Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduced water and energy consumption
• Recycled wastewater
• Introduced LED lighting across all manufacturing units
• Replaced oil and other fuel in boilers with organic biomass briquettes
• Upgraded sewing machines to reduce energy consumption
• Upgraded laundry machines with low water and chemical consumption
• Installed variable frequency drives in compressors to reduce energy consumption
• Installed a Zero Liquid Discharge system in its washing unit (700 KLD), ensuring 94% water recycling and reuse
• Streamlined solid waste disposal, with most solid waste being sent for recycling
• Recycled used oil
• Best-in-industry standing on Higg FEM 3

Social Achievements

• Employs more than 20,000 women (around 90% of the workforce)
• Implemented awareness programs related to menstrual hygiene, pregnancy, safe sex, and contraception
• Implemented sanitary napkin vending machines across all factories
• Launched a ‘Personal enhancement and career advancement’ program providing women employees training in financial management and livelihood skill development
• Launched a program to enhance awareness on the prevention of sexual harassment at the workplace and established an Internal Complaints Committee
• Implemented Sakhi program to enhance friendships at work, hand-holding new employees through the induction process
• Reduced attrition among women employees
• Instituted a quarterly communication program between management and employees
• Allocated a budget for workplace celebrations in every manufacturing unit
• Established an employee feedback system
• Distributed clothes and relief materials to flood-affected Belgavi district
• Manufactured and distributed face masks and PPEs to communities surrounding manufacturing units and to employee family members during the pandemic
• Provided a 24X7 ambulance service

Governance Achievements

• Reinforced its commitment to environment responsibility
• Strengthened product and resource traceability and documentation
• Added 10 marquee customers in 30 months
• Reduced net debt by H35 crores in 2019-20
• More than quadrupled cash and equivalents
• Increased revenues by 17% in FY20
• Strengthened EBIDTA margin (MEIS-adjusted) from 5.5% to 8.3%
• Increased ROCE by 109 bps to 10.3%
• Reduced working capital cycle to 84 days

Climate Goals & Targets

Environmental Challenges

• Withdrawal of MEIS benefits (4% of export turnover)
• 10% minimum wage increase in Karnataka
• COVID-19 pandemic (cancelled/deferred orders, delayed payments, factory closure)
• Supply chain disruptions due to lockdown in China
• Closure of retail stores in EU and US
• Pressure on working capital
• Pressure on financial resources
• Declining liquidity in global markets

Mitigation Strategies

• Absorbed over H20 crores due to wage increase
• Paid workers full salary in March 2020
• Leveraged new opportunities in healthcare garments by pioneering PPE production
• Partnered with DRDO in developing and producing high-quality woven PPEs
• Initiated structural corrections by aligning to market demand
• Reduced operating expenses
• Tightened cash management by deferring capex
• Renegotiated supplier terms
• Secured extra lines of credit for contingency
• Expanded customer engagements and added new customers
• Engaged with adjacent brands in existing customer portfolio
• Strengthened marketing team
• Invested in design and development
• Expanded product suite to include autumn/winter products
• Recruited top talent with diverse and international experience
• Engaged industrial engineers, expanded design team
• Intensified training across functions
• Created a Central Industrial Engineering and Process Improvement team
• Introduced extensive digitalisation
• Invested H41 crores in capital expenditure

Supply Chain Management

Responsible Procurement

• Periodic third party audits of chemical consumption
• Enrollment of all factories in the Higg FEM 3 standard

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Net Zero emissions by 2045
• Water Positive by 2030
• Zero Solid Waste to Landfill by 2030
• Women's Empowerment
• Community Development

Environmental Achievements

• Reduced water consumption by 20% compared to the previous year
• 80% of waste recycled or repurposed
• 81% of energy mix from renewable sources (solar and biomass)
• Tripled solar energy capacity from FY23

Social Achievements

• RISE programme implemented across 13 units, providing comprehensive training for employees
• Women Empowerment & Leadership Development Program (WE-LEAD) launched
• Over 29,600 employees underwent training (2.65 lakh person-hours)
• More than 8,500 female workers graduated from skill upgradation programs
• CSR initiatives invested approximately ₹2.35 crores, enriching 30,000+ lives

Governance Achievements

• Enhanced risk management practices implemented
• Regular audits of sustainability initiatives conducted
• Expanded stakeholder engagement efforts

Climate Goals & Targets

Environmental Challenges

• Global economic challenges and industry-wide transformations
• Global apparel industry faced headwinds with reduced demand due to inventory destocking
• Cost pressures from increased statutory minimum wages and start-up costs for new units
• Currency volatility
• Regulatory landscape changes
• European market access challenges
• Input cost fluctuations
• Fashion trend agility
• Customer concentration
• Supply chain disruptions
• Market anticipation

Mitigation Strategies

• Robust hedging strategies
• Diversify currency exposure
• Continuously monitor global economic trends
• Maintain open dialogue with policymakers
• Diversify market presence
• Enhance operational efficiency
• Focus on product differentiation and quality
• Explore strategic partnerships in EU countries
• Advocate for favourable trade agreements
• Implement dynamic pricing models
• Strengthen supplier relationships
• Invest in automation
• Enhance design capabilities and market intelligence
• Implement agile manufacturing processes
• Collaborate closely with customers on trend forecasting
• Diversify customer base
• Invest in customer relationship management
• Maintain excellence in quality and delivery
• Develop a robust supplier ecosystem
• Implement advanced inventory management systems
• Explore near-shoring opportunities
• Invest in market research and trend analysis tools
• Foster a culture of innovation
• Maintain flexibility in production capabilities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Customer-nominated suppliers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• G2 Ozone and E-Flow machines
• Pad printing and screen-printing machines