MGI COUTIER EXOTECH INDUSTRIES PVT LTD Creating A Path For Sustainable Business (MEIPL) 1ST Business Sustainability Report GRI-G4- In accordance (Core) 2014 - 15
CONTENTS Our long term strategy .............................................................................................................................................. 2 Creating a path for sustainable business ............................................................................................................... 3 COO Statement ......................................................................................................................................................... 4 About the Report....................................................................................................................................................... 5 Strategic Priorities with respect to Sustainability ................................................................................................... 6 MGI Coutier Exotech Industries Pvt Ltd- “A Snapshot” .......................................................................................... 7 Awards and Accolades ........................................................................................................................................... 14 Corporate Governance – The way we operate...................................................................................................... 15 Materiality Analysis ................................................................................................................................................. 17 Stakeholder Engagement ...................................................................................................................................... 19 Environmental Performance .................................................................................................................................. 21 Social Performance ................................................................................................................................................ 25 GRI G4 Content Index ............................................................................................................................................. 30
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OUR LONG TERM STRATEGY Make customer satisfaction the N0. 1 Objective – Quality and Speed
Introduce and Sustainable work methods – Simple, Solid, Dependable and Durable
Be innovative in order to meet new demands in the market
Be lean in all Business Processes
To have optimal management of information
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CREATING A PATH FOR SUSTAINABLE BUSINESS Business sustainability is essential for managing the triple bottom line wherein companies need to manage their financial, social and environmental risks and opportunities. The impacts of the business sustainability refers to the people, profits, and planet. Sustainable development in business could create value for the customers, investors and environment with the business activities. Sustainable practices are required by every company than ever before. It is a challenge faced by every company to meet long term sustainability. We are creating a path for sustainable business nurturing our strong and structured values which help us to strategize our business operations. At the group level we offer innovative concepts and solutions that answers environmental concerns by various means like prevention and treatment of polluting emissions, production of lighter weight parts and practicing solutions that are bio compatible. We believe in integrated approach and hence environmental considerations are taken into account during the very first stage of product conception. Also it is necessary to inculcate sustainable business practices and management systems for a better future and journey towards sustainability. There are number of practices that would foster business sustainability and help in creating a path for laggards to leaders and holding a mark over others. These include: Stakeholder Engagement: We believe in stakeholder engagement as stakeholders are the prominent means where organization can learn, improve and progress. Environmental Management Systems: These systems help in planning objectives and set targets for firm’s environmental efficiency. At group level we have recognized the need of ISO 14001 implementation and adopted it for better performance standards. Reporting and Disclosure: It is always necessary to be transparent and hence reporting your stakeholders plays an important role. We realized this need and on our first year journey towards sustainable reporting through Global reporting initiative have marked a step forward. Thus, envisioning a sustainable journey we are creating a path for sustainable business.
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COO STATEMENT Dear Stakeholders, I am happy to present you all the Company’s First Sustainability Report for the year 2014-15. We live in rapidly changing environment where in businesses need to cater to the ever growing expectations of the market and sustain to maintain a leadership position. We have completed 19 years of journey as joint venture with MGI Coutier group and catered efficiently to the market ups and downs. We are a direct manufacturer in automotive and heavy goods who offer world renowned and expertise products over a wide range. Our customers usually cater to the commercial and passenger vehicle segment. It is very evident that we remain successful only if we ensure sharp focus toward our customers. We have started new product development and project management team to help customer oriented process and handle operations efficiently. Sustainability at MGI Coutier Exotech Industries Pvt Ltd means ensuring the organization’s holistic growth with authenticity, to ensure long term success and wellbeing. For this it became essential for us to plan short and medium term strategies with respect to sustainability of the organization. We wish to improve profitability, customer satisfaction index- quality and speed, employee satisfaction, productivity improvement, implementation of new processes for operational efficiencies, discover new growth opportunities in terms of advance projects. On specific environmental front, we have strategized some objectives like enhancing awareness among the employees through continual training, conservation of natural resources and prevention of land pollution. We encourage manufacturing respectful to the environment and hence have adopted ISO 14001 throughout our Group. Our strategy of localized production have led us to serve domestic markets efficiently reducing transport and logistic operations. We are working hard to build an innovative, sustainable, and market-driven solutions business that will make lives better for us and people everywhere. I can assure all stakeholders that we recognize the responsibility placed on us and will continue to work even harder and smarter in the future. I encourage you to learn and understand in detail the results for the year 2014-15 and share your insights with us for strengthening relations.
Bhooshan Parkhi COO MGI Coutier Exotech Pvt Ltd.
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ABOUT THE REPORT Globally, MGI Coutier Group is characterized by legal structure which is composed of seven divisions based on product lines, an aftermarket division dedicated to after-sales market, subsidiaries and joint ventures and various functional departments to lead support and homogeneity. This business sustainability report is a reflection of MGI Coutier Exotech Industries Pvt Ltd (Indian JV) commitment to ensure not just speed but also authentic and holistic growth of the organization. This report is our first report in the Sustainability Reporting journey and is prepared with the basis of latest reporting guidelines on Sustainability (G4) developed by Global Reporting Initiative (GRI). The disclosures presented in this section are in alignment with criteria mentioned under the GRI (G4) Guidelines. Even though this being our first sustainability reporting journey the data management, collection and tracking systems were already in place from various departments across our operations. This enabled us to have efficient data analysis for sustainability management. Although there were challenges faced while collating the data and we assure these processes would be improved during the next cycle of reporting. The theme of this sustainability reporting journey is chosen to be “Creating a path for Sustainable Business”.
REPORT SCOPE AND BOUNDARY This report would cover operations and business activities from MGI Coutier Exotech Industries Pvt Ltd which was incorporated in 1996 and started a joint venture and license agreement with MGI Coutier in 2004. The report includes the operations carried out at the Pune plant. This report has been prepared as per GRI G4 guidelines and is aligned to “Core” reporting.This report will focus on sustainability performance for the year 2014-15. We conducted a materiality assessment internally in our organization to understand critical issues and have disclosed information pertaining to seven different aspects. These aspects stand of importance within our organization. This report highlights the key stakeholders and the mode of engagement followed to understand their priorities. For this report, we have adopted an extensive stakeholder engagement approach taking into account their views for key aspects of Sustainability. As we move ahead on our sustainability journey, we commit ourselves to take our sustainability agenda to the next level of our performance.
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STRATEGIC PRIORITIES WITH RESPECT TO SUSTAINABILITY Improve profitability Customer Satisfaction Index- Quality & Speed Employee satisfaction - Welfare, training & culture improvement Value Addition to Capital Employed Productivity Improvement Tools: Lean management / 2S2F / Takt time / Kanban / VSM / TPM / tooling management to improve OEE Cost of non-Quality Internal Rejection / Premium freight Cost reduction through VAVE saving - Innovate in product, processes & purchase (Process or BOM improvisation) Technical PPM reduction, Reduction in recurrence complaints, Reduction in Incidents per Billion. New business lines - Advance projects (new growth opportunities) Promotional meetings - Existing and new customers New process - Apply VSM or Process Failure Mode and Effect Analysis - To improve operational efficiencies across all business processes. To achieve quality right first time.
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MGI COUTIER EXOTECH INDUSTRIES PVT LTD“A SNAPSHOT” MGI Coutier Group is a legal composition of a limited executive managing supervisory board and board of directors which includes: a) Seven divisions based on product lines (Articulated Systems, Auto tube, Avon Automotive, Closing Systems, Fuel Systems, Mechatronics and Powertrain) b) An Aftermarket Division dedicated to the after-sales market c) Subsidiaries and Joint Ventures d) Functional Departments to lend support and homogeneity.
Functional Departments Board of Directors
Product Divisions
Supervisory Board After market Divsion
Subsidiaries
Our organization was incorporated in 1996 and started as a joint venture between Exotech Group and McKechnie, a world leader in the automotive fluid handling system. The commercial operations were kicked off from the year 1998. MGI Coutier established a joint venture and license agreement with us in 2004 setting up a new venture called as MGI Coutier Exotech Industries Pvt Ltd. We are an independent automotive equipment manufacturer active in two broad families of products like fluid transfers and mechanisms. We have sustained our leadership position in the market and have found a prominent place for itself in the hearts of millions of customers.
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SCALE OF ORGANIZATION We have wide base of our operations in the MGI Coutier group located across the globe. With a wide base of industrial sites, representative offices and partnerships in almost 22 countries located in five continents, we have well established our base and catered to the changing demands of market and needs of the customers. Our organization headquarters are located in France.
MGI Coutier Exotech Industries Pvt Ltd in India has its plant located in Pune with satellite unit in Pantnagar and Chennai.
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COMPANY OWNERSHIP MGI Coutier Exotech is a Private Limited Company and is a subsidiary of MGI Coutier Group. We have private ownership which comprises of 50:50 joint venture between Exotech, India and MGI Coutier, France.
PRODUCT PORTFOLIO AND OPERATIONS We have a large base of operation which include extrusion, cutting, forming, assembly and testing. During the reporting year we have a net sales of 80 crores.
TECHNOLOGIES AND PROCESSES
Extrusion
Cutting
Forming
Assembly
Testing
We offer a wide range of product portfolio to cater to the demands and challenges encountered.
Brake Booster Lines
Tank side Fuel Lines
Fuel Feed and Return Lines
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Engine Fuel Lines
Leak off Rails
Air Brake Tube Bundle
Fuel Rail
SCR Lines (Heated and Non heated)
Clutch Lines
Clutch Lines
Dip Stick
Fuel Accumulator
These products cater to the needs of commercial vehicles of wide customer base like Tata Motors Ltd, Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd, Renault India, Volvo Eicher commercial vehicles Ltd and Man Trucks India Pvt Ltd, Daimler India commercial vehicles Pvt Ltd.
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ORGANIZATIONAL STRUCTURE There were no significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.
MARKETS SERVED We serve products to the automotive sector and we have presence in all segments HCV (Heavy Commercial Vehicle), LCV (Light Commercial Vehicle) and SUV's (Sports Utility Vehicles) and Passenger Cars and supplies are all over India like Maharashtra, Kolkata, Chennai, and Madhya Pradesh.
EMPLOYEE DETAILS We have employed over 432 people in our various operations.
Regular Employees – 132
Contract Employees – 300
Total – 432
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There is no union in our organization but operating employees which are permanent are covered under wage negotiation.
VALUE CHAIN As we source hundreds of components for our manufacturing operations we have a huge supply chain. As of 31st March 2015 we have a total supplier base of 51 suppliers. Our suppliers are based within and outside India.
Supplier details for our organization
Suppliers outside India
Suppliers in India
38
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Pune, Faridabad, Madurai, Bangalore, Mumbai, Baroda, Daman, Hyderabad
France, China, Germany, USA, Switzerland
The sequence of activities or parties that provides products and services to the organization is presented in the below diagram:
Tier III Supplier ( RM / BOC)
Tier II Supplier ( RM / BOC)
Processing at MEIPL ( TIER 1 ) (Auto Component)
Customers
We deal with various types of suppliers which provide Nylon (various grades), BOC (Bought out Components) suppliers (Metal, Rubber, Plastic BOC), Packaging Suppliers (Corrugated Boxes, Closure caps, Identification & Packing stickers) etc. We work continuously with our suppliers to improve the processes at their end and provide support in their plant improvement activities.
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EXTERNAL CERTIFICATIONS OR COMMITMENTS BY THE ORGANIZATION Certifications ISO/TS 16949 Quality ISO 14001 Environment OHSAS 18001
Year of adoption 2006 2012 Planned for July 2015
Currently we do not endorse or hold any memberships with external institutions on social environment and economic issues.
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AWARDS AND ACCOLADES In October 2008, we were awarded by Tata Motors for Excellence in cost Effectiveness
In the year 2008 awarded by Knorr Bremse System for Commercial Vehicle Pvt. Ltd. Appreciation for Supporting SOP
In the year 2009-10 awarded by Ashok Leyland Ltd for QCLDM performance in Sheet Metal and Non Metallic Category for the year 2009-10 In August 2011, we have received the Certificate for Appreciation from MARUTI SUZUKI In February 2012, we received the Certificate for successfully completing The U NIDO-MCCIA Supplier Development Program(First Batch)
In the year 2012- 2013 awarded by TATA MOTORS for best supplier
Kaizen– among Top 20 in Western region Awarded by M&M for the year 2012
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CORPORATE GOVERNANCE – THE WAY WE OPERATE We believe that good corporate governance is essential for building a strong foundation and inculcating trusty relationship with our stakeholders, management and Board of Directors. We are always committed to the best standards of governance practices and high business standards. We foster strong and structured values like:
• • • •
Flawless product performance which exceeds customer satisfaction in every aspect of QCD (Quality, Cost and Delivery) Major Shareholders characterized by their long-term vision. Transparency in communication Abiding statutory and legal requirements
A brief glimpse into our functional departments is as seen further:
Purchasing
International Business Development
Design & Industrialisation
Industrialization
Scientific Management
Finance and Legal
Marketing and Sales
Human Resources
Information Technology
Quality Systems
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CODE OF CONDUCT We have formulated a code of conduct which is applicable to all employees of MGI Coutier Exotech Industries Pvt Ltd. We are committed to conduct its business in accordance with the applicable laws, rules and regulations, and with highest standards of business practices and ethics. The issues covered in this Code are of utmost importance to the company and customers. These are accordingly relevant and important for all employees of the Company. The code of conduct covers various aspects mentioned below:
• • • • • • •
Corporate Opportunities Related Parties Confidential Information Practices of the company Honest and Ethical Conduct Protection and proper use of Company’s assets Relationship with Suppliers, customers, competitors. General Conduct and Relationships
The personnel responsible for various departments in our organization (Pune Plant) are given in below table:
Department
Head
QMS Deployment
Santosh Halunde
Sales and Marketing
Prabhakar Shahne
Product Design and Industrialization
Pravin Jasud, Prashant More, Rahul Tayade
Delivery
Naresh Chaudhary, M.Wagh
Invoicing and Cash collection
Ajit Gokhle
Complaint treatment
Santosh Halunde
Purchase Management
Prashant Pant
Information Processing
Ajit Gokhle
Document Management
Santosh Halunde
Human Resource Management
Devendra Chaudhari
Utility Control
Naresh Chaudhary
Control of Measurement
Santosh Halunde
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MATERIALITY ANALYSIS Materiality is the principle of defining social, economic and environmental aspects those that matter to our organization. For any organization, sustainability impacts create opportunities and well as risks. With this intention the first materiality exercise was conducted with all our top management team and stakeholders to understand the material issues and prioritize them as per their impact on our performance. The internal materiality assessment exercise helped to define the material issues important to our organization and also to define the content. This was also done to analyze issues which is of importance to the stakeholders. The materiality of each aspect of the GRI G4 reporting framework was evaluated and is described throughout in this report. The materiality assessment process was as follows:
Issue Identification Analysis of the business operations Comprehensive list of issues based on research and discussions
Materiality Assessment
Shortlist of issues considering impact on business operations
Review and Confirmation
Top material issues were reviewed and confirmed
We are using the information from the assessed materiality issues to plan our business strategy in order to inculcate sustainable practices in our operations. As this being our first sustainability reporting journey we continue to fine tune the materiality process to make us responsible towards our stakeholders.
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The following diagram represents the materiality matrix of the aspects that relate to our business. The aspects that are important to us and our stakeholders are monitored and reported through our sustainability report.
Material Issues
GRI Aspects
Key Performance Indicators
Customer Satisfaction
Product and Service Labeling
G4 PR 5
Human/Labor Rights
Training and Education
G4 LA 9
Occupational Health and Safety
Occupational Health and Safety
G4 LA 5
Water consumption
Water
G4 EN 8, G4 EN 10
Energy consumption
Energy
G4 EN 3, G4 EN 6
Employee Engagement
Labour Practice Grievance Mechanisms
G4 LA 16
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STAKEHOLDER ENGAGEMENT We believe that stakeholder engagement is fundamental to success of business. Value Creation for everyone involved in enterprise is fundamental to keep the business operations ongoing. We constantly strive to strengthen the stakeholder engagement practices to meet and satisfy expectations of the society. We have well established our stakeholder engagement activities and processes by analyzing our stakeholders. Engagement activities with them is an ongoing process which takes place throughout the year, wherein the frequency and mode of engagement caters to needs of the activity. We identify our key stakeholders through their impact on our business and the value we create for them in return. The stakeholders which are important for MGI Coutier Exotech Industries Pvt Ltd are vital for our successful business growth, especially because quality in our products and services is of utmost importance to us, all the while meeting customer requirements at the required time.
Communities
Customers
MGI Coutier
Exotech Ovt Ltd
Investors
Employees
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EMPLOYEES Stakeholders
Employees
Employees
Activity
Formal/Informal Frequency
Employee Satisfaction Survey/ KRA / Communication meeting / Performance Indicators / Appraisal. Annual Day/ Festivals like Ganesh Chaturthi
Formal
Continual
Informal
Once yearly
Engagement approach to address concerns Understand employee’s feedback and their views regarding organization, Performance development activities for yearly appraisals. Annual day for employee’s recreational activities.
CUSTOMERS Stakeholders
Activity
Formal/Informal
Customers
Customer Satisfaction Survey
Customers
One to One Meetings Exhibitions Dealer meets
Frequency
Engagement approach to address concerns
Formal
Annual
Customers have played a critical role by demanding Sustainable products. Hence to stay updated it’s necessary to know their expectations.
Formal
Depending on requirement
We recognize customers as our important stakeholders to carry out business transactions depending upon demands and requirements.
COMMUNITIES Stakeholders
Activity
Formal/Informal Frequency
Engagement approach to address concerns To satisfy OEM in Quality / Cost / Delivery, suppliers play very important role. Their continuous improvement programs helps MEIPL to remain competitive
Supplier Partners
One to one meetings
Formal
Continual
Surrounding companies, Villages
One on one discussions
Informal
As per need
INVESTORS Stakeholders
Investors
Activity Periodic meetings
Formal/Informal Frequency
Formal
Annual
Engagement approach to address concerns JV partner plays very important role in keeping MEIPL up-braced with the technology to keep us competitive. Subsidizing performance is judged through sustainable improvement in Quality PPM / Speed and profitability indices
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ENVIRONMENTAL PERFORMANCE DISCLOSURE ON MANAGEMENT APPROACH MGI Coutier Exotech Industries Pvt Ltd aims to offer innovative concepts and solutions to the customers in order to have all environmental concerns addressed. We have developed various environmental initiatives within our product lines for prevention and treatment of polluting emissions, production of lighter weight parts, putting into practice solutions that are compatible with bio fuels or that meet the needs of hybrid and electric vehicles. We ensure that our strategies are well inclined towards environmental considerations and our products are integrated with these strategies. We believe in manufacturing that is respectable to the environment and hence we have adopted ISO 14001 certification back in 2012 and applied these management standards throughout the group. The reduction of energy consumption, scrappage, and waste are all key objectives at each of our sites. Wherever possible, we have moved to returnable packaging (PP boxes or trolleys) with OEM’s. That way, we have reduced use of corrugated box consumption. ISO 14001 gave us a good insight about natural resource conservation and minimal usage. Over last six months, we have achieved unity power factor and recycling of process water has reduced overall water consumption. Further trials are ongoing for electrical power reduction conservation through use of LED lights exploring possibility of alternate energy resource (like solar) and addressing losses in the process. We also have incorporated strategy of localized production helps us to reduce “the globality of our products” by decreasing transport and logistic operations contributing to pollution.
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STRATEGIC TOPICS FOR SHORT AND MEDIUM TERM WITH RESPECT TO SUSTAINABILITY
Enhancing awareness among the employees through continual training. •Awareness of Environment Management System to all employees within the organization
Conservation of natural Resources
Prevention of land pollution
•Reduction in consumption of water •Consumption of electricity (KWh) / Number of part produced, kwh/part •Reduction in consumption of paper •Reduction in consumption of Diesel •Reduction in consumption of Nylon
•Separate storage yard for storage of identified Hazardous Waste. •Recycle of Process water •In-house STP (Sewage Treatment Plant)
EMS Objective Deployment Matrix 2013 EMS Awareness / Employee Training hours Reduction in consumption of water, % Consumption of electricity, KWh / part Reduction in consumption of paper, Rims / Mnth Reduction in consumption of Diesel, Ltrs / Hr (140 KVA) Reduction in consumption of Diesel, Ltrs / Hr (200 KVA) Reduction in consumption of Nylon, Grams Reduction in consumption of Diesel, % Sale Reduction in consumption of Nylon tube, 50% Scrap 11x8 tube
2014
Target
5
3
4
10.89
8.69
5
0.29
0.28
0.25
30
32
25
Not monitored
16.15
16
Not monitored
22.08
22
65
64
63
0.70
0.63
0.65
100
100
100
22
Initially there was no separate provision of storage of identified Hazardous Waste. Now there is separate provision of storage of identified hazardous waste. Conservation of resources through reduction in consumption of water. Conservation of resources through reduction in consumption of energy. Conservation of resources through reduction in consumption of Paper. Prevention of Land Pollution. Enhancing awareness among the employees.
Energy Consumption Energy costs are rising. It is necessary for implementing energy management as increase in energy costs impacts the cost of manufacturing. Our constant demand for energy due to manufacturing operations has been on card. For the reporting year of 2014-15 the direct energy consumption through electricity has been recorded.
Electricity Consumption(GJ) 2014-15 500
Electricity Consumption (GJ)
450 400 350 300 250 200 150 100 50 0
Months
Energy Conservation Efforts Some of the activities carried out during the year towards energy conservation are mentioned as under:-
Achieved Unity power factor in November’14, helped in reducing energy loss. Re-use of process water reduced one pumping cycle thus conserving energy consumption by 4950 units. This initiative was implemented in month of January 2015 in utility section. 23
Losses due to water overflow from 5 overhead tanks reduced by implementation of water level sensors amounting to 2475 units of conservation of electricity. This initiative was implemented in month of February 2014 in utility section.
Water Management Water conservation is an integral part of Environment Management System. We use ground water for most of our manufacturing operations. In case of need we also use tanker water for our process operation. We have efficiently put in place all systems to gather and monitor all water related data. We recycle and reuse water in order to conserve the natural resource. This is a part of our Environmental Management system.
TOTAL WATER CONSUMPTION (Litres)
Total water Consumption (Litres) 350000 300000 250000 200000 150000 100000
314700320000 281920 267200 255990 252830 235970 225120 216500 201050202390 174100
50000 0
MONTHS
Total Water consumption for MEIPL
Water recycled( %)
Percentage of Water Recycled 70 60 50 40 30 20 10 0
61 37
34
44
59 40
46
52
56
60
49
49
Months
Percentage of Water recycled for MEIPL 24
SOCIAL PERFORMANCE DISCLOSURE ON MANAGEMENT APPROACH The social dimension of sustainability concerns the impacts the organization has on the social systems within which it operates. Our overall social commitment is focused around: 1. 2. 3. 4.
Occupational Health and Safety Employee Engagement Employee training and Education Customer Satisfaction
We follow best practices as per industry standards in providing a healthy, safe environment for each of our employees. We are aware that people are critical for any organizations success and hence we take care of them by implementing various measures. To imbibe upon good work culture and working freedom we build trust amongst our employees, engage them in various activities to help grow their participation. Training and education form an important part of our organizations sustainability objective. We work on various training and development activities to improve permanent and contractual employee’s skills. Customer satisfaction is essential in order to achieve growth and profitability in our company. A decentralized and cross-functional organization supports this policy.
Occupational Health and Safety We realize the fact that being a manufacturing firm our employees are exposed to occupational hazards and hence we consider health and safety of employees as one of the material issues which impact our business operations. We have a safety committee which has been constituted as per the guidelines of the Factories Act 1948 (India) comprising an equal number of worker and management representatives. The percentage of total workforce represented in formal joint management- worker health and safety committees that help monitor and advice on occupational health and safety programs is given below: Safety Committee ( Gender )
Number of Members Management
Number of Members - Workers
All male
6
6
During the reporting year, there was zero fatality due to accident within the Company boundaries. There were two reportable injury case within permanent workers and 32 within contractual workers. The number of lost days accounted during the reporting year were 52 days for contractual and permanent employees. There is formal agreement with trade unions to cover health and safety related issues and all employees and their families are covered under mediclaim policy.
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Every year safety week is celebrated in order to create safety work culture in the organization. Various events are organized during the safety week and employees are rewarded for their contribution in creating safety culture in the organization.
Safety Week Celebration Health and Safety of our employees at work is given prime importance and awareness is created among employees about health and safety by conducting trainings, mock drill, and yearly health checkups. In addition to this following are being done on regular basis
Job Safety and Risk Analysis Preventive action on identified potential risk On site emergency plan prepared for potential risks External safety audit once in year Safety week celebration
Employee Engagement “To create a win-win situation organizations seek to maximize productivity and profitability of their employees and in turn employees seek satisfaction from their work. We at MGI Coutier Exotech Industries Pvt Ltd seek to have this win-win situation to keep our business operations growing. We understand that employees are assets and can estimate the impact of engagement activities among the employees with their performance standards. The various modes through which we engage our employees regarding their performance and review is through annual KRA, monthly communication meeting, performance indicators, appraisals etc. We stand different compared to other organizations because of open work culture, ethical business practices. 26
We help employees to be proactive and participate in various engagements like:
FOUNDATION DAY Foundation day has been established as a day of remembrance, a day of honoring, a day of to celebrate what has been achieved so far and a day to look forward to what is yet to come. MEIPL is celebrating its progressive journey, the 2nd of September, as a foundation day. The day is celebrated by conducting various events and recognizing and appreciating employee’s contributions for taking company forward.
FESTIVAL CELEBRATIONS Festivals like Ganapati, Dassera are celebrated collectively in the organization, which helps employees to strengthen the bondage between them.
PICNIC AT REGULAR INTERVALS The one day picnic is arranged at regular intervals, where in all employees spent time together to strengthen the bonding in the team.
QUARTERLY COMMUNICATION The communication meeting is used to recognize employees for their significant business achievements and familiarize employees the progress on goals and objectives of the organization.
SUGGESTIONS / IDEA SCHEME/ KAIZEN The suggestion scheme is a platform available for employees to put forth their new ideas in connection with their work or others work, it enhances innovation, creativity among employees
STAFF QUARTERLY MEETINGS
EMPLOYEE SATISFACTION SURVEYS Every year employee satisfaction survey is conducted in order to understand concerns of employees on various activities and actions are taken to improve the satisfaction level of employees across the organization
The employee engagement activities help to encourage employees to think about their job and responsibility. Our COO spends time with the employees through personal communication. We also have quarterly and monthly awards for workers in order to encourage them for their significant
contribution for enhancement / improving the Quality, Productivity and Safety at work place. There is annual award given for zero absenteeism in the calendar year.
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Mock Drill is conducted once in a six month with a view to create awareness among employees to tackle the potential hazards at work place to minimize, eliminate its impact on human or on the company. We conduct soft skill as well as technical training for all employees with a view to enhance their skill level to meet horizontal and vertical growth.
Employees as a part of birthday celebration voluntarily contribute along with company to social funds. A blood donation camp is organized by the company wherein employees contribute for social cause. As a part of completing five or ten years with our organization we give employees long term service recognitions. We also recognize employees children’s are recognized for their outstanding performance in academic especially in in SSC and HSC as well as for their outstanding performance sport. We have a grievance redressal mechanism and have framed a policy which elaborates these mechanisms. There were three complaints filed in the reporting period which were resolved as per the policy.
Training and Education We reinforce the system for long term value creation through empowerment of our people. To continuously cater the market needs it is extremely essential for employees to be updated with current trends and practices. Hence, we assessed the need of training and we took efforts for employees’ extensive training and learning opportunities through well designed training programs rolled out this year.
Average number of training hours( 2014-15)
Number of hours
10000 8000
9886
6000 4000
683
2000
2891
0 Operators
Company Operators Type of workers
Permanent - Staff
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Customer Satisfaction It is self-evident to keep customers satisfied as it is rightly perceived that satisfied customers usually return and buy more, share their experiences and may pay well for the privilege provided. Developing a customer satisfaction program is not just carrying out a survey. We provide a differentiation factor as compared to other organizations in terms of quick response and in time support, timely delivery, and initiatives for innovative design concepts, commitment and responsiveness towards customers. We conduct customer meetings regularly to enhance customer satisfaction by understanding their needs and support them in engagements. The process of conducting Customer satisfaction surveys is elaborated below: Customer needs and wants from the strategic Plans, marketing files & reports are listed. Further information examples are specific and targeted investigations, suggestions through audits, feedback from customer Visits, IQ etc. are obtained. Reports of visits, investigations, past customer satisfaction survey, customer performance rating are outputs and are translated into needs and requirements & processed and action plans are decided / implemented. Measurement of Satisfaction Index is taken from the customer satisfaction surveys and performance is measured at least once a year. Based on the severity & recurrence action plans are prioritized. Status of actions are communicated to customer. The Customer satisfaction survey was conducted in India in cities like Pune, Chennai, Nashik, Pitampur, Lucknow, Mumbai etc. We conducted this survey internally without any involvement from external agency. We have a method of measuring customer satisfaction on quarterly basis. The results of this survey were appreciable and score was on average greater than 85%.
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GRI G4 CONTENT INDEX GENERAL STANDARD DISCLOSURES General Standard Disclosures
Description Information related to Standard Disclosures required by the ‘in accordance’ options may already be included in other reports prepared by the organization. In these circumstances, the organization may elect to add a specific reference to where the relevant information can be found.
Page Number
External Assurance Indicate if the Standard Disclosure has been externally assured. If yes, include the page reference for the External Assurance Statement in the report.
Strategy And Analysis G4-1
COO statement on sustainability.
4
No external assurance
Organizational Profile G4-3 G4-4 G4-5 G4-6 G4-7 G4-8 G4-9
G4-10
G4-11 G4-12 G4-13 G4-14
G4-15
G4-16
Name of the organization Primary brands, products, and/or services Location of organization’s headquarters Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report Nature of ownership and legal form Markets served (including geographic breakdown, sectors served, and types of Customers/beneficiaries). Scale of the reporting organization. Total number of employees by employment Contract and gender. Report permanent employees by employment type and gender, total workforce by employees, supervised workers and by gender, report total workforce by region and gender, report if substantial portion of work is by self-employees or contractors, report significant variations in employment numbers (seasonal variation). Report the percentage of total employees covered by collective bargaining agreements Describe the organization’s supply chain. Significant changes during the reporting period Regarding size, structure, or ownership. Explanation of whether and how the precautionary approach or principle is addressed by the organization Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: • Has positions in governance bodies; • Participates in projects or committees;
7 9 – 10 8
No external assurance No external assurance No external assurance
8
No external assurance
9
No external assurance
11
No external assurance
11
No external assurance
11
No external assurance
No trade union exists 12
No external assurance No external assurance
11
No external assurance
17
No external assurance
12 – 13
No external assurance
12 - 13
No external assurance
30
• Provides substantive funding beyond routine membership dues; or • Views membership as strategic
Identified Material Aspects And Boundaries G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23
All entities included in the organization’s consolidated financial statements and if any of these are not covered in the report. Process for defining report content and aspect boundaries and how the organization implemented the Reporting Principles for Defining Report Content List all the material aspects identified in the process for Defining Report Content. For each material aspect report the boundary within the organization: if aspect is material within the organization, if the aspect is material for all entities within the organization and any limitations regarding the aspect boundary within the organization. For each material aspect report aspect boundary outside the organization: if the aspect is material outside the organization, identify which entities or groups for which it is material. Describe geographical location where aspect is material for entities identified. Report any specific Limitations regarding aspect boundary outside the organization. Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
5
No external assurance
17
No external assurance
18
No external assurance
5, 18
No external assurance
5, 18
No external assurance
First Sustainability Report First Sustainability Report
No external assurance
No external assurance
Stakeholder Engagement G4-24 G4-25 G4-26
G4-27
Provide a list of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.
19
No external assurance
19
No external assurance
20
No external assurance
20
No external assurance
Report Profile G4-28
Reporting period (e.g., fiscal/calendar year) for information provided
5
No external assurance
G4-29
Date of most recent previous report (if any).
First Sustainability Report
No external assurance
31
G4-30 G4-31 G4-32 G4-33
Reporting cycle (such as annual, biennial, etc.) Contact point for questions regarding the report or its contents Table identifying the location of the Standard Disclosures in the report. Policy and current practice with regard to seeking external assurance for the report
First Sustainability Report
No external assurance
Last Page
No external assurance
30
No external assurance No external assurance
Governance
G4-34
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight
15
No external assurance
Ethics And Integrity G4-56
The organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.
16
No external assurance
Specific Standard Disclosures DMA and Indicators
Description
Identified Omission(s)
Reason(s) for Omission(s)
Page Number
Explanation for Omission(s)
External Assurance.
Material Aspect: Energy G4-DMA
G4-EN3
G4-EN6
Disclosure on Management Approach Total fuel consumption from non-renewable & renewable sources Reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives
21
No external assurance
23
No external assurance
23
No external assurance
Material Aspect : Water Consumption G4-DMA
G4-EN8
G4-EN10
Disclosure on Management Approach Total volume of water withdrawn from sources. Percentage of total volume of water recycled and resued.
21
No external assurance
24
No external assurance
24
No external assurance
32
Material Aspect : Occupational Health and Safety G4-DMA
G4-LA5
Disclosure on Management Approach Formal joint managementworker health and safety committees
25
No external assurance
25
No external assurance
Material Aspect : Training and Education G4-DMA
G4-LA9
Disclosure on Management Approach Average hours of training employees have undertaken during the reporting period.
25
No external assurance
28
No external assurance
Material Aspect : Labor Practices Grievance Mechanism G4-DMA
G4-LA16
Disclosure on Management Approach Number of grievances about labor practices filed addressed and resolved through formal grievance mechanism
25
No external assurance
28
No external assurance
Material Aspect :Product and Service Labelling G4-DMA
G4-PR5
Disclosure on Management Approach Results of survey measuring customer satisfaction.
25
No external assurance
29
No external assurance
33
Bhooshan Parkhi, Chief Operating Officer MGI Coutier Exotech Industries Pvt Ltd, 1101, Urawade Road, Pirangut, Pune 412 115. Mobile - 09325709795 Email -
[email protected]
