Morarjee Textiles Limited

Climate Impact & Sustainability Data (2017-2018, 2022-2023)

Total Energy Consumption:646.78 lakhs Kwhs

Optimization of compressed air consumption
Installation of VFD’s for H-Plant fans for saving in energy consumption.
Replacement of rewound motors with energy efficient motors
Steps taken to increase condensate recovery and Cooling water from Process machines and thereby resulted reduction in Water intake from MIDC and also improved Boiler efficiency.
During annual open inspection of 14 TPH Coal Fired Boiler, secondary Coal fired Boiler is run instead of Oil fired Boiler and resulted savings and carbon footprints.

Employment opportunities were provided to 85 families through various livelihood interventions like making of reusable sanitary napkins, reusable cloth bags, hand made papers and village tourism, thereby reducing the dependency on the forest and in the process contributing to the whole effort of conservation.

A formal evaluation of Board’s performance and that of its Committees and individual directors had been done. The evaluation process was externally facilitated and conducted by M/s. hrcraft, a professional business consulting firm specialized in feedback exercises engaged for carrying out evaluation process in a fair and transparent manner.

Higher interest and depreciation
Dealing with volatility, uncertainty and shifts in the global economy; Competition from online and Omni channel; Value chain improvement and digitalization; Decreasing foot traffic and offline retailing pressure.
Strong rupee and operational uncertainties/difficulties caused by rollout of the Goods and Services Tax (GST)
Lack of clarity on duty drawback benefits till late September, 2017 led to problems in pricing future shipments.
The government reduced duty drawback benefits from 7.5% to 2%, effective October 2017, which continued to impact exporters till the end of the year.

Morarjee has consistently invested funds in its manufacturing plants to bring them in line with the latest technology.
Procurement of raw cotton at right price remains crucial. The Company covers its cotton requirements from time to time through the domestic and international markets. The Company also seeks out alternative cotton varieties and blends to increase its raw material basket. Thus this enables an in built risk mitigation for cotton price fluctuation.
The company specialises in producing the best quality cotton fabrics, which are at par with the highest global quality standards and has created a niche positioning with products which cater to high-end customers. The company also produces high quality printed cotton fabric for the African market.
The government has revised Merchandise Exports from India Scheme rates for readymade garments increased from 2-4% from November 1, 2017, to June 30, 2018, which will improve the pricing competitiveness in future shipments.

Frameworks Used: Ind AS

Third-party Assurance: Haribhakti & Co. LLP

Shortage in supply of raw materials
Increase in the cost of raw materials
Environmental problems
Infrastructure bottlenecks
Impact of GST
Shortage of labourers due to a mass return
The decline in Apparel export
Strike at Nagpur Plant due to pending revision of long term wage agreement
Continuous delays and defaults in repayment of debt obligations leading to classification of Company’s debt as non performing by the lenders
Some of the lenders creditors have served notice for recall / taken legal recourse against the Company

Procurement of raw cotton at right price through domestic and international markets
Seeking out alternative cotton varieties and blends
Producing high-quality cotton fabrics
Producing high-quality printed cotton fabric
Consistently investing funds in its manufacturing plant to bring them in line with the latest technology
Discussions with lenders and creditors to amicably resolve the matter
Discussions with the Workers to amicably resolve the strike