Nurture talent DO

GOOD
& Empower people
build leaders DO IT
WELL to power purpose
MAKE SAFETY A
CULTURE Outsmart legacy
Sustain leadership
Programmes
not projects
The best investments
are in assets you don't own Earn ethically

Co-create
transformations
Distribute equitably
Institutionalise Invest aggressively
interventions Future-proof growth
through product & business portfolio

innovate Go green
to conserve grow clean
Enhance energy
accountability
Rethink Seed agri-economies
Enhance quality Enrich quality of life
Improve energy
productivity THE ENERGY MIX
Harvest high impact areas and
seed change
into
them

WATT IS
SAVED

Zerodischarge
wastage Address criticality
VALUE
WASTE TO

before it becomes critical

Cultivate
No better
business
compass than a
customer's goal

FUNDAMENTALLY
SUSTAINABILITY
R E P O R T
 c O N T E N T S

03 06 11

Message from the CMD cOMPANY Profile Corporate Governance

15 23 33

Sustainability and Us Cotton People

59 67 77

Money Energy Water

87 98 105
Reporting Scope

Chemicals Product Responsibility

107
GRI Index
While actions always speak louder
than words, well-articulated words
result in sustained high impact actions.
Fundamentally Right is Arvind's bespoke
approach to sustainability which
focusses on input management rather
than tailpipe intercessions. The six
key material inputs are cotton, people,
money, energy, water and chemicals.

is a declaration of our core values

and beliefs across these six inputs.
It functions both as a statement of
principles and as a call to action
for all our employees. A compass for
strategic decisions, the manifesto is a
vital step forward in ensuring cogent
implementation of the input management
approach across the entire value chain.
 MESSAGE FROM
THE CHAIRMAN & MANAGING DIRECTOR

Dear Stakeholder,

Arvind is an organisation with a rich environmental and social challenge. Thus, training was given added
legacy of responsible stewardship. To gain deeper insights into the impetus during the reporting period
While, it is built on a strong efficacy of various cultivation and we introduced a range of
foundation of time tested values, it methods, during the reporting programmes across hierarchies.
continues to remain modern in both period, we undertook a detailed Through a combination of intensive
outlook and decisions. lifecycle analysis of BCI, Organic & training and implementation of
Conventional Cotton and charted safety best practices, we recorded
It is this synergy of age-old wisdom, new five-year roadmaps. a 56% reduction in injuries.
modern management practices and
new-age technology that has steered There exists a tight fit between We made prudent and strategic
Arvind successfully through its Arvind's mission of 'Enriching investments in potentially high-
sustainability journey and helped it Lifestyles' and the overarching growth industry segments like
deliver on its vision of 'enriching purpose of the Sustainable brands and e-commerce.
lifestyles'. Development Goals. Energy is one Additionally, we have also taken
parameter that is crucial for a major position in Ethiopia and are
Keeping pace with the accelerated achieving almost all of the building capacity for 2.8 million
need for sustainability across the Sustainable Development Goals – garments per month over the next
globe, we took large and rapid from eradication of poverty through couple of years.
strides to make our operations more advancements in health, education,
sustainable. Last year we unveiled water supply and industrialisation, to Arvind continued to contribute
our sustainability philosophy combating climate change. We actively to the holistic upliftment
'Fundamentally Right', this year to continued to invest in processes, of those on the margins of society.
turn intent into wide-scale action, practices and technology to enhance Our flagship programme 'Gyanda'
we are releasing our sustainability our energy efficiency, and thus which provides education to
manifesto. The objective is to enable during the reporting period, Arvind thousands of urban poor children,
our 30,000+ employees, to translate became the first Indian company to grew its footprint. We also
the 'Fundamentally Right' philosophy be awarded the ISO-50001:2011 mainstreamed a new initiative
into practise in their day-to-day certification in the 'Composite Textile 'Arvind Clinics' to provide quality
decisions across all six key inputs - Industry-Denim Fabric' category. The healthcare at extremely affordable
Cotton, People, Money, Energy, Water goal is to follow a globally rates.
and Chemicals. benchmarked approach to achieve
continual improvement of energy This report delves deep into our
Cotton is the most commonly grown performance, including energy triple bottom-line performance and
non-food plant in the world, accounts efficiency, energy use and I hope you find it interesting and
for two and a half per cent of arable consumption. informative.
land, and provides income for more
than 250 million people worldwide. The world is changing, stakeholder Regards,
Add to it, the water intensive nature demands are changing even more
of the crop, large-scale use of rapidly. The only way to keep
fertilizers and pesticides, genetic delivering, is to ensure that our key
modification, plus certification assets - our people, are equipped Sanjay S. Lalbhai
concerns and we have a complex with new skills and methodologies. Chairman & Managing Director

03
 With our
co-creation
strategy
and an
asset-light
business model,
we are slowly
but surely
transforming
from a textile
and garment
producer into
an end-to-end
solutions
provider for the
entire textile
value chain.

04
05
COMPANY
PROFILE
With a market cap of USD 1.3 billion WE MANAGE
and 85 years of rich business experience,
Arvind is one of the oldest and most
respected conglomerates in India. The
15 GLOBAL
In the last two decades, we have
Group has varied business interests, APPAREL BRANDS introduced some of the biggest clothing
ranging from textiles, retail and IN INDIA brands to cater to the changing needs of
advanced materials, to environmental
the aspirational Indian. The growing
solutions and real estate.
presence in the readymade garment
domain has now put Arvind on the top
We started life as a spinning and
as one-stop solution provider for leading
weaving unit in 1931 and have grown
global and domestic apparel brands.
over the years. But one thing has
remained constant: Change. In mid-
1980s, when several large composite
mills in the country were in crisis due to
WE HAVE
In the last few years, we have also
the introduction of power looms, we
adopted the 'Reno-vision' business
REGISTERED 22 played a part in transforming the way
clothes are made and worn, by
strategy that focussed on international GLOBAL PATENTS collaborating with international brands
markets and high-quality premium FOR ENVIRONMENTAL and enhancing the scope of sustainable
fabrics. Within a decade, we were SOLUTIONS fibres. Year after year, we continue to
among the top three denim producers bring world-class technologies and best
in the world. practices to Indian textile industries; at
the same time, we also continue to
indigenise and innovate better
equipment and production processes.

It has been our constant endeavour to

be a responsible corporate citizen - not
OVER just for the society, but also for the

80,000 ACRES environment. In 2010-11, we became

one of the first implementation partners
OF FARMLAND of the Better Cotton Initiative (BCI) in
UNDER ORGANIC & India. BCI seeks to enhance the

BCI CULTIVATION profitability of farmers, while

simultaneously minimising the
environmental impact of cotton farming.
We have also been one of the
proponents of organic cotton cultivation
amongst Indian cotton farmers. Through
Arvind Foundation and SHARDA Trust,
we undertake comprehensive, long-term
programmes in the field of education,
healthcare and skill-building.

06
 Vision

A BETTER
WE WILL ENABLE PEOPLE TO EXPERIENCE

QUALITY OF
LIFE This underlying theme of enhancing
lifestyle runs across the broad spectrum
of all business activities at Arvind.

07
Philosophy Strategic Growth Vision Business Highlights

TO BE THE
LARGEST
INTEGRATED
TEXTILES AND
APPAREL
PLAYER
IN INDIA WITH
WE BELIEVE LEADERSHIP 2014
In people and their unlimited potential; in POSITION IN Buys 49% stake in Calvin Klein in India.
content and in focus on problem solving;
in teams for effective performance and in
SEVERAL GLOBAL Set up joint venture (JV) with Goodhill

the power of intellect. MARKETS Corporation of Japan for launch of

formal suits

WE ENDEAVOUR MATURE BUSINESSES

To select, train and coach people to Denim Fabric
2015
Woven Fabric Gap partners with Arvind Lifestyle
obtain higher responsibilities; to nurture
Brands to enter India
talent and to build leaders for the
corporations of tomorrow; to reward, ESTABLISHED Launched Arvind Composites Business
celebrate and activate all intellectual GROWTH BUSINESSES
business contributions. Garmenting | Knits Fabric Launched The Children's Place - the first-
Brands | Retail of-its-kind in kids' fashion retail format
in India
WE DREAM FUTURE BETS
US apparel brand Aéropostale teams up
Of excellence in all endeavours; of Technical Textiles with Arvind Lifestyle to enter India
mutual benefit and prosperity; of making Custom Clothing
the world a better place to live in. E-commerce
2016
Ventured into footwear market

Launched 'True Blue', co-branded with

cricket legend Sachin Tendulkar

Signed a deal to manage the Indian

operations of cosmetics and beauty
retailer, Sephora

Started operations in Ethiopia

To know more about our journey over

the years, refer to Arvind Sustainability
Report 2013-14
08
 BUSINESS
PROFILE
Arvind today is synonymous with a vast range of lifestyle products - be it fabrics or brands.
Our business divisions bring in the best technology and expertise to produce some of the
finest fabrics and exacting dresses for some of the world's most quality conscious brands.
In addition to consumer textile and garmenting, we have diversified business interests
comprising advanced materials, retail, engineering, real estate, sustainable agriculture
and telecom.

All our businesses are aligned to the Group's philosophy of providing

better quality of life by providing inspiring lifestyle solutions.

DENIM WOVENS

INSTALLED PRODUCTION AWARDS &

CAPACITY CAPACITY OF
RECOGNITIONS
117
OF OVER

100
MILLION METRE
PER ANNUM
MILLION METRE
PER ANNUM OF SHIRTING
& BOTTOM WEIGHT FABRICS
Awards not only acknowledge success,
but also the ability, struggle, effort and
above all, excellence put in by the
organisation. We have received
numerous awards and recognitions, from
KNITS VOILES various industry bodies and government
agencies over the years.

ANNUAL KNITTING PRODUCTION Some of the key ones are listed below:

9,400
CAPACITY OF CAPACITY OF

TON INCLUDING BOTH

FABRIC & YARN DYEING
40
MILLION METRE
PER ANNUM
Ministry of Power, India

MOST ENERGY
EFFICIENT
TEXTILE UNIT
GARMENT EXPORTS ADVANCED MATERIALS IN INDIA
TO SANTEJ UNIT
CROSSED
TURNOVER SEEM Award - 2nd edition
CAPACITY OF OF INR

22 5
GOLD AWARD
FOR NARODA UNIT
MILLION PIECES BILLION IN
PER ANNUM FY 2015-16

BRANDS & RETAIL

900
In September 2015, we created a new
value department chain 'Unlimited'
BRAND from the existing Megamart chain.
STORES
The Unlimited chain will sell premium

1,400
MULTI-BRAND OUTLETS ACROSS INDIA
brands and will also focus more on
mass-priced franchise brands.

09
CHARTERS, PRINCIPLES
AND COALITIONS
Our long-standing commitment is to be a responsible organisation. Towards the purpose, we have embraced globally best sustainability
practices, and have signed several international charters, principles and coalitions.

Sustainable Apparel Coalition Better Cotton Initiative Global Organic

We are a founding member of The We have collaborated extensively with Textile Standard
Sustainable Apparel Coalition (SAC). Higg BCI in the production and sourcing of our We have received the GOTS Standard 3.0
Index, one of the key focus areas of SAC, most valued raw material - Cotton. Details certification for our fabrics, fibres and
helps gauge environment and social of our collaboration with BCI are presented yarns products.
impact of the apparel industry. During in the Cotton section of this Report.
the reporting period, we expanded the
assessment to total four more units in International Organization
Bengaluru: Bommasandra, Electronic City, Occupational Health and
for Standardisation -
Yeshwantpur and Chitradurga. Safety Assessment Series
ISO 9001, ISO 14001
(OHSAS 18001:2007
Our operations are ISO 9001: 2008
Certifications)
Social Accountability (Quality Management Systems) and
All hazards and its associated risk have
International - ISO 14001: 2004 (Environmental
been identified across the Santej Facility. Management Systems) certified.
SA8000 Standard
Any risk that deems to be high in the
We have adopted Social Accountability Hazard Identification and Risk Analysis
Management System as per the SA8000: (HIRA) are prioritised and taken in to CII - Sustainable Plus
2008 Standard, and have been management plan.
Applied for the CII’s Sustainable Plus
externally audited by Bureau Veritas.
label for Organisations and achieved the
gold label for 2015-16 year.
Global Reporting Initiative
CDP
This Report represents our first attempt
Arvind Ltd. has reported at CDP (Carbon at presenting sustainability disclosures, Carbon Pricing
Disclosure Project) for two years in row using the GRI G4 Sustainability Reporting Leadership Coalition
now. Guidelines.
Arvind is one of the five corporates in
India, to be part of this global coalition of
Water Resources Group WRI - India GHG program corporates, initiated by the World Bank.

Arvind is part of the WRG, funded and As part of WRI’s India GHG program,
founded by IFC and UN, and is engaged Arvind has established the textile
with them in improving the livelihood of working group for GHG emissions
cotton farmers in Maharashtra. reporting and reduction.

INDIA CP CARBON PRICING 2030

GHG Water
PROGRAM LC LEADERSHIP COALITION
Resources
Promoting profitable , sustainable
and competitive businesses.
Group

Disclaimer: All trademarks and logos used are properties of their respective owners.
10
 CORPORATE
GOVERNANCE

Trust is the foundation of sustainable development.

Trustworthy relations between the organisation
and its stakeholders is key to sustaining in
today's competitive business environment.
We have promoted and practised the tenets of good corporate governance since inception. Have garnered the trust of our investors
by employing funds judiciously, yet competitively, and generating a steady stream of returns. We have reiterated the credibility &
capability of our leadership time and again, by looking beyond the bend and acting before the herd.

CORPORATE GOVERNANCE PHILOSOPHY

Corporate governance at Arvind is a value-based framework to manage every aspect of business in a fair and transparent manner.
We use this framework to maintain accountability in all our activities, and employ democratic and open processes. We have evolved
guidelines and best practices over the years, to ensure timely and accurate disclosure of information regarding our financials,
performance, leadership and governance of the Company.

Our corporate governance philosophy is based on the following principles:

• Satisfy the spirit of the law, and not just the letter of the law. Corporate governance
standards should go beyond the law
EVERY PRINCIPLE
NEEDS A PROMULGATOR,
• Be transparent and maintain a high degree of disclosure levels. When in doubt, disclose A PROMOTER AND
• Make a clear distinction between personal conveniences and corporate resources A PROTECTOR. FOR ARVIND,
• Communicate externally, in a truthful manner, about how the Company is run internally THESE ROLES ARE ABLY
• Have a simple and transparent corporate structure driven solely by business needs
PERFORMED BY OUR
BOARD OF DIRECTORS.
• The Management is the trustee of the shareholders' capital, and not the owner
11
BOARD OF DIRECTORS & BOARD COMMITTEES
The Board at Arvind is responsible for providing strategic guidance & oversight, regarding management decisions as well as selecting
and making changes in the management, whenever necessary. It oversees implementation of the corporate governance practices and
ensure that these principles are followed in making key decisions, to protect the long-term interests of the stakeholders.

As of 31st March 2016, the Board Composition of the Board as on 31st March, 2016
comprised 10 Directors, of whom 6 were Name of Director Executive/Non-executive/Independent
independent and non-executive. The
appointment of the Board members is Mr. Sanjay S. Lalbhai Chairman & Managing Director
based on their credentials and there is
Mr. Punit S. Lalbhai Executive Director
no discrimination due to caste, creed,
minority community or other indicators Mr. Kulin S. Lalbhai Executive Director
of diversity.
Mr. Jayesh K. Shah Whole-time Director & Chief Financial Officer
The independent, non-Executive Dr. Bakul Dholakia Independent Director
Directors, including one female director,
are leading professionals from varied Ms. Renuka Ramnath Independent Director
fields, who not only bring in vast Mr. Dileep Choksi Independent Director
experience and independent judgment
to the Board's discussions and Mr. Vallabh Bhanshali Independent Director
deliberations, but also enable the Mr. Samir Mehta Independent Director
separation of ownership and control.
Mr. Nilesh Shah* Independent Director

* Mr. Nilesh Shah was appointed as an Independent Director with effect from 6th May, 2015.

BOARD COMMITTEES Audit Committee The Audit Committee comprises three Non-executive, Independent
Directors, with an Independent Director acting as the Chairman.
At Arvind, the Board of Directors has
constituted five Board Committees and Remuneration Committee In addition to reviewing and recommending the
determines the terms of reference of compensation and benefits of the Executive Directors, the Remuneration Committee also
these Committees from time to time. administers and supervises the Employee Stock Option Schemes, and reviews HR policies
Meetings of these Committees are and initiatives. The Committee comprises three Non-executive, Independent Directors.
convened by the respective Committee
Chairman/Company Secretary. At each Investors' Grievance Committee The Investors' Grievance Committee looks into the
Board Meeting, minutes of these redressal of investor grievances pertaining to shares, debentures and bonuses etc. It also
Committees are placed before the looks at means to strengthen investor relations. The Committee has four members: two
Directors for their perusal and noting. Non-executive Directors and two Executive Directors.

Management Committee The Management Committee's primary role is to look after

the day-to-day business activities of the Company within the Board approved
(For more information about the specific roles direction/framework. The Committee comprises two Executive Directors.
and responsibilities of the Board and its
committees, please see the Corporate
Corporate Social Responsibility Committee The CSR Committee oversees the
Governance Report section of our 85th Annual
Report for FY 2015-16 on our website at implementation and monitoring of the CSR policy, in compliance with the CSR objectives
http://www.arvind.com/investorrelations/ and policy of the Company. It comprises the managing director, an executive director, the
annualfinancialreport.htm) CFO and is headed by an independent director.
12
 THE CODE OF CONDUCT RISK MANAGEMENT
The Code of Conduct is an integral Risk is an inherent part of business, but it can be mitigated through a robust risk
component of Arvind's culture, and a management mechanism. We have a strong Enterprise Risk Management (ERM)
visible guideline for an employee's framework which enables us to take certain risks to remain competitive and achieve
behaviour in the organisation. We higher growth, and at the same time mitigate other risks to maintain sustainable results.
actively promote it to enable users take
Under the framework, we have laid down a Risk Management Policy which defines the
day-to-day decisions in conjunction with
process for identification of risks, its assessment, mitigation measures, monitoring and
the company's ethics, vision and mission.
reporting. While our employees and the Executive Management team continuously
The Board has adopted the following assess the identified risks, the Audit Committee reviews the identified Risks and its
codes in accordance with SEBI mitigation measures annually.
(Prohibition of Insider Trading)
Regulations, 1992: Through diligent deliberation and extensive engagement with concerned
• Code of Conduct for Directors and stakeholders, we have identified 17 Risks. These have been divided into
Senior Management Personnel following categories:

• Arvind Code for Prevention of

6 STRATEGIC RISKS This includes geographical concentration of our
Insider Trading
manufacturing capacity, fluctuation in cotton prices, business continuity
• Arvind Code of Corporate Disclosures and succession planning

8 OPERATIONAL RISKS This includes labour unrest, customers credit risk,

customers' concentration and fluctuation on foreign exchange rates
WHISTLE BLOWER
POLICY 3 REGULATORY RISKS This includes bilateral/multilateral trade
agreements, government policies with respect to textiles and
Through our Whistle Blower Policy, we
Regulatory compliances
provide our employees with a safe
medium of registering the issues or
complaints of wrongdoing within the We also have in place, an Internal Control System that is commensurate with the size,
Company, without the fear of any scale and complexity of our operations. Our Internal Audit department has
repercussions. professionals with adequate experience and expertise in internal controls, operating
system and procedures. In discharging their role and responsibilities, the department
The Policy provides a framework and is supported by an external audit firm.
avenue for all directors, employees,
business associates and other
stakeholders, to report instances of
unethical/improper conduct in good
PUBLIC POLICY ADVOCACY
faith of the Company. The Policy is also As one of the largest players in India's textile industry, we continually engage with the
committed in adhering to the standards government, regulating authorities and non-profit organisations, to shape policies that
of ethical, moral and fair business define the industry. Following are some of the key industry associations we are
practices. All disclosures are diligently actively involved in:
overseen by a dedicated Whistle Blower
• The Cotton Textiles Export Promotion Council
Committee, appointed by the
Board/Audit Committee. • Apparel Export Promotion Council

Our Whistle Blower Policy is freely available • Agriculture & Processed Food Products Export Development Authority
on our corporate website at http://arvind.com/
pdf/Whistleblower/Whistleblower%20policy.pdf • Federation of Indian Export Organisations

• Confederation of Indian Industry

• Gujarat Chamber of Commerce & Industry

• Confederation of Indian Textile Industry

• Denim Manufacturers Association

• Textiles Committee

• Ahmedabad Textile Mills Association

• Sustainable Apparel Coalition

13
case study

KEEPING A KEEN EYE

ON LEGAL COMPLIANCE
Challenge
We consider legal compliance as one of the cornerstones of an effective and efficient Corporate Governance
framework. Traditionally, a select group of professionals used to monitor the compliance status of the Company. In the
last 5 years, we have recorded exponential growth and have expanded into new businesses and geographies.
Additionally, over the years, legislations and regulatory requirements have also been changing dynamically. All these
factors necessitated a structured monitoring mechanism.

Intervention
In early 2014, we commissioned To drive this project, a small task force was constituted in early 2015. The
a large global consulting firm to responsibilities of the special task force included:
help us create a new, more • Working with the implementation partner during the implementation phase
comprehensive compliance
• Supporting the qualitative review of database and imparting training to users
monitoring mechanism.
• Engaging with individual employees on a one-on-one basis to help inculcate
Through collaboration, we
the practice of reporting the compliance status in the new reporting tool
created a customised repository
of legal compliances applicable In early 2016, the new framework was rolled out for Textile, Garments and
to our large businesses, Brands businesses. A comprehensive tool has been created with features like:
identified roles in the
• Weekly notification for compliances that would become due in the next week
organisational hierarchy that
would be responsible for • Reminder for pending compliances as well as notification for compliances that
ensuring the compliance and are fulfilled but not updated in the system
prepared an online dashboard
• Provision to update the status of compliance in the tool with an option to
to review the status of legal uploading the proof of compliance (like copy of challan, return, extract of
compliances. register etc.)

The details provided by the concerned individual are reported to their HOD for review and approval. An online dash
board is available with senior management to review the status of legal compliance across businesses, locations,
departments, legislation category, and period etc.

Impact & Way Forward

The new legal compliance framework has

The online tool is now able to provide a real-time
been stabilised across the Textile business;
i.e. Denim, Woven and Voiles. Garmenting status of legal compliances, identify concern which
and Brands are slowly catching up. allows the management to take prompt actions.

Sustaining such a framework has its own challenges. There are constant changes in legislations, ownership, roles and
responsibility, businesses, addition of new employees. Besides, there is a need for conducting regular training and
refresher modules. To meet these challenges, we have created a dedicated team that is responsible for monitoring the
status of updates, follow up with individuals to update the status for pending items, training/re-training, addressing
requests for change in mapping and auditing the compliances on a sample basis.

14
 SUSTAINABILITY,
WHEN STRATEGICALLY EMBEDDED AT SOURCE,
GETS CASCADED TILL THE
END OF THE VALUE CHAIN
PUNIT LALBHAI & KULIN LALBHAI
Executive Directors | Arvind Limited

15
16
 SUSTAINABILITY & US
Sustainability at Arvind, is a core philosophy as well as the unique selling proposition that helps us to create and maintain enduring bonds
with our clients, globally. As sustainability gains greater importance for our clients, we remain well poised to match up to their emerging
expectations and perform at par with international benchmarks.

By adopting input management as our preferred approach to sustainability, we are not just ensuring that our business remains
fundamentally right but also contributing towards achieving the sustainability goals of our clients and staying true to the expectations of
our varied stakeholders.

STAKEHOLDER ENGAGEMENT
Focussed engagement with stakeholder groups helps us understand
their needs and improve our policies, practices, decisions and
disclosures based on their feedback.

STAKEHOLDER IDENTIFICATION

The first step to garner the right interactions and solicit the right insights, is to identify and involve the right stakeholders. With this
view, in FY 2013-14, we collaborated with Ernst & Young LLP for a structured identification of stakeholder groups as a way forward to
our sustainability journey.

Based on various parameters that impact the sustainability of business such as dependency,
responsibility, tension and influence, we have zeroed in on the following key stakeholder groups.

EMPLOYEES
CUSTOMERS INVESTORS MEDIA & WORKERS

LOCAL GOVERNMENT
COMMUNITY AGENCIES SUPPLIERS DISTRIBUTORS

17
ENGAGEMENT MECHANISM

The stakeholder identification process was followed by reconstitution of our engagement mechanism. Diverse communication
platforms were institutionalised for each stakeholder group, with the objective of communicating our company policies and
expectations, and collecting timely feedback from stakeholders.

In the reporting period, we continued to engage with all our stakeholders in a two-way dialogue through a host of channels:

Stakeholder Category Objective Engagement Methodologies

CUSTOMERS Develop a sustained relationship. • Periodic one-to-one interactions

with key customers
Anticipate short - and long-term expectations.
• Customer satisfaction survey
• Personal meetings by our design and
technology teams with customer groups
at regular intervals throughout the year
• B2B customer portal launched
during reporting period to facilitate a
continuous dialogue

INVESTORS Understand concerns and expectations, create • Regular dissemination of financial

higher shared value. performance through newspapers
and published accounts
• In-depth interactions in analyst
meets and investor presentations

EMPLOYEES & WORKERS Understand their career ambitions, job • Structured interactive appraisals,
satisfaction parameters, support career growth, career path guidance, training
training and development. programmes, employee rewards and
recognition (Arvind Stores),
Share organisation's vision, short-term and long development programmes
term goals, workplace needs and expectations. • 'Abhivyakti', employee engagement
survey was conducted during
reporting period

LOCAL COMMUNITY Maintain cordial relation with • SHARDA Trust's activities

local communities.
• Interactions by IR department

MEDIA Communicate key developments, milestone • Media interaction events, press

events, growth plans etc. conferences, media announcements
of quarterly reports and major tie-ups

GOVERNMENT AGENCIES Understand compliance and applicable • Personal meetings

regulations. Brief them on steps taken and
• Submission of relevant compliance
discuss opportunities to collaborate on pressing documents
issues.
• Presence in industry forums etc.

SUPPLIERS Sharing of mutual expectations and needs, • Periodic interactions between

especially with regard to quality, cost and timely Arvind's buying and sourcing teams
delivery, growth plans and sharing of best • Two Supplier Days organised during
practices. the year
• Training programmes, quality workshops

18
 I N I T I AT I V E S

BROADENING THE FARMERS' PERSPECTIVE

We invited farmers involved in the Akola BCI Project to visit Arvind's Ahmedabad unit. A two-day visit was structured to make the
farmers fully aware about the activities carried out to manufacture the garments. The objective was to:

ENCOURAGE MAKE THEM EMBED THE SHOW THEM THE MOTIVATE

FARMERS TO UNDERSTAND IMPORTANCE OF PROCESS FLOW THE FARMERS
GROW COTTON AND CONTAMINATION-FREE FROM BALES TO AND
BY ADOPTING APPRECIATE COTTON SPINNING, WEAVING, APPRECIATE
SUSTAINABLE THE TEXTILE (CLEAN COTTON) FABRIC AND TO THEIR
PRACTICES VALUE CHAIN GARMENT ASSOCIATION

These farmers play a leading and influential role in our BCI

farm project and hence enthusing them to further adopt
sustainable practices will lead to a chain of good practice
implementation.

This visit achieved the set objectives and also gave them
an overview of the company. The interaction with the
management and other concerned people, showed them
the current scenario and the direction of the future.

AS AN IMPORTANT STAKEHOLDER OF THE BCI

PROJECT, THE VISIT REINFORCED AND RENEWED
THEIR OUTLOOK REGARDING THE RESPONSIBLE
METHODS OF FARMING.

PROVIDING BETTER PLATFORM TO CUSTOMERS

CUSTOMER PORTAL

Sales Digital Customer

Tracking Marketing Support

Product Relationship
Promotions Management

Business growth runs parallel with customer satisfaction. To serve our customers in a more effective and delightful way, Arvind's denim
business launched a customer portal which allows them to get all the company related news, photos of the latest collection of denim
products and their detailed specifications online. The customers can register and track their order/ development inquiries, complaints,
and sample requests among other facilities at the click of the button.

This platform will go a long way in further serving, retaining and attracting
valuable customers.
19
EMPOWERING EMPLOYEES WITH
THE FREEDOM TO EXPRESS
s • A ct i o n P l a n n i n
hop g

ks

• I
Abhivyakti, an employee engagement

Leadership Wor

m p l e m ti o n
study was conducted with a view to
undertake a work climate analysis.

e nt a
Employees were encouraged to share their
feedback on the organisation including
their satisfaction quotient as well as their ACT
expectations. Towers Watson, a leading
global professional services company,
assisted us in this study and its analysis.
a rk i
ng Study ENGAGE Project Planning
•
Potential areas assessed in this analysis hm

Que
c
roduction • Ben
include leadership & direction, working

st i o n n
conditions, training and development, ANALYSE ASK
sustainable engagement, inclusion and
?

aire desig
corporate responsibility among others.

ration
Resu
Based on the feedback, separate reports
tP

n&
in i s
por

l
were presented before the Board of
tA
nal

T
Re m ran
Directors, the Chairman & Managing
ys i s Ad s
& Roll Out • • Survey
lat i o n
Director (CMD) and the various Business
Heads, while the managers were assigned
with the areas of action for their teams.
This study was developed on a unique ask-
analyse-act paradigm and is enabling us
the opportunity to build on our strengths
4,340 employees participated
and open doors to rooms for improvement. in this work climate analysis study
REVAMPING THE IT INFRASTRUCTURE

At Arvind, we are constantly innovating to enhance our people, processes and systems in our quest for making our operations and their
business outcomes more effective and beneficial for all. During the reporting period, the entire business procedure at Arvind was
integrated to modern IT systems in order to foster an environment of increased transparency and informed decision-making.

A consolidated IT system backed by a robust ERP system leads to better communication and reduces the risk of errors. It augments
productivity as people and other resources can engage in other tasks in the operations.

Here are some of the IT initiatives undertaken during the reporting period:

• Introduction of data centre transparency and ready availability • Restricted and conditional access to
consolidation with an uptime of of relevant data catalyses optimum sensitive information imparts a high
99.98% at Gandhinagar and management control, strategic level of security to the entire business
Bengaluru has led to better planning and effective decision information and statistics at Arvind.
prevention and reaction mechanism in making.
Business Continuity Planning (BCP) • Being in the textile business, our
and Disaster Recovery (DR) • Intranet for all our internal carbon footprint is a factor that is
communications and IT integration continuously monitored and
• Real-time data access and recovery is and automation of our administrative regulated. Virtualisation of servers
made possible with Business and HR procedures has resulted in based on the cost-effective X86
Intelligence dashboards across our paperless offices. architecture has hugely reduced our
operations and businesses. Better power consumption and overheads.

20
 MATERIALITY
What our stakeholders expect from us, form the foundation of our business decisions. Over the years, it has become increasingly
clear that stakeholders are placing greater emphasis on social and environmental parameters in the same breath as financial
performance. It is therefore significant to listen to them carefully and engage with them on material issues.

For a large business like ours, it is only natural to have diverse stakeholders each with distinct priorities and interests. Materiality
analysis helps us identify the matters that matter the most to Arvind.

In FY 2013-14, a formal materiality process was devised to identify the issues important to our stakeholders and our business, in
consultation with Ernst & Young. For more information about our Materiality Process, please refer to the Sustainability & Us section
in FY 2013-14's sustainability report.

In the reporting period, we reanalysed and validated our materiality to identify and incorporate emerging issues, if any.
Our materiality matrix (presented here) comprises a universe of sustainability issues raised by our stakeholders as well as our
leadership team. These material issues have been plotted against an x-axis (representing impact on business) and a y-axis
(representing issues important to stakeholders). Those on the top right corner of the materiality map represent the highest
significance to Arvind.

MATERIALITY MAP OF ARVIND LIMITED

5.0

Regulatory & Legal Challenges

Water Use & Management

Climate Change Risks Communication & Engagement

Energy Management
Policies, Standards,
4.0 Code of Conduct
Business Ethics & GHG Emissions & Air Pollution
Competitive Behaviour Long term viability of Core Business
Community Development Supply Chain Engagement and
Child & Forced Labour Transparency
IMPORTANCE TO STAKEHOLDER

Labour Relations &

Product Lifecycle Use Impact Union Practices
Environmental Accidents Employee Health, Safety & wellness
& Remediation Product Quality & Safety
Board Structure Fuel Management Customer
& Independence Recruitment & Retention
Biodiversity & Transportation Satisfaction
Impacts Waste Management & Effluents
3.0 Customer Privacy Product Pricing
Research,
Compensation & Benefits Supply Chain Standards Development &
Customer Health & Safety & Selection Innovation
Diversity & Equal Opportunity Shareholder Engagement Raw Material Demand

Disclosure & Labeling New markets

Executive Compensation Accounting for
Training & Development Externalities
Impact from Facilities
Marketing & Ethical Advertising
Product Societal Value
2.0
Access to Services
Lobbying & Political
Contributions

Packaging

1.0
0.0 1.0 2.0 3.0 4.0 5.0

IMPACT ON BUSINESS

21
 Based on factors such as risks, returns and relevance, we further distilled this materiality matrix and
identified six key material issues and four allied material issues which are grouped under 'others'.

COTTON ENERGY OTHERS

Sustainable Sourcing Energy Management Communication and Engagement
Cotton sourcing is crucial to our Energy efficient technologies deployed Continuous communication and
operations. Not just in terms of quantity across our units and offices help us to engagement take place with our key
and supply, but also in terms of keep a keen eye on our energy stakeholders like customers, investors,
sustainability. We harness consumptions and employees. Details of this
methodologies and promote engagement are elaborated in the
responsible farming techniques like Greenhouse Gas (GHG) Emissions & stakeholder engagement section.
Air Pollution
organic farming and Better Cotton
Initiative to ensure that cotton farmers, We strive to reduce the GHG footprint Policies, Standards and Code of Conduct
the communities and mother Earth reap of our business by adopting green
We have policies, standards and code of
the benefits of our fabrics. manufacturing technology and
conduct for our business processes,
reducing our energy consumptions
engagements with customers &
Supply Chain Engagement stakeholders as well as product
and Transparency manufacturing and services. Please refer
We meet our suppliers periodically to
CHEMICALS to the corporate governance section in
ensure transparency and clear We use the right chemicals judiciously this report for more details.
communication in the supply chain. and responsibly. It is our constant effort
We organised Supplier Day twice during to find substitutes that have a smaller Customer Satisfaction
the reporting period, to elaborate and environmental impact. We treat not We try to anticipate short and long-term
familiarise our supplier group with only the effluents but also extract expectations of our customers. Our
Arvind's sourcing policy, sustainability useful salts from them; such that they design and technology teams meet the
practices and code of conduct. can be reused. customer groups at regular interval
throughout the year.

WATER PEOPLE Regulatory and Legal Challenges

Water Use and Management Labour Relations and Union Practices All our operations and business processes
We have identified and implemented We have clearly spelt out guidelines to are as per the legal and regulatory
ways to reuse and recycle water and to ensure that we engage in fair labour processes approved by the Government
minimise our water footprint. Our water practices. This includes payment of under the Companies Act 2013 in India.
conservation and recycling initiatives minimum wages, protection of human
have helped us to lower our rights, prevention of child/forced labour
dependence on water resources in our and encouragement of health and safety
key units. best practices.

During the reporting period, we

implemented a breakthrough Public- MONEY
Private-Partnership project at Ankur Long-term Viability of Core Business
Textiles, where we extract process water We try to be fundamentally right in our
from sewage waste taken from nearby approach to run our business. This
communities through the local ensures that our core business interests
municipality's wastewater network. remain protected and are sustainable.
More details in water section.

22
 HARVEST HIGH IMPACT AREAS
& SEED CHANGE
INTO THEM
PRAGNESH SHAH
CEO | Cotton & Agri Business

23
24
 Cotton was cultivated in the cradles of the civilisation. And today, despite a
number of natural and artificial fibres, cotton still continues to remain in
vogue. Being one of the largest producers of textiles and garments in India,
cotton continues to remain a key input material for us - something that is
essential for us to be fundamentally right.

With the demand for garments growing, sustained supply of this vital
ingredient, in sufficient volumes and at competitive rates, is material to us.

so we are investing towards creating

an ecosystem which secures our input,
safeguards farmers' interests and
enhances farm yield. Cotton farming is an extremely resource intensive process.
At Arvind, we believe that the solution lies in making the
farming process more efficient and responsible.

52%
INCREASE IN THE NUMBER OF BCI FARMERS
BETWEEN FY 2013-14 AND FY 2015-16

LCA OF ORGANIC &

BCI COTTON
REITERATES THE SUSTAINABILITY BENEFITS OF
RESPONSIBLE COTTON FARMING

COMPREHENSIVE
FIVE-YEAR PLAN
TO DRIVE BCI AHEAD AND TO DEVELOP GENUINELY ORGANIC COTTON SEEDS

ZERO CHILD LABOUR

AT OUR ORGANIC AND BCI COTTON FARMS THROUGH
THE STRICT IMPLEMENTATION OF ANTI-CHILD LABOUR POLICY

25
CONSUMPTION
The consumption of cotton is predicted to increase, as the global textile industry is projected to grow at a CAGR of 4-5% over the next
10 years. Moreover, the expanding Indian middle class and increasing disposable incomes are poised to grow the Indian textile
industry at a CAGR of 9-10% over the next decade. This translates to a corresponding progress for us; but also means a continuous
climb in cotton requirement. This cotton supply should not only be smooth and of high quality, but also sustainable for the farmers and
the environment.

In the last two years, output at our Better Cotton Initiative (BCI) project farms as well as organic farms stagnated as the farmers opted
for alternative cash crops. Nonetheless, we still remain confident of the long-term merits of both these cultivation methods and are
determined to continue encouraging them in the times to come.

Here is how our Akola-based Organic & BCI farm projects performed during the reporting period.

87,434
Area Under Cultivation (in Acre)

73,584
FY 13-14 FY 14-15 FY 15-16

67,436
BCI 12,069 14,750 11,119

Organic Cotton 15,899 17,197 13,507

Other Crops 45,616 35,489 62,808

Total 73,584 67,436 87,434 2013-14 2014-15 2015-16

Compared to FY 2013-14, here was an 8% and 15% drop in the area

under cultivation in FY 2015-16. But on the other hand, the cultivation of
other crops increased by almost 38%.

Despite a slump
in the area under cultivation,
the number of BCI farmers
engaged increased by
over 52% between
FY 2013-14 and FY 2015-16.
Across the market, India saw a decrease of 13% in organic cotton production as a result of farmers moving away from cotton in
favour of more lucrative crops. India's domestic and international market for organic food, flowers, and pharmaceutical extracts (such
as marigolds) is growing rapidly, making this trend particularly prevalent amongst organic cotton farmers.
11,155

Farmers Engaged
9,446

FY 13-14 FY 14-15 FY 15-16

8,482

BCI 2,630 3,395 4,000

Organic Cotton 3,415 3,651 3,674

Other Crops 2,437 2,400 3,481

Total 8,482 9,446 11,155 2013-14 2014-15 2015-16

26
 OUR APPROACH TO SUSTAINABLE COTTON
We need to ensure an uninterrupted supply chain, while remaining watchful that the cotton farmers, the community and the mother
Earth reap the benefits as well. To make cotton farming sustainable and responsible, we need to understand and address the
challenges across all three bottom lines.

ECONOMIC SOCIAL ENVIRONMENTAL

The challenge is to safeguard farmers' The need of the hour is to find more The task on hand is to find
interest, while ensuring the supply. effective and efficient methods of environmental friendly processes,
farming, enhancing farm yield and to meet the continuously
reducing social evils like child labour. increasing demand.

WE BELIEVE THAT
WHAT COMES OUT
DEPENDS ON
WHAT GOES IN.
As one of the implementers of Better Cotton Initiative in India
and as one of the early proponents of organic farming,

WE INVEST IN SAFEGUARDING THE SOIL'S SUSTAINABILITY

AND SECURING THE FARMERS' INTERESTS; SUCH THAT WE CAN
EXPECT A CONTINUAL SUPPLY OF OUR RAW MATERIAL. WE
CALL THIS 'RESPONSIBLE SOURCING' AND IT IS ENSURED BY
'THE ARVIND AGRIBUSINESS CONTRACT FARMING PROCESS'.

Based on variables such as the quality of soil, access to irrigation and other surrounding conditions, we help farmers choose the correct
option between Organic Cotton cultivation and Better Cotton Initiative (BCI).
Note: To know more about our contract farming process, please refer to Arvind Sustainability Report, 2013-14.
27
ORGANIC COTTON
Organic cotton farming is the process of growing cotton as it was always meant to be – devoid of any genetic modification,
without any artificial fertilizers or pesticides and in harmony with the cycles of nature. This not only protects the soil and
groundwater; it also reduces the overall cost. Rotational cropping of leguminous crops like pulses, and scientific practices improve
the yield per acre over time.

In addition to spreading awareness about the benefits of organic farming, we also help farmers in forming Self Help Groups (SHGs)
and create a self-sustainable, mutual support system, where peer-power is harnessed for problem solving and mobilising funds.

THE STORY TILL NOW

Inception of Organic Timely completion of certification Globally, challenging time for
Cotton Farming project to by reputed third party agencies. organic cotton; dearth of availability
provide genuine organic First ever case of backward of organic seeds; widespread
fibres to customers integration for organic fabrics at mixing of BT genes with the organic
farm level seeds available in the market

2006-07 2011-12 2014-15

2007-11 2012-14 2015-16

Establishment of the on-ground Implemented irrigation We reworked our strategy for Organic
team and support infrastructure schemes like farm ponds, Cotton and put the expansion of farm area
on - adoption of an intensive check dams, and drip on hold. The future of Organic Cotton Farm
engagement model with farmers irrigation by mobilising project would depend on availability of
to ensure authentic produce external funding support genuine seed and demand for Organic
Cotton from customers

The Road Ahead Action Plan 2016-2020

The term 'Organic' has been widely • Research and commercially develop of genuine organic seeds
used, misused and abused to an
extent that now the term itself has • Enhance farmer income and foster social development
become suspect. In 2014-15, after • Encourage sustainable irrigation practices
recovering from the widespread
contamination that occurred in • Train, build capacity and implement organic farming practices
organic cotton farms, we decided
• Add new dimension and work stream to strengthen genuine produce
to go back to the drawing board
by ensuring availability of organic seeds
and chart out an action plan that
reinstates organic back to its old • Partner with external agencies for reinforcement
and trustworthy glory. (for e.g. Lindsay Corporation for irrigation)

28
 BCI COTTON
The Better Cotton Initiatives seeks to grow responsible cotton through carefully
controlled application of water and use of approved fertilizers and pesticides; thereby,
dramatically reducing the environment footprint of cotton farming.

Arvind is one of the largest implementation partners of BCI in India. We see great merit BCI is regarded as the stepping stone
in BCI as an intermediate step towards responsible farming because of advantages like: to Organic Farming.

1 Reduced
cost of
production
2 More
profit
per acre
3 Better nutrient,
pest & disease
management
4 Enhanced
water
efficiency
5 Improved
soil
health
6 Healthier and
more inclusive
community
7 Better work
ethics for
farm workers

We have formed learning groups to educate farmers on various techniques, enable them to harness economies of scale, and help
them to collaborate and share knowledge.

THE STORY
TILL NOW 2015-16
Defined a future-looking
The Road Ahead
roadmap for The LCA report from 2014-15 has
manufacturing of clean, already reiterated to us, the
contamination-free and potential benefits of BCI farming.
sustainable cotton in
We have worked out a five-year
India with the help of
2014-15 state-of-the-art farm
plan to take BCI ahead and deeper
into the Indian farmlands.
mechanisation and
LCA by PE International
irrigation techniques
demonstrated that BCI
scored significantly better Action Plan 2016-2020
than conventional cotton • Enhance yield & fibre quality, ensure
on all environmental safe handling of chemicals and build
aspects
2011-14 a reliable supply of clean cotton
from India
Expanded the BCI
• Improve water linkages and
programme to a larger
sustainable irrigation practices
area. Increased uptake of
BCI in the mills at • Train, build capacity and implement
Ahmedabad. Marketing BCI principles more robustly
of BCI cotton to other
• Work on child education, health, child
spinning mills in India
labour and forced labour

2010-11
• Add new dimensions to ensure
availability and traceability of cotton
First BCI bale produced • Partner with external agencies for
from India, from the Arvind
2009-10
reinforcement with
farm project in Akola Lindsay Corporation for irrigation,
'Better Cotton Fast Track Bayer for high-yield seeds, insecticides
Programme' launched as & pesticides and John Deere for
an independent mechanised sowing & harvesting of
investment vehicle the cotton crop
managed by IDH (the
Sustainable Trade
Initiative).
2008-09 Arvind joins BCI as an
implementation partner.
BCI established as a global,
Starts implementation of
not-for-profit organisation.
BCI in the Akola region,
Better cotton standards
in partnership with local
published
farmers. First BCI project
in India
29
EVALUATING THE BENEFITS FROM RESPONSIBLE COTTON
The best way to plan for the future, is to know exactly where one stands in the present. We have been supporting organic farming
since 2006 and have been a BCI implementation partner since 2008. So in FY 2014-15, we commissioned PE Sustainability Solutions to
conduct an environmental Life Cycle Assessment (LCA) comparison of three types of cotton we cultivate - conventional, BCI and organic.

THE OBJECTIVE OF THE STUDY WAS

TO QUANTIFY THE ENVIRONMENTAL
BENEFITS ASSOCIATED WITH
PRODUCTION OF ORGANIC SEED COTTON
AND BCI SEED COTTON AGAINST
CONVENTIONAL SEED COTTON USING LCA
APPROACH, AND ALSO IDENTIFY THE
ENVIRONMENTAL HOTSPOTS ACROSS
THE PRODUCTION PROCESS.
The assessment was done in line with the principles of ISO 14040/44 standard for the The table below represents the
different cotton cultivation routes and the primary data was collected from farming environmental impacts of one ton of
sites owned by Arvind Group for BCI cotton and organic cotton cultivation in the state seed cotton across the three systems of
of Maharashtra, India. The functional unit of the study is 1 ton of seed cotton at the cultivation under study: organic system,
farm gate. BCI system and conventional cotton.

Environmental Conventional BCI Cotton Organic Cotton

Impact Category Unit Cotton Cultivation Cultivation Cultivation

Acidification Potential kg SO2-Eq. 14 12 3

Eutrophication Potential kg Phosphate-Eq. 7 2 0.46

Global Warming Potential kg CO2-Eq. 731 435 295

Primary Energy Demand MJ 5,375 2,510 1,351

Blue Water Consumption kg 541,061 330,609 391,804

Note: 1 - The term 'potential' indicates that the impacts could occur if the emitted elements would (a) actually follow the underlying impact pathway and (b)
meet certain conditions in the receiving environment while doing so. 2 - Blue water is water that has been sourced from surface or groundwater resources

BCI shows 14% less acidification potential, 71% less eutrophication potential, and The results confirm that BCI and
40% less global warming potential as compared to conventionally grown cotton. It organic cotton production system
also consumes 53% less energy and 39% less blue water than conventional cotton. are extensive cultivation systems
that are well adapted to available
On the other hand, Organic cotton goes one step further by showing 75% less resources and natural conditions.
acidification potential, 77% less eutrophication potential, and 32% less global The result has encouraged us to
warming potential as compared to BCI. And although it consumes 46% less energy continue supporting BCI and organic
than BCI, it consumes about 19% more blue water. cotton with more fervour.

30
 case study

TAKING CHILD LABOUR

OUT OF FARMS
Challenge
Despite being the second largest producer of cotton in the world, India is still dominated by a large number of small
farms; usually less than 2 acres. This small size makes automation economically unviable for majority of the farmers.
The only option left is manual labour.

Cotton farms in India have also involved child labour during various stages of farming: sowing, weeding and cotton
picking. What makes child labour at farms different from other situations, is the fact that quite often the children
work on the farms owned by their own family. Although in such situations, the work environment is slightly better
than in conventional child labour, it is still robbing the children off their childhood and education. Child labour in
cotton farms also have an adverse health impact on children over a period of time.

Intervention
At the inception of the supply chain project of Organic and BCI cotton farming at Akola, we did a detailed study by
conducting field surveys in different villages, to analyse the issue of children working in the farms.

We have a strict
anti-child labour policy
at our premises.
We ensure zero child labour
at our organic and
BCI cotton farms.
To ensure its discontinuation, we set up a dedicated team which is based in the farming area to sensitise farmers
about the adverse impact of involving child labour, and benefits of education and schooling through:
• Regular training programmes, conducting events like street plays, essay competition, film screening,
children's summer camps, etc.

• Formation of child group and its awareness training, learning group awareness training

• Interactions with labourers to ensure that they don't send their children to work in farms

• School visits & interaction with school authorities

Our procurement policies are in line with our no child labour policy. We are also implementing mechanisation projects
to reduce manual labour, thus impacting child labour. Regular visits and monitoring at the farms and the schools,
ensure that no child below 18 years is employed in the farm.

31
 Outcome

there has been

a marked increase
in school attendance,
especially during
the harvest season.

32
 THE BEST INVESTMENTS
ARE IN ASSETS
YOU DON'T OWN
V I N AY B A S S I
Group Head - HR & IR

33
34
 EMPLOYEES

To say that, good talent is a necessary condition for success across each of the
triple bottom-lines, is like repeating a well-known truth. The key lies in how well
one executes what is universally known to be fundamentally right.

At Arvind, talent management strategies are developed

in alignment with business strategy,
rather than in response to it.
This collaborative approach ensures a tighter fit among talent, job profile,
expectations and delivery. Integral to this purpose led employment is a culture
that respects individual needs and ambitions, fosters a high standard of living
and encourages work-life balance.

8,963
MAN-DAYS TOTAL TRAINING GIVEN
DURING THE REPORTING PERIOD

56%
DECREASE IN INJURIES
BETWEEN FY 2014-15 & FY 2015-16

PROJECT NEEV
A COMPREHENSIVE, COMPETENCY-BASED
STANDARD FOR IDENTIFYING EMPLOYEE
POTENTIAL & STRUCTURING CAREER GROWTH

BS OHSAS
18001:2007
CERTIFICATION FOR SANTEJ UNIT

35
TRAINING & DEVELOPMENT
We are committed to the growth, development and well-being of our 31,000+ workforce. Towards these goals, we design and
implement comprehensive employee engagement and development programmes, foster a conducive work environment, and
consistently provide opportunities for professional and personal development.

Training and development programmes at Arvind are formulated to help employees acquire new
skills, sharpen existing ones, and evolve as professionals, enhanced performance and productivity,
boost employee satisfaction, which in turn increases retention.

5,014
4,863
4,503

Training Snapshot* FY 13-14 FY 14-15 FY 15-16

3,949
3,105

Total Training Days 75 128 243

1,971

No. of Training Programmes 53 84 108

No. of Participants in 450 186 142

Outbound Training Programmes 2013-14 2014-15 2015-16

27% increase in the man-days of training given in FY 2015-16 Man-days of training given
Total no. of participants
*For officer level employees only

TO GIVE OUR WORKERS A LARGER SENSE OF PURPOSE AND ENCOURAGE THEM TO ASPIRE
FOR MORE, WE REFER TO THEM AS FRONT LINE MANAGERS (FLMS).
36
 DEVELOPMENT PROGRAMMES
When we develop potentials that have never been tapped, we unlock productivity and passion that has never been seen. We
conduct a wide array of development programmes across the organisational hierarchy.

Pragati - Development Continuing Samvad - Dialogue for

Programme for Supervisors Education Development

Pragati helps supervisors set Towards the end of 2015-16, we An initiative aimed at identifying and
expectations of their roles and introduced a progressive continuing creating a high potential talent pool.
responsibilities, manage self and others. education policy for all management Every year under Samvad, we identify
The programme enhances self- cadre employees. It encourages them to and assess select employees from senior
awareness, inculcates skills to manage take-up higher studies and thereby management and take them through a
Front Line Managers (FLMs) at the upgrade their knowledge and skills. structured development journey.
workplace, helps develop better The programme is at a nascent stage
The programme includes sharing
relationships for better results and right now, but we expect it to grow in
individual reports and feedback to the
boosts overall capability to become the coming years.
employee by a coach. It also includes
effective in their current role.
26 employees are currently creation of a development plan and
We plan to train 450 supervisors enrolled for new higher-education talent review with the business head.
under Pragati. In 2015-16, we courses under this programme
trained 20.

iRise - Junior Manager iGnite - Manager iLead - Leadership

Development Programme Development Programme Development Programme

iRise is focused towards enhancing the iGnite equips managers with the These programmes aide the senior
overall capability of individual requisite competence to achieve the management executives to hone their
contributors and shift managers and help strategic objectives of the organisation, leadership skills, develop an attitude for
them perform their role more effectively. build skills for effective problem solving success, and mould them into able
The initiative is termed as iRise as it and decision making, plus develop professionals who can positively
signifies the rise of an individual in terms interpersonal and leadership skills for transform business results.
of undertaking more responsibility by better team management.
becoming more accountable to the 40 leaders undertook iLead in the
organisation. 60 managers were trained under reporting period.
iGnite in 2014-15. In 2015-16, an
43 managers were trained additional 34 managers were
under iRise in 2015-16. trained.

37
NEEV – LAYING
A STRONG FOUNDATION
FOR PRODUCTIVITY

In the reporting period, we INDUSTRIAL RELATIONS

embarked on a new employee-
excellence journey with the
introduction of NEEV - a
comprehensive, company-wide,
competency-based standard to
The core objective of the
identify employee potential,
grade their performance, and
industrial relations function
chart for them a structured career
growth plan. is to strike a harmonious
As part of the NEEV Framework,
employees have been segmented balance between personal
in five distinct groups based on
their organisational roles. and organisational goals.
1. Strategic leaders CEO / CXO /
Corporate Function Heads
Well-meaning intent,
2. Functional leaders Leading
Large/Multiple Functions,
direct reportees to CEO, CXO,
fairness and transparency
Specialists

3. Team managers Managers

are the key enablers in
who have first level managers
reporting into them this journey.
4. First level managers Managers We have recognised worker unions at both our manufacturing operations – Naroda and
who manage one or many Santej and our Industrial Relations (IR) department organises a variety of events and
Independent contributors activities across locations to engage with the FLMs and keep them enthused.

5. Individual contributors
Managing work in
individual capacity

Requisite levels of competencies

that an employee must possess
under each of the group have
been well-spelt out. The
competencies provide an
employee behaviour map, as well
as identify skills that will be
valued, recognised and rewarded.
Training need identification,
appraisal and career progression –
all stem from the employee's
competency proficiency level.

Introduced during the reporting

period, NEEV will be cascaded
across the organisation in a
phased manner.

38
 We have structured policies and processes under the various management standards pertaining to prohibition of employment of
child & forced labour; freedom of association and right to collective bargaining; grievances redressal mechanism; working hours;
remuneration; health & safety; discrimination; engagement & welfare initiatives; disciplinary proceedings etc. All such policies &
processes have been communicated to all stakeholders (internal / external) in most amicable way. Also, we review the same from
time to time and communicate the changes, if any, to all concerned stakeholders well in advance.

I N I T I AT I V E
A TEST OF IR
EFFECTIVENESS UPGRADATION OF FLM CANTEEN AT NARODA
AT SANTEJ During the reporting period, we completely overhauled and upgraded the FLM canteen
at Naroda.
Our Santej facility operates
• A larger and better designed seating area
around the clock and in three
shift operations. To keep the • Enhanced hygiene standards in the cooking area as well as the seating area
operations running smoothly, we
• Card-based access system for better management and accounting
have dedicated Industrial
Relations professionals to
oversee the shop-floor activities
on a continuous basis.

In addition, division-wise union

representatives of the Textile
Labour Association are also
on-hand 24x7 to ensure smooth
operations and effective redressal
of grievances.

Yet sometimes, despite our best

intentions and robust practices,
there are undesirable outcomes.

In one such instance, a section of

the FLMs suddenly went on a
strike at the Santej plant, in
October 2015. On closer
examination, it was found that
the agitation was being fuelled
by an external labour union that
had no legal affiliations with the
FLMs at Santej. The strike was
thus deemed illegal by both the
HUMAN RIGHTS
state government as well as the To protect human rights is to ensure that people receive decent, humane treatment.
honourable industrial tribunal. We have a well-defined human rights policy that upholds the human rights of our
But while the judiciary was taking employees and FLMs. We don't discriminate against our employees and they are free
its course, the IR team swung into to join unions or association for the protection of their interests.
action and initiated a dialogue
with the FLMs on strike. The issue
was amicably resolved in two We do not employ children at workplaces and do not use forced labour in
days with the FLMs coming back any form. During the year, there were no instances of reported human
to work unconditionally. rights violations or gender discrimination.

39
SAFETY

We continuously invest in the safety and

health of our FLMs as we believe that
people are our biggest assets and
their well-being is first on our priority list.

The Santej unit received

BS OHSAS 18001:2007
certification during
the reporting period.

In the textile industry, due to the inflammable nature of our raw materials, fire is a key risk. A comprehensive fire protection system
has been implemented at all our facilities with the objective to prevent fire in the first place and in case of any incident, mitigate its
spread and extinguish it at the earliest.

Additionally, we have introduced SOPs that are common to many industries, but are not usually seen in textile facilities. This includes
work permit systems, use of industry-grade Personal Protection Equipment like safety shoes and masks. We also iterated our focus
on safety to everyone in the production line by starting a series of weekly safety meets to take stock of on-ground situations and
address them in a timely manner.

Safety Performance FY 13-14 FY 14-15 FY 15-16

Injuries 861 702 429 Between FY 2014-15 & FY 2015-16,

no. of injuries no. of man-days
Man-days Lost 16,100 13,327 8,010 came down by lost decreased by
Frequency Rate

Severity Rate
9.06

169.52
6.72

127.72
4.09

76.46
56% 42%

40
 case study

A CLEANER, HEALTHIER &

SAFER WORKPLACE | naroda
Challenge
To boost safety, productivity and overall morale by enhancing cleanliness at workplace and at the
shop-floor where thousands of employees and FLMs work every day. The challenge is compounded
because the shop-floor is inhabited by three sets of FLMs as the manufacturing facility operates all
three shifts.

Intervention
We launched the 'Swachh, Swasth, Surakshit' (Clean, Healthy, Secure) programme at Naroda with
an aim to:

Improve cleanliness/ Rewards and Improve

hygiene and bring in recognition for quality, the FLMs'
greater process discipline 6S, ideas/suggestions morale and
on the shop-floor and attendance ownership

Healthy competition is a continual source of motivation and therefore we gamified cleanliness and
safety. Created teams and introduced a system of audit, points and rewards.

• Multiple teams have been formed across various processes

• Each team has a supervisor or a foreman whose job is to ensure that the team maintains optimum
levels of cleanliness, safety and quality in their respective shop-floors

• Regular as well as surprise audits are conducted and the groups are given points on all three
aforementioned parameters

• Based on the scores and feedback of department heads, every month the best performing team,
the best 6S zones and the best individual contributors are identified and felicitated with
certificates and a rolling trophy

41
 Outcomes

Cleaner
surroundings
Improved enthusiasm
for work
Greater ownership of
their own workspace
Enhanced maintenance
schedules

42
 case study

Combating Fire Incidents

SANTEJ
Challenge
In textile factories, most of the materials - raw materials, semi-finished and finished goods are
flammable. Even the processes are prone to instigate fire. It is therefore of utmost importance that fire
prevention is well-implemented and in the unlikely event of fire, well-thought out protection is available.

Intervention
A state-of-the-art fire protection system has been installed at our Santej facility. It includes equipment
to actively detect fire and well-established systems to control a fire if it were to ever occur. Also part of
the exercise was the rationalising of components to curb the spread of the fire and training the staff.

Salient Points of the Fire Protection System

• Extra vigilance to manage fire triggers viz. phasing out loose electrical wire.

• Strengthening access to firefighting equipment and reinforcement of mock drills

• Mutual aid with Vadsar Air Force Base to assist one another in the event of any emergency

• Conducting various fire awareness drive viz. fire demonstration and training

• Installation and revamping of fire hydrants systems as well as interconnection of

fire hydrants systems

• Segregation of materials incompatible with one another

• Implementation of permit to work system for hot work fire safety

STEAM INERTISATION SYSTEM

Steam inertisation system has been installed at
various processing machines at Santej facility to
mitigate the spread of accidental fires. Extra steam
lines measuring 1-inch in diameter have been grouped
from the main steam lines so that even a layman can
use them in the event of fire.

Earlier, the facility witnessed frequent fire incidences

in the processing machines due to their temperature
exceeding 150°C.

43
 Outcome

65.75%
reduction in Fire incidents

in fy 2015-16 as against fy 2014-15

44
 case study

SAFETY & EMERGENCY

PREPAREDNESS | santej
Challenge
The process of converting fibre into fabric is a complex one and does expose the workforce to a number of occupational
hazards. Thus, for our Santej unit the commitment to achieve 'Zero Accidents' was followed with a checklist of challenges
right from ensuring robust safety policies, processes, and infrastructure to embedding safety awareness among workforce.

Intervention
The only way to bring about a lasting impact in our safety performance, is to root out hazards at the bud. A
comprehensive safety management plan has been implemented at Santej which incorporates best practices to address
all key enablers of safety excellence: policies & processes, infrastructure management, awareness & training,
implementation & audit, emergency preparedness.

Salient features of safety management

• Rigorous safety inspections covering all units at least once in a month

• Implementation of 'permit to work' system for high risk activities viz. working on heights, Confined space entry, etc.

• Conductance of safety committee meeting for deliberation on various safety issues, and inspection reports

• Corrective/preventive actions on scores of unsafe conditions/actions

• Extensive trainings to FLMs as well as staff employees in accordance with their need

• Counselling of ER members on various safety aspects

• Provision of requisite Personal Protective Equipment

• Comprehensive accident investigation system to find out root cause for preventing accident reoccurrence

45
 STRENGTHENING OF
WORK PERMIT SYSTEM
Various ongoing maintenance and construction related
activities were major contributors to the overall
accident numbers. We implemented a work permit
system during the reporting period, which helped us
govern the safety measures that are required for a
particular task according to the risk analysis carried out
by Safety Department for that particular work.

We also implemented 'Lock-Out-Tag-Out' procedures

for any maintenance activity to be carried out in
hazard prone areas.

INTRODUCTION OF WEEKLY
MEETINGS & DEPLOYMENT OF PPE
Upon analysis of several incidents from 2013-14, it was
observed that a lot of injuries could have been avoided
if the workmen were adhering to the stipulated use of
PPEs. One of the key intervention implemented over
2015-16 was strict enforcement and counselling on
adherence to PPE usage which included upgrade of
several PPE to better quality materials - especially
safety shoes, ear plugs and masks.

Additionally, a weekly meeting of all the department

heads is being organised to discuss the accidents and
incidents during the past week, their investigation
reports and corrective action taken in view of the
incidents.

These two initiatives led to improvement in working conditions by eliminating unsafe conditions as well as PPE
helped in reduction in injuries.

Outcomes

55.08%
reduction in aFR
52.25%
reduction in ASR
in fy 2015-16 as against fy 2014-15

AFR - Accident Frequency Rate | ASR - Accident Severity Rate

46
 case study

UPGRADATION OF OCCUPATIONAL
HEALTH CLINIC | santej
Challenge
The occupational health centre at Santej was capable of handling only primary treatments and in case
of major injuries, ailments or emergencies, the patients were required to be shifted to other health
facilities in Kalol or Ahmedabad city which are approximately 45 minutes to one hour away.

Intervention
During the reporting period, in accordance with the Rule 68-U of Gujarat Factories Rules-1963, we
upgraded our Occupational Health Centre (OHC) into a state-of-the-art facility that can also cater to
more severe medical emergencies.

Facilities at the OHC

• A ward of 6 beds, and medical stock to treat various occupational injuries and ailments

• Equipment to conduct advanced tests like pulmonary function, ECG, Audio metric, Vision test etc.

• A medical team consisting of a full time as well as part-time doctors assisted by a

nursing staff of 7 members.

• An additional ambulance with all requisite medical emergency equipment

• In-house medical checkup (Pre-employment, Periodic) of all employees

(Approx. 1,500 employees completed till date)

• Availability of first aid treatment with cardio pulmonary resuscitation to patient

suffering heart attack, electrical shock

• Treatment of occupational injuries with minor operation i.e. Stitches on cut wound, first
line treatment of head injury, burns injury treatment, etc.

• Provision of transferring serious patients through ambulance

We have also opened the usage of this upgraded OHC to workers of neighbouring factories.

47
 Impact

Today, the OHC provides treatments of

varying degrees and severity to about

1,000
employees per month - not only
work-related, but also for
regular ailments.

48
 EMPLOYEE SNAPSHOT - ARVIND LIMITED
FY 2014-15 FY 2015-16

Total Workforce 27,512 30,742

Workforce by Level of Employment
- Officers (Senior, Middle, Junior Management) 3,474 4,083
- Others (Short Term Contracts, Trainees etc.) and 24,038 26,659
Workmen (Excluding Fixed Term Contract)

Workforce by Type of Contract

Permanent Employees 27,512 30,742

Workforce by Gender
Male 20,046 21,880
Female 7,470 8,884

Workforce by Age Group (Officers only)

<30 years 930 1,290
30-50 years 2,207 2,494
>50 years 341 303

Attrition Rates
Officers 23% 22%
- Senior Management 14% 14%
- Middle Management 11% 9%
- Junior Management 26% 24%

Attrition Rates by Gender (Officers only)

Male 22% 21%
Female 38% 30%

Attrition Rates by Age Group (Officers Only)

<30 years 37% 32%
30-50 years 18% 17%
>50 years 21% 16%

Attrition of Workforce (Non-officers) 55% 45%

49
50
 SOCIETY

OUR CSR VISION

To impact positively, the quality of life of people,

through initiatives of social,
economic, health, educational,
infrastructural, environmental
& cultural advancement.
Just like democracy, for a company to be sustainable, it has to be of the people and for the people. So while 'of the people' is our
unwavering employee focus, 'for the people' is our unflinching commitment to local communities and the society at large.

Our approach to Corporate Social Responsibility (CSR) is based on our conviction that corporations and society are interdependent.
Social responsibility thus permeates all business functions creating a 'corporate social integration'.

We are committed to put in place a

strategy to ensure financial sustainability
ARVIND FOUNDATION
to all our CSR initiatives. We plan to
achieve this through creation of a large
corpus fund over a period of time.

In August 2015, we incorporated Arvind

Foundation as a Section 8 Company to
URBAN CSR RURAL CSR
act as the umbrella organisation to all
our CSR efforts.
SHARDA Trust NLDRF
In line with Section 135 of
Companies Act, 2013, we
Shree Chandraprasad
spent INR 72.7 million on our Part of
Desai Memorial
Agri Initiatives
CSR activities during FY 2015- Foundation (SCDMF)
16. This includes INR 51.4
million invested in the corpus
of Arvind Foundation. CKNL Trust

51
SHARDA TRUST AND OTHER TRUSTS
The Strategic Help Alliance for Relief to Distressed Areas Trust (SHARDA Trust), set up in 1995, is the organisational base for our urban
CSR programmes. As a registered public charitable trust, the broad objective is to improve the quality of life of the urban poor in India.

S H A R DA T R U ST ’ S M O D E L

Partnership with Supportive Innovative Monitoring,

the Local Government Infrastructure Method & Materials Evaluation & Tracking
• MoU with local school board • Upgrading school infrastructure • Teaching Eng, Comp & Maths • Teaching days, schedules,
curriculum, tests & evaluation
• MSB allows use of • Establishing quality computer lab • Teaching approach based criteria pre-defined
infrastructure & provides on student’s strength
electricity free of cost • Projection facility (LCD monitor) • Tracking student’s
• Real life example, attendance & performance
• Providing teaching hours • Internet for faculty & students practical knowledge
• Ergonomic furniture • Following up irregular &
• Subject’s reinforcement weak students
• Neat and clean classrooms • Teaching by trust’s teachers • Interaction with parents
• Using computers in teaching

NAROTTAM LALBHAI RURAL DEVELOPMENT FUND (NLRDF)

Working on programmes of social renewal for rural and tribal poor since over 35 years.
It is structurally working under a Board of Trustees, the Chairman of which is directly
responsible for the overall policy direction and guidelines for the trust. NLRDF carries
a o a
out operations in various sectoral areas like Education & Skill Building, Agriculture & a a
Animal Husbandry, Rural Infrastructure and Health & Well-being.

Education & Agriculture & Rural Health &

Skill Building Animal Husbandry Infrastructure Well-being
Adult education, Irrigation projects, horticulture, Rural electrification Medical services, health care, nutrition,
vocational training of fodder development, animal (street and agriculture sanitation & disease control, AIDS
handicapped persons, husbandry, biogas plants, related), roads, awareness and prevention, women
non-formal education strengthening rural industries watershed development empowerment, women & child
development, relief & rehabilitation
after calamities

SHREE CHANDRAPRASAD DESAI MEMORIAL FOUNDATION (SCDMF)

Based in Bapunagar, Ahmedabad conducts vocational skill development courses to

enable social, economic and cultural development of the industrial areas. It has so far
trained about 250 urban youth and has facilitated placements for a majority of them.

52
 1,300+
STUDENTS COVERED
THROUGH THE GYANDA
PROGRAMME IN FY 2015-16

53
FOCUS AREAS OF SHARDA TRUST
We believe in spearheading programmes, and not projects. The objective is to institutionalise systemic change, not symptomatic
band-aid. We aim to make a lasting difference to the lives of people, even if it sometimes takes years in the making.

Our corporate headquarters and two of our biggest manufacturing facilities are based in and around Ahmedabad, and thus most of our
initiatives are centred in these regions. To ensure that we don't spread ourselves too thin we have zeroed in on three impact areas:

1
EDUCATION
2
PRIMARY
3
DEVELOPING
HEALTHCARE VOCATIONAL SKILLS

EDUCATION
Education is the most powerful tool in the fight against poverty and social evils. An educated generation will be the last generation
in poverty. It is also a gift that once given stays with the recipient for their entire life.

GYANDA PROGRAMME
Broadly, there are three kinds of
education models:
• Formal schools set up by local and
national governments

• Informal education facilitated through

volunteers, educationist or NGOs

• Tuition classes that supplement school

education and concentrate on specific
subjects

Setting up schools or tuition centres

Leveraging existing infrastructure
involves large investment in land and
infrastructure. The quantum of Gyanda has been specially designed to supplement the education of children studying
investment results in few schools and in Municipal Schools and support them to complete the school and college education.
limited impact. Volunteering efforts The aim is to improve their academic performance and overall personality while
may be noble in intention but are ensuring that children don't drop out and complete their basic education from classes
limited in longevity. 5 to 12. A financial support programme has also been developed to aid
underprivileged students.
Mindful of the limitations of each of the
education models, the education
experts at SHARDA Foundation designed
Approach
the Gyanda programme - a new hybrid • Increase the enrolment of children of the urban poor into the programme
model that is mix of supplementary
• Inject technology in municipal schools by providing computer laboratories,
education and formal school set-up.
projection facilities and internet access for staff and students in schools
Arvind Ltd. has been supporting the
Gyanda Programme since its inception • Lay emphasis on efficient and effective functionality of the programme, leading to
in 2006. substantial impact in student lives

The Gyanda programme is unique because no other supplementary

education model tracks the performance of all its students while
maintaining direct contact with the parents for the entire
schooling journey of 6-8 years and beyond for higher education.

54
 Interventions
Primary School Programme This programme works with the students of class 5, 6 and

1,000+
7 studying in a number of municipal schools in Ahmedabad through two-hour long
support classes on Gujarati, Maths, English and Computers conducted by SHARDA
teachers within the municipal school premises and also through an education support
centre where students from multiple schools attend. students covered

380
Secondary School Programme The academic curriculum expands tremendously after
class 8 and requires a lot of personalised attention and subject-wise coaching. We
conduct 3-hour classes for these students after school hours. Currently, there are
2 centres where these classes are conducted. students from various schools

Admission Facilitation & Financial Support We facilitate admissions in higher classes in

various schools as per the merit and choice of the students. Exceptions are also made
for students who have shown great interest and perseverance in studies. We also
provide comprehensive support which includes payment of education fees, financial
405
students sponsored across
support to buy uniforms, books and stationery. standards 8 and 12

Scholarships to Pursue Professional Degrees We even lend financial support to

meritorious and needy students for pursuing higher education in professional streams
like commerce, engineering, nursing etc.
39
students were pursuing graduation
in their field of interest

Impacts
In 2016, Gyanda completed a decade of public service, and we undertook an extensive study to gauge the impact of the programme
on the lives of the students and the community they come from.

MAJOR • A comparison of the successful Gyanda students with their peers (siblings/cousins) revealed that
there was a 70% drop-out rate amongst peers not exposed to Gyanda.
FINDINGS
OF THE • Students who dropped out ended up as manual labourers, doing unskilled jobs or serving as
household help, etc. The Gyanda students who continued their education are on their way to
STUDY become Engineers, Teachers, Accountants, Psychological Counsellors, in the field of IT and similar
careers in the organised sector.

• All female peers who dropped out, were married between the age of 14-19. Gyanda girls, have
continued their study and intend to marry at an appropriate age of 23-24.

55
 If I would have not been
educated, then I would
have found it difficult to
A major difference has live amongst the educated
come in me through people staying around me.
Had SHARDA Trust not education. Previously, And, I too would be
been there to support me, I used to feel that I was vending vegetables like
I would have got married useless. The school and my parents.
after class VII and might SHARDA Trust teachers Komal
have had 2 children by gave me confidence. General nursing student at
Civil Hospital, Ahmedabad
now like all my female Now, I am able to
cousins. I now aspire to be recognise myself and
a psychological counsellor feel strong in society.
and I want to indulge in
Afsana
social work and do MA (Sociology) Student,
wants to be a teacher
something for women
Ruksana
Pursuing MA in Psychology
at LD Arts College

Future Plans
Going forward, we want to identify,
assess and prevent drop-outs before
they happen. One way of doing this is to
monitor gradual drops in marks scored
and attendance. For this, we are
working on a software that will track
each student and monitor academic and
attendance data in real time.

We plan to integrate a Finishing School As of 2015-16, 1,300+ students are part of the Gyanda Programme.
Programme in Gyanda. This programme
will work on improving their
We intend to expand this to
presentation skills, confidence and other
life skills required to excel in the
6,500 students by 2020.
professional world. This would make up approx. 10% of the school-going population of Ahmedabad.
56
 PRIMARY HEALTHCARE
Healthcare in India continues to be a trade-off between availability, affordability and
quality - if it is available and affordable, the quality is suspect; and if it is available and
of good quality, it is seldom affordable. Even in urban areas, there are pockets where
healthcare services are not easily available or affordable.

Keeping this in mind, SHARDA Trust signed an MoU with Swasth Foundation to set up
primary health centres, called Arvind Clinics, in the urban slum areas of Ahmedabad.
Swasth is Mumbai's largest non-governmental provider of primary healthcare and dental
care and has a rich experience of working in diverse business and social scenarios. Swasth Foundation

ARVIND CLINICS
The Arvind Clinics are designed to act as one-stop solutions for all primary medical needs of people. These clinics will provide following
services at highly affordable charges:

Doctor (consultation) A trained doctor will be available to diagnose the ailment and
differentiate between minor cases and severe ones
As per our
Dental care It has been found that dental problems is one of the major ailment-groups calculations, the
in impoverished areas. A dentist with a basic dental engine set-up will be available to
handle such cases
model will cost a
patient about INR 100
Diagnosis (Pathological Tests) Many a time, pathological tests end up becoming
costlier than doctor's consultation. Moreover, when the doctor prescribes a test, there
with diagnosis and
is always a chance that the patient will neither get them done due to cost constraints, three days' worth of
nor will they come for follow-up visit. To prevent this, Arvind Clinics will provide in- medicines - which is
house diagnostic services at very affordable rates.
about one-third of
Drug (Strip Packed Quality Medicines) For minor ailments, the medicines will be what they are
provided through a pharmacy within the clinic set-up
spending now.
Daytime Care Provision for daytime observation, when required

Three Arvind Clinics are expected to be functional in Ahmedabad within a period of 18 months,
starting from April 2016. In all, 10 such centres have been envisaged for the city. Each centre is
expected to serve about 40 patients per day - thereby serving 10,000 - 12,000 patients every year.

57
DEVELOPING VOCATIONAL SKILLS
The youth are the workforce of today and growth engines of tomorrow. But for them to
fully actualise their potential, they need to be equipped with the right knowledge and Our journey is skill building
skill set to be able to contribute to the growth of the nation. as a social initiative, has only
just begun. But we envision
Our Youth Advancement Programme, one of our newer initiatives, aims to provide the
rich dividends from these
youth of Ahmedabad a learning platform to acquire knowledge and skills. It is carried
forward in four phases:
programmes in the years
to come.
IMPART KNOWLEDGE | DEVELOP SKILLS | INCULCATE VALUES | MEASURE PERFORMANCE

To begin with, we are spearheading programmes like:

Basic English | Computer Familiarisation | Musical Instrument Training

Dashboard of Youth Advancement Programme | 2015-16

Programme No. of Batches No. of Participants

Total
Basic English Level - 1 3 23 Batches
Computer Familiarisation Programme

Musical Instruments
3 34
44
Keyboard 4 23
Total No. of
Tabla 4 6 Participants
Harmonium
Guitar
Drum set
4
18
8
4
65
14
169
58
59
STRADDLE THE VALUE CHAIN WHERE
VALUE CREATION
IS HIGHEST
J AY E S H S H A H
Wholetime Director & CFO | Arvind Limited

60
 In March 2015,
Credit Analysis and
Research Ltd.
(CARE) awarded

A1+
rating
Capital is the fundamental building At Arvind, we put money where our
block of any corporate. A key resource heart is and follow a 'financial prudence
essential for a business to start up, scale first' strategy. For 85 years now, we have
up, branch out, think beyond as well as been using different financial tools to
to Arvind Ltd.'s
leap forward. access capital for expansion and growth.
commercial papers
worth WE CAREFULLY INVEST IN EXPANSION OF OUR CAPACITIES,

INR 7 NURTURING OUR TALENT POOL, ADVANCING IN TECHNOLOGY,

EMPLOYMENT GENERATION AND GIVING BACK TO THE
billion COMMUNITY AS WELL AS THE ENVIRONMENT.

This is testament to
the strong growth
potential associated
with our diversified
brand portfolio and
the widespread retail
distribution network.

Our pursuit of
profits is powered
This 360° asset building strategy not just liberalisation, to fuel the growth of
by an ensures enough muscle to manoeuvre
through the diverse expectation of our
denims and high quality fabrics in the
international market. We made the first
uncompromising clients, maximise value for our
stakeholders and maintain leadership
direct access in international debt
market in 1995-96 to raise USD 15
focus on integrity, position but also enables us to pay key
contribution to the growth of textile
million term loan to build our zero-
discharge facility at Santej, Ahmedabad.

inclusivity and industry as well as to the country's

development.
Following debt restructuring in 2001-
2002, we achieved the highest

innovation. Time and again we have used capital for

profitability in our history till then.

bringing innovation to textile industry Money has been powering our growth
besides using it in our daily operations. even today, as we move from our
Starting with a share capital of N2.5 capital-intensive textile business to an
million in 1931, we floated a Euro issue asset-light, consumer-centric model,
of USD 125 million in 1990s after which focusses on brands and retail.

61
8%
growth in
5%
growth
5%
growth in
E 51,947 mn
economic
revenues in profit Operating value
before tax EBITDA distributed
All figures for FY 2015-16

ECONOMIC VALUE
Strong financial performance is key to sustainable growth. The more value we generate,
the more we can distribute to our stakeholders and the more we can invest in sustainable
innovation. Value creation is hence material for Arvind as it directly affects our
stakeholders including employees, local communities, and investors.

Here is a summary of our economic value generated, distributed and retained in the
reporting period.
in INR million

Units FY 13-14 FY 14-15 FY 15-16

Economic Value Generated (A) 48,599.10 53,529.40 55,135.80

Economic Value Distributed Over the last 5 years,
Operating Costs 36,460.60 39,841.90 41,015.60
Employee Benefits and Wages 5,088.40 5,710.70 6,519.00
we have achieved
Payment to Providers of Capital 2,964.40 3,200.60 3,111.20 robust revenue growth,
Payments to Government (Indian) 472 1,001.90 1,301.50 while maintaining
Economic Value Distributed (B) 44,985.40 49,755.10 51,947.30
margins, returns and
Economic Value Retained (A-B) 3,613.70 3,774.30 3,188.50
a stable leverage
Note: During the reporting period, we received government subsidies worth INR 222.1 million

We started with a
share capital of

H 2.5
million
in 1931

we floated a Euro issue of

USD125
million
in 1990s after liberalisation,
to fuel the growth of denims
and high quality fabrics in
the international market.
62
 Going ahead, over the next five years, Arvind's value creation agenda will be driven by:

Growth Profitability Business Mix Returns

Maintain 15% overall EBITDA growth in tandem Sharpen and Tight management
top line growth with top line expand B2C plays of capital employed

DIVIDENDS
Dividend pay-outs not only signal financial strength of the company, but also its
maturity in consistent sales and profits. In the reporting period, Arvind continued to We have been
recommended dividend to its shareholders.
consistently
FY 13-14 FY 14-15 FY 15-16
declaring dividends
23.50% 25.50% 24%
over last five years
(M2.35 per share) (M2.55 per share) (M2.40 per share)

R&D
In today's globally competitive market where organisations need to keep innovating, R&D becomes a crucial component in
developing new competitive advantages. We have two R&D centres - at Naroda and Santej, which fuel our drive for new products,
processes and technologies. These centres are fully recognised and approved by the Department of Scientific and Industrial Research,
Ministry of Science and Technology, Government of India.

Our R&D centres

are fully recognised
and approved by
the Department of
Scientific and
Industrial Research,
Ministry of Science
and Technology,
Government of India.
The details of capital and revenue expenditure incurred on
Research and Development are as under:
in INR million
R&D Expenditure (Naroda + Santej) FY 13-14 FY 14-15 FY 15-16

Capital Expenditure 239.7 152.6 82.3

Revenue Expenditure 149.6 160.7 250.4

Total Expenditure 389.3 313.3 332.7

63
BUSINESS-WISE PERFORMANCE
BUSINESS 2014-15 2015-16

WOVEN FABRICS
Our fabric business delivered strong Achieved 8% growth in volume at Achieved 4.5% growth in volume at

112 116.9
growth despite volatile external
environment.

million meters million meters,

- highest ever volume till then. and 5% increase in revenues.

The average price realisation per meter The average price realisation per meter
grew by 1%. Driven by both increase in remained flat as compared to last year.
volume as well as selling price, the
revenue grew by 9%.

GARMENTS
Garments, which is part of Arvind's
verticalisation strategy, continued its
growth momentum; the revenues will
3%
Registered revenue growth
24%
Registered revenue growth
likely be higher next year with expected
commencement of full scale operations The volume grew by Arvind Goodhill Suit Manufacturing

26%
at the upcoming plant in Ethiopia. Private Limited, the joint venture company
set up to manufacture suits, grew from

however, average price realisation fell

by 19%. This is on account of changing
product mix.
A150 million
in 2015 to

A490million
in 2016.

64
 BUSINESS 2014-15 2015-16

DENIMS
We stand among the largest denim Witnessed muted growth in volume at Witnessed de-growth in volume to
manufacturers in the world, yet
experienced muted growth in the face
of bottlenecks in production.
106
million meters
101
million meters,
as well as in revenue by 3%.
The average price realisation
per meter though grew marginally. This is on account of bottlenecks in
capacity utilisation due to changes
in product mix. The average price
realisation per meter grew marginally
during the year, partially due to
conscious effort to avoid low margin
product categories.

KNITS
This business segment posted an Registered a significant growth of Continued to demonstrate high growth

32%
encouraging growth graph. Future trajectory and registered a growth of

10%
looks even more promising because the
business is expanding its capacities in revenue
following the footsteps of woven fabric in revenues
business.

VOILES
The reporting period was a mixed bag Registered a revenue growth of Registered a decline in revenue by

10% 4%
for the Voiles business.

LOCAL PROCUREMENT AND HIRING

Sustainable and responsible local In the reporting period, almost all our India. This is because quite a few of our
procurement is one of the methods significant (top ten by monetary amount) customers demand for particular
we use to build a resilient supply chain supplies were sourced domestically (i.e. varieties of cotton like Egyptian,
and bring about a significant social from within the country). Australian and Brazilian owing to their
and economic contribution to the special characteristics. Nonetheless, we
community. By procuring locally, we We also encouraged and supported continue to engage local talents to
are doing a lot of things together: we employment of people from within process these cottons.
are creating employment for the nearby communities. Our senior
community's workforce, developing management consists entirely of Indian Moreover, we are also collaborating with
the skill base, creating industrial citizens, and our employees and local farmers and technology companies
diversity and growth by generating workmen are predominantly from the to replicate cotton of similar qualities
demand, supporting sustainability of communities where our manufacturing within India in the coming years.
businesses and economy through facilities are located.
supply of goods and services, and While local procurement is something we
alleviating environmental concerns by deeply believe in, we still have to source
reducing distances. a sizeable quantity of cotton from outside

65
WE ENCOURAGE AND SUPPORT

EMPLOYMENT
OF PEOPLE FROM
WITHIN NEARBY
COMMUNITIES

66
 WATT IS SAVED
IS EARNED
SUSHEEL KAUL
CEO | Lifestyle Fabrics, Knits & Woven Fabrics

67
68
 Ecological imbalance, sluggish pace of progress, increasing energy costs, and spiralling
health issues - the implications of use, overuse, and abuse of energy are not just
hindering the environment but also the business and the society.

At Arvind, we believe that energy is both an enabler and a bottleneck for business
growth. While it largely remains as an inimitable resource, the demand-supply deficit
may cause hiccups in the long-term business continuity.

Over the years, we have been successful

in improving our energy productivity by
investing in energy efficient processes
and practices. The aim is to entrench a
'continuous conservation culture'.

60,400 kWh
CUMULATIVE POWER SAVINGS IN BENGALURU THROUGH
DAYLIGHT HARVESTING SYSTEM - FY 2014-15 AND FY 2015-16

3 million kWh ANNUAL POWER SAVING THROUGH

INTRODUCTION OF LED LAMPS AT SANTEJ

ISO-50001:2011
certification
ARVIND IS THE FIRST INDIAN COMPANY TO GET THE CERTIFICATION
IN THE 'COMPOSITE TEXTILE INDUSTRY-DENIM FABRIC' CATEGORY

11.78%
DECREASE IN GHG EMISSIONS
(DIRECT+INDIRECT) AT NARODA IN FY 2015-16

69
We have put in practice a business-wide Energy Policy with a commitment to
continually improve the energy performance of all units of Arvind. Objectives and
targets are being set and reviewed to maximize the outcome of every unit of energy
consumed. To ensure effective implementation of this policy, we have also instituted
the Energy Conservation Cell which is overseen by the CEO.

OUR ENERGY STRATEGY

'LESS WATT PER METER'

This approach manifests into multiple tangible benefits.

1 2
In the reporting
Improved Reduced
period, our operating
Energy Security Energy Costs
unit at Santej
achieved an

3Productivity
Enhanced
4 Emissions
Lower encouraging reduction
in specific electricity
consumption.

As compared to
FY 2013-14, the energy
use per meter of
production reduced by

8%
at Santej.

Going ahead, we will continue to conduct energy audits for all units in order
to identify and implement further opportunities to minimise the wasteful use
of power. We also aim to add renewable power to our energy mix.

70
 at arvind, Energy productivity focuses on achieving greater
economic output from each individual unit of energy. This helps
achieve the dual objective of de-linking economic growth from
commensurate growth in our environmental footprint.

CONSUMPTION
ENERGY
At Arvind, we primarily depend on energy in three forms: coal, electricity and
Compressed Natural Gas (CNG). Accordingly, we measure the energy consumption of
our operations in two broad categories:

Direct Energy Indirect Energy

The energy we generate ourselves The electricity
through combustion of fuels such we purchase from
as coal and CNG the grid
Greater disclosures lead to better measurement which in turn leads to better
management. Starting this report, we have reinforced our energy accountability by

4,202.12
including several smaller units in to our reporting boundary.

4,164.18
TOTAL DIRECT ENERGY CONSUMPTION in TJ

Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 1,926 2,580 2,566

3,765.25

Denim (Naroda) 1,496 1,300 1,227

Garments Export Division (Bengaluru) 103.6 78 101.32

Arvind Cotspin (Kolhapur) 1.31 1.12 0.86

Ankur Textiles (Ahmedabad) 238.34 243 269 2013-14 2014-15 2015-16

Total 3,765.25 4,202.12 4,164.18

488,331

480,282

TOTAL INDIRECT ENERGY CONSUMPTION in MWh

Units FY 13-14 FY 14-15 FY 15-16

453,518

Woven & Knits (Santej) 227,184 244,157 262,913

Denim (Naroda) 125,060 137,797 114,057

Garments Export Division (Bengaluru) 5,864* 6,809 7,422

Arvind Intex (Ahmedabad) 40,430 39,979 38,314

Arvind Cotspin (Kolhapur) 31,764 35,736 34,932

Ankur Textiles (Ahmedabad) 23,216 23,853 22,644 2013-14 2014-15 2015-16

Total 453,518 488,331 480,282

*Excluding Electronic City data

71
SPECIFIC ELECTRICITY CONSUMPTION (in kWh/meter production)

SANTEJ UNIT NARODA UNIT

1.95

1.56

1.26

1.15
1.79
1.77

2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

Note: Two spinning units were closed at Naroda during FY 15-16;

resulting in reduced specific energy consumption.

EMISSIONS
The apparel industry accounts for 10% of global carbon emissions. As an integral part
The apparel industry accounts for

10%
of this industry, we assume our responsibility towards restricting emissions by
enhancing the energy efficiency of our processes as well as investing in low-carbon
technologies.

The nature of our operations is such that we only produce carbon dioxide. Over the
years, a focused drive to improve the efficiencies of our operations has resulted in OF GLOBAL CARBON
managing emissions to a significant extent. A case in point is the downward trend in
the specific GHG emissions witnessed by our Santej and Naroda units. EMISSIONS
TOTAL GHG EMISSIONS (DIRECT & INDIRECT) in TCO2

Units FY 13-14 FY 14-15 FY 15-16

Direct 321,670 417,214 431,290

Indirect 408,394 439,498 432,253

863,543
856,712

UNIT-WISE GHG EMISSIONS (DIRECT & INDIRECT) in TCO2

Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 383,272 448,284 468,083

Denim (Naroda) 230,342 247,122 218,011

730,064

Garments Export Division (Bengaluru) 7,602 48,121 65,046

Arvind Intex (Ahmedabad)* 36,387 35,981 34,483

Arvind Cotspin (Kolhapur) 28,589 32,245 31,503

Ankur Textiles (Ahmedabad) 43,872 44,959 46,416 2013-14 2014-15 2015-16

Total 730,064 856,712 863,543

*The data for Industrial textile unit includes only indirect emissions

72
 SPECIFIC GHG EMISSIONS in kg CO2/meter production

SANTEJ UNIT NARODA UNIT

2.27
3.26
Downward

2.25
3.18
trend
3.08

2.20
witnessed
in the specific
GHG emission
in FY 2015-16.
2013-14 2014-15 2015-16 2013-14 2014-15 2015-16

CONSERVATION

When it comes to energy conservation, every watt counts. Our teams, across units, remain on a vigil to continuously improve the
processes and ferret out alternatives in order to use less energy per unit of produce. Our conservation efforts span both thermal and
electrical energy.

Over and above enthusing our employees to continuously conserve, we also enhance the energy conservation awareness of our
vendors through trainings, workshops and seminars. This empowers us to conserve beyond our sphere of operations and thereby
contribute to the climate narrative on a larger scale.

73
Presented below is a glimpse of some of the key interventions:

SANTEJ UNIT

Action Conservation Action Conservation

Replacement of 8,796 nos.

36-watt TFL with 18-watt 3 mn Elimination of two cooling
tower pumps by installing a 3.78 lac
kWh/Annum
LED lamps kWh/Annum HR PHE in the Gas engine

Replacement of 1,096 nos.

250-watt, MV Lamp fittings 1.4 mn
kWh/Annum
Installation of two energy-
efficient compressors in the 8.1 mn
kWh/Annum
with 120-watt LED loom shed

Installation of VFDs at various VFD with Replacement of existing 6 nos. 30 kW pump sets
locations and processes Pressure Transducer pump sets with replaced by 2 nos. 55kW pump
At three Auto Coner machines: energy-efficient pump sets sets - resulting in energy

2.59 lac in the Central ETP savings of

kWh/Annum conserved
VFD without
IE
FIC N
2.51 lac
kWh/Annum

T
Y EF
Pressure Transducer

PUMP
At Pressure Dryer of 6 nos. 110 kW pump sets
Dyeing Machine: replaced by 3 nos. 160 kW
RG

0.5 mn ENE
S pump sets - resulting in energy
savings of
units/year
conserved 1.4 mn
kWh/Annum
Replacement of the existing
pumps with new, 48.8
kWh/Day
Installation of O2 sensor and Annual coal savings of

2,594
energy-efficient pumps
insulation improvement in
steam boilers
Installation of additional
pumps with better ratings 7.65 lac
kWh/Annum
tonne

1,689
at the shirting pump house
Installation of Economizer
in 20 TPH boiler
Introduction of dynamic Power savings of

0.07
rinsing process
tons
of coal saved equivalent to
(VIVO & miDori®) in the
yarn dyeing section kWh/kg
of fabric rinsed 9.83 lac
Steam savings of Kcal

0.5 Temperature optimisation Gas consumption reduced by

9.2%
kg/kg of approximately 10°C at the
of fabric rinsed Thermopack machine

Implemented Karl Mayer Power savings of 30%

dyeing and sizing
technology in the indigo 30% Santej unit received top honours
dyeing machines such that and steam savings of
at the National Energy Conservation
two warp sheets are dyed &
sized in one passage 20% Award for conservation excellence
in the textile sector - second year
in a row.
74
 NARODA UNIT

Action Conservation

Switched to LED streetlights

in place of HPMV lights 200
kWh/Day

Introduced self-driven, energy-efficient turbo

ventilation exhaust fans instead of electrically 1,080
kWh/Day Our
operated options

interventions
Installed a Variable Frequency Drive (VFD) in
cooling tower motor and energy-efficient pump
for water supply
450
kWh/Day
to enhance
boiler
Introduced VFD for microtech boiler
600
kWh/Day
efficiency
earned us
Tube lights replaced by energy efficient LED lights
860 recognitions
kWh/Day at Steamtech
2016
Introduction of new humidification plants with
VFD air washer pump 1,200
kWh/Day

Optimum utilization of air compressors and

installation of zero air loss trap/auto drain
valves to prevent air drain
552
kWh/Day

Replaced DC with AC in finishing machines to

reduce energy consumption 360
kWh/Day

Reduced coal consumption in 2 FBC boiler by

increasing efficiency 2.5
MT coal/Day

Installed transparent roof sheet at the Denim Plant

68,086
kWh/Year

75
BENGALURU UNIT

Action Conservation I N I T I AT I V E S

Replacing Fluorescent
tube lights and metal 171
kWh/Day
TURNING INCINERATORS INTO
HEAT HARNESSERS - SANTEJ UNIT
halide lamps with LED
dome light Heat recovery is an established approach to harness the power of
steam, a key energy source in textile operations. Incinerators are
great tools not just to manage waste, but also to generate thermal
Replacing the mild steel
impeller with FRP Impeller
in three spray booth
~35
Units/Day
energy. Building on this approach, we installed heat exchangers in
steam boiler nearby the incineration system for generating steam.
With a capacity worth 2,000 litre/hour at a 70°C rise temperature,
blower motor fans. (for three fans the exchangers will further add to the heat recovery strength of
combined) Arvind. Total capital cost of this intervention is INR 12 Lac, and the
energy returned on the investment is 400 kg of coal saved per day.

Migration from electrical

energy to steam energy in 285
kWh/Day
HARNESSING THE POWER OF NATURE
SANTEJ, NARODA & BENGALURU UNITS
3D IR crinkling by
replacing IR Lamps with Mother nature offers resources aplenty. The trick is to leverage them
steam line tubes effectively. At Arvind, we seek to harness the power of sun, in the
most natural and productive manner. Some of our units, wherever
feasible, have incorporated skylights to let the nature light in and
Efficiency improvement of
boiler by installing Air Pre
Heater (APH) to pre-heat
35
Units/Day
brighten the spaces. This has effectively reduced the need for
artificial lighting resulting in energy savings of 570 kWh per day.

In order to minimise the usage of artificial lights in the washing area

the air to be supplied to
of our Bengaluru unit, we installed a daylight harvesting system
the boiler.
comprising light tubes and skylights. This has resulted in around
90% power saving. Between April 2014 and April 2016, the unit
reported power savings of more than 60,400 kWh.

Skylights
have effectively reduced
the need for artificial lighting
resulting in energy savings of

570 kWh
per day.

At Bengaluru,
daylight harvesting
system resulted in

90%
power saving

76
77
DEMONSTRATION IS THE
BEST FORM OF
ADVOCACY
ASHISH KUMAR
CEO | Lifestyle Apparel

78
 Water is an important resource in textile production. The textile Industry ranks among
the top ten water consuming industries, and natural fibre processing has a larger water
footprint than artificial fibres.

We understand that water is not something that

can be completely substituted in the manufacturing
process in the foreseeable future, but it can be
consumed more judiciously and responsibly.
To optimise our water footprint, we have adopted

Efficient treatment & recycling mechanisms

Well-thought-out conservation projects
Smarter monitoring
Identification and plugging of leaks
in pipes as well as processes

17.42%
DECREASE IN FRESHWATER CONSUMPTION AT NARODA

100%
PROCESS WATER REQUIREMENT SOURCED THROUGH
TREATED MUNICIPAL WASTEWATER AT BENGALURU

3
10.88 mn m TOTAL WATER TREATED & REUSED
IN THE PROCESS DURING THE REPORTING PERIOD

6.5 litre/kg
of knit fabric
WATER SAVED AT SANTEJ THROUGH ONE-BATH BIOPOLISHING & DYEING

800 kl/day
COMMUNITY SEWAGE WATER TREATED AND RECYCLED AT ANKUR TEXTILES

79
CONSUMPTION
Our production volume grew across both woven and denim segments during the
reporting period of FY 2014-15 and FY 2015-16. But through a combination of
conservation, recycling and process innovations, we ensured that our freshwater
consumption didn't increase at a commensurable rate.

TOTAL FRESHWATER CONSUMPTION

6,783
in '000 m3

Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 1,541 1,465 1,537

Denim (Naroda) 4,140 4,126 3,407

6,200
6,147
GED (Bengaluru)* 201 217 269

Arvind Intex (Ahmedabad)** 136 131 138

Arvind Cotspin (Kolhapur)** 129 120 117

Ankur Textiles 826 724 732 2013-14 2014-15 2015-16

Total 6,147 6,783 6,200

*GED: Garments Export Division; comprising Mysore Road, Bommasandra and Electronic City units
**Arvind Intex and Arvind Cotspin have only domestic water usage

At Santej, although production volumes increased during reporting period, the total freshwater consumption did not cross FY 2013-14
levels. Thus, the Santej Unit has been able to produce more using less water.

In FY 2015-16, the Naroda unit also

decreased its freshwater consumption
17.42% as a result of sustained water
conservation drives.
The Bengaluru unit, despite a slight increase in consumption over the reporting period,
continues to remain a low water consuming unit due to various efficiency measures
being undertaken every year. A large proportion of this water is the treated
wastewater sourced from the municipal sewage treatment plant.

SPECIFIC WATER CONSUMPTION The Santej unit has been able to produce

MORE
In litre of water consumed/meter of production

Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 49.81 47.21 48.14

USING

LESS
Denim (Naroda) 40.43 37.85 34.45

GED (Bengaluru) 50 38 42
(in litre of water/garment manufactured)

Ankur Textiles 20.45 18.47 18.48 WATER

80
 ZERO
EFFLUENT MANAGEMENT Our Santej Plant has been a

Over the years due to persistent efforts and newer initiatives, we have achieved a
consistent rise in the recycling and reuse of wastewater in various processes across
our plants.
Liquid Discharge plant since
inception in 1998.

5,682
5,205
TOTAL WATER TREATED & REUSED IN PROCESS in '000 m3

4,771
Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 4,654 5,036 5,550

GED (Bengaluru) 63 114 99

Ankur Textiles 54 55 33 2013-14 2014-15 2015-16

Total 4,771 5,205 5,682

The Santej unit recorded an 8% YoY

increase in use of recycled water during
the FY 2014-15 and 10% during FY 2015-16. 3,578

TOTAL WATER TREATED & DISCHARGED in '000 m3 3,572

3,544
Units FY 13-14 FY 14-15 FY 15-16

Denim (Naroda) 2,747 2,852 2,781

GED (Bengaluru)* 133 125 163

Ankur Textiles 698 595 600 2013-14 2014-15 2015-16

Total 3,578 3,572 3,544

*Excludes the Electronic City unit as at this unit all the wastewater is treated and reused in process,
flushing & gardening

The Naroda unit saw a 4% increase in

water discharged during the year 2014-15,
followed by a marginal reduction in
FY 2015-16.

81
Our Santej unit is equipped
with a wastewater treatment
plant which recycles up to

98% of our
effluent.

82
 WATER MANAGEMENT & CONSERVATION INITIATIVES
SANTEJ UNIT

Our Santej unit is equipped with a Wastewater Treatment Plant which recycles up to 98% of our effluent. Thus, the net withdrawal of the
water from bore wells is limited to evaporation and consumption losses. But there is always room for improvement. If we cannot
enhance the quantum of water conserved, we can conserve the amount of energy used to conserve this water. Thus, during the
reporting period, we introduced technologies and process that make water conservation more energy-efficient.

I N I T I AT I V E
CONS
ER

U
WAT

MPTION
ON
RED CTI
U

WATER CONSUMPTION
AT SANTEJ UNIT
HAS BEEN REDUCED
BY ENHANCING THE
UTILISATION OF
MACHINE EFFICIENCY
ELECTRO OXIDATION ONE BATH BIO-POLISHING AND THROUGH A
PROCESS AND DYEING COMBINATION OF STEPS
SUCH AS:
To enhance energy efficiency and reduce Bio-polishing is a finishing process that
sludge generation, Electro Chemical enhances fabric quality by decreasing
Creating awareness about draining and
Oxidation was introduced as a pilot the pilling tendency and fuzziness of
flushing during changeover from dark
project in the ETP at Santej. In this (cellulose) knitted fabrics. In the regular
shade to light shade, such that
process, the pollutants are broken down process, the fabric undergoes a number
unnecessary flushing doesn't happen
through oxidation at the anode and are of baths like pre-treatment, dyeing and
transformed into non-toxic substances. bio-polishing. Thereafter it goes for
Thereby, the effluent's COD (Chemical finishing and is finally packed. Each bath
Each machine operator has been trained
Oxygen Demand) is reduced substantially. consumes substantial quantities of water.
to optimise utilisation of water; this
training and behavioural change has
This technology is simple, eco- We have devised and incorporated helped us save around

300-400 m3
friendly, energy-efficient and has a sustainable process where
low maintenance cost. The treated bio-polishing and dyeing happen in
wastewater can be then the same bath saving water, steam,
of water per day
effectively reused for dyeing energy and time. Single bath
application. Plans are afoot to bio-polishing and dyeing is carried out
scale up the process in future. for almost 95% of piece dyed fabrics.
In sanforiser, the water required to cool
the blanket is now being collected in
WE HAVE ESTIMATED THAT THIS PROCESS SAVES trough and is reused in the process;

ABOUT 6.5 LITRE OF WATER PER KG OF KNIT FABRIC resulting in savings of

3
PROCESSED AND 21 TONNES OF STEAM PER MONTH. 150 m
water per day
83
 The water recycling and
reuse initiative at the rope
NARODA UNIT dyeing machine results in
savings of approximately

21,600
The Naroda unit is our oldest, and continues to remain one of
the most important in terms of productivity. During the
reporting period, a number of water conservation initiatives
and equipment upgrades were commissioned at the unit.

I N I T I AT I V E S
m3/annum

RECYCLING OF WATER IN THE ROPE DYEING MACHINE

Water in the pre-wash zone was being drained after usage leading to inefficiency in water usage and leaving a room for improvement.
It was observed that the water being drained is still of usable quality and can be used in-situ before finally being discharge. We
modified the machine to recycle and reuse this water to the last wash tank resulting in savings of approximately 21,600 m3/annum.

REUSE OF EOU SUCKER RECYCLING WATER OF THE CONSERVATION BY MATCHING

MULLER WATER EOU MONFORT RUBBER DEMAND AND SUPPLY
A condensate recovery The water used for rubber cooling Raw water header pressure did not align to the
pump was installed for was previously being discharged to the drop in demand at process leading to wastage of
the slasher dyeing ETP. This water is now being recycled in water. A VFD (Variable Frequency Drive) was
machines to facilitate the the same unit after cooling through installed to synchronise the water pressure based
reuse of water. cooling tower. on the demand.

This resulted in the generation This process resulted This has resulted in
of a condensate quantity of in savings of approximately water saving of

5,400 28,800 17,280

m /annum
3
o
m /annum
3
m3/annum
at a temperature of 80 C.

84
 BENGALURU UNIT

When it was commissioned in 2005, the Mysore Road Garmenting Unit at Bengaluru was the first such unit in the area to use 100%
treated water sourced from the local municipality through a specially built pipeline. Even today, no groundwater is used
at this unit. Yet, the scope for rationalising consumption always remains. During the reporting period, following technologies and
processes were introduced to conserve water

I N I T I AT I V E S

E-SOFT NANOBUBBLE TECHNOLOGY

e-Soft
technology
ensures

98%
water savings

80%
chemical savings
In a conventional softening process, textile products go through a washer containing and

79%
water and chemicals before being spin dried and tumble dried. Each cycle consumes a
huge quantity of water. Keeping in mind our need to rationalise water consumption, we
have introduced 'e-Soft technology' at our Bengaluru unit.

This ensures 98% water savings, 80% chemical savings and 79% energy savings.
energy savings
e-Soft is based on nanobubble technology which not just negates the need for a separate
bath, it also makes spin drying unnecessary and minimises the tumbler drying cycle.

85
 ANKUR TEXTILES,
The e-soft system is low maintenance, AHMEDABAD

easy to clean and ensures zero discharge.

In comparison to the conventional softening process, e-soft presents the below benefits:

Conventional Process e-Soft Technology

Three processes required: Only one process
Washer, spin dry and tumble dry required

10g 2g
of chemicals required of chemicals required
per garment per garment
As sustainability becomes an

5 litre 0.1 litre

integral part of how we do
business, it has been cascaded
beyond our bigger business units,
water required per garment water required per garment
to smaller and newer units as well.

0.38 kw/h
power consumed per garment
0.08 kw/h
power consumed per garment
SEWAGE
TREATMENT
PLANT

ZERO
Full discharge of During the reporting period, to

1,000
decrease our dependency on
groundwater, we commissioned a
DISCHARGE
litre
Sewage Treatment Plant (STP) with
capacity to treat 1,500 kl sewage
Note: Calculation is done for a load of water every day at Ankur Textiles.
as wastewater 100kg, were 1 garment is 0.5kg
At this STP, we take sewage waste
from nearby communities, outside
our facility and treat it to salvage
clean water for use in our process.
REDUCING WATER CONSUMPTION THROUGH EIM
Currently, we are treating

800 kl
The Garment Unit at Bengaluru has been using Environmental Impact Measuring
(EIM) software to monitor and control its washing activities since last three years.
This software analyses the environmental impact of a garment finishing process across
parameters such as: sewage water in the STP and
are thereby saving around
• water consumption • energy consumption
• chemical product use • worker health
It also measures the impact of the total process and benchmarks the results against a
defined environmental threshold.
650 kl
OF GROUNDWATER

This enables us to compare the environmental impacts of various finishing processes. In the near future, we are aiming
Our customers can also request access to the environmental information of the to eliminate our dependence on
washing formulas for their orders. groundwater completely.

86
 NO BETTER
BUSINESS COMPASS THAN A
CUSTOMER'S GOAL
A A M I R A K H TA R
CEO | Lifestyle Fabrics - Denim

87
88
 As a sustainable
supply chain partner,
we work in
conjunction
with our clients
and help them
not only fulfil
market expectations
but also assist
them to exceed
their sustainability
goals.

The look, the feel, the hues, the unique properties - much of what turns a fabric into fashion comes from chemicals. Understanding
the power of chemicals, leveraging its goodness and minimising its ill effects - these are core to making us fundamentally right.

We follow a lifecycle approach to ensure comprehensive chemical management: Our goal

1 Encourage the farmers to reduce or eliminate harmful chemical fertilisers and ensure that our fabrics and
pesticides in cotton cultivation by promoting BCI, organic cotton
garments are safe for end
2 Make improvements in the production process to reduce consumption of chemicals consumers, and their
3 Substitute the hazardous chemicals from the chemical recipe with minimal manufacturing is safe, for
discrepancy in the final output our employees, surrounding
4 Limit the discharge of hazardous chemicals as well as recover salts from communities and the environment.
the wastewater
89
POLICIES & PRACTICES
A robust system of policies and practices towards managing chemicals has been put in
place to ensure most effective means to controlling hazards and mitigating risks.

CHEMICAL MANAGEMENT POLICY

Our Chemical Management Policy (CMP) is updated on an annual basis in line with
product Restricted Substances List (RSL) and Manufacturing Restricted Substances List
(MRSL) requirements. The CMPv2, updated in August 2015, propagates good practices
in below areas:
• Processes and guidelines on chemical purchase, usage, storage and disposal

• Assessment of chemical hazard to environment and human health SCREENING FOR HAZARD
• Chemical Safety Management

• Transparency on chemical use - from purchase to disposal

• Practice of best available technologies

The policy is shaped by three factors:

External - Brand requirement of customer organisations

Internal - Management focus on EHS. This includes adherence to ZDHC roadmap of With an objective to evaluate
ensuring zero discharge of hazardous chemicals by the year 2020, Higg Index 2.0, chemicals from a hazard
Sustainable Apparel Coalition and worker safety perspective, 'GreenScreen for
Regulatory - Certifications like GOTS, OEKO-TEX and REACH Safer Chemicals' was adopted for
REACH the 'Denim Laundry Operations' in
FY 2015-16. GreenScreen provides
a structured approach to evaluate
a comprehensive set of 18 human
and environmental health and
safety end points, as related to
CHEMICAL PURCHASE POLICY chemical substances. We plan to
We continue to be committed towards eliminating the 11 chemical groups of priority expand the scope of GreenScreen
substances from our processes. in coming years.

While we have put in place practices to restrict the use of these substances at our
operations, we are well aware that they may be present in the chemicals we procure HAZARD ENDPOINTS
from our suppliers. We have hence instituted a Chemical Purchase Policy to screen our Environmental Fate
supply chain. Persistence | Bioaccumulation

We ensure that all chemicals used, have below documents in system: Environmental Health
Acute Aquatic Toxicity
• Material Safety Data Sheet / Technical Data Sheets (TDS)
Chronic Aquatic Toxicity
• Technical Data Sheet / Technical information Carcinogenicity | Mutagenicity &
• GOTS / Non-GMO certificate, wherever applicable Genotoxicity | Reproductive
Toxicity | Developmental Toxicity
• REACH SVHC candidate list Endocrine Activity
• ZDHC MRSL compliance declaration
Human Health Group 1
• Certificate of Analysis (COA) Acute Mammalian Toxicity
Systemic Toxicity & Organ Effects
• Product Information LOG (PIL) covering BOD / COD / EC50 / IC50 / Bio-degradability /
Neurotoxicity | Sensitization
GHS classification of chemical
Respiratory Sensitization
• Declaration of RSL on fabric Skin Irritation | Eye Irritation
• Declaration of RSL and MRSL component in chemical / dye
Human Health Group 2
In order to enhance the ease of access and in a move to reduce paper usage, we have started
Reactivity | Flammability
receiving Certificates of Analysis in soft copy. All HODs have access to these COAs.
90
 SPILL MANAGEMENT POLICY
Unplanned or uncontrolled release of hazardous chemical is an occupational hazard In addition to giving a comprehensive
that is, unfortunately, a possibility in any industry that involves chemical. But like all SOP to deal with major and minor spills,
accidents, its probability can be minimised. Even in case of an untoward occurrence, the policy also elucidates the dos and
the extent of damage can well be contained if SOPs are in place. don'ts to handle spills of special
chemicals like organic material, alkali
Our Spill Management Policy is aimed to ensure cautious management of hazardous and acids.
material spills. The policy is applicable to all departments, employees, contractors,
and visitors.

I N I T I AT I V E S

INDIGENISED SPILL KITS AUTO DOSING FOR MORE SAFETY AND QUALITY

All departments handling hazardous It is our conscious endeavour to ensure safety and control over the chemicals and dyes
chemical are equipped with spill kits. which are an indispensable part of our manufacturing processes. Our Woven & Knits
The challenge that we usually face in Unit at Santej involves high levels of chemical consumption. Previously, these
procuring these spill kits is that the chemicals had to be manually sorted, mixed as per the required recipe and loaded
replacement of the kits is both time onto machines for further processing. This manual intervention had the potential to
consuming and costly, because good cause both health hazards as well as human errors.
quality, industrial grade spill kits are
usually imported. In order to protect our workers and to ensure the consistency across production
batches, we introduced SCADA-based auto dosing system. Auto dosing dispenses both
To find a way around this, we have solid and liquid chemicals and dyes in accurate quantities at pre-determined intervals -
indigenised one of the most critical and thereby lending speed and efficiency to bulk production.
most used components of the spill kit
known as 'barrier'. Designed to As a result of this intervention, our Santej Unit now has:
perfection, the effectiveness of these • Steady reduction in the direct human exposure to hazardous chemicals and dyes;
indigenised barriers is at par with the ensuring better employee health and safety
commercial ones. • Increased precision in accuracy and quantity; leading to better quality and
minimum wastage
This innovation is helping us to curtail
the cost of the kit per department, and • Complete traceability of order history
most importantly, it is eliminating the
possibility of running out of access to Due to the measurable benefits of the auto dosing system, we are in the process
the spill kit. of incorporating it at our Bengaluru unit also.

91
WASTE GENERATION & MANAGEMENT
WASTE GENERATION
Waste is a by-product of the production process and thus, to some extent, its quantity depends on our output. In FY 2015-16, denim
production at Naroda witnessed a minor de-growth in volume on account of bottlenecks in capacity utilization due to changes in
product mix.

On the other hand, woven fabrics and garments business, both showed growth in volume of 4.5% and 28% respectively. New
spindles were added to Santej unit during both years and some of the yarn production was also moved to in-house production from
the outsourced yarn earlier. This resulted in an increase in non-hazardous solid waste. More specifically, spinning capacity increase
has led to the soft waste increase at Santej which almost doubled year on year over the previous reporting period.

NON-HAZARDOUS WASTE
Solid Waste (Hard) In Tonne

Units FY 13-14 FY 14-15 FY 15-16

6,086
Woven & Knits (Santej) 1,870 2,226 2,978

5,390
4,908
Denim (Naroda) 2,502 2,673 2,543

Arvind Intex (Yarns) (Ahmedabad) 441 396 470

Arvind Cotspin (Kolhapur) 26.5 37.1 30.5

Ankur Textiles (Ahmedabad) 68.8 58 64.2 2013-14 2014-15 2015-16

Total 4,908 5,390 6,086

Solid Waste (Soft) In Tonne

Units FY 13-14 FY 14-15 FY 15-16

10,241
Woven & Knits (Santej) 1,773 3,728 6,271
9,613
8,112

Denim (Naroda) 2,497 2,254 998

Arvind Intex (Yarns) (Ahmedabad) 3,366 3,116 2,474

Arvind Cotspin (Kolhapur) 285 303 280

Ankur Textiles (Ahmedabad) 191.04 212 218 2013-14 2014-15 2015-16

Total 8,112 9,613 10,241

Note: Two spinning units were closed at Naroda during FY 15-16; hence solid soft waste got reduced.
A large-scale spininng unit was installed at Santej, resulting in a jump in waste numbers there.

Solid Scrap Waste (Chindi) In Tonne

Units FY 13-14 FY 14-15 FY 15-16

1,604
1,413
1,391

Woven & Knits (Santej) 733 617 903

Denim (Naroda) 330 347 333

Garments Export Division (Bengaluru) 237 352 283

Ankur Textiles (Ahmedabad) 90.86 97 85 2013-14 2014-15 2015-16

Total 1,391 1,413 1,604

92
 HAZARDOUS WASTE
Non-refillable Empty Containers Disposed In Nos.

217,855
Units FY 13-14 FY 14-15 FY 15-16

186,624

204,526
Woven & Knits (Santej) 122,638 139,163 149,830

Denim (Naroda) 95,217 32,419 42,196

Garments (Bengaluru) -- 1,600 466

Ankur Textiles (Ahmedabad) 15,434 13,442 12,034 2013-14 2014-15 2015-16

Total 217,855 186,624 204,526

Note: In FY14-15, Naroda started ordering Liquid Indigo in large containers leading to huge reduction in containers; in FY15-16, a portion of indigo was
resumed in smaller sized containers due to business compulsions; resulting in more containers

ETP Sludge In Ton

4,098
Units FY 13-14 FY 14-15 FY 15-16

3,423
Woven & Knits (Santej) 1,721 779 965

2,791
Denim (Naroda) 1,141 845 1,254

Garments Exports Division (Bengaluru) 561 586 938

Ankur Textiles (Ahmedabad) 490.63 581 941 2013-14 2014-15 2015-16

Total 3,423 2,791 4,098

31,320
27,957
11,865

Used Oil In Litre

Units FY 13-14 FY 14-15 FY 15-16

Woven & Knits (Santej) 9,136 16,400 14,100

Denim (Naroda) 2,729 11,557 17,220 2013-14 2014-15 2015-16

Total 11,865 27,957 31,320

MISCELLANEOUS UNIT-SPECIFIC WASTE

1,219

In Ton
1,094

Arvind Cotspin (Kolhapur)

1,081

FY 13-14 FY 14-15 FY 15-16

Comber Noil 857 881 1,007

Card Sweeping Waste 9.4 11.2 17.8

Flat Strip 214.9 202 194.6 2013-14 2014-15 2015-16

Total 1,081 1,094 1,219

In Ton
Wovens & Knits (Santej) FY 14-15 FY 15-16

Packaging Material 2,112.8 2,169.5

Recycled PVC 17.7 27.1

e-Waste 8.1 8.5

Recycled Plastic 110.2 127

93
Garments Export Division (Bengaluru) In Ton

142.7
FY 14-15 FY 15-16

86.3
Paper Waste 3.5 2.3

Plastic Can 34 73.4

Metal Scrap 11.1 7.2

Fabric End Bits 94.2 3.4 2014-15 2015-16

Total 142.7 86.3

At our Bengaluru unit, grit

generated during stone washing is
upcyled and used to manufacture
bricks. During FY 14-15 and 15-16,
we manufactured 34,600 bricks.
Each brick utilises 1.7 kg of waste
pumice stone powder; hence we
utilised approx. 58,820 kg of
waste powder in manufacturing
these bricks.

323.82

281.48
In Ton
Ankur Textiles (Ahmedabad) FY 13-14 FY 14-15 FY 15-16 225.53
Steel Scrap 82.26 192.84 127.21

Other Scrap like Plastic, Wood, Cone/ 143.24 130.98 154.27

Carton and Other Waste
2013-14 2014-15 2015-16

Total 225.53 323.82 281.48

WASTE MANAGEMENT
As a responsible corporate, it has been our constant endeavour to be an asset to the society and not a liability. Instrumental to this,
has been the focus we have maintained on measuring, assessing and minimising our waste creation and disposal.

I N I T I AT I V E

SALT RECOVERY THROUGH ZERO LIQUID DISCHARGE

Our Santej unit is a Zero Liquid

Discharge (ZLD) unit. In 1998, the unit
This has enabled us to recover
invested in ZLD technology to set up an
water as well as mixed salt. This
Effluent Treatment Plant (ETP) with a recovered salt has substituted
capacity to treat 17,500 cubic meter of glauber salt and vacuum salt used
textile effluent per day. In FY 2014, we in the dyeing of yarn and fabric. In
installed Mechanical Vapour FY 15-16, 1,232.14 metric tonne of
Recompression Evaporation (MVRE) salt was recovered from the
plants in the effluent recycling system wastewater treatment system and
for low cost evaporation and recovery of was reused in the process.
salts dissolved in the effluents.

94
 case study

NO-STONE WASHING AT BENGALURU UNIT

Stone washing is used to give a newly manufactured garment a worn-in (or worn-out) appearance.
During the stone washing process, pumice stones work like sandpaper to abrade the denims,
removing some of the dye particles and enhancing their worn, faded look. This process also makes the
denim softer and more flexible.

Along with its benefits, stone washing also poses sustainability challanges.
After the stone washing process, the denim is required to be washed several No-Stone System
times in order to completely get rid of the grit. This washing process includes
chemicals like Anti Back Stain (ABS), enzymes and detergents. Over and above
increasing chemical and water consumption, stone washing also enhances
33%
lesser water
carbon footprint, as the stones need to be imported from places like Turkey, consumption
Indonesia and Greece. In order to address these challenges, we have innovated
and created a No-Stone System.

We have replaced the pumice stone with an abrasive drum coating, fastened to the internal drum of
the washing machine which can create a number of finishes through flexible abrasion adjustments.

Conventional Pumice Stone Washing System Innovative No-Stone Washing System

Traditional No-Stone
Parameter Stonewash System
COMPARATIVE
STUDY BETWEEN No. of Garments 80 pieces 80 pieces
TRADITIONAL
Garment Load ~ 80 kg ~ 80 kg
STONE WASH
AND Pumice Stone Load 160 kg 0
THE NO-STONE Water Consumption 4,200 litre 2,800 litre
SYSTEM Chemical Consumption
- ABS 1.35 kg 0.8 kg
- Enzyme 0.8 kg 0.4 kg

95
 no-stone system
not only eliminates
conventional
pumice stone for
garment washing,
but also reduces
chemical consumption,
water use, and
carbon footprint.

96
 WA ST E R E D U C T I O N I N I T I AT I V E S AT S A N T E J U N I T

REDUCTION IN HARD WASTE

The hard waste generation in textile industry occurs after the spinning process. Hence,
this waste not only contains valuable raw material but has also been processed using
valuable resources. It is our continuing endeavour to minimise the generation of hard
waste at our facilities.
• Introduced the use of non-woven filters based spring packages instead of
PP packaging

• In the past, soft winding was performed on weight basis. The process has been
changed to length basis; resulting in decreased warping waste

• In selvedge cutting, the edge trimmers have been optimised with adjusted cutter
positions. This resulted in reduction of waste amounting to 1,000 kg/month

• Previously, roll identification mark was mentioned horizontally on each roll. This
marking is now being mentioned vertically, thereby preventing around 10 cm of
fabric width from being cut. Considering an average roll length of 165 m at shirting
unit, this translates into fabric savings of 165,000 sq.cm. per roll

REDUCING WASTE GOING PFC-FREE IN

THROUGH AUTOMATION WATER-REPELLENT FINISHES

To minimise the manual errors during Since many decades, perfluorochemicals (PFCs) have been used in water-repellent
packaging, we have introduced finishes and in waterproof membranes in outdoor apparel. The two most commonly
automated packing machine that can be used compounds are perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid
programmed and monitored through (PFOA). PFOS is a persistent, bio-accumulative and toxic to mammalian species.
microprocessor interface. This machine
works on the functions like auto rolling, Our PFC-free finish is the sustainable water repellent finish where usage of PFOA and
cutting, sampling, labelling & palletizing. PFOS is eliminated. In comparison with C6 & C8 chemistry, PFC-free products have very
In addition to eliminating manual errors soft handle and good abrasion resistance. Their washing durability is also high with
in marking or weightage, it also saves excellent low temperature curing. This ensures that PFC is not released to environment
on the packing time. and thus would eliminate the health risk to human beings and animal species.

EASY WASH
Easy Wash is a revolutionary innovation that allows removal of everyday stains with just a dab of water. Offering a unique blend of
fashion and technology, every Easy Wash shirt combines the best of liquid repellence and stain release functions on the finest fabric.
Chemicals used for Easy Wash have excellent water repelling characteristics, are durable to laundering and give comfort to wear. The
Easy Wash fabric helps to reduce the impacts at consumer end by enhancing the life of fabric as well as reducing need to wash
garments with detergents frequently.

97
PRODUCT RESPONSIBILITY
Instead of every season, today, fashion changes every month. Consumers are buying more clothes than ever before. Prices are
travelling south. And demand is zooming north. Production ramp-ups to fulfil this demand entails two costs - the stated price on
the tag, and the unstated natural cost borne by the environmental resources. Sustainable fabrics are the need of the hour. Fabrics
that satisfy the current demand; while ensuring ample resources for tomorrow

At Arvind, we are geared not only to cater

to the increasing demands of garment
manufacturers and consumers, but also to the
environmental and societal demands of
ethical production and community development.
Our product portfolio gives our customers an array of options to enhance the
sustainability quotient of their offerings. It is an outcome of the diligent choices we
make in selection of the right raw material, and adoption of production processes
that consume natural resources judiciously.

CO-CREATION STRATEGY HELPS US FORGE LONG-TERM MUTUALLY

ENRICHING PARTNERSHIPS WITH OUR CUSTOMERS

CELLULOSE FIBRE BLENDS

ARE NOT ONLY ENVIRONMENT-FRIENDLY BUT ALSO CONSUMER-FRIENDLY

NEO-DYEING TECHNOLOGY HELPS REDUCE OUR ENVIRONMENTAL FOOTPRINT

7.9% 21.59%
LESS LESS FRESHWATER
ENERGY CONSUMPTION

POST-CONSUMER
RECYCLED FIBRES
ARE REUSED IN RING SPINNING TO MAKE SUSTAINABLE DENIM
98
 Partnering through Co-Creation
There is a great need in the industry today for large and experienced textile manufacturers like us to expand our role and assist in design
and development. This results in a win-win situation - the customer frees up bandwidth for marketing, positioning and retailing; while we
get to engage with the customer at a deeper level and forge stronger long-term partnerships.

ARVIND IS SPEARHEADING THE STRATEGY OF CO-CREATION.

Our Co-Creation strategy can be divided into three distinct but equally important phases:

Co-Construct Co-Wash Co-Design

This involves finalising the most Once the correct fabric has been identified, Now that the fabric as well as the look
appropriate fabric for a specific our garment experts employ different and feel have been decided, our garment
requirement. This can be either done wash treatments to enhance and and fashion experts collaborate with the
using our technical design services for customise the feel and look of the fabrics. customer's design teams and create
fabric development or by delving into our Our advanced wash lab at Naroda is design options keeping in mind the
vast library of available fabrics. equipped with state-of-the-art machinery, prevalent fashion trends. Our master
capable of high-end wash output through craftsmen then give form and silhouettes
both - dry and wet processes. to the prototype of each design option.

Co-creation has enhanced our understanding of markets and domain expertise and shall propel
us as a preferred partner for more global customers, in the years to come.

SUSTAINABLE PRODUCT PORTFOLIO

Arvind has a rich history of responding with products that cater to the need of the hour. With an urgent global need to combat
environmental impacts and the rising demand for green fabrics, Arvind has developed a wide and diverse sustainable product portfolio.

NEO-DENIM
Neo Denim is produced using sustainable Neo-dyeing technology which is a closed-loop dye inject technology in Nitrogen environment.
Sustainable characteristics of Neo Denim:

Eliminates Reduces Reduces

Dye Drainage Dye Consumption Water Consumption
The dye is injected directly on the fabric, Optimises dye consumption as The excess dye from fabric surface can
hence there is no dye box and thus no there is hardly any excess dye. be washed off at a later stage with
dye drainage. minimal water.

The Neo Technology can also be used to apply sulphur dye which imparts deep dark saturated shades
that make the fabric very versatile.

99
 Validation of Neo-Dyeing Technology's
Sustainability Potential
During the reporting period, PE International conducted an environmental Life Cycle Assessment (LCA) of Neo-dyeing and
conventional dyeing. The methods used were in congruence with ISO 14040:2006 and ISO 14044:2006.

Based on the study results, it has been quantified that the Neo-Dyeing (Pre-Dyed Fabric) has

5.31% 14.75% 0.19% 4.18% 7.90% 21.59%

lesser lesser lesser lesser lesser lesser
acidification eutrophication global warming human toxicity primary energy freshwater consumption
potential potential potential demand as per the CML 2001 Impact
Assessment method.

CORDUROY DENIM RECYCLED POLYESTER KHADI DENIM

Corduroy Denims are corduroy fabrics As part of our ReNEW process, Khadi Denim is hand spun, hand hank
specially treated using the new Foam we produce recycled polyester dyed in natural indigo and woven on a
Indigo Dyeing technology, and used for from discarded PET bottles handloom. It sports all the properties of
denim manufacturing. Foam finishing is a which would otherwise choke natural denim like comfort, softness, and
wet processing technology that uses air up landfills. It is estimated that ageing. Additionally, the natural indigo
in form of dispersion foam for media recycling 1 ton of PET saves an injects anti-inflammatory, anti-fungal &
application. It saves energy by more than equivalent of about 4.7 barrels anti-bacterial properties into the fabric.
50% and brings down chemical of oil. Producing recycled During the reporting period, we initiated
consumption by 10 to 40%. Moreover, the polyester also consumes 86% commercial shipments of Khadi Denim to
fabric wears longer and fades gradually less water compared to virgin both, large-format brands like Levi's and
just like denim. polyester. niche boutique brands.

In addition, our green portfolio offers versatile fabrics like:

Scafé Denim Linen Denim Excel Denim Advanced Denim

Made from recycled One of the few fabrics Made from choicest Manufactured using a ground-breaking
coffee grounds that remain strong selection of wood pulp, technology that reduces water and energy
even when wet a natural and renewable consumption by up to 92% and 30%
resource respectively

I N I T I AT I V E

POST-CONSUMER WASTE RECYCLING

With fast fashion speeding up trends and shortening seasons, clothing is getting dated
sooner than later and pressure on landfills is increasing by the hour. Extracting fibre
from these discarded garments helps reduce the load on landfills and eases demand
on natural resources.

At Arvind, we use both types of post-consumer recycled fibres - natural and synthetic.
Recycling is undertaken as per Global Recycling Standard (GRS) guidelines. Cotton
fibres extracted from post-consumer waste are used in ring spinning to make
sustainable denim. We also source recycled waste that is certified by Control Union.

100
 I N I T I AT I V E

SUSTAINABLE YARN DYEING PROCESS We have also

introduced yarn
A typical yarn dyeing process comprises a number of stages with mercerization being
one of them. This stage consumes a sizable quantum of water, steam and power. We combinations;
have introduced a sustainable process of natural finish in yarn dyeing where not only one where dyeing
the mercerization stage gets eliminated, but also the bleaching and dyeing steps. is eliminated for

NATURAL FINISH | REGULAR PROCESS

25%
yarn portion
(75% yarn dyed &
YARN 25% scoured yarn
DYED SINGE DESIZE MERCERISATION FINISHING in fabric), and the
FABRIC
other where dyeing
is eliminated for

NATURAL FINISH | SUSTAINABLE PROCESS 35%

yarn portion
(65% yarn dyed &
YARN DYED & 35% scoured yarn
SINGE DESIZE FINISHING
SCOURED FABRIC
in fabric).

Through sustainable yarn finishing, following environmental benefits that have been realized.

Savings by Savings in Savings in Total Savings Total Savings

eliminating Yarn Yarn with Yarn with Yarn
Parameters Mercerization Combination I Combination II Combination I Combination II

Water 8.4 13 18.2 21.4 26.6

(litre / kg yarn)

Steam 4.3 1 1.4 5.3 5.7

(kg / kg yarn)

Power 4.3 1 1.4 5.3 5.7

(Kw / kg yarn)

Note: Yarn Combination (1), where dyeing is eliminated for 25% yarn portion | Yarn Combination (2), where dyeing is eliminated for 35% yarn portion

Additionally, in the sustainable process route, bleaching and dyeing steps have also been eliminated;
resulting in water savings of 18 litre per kg of yarn processed and energy savings of 5 kg of steam per
kg of yarn processed.

101
THE RIGHT RAW MATERIAL
Cotton continues to remain the fabric of choice for consumers and is thus the most
important raw material for us. Since 2007, Arvind Agribusiness has been driving the
cause of sustainable agriculture. As an implementer of the Better Cotton Initiative (BCI)
project and an early proponent of organic farming in India, Arvind Agribusiness is
currently working with over 4,000 cotton farmers to enhance their farm productivity
while reducing financial risks.

For more details about the sustainable sourcing of cotton, please refer to the Cotton chapter.

Arvind Agribusiness is
currently working with
OVER
4,000
While we are reducing the environmental footprint of cotton farming, we are also
promoting alternative fibres. These fibres retain the look, feel and durability of a
FARMERS
natural fibres like cotton and wool, but are produced at a considerably less load to the
to enhance their
environment when compared to cotton. Prime amongst these is Tencel®- a man-made
farm productivity
cellulose fibre. while reducing
financial risks

102
 Tencel
®

®
Tencel is a man-made,
®
Over and above being 100% biodegradable, Tencel has a host of
desirable properties:
biodegradable fibre from wood
pulp. The wood is sourced from A UNIQUE NANO-FIBRIL STRUCTURE AND A VERY SMOOTH SURFACE
trees grown in notified farms,
where they grow faster, do not EXCELLENT WET STRENGTH AND WET MODULUS
require any artificial irrigation
VERY HIGH ABSORPTION CAPABILITY
and are not genetically modified.

During the reporting period, we introduced following new blends to enhance the versatility of our finished products:

®
Tencel -Cotton blend ®
Tencel -Wool blend

NEW
® ®
With a mixture of Tencel , the The addition of Tencel to wool
strength and regularity of cotton enhances the softness and makes
INTRODUCTIONS improves considerably, resulting in the blend easily washable.
a more attractive fabric with better
performance values.

103
RESPONSIBLE PRODUCTION
Being a manufacturer, production efficiency is vital for both - customer satisfaction plus
environment stewardship. To harmonise both these goals, we employ the best of talent
and the latest in technology, so that we can ramp-up production without a
commensurate increase in our consumption footprint.

Year after year, we have sharpened our production efficiency by introducing new Introducing
equipment and updating existing machinery. Staying ahead on the technology curve
helps us enhance the quality of finished products, reduce consumption of water and new equipment
energy as well as optimise the utilisation of dyes and other chemicals. It also helps us
stand true to our goal of being an innovation-driven textile major.
and updating
the existing
machinery
Major technology introductions and upgradations done during the
reporting period: helps us stand true
to our goal of being a
technology and
innovation-driven
textile major.

New-age washing machine, dryer Dual Core spinning technology upgraded

(Yilmak), 3D machine (Metod), brushing with more scientific controls.
dummy (Fabcare) and curing ovens
(Mectek) added to the Arvind Denim Lab. This enhances our capability to
produce superior, high-quality
These technologies help us
performance yarns; thereby
implement our Co-Creation strategy
strengthening our portfolio.
more effectively.

Introduction of
Next-generation
Stable Foam Coating
technology.
New warping machine with upgraded We can now offer textile solutions A new sanforizing machine (Monforts)
technology and higher capacity added in with double rubber cylinder installed.
for rapidly growing sectors like
the Warping and Dyeing area.
general industrial manufacturing, It processes fabric at twice
These machines perform better plus infrastructure, transport, energy the speed; resulting in faster
have lesser down-time; which in and personnel protection. production.
turn reduces our turnaround time.

104
 REPORTING
SCOPE

This second sustainability report of Arvind Ltd. builds on the maiden report and further
elucidates our economic, social and environmental performance to an array of
stakeholders. It continues to be in line with our approach to sustainability – that of
being fundamentally right by focusing on our core inputs, and has been prepared
through a stakeholder engagement process. THIS REPORT IS IN
We have adopted the reporting parameters suggested by the Global Reporting
ACCORDANCE WITH THE
Initiative (GRI) and thus, this report is in accordance with the G4 CORE guidelines. The G4 CORE GUIDELINES
GRI content index table at the end of this report shows the definition of each reported
disclosure element as well as its location within the report.

The performance disclosures contained in this report pertain to the period between April 01, 2014 and March 31, 2016. We are
determined to report our triple bottom line performance on a regular basis.

REPORTING BOUNDARY
For all profile disclosures, economic performance and employee indicators: Arvind Limited.

Environmental performance data is limited to major manufacturing operations at:

I. Naroda (Denims business) The community section of the report describes the corporate social responsibility (CSR)
activities carried by the Strategic Help Alliance for Relief to Distressed Areas (SHARDA)
II. Santej (Woven and Knits business) Trust under the aegis of our newly constituted Arvind Foundation.

III. Bengaluru
(Bommasandra, Electronic City & Mysore Road, No other entities, such as subsidiaries, associates, joint ventures, vendors etc. are
collectively reported as Garments Export Division)
within the reporting boundary.
IV. Kolhapur (Arvind Cotspin)

V. Ahmedabad (Ankur Textiles) Your valuable inputs will help us gauge the efficacy of the present report and make
future reports more engaging and informative. Please send your feedback to:
VI. Ahmedabad (Arvind Intex) [email protected]

105
HIGG
INDEX 2.0

The Higg Index 2.0, developed by the Sustainable Apparel Coalition (SAC), is a set of
indicator-based assessment tools that asks practice-based, qualitative questions to
gauge environmental sustainability performance and drive behaviour for improvement
across three modules: Facility, Brand, and Product.

As a member of the SAC, we have adopted the Facility module of Higg Index and have Deciphering the Scores
assessed our major manufacturing units on their environmental parameters. The units
are scored across material areas like environmental management system, energy & GHG, Level 1
water use, wastewater, air emission, waste management and chemical management.
30
POINTS
Awareness, understanding
& baseline performance
Unit 2013 2014 2015 2016
Level 2
Naroda 55 59 66 74

Santej 62 81 71 71 30
POINTS
Planning &
management

GED Mysore Road 64 63 63 93

Level 3
GED Bommasandra NA* NA* 40 64 Implementing sustainability

GED Electronic City NA* NA* 43 41 40

POINTS
measures, demonstrating
performance and progress

*The Bommasandra and Electronic City units started adopting the Higg Index in 2015

Enhancing Performance
We aim to enhance our current scores by:

• Pursuing long-term targets on environmental strategy

• Working with suppliers on environmental impacts

• Substituting groundwater with STP water

• Improving the chemical management system

106
 GRI G4 CORE CONTENT INDEX
G4 Disclosure Title Level of Location of Additional Explanation
Disclosure Reporting Disclosure

Strategy & Analysis

G4-1 Statement from senior decision-maker Fully Pg. 3

Organisational Profile
G4-3 Name of the organization Fully Pg. 5

G4-4 Activities, brands, products, and services Fully Pg. 9, 10

G4-5 Location of headquarters Fully Back Cover

G4-6 Location of operations Fully Pg. 105

G4-7 Ownership and legal form Fully Pg. 105

G4-8 Markets served Fully Pg. 9

G4-9 Scale of the organization Fully Pg. 9

G4-10 Information on employees and other workers Fully Pg. 49

G4-11 Collective bargaining agreements Fully Pg. 39

G4-12 Supply chain Fully Pg. 28-29, We have considered Cotton and Chemical as
90-91 the main components of the supply chain.

G4-13 Significant changes to the organization and its supply chain Fully There were no significant changes to the
organization’s size, structure, ownership, or supply
chain during the reporting period.

G4-14 Precautionary Principle or approach Fully Pg. 99, 100, Arvind Ltd. applies the Precautionary Principle in
104 operational planning, new product development
to reduce or to avoid negative impacts on the
environment.

G4-15 External initiatives Fully Pg. 10

G4-16 Membership of associations Fully Pg. 10

Identified Material Aspects and Boundaries

G4-17 Entities included in the consolidated financial statements Fully Pg. 105 The units and businesses covered, comprise
majority of our operations.

G4-18 Defining report content and topic Boundaries Fully Pg. 105

G4-19 List of material topics Fully Pg. 21, 22

G4-20 Explanation of the material topic and its Boundary Fully Pg. 105

G4-21 Explanation of the material topic and its Boundary Fully The report structure has been derived from the
material issues. Hence, every impact - direct and
indirect of every material issue has been
described in detail, in the report.

G4-22 Restatements of information Fully No major restatement of information occurred

during the reporting period.

G4-23 Changes in reporting Fully Pg. 105 The reporting parameter has been changed from
GRI G3.1 to G4

Stakeholder Engagement

G4-24 List of stakeholder groups Fully Pg. 17

G4-25 Identifying and selecting stakeholders Fully Pg. 17

G4-26 Approach to stakeholder engagement Fully Pg. 18

G4-27 Key topics and concerns raised Fully Pg. 21, 22

Report Profile

G4-28 Reporting period Fully Pg. 105

G4-29 Date of most recent report Fully This is our second report. Our maiden report covered
our sustainability performance till March 31, 2014.

G4-30 Reporting cycle Fully Pg. 105

G4-31 Contact point for questions regarding the report Fully Pg. 105

107
G4 Disclosure Title Level of Location of Additional Explanation
Disclosure Reporting Disclosure

G4-32-a Claims of reporting in accordance with the GRI Standards Fully Pg. 105

G4-32-b GRI content index Fully Pg. 107

G4-32-c External assurance Fully This report is not externally assured

G4-33 External assurance Fully This report is not externally assured

Governance
G4-34 Governance structure Fully Pg. 12

Ethics and Integrity

G4-56 Values, principles, standards, and norms of behavior Fully Pg. 7, 8, 13

Specific Standard Disclosures

G4-DMA-a Explanation of the material topic and its Boundary Fully Pg. 22

G4-DMA-b The management approach and its components Fully Pg. 11, 25, The DMAs have been spread out across the report.
35, 51, 61, Every core input section begins with Arvind
70, 79, 89, Management's approach on that particular
92, 98-99 materiality issue.

G4-DMA-c Evaluation of the management approach Fully We have management systems such as ISO-14001 for
Environment, OHSAS-18001 for Health & Safety &
SA8000 for Labour/social related issues. All these
management systems and associated policies are
reviewed every six months by management
committees that have been formed for each of these
systems. In these meetings Management reviews the
effectiveness of the systems and also provides
direction for doing things differently in case needed.

G4-EN34 The management approach and its components Fully No grievances regarding environmental impacts
filed through formal grievance mechanisms
during the reporting period.

G4-LA16 The management approach and its components Fully No grievances regarding Labour practices were
filed through formal grievance mechanisms
during the reporting period.

G4-HR12 The management approach and its components Fully No grievances regarding Human Rights were filed
through formal grievance mechanisms during the
reporting period.

G4-SO11 The management approach and its components Fully No grievances regarding social impacts were filed
through formal grievance mechanisms during the
reporting period.

G4-PR5 "Approach to stakeholder engagement Key topics Fully Pg. 17, 18

and concerns raised"

G4-PR6 Activities, brands, products, and services Fully The organisation does not manufacture or sell
banned or disputed products in any market.

Specific Disclosures on Material Aspect

G4-EN3 Energy consumption within the organization Fully Pg. 71

G4-EN6 Reduction of energy consumption Fully Pg. 72-76

G4-EN8 Water withdrawal by source Fully Pg. 81

G4-EN10 Water recycled and reused Fully Pg. 82

G4-EN23 Waste by type and disposal method Fully Pg. 92-94

G4-EN28 Reclaimed products and their packaging materials Fully Pg. 94, 97

G4-LA1 New employee hires and employee turnover Fully Pg. 49

G4-LA9 Average hours of training per year per employee Fully Pg. 36

G4-LA10 Programs for upgrading employee skills and Fully Pg. 37

transition assistance programs

G4-EC1 Direct economic value generated and distributed Fully Pg. 62

G4-EC4 Financial assistance received from government Fully Pg. 62

108
 ACRONYMS
ABS Anti Back Stain

APH Air Pre-Heater

BCI Better Cotton Initiative

BCP Business Continuity Planning

BOD Biochemical Oxygen Demand

CDP Carbon Disclosure Project

CMD Chairman & Managing Director

CMP Chemical Management Policy

CNG Compressed Natural Gas

COA Certificate Of Analysis

COD Chemical Oxygen Demand

CSR Corporate Social Responsibility

EIM Environmental Impact Measuring

ERM Enterprise Risk Management

ETP Effluent Treatment Plant

FLMs Front Line Managers

GHG Greenhouse Gas

GRI Global Reporting Initiative

GRS Global Recycling Standard

HIRA Hazard Identification & Risk Analysis

IR Industrial Relations

JV Joint Venture

LCA Life Cycle Assessment

MRSL Manufacturing Restricted Substances List

MVRE Mechanical Vapour Recompression Evaporation

NLRDF Narottam Lalbhai Rural Development Fund

OHC Occupational Health Centre

OHSAS Occupational Health and Safety Assessment Series

PFCs Perfluorochemicals

PFOA Perfluorooctanoic Acid

PFOS Perfluorooctane Sulfonate

PIL Product Information Log

RSL Restricted Substances List

SAC Sustainable Apparel Coalition

SCDMF Shree Chandraprasad Desai Memorial Foundation

SHARDA Trust Strategic Help Alliance for Relief to Distressed Areas Trust

SHGs Self Help Groups

STP Sewage Treatment Plant

TDS Technical Data Sheets

VFD Variable Frequency Drive

ZDHC Zero Discharge of Hazardous Chemicals

ZLD Zero Liquid Discharge

109
 Ahmedabad – 380025,
Gujarat, India.
Naroda Road,

For feedback related to the report or any queries,

please contact us at: [email protected]
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