Climate Change Data

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Low margin and profitability in the ceramic tiles industry.
• Non-availability of skilled labor.
• Increased rate of interest on borrowing.
• Frequent increase in cost of power and fuel.
• Cheaper imported Vitrified tiles flooding the Indian markets.
• High cost of power at Karaikal unit and minimal Natural Gas allocation.

Mitigation Strategies

• Efforts to upgrade variety, body matrix, shades and designs to suit market sentiments.
• Exploring ways and means to improve operating efficiency.
• Opening more exclusive showrooms to expand marketing activity.
• Introducing quality-based incentives to sales staff.
• Rationalization process in marketing by reviewing branch performance and closing consistently underperforming branches.
• Creating a brand image through hoardings, calendars, and newspaper advertisements.
• Starting a new plant at Sira, Tumkur to produce value added vitrified tiles.
• Widening distribution network to absorb additional production from the new unit.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• The Company has started producing the Vitrified tiles of double and multi charge tiles in its new unit and our Karaikal unit is functioning with improved gas allocation. The new unit at Sira Taluk, Tumkur District may fetch better market for quality products.

Governance Achievements

• The Company has devised a Policy for performance evaluation of Independent Directors, Board, Committees and other individual Directors which include criteria for performance evaluation of the non-executive directors and executive director.

Climate Goals & Targets

Environmental Challenges

• The ceramic industry in India is highly competitive on account of low entry barriers, easy availability of raw material and limited initial capital investment requirement. The industry is also facing competition of cheap imports of Vitrified tiles from China.
• Tile manufacturing involves a highly energy intensive manufacturing process; gas, power and transportation cost are the key cost-related issues impacting the industry. Consistency in fuel and power availability at reasonable rates is a very major concern for the industry.

Mitigation Strategies

• The Company has started production in its new unit at Sira, Tumkur. The Company is planning to produce value-added Vitrified tiles in Sira unit like Double charge, Nano and Digital printing tiles.
• The R & D team is working hard to invent new product ranges and designs which can capture the market.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Successfully modified the composition of the body to reduce shrinkage, which helps in reduction of raw material consumption, reducing the cost of raw material and the raw material processing time, thereby reducing wastage and conserving power. Re-use of kiln heat for the drying process which has considerably reduced the consumption of fuel.

Social Achievements

• Not disclosed

Governance Achievements

• Established a vigil mechanism for directors and employees to report unethical behavior, fraud, or violations of the company's code of conduct.

Climate Goals & Targets

Environmental Challenges

• Marginal decrease in overall sales by 17.97% compared to the previous year.
• Impact of COVID-19 pandemic on business and health, leading to work from home, office and factory shutdowns.
• Tough competition due to dumping of products from unorganized sectors and cheaper foreign brands.
• Shortage in demand from the construction industry and shortage of labor due to COVID-19.

Mitigation Strategies

• Strengthened production capacity and capability by installing new equipment.
• Purchased ODOO ERP software for smoother business operations.
• Implemented Four R’s of B2B Sales in Response to COVID-19: Respond, Reflect, Reimagine, Rebound.
• Appointment of new dealers in tier 2 and tier 3 cities.
• Focus on brand building and advertising.
• Data analysis to identify projects and expand territory.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Indian Accounting Standards (Ind AS)

Certifications: ISO-9001:2008

Third-party Assurance: K G RAO & Co., Chartered Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ISO-9001:2008

Environmental Metrics

Environmental Achievements

• Successfully achieved increased productivity by reducing the cycle time in the Firing Kiln, which not only reduce the fuel cost of the end product considerably but also conserve the power.
• Successfully implemented use of alternate product like Cashew Nut Shell, Tamarind Husk in replacement to Coal for generation of heat in the spray drier which reduced the cost of fuel in powder preparation and end product.
• Installed 400 KVA UPS system for each Kiln for immediate supply of power to the Kiln in case of power failure on running condition till the time of power supply resumes which reduce the wastage of fuel and power.
• Energy efficient LED lighting has been used in the factory and Proposal to test and purchase Variable frequency drive and panel for all our Ball Mills, to reduce peak voltage consumption.
• New polishing machine has been added for efficient and better output.

Social Achievements

• The focus of human resources development at your company is to ensure that we enable each and every employee to navigate the next, not just for clients, but also for themselves.
• The Company is providing appropriate training and guidance to its employees from time to time for reskill them and making them for more valuable for the Company.

Governance Achievements

• The Board has defined a set of corporate governance best practices and guidelines to help to fulfill our corporate responsibility towards our stakeholders.
• The Company is in compliance with the requirements in terms of Regulation 17 to 27 read with Schedule V and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), as applicable, with regard to Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• high input costs, supply chain disruptions and economic uncertainty, significant escalations in raw material and energy Costs
• determination of competitive pricing and the difficulty lies in keeping prices lower than competitors for long enough to gain an advantage without sacrificing profitability
• raw material availability, environmental issues, social issues, products dumping from China and energy availability
• Russia vs. Ukraine Conflict

Mitigation Strategies

• Risk Management Policy
• Risk Management Team ensures that the Company has appropriate and effective risk management systems which carries out risk identification, assessment and ensures that risk mitigation plans are in place.
• The Audit Committee of the company has additional oversight in the area of financial risks and controls.
• Marketing strategy following the Four R’s of B2B Sales

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Ind AS

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities