Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Power
• Safety
• Employee Wellbeing
• Research and Development

Environmental Achievements

• Commissioned an 800 KW windmill in September 2009 at Pushpathur in Tamil Nadu.
• Installed a 20 KW rooftop solar PV unit in March 2011 at the registered office in Hyderabad.
• Setup a 250 KW solar plant at its factory in Peddakandukuru. Green initiatives resulted in net carbon-positive manufacturing and operations.

Social Achievements

• Completed wage negotiation with unions and revised wages for three years ending March 31, 2016.
• Cordial management-employee relations.
• Employee training for better performance.
• Entered into an agreement with Helpage India for providing medical care to the aged population in villages surrounding the factory.

Governance Achievements

• Established a whistleblower policy.
• Complied with mandatory requirements of Clause 49 of the Listing Agreement.
• Appointed a CSR Committee and formulated a CSR Policy.

Climate Goals & Targets

Environmental Challenges

• Slowing demand, increasing costs, fluctuating currencies, expensive borrowings, and weak investment sentiments in the global economy.
• Unfavorable conditions in the mining and infrastructure sectors in India.
• Low demand for detonators due to prolonged monsoon and new regulations regarding Ammonium Nitrate.
• Accident at Sriharikota stores resulting in stock damage.

Mitigation Strategies

• Expanded market in key pockets in India and overseas.
• Solved technical issues in NHN detonator production.
• Renewed marketing efforts to increase sales.
• Received Rs.102 lakhs from insurance company to cover most of the losses from the Sriharikota accident.
• Developed alternative sourcing strategies and inventory planning to mitigate raw material risks.
• Implemented price escalation clauses in bulk explosives supplies.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• NHN detonators (safer and greener alternative to ASA)

Awards & Recognition

• Inc. India Innovative 100 Award (2013)
• Defence Technology Absorption Award by DRDO (2007)
• Industry appreciation award from National Science & Technology Laboratory (NSTL) (2004)
• Best R&D Effort Award from AIMO (2004)
• Appreciation from DRDO (2011, 2010, 2008)
• Certificate of Export Recognition by Chemicals & Allied Products Export Promotion Council (2005)
• Best Technology Development Award from FAPCCI (2004-2007)
• Best industrial relations award from Labour Department, Govt of AP (2004-2007)
• Best Greenery development award from AP Pollution Council (2008)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility (CSR)

Environmental Achievements

• Developed safer and greener detonators using NHN as a primer instead of conventional ASA.

Social Achievements

• Engaged Helpage India to provide healthcare to elderly people in villages near Peddakandukuru factory, resulting in 14306 treatments for 1142 families.
• Other CSR activities included scholarships, school support, and donations to the Army Central Welfare Fund and Prime Minister's Relief Fund.

Governance Achievements

• Striving to meet requirements of the new Companies Act and SEBI regulations.
• Established a Whistle Blower policy.

Climate Goals & Targets

Environmental Challenges

• Low demand for detonators due to extended monsoon and unhealthy competition.
• Decreased margins in commercial explosives business.
• Time and cost overruns in capital projects.
• Raw material price risks (Ammonium nitrate and fuel oil).
• Safety risks in handling raw materials and finished goods.

Mitigation Strategies

• Diversifying product portfolio by developing new products and exploring new markets.
• In-house design of equipment to mitigate project risks.
• Conservative approach of lower dependence on borrowings.
• Developed an alternative chemical compound as primary explosive in detonator production (safer than traditional counterpart).
• Price escalation clauses in supply contracts.
• Strict adherence to mandatory safety measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Safer and greener detonators using NHN

Awards & Recognition

• Asia Pacific Entrepreneurship Award (Dr. A.N. Gupta)

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Social Achievements

• Mobile Medicare Unit (MMU) conducted health services for elderly and needy people; financially supported various Health, Education and Defence organisations.

Governance Achievements

• Company has established necessary internal financial controls and got them assessed by professionals; implemented AS 9100 C for defence / aero products.

Climate Goals & Targets

Environmental Challenges

• Major clients in the mining sector faced challenges related to coal price and operational cost escalations; competition among commercial explosive players impacted bottom line; longer than expected realisation of sales proceeds from defence entities led to higher finance cost on working capital.

Mitigation Strategies

• Exploring new markets including export markets; focusing on defence products; redefining marketing strategies for mining products; reduction of manpower through Voluntary Retirement Scheme or redeploying them at Greenfield project.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Certifications: ISO 9000

Third-party Assurance: Majeti & Co Chartered Accountants

Sustainable Products & Innovation

• safer and greener NHN detonators

Awards & Recognition

• Asia Pacific Entrepreneurship Award 2015

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Healthcare
• Employee wellbeing
• Safety

Social Achievements

• Spent ` 39.90 lakhs on CSR activities, supporting HelpAge’s Mobile Healthcare program, providing healthcare solutions to destitute elders; supported education and training of physically and mentally challenged children; contributed to Hemophilia Federation India; contributed to Bhagwan Mahavir Jain Relief Foundation for affordable dialysis services.

Governance Achievements

• Company has established necessary internal financial controls and got them assessed by professionals; implemented AS 9100 C for defence/aero products; formulated an anti-harassment policy and set up an Internal Complaint Committee.

Climate Goals & Targets

Environmental Challenges

• Long delays in receipt of defence orders; intensive competition in the commercial explosives industry; raw material price risks (Ammonium nitrate and fuel oil); safety risks in production and handling of high-risk items.

Mitigation Strategies

• Developed in-house design of equipment for capital projects; exploring new markets including export markets; developed alternative chemical compound for detonators; implemented price escalation clauses in supply contracts; strict adherence to mandatory safety measures; implementing AS 9100 C for defence/aero products.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• SME-Empowering India Awards 2019

Environmental Metrics

ESG Focus Areas

• Healthcare
• Education
• Women Empowerment
• Environmental Sustainability
• Safety

Environmental Achievements

• Developed safer and greener NHN detonators replacing ASA detonators

Social Achievements

• Supported HelpAge’s Mobile Healthcare Program, providing healthcare solutions to elders in Telangana (₹22.50 lakhs spent)
• Provided financial assistance to Hemophilia Foundation of India (₹5 lakhs)
• Provided computers to schools, stipends to Vidya Volunteers, and scholarships to students in Yadagirigutta mandal (₹1.54 lakhs)
• Worked with Society for Aged and Women and Yadadri Vision Social Services for women empowerment and safety

Governance Achievements

• Established a Whistle Blower policy
• Formulated an anti-harassment policy and set up an Internal Complaint Committee

Climate Goals & Targets

Environmental Challenges

• Longer monsoon
• Cut-throat market competition (withdrew from a major tender)
• Postponement of defence deliveries
• COVID-19 lockdown impact on production and deliveries
• Lower turnover and inability to absorb fixed costs
• Longer than expected completion time for Katepally Greenfield project
• Availability of hardware from customers for order execution

Mitigation Strategies

• Implemented strict safety guidelines (sanitization, physical distancing, PPE)
• Focus on defence explosives business for improved profitability
• Complete qualification trials at Katepally plant and generate revenue
• Increasing business share in thermal insulation and Ammonium Perchlorate
• Voluntary retirement scheme (VRS) to reduce manpower cost
• Closely working with customers to overcome hardware availability bottleneck
• Exploring new markets including export markets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Safer and greener NHN detonators

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Social Achievements

• Mobile Medical Unit (MMU) provided 1623 treatments in 33 health camps and 22366 treatments overall; 4973 people participated in 114 awareness camps; 138 new beneficiaries added; CSR expenditure of ₹15.68 lakhs

Governance Achievements

• Compliance with Corporate Governance requirements as per Companies Act, 2013, SEBI Listing Regulations, and other applicable laws; established Whistle Blower policy; formulated an anti-harassment policy

Climate Goals & Targets

Environmental Challenges

• Lower demand from defence and commercial customers; unremunerative prices from SMS; lower construction/quarrying activities; continuous impact of COVID-19; availability of hardware (metal parts) from customers/outsourced subcontractors; eight RFPs cancelled by the Ministry of Defence

Mitigation Strategies

• Focus on Defence products to maximize margins; expenditure cut down; commercial production commenced at Katepally facility; working with customers/subcontractors to overcome hardware availability bottleneck; three-pronged strategy to return to profit; strategic partnerships with industry leaders in hardware and electronics; exploring new markets including export markets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility

Social Achievements

• Continued support for HelpAge’s Mobile Healthcare Program, providing healthcare to elderly in Telangana. Organized 56 Mobile Medical Unit (MMU) treatment camps and 42 health awareness camps.
• Provided scholarships to students in five villages near Peddakandukur.

Governance Achievements

• Compliance with Corporate Governance requirements as per the Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable laws.

Climate Goals & Targets

Environmental Challenges

• Unexpected delays in clearance of deliveries in the defense segment.
• Lower demand for GI wire from detonator manufacturers (Premier Wire Products Limited).

Mitigation Strategies

• Focusing on increasing exports by developing new customers and higher volumes with existing customers.
• Stabilizing operations in the bulk explosives division.
• Premier Wire Products Limited sold major property, plant and equipment, dismantled building, terminated all employees, and intimated closure of factory.

Supply Chain Management

Climate-Related Risks & Opportunities