactive approach when it comes to sustainability. Our overarching objective is holistic and balanced growth that creates value for all our stakeholders. 102-1, 102-2, 102-5 EICHER MOTORS LIMITED (‘EML’) IS THE FLAGSHIP COMPANY OF THE EICHER GROUP. THE EICHER GROUP PRODUCED INDIa’S FIRST AGRICULTURAL TRACTOR IN 1959 AND WAS A CATALYST IN INDIa’S GREEN REVOLUTION. TODAY, WE ARE A LEADING AUTOMOBILE COMPANY AND HOLD A PLACE OF PRIDE IN THE PREMIUM MOTORCYCLE SEGMENT IN INDIA. WE OWN THE ICONIC ROYAL ENFIELD MOTORCYCLES, THE OLDEST MOTORCYCLE IN CONTINUOUS PRODUCTION WORLDWIDE SINCE ITS LAUNCH IN 1901. 04 Eicher Motors Limited Sustainability Report 2018-19 05 ABOUT US pROduCt pORtfOLiO HIMALAYAN The Himalayan is Royal Enfield’s first ever completely ground- up motorcycle, built to provide the purest motorcycling experience in the Himalayas. A grounded stance, terrain tested suspension, dual purpose tyres combined with agile handling THE INTERCEPTOR 650 make for the perfect ride both on and off the road as it readily The Interceptor INT 650 is the quintessential roadster with complies with the terrain it traverses. It is powered by LS410 its distinctive teardrop tank with traditional knee recesses, single cylinder, 4-stroke, a strong low-end torque to clear and wide, braced handlebars redolent of the street scrambler obstacles and wide useable power to suit a variety of terrains style that emerged in ‘60s California. Its comfortable and and conditions. The Himalayan is built on a duplex split cradle commanding riding position make the Interceptor INT 650 both frame and has low seat height, upright handlebars and foot fun and practical on all types of terrain, from curving coastal pegs work in perfect sync to unite the rider with the motorcycle roads to the urban jungle, for heading out of town two-up or for for a comfortable upright posture. The inherent mounting cruising down to the beach. points in the front and back let you strap up and set off anytime, while the LCD instrument cluster keeps track of miles to maintenance. Definitely worth the wait. The Himalayan is the much-anticipated harbinger of adventure touring in India. THUNDERBIRD CLASSIC Royal Enfield Thunderbird, India’s most definitive highway The Classic retains the quintessential classic British cruiser is designed to enhance the pleasure of leisure styling of the 1950’s; simple, harmonious, proportioned motorcycling amongst the touring enthusiasts. Available and finished. Available in 350cc and 500cc displacement in 350cc and 500cc engines, equipped with a 20-litre fuel and clothed in a disarmingly appealing post war styling, tank, LED ring endowed headlamp and tail lamps, the bike this promises to be the most coveted Royal Enfield in is every rider’s ideal mate for comfort cruising on a long, history, for those who want it all. The power, the fuel endless highway. A separately mounted removable pillion efficiency, the reliability and simple, yet drop dead seat built to accommodate luggage, high rise handlebars gorgeous classic styling. The Classic turns heads not ergonomically designed for optimal reach, forward placed because it wants to but because it can’t help it. You will foot pegs and a low seat height are enablers in making the appreciate the beat not just for the music it creates but Thunderbird a “touring friendly” motorcycle. With touring also for the muted feeling of strength and power that it enthusiasts forming the core of Royal Enfield’s customer signifies. The view is simply better when you are astride base, the Thunderbird gives them more power, comfort a Royal Enfield Classic 500 – whether moving or still.
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