Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Bleak performance in the first quarter due to COVID-19 shutdown.
• Raw material crisis restricting the ability to service schedules.
• Subdued vehicle demand impacting the Fine Blanking Division.
• COVID-19 pandemic affecting the Stamping Division.
• Increased competition in the Appliances Division.
• Significant commodity price increases and increased duties in the Appliances Division.
• Supply chain stresses, especially in electronic components, remaining high.
• Significant increase in commodity prices.
• COVID-19 related supply chain issues impacting the Microwave Ovens segment.
• Partial lockdown affecting IFB Points sales in the Kitchen Appliances segment.

Mitigation Strategies

• Favorable product mix, price hike, reduction in material cost, scheme cost and overheads in the Appliances Division.
• Increased focus on localization to counter currency fluctuations.
• Localization of electronic controllers for import substitution.
• Price increases in washers and air conditioners to offset price increases.
• Enhanced marketing thrust to garner additional revenue from existing customers and increase revenue from the non-auto segment.
• Projects to drop material costs in the Appliances Division.
• Initiatives to improve placement of products and manage multiple channels effectively.
• Projects to reduce material costs in manufacturing.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• New generation of electronic components for models manufactured in India.
• Water-less technology for washing laundry.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Unprecedented rise in material cost
• Escalation in scheme cost
• Supply chain issues
• Impact of Covid-19 pandemic
• Market slowdown
• Significant increase in steel prices
• Commodity price increases
• Shortage of semiconductors
• Rising cost of fuel
• Supply chain pressure on commodity pricing

Mitigation Strategies

• Cost control
• Reduction in avoidable manpower
• Localization of electronic controllers
• Price increases
• Projects to drop material costs
• Strategy to deal with changing demands of the domestic market
• Developed business from new segments
• Products targeted for the emerging Electrical vehicle space
• Plants adopted TPM
• Focus on localizing manufacturing within India

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Washing machines with 5-star energy ratings
• Air conditioners with energy ratings
• Xeros technology enabled washer extractors

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Conservation
• Waste Management
• Health and Safety
• Diversity and Inclusion
• Sustainable Product Development
• Circular Economy
• Responsible Business Conduct

Environmental Achievements

• Implemented measures to maintain power factor in excess of 0.97 to reduce reactive power losses.
• Replaced high energy illumination with lower power consuming LED lights.
• Goa factories operating majorly with solar energy (~35-40% of demand).
• Paint shop shifted to LPG led burners, eliminating diesel usage.
• Localization of electronic controllers, substituting imports.
• Development of products reducing environmental footprint (e.g., Xeros technology, steam usage).

Social Achievements

• Implemented various measures for employee health and safety, diversity and inclusion.
• Provided safety and skill upgradation training to employees and workers.
• Plants certified with ISO 45001:2018 standard.
• Established safety committee.

Governance Achievements

• Complied with Corporate Governance requirements as stipulated in SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Established a robust internal grievance handling procedure for employees and workers.
• Implemented a Vigil Mechanism Policy for Directors and employees.

Climate Goals & Targets

Environmental Challenges

• Higher material costs.
• Increased employee costs.
• Lower than planned sales volume.
• Supply chain pressure on commodity pricing.
• Indian Rupee under pressure.
• Increasing competition.
• Pricing pressure from customers and competitors.
• Consistent increase in power cost.
• Rapid increase in minimum wages.
• High cost for new machinery and technology.
• Timely raw material availability and pricing.
• Fluctuations in demand forecasting by the automobile sector.
• Supply chain disruptions.
• Regulatory risk.
• Attrition of employees.

Mitigation Strategies

• Initiated action to reduce material cost and control fixed overhead.
• Restructured sales geographies and sales manning.
• Focus on localization of high-cost imports.
• Focus on differentiating through a value-led product range.
• Implemented TPM to ensure operational excellence.
• Cost reduction production to reduce fixed overheads.
• Specific, geography-by-geography plan for marketing and selling ACs.
• Investment in brand building.
• Focused effort in building the team for institutional/SSD verticals.

Supply Chain Management

Responsible Procurement

• Supplier partners adhere to environmental and social standards mandated by the Government of India.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting physical assets

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Mitigation of climate risk
• Reduction of GHG emissions
• Savings in electricity costs
• Development of energy-efficient products

Sustainable Products & Innovation

• Washing machines with 5-star energy rating
• Washers that save water
• Energy appliances
• Smart washing machines and smart ACs with AI capabilities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Water Scarcity
• Sustainable Product Development
• Circular Economy and Waste Management
• Diversity and Inclusion

Environmental Achievements

• Utilized 3836 MWh electrical units generated by solar panel systems installed at Goa factories
• Utilized 12260.74 MWh electrical units generated from solar energy & Wind Energy at Malur factory (86% renewable energy)
• Reduced baking temperature requirement from 210°C to 190°C in AC plant, reducing fuel consumption by ~10%
• Installed variable frequency drive covering 90% of machineries and equipments, saving on power consumption
• Goa factories implemented press automation, saving a minimum of 10% energy consumption per component
• Implemented Xeros Technology in commercial washer extractors, reducing water, chemicals, and electricity consumption and increasing fabric life

Social Achievements

• Implemented safety and skill upgradation training for employees and workers
• Plants are ISO 45001:2018 standard certified
• Established safety committees
• Provided health insurance, accident insurance, maternity benefits, and paternity benefits to employees and workers
• Implemented robust internal grievance handling procedures for employees and workers
• Ongoing focus on greater representation of women at all levels of the workforce

Governance Achievements

• Established a Vigil Mechanism for directors and employees
• Adopted a Code of Conduct for all Board members and employees
• Adopted the Code of Conduct for Prevention of Insider Trading and the Code of Conduct for Corporate Disclosure Practices
• Implemented a robust internal grievance handling procedures for employees and workers

Climate Goals & Targets

Environmental Challenges

• Strong pricing pressure from customers & competitors
• Consistent increase in power cost
• Rapid increase in minimum wages
• High cost for new machinery & technology
• Timely raw material availability and pricing
• Fluctuations in demand forecasting by the automobile sector
• Occasional Supply chain disruptions
• Regulatory Risk
• Attrition of employees
• Evolving nature of compliances prescribed by the Government
• Indian Rupee under pressure
• Delayed implementation of new projects
• Depressed market conditions
• Losses in AC segment
• Supply chain pressure on commodity pricing

Mitigation Strategies

• Implemented measures to maintain the power factor above 0.97 to reduce reactive power losses
• All lighting in offices covered by auto-shut off motion sensors
• Street lights and HVAC controlled by timer-based switching
• Idle time cutoff implemented in all machines
• Shifted usage from LPG led burners to PNG based burners in Goa paint shop
• Initiated actions to reduce material cost and control fixed overhead by reduction of avoidable manpower, automation etc.
• Focus on localization for many of the high-cost imports
• Restructured sales geographies and sales manning
• Implemented TPM to ensure operational excellence
• Pursuing non-auto business
• Increased focus on EV and EV neutral segments
• Actively seeking M&A opportunities
• Developing premium end models with BLDC technology, AI featured, triple wash mechanisms, exclusive ioniser feature for removal of bad odours, etc.

Supply Chain Management

Responsible Procurement

• Supplier partners adhere to environmental and social standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather impacting physical assets

Transition Risks

• Regulatory changes, market shifts to low carbon economy

Opportunities

• Mitigation of climate risk, reduction of GHG emissions, savings in electricity costs
• Development of energy-efficient products

Reporting Standards

Frameworks Used: NGRBC

Certifications: ISO 45001:2018, ISO 14001:2015, IATF 16949:2016, ISO 9001:2015

Sustainable Products & Innovation

• Water-efficient washing machines
• Energy-efficient appliances
• Washer Dryer Refreshers

Awards & Recognition

• Not disclosed