Climate Change Data

Hindcon Chemicals Limited

Climate Impact & Sustainability Data (2017-04 to 2018-03, 2018-04 to 2019-03, 2019-20, 2020-04 to 2021-03, 2021-22, 2023-04 to 2024-03)

Reporting Period: 2017-04 to 2018-03

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Utilizes natural resources in a sustainable way
  • Maintained ISO 9001:2015 certification from UKAS Management Systems
  • Received an ISO 22716:2007 certificate for Manufacturing & Dispatch of Sodium Silicate and Cement Additive (Construction Chemicals)

Social Achievements

  • Industrial relation during the year 2017-18 had been cordial
  • Strengthened the goal setting and measurement process during the year to retain good talent

Governance Achievements

  • Complied with the requirements of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • Adopted the Code of Conduct for prevention of Insider Trading
  • Adopted the code of practices and procedures for fair disclosure of Un-published Price Sensitive Information and formulated the code of conduct of the Company
  • Has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Climate Goals & Targets

Short-term Goals:
  • Increasing the production to achieve at least 18000 MT of Sodium Silicates and Construction Chemicals in the financial year 2018-19

Environmental Challenges

  • High working capital requirements
  • Dependence on availability of skilled and unskilled labour
  • Government policy changes, taxation, social and civil unrest and other political, economic or other developments in or affecting India
Mitigation Strategies
  • Conserving financial resources to meet working capital requirements
  • Strengthening goal setting and measurement process to retain talent
  • De-risking strategy in its operations while making growth investments

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

ESG Focus Areas

  • Environment-friendly products
  • Governance
  • Stakeholder engagement

Environmental Achievements

  • Manufactured green products certified by Indian Green Building Council (IGBC)

Social Achievements

  • Maintained cordial industrial relations
  • No complaints filed regarding sexual harassment

Governance Achievements

  • Complied with SEBI (LODR) Regulations, 2015
  • Implemented a Code of Conduct for Prevention of Insider Trading
  • Established a Whistle Blower Policy

Climate Goals & Targets

Long-term Goals:
  • Become a pan-India player
  • Expand presence globally to Sri Lanka and the Middle East
Medium-term Goals:
  • Turn Hindcon into a 100 crore (INR) company within five years
  • Increase distributor strength to 200 in the next five years
  • Improve capacity utilization to 90% over the next five years
Short-term Goals:
  • Increase revenues to 60 crores (INR) in FY 2019-20
  • Increase retail exposure from ~3% of revenues to 15%.

Environmental Challenges

  • Development of new products in a dynamic marketplace
  • Low retail awareness of construction chemicals in India
  • Creating a robust logistics network
Mitigation Strategies
  • Deployed a dedicated R&D team
  • Highlighted the benefits and applications of construction chemicals
  • Focused on identifying and engaging with experienced distributors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9001:2015, ISO 22716:2007

Certifications: ISO 9001:2015, ISO 22716:2007

Sustainable Products & Innovation

  • Green products certified by IGBC

Reporting Period: 2019-20

Environmental Metrics

ESG Focus Areas

  • environment-friendly products
  • infrastructure quality
  • asset health
  • low maintenance costs
  • eco-friendly construction

Environmental Achievements

  • Member of Indian Green Building Council, emphasising the manufacture of environment-friendly products

Social Achievements

  • grew its B2C business 62% during the year under review, owing to the increasing demand from residential spaces
  • grew its job work segment 2x following the addition of new clients and a substantial increase in orders

Governance Achievements

  • All members of the Board of Directors and senior management personnel affirmed compliance with the Company’s Code of Conduct policy on an annual basis.

Climate Goals & Targets

Short-term Goals:
  • cost rationalisation
  • leverage existing institutional relationships
  • protect the integrity of the Balance Sheet
  • widen its geographic footprint
  • stronger brand promotion
  • deeper distribution presence
  • generate revenues from retail customers 10fold across the next five years

Environmental Challenges

  • economic slowdown
  • construction sector slowed
  • home offtake declined
  • COVID-19 pandemic
  • partial operations at the plant till 17th May, 2020
  • extremely severe cyclonic storm ‘Amphan’
Mitigation Strategies
  • cost rationalisation
  • leverage existing institutional relationships
  • protect the integrity of the Balance Sheet
  • stronger brand promotion
  • deeper distribution presence
  • focus on expanding its footprint across newer geographies and roping in new B2B clients
  • longstanding relationships with retailers
  • wide range of products
  • innovative products that can be used in other sectors as well
  • diversified its product portfolio
  • fully insured against cyclone damage

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • erratic climatic patterns
Opportunities
  • widening the market for construction chemicals

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

ESG Focus Areas

  • environment-friendly products
  • quality control and management processes

Social Achievements

  • Member of Indian Green Building Council, emphasising the manufacture of environment-friendly products

Governance Achievements

  • ISO 9001:2015, ISO 22716:2007 and BIS 9103 and BIS 2645 certifications

Climate Goals & Targets

Environmental Challenges

  • demand destruction caused by the lockdown due to the COVID-19 pandemic
  • pandemic restrictions on manufacturing volumes
Mitigation Strategies
  • activated its networks and supply even during the lockdown
  • leveraged its understanding of market realities to source products and supply to customers
  • launched new products developed in its research pipeline

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • National Award – 2010

Reporting Period: 2021-22

Environmental Metrics

ESG Focus Areas

  • Green products
  • Business sustainability
  • Environmental-friendly construction chemicals

Environmental Achievements

  • Introduction of six ‘green’ construction chemicals
  • 1.64% of revenues from ‘green’ chemicals in FY22
  • Certified for ‘green products’

Social Achievements

  • Increased job working from ₹34.51 lakhs to ₹82.84 lakhs
  • Increased B2C business by 39% during FY 2021-22
  • Cordial industrial relations

Governance Achievements

  • Adoption of Code of Conduct and business principles for all Board members, senior management and employees
  • Compliance with SEBI (LODR) Regulations, 2015
  • Established a Vigil Mechanism Policy

Climate Goals & Targets

Medium-term Goals:
  • Grow revenue 10-fold in the next 5 years
  • Broaden portfolio by adding 5-10 new products annually for the next 5 years
Short-term Goals:
  • Substantially increase the share of retail trade

Environmental Challenges

  • Unexpected pandemic-induced interruptions
  • Slowdown in the fourth quarter due to inflation and the Russia-Ukraine war
  • Decline in the availability of shipping containers and high freight costs
  • Increased competition and inflation
  • 20% increase in raw material costs
Mitigation Strategies
  • Protected its supply chain to meet customer needs
  • Passed costs to consumers and absorbed some costs to protect profitability
  • Launched new products
  • Enhanced volume sales by 4.98%
  • Proactive inventory stocking in anticipation of price increases

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Intense and frequent micro-climate changes
  • Cloudbursts and flooding
Opportunities
  • Growing demand for environment-friendly inputs in construction
  • Commitment to ‘smart’ buildings

Sustainable Products & Innovation

  • Six ‘green’ construction chemicals

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

ESG Focus Areas

  • Environmental Health and Safety (HSE)
  • Corporate Social Responsibility (CSR)

Environmental Achievements

  • Implemented rainwater harvesting systems.
  • Conducted green belt development activities.
  • Initiated water recycling efforts.
  • Installed dust collector vans.
  • Discontinued bore well water usage.

Social Achievements

  • CSR activities focused on education, healthcare, hunger and poverty eradication, and women empowerment.
  • Spent ₹12.38 Lacs on CSR activities.

Governance Achievements

  • Appointment of Ms. Divyaa Newatia as an Independent Director.
  • Re-appointment of Ms. Anushka Gupta as Statutory Auditor.

Climate Goals & Targets

Medium-term Goals:
  • Increase retail revenue contribution by 10 times over the next 5 years.
  • Expand product portfolio by adding 5 to 10 new products each year for the next 5 years.
Short-term Goals:
  • Increase PCE manufacturing capacity from 125 TPM to 350 TPM.

Environmental Challenges

  • Lower demand for construction chemicals.
  • Discontinuation of sodium silicate sales to a multinational customer.
  • Construction slowdown.
  • Extreme heatwave.
  • Impact of an election year.
Mitigation Strategies
  • Aggressive marketing strategy (appointing sales engineers and area sales managers).
  • Backward integration (commissioning a new PCE plant).
  • Focus on waterproofing chemicals and niche import substitution products.
  • Widening distribution footprint.
  • Job working for other manufacturers.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (heavy rain, floods, heatwaves, cyclones).