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.