Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved zero waste to landfill and zero effluent discharge targets while moderating water consumption intensity in its operations
• Installed 2.717 MWp rooftop solar power plant
• Manufactured polyester fibre utilizing PET waste with almost 97% capacity utilization

Social Achievements

• Invested in continuous cost management and sustainability across market cycles
• Made investments in recruitment, retention and training to enhance efficiency and effectiveness
• Enhanced safety (training, protocols, investments and awareness-building)
• Engaged with the community around its manufacturing locations
• Made relevant interventions in the areas of natural resource protection, environmental resilience, education equity and healthcare fortification in line with United Nations’ Sustainable Development Goals

Governance Achievements

• Strong one-tier Board system with Board of Directors who possess a disciplined orientation
• Board comprises around 56% Independent Directors
• Formulated a ‘Code of Conduct’, setting out guidelines to be followed by the Board, senior management, employees and associates

Climate Goals & Targets

Environmental Challenges

• Resurgence of the pandemic in FY2021-22 resulted in poor sales of fabric and garments
• Surge in the international cotton prices reflected in the domestic prices as well
• Increase in logistics costs that could not be completely passed on to customers
• Decline in shipping container availability
• Cyber security issues emerged with increasing dependence on IT platforms during the pandemic

Mitigation Strategies

• Added fabric exporters to its clientele
• Focused on the production of PC mélange-blended yarns
• Leveraged long-standing relationships to exercise a cost-plus formula
• Counter the challenge of a decline in shipping container availability with proactive planning
• Embarked on measures to create a cyber-safe remote-working environment

Supply Chain Management

Responsible Procurement

• Procuring goods from local vendors
• Using sustainable fibres

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Recycled Polyester Staple Fibre (RPSF)
• 100% Ecovero Melange yarn
• 100% Organic Cotton melange yarn
• 100% organic yarn
• 100% BCI Yarn
• yarn made from recycled polyester

Awards & Recognition

• Gold Trophy: Best Export Performance Synthetic & Rayon Dyed Yarn 2020-21
• Fourth Best Overall Export Performance SRTEPC Special Award 2020-21
• Gold Trophy: Highest Exports of Cotton Processed Yarn in 2019-20
• Gold Trophy: Special Achievement Award in Export of Cotton Yarn 2019-20
• Rajasthan Energy Conservation Award - 2021, First Prize

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Commissioned 120 tonnes per day green fibre manufacturing capacity by recycling PET bottles.
• Recycled around 4.80 million PET bottles per day on average in FY 2022-23.
• Recycled fibre made up almost 29% of the overall inputs procured by the Company (by value).
• Energy savings of around Rs. 211.36 lakhs were achieved with energy conservation measures.
• Installed a 2.2 MW rooftop solar power plant.

Social Achievements

• Reduced work-related incidents by 21.21%.
• Rs. 8.40 crore invested in various technologies to improve the environmental and social impact of the manufacturing process.
• Human rights assessments conducted at all manufacturing units.
• Various CSR projects implemented in education, sports, rural development, healthcare and sanitation.

Governance Achievements

• Independent assessments of environmental metrics.
• Fire and electrical safety audit conducted through external agencies.
• Company abides by the National Guidelines for Business Conduct.

Climate Goals & Targets

Environmental Challenges

• Weakening global textiles market due to inventory liquidation and price erosion.
• Increased competition from small players in the home textiles business.
• Global demand decline affecting home textile revenues.
• Volatility in raw material prices (polyester, cotton, and viscose).
• Subdued demand from September 2022 to March 2023 due to the Russia-Ukraine war and economic conditions in Europe and the US.

Mitigation Strategies

• Deepened customer engagements, highlighting supply chain stability.
• Enhanced frequency of sales dispatches to moderate customer working capital outlay.
• Adopted a flexible pricing approach to sustain offtake.
• Entered developed countries with high entry barriers (UK and North America).
• Engaged with international design consultants to ascertain market shifts.
• Changed product mix, introduced new territories, categories, and customers.
• Added more than 30 new customers in the synthetic yarn business.
• Introduced the stretch yarn business segment.
• Optimized manufacturing costs and improved operational efficiency to protect margins and maximize sales.

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of inputs (28.87% recycled fibre)

Climate-Related Risks & Opportunities

Opportunities

• Greenhouse Gas Emissions & Energy Management

Reporting Standards

Frameworks Used: National Guidelines on Responsible Business Conduct

Certifications: SA8000: 2014, ISO 45001:2018, ISO 9001, ISO 14001:2015, OEKO-TEX® Standard 100, GOTS-IN, OCS-IN, BCI

Sustainable Products & Innovation

• Green fibre from recycled PET bottles

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Operated green fibre unit at 100% capacity, recycling 42,029 MT of used PET bottles.
• Reduced waste sent for disposal to 3.2% of total waste generated (20,248 MT).
• Recycled 18 lakh kilolitres of water.

Social Achievements

• Increased skill development training from 44% to 83%.
• Increased human rights training coverage for employees from 51% to 72%.
• Achieved ISO 45001:2018 certification for four of five manufacturing facilities.
• Conducted regular health camps and provided nutritious meals in factory canteens.

Governance Achievements

• Formalized ESG structure overseen by the CSR Committee.
• Maintained A+ long-term and A1+ short-term credit ratings.
• Repaid Rs. 203 crore in debt.

Climate Goals & Targets

Environmental Challenges

• Decline in offtake and realizations due to weak global textile sector momentum.
• Increased input costs, high inflation, geopolitical uncertainty, and rising interest rates.
• Reduced consumer discretionary spending and increased competition from China.
• Red Sea crisis impacting freight rates and shipping times.

Mitigation Strategies

• Deepened commitment to understand customer needs and manufacture niche complex yarns.
• Enhanced working capital efficiency (reduced finished goods inventory by 50% in two quarters).
• Broad-based product mix across apparel and non-apparel applications.
• Accelerated development of yarns with higher recycled fibre content.
• Deferred sizable capital expenditure and conserved cash.

Supply Chain Management

Responsible Procurement

• Sustainable sourcing practices (36.25% of inputs sustainably sourced).

Climate-Related Risks & Opportunities

Opportunities

• Energy efficiency improvements and renewable energy adoption.

Reporting Standards

Frameworks Used: GRI, NGRBC

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, OEKO-TEX Standard 100, GOTS, OCS-IN, GRS, RCS, FSC, SA8000

Sustainable Products & Innovation

• Yarns with higher recycled fibre content
• Green fibre production from recycled PET bottles

Awards & Recognition

• Gold Trophies for Highest Exports of Processed Yarns (TEXPROCIL)
• Gold Trophy for Best Export Performance in Synthetic & Rayon Dyed Yarns (SRTEPC)