Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Severe slowdown in the automotive segment.
• Closure of plants in March 2020 due to COVID-19 lockdown.
• Impact of COVID-19 on sales and profitability.
• Liquidity crisis, banking/NBFC frauds, fear of higher NPAs, falling interest rates, and volatile stock market conditions.

Mitigation Strategies

• Implementing various cost control measures.
• Focusing on Railway/Tractor business.
• Extending support to suppliers and channel partners.
• Cost rationalization measures to improve operational efficiency and profitability.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Brake Blocks
• Brake Linings
• Clutch facings

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Installation of high density thermal insulation for reduction of heat loss in presses and ovens. Installation of protection relays in motor control circuit for controlling over current. Installation of VFD control in higher capacity electric motor. Supply voltage on LT side reduced from 440V to desirable 415 V. Phasewise installation of LED Lighting replacing old fittings. Replacement of old roofing sheets with polycarbonate transparent sheets for better use of day light. Machine layout / regrouping of machines for better use of dust collection and material handling. Phasewise replacement of low efficient air conditioners with five star energy efficient units.

Social Achievements

• Long-term settlement with workmen at Bhandara Plant for a period of 3 years effective from August, 2020. Contribution of ₹70 Lakhs to the PM CARES fund towards CSR obligations.
• Not disclosed

Governance Achievements

• Constitution of a Risk Management Committee effective from 26 May, 2021. Adoption of a revised Risk Management Policy and a Risk Management Committee Charter.
• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic and resultant lockdown impacting manufacturing operations and sales in the first quarter. Tepid consumer sentiment and disrupted supply chain affecting the automotive industry's recovery. Sharp rise in the cost of metals, petroleum based products, rubber and other raw materials. Weakening of the Indian Rupee by 5% during the fiscal year.
• Depressed market conditions impacting the joint venture Compo Advics Private Limited.

Mitigation Strategies

• Cost rationalisation initiatives. Growing share of value-added products. Improved quality through R&D efforts. Better work efficiency. Conservative approach towards investment. Initiatives to enlarge dealers network, introduce new references and implement cost reduction measures in the joint venture.
• Forward booking of materials, inventory management and vendor development practices to manage raw material price fluctuations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing procedures followed during vendor evaluation and for suppliers as per audit plan and procedure. Technical and financial support provided to MSMEs to improve their capability and capacity.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: IATF-16949-2016

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Development of new grade of CV liners, Disc Pad for railway application, high performance Random Woven Clutch Facing, improved clutch buttons, Disc pad for CV application

Awards & Recognition

• Gold Award from Ashok Leyland for Best Performance in Business Alignment in Supplier Summit 2021