Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved energy efficiency in drying and liquid milk packaging plants
• Implemented green technologies and received awards for environmental management
• Initiatives for green areas and water harvesting around industrial establishments

Social Achievements

• Established education and medical foundations, including schools and a university
• Implemented various social initiatives like 'Parivartan', 'Natal care', and adult literacy programs
• Organized mobile clinics and medical camps for needy people

Governance Achievements

• Compliance with Clause 49 of the Listing Agreement
• Established a Code of Governance
• Held regular board and committee meetings

Climate Goals & Targets

Environmental Challenges

• Increasing pressure on land resources for fodder cultivation
• Motivating farmers to increase the number of high-yielding milch animals
• Unhygienic facilities at breeding, rearing, and milking stages

Mitigation Strategies

• Using high-yielding fodder cultivation techniques
• Motivating and educating farmers
• Improving hygienic facilities through government initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Chairman's People Management Award
• Awards for green tech, safety, and environment management

Environmental Metrics

ESG Focus Areas

• People Management
• CSR
• Energy Conservation
• Food Safety

Environmental Achievements

• Implemented energy conservation recommendations from plant energy audit
• Spent Rs. 1.17 Lac on R&D during the year (focus not specified)

Social Achievements

• Received Chairman’s People Management Award for highest betterment in People management related issues amongst all JK Group Companies - 2nd year in succession.
• Women literacy programme
• Tree plantation
• Creating awareness for water conservation
• Free health check-up camps for employees and milk farmers
• Ek Kadam – Sahayta Ka
• Scholarship Scheme for employees’ children
• Vaccination

Governance Achievements

• Compliance with Clause 49 of the Listing Agreement
• Established a Code of Corporate Ethics and Conduct
• Held four Board Meetings and four Audit Committee meetings during the year.

Climate Goals & Targets

Environmental Challenges

• Lower production of milk in North India and consequently lesser availability of raw milk, leading to increased milk cost.
• Inability to fully pass on increased milk cost in selling price of end products.
• Lower capacity utilization of Drying Plant (38.23%) due to lesser milk availability.

Mitigation Strategies

• Maintained production levels despite lower raw milk availability.
• Increased volumes in export of Skimmed Milk Powder.
• Launched new products ('Doodz' and 'JK Milk') to improve profitability.
• Increased focus on promotion and advertisement of new products.
• Long-term plan to become a significant player in the dairy industry.
• Plans to expand geographically and develop new products.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Doodz Flavoured Milk
• JK Milk (poly pouched liquid milk)

Awards & Recognition

• Chairman’s People Management Award (2 years in a row)
• Process Innovation Leader National Level (Mother Dairy)
• Best PGI Award North Region PPM (Mother Dairy)
• First Runner up National Level Champion PPM Growth (Mother Dairy)

Environmental Metrics

ESG Focus Areas

• Animal Welfare
• Community Development
• Environmental Sustainability
• Employee Well-being

Environmental Achievements

• Installed Vapour Absorption Machine to save electrical energy (2372500 KWH annually)
• CIP Modification of Packaging Machine and VMST saved 16060 KWH
• Replacement of pumps saved 408435 KWH annually
• Water Recycling Project saved 45168 KWH
• Planted 500 trees on World Environment Day

Social Achievements

• Opened five Adult Education Centers, 157 women successfully completed training
• Distributed 100 solar lamps to girl students
• Organized veterinary health camps for over 830 animals
• Vaccination camps for over 1430 animals
• Healthcare camps provided medical care and medicines to close to 300 people
• Blood donation camp with over 32 people donating blood
• Awareness camps on sanitation and hygiene

Governance Achievements

• Framed Corporate Social Responsibility (CSR) Policy
• Appointed Secretarial Auditor
• Appointed Cost Auditors for 2015-16
• Regular internal and external audits to review internal control system

Climate Goals & Targets

Environmental Challenges

• Erratic and poor power supply
• Apathy of young farmers towards dairy farming
• Traceability issues with importers from USA and EU
• High-handedness of food inspectors and lack of adequate testing equipment

Mitigation Strategies

• Started work on own power generation plant
• Developing mechanized dairy farms
• Developing large-scale farm houses to improve traceability
• Advocating for a pragmatic approach from the government

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Milk Shake
• Water Beverages
• Rabri

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased turbine power generation by 20% with the same steam consumption.
• Replaced conventional lights with LEDs, saving 1.76 lakh Kwh units per annum.
• Installed VFD at chiller compressor, saving approximately 16,000 Kwh per annum.
• Installed chilled water diffusers, saving 70,000 Kwh/annum.
• Reduced high-pressure steam consumption, optimizing steam utilization (saved 20-25 TPH steam per day).
• ETP expansion from 1000 KLPD to 1750 KLPD to meet CPCB norms and Zero discharge.

Social Achievements

• Formed 562 Dairy Interest Groups (DIGs) comprising 5664 women and 30 men.
• Linked 376 DIGs to banks.
• Provided training to DIG members on group formation, bookkeeping, and credit linkage.
• Provided revolving fund of Rs 15000 per DIG to 52 DIGs from NABARD.
• Provided unsecured loans of Rs. 35.40 Lakhs to DIGs.
• Mobilized 13 farmer clubs in association with NABARD.
• Organized skill up-gradation training for SHG members on cutting and tailoring.

Governance Achievements

• Framed Corporate Social Responsibility (CSR) Policy in accordance with the Companies Act 2013.
• Established a Vigil Mechanism/Whistle Blower Policy.
• Implemented a formal policy to ensure safety of women and prevention of sexual harassment.

Climate Goals & Targets

Environmental Challenges

• Temporary plant shutdown due to NGT order for suspected effluent disposal.
• Volatile and high milk prices throughout the year.
• High stock of SMP & Fat in the industry, leading to potential price decrease.
• Trend of adulterated ghee being sold at low prices.
• Only 20% of milk produced is channelled for organized marketing.
• 70% of urban and 31% of rural milk supplies don't meet quality standards.

Mitigation Strategies

• Submission to NGT, resulting in order permitting operations.
• Focus on utility costs and manpower productivity to gain efficiency.
• Expansion of village-level milk collection system.
• Panel of contractors for milk supply.
• Focus on Good Manufacturing Practices (GMP) and hygienic practices.
• Screening of incoming milk consignments for adulteration.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Dairy Top with new formulation
• Milk Star with new formulation
• White Magik – for IRCTC with new formulation
• Paneer – Shelf life extension to 9 months

Awards & Recognition

• Quality Marks for Packing Operation of Poly Pack Milk under Mother Dairy Brand

Environmental Metrics

ESG Focus Areas

• Food Safety
• CSR
• Employee Well-being
• Milk Procurement
• Plant Modernization

Environmental Achievements

• Upgraded Food Safety Management System as per FSSC 22000 Version 4.1 and Quality Management System as per ISO 9001–2015
• Commissioned CBMM (Continuous Butter Making Machine) leading to better productivity
• Sustained Number 1 Position in Plant Grading Index (PGI) Audit by Mother Dairy for 5th year in a row

Social Achievements

• Spent Rs. 19.07 Lakhs under various CSR activities, higher than the statutory requirement of Rs. 13.90 Lakhs
• Various initiatives taken to upgrade employee skills through internal and external trainings; Job rotation opportunities; Reward and Recognition schemes; Automation of HR functions; Cross Functional Team projects; Communication platforms with Senior Leadership

Governance Achievements

• Internal audit by corporate audit team consisting of Chartered Accountants as well as an external firm of Chartered Accountants
• Findings/ audit reports along with the action taken reports are reviewed by the Audit Committee
• Adequate internal controls commensurate with the size and nature of its operations

Climate Goals & Targets

Environmental Challenges

• Soft prices of Milk, SMP and Ghee; slump in International prices of SMP; entry of several small players launching low price milk powders
• Milk prices remained soft; many companies had excess inventory of Fat & SMP; realization of Milk prices for the farmers declined significantly
• Lower supply of Milk for 2019-20 may result into higher prices; increasing fuel prices may lead to inflationary trend in 2019-20

Mitigation Strategies

• Strategic decision to reduce bulk sales (SMP/Ghee) by 44%; focusing on converting bulk sales into retail packs to gain better margins; investing in retail distribution expansion and up-gradation of distribution infrastructure
• Decreasing interest costs through reduction of working capital; procuring milk through VLC pattern leading to better quality milk

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Paneer with extended shelf life
• High yield Skim Milk Powder

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Food Safety
• Community Development
• Farmer Support
• Employee Well-being

Environmental Achievements

• Installed 700 KWp rooftop solar plant, reducing grid power consumption by an average of 750,000 KWH per year.
• Upgraded plant to FSSC 22000 version 5.0, GMP, and ISO 9001-2015 standards.

Social Achievements

• Spent ₹12.42 lac on CSR activities, focusing on Dairy Interest Groups (DIGs), animal welfare, women's literacy, and healthcare.
• Enhanced milk procurement capabilities at the village level, adding new collection centers and BMCs.
• Provided farmers with support for low-cost fodder, veterinary support, and literacy training programs.

Governance Achievements

• Appointed Shri Rajiv Sheopuri as an Independent Director.
• Re-designated Shri Desh Bandhu Doda as an Independent Director.
• Implemented a Vigil Mechanism/Whistle Blower Policy.

Climate Goals & Targets

Environmental Challenges

• Second wave of COVID-19 impacted customer confidence and demand for consumer products.
• Significant price reduction by competitors affected the Dairy Creamer business.
• High input prices due to low milk availability, especially during the flush season.
• Low milk production due to constrained investment and less improvement in the population of milch animals.
• Less yield from milch animals due to less feed and heat stress, owing to climate change and shortening of growing seasons.
• Dairy analogues, adulteration, and plant-based products pose a major challenge.

Mitigation Strategies

• Aggressive marketing and promotion initiatives to recover sales.
• Enhanced milk procurement capabilities at the village level.
• Helping farmers to have more sustainable business and providing support to get low-cost fodder, veterinary support, and empowering farmers by providing literacy training programs.
• Upgraded plant to improve food safety and quality.
• Working on various value-added product categories to enhance offerings.
• Launched 2 new products based on changing demand patterns and consumer research.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress, less feed, and shortening of growing seasons due to climate change

Reporting Standards

Frameworks Used: FSSC 22000, GMP, ISO 9001-2015