Sustainability Report 25mar14 - Welspun Sustainability Report_2012... · Its’ product range covers the entire gamut of ... first sustainability report “Weaving the threads of

Sustainability Report 2012-13

www.welspun.com

Weaving the threads of life

Contents

07

18

36

48

02About Welspun 02

Message from the Chairman's Desk 04

About the Report: Note from the Managing Director 06

Our Vision and Our Mission 07

Awards and Accolades 08

Getting Our Priorities Right 10

Corporate Governance 14

Economic Performance 18

Environmental Management 22

Innovation at Welspun 32

Workforce Development 36

Employee Health and Safety 44

Community Development 48

CSR Awards & Accolades 55

56GRI Content Index

64Abbreviations

ustainability can be defined as the ‘ability to education, empowerment, environment, health as well endure’. Here at Welspun, we believe that as several cultural and civic projects over the past few Ssustainable development can only be achieved years.

by measuring, monitoring and taking responsibility for the consequences that our business activities have on In terms of working towards a clean and stable society and the environment. Embedded in our daily environment, we strive towards optimal consumption operations, is a wider commitment towards the of natural resources and have invested in state of the conservative use of natural resources as well as serving art technology to make our processes and products communities at large. This will allow us to balance the more efficient and sustainable. Respecting the need for present needs of the Company and those of the future. a safe working environment, our managerial decisions

regarding the selection of materials, machinery Principles of accountability, honesty and integrity help equipment and setting up of projects are in alignment us deliver on our commitment to sustainability. We with our focus towards corporate responsibility. support and respect the stakeholders within our sphere of influence by providing employment opportunities. Our ultimate goal as an organization is to create value We have fostered the development of the local through implementing equity, promoting diversity communities surrounding our operations by and making positive impacts on our society as well the encouraging them to pursue their goals and natural environment thereby taking part in a aspirations. Collaborative and consultative transformational change. This is our commitment to engagements with our local stakeholders have driven sustainability.us to implement innovative programs focusing on

A Commitment to Sustainability...

02 | Sustainability Report 2012-13

About Welspunhe USD 3.5 billion Welspun Group is one of India's of the Fortune 100 companies in the Oil & Gas and Retail

fastest growing conglomerates, having registered a sectors. Among the group’s subsidiaries is Welspun USA, TCAGR of 30% over the last decade. Our presence is Welspun Tubular LLC, Welspun Middle East and Welspun UK.

spread across five business verticals -- Pipes, Plates & Coils; We have a diversified manufacturing base with core facilities

Home Textiles; Steel; Infrastructure; and Energy. We are a in Anjar, Gujarat; as well as other parts in India, USA and

fully integrated player in the first two verticals. We are also Saudi Arabia.

among the recognized world leaders in the fields of Line

Pipes and Home Textiles. As a Group, we possess a strong From building the world’s deepest pipeline project in the Gulf

foothold in more than 50 Countries, employing over 24,000 of Mexico to being the largest integrated towel manufacturer

people. in Asia, we ensure that we deliver excellence in what we do

and ascertain customer satisfaction through the way we do

The Group has business dealings with companies across the business.

globe, including a number of marquee clients, covering most

The following companies are a part of the Welspun Group• Welspun Corp Ltd. – Incorporated in 1995, WCL is the flagship Company of the Welspun Group and is Global giant in large

diameter line pipe segment with a total pipe capacity of 2.2 million tonnes per annum.

• Welspun India Ltd - Incorporated in January 1985, WIL is a fully integrated home textile manufacturer having a distribution

network in over 32 countries including USA, UK, Europe, Canada and Australia.

• Welspun Steel Ltd – Incorporated in 2004, WSL is a leading manufacturer of quality products like ISI certified TMT rebars as

well as ingots, billets, blooms and rolled bars in rounds, round corner squares & seamless pipes / tubes and has a capacity of

60000 MTPA

• Welspun Energy Ltd – With an aim to meet India’s rapidly growing energy demands, WEL has positioned itself to be India’s

biggest developer of solar photovoltaic projects and is an independent power producer with plans to build grid connected

750MW of solar power & 1 GW of wind power plants across India.

• Welspun Infratech Ltd - With an aim to venture into the US$500 billion infrastructure industry in India, Welspun Infratech Ltd

was set as 100% subsidiary by WCL and has undertaken infrastructure projects in the country.


Welspun India Limited (WIL) is one of the leading home

textile players in the world. It has been recently ranked as the

No #1 Home Textiles Company in USA . With a network across

32 countries, it offers the entire range of home textile

products providing a “One stop solution for Home

Textiles” across the globe through its modern, state-of-

the-art manufacturing facilities at Anjar and Vapi in Gujarat,

India. Its’ product range covers the entire gamut of bedding

and bath textiles like bed sheets, pillow cases, comforters,

quilts, and mattress pads, pillows, to bath rugs, towels and

bath robes. Majority of these products are presented and

sold in the key markets like USA, Canada, UK, Europe and

Japan. Supplier to 14 of the Top 30 global retailers, its

marquee clients include Wal-Mart, JC Penny, Target and

Macy’s to name a few. About 95% of WIL’s production is

exported to various countries across the world.

Welspun Corp Ltd. (WCL), the flagship Company of Welspun

Group, is today one of the largest ‘Large Diameter Line’ pipe

Company in the world. It has emerged as one of the leading

names in the industry over the last 15 years and today offers

a ‘one stop solution’ in line pipes with its wide product range

and specifications. It has modern state-of-the-art global

manufacturing facilities in India, USA and Saudi Arabia for

Longitudinal (LSAW), Spiral (HSAW) and ERW/HFIW pipes,

with its products manufactured under strict quality

standards. Not only does Welspun’s list of clients include

some of the biggest names from the Oil and Gas sectors, but

the Company is also well known for supplying line pipes to

some of the most challenging projects in the world like

‘Deepest pipeline, Longest pipeline, Heaviest pipeline and

Highest pipeline’. The Company exports pipes to the global

market including some of the most demanding markets in

terms of quality and innovation, like the US and Middle East.

WCL has become an approved supplier to over 50 major oil

and gas companies across the world.


Dear readers, Despite the challenging environment, we at Welspun,

have come out with a more-than satisfactory

performance and have achieved what was eluding us for a t gives me immense pleasure to introduce you to our long time - the 1 million mark. This was the first year that, first sustainability report “Weaving the threads of at Welspun, we have achieved pipe production, Ilife” a reflection of Welspun’s values, efforts and customer sales and order booking of 1 million tonnes commitment towards a sustainable future. This is an each. Our textile business made us proud during the year ongoing journey for us and we are committed to making a when it was ranked as the No 1 Home Textile Company in measurable difference to the world in which we work and the USA . This is a remarkable achievement as the US is live. In these pages, we highlight the impact we have one of the biggest and most competitive markets. This made over the last year and going forward intend to recognition is a testimony to our dedication and provide you with an annual update on our progress.innovation.

We have demonstrated world-class operating and Our goal is to grow once again in FY 2013-14 and increase financial discipline, an integrated portfolio of assets, a the income gained from our operations. We have well-defined growth plan and expanded our access to undertaken measures to align ourselves even more great opportunities as we continue to deliver on our closely with our customers and increase operational and promises to create superior shareholder value. FY 2012-technological excellence, such as the optimization of our 13 was a challenging year for the world economy with organization and segment structure. Our growth is volatile market conditions being the only constant.

Message from the Chairman’s DeskB.K.GoenkaChairman - Welspun Group


coupled closely with our investment towards rationalizing water recycling and reuse and improve our processes to

production activities, reducing environmental impact and reduce overall material intensity. Whilst we already

improving working conditions. Through renewed review our safety practices, we wish to re-focus on the

emphasis on energy efficiency and environmental impact, same. Through automation, we are looking at a 360

we are establishing new models for the deployment of our degree change in our safety performance. Our focus on

products in the market. Another essential factor for our quality, timeliness and product differentiation has helped

Group is value creation and re-distribution across our us garner the satisfaction from our customer community.

shareholders and stakeholders – which we continue to We have received awards for our commitment towards

consider equally important – in context of real and our customers and meeting their expectations.

tangible financial balance.

On account of our sustainable practices, this year we have

Research and innovation also play an important role in received multiple awards. Some of the awards that we

this phase of our growth strategy and the focus of our won are The Golden Peacock Award for Eco-Innovation;

innovation is to cover the entire value chain. In our textiles Most Preferred Furnishing Brand – MAGPPIE; Gold

business currently, nearly 30% of our revenues have been Supplier Award – TESCO; Five Star Award – Macy's;

contributed by innovative products in Bath, Bed and Rugs. Vendor of the Year Award - Sears / K-Mart amongst others.

Some of the innovative products include ‘eco smart rugs’ While we continue to focus on our efforts towards

‘recycled polyester products’ and products that consume creating stakeholder value, these awards serve as

minimal water and energy for production. motivation for our employees.

Engaging with our stakeholders has remained an We believe in giving back to the society and a substantial

important element of our sustainability plan. This year we amount from the business proceeds is invested by the

reached out to some of our stakeholders to get feedback Group in building the infrastructure for a sustainable and

on their concerns and identify their expectations of what progressive community. Our structured CSR program

we as a Company need to do to become truly sustainable. focuses on 3 Es ‘Education’, ‘Environment’ and

We have tried to address these in our report and in the ‘Empowerment & health’ under the aegis of which we

years to come we plan to involve more stakeholders to conduct our activities. Through Welspun, more than 600

identify and prioritize our material issues. women who were under the poverty line are working

professionals today with sustainable income and

supportive lifestyles and more than 3000 children have For us, sustainability is about cultural change. Although found their way into schools and education centers we understand that our contribution may perhaps have a dedicated to bring hope and change in their lives.limited impact on a global scale, our philosophy is to

contribute as much as we can, wherever we can, in order

to make even the smallest of a difference. Our key focus We would not have achieved our performance without

areas include: Resource conservation; Health and safety; the support of our stakeholders and going forward, we will

Talent attraction and retention; Product stewardship and continue to team with our people, our strategic partners,

innovation; Customer satisfaction and Empowering the our suppliers, customers and other stakeholders so that

community. Our initiatives on the environment range together we can make an even greater impact in the years

from converting the arid land in Anjar into green cover, to come. As we start our sustainability reporting journey, I

implementing state of the art facilities to improve our look forward to your support and constructive feedback.


e are pleased to present our first sustainability of our initiatives towards environmental management, we report, ‘ ’. Through maintain resource optimization, carry out water Wthis report, we intend to open a unique channel conservation through recycling, ensure environmentally safe

of communication with our key stakeholders who have been disposal of waste and carry out tree plantation activites to a part of our journey towards growth and to demonstrate our make possible a green tomorrow. Ensuring zero chemical approach towards addressing sustainability across our use, using biodegradable materials and using recycled organization. materials are some of the initiatives we have under taken for

redefining innovation and gauging our product line towards This report highlights our efforts to monitor, manage and sustainability. Employees are one of our major assets and we improve our economic, environmental and social take responsibility to encourage them towards the path of

st stperformance for the period 1 April 2012 to 31 March 2013. development. Workforce safety is given utmost priority at The report includes sustainability performance data and Welspun, which is reflected in our safety performance of zero information from our operations pertaining to our textiles fatality and reduced injuries. We believe in creating (Anjar, Vapi) and pipe and plates (Anjar, Dahej) businesses as opportunities for development around our area of well as our corporate office in Mumbai. This year we have not operations. To encourage education among school drop included any sales offices, branch offices, subsidiaries, joint outs, foster women empowerment, build skills to ensure ventures, and outsourced operations within the scope of the access to health care, is what we strive to create. report. In order to provide a holistic view of our sustainability initiatives over the years, the report also discusses select We engaged KPMG to provide advisory services for sustainability measures that were initiated prior to the developing this report. This report has been developed in reporting period. line with the requirements on the GRI G3.1 Guidelines and is

self-declared application level ‘A’.Our economic growth is linked to the value we create for our investors and customers, and believe in inclusive growth that This is the start of our reporting journey and we intend to occurs due to our investments in local development. We publish a sustainability report on an annual basis. We engage with our stakeholders to enable efficient functioning welcome your honest feedback on this report. Your remarks by being sensitive to their concerns and inviting feedback. and suggestions can be addressed to – We monitor our environmental performance to understand [email protected] identify areas for environmental conservation. As a part

Weaving the threads of life

About the Report: Note from the Managing Director R.R.MandawewalaGroup Managing Director


Our Mission

We aim to

Emerge as a global leader

Preferred by every home

Serve...with passion

grow....@speed

Innovate.....with quality

Excel...with ethics

Delighting all stakeholders.....

Our Vision

• We endeavour to reach a leadership position in each Segment / Sector of our Product / Service.

• We are committed to satisfy our customers by providing best quality and service, which gives

the highest value for money.

• We believe that employees are our most important asset through which we can reach the top

in each category of our Product / Service. Therefore, we will emphasize on their continuous

improvement through upgrading relevant knowledge and training.

• We commit ourselves to continuous growth, so as to fulfil the aspirations of our Customers,

Employees and Shareholders.

- Gold Trophy for Highest Exports of Cotton Textiles – Texprocil

- 2013 IPLOCA Corporate Social Responsibility Award – Total

- Eco-Innovation Award for Eco-Dry Towels – Golden Peacock

- 2012 Responsibility Award of Excellence – Walmart

- Excellence in Global Trade 2013 – Governor’s Award

- 5 Star Award – Macy’s

- Largest Producer - Made Ups & Home Textiles – Textile Conclave 2013 -Brand India

- Supplier of the Year – TESCO

- Largest Exporter - Made Ups & Home Textiles – Textile Conclave 2013 -Brand India


Awards and Accolades



e as a Group face many different challenges with stakeholders and therefore to Welspun and to refine and

regards to corporate responsibility. Out of these confirm our strategic approach and priorities. During the Wcertain aspects are currently significant in terms initial phase, we collated the list of issues relevant to our

of the impact that they create, whereas the others are businesses covered in the report. This was done based on our

identified as potential challenges and can become significant past experience as well as specific issues endemic to the

over a medium to long term period. Our aim is to establish sector and the geographies in which we operate. As a next

processes to ensure regular mapping of material issues. This step, we conducted in-depth interviews with the senior

will help us define our key topics and enable us to assign our management and opinion leaders at Welspun to identify

resources according to the right priorities, and identify new their perspective on the current issues requiring utmost

and emerging issues. attention. From the entire list of issues gathered, we then

identified the key issues (material issues) with inputs from

the senior management and by applying materiality To prepare our first sustainability report and to identify the

determination filters.broad aspects most relevant to the characteristics and

peculiarities of our businesses, we carried out a materiality

assessment. This exercise aimed to identify and define the The outcome of the exercise lists the following as our

material issues of fundamental importance to our identified material issues:

Getting Our Priorities Right

Resource Conservation– While we look towards expanding development are broadly focussed in the areas of Education,

our product line and increasing our capacity, we have also Environment and Empowerment & Health. Numerous

laid emphasis on conservation of resources which can affect projects have been taken up under the banner of the

our operations. We have installed state of the art RO plants to Welspun Foundation for Health and Knowledge (WFHK)

improve our water efficiency and are working towards under these domains. Through our social interventions we

reducing packaging materials through innovations. Energy have earned a social licence to operate at our plant locations.

conservation is a key focus area on the agenda at all our

locations and we have established dedicated teams to Although we made a beginning to reach out to our external

identify and execute projects. stakeholders to identify their concerns we were not able to

incorporate their inputs into the material issue identification

Health and Safety– We lay special emphasis on ensuring a and prioritization process. However, going forward we

safe workplace for our employees and have invested in intend to include our external stakeholders to a greater

creating awareness on best practices in safety. Our dedicated extent towards our materiality determination and goal

occupational health centres regularly monitor and cater to setting.

the needs of our employees.

Talent Attraction and Retention– Our aim is to be an Engaging with Our Stakeholders

employer of choice and we have strived to provide the best of We believe it is our responsibility to strengthen the interests

resources to our employees for their professional growth. of our stakeholders by dealing with them in a fair and

Focused training efforts have resulted in improving the skill transparent manner. Continual dialogue with our

levels of employees across all levels and we have specialized stakeholders enables us to determine their expectations

career development and succession planning systems in regarding our focus towards our strategy and management

place. systems. This dialogue also helps us focus more strongly on

key issues as we work to improve our sustainability

Product Stewardship and Innovation– We manifest our performance. Following this approach, the Group addresses

products with innovative capability, focused research and its efforts towards key stakeholders by promoting

ecological sustenance. The focus of our innovation covers partnerships at internal level (e.g. employees, trade unions,

the entire value chain from fibres to finished product. contractors), local level (e.g. local government, suppliers and

Currently, nearly 30% of our revenues have been contributed customers), national level (e.g. Media, industrial customers,

by innovative products in Bath, Bed and Rugs. We have made academics and research institutes, national industry

a conscious decision to include eco friendly products in our associations, investors) and international level (e.g.

portfolio. multinational investors).

Customer Satisfaction– Our focus on quality, timeliness and During the course of the year we interacted with a wide

product differentiation has helped us garner the satisfaction variety of internal and external stakeholders to understand

from our customer community. We have received awards for their concerns and formulate our response to them. We

our commitment towards our customers and meeting their engaged with our employees, vendors, customers, NGOs and

expectations. We have invested in state of the art technology community members through one-on-one meetings,

to improve our products and processes to cater to the needs telephonic interviews and questionnaires. Customized

of our global customer base. questionnaires were prepared for various stakeholder

groups and feedback on the same was solicited through a

response via the representative stakeholders from each Empowering the Community– Our well defined CSR

group. execution process demonstrates our approach towards the

needs of communities. Our contributions to community



•Good brand•Employee friendly policies•Strong business vision and outlook•Open door policy•Good governance

•Extensive product range/ vertical operation

•Category expertise

•Focus on customer service

•Commitment to social development

•Compliance to standards

•Timely delivery

•Accessibility to senior management

•Reliable organization

•Dedicated a team to perform its CSR activities

•Responsive to queries

•Worked towardsemployability in addition to just providing employment

•Willingness to engage and collaborate

•Established a good working relationship with NGOs and Government institutions

•Rapport with local communities•Logistic support to the fellow agencies partnering with them

•Town halls (Annual)

•Skip level meetings (Monthly)

•Annual appraisal (Annual)

•Mid-year review (Half yearly)

•HR forum (Monthly)

•Focus group discussions (Monthly)

•Birthday celebrations (Monthly)

•Customer meets (As per requirement)•Surveys (Annual)•Feedback calls (As per delivery)

•Customer meets (As per requirement)•Surveys (Annual)•Feedback calls (As per delivery)

•One-to-one meetings (Need based)•Public hearing (Need based)

•One-to-one meetings (Need based)•Public hearing (Need based)

•Strengthen performance management system

•Increased focus on training needs

•Increase opportunities of dialogue with senior leadership

•Increase employee engagement activities

•Improve customer feedback mechanisms•Further focus on product pricing and innovation•Focus on environmental conservation initiatives like rain water harvesting

•Further focus on aspects of technology and product pricing

•Build capacity of local suppliers (women)

•Initiate further health and sanitation measures in the community

•Focus on women empowerment projects in other villages of the Kutch District

•Invest in environmental sustainability initiatives with help of technology

•Improve decision process •Enhance responsiveness to queries•Information disclosure required about precise action plans•Focus further on educational infrastructure

Employees

Customers (WIL)

Customers (WCL)

NGOs (Anjar)

NGOs (Vapi)

•Workforce Development (Pg 38)

•Economic Performance ( )•Water Management ( )•Innovation at Welspun g 34)

Pg 20

Pg 30

(P

•Economic Performance (Pg 20)•Innovation at Welspun (Pg 35)

•Community Development (Pg 50)


Stakeholder type Mode and (frequency) of engagement

Welspun’s strengths as stated by stakeholders

Opportunities for improvement for Welspun

/ needs of stakeholders

Report Reference

A snap shot of the interaction is presented below:


•Willing to listen to problems and act on it

•Conducts need assessments for the initiatives

•Timely payments•Generation of regular business•Reliable•Strong support of export market

•Meetings with local communities (Monthly, quarterly)•Public hearing (Need based)

•Meetings with local communities (Monthly, quarterly)•Public hearing (Need based)

•Investor meets (Annual)•Investor calls (Quarterly, need based)

•Supplier/vendor meets (Annual)•Joint programs (Quarterly, Need based)•Vendor monitoring (Need based)

•Supplier/vendor meets (Annual)•Joint programs (Quarterly, Need based)•Vendor monitoring (Need based)

•Initiate further health and sanitation measures in the community.

•Initiate further health and sanitation measures in the community•Increase awareness on sustainability initiatives taken up

–

•Increase awareness on sustainability initiatives taken up•Strengthen dispute handing mechanism•Increase manufacturing presence to pan India level

•Increase awareness on sustainability initiatives taken up•Facilitate financial aid and skill development of vendors

Community (Anjar)

Community (Vapi)

Investors

Vendors and Contractors (WCL)

Vendors and Contractors (WIL)



•Economic Performance (Pg 20)


Stakeholder type Mode and (frequency) of engagement

Welspun’s strengths as stated by stakeholders

Opportunities for improvement for Welspun

/ needs of stakeholders

Report Reference

–

•Well known and a strong global presence

•Professionally managed

•Reliable and transparent

•Generation of regular business

•Provide cost effective solutions

•Timely payment

•Periodically monitors compliance to laws

•Use of latest technology

•Commitment towards social development


Our commitment to sustainability demands that we run our organization with integrity

and in a transparent manner, being accountable to all our stakeholders. Our work ethics

and code of conduct is imbibed in the way we work and the way we interact with our

clients and business partners. Our vision, mission and values with respect to corporate

responsibility extends to the entire leadership and workforce chain within our

organization

Corporate Governance

Corporate Governance

e believe that the corporate governance is a in full compliance to the requirements of Clause 49 of the

voluntary code of self discipline and we have Listing Agreement and strive to implement initiatives Wendeavoured to design and implement a robust towards best practices in corporate governance.

governance mechanism. Good governance is built on

integrity, accountability and transparency. It creates long- Through the governance mechanism, the Board of Directors

term value by helping us to respond to the needs of our along with committees undertake their fiduciary

stakeholders and by mitigating risks that could affect our responsibilities towards all the stakeholders. The Board is

reputation. Our governance practices and management assisted by expert committees in its supervision of the

systems define the roles and responsibilities of our Board of overall affairs of the company, to ensure transparent

Directors and management to all those who are affected by governance. The responsibility of making overall decisions to

our operations. Combined with our efforts to engage with ensure the Company’s strategic growth and continuous

stakeholders, these practices and systems are designed to success lies with the Board. The Board composition is listed

embed sustainability at all levels of our organization. We are below:

relevant

1. Mr. Balkrishna Goenka Chairman and Director

2. Mr. R R Mandawewala Managing Director

3. Mr. D B Engineer Director

4. Mr. A K Dasgupta Director

5. Mr. Arun Todarwal Director

6. Mr Ram Gopal Sharma Director

7. Mr. Ajay Sharma Nominee IDBI Bank

8. Ms Dipali Goenka Executive Director

Name Designation

WELSPUN INDIA LIMITED

Name Designation

WELSPUN CORP LIMITED

1. Mr. Balkrishna Goenka2. Mr. Braja Mishra3. Mr. Rajesh R Mandawewala4. Mr. Mukul Sarkar

5. Mr. Mintoo Bhandari

6. Mr. Raj Kumar Jain7. Mr. K H Vishwanathan8. Mr Ram Gopal Sharma9. Mr. Nirmal Gangwal

10. Mr. Utsav Baijal

Chairman, Non ExecutiveManaging DirectorDirectorNominee Director of Exim Bank LtdNominee Director of Insight Solutions LtdDirectorDirectorDirectorDirectorNominee Director of Insight Solutions Ltd.


WELSPUN

CORP

LIMITED

WELSPUN

INDIA

LIMITED

1

2

3

4

5

6

7

81

2

3

4

56

7

8

9

10

The Board has the standing committees as listed below. These committees of the Board help in carrying out the responsibilities

by focusing on specific aspects of risk that is relevant to each committee and the Board functions in conjunction with the

committees.

• Audit Committee standards and vigilance which is a critical element of our

operations.The Audit Committee comprises of Independent Directors.

The role of the Audit Committee includes review of

Company’s financial reporting process and its financial • Risk Management

statements, review of accounting and financial policies and At WCL, we have a risk policy that outlines the risk

practices, the internal control and internal audit systems, risk management framework specific to each product segment

management policies and practices and Internal Audit and the location of operations. The risks are categorised as

Reports. The role also includes recommending to the Board, high, medium and low based on the severity of risks. The

re-appointment of statutory auditors and fixation of audit framework addresses risks that have a potential impact on

fees. the areas such as Company’s growth, profitability, cash flow

and non financial risks viz. Company reputation, IPR, safety,

• Remuneration Committee environmental and compliance. The WCL Risk Management

Policy (WRMP) is approved by the Board and a committee is This committee is constituted of independent, non-

constituted with assigned roles and responsibilities. In executive Directors. It was constituted for recommendation

compliance to clause 49 of the Listing agreement, the Board of Managerial Personnel and consideration of the

of Directors evaluate the overall risk management processes remuneration payable to Management Personnel and

as well as measures taken on a half yearly basis. The review thereof from time to time.

responsibility of monitoring the compliance and reviewing

the risk management policy on a half yearly basis lies with the • Share Transfer and Investor Grievance CommitteeBoard. At WIL, we are in the process of developing a risk This committee oversees the performance of the share management framework. However we have a risk transfer work and recommends measures to improve the identification process carried out through which we have level of investor services. Besides, the committee also looks identified risks across aspects such as regulatory compliance, into Investor Grievances such as non receipt of dividend, global competition, foreign exchange, labour costs, natural Annual Reports and other complaints related to share disasters, price volatility, customer concentration and transfers.geographical based risk. We also have mitigation plans

devised specific to each aspect with a view to mitigate our • Code of Conductrisks and ensure efficiency in our business. The Welspun ‘Ethics and Code of conduct’ policy is applicable

to all employees and is a part of the HR manual covering the • Political Lobbying and Advocacyfollowing: Corporate responsibilities to employees and Being in a tightly regulated country, we track proposed associates; Basic ethics and code of conduct for employees legislation and engage with governments to advocate our and associates; Responsibilities and obligations to all position on policies that impact our operations. Lobbying stakeholders; Fair compensation; Fair transactions and; and advocacy activities are necessary to ensure the Responsibilities to society and country.company’s long-term success and protect shareholder value.

Our senior management employees are a part of bodies like • Corporate Values in PracticeBombay Chamber of Commerce and Industries, Indian In order to ensure that all non-compliances with respect to Merchant Chamber and The Associated Chambers of the Ethics and Code of conduct policy are reported and Commerce and Industry which engage in constructive corrected, we have a “Whistle Blower Policy” that ensures dialogue for the benefit of the stakeholders.that all such non-compliances are monitored. Additionally,

our corporate values guide us in maintaining high ethical


It’s imperative for our organization to continue growing in a sustained manner. A

positive economic performance will enable us to lead the way as innovative

thinkers and help us provide solutions for the present and future challenges while

creating shared value for our stakeholders

Economic Performance


Economic Performancet Welspun, we believe in excelling in what we do by as well as The National Stock Exchange of India Limited.

innovating, understanding our customer needs, Aproviding opportunities for the people around us Amidst the back drop of the macro economic challenges, we and creating value for our shareholders. Our constant demonstrated strong performance to meet global demands endeavour towards perfection reflects our accelerated owing to strategic decisions and efficient execution by our growth since inception. Both WIL and WCL are publicly held employees. Diversified expertise, global presence and companies, and are listed on the Bombay Stock Exchange Ltd diversified product range is our catalyst to success.

Pipes and Plates Business completed the capacity expansion of 50,000 MTPA in The rise in global energy demand has led Oil and Gas Mandya this year taking the total capacity of the plant to companies to expand and further invest in pipe 1,50,000 MTPA. These major additions have led to the infrastructure. The Oil and Gas industry has primarily been company’s total global pipe capacity of 2.425 million MTPA. one of the biggest demand drivers for pipes in addition to With a view to expand our footprint in new markets and water infrastructure and industrial applications. We have efficiently manage our existing customers, we have emerged as the one of largest Diameter Line Pipe marketing offices in Houston (USA) and Dubai (UAE) and manufacturing company in the world with a global presence manufacturing facilities in India, US and Saudi Arabia. in 50 countries across the world offering Longitudinal (LSAW), Spiral (HSAW) and ERW/HFI ranges of pipes. The Home Textiles BusinessCompany also offers coating, bending and double jointing The role of the Indian Textiles Industry in the economy is very facilities. We have been known for carrying out the most significant mainly due to the array of opportunities like challenging projects in the world like supplying pipes having contribution to the industrial output, employment the deepest pipe line, longest pipe line, heaviest pipe line generation and export earnings of the country. It contributes and highest pipe line. about 14 per cent to industrial production, 4 per cent to the

gross domestic product (GDP), and 17 per cent to the Our customer base includes the world’s leading oil and gas country's export earnings and further provides employment companies as well as engineering companies. The demand in to over 35 million people thereby making it the largest small diameter pipes rose mainly due to the boom in Shale provider of employment after agriculture.gas in the US. To address this demand in the HFIW line pipe segment in North America, we commissioned 175,000 MTPA The textile industry has been a key focus area for the HFIW mill and Coating Plant in Little Rock, US. The mill, which Government of India, which is reflected in the introduction of has already received the API certification, is likely to ramp up various policies catering to the development of the textile to optimal utilization by the end of FY14. With an objective to industry. Schemes such as Technology Upgradation Fund effectively meet the water pipeline demand in India, we Scheme, Scheme for Integrated Textile Parks, Integrated Skill

(Units: INR Million)

30921

24912

1818

1384

473.74

62.17

2272

119.11

21.71

1301

69325

62292

2197

2989

348.79

80.75

1418

93.94

33.92

2337

Parameter Welspun India LimitedFY 2012-13

Welspun Corp LimitedFY 2012-13

Economic Value Generated

a) Revenues Economic Value Distributed

b) Operating Costs

c) Employee Wages and Benefits

d) Payments to Providers of Capital (Finance Cost)

e) Payments To Government (Tax)

f) Community Investments

Economic Value Retained

Defined Contributions Plan

Defined Benefit Plan

Financial Assistance Received from the Government

Key economic parameters for FY 2012-13 are given below: INR million (Units)


Development Scheme, Technology Mission of Technical We ensure that our investors are kept well informed about Textiles and other state government schemes were the Company’s performance which would enable them to introduced to foster the growth in investments and exports. comprehend our business workings and further, make In addition to favourable Government policies, availability of informed decisions. For more information on the Company’s surplus cotton, cheap labour and demographics have financial performance, please refer to our annual reports: enabled us to gain a competitive edge. http://www.welspun.com/content.asp?Submenu=Y&Menu

ID=2All our textile brands were consolidated under ‘Welspun India Limited’ with an aim to create a unified stronger entity Focus on Customer Centricitywhich would help us and our stakeholders to have better We realize that aspects such as pricing of product and timely control on manufacturing as well as branding activities and delivery are of paramount importance for our customers and further increase our market share globally. We ventured into our focus lies in addressing these concerns. We have newer markets like Canada, South Africa, Kenya, Australia, consistently invested in technology to aid our processes to Japan, China and Russia with a view to expand our presence make our products more reliable and competitive. Customer and diversify geographical risks. feedback on these aspects also helps us consolidate our

position in the markets in which we operate. We consider Indirect Economic Impact customer complaint rederessal as an integral part of In addition to the direct distribution of the economic value customer care and our aim is to have zero product we create through salaries and wages, taxes, return from complaints and 100% satisfied customers. We invite investments, purchases of goods and services, we also create customers to our manufacturing plants to assess our an indirect economic value for the communities surrounding processes and give their valuable feedback. The current our operations. We ensure that employment opportunities modes of feedback from the customers include customer are created for the communities surrounding us that fosters meets, surveys and feedback calls. their economic growth.

Listening to our Business PartnersWe contribute to the economic development of local While we chart our growth plan to increase our footprint suppliers by ensuring local procurement whenever feasible. pan-India, we will not be able to achieve the goals without We do not have a specific policy on local procurement since the support of our business partners (Vendors, suppliers, most of the production is dependent on customer contractors). Over the years we have developed a strong specifications. relationship with our loyal vendors and have tried to

maintain a steady relationship by giving them business even during fluctuating economic cycles. We have started on our sustainability journey and our next logical step would be to

Further we have plans extend our sustainability agenda to our business associates. of developing Textile parks in the state of Gujarat that would We intend to set up formal grievance mechanisms for our vendors cater to the development of local suppliers. Our contribution and suppliers to hear their concerns and take their feedback on a to these parks would involve infrastructure support that periodic basis.would enable more industries to source materials locally thereby fostering local economy.

On account of this constraint we tend to import our raw material for both the businesses, thus a significant percentage of our procurement is non local. The percentage of local procurement was 93% and 38% for WIL and WCL respectively for FY 2012-13.

“In addition to market value, the worth of an organization is also determined by the value and impact it creates on its stakeholders. At Welspun, our economic dimension encompasses the role we play in adding value to all our stakeholders, year on year.”

3 The percentage of local procurement for WIL and WCL consists of the procurement of goods and supplies for operations as well for capex projects

– Mr. R. R. Mandawewala (Group Managing Director)

As an organization with an international footprint, we are well aware of our responsibility towards the environment. We make use of the clean and efficient technologies, implement waste recycling and management systems and take a conservative approach towards using natural resources. We want all our products to be environmentally friendly and responsibly manufactured

Environmental Management


Environmental Management

n line with the core theme of sustainability, we view transportation and have further laid down efforts towards

building a sustainable future as a corporate strategy mitigation of any negative impacts. Our actions are a Iwhich ensures the availability of resources not only in the reflection of our focus towards the betterment of the

short term but also in the longer run. We are aware of the environment around our operations. We focus on improving

dependence of our operations on non – renewable natural our environmental performance through energy efficiency,

resources and it is our constant endeavour to reduce our waste management, bio-diversity and water management

resource footprint. We have identified in a detailed way the initiatives. We believe in going beyond compliance and this

environmental as well as safety impacts of our operations, year, we have invested a total of INR 27.65 million and

based on specific processes such as raw material INR 114 million for WCL and WIL respectively.

consumption, manufacturing, packaging, waste disposal and

Materials Management our textile goods are imported, packaging materials depend

on the specifications by our customers. Yarn, fibre, dyes, Resource efficiency is a major focus area for us. We strive to

pigments and finishing materials constitute the major semi ensure that we minimize the impact on the environment

manufactured goods for WIL whereas oil and grease during production stage through optimizing our material

constitute the significant associated materials for WIL as well consumption. Our major raw material for our textile arm,

as WCL. There is negligible use of packaging material WIL is cotton; whereas for pipe production we do not

involved in pipe manufacturing; hence we have not consume raw materials directly as our production starts from

considered it significant enough for reporting.semi manufactured goods (processed steel). Since most of

Environmental Expenditure in INR Million

160.00

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00FY 2010-11 FY 2011-12 FY 2012-13

69.55

93.49

114.21

Welspun India Limited 160.00

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00FY 2010-11 FY 2011-12 FY 2012-13

Welspun Corp Limited

23.44 24.34 27.65

Materials Consumed

- WILUnits FY 2010-11 FY 2011-12 FY 2012-13

Raw Material MT 35437.00 36887.46 33486.17

Associated Materials MT 8632.04 12584.38 22741.79

Semi Manufactured Goods/Parts

MT 283965.7 374918.4 1225306

Packaging Materials MT 14550.11 14824.06 15151.37



Waste Management our operations as per the rules of the respective State

Pollution Control Boards (SPCB). All our hazardous waste is We understand the impact of waste generation on the

disposed by means of an SPCB approved agency. The total environment and ensure efficiency in our processes to

amount of hazardous waste disposed during the year has minimize waste generation. We try to ensure that the

been listed below. disposal of our hazardous waste is closely controlled and

carefully managed. We dispose the waste generated from

MT 98354.04 53062.54 48728.11

Materials Consumed

- WCLUnits FY 2010-11 FY 2011-12 FY 2012-13

MT 1760543 802968.2 1109555Semi Manufactured Goods/Parts

AssociatedMaterials


Waste Disposed

-WILType of Waste FY 2010-11Units FY 2011-12 FY 2012-13

Hazardous

Hazardous

Hazardous

Non-Hazardous

Non-Hazardous

Non-Hazardous

Non-Hazardous

Used Oil

Discarded Containers

Cotton Waste

Used Paper Waste

HDPE Bags, Empty Drums and Scrap

Scrap (Plastic, Metallic and Paper)

Used Oil

ETP Sludge Hazardous 183.07

19.9

0.15

111

1356

1270

39171

1242

255.68

18.4

0.71

138

927.97

1789

39271

1367

236.90

19.87

0.31

180

1144

1612

47408

1427

MT

MT

KL

MT

MT

MT

MT

Pcs

Waste Disposed

-WCLType of Waste FY 2010-11Units FY 2011-12 FY 2012-13

Hazardous

Hazardous

Hazardous

Hazardous

Hazardous

Empty Drums

Bags

Process Waste

PE Dust

Empty Drums

Used Oil Hazardous 8580

27.67

684

10.62

204.47

22.79

1040

48.89

1069

6.94

331.25

9.9

5020

-

7326

20.98

581.07

16.98

Ltr

MT

Nos

MT

MT

MT

WIL &

WCL

Biomedical Waste MT 0.511 0.462 0.451

Units 2010-11 2011-12 2012-13


Energy and Climate Change manufacturing. We have been incorporating a

comprehensive resource conservation plan since the past 2 Global energy demand has increased due to rapid economic years. Initiatives implemented towards energy conservation changes, which has also led to an increase in GHG emissions. have resulted in 15740 units of power being saved as well as Climate change has an impact on cotton farming which leads 11MT of coal per day.to price instability, affects the availability and further has an

effect on our textile manufacturing operations since cotton is

an imperative material for textile production. We are in the We continue to focus our efforts on shifting our energy use to process of developing initiatives that foster responsible more renewable forms of energy. With this focus in mind, we farming of cotton which ensures safeguarding of the have installed a centralized Nisargruna Biogas Plant at Anjar environment as well enables welfare of farmers. Through our in order to handle and process the biodegradable waste risk management framework, we have identified certain materials that are generated from the kitchen, canteen, risks related to raw material availability and identified garden and other biological sludge from Welspun City and alternative sources for raw material procurement. We also Gram, Anjar. Currently we have 2-2.5MT of biodegradable have in place a robust disaster management plan that waste that is fed into the plant which in turn generates 40KG ensures safety of our people as well as our operations in of LPG that is used for cooking in the plant canteen. At Vapi, times of natural disasters. The energy we consume from we have initiatives like steam generation from waste heat, fossil fuels accounts for most of our GHG emissions. Our energy saving through condensate water recovery and hot primary response to climate change therefore remains, using water recovery and modifications in the thermo pac heater energy more efficiently – principally implementing which resulted in reduction on fuel consumption. innovative technology solutions around the optimization of

processes and machinery. We are of the view that climate Apart from emissions resulting from direct and indirect change can be taken as an opportunity to bring about energy consumption, this year we have also started innovations in identifying energy efficiency measures that monitoring the emissions from our employee commute. The not only reduces our energy consumption but also saves GHG emissions (Scope III) resulting from employee travel for cost. the reporting period stood at 5427 tCO2e. The provision of

transport for employees at our plants is aimed to discourage WIL has been the recipient of the Corporate Stewardship them from using their own transport and thereby reducing Award for resource conservation leadership in the related GHG emissions from individual commute.

4 Indirect energy is zero for the year 2010-11 since there was no electricity purchased, due to the sufficiency in electricity production by our captive power plants at Anjar and Vapi

3000000

2500000

2000000

1500000

1000000

500000

0FY 2010-11 FY 2011-12 FY 2012-13

270030.8

Energy Consumption, GJ - WCL

146543

261125.8

212904

Direct Energy Consumption

Indirect Energy Consumption

273473.2

129474

3000000

2500000

2000000

1500000

1000000

500000

0FY 2010-11 FY 2011-12 FY 2012-13

2101490

Energy Consumption, GJ - WIL

0.0

2351154

5132.2

2042560

215835.0

Direct Energy Consumption

Indirect Energy Consumption


Direct Emissions, tCO - WIL & WCL2

Direct Emissions, tCO - WIL2

Direct Emissions, tCO - WCL2

FY 2010-11 FY 2011-12 FY 2012-13

138109.2

164000

156000

150000

144000

138000

132000

170000

16107.9

147028.1

16225.9

15291.7

141880.5

Indirect Emissions, tCO - WIL & WCL2

Indirect Emissions, tCO - WIL2

Indirect Emissions, tCO - WCL2

FY 2010-11 FY 2011-12 FY 2012-13

0.0

120000

100000

80000

60000

40000

20000

140000

114303

4003

166065168351

160000

180000

100989

Suspended Particulate Matter (SPM) MT/yr 397.47 31.67

Oxides of Nitrogen (NOx) MT/yr 557.72 2.18

Oxides of Sulphur (SOx) MT/yr 335.85 3.92

Air Emissions Units WIL WCL

5 Indirect emissions are zero for the year 2010-11 mainly since, no electricity was purchased due to sufficiency in electricity production by our captive power plants at Anjar and Vapi

Scope III Emissions (WIL and WCL) - Employee Travel

2010-11 2011-12 2012-13

5300.0

5250.0

5200.0

5350.0

5292.3

5427.0

5400.0

5450.0

5410.6

Scope III Emissions, tCO2


Energy Conservation operational efficiency thereby protecting the natural

resource. Additionally, we have also managed to harvest We recognize the importance of reducing our operational

approximately 2 billion litres of rain water through footprint through process innovation and resource

structured rain water harvesting techniques. We mainly use conservation and hence we are taking cues from the best

municipal supply of water as a fresh water source. practices in the industry. All our manufacturing locations

continuously undertake a host of initiatives to better their

performance year on year. During the year, we achieved Waste Water Recovery Plant

energy savings of 717,257 GJ across our plants in Anjar, Vapi A state of the art ‘Waste Water Recovery Plant’ has recently

and Dahej through the conservation initiatives across our been set up at Anjar. The plant with a capacity of 10MLD

operations. This translates to avoiding 155,406 tCO2e of (Million Litres Daily) is an example of our efforts to be a

GHG emissions on account of conservation activities. This greener and cleaner organization. This plant takes care of

has been possible due to increased awareness amongst effluents from both the textile and pipe & plate plants and is

employees and an increase of active participation from the one of the largest waste water recovery plants in the textile

workforce in conservation initiatives. industry at a single location, having multiple series of

treatment stages and ultimately leading to its designed

Some of the key initiatives taken up during the year include: capacity of 90% recovery. This plant helps us recycle our

effluent out of which we re-use 85% of the water during our • Operation of thermic fluid heaters with auto control on

processing thus conserving water in a resource scarce region temperature and installation of drives on induced draft

like Anjar.fans motor

• Installation of VFDs on humidification plant at TT weaving

and optimising fan and pump operations

• Compressed air audit and control for eliminating wastages

by providing high efficient nozzles for cleaning, elimination

leakages and wastages

• Provision of VFDs to control DO at oxidation tank at ETP

• Guidelines for operators to start Extruders Heater on

proper planned time and for electricians to switch 'OFF'

transformer during Long Breakdowns / shutdowns

• Timing interlock of Quenching Pumps with coating

conveyor to stop pumps during long breakdowns

In addition to the above, initiatives were also taken up by WIL

at Anjar and Vapi which resulted in saving of fuel gas.

(Reduction of specific steam consumption; and replacement

of old insulation by efficient fibre insulation to reduce the

radiation losses).

Water Management

Water is emerging as a major issue, and the competition for

this scarce resource increases the onus on all of us in our

industry to proactively look at solutions that enhance

production with minimal water usage. This involves

understanding supply and demand trends at the local level,

assessing potential effects on quality and quantity, and

implementing steps to appropriately address challenges. We

use fresh water in our manufacturing processes and ensure

water use is minimized. Our plants at Anjar and Dahej are

zero discharge plants, thus recycling all the waste water

which in turn minimizes the use of fresh water. Our objective

of minimizing the use of water is linked to increasing our

Water Consumption (KL) - WCL200000

160000

120000

80000

40000

0FY 2010-11 FY 2011-12 FY 2012-13

137671

187071

152499

Water Consumption (KL) - WIL

2500000

2000000

1500000

1000000

500000

0

3000000

FY 2010-11 FY 2011-12 FY 2012-13

2406081

18813891995123


Biodiversity multiple steps to convert the water scarce region into a bio

diversity hotspot. We have developed a vast expanse of We have established dedicated teams at each of our

green cover around our plant which also adds aesthetic value manufacturing locations, which ensure that the biodiversity

to the region. All our units have facilitated plantation of value of the areas in which we operate is maintained and

species of trees over and a snapshot of the same is shown enhanced by our presence. Our plants at Anjar, Vapi and

below. We ensure that the growth of the saplings planted are Dahej are located in industrial areas as designated by the

carefully monitored which in turn has resulted in a 95% respective State authorities, and hence by design, have

survival rate on an average.minimal impact on biodiversity. At Anjar we have initiated

Water Recycled (KL) - WIL

2500000

2000000

1500000

1000000

500000

0

3000000

FY 2010-11 FY 2011-12 FY 2012-13

2054450

15040741650821

Waste Water Generated, ‘000 KL

1000.00

800.00

600.00

400.00

200.00

0.00FY 2010-11 FY 2011-12 FY 2012-13

1080

385 389

1200.00

Waste Water Generated (WIL, Vapi)

No. of Saplings Planted50,000

40,000

30,000

20,000

10,000

FY 2010-11 FY 2011-12 FY 2012-13

24,340

47,745

20,390

No. of Saplings Planted

Thinking innovatively and taking ‘out of the box’ approaches is an important key

towards making our world a more sustainable place to live in. However, if one

were to look at it the other way, implementing sustainability within one’s

organization can be seen as a new driver of innovation. By embedding

sustainability here at Welspun, we intend to stay ahead in the competitive space,

changing the way we think about our products, technologies, processes and

business models

Innovation at Welspun

05 Sustainability Report 2012-1334 | Sustainability Report 2012-13

Innovation at Welspun

e manifest our products with innovative the entire value chain from fibres to finished product.

capability, focused research and ecological Currently, nearly 30% of our revenues have been contributed Wsustenance. The focus of our innovation covers by innovative products in Bath, Bed and Rugs.

Manufacturing sustainable products The Conventional Rug making process consists of the

following stepsWe have made a conscious decision to include eco friendly

products in our portfolio having a lesser foot print during the • Raw cotton Spinning (Yarn making)

‘production’ process as compared to conventional products. • Tufting

They are also eco friendly during the ‘use phase’. Some • Piece Dyeing

examples of our green products are given below: • Drying

• Finishing

Bath Rugs

Welspun rugs are Eco- smart. They are made of Naturally Soft Whereas the Eco Smart rug making process involves fewer

Drylon microfiber which feels like cotton but with easy care steps thereby making it much more eco friendly

performance. Not a single drop of water, dyes or chemicals is • Extrusion of yarn- Colour is added while making the yarn used in the making of these rugs. Even the colours used are (No water used here) bleach friendly. They generate zero effluents during their • Tufting production process and are quicker drying rugs thereby • Dryingsaving a lot more energy every time they are washed. • Finishing

The table below aims to highlight the resource efficiency of the Eco-Smart bath rug as compared to two categories of the

conventional rug of the same weight and colour

Sr. ListConventional

Cotton Bath Rug

Nylon with Latex

Back Bath Rug

Eco-smart

Bath Rug

Dyes & chemical used / pc

Water consumed while Rug dyeing /pcSteam consumed during dyeing/ pc

Steam Consumed during Drying/pc

1

2

3

4

1574

14.45

8383

1450

54.76

44.57

1738

997.50

0.00

0.00

0.00

332

Bedding products absorption, thermal resistance, and increased softness which in conventional process are Innovations in Welspun's bedding products:imparted with the usage of chemicals and 1. True Natural Products - while normal fabric ultimately fade away with the number of washes. processing takes 9 process steps, Welspun's natural However the hygro products remain comparatively bedding takes only 5, thereby resulting in lesser more durable and contain the required properties chemical usage and also higher resource efficiency.without the usage of chemicals and are further bio 2. Compressed Packing – which is different from degradable since they are made up of 100% cotton normal vacuum packing helps ship 33% more

4. Recycled Polyester Products – instead of using 2 comforters in a container thereby saving 33% on MT of 100% polyester fibres we use 50% of recycled freight cost, fuel, shelf and warehouse space each.polyester to fill the comforters thereby improving 3. Hygro Products - Hygro sheets, comforters, and the sustainability of the product.mattress pads are made using the patented yarn

5. ZZZ Mattress Pads - Welspun mattress pads are technology. The hollow core yarn helps in imparting made waterproof without using the lamination-the properties to the product such as moisture

Units

Grams

Liters

Grams

Grams


technique which makes the non-woven fabric non

biodegradable. The product patent for this 2. Rugs

innovation in India has been filed in July 2013. - Micro fibre chenille changes for backing fabric 6. Eco Smooth – A “Natural wrinkle free” finish is construction and yarn construction

achieved using the chemical extracted from plants - Average TPM reduce in cabling machinewhich are free from formaldehyde thereby making - Automatic piece loading in paddle dyeing machine the product very safe for usage and sustainable for

or dryerthe environment unlike the Conventional method which not only uses resins rich in formaldehyde

3. Technologycontent but is also carcinogenic.- Adopting 'Cotton Lycra Core Spun Technology' in

spinning with 2208 spindles. This technology will

Efforts made towards technology absorption, adaptation be used as the patented 'Flexi-fit' technology.

and innovation during FY 2012-13: - The new product lifecycle management system

1. Towels will be introduced to accomplish fast material

- Added micro slub machines as a backward tracking, data management and provide access to

integration for in-house yarn production for newly useful information anywhere in the world for

developed slub yarns customer enquiries and tracking.

- Added 2 machines of ROCOS (2272 spindles) in the - New processes designed to manufacture products

spinning to improve the quality of the yarn for from special fibres as well as spinning, weaving,

some new developed products processing and packing.

- Added jumbo TFO for cabling and doubling of - Designed Cut and Sew processes for Marrowing

towels and rugs and Fagotting without the help of any stitch guide.

“Our impetus towards capitalizing on innovative capabilities determines our growth story. Customer delight is our incentive that drives us to think innovatively and design products that keep us upbeat in competitive markets across geographies.”

– Ms. Dipali Goenka (Executive Director, Welspun India Limited)

Innovation on the Shop Floor • Waste disposal through colour coding (for segregation)

At the WCL plant in Anjar we have implemented a host of • Sound proof arrangement at Normalizer

initiatives by taking inputs from our employees on the shop • Development of safety corner to impart awareness on

floor to imbibe innovation to solve operational issues and unsafe acts and conditions to the workers

improve overall efficiency and safety. A snapshot of the • Implementation of near miss reporting. Campaign on

initiatives taken up in 2012-13 is listed below: awareness of use of PPEs

• Construction of cross over and safe access pathways at • HSE instructions in local language for the benefit of the

various points within the plant personnel on the shop floor.

• Provision of barricades, railing and guard frames • Initiation of contractor safety meeting to brief them on

• Covering of tooling arrangements to prevent corrosion common errors and pitfalls and ways to arrest the same.

Employees play a crucial role in transforming an organization’s sustainable strategy into

reality which is why our employees are at the forefront of our business. We strive

towards motivating and inspiring them, encouraging them to contribute ideas for our

growth and strive to incorporate sustainability into their everyday work culture

Workforce Development


Workforce Development

ur success is built on technical expertise, business We are an equal opportunity employer and place emphasis

acumen, strong partnerships and proven ability to solely on the merit of an individual and not on gender, Odeliver results. The primary factor in this success is marital status, religious or political beliefs. We have a diverse

our experienced workforce. As a respected provider of group of workforce across the country who work together to

career opportunity and growth, Welspun attracts people of help Welspun achieve its vision. Our diversity also reflects in

exceptional talent. Recruiting, developing and retaining the rise in the number of women hired at WIL. In addition to

these talented individuals is key to expanding our business. our permanent employees, a significant portion of our

As the economy grows at a rapid pace, opportunities for workforce is contractor-based and we work closely with

skilled and experienced resources are bound to increase and them to ensure that the workers entering our premises are

we need to be geared up for these challenges. well equipped and are trained to carry out our operations in a

safe and efficient manner. During 2012-13 we had a total of

1964 contract workers at WIL and 1104 contract workers at Effective employee management allows us to accomplish our

WCL.goals and our employee management systems and initiatives

help us to capitalize on the strengths of our employees as

well as the organization. To bring about uniformity in our Our highly competent and motivated workforce is the

processes, we have introduced a ‘Group Human Resources underlying reason of our growth story towards achieving

Manual’ comprising of standardized group level policies and customer satisfaction. Our mission is to attract and retain the

procedures along with location level policies. A Group best possible talent from across the globe. Our recruitment

induction manual and an employee handbook was also policies and practices are designed to best suit our

designed to facilitate and increase employee awareness on organization and focus on the “right person for the right job”

the policies and procedures governing them. This has helped philosophy. This year we managed to acquire a multitude of

us communicate our processes to the workforce in an excellent talent from outside the organization.

efficient manner.

6 Does not include WIL Anjar

Workforce Numbers - WIL

5000

4000

3000

2000

1000

0

6000

As on31.03.2011

5276

509

Male FemaleAs on

31.03.2012

5377

628

Male FemaleAs on

31.03.2013

725

5496

Male Female

2500

2000

1500

1000

500

0

3500

As on31.03.2011

3267

41

Male FemaleAs on

31.03.2012

2996

46

Male FemaleAs on

31.03.2013

51

3031

Male Female

Workforce Numbers - WCL

3000


Employee Age Wise Distribution - WIL

< 30 years - 3411

30 - 50 years - 2687

> 50 years - 98

Employee Age Wise Distribution - WCL

30 - 50 years - 1953

< 30 years - 971

> 50 years - 158

Talent Management high potential employees. It has defined a performance –

potential evaluation framework supported through We lay equal emphasis on Talent Management and Talent

recommendations taken from functional managers, previous Acquisition. We believe that helping our existing workforce

performance records as well as a third party view obtained achieve its full potential is a crucial element of our workforce

through psychometric testing. Those who clear all these development strategy. The quality of our people is what

filters are then mapped individually for specific development provides the real competitive advantage that can propel our

plans, to build competence and strengths in the areas of group to fulfil the vision that we have envisioned. Our overall

leadership skills, technical competence, general and people aim for managing talent is to bring objectivity into the

management. This ‘Individual Development Plan’ in process of identification of HiPo (High Potential) employees

combination with a comprehensive successions planning across the Group.

and talent review mechanism aims at defining a ‘Talent

Strategy’ for the Group - towards building a leadership Our Performance Management System (PMS) comprises of

pipeline that will create quality leaders to manage growth goal setting wherein all employees set their KRA’s (Key

and diversification plans of the Group’s businesses.Responsibility Areas) as per their job roles and

responsibilities. The PMS comprises of goal setting exercises

Building on the organization’s existing talent also helps which were conducted during the Group and Mid Term

support the organization’s efforts to plan and address critical review for the DGM and above level. It also comprises of

skill requirements. Furthermore, investing in the providing regular feedback to employees on the job, as well

organization’s current talent pool benefits the employee as formal process where performance ratings are

which further increases the likelihood of retention and communicated on an annual basis for all employees. We

enhancement of individual and organizational performance.conduct training sessions on the PMS process for employees

to enable them to get a better understanding of the system An Internal Job Portal was also launched so as to provide the

as well as help them align individual goals with business employees with a platform to internally channelize their

objectives. career aspirations and facilitate in hiring activities. Other

sources like head hunting and employee referrals were

mostly used which resulted in bringing down recruitment In order to ensure optimum growth and overall development

cost significantly.of the talent pool, we have designed a simple, yet

comprehensive process for identifying and developing our

We invest a great deal in our workforce to make Welspunites be successful. This year there was a reduction of 6.3 % and

technically competent and holistically sound. Hence having a 11% in employee turnover at WIL & WCL respectively as

low attrition rate is critical for the functioning of our compared to last year viz a viz the 6.5% and 29.7% increase in

business. In order to ensure this, we engage in various career FY 2011-12 as compared to FY 2010-11. In spite of our efforts,

development, employee engagement and communication attrition remains a major challenge especially in our textiles

initiatives. Though our various efforts helped us reap business owing to the highly competitive nature of the

benefits by considerably lowering our attrition and turnover, business and the basic skill sets required for performing the

our overall focus continues to stay strong on these issues. job. We will continue to implement initiatives to address this

Our initiatives to improve our turnover rate have proven to challenge.


Employee Attrition, Age Wise - WIL

< 30 years - 69%

30 - 50 years - 31%

> 50 years - 0.2%

Employee Attrition, Age Wise - WIL

< 30 years - 47%

30 - 50 years - 45%

> 50 years - 8%


Employee Attrition, Gender Wise - WIL

Male - 83%

Female - 17%

Employee Attrition, Gender Wise - WCL

Male - 95%

Female - 5%

Welspun India Limited -

6885

Welspun Corp Limited -

234

New Joiners during 2012 - 13 New Joiners who left during 2012-13

Welspun India Limited -

6424

Welspun Corp Limited -

133

Learning and Development built around a common training curriculum which has been

designed under the Welspun Corporate University (WCU) We focus heavily on the continuous development of our

framework. Around 30 different titles/ programs have been employees and their growth. At Welspun our primary goal

designed for the Indian employees under the WCU remains to identify key talent pools present within the

framework; these are executed across 5 different locations organization and enhance their abilities through various

through class room training. For our international locations, training and development programs. The thrust of our

the same training curriculum is delivered via e-learning.learning and development (L&D) efforts have been on skill

enhancement and capacity building. We align our L&D

activities with the 70:10:20 concept. According to this At the business/location level, the emphasis lays more on

concept, a person learns 70 percent from challenging work technical and functional trainings, which is built around

assignments; 10 percent from the formal inputs through ‘Location’ specific training needs- identified and delivered

training and development programs and 20 percent by through class-room and practical exposure. Welspun has

interacting with right people. also partnered with NTTF (a renowned technical institute)

for workmen development. Their satellite centre has been

operational at Anjar from year 2011-12. To equip employees Across the Welspun Group, L&D is managed at different

on the technical aspects, a technical training certification for levels – certain group level initiatives get centrally driven,

workmen and supervisory staff has been initiated. The while other location/business/unit level requirements are

certification model ensures continuous evaluation and addressed locally at the Units. Our central L&D process is


improvement of workmen at all levels and facilitates them to Some of the key trainings conducted this year at WIL include:

set and achieve measurable learning goals. The training 1 Effective Decision Making

intervention has been conceptualized as a project which 2 Induction Plan

intends knowledge transfer, effectiveness of learning and 3 MDP on Effective Delivery Enhancement

honing the skills acquired. 4 Program on Organizational Culture Enhancement

5 Welspun Manager 1

6 Personal Excellence

7 Teamship

8 Analytical Skills

9 Leading to Succeed

10 Executive PresentationSkills

11 World Class Maintenance Management

Employee Communication and Engagement

We understand that the most essential factor determining

our success is motivated employees and communication

plays an important role in understanding needs of

employees. Hence we undertake through employee

engagements which help us balance employee needs and

business requirements.

The various communication initiatives undertaken during

the course of the year were:

• Individual and Group Communication Forums

At the individual level, interviews were conducted to check

the ‘health’ of the organization. At the Group level,

communication forums like Monthly Departmental

Meetings (MDM) and Town Halls are held so as to address

any issues that employee’s might have at the unit and

business level.

• E- Blog

An internal blogging site wherein employees can have a

social network with their colleagues

• Newsletters

The eSanchar newsletters are released at Welspun on a

monthly basis. They aim at giving employees a more holistic

view into the latest happenings of the organization. The

newsletters comprise of not only technical activities but

include a full range of employee engagement initiatives,

rewards and recognition drives. They are published so as to

keep all employees well informed of the activities that

Welspun undertakes for their wellbeing and all round

benefit. It aims at brining the Welspun family closer together 1 Fitter Moduleand inspiring and recognizing the efforts of Welspunities.2 Welder Module

3 Electrical maintenance A round up of a few employee engagement initiatives are as 4 Quality (NDT, Visual, laboratory)under: 5 Mechanical maintenance• Launch of ‘TABLET’ at HO 6 Communication & Interpersonal skillsA few subcommittees were formed under ‘TABLET’ like Fun 7 MS Excel & PowerPointTab, Whiztab, Sport Tab and E – Tab. Monthly fun events, 8 Business Etiquettes

The story of an Organization’s success is actually a journey

from ‘Organizational Learning’ to a ‘Learning Organization’ –

and that is the belief on which the Learning and

Development framework has been designed and is now

being implemented. Some of the key trainings conducted

this year at WCL include:

Workforce Training - WIL

400000

300000

200000

100000

0

500000

FY 2010-11 FY 2011-12 FY 2012-13

193255177802

Workforce Training - WCL

60000

40000

20000

10000

0FY 2010-11 FY 2011-12 FY 2012-13

57917

38521

4606350000

30000

492102Training Manhours

Training Manhours


practice session for sports tournaments, nomination in • Family Corner @ Welhome

Mumbai marathon and monthly newsletter were the key The family corner lays foundation to developing a sense of

activities of Tablet. oneness at Welspun. One Welspunite family is selected and

• Shining Star Initiative their photos, achievements, views, aspirations are published

on a monthly basis.The Shining Star Initiative is an instant recognition program

launched at Welspun. It gives employees a chance to hand • Other Celebrations

out cards to their colleagues in recognition of commendable Celebrations give people a reason to interact on a more

values demonstrated. The high point of the initiative is the personal level leaving the hostilities and formalities behind.

list comprising of the gold star winners. The names of these Regular celebrations and tournaments are conducted such

winners are published in the newsletters for showing as international cricket tournament, Holi Dahan, Family Day,

admirable and stellar values. Art exhibition etc.

• Employee IDEA Contribution Initiative

We at Welspun are continually searching for new ways to Employee Benefits at Welspun

make our organization better. The IDEA contribution Our employees are our driving force and hence we promote

initiative helps encourage employees to voice their ideas and employee well being during their tenure as well as after their

opinions. These ideas are filtered and the most effective ones retirement. We believe in providing as many benefits as

are implemented on a regular basis. The latest Idea possible to keep our employees satisfied, happy and healthy.

Contribution drive resulted in 10 brilliant ideas. Some of the our employee benefits include:

• New Employee Column Share 1) Subsidized one time lunch facility.

Employees at Welspun are all rounder’s and it is important to 2) Economical bachelor and family accommodations

showcase their talents with pride. The Employee Column 3) Free canteen facility for one month to new Joinees

Share page in eSanchar comprises of creative and out of the 4) Payment as per Statutory norms (Bonus, PF, Gratuity, Etc.)box poems, articles and employee views. This has resulted in 5) Production and incentive schemesa much more creative and open workspace. Other employee benefits are listed in the annual reports of WIL and WCL which can be

accessed at http://www.welspun.com/content.asp?Submenu=Y&MenuID=2.

Male - 6 6424

Number of employees who availed parental leave Number of employees who availed parental leave and who completed twelve months post their return

Welspun India Limited

Female - 57 Male - 6 Female - 11

Male - 44 Female - 1 Male - 41 Female - 1

Welspun Corp Limited

We also provide maternity and paternity benefits for our employees

A safe workforce is a happy workforce. We at Welspun are dedicated towards

developing an active health and safety culture across the full range of our activities. Our

aim is to ensure that no one within our workforce or people we associate with due to our

business operations, be injured by the way we carry out our work

Employee Health & Safety


Employee Health & Safety

he nature of our activities makes operational and achieve quantum milestones. Some of the measures taken

transportation safety and employee’s health up are:Tsignificant components for long-term sustainability of 1. Personnel company security and contractual security

our business and we stand committed to these. We have 2. CCTV system, CCTV’s in various locations with a central

developed preventive measures for occupational diseases monitoring system supported by radio set

like noise induced hearing, respiratory tract diseases that are communication

associated with our operations and conduct regular health 3. Access control, electronic physical walls/barricades,

check-ups for our employees to ensure their wellbeing is restricted entry, identity cards etc

always given utmost importance. We promote the use of 4. Observations and physical dominance watch towers (in advanced technology in order to achieve excellence in the pipe line) and patrolling within and outside the occupational health and safety. Company premises

5. Role enhancers, internal police, quick reaction teams,

All our plants have an authorized and well established safety dog squad and gunmen

committee. The safety committees established in our plants 6. Electronic monitoring by the IT and isolation machine ensure there is equal participation from non management as computers from the internetwell management staff. . Apart from supervising and 7. Disaster management teamupdating safety measures they have been established to

raise interest and create awareness amongst the employees The presence of a safety committee and our investment in regarding the various safety precautions and procedures multiple safety measures has proven to be a successful available for their benefit. They are also responsible in project and has given us the outcomes that we were hoping training the workforce to be well equipped in case of an for. The reduced number of injuries, fatalities shows that our emergency. They assist us in making health and safety an workforce is a well protected unit. We are saddened by the integral part of our culture. fact that we have had fatalities each year since the past 3

years. We are currently enhancing our safety and Security measures keep changing with technology with precautionary measures to improve our safety performance. which an organization must keep abreast. At Welspun these During the year there were no fatalities among the contract threats are catered to in various ways using a number of employees at our sites (where they employ contract different types of resources which are analyzed dynamically workforce), while there was one reportable accident case at so as to come out with the best possible outcome. Welspun WIL Anjar which resulted in 25 lost days. A Snapshot of the security has aimed to provide a safe environment for all to safety performance at our sites is presented below.excel in. Towards its ultimate goals, it has been able to

Near Misses

Reportable Injuries

7Lost Days

Fatalities

Manhours Worked

Nos

Nos

Nos

Nos

Manhours

7

1

119

2

13493679

0

0

0

0

711421

0

1

102

1

12490722

0

0

0

0

659582

1

0

0

0

13320888

1

0

0

0

1160164

Category Unit

Safety Performance – WIL Employees

FY 2010-11 FY 2011-12 FY 2012-13

Male Female Male Female Male Female

7 The lost days do not include the statutory 6000 man-days lost for each fatality in order to maintain consistency in reporting


Near Misses

Reportable Injuries

8Lost Days

Fatalities

Manhours Worked

Nos

Nos

Nos

Nos

Manhours

0

0

1

1

5746664

0

0

0

0

961720

1

0

0

0

4676496

0

0

0

0

547048

0

1

25

0

4368328

0

0

0

0

675152

Category Unit

Safety Performance – WIL Contractual workforce

FY 2010-11 FY 2011-12 FY 2012-13



Near Misses

Reportable Injuries

10Lost Days

Fatalities

Manhours Worked

Nos

Nos

Nos

Nos

Manhours

26

24

848

1

14397600

0

0

0

0

8760

29

6

370

1

11967200

0

0

0

0

5840

152

15

519

1

11962887

0

0

0

0

5840

Category Unit

9Safety Performance- WCL

FY 2010-11 FY 2011-12 FY 2012-13


9 Gender wise split for safety data is currently not available for WCL Anjar. All the incidents as well as manhours worked have been classified under the ‘Male’ category. In addition the safety performance is not separately available for WCL Anjar, hence the numbers reported are inclusive of the contractual labour safety performance. We are putting in systems in place and will report on gender wise information from next year.


Health Related Training 13 AIDS Awareness

Workforce health is an area in which the Company has made 14 Vaccination of Children

a conscious effort to cater to the needs of its people. We aim 15 Care of pregnant women

to educate our employees in a holistic manner and hence 16 Tuberculosis Control

apart from the technical trainings, we hold a number of 17 Positive Health Option

counselling sessions, health related trainings and seminars 18 Anti Tobacco Programso as to keep our employees professionally satisfied and

personally healthy. We do not limit these programs to Respecting Human Rights employees since we believe that we are a part of a bigger We have zero tolerance towards child labour and forced Welspun family. These programs are conducted for all labour and therefore ensure that all the laws of the land Welspunites and their family members. applicable to our operations are strictly adhered to. We Trainings at WCL promote work force diversity and provide equal 1 Stress Management opportunities to all our employees irrespective of their 2 First Aid Training religion, caste, gender, age or disability. We believe that

3 Counselling of Cardiac Diseases employees have the right to voice out their opinions and

4 Diet Counselling, hence allow all our non management employees to exercise

5 Prevention of Infectious Diseases their right to collective bargaining. Our operations at Anjar

6 Diabetes Awareness are SA 8000 certified to ensure a fair and humane

environment. We carry out regular internal checks in order to 7 First Aid Training

check compliance and ensure continual improvements in 8 Control of Diseases

practices related to social accountability. We are also subject 9 Prevention of Occupational Disorder

to regular checks from our customers on practices related to 10 Prevention from Injuries respecting human rights and have ensured that we meet 11 Health Education Program of Infectious Diseasestheir criteria through proactive adoption of measures.12 Mother And Child Care

and Vapi

Our group’s social vision of Education, Empowerment, Environment and Health is

demonstrated by the responsibility we have undertaken towards making a positive

impact on our entire value chain and communities living around our operational plants.

This is done through developing activities focused on empowering people with skill sets

that can help improve their overall livelihoods. We’ve gone one step further and have

even encouraged all our suppliers to be socially and environmentally aware, taking

green measures wherever possible

Community Development


Community Development ocially responsible and ethical business practices are present with those of the future.

the defining tenets of Welspun’s corporate Sphilosophy. In everything we do there is a strong The Group’s social vision has been enshrined in the three E’s

commitment towards a wider, all-rounded social progress, as which have become the Guiding Principles of our CSR

well sustainable development that balances the needs of the initiatives –

A number of projects have been taken up under the banner - Health care and Sanitation

of the Welspun Foundation for Health and Knowledge - Clean water and nutrition

(WFHK). WFHK is an essential part of the Group’s set up, - Education

and is active wherever we have a business presence. Through - Women empowerment/income generation

it, we engage with local stakeholders, and in a process that is - Disaster responseboth consultative and collaborative, we have taken up a

range of innovative programs in the spheres of Education, Core areas are focused on through our programs that are Empowerment, Environment & health. executed through, tie-ups with NGOs, developmental

agencies/other institutions and implement other In the past 26 years, we have established ourselves as one of governmental agencies. We take utmost care to integrate the fastest growing Indian conglomerates with its presence community investment considerations into decision-making across 5 business verticals. Whilst starting new operating and business practices and assist in local capacity building to facilities at various locations, our commitment to reach out develop mutually beneficial relationships with communities. to make a sustainable difference in the lives of nearby communities remains steadfast. We dream of a world where Our Community development programs are wide ranging the people are empowered to change their lives, as well as and aim at improving the various facets of society. The the lives of millions of others. Our passion for what we do is community initiatives carried out by us are aligned to the embodied in our organization motto “Dare to Commit.” needs identified through the findings from the need

assessments carried out. We have a dedicated CSR team that We also believe that the empowerment of people and engages with the communities around our operations to societal development begins with the economic ensure our initiatives are designed to specifically serve their development of the communities. Working on certain key needs. Our community investments during the reporting focus areas, could lead to a holistic approach towards period was INR 87.035 million.community development. These focus areas include:

EDUCATION“Your Door to the Future”

1 EMPOWERMENT“Enabling Wings to Fly”

2 ENVIRONMENT & HEALTH“For a Better Tomorrow”

3


2. Children and adult literacy programs of our plant.

We also started children and adult literacy programs for

which the objectives include: WCL was responsible for providing adult education to 10

- All 5-8 years pre-school have access to basic education women in Anjar in 2012. Overall, 75 women have been

impacted since 2007.- All interested women too can avail of basic education

3. Welspun Vidya MandirWelspun is actively running 3 Balwadi’s in the workers

colonies at Anjar and Vapi in Gujarat. These Balwadi’s have We have started two CBSE Schools up to Standard XII at

helped impart basic education to a total of 158 children. We Anjar, Gujarat and Salav, Maharashtra with an aim to

plan to start a new balwadi in Palghar, Maharashtra that will enhance all round development of children. These schools

reach out to children belonging to the neighbouring villages provide quality education to over 2060 students. To generate

Sr. No. Project Deliverables for 2012-13 Target Achievements in FY 2012-13

Training and Development of Teachers:

Teacher Attendance

Number of teachers going prepared to class

- New techniques introduced in class

- Identification of problem cases

Student Attendance in 3 schools:

- Student Attendance

- No of irregular children identified

Student Abilities (Monitoring through grades achieved)

A Grade

B Grade

C Grade

D Grade

Extra Curricular Activities

Parent Participation

1

2

3

4

5

85% (no change)

20% (9 out of 28)

20 (presentations, projects, story telling, group work, 6 lang games, 7 math tech, case work, rules chart, student part in assembly)

12

90%

58

45%

41%

10%

4%

31.20%

3 (experimental learning series, Bal mela, home and community visits)

85%

5%

5

30

75%

126

40%

43.50%

13%

3.50%

0

1%

2011-12

90%

25%

30

At least 15 to be resolved

80%

21 out of 70 to be regular

At least 4 to be introduced

15%

2.5% to 5% increase in the grades

to improve the transformation rate of students from upper

primary to secondary level by 2.5%; simultaneously enhance We are dedicated to improving and enhancing the quality of

teacher’s capacity to ensure increase in quality education by education thus equipping the children of today to become

25-30%; improve student attendance by 30% and augment the leaders of tomorrow. We work closely with the

parent participation by 15%. government and non-profit organizations to provide quality

education to 3000 tribal, rural and urban children. Some of

our key initiatives are: Training for teachers included topics on child psychology, a

1. Quality education program with Government schools in joyful teaching experience, communication skills, time

Kutch management and parent participation. Awareness and

motivation for education was encouraged through meetings At Anjar, we initiated a Quality Education Project with the

with education leaders. Personality development camps and Government of Gujarat in association with Light of Life Trust

one on one student counselling was also provided to the (NGO) in July 2012. The Gujarat Quality Education project

schools mentioned.aims to reach out to all the 123 government schools in Kutch

in the next 5 years. In 2012-13, this project reached out to

three government schools viz, Varsamedi, New Dudhai and For the 2013-14 we plan to extend our reach to 15

Bhadreshwar with 28 teachers and 584 students from Std V – government schools from 18 villages in Anjar with 5720

VIII. The objective for the year 2012-13 of this initiative were: students and 157 teachers from std 1 to std 8.

EDUCATION


the awareness on a community welfare the school organises underprivileged children suffering from Cancer and their

regular community service clubs wherein children visit to old parents subjects like spoken English, Computer Literacy,

age homes and orphanages. Funds for community welfare Dance, Art and Craft.

are raised by sale of art products made by the children.

4. Career Counselling

The right Guidance and Counselling are crucial elements in a 1. Women and youth empowerment initiative (Varsamedi,

childs life and hence this initiative has been launched at Anjar)

Welspun. Children of Welspunites at the Head office As we secure our future generation in terms of education, we

(Mumbai) and students of Std X to XII at Welspun Vidya also see the need to empower families so that they can

Mandir (CBSE Board School) at Anjar and Salay are covered sustain themselves in the near future and move towards

under this initiative wherein Psychometric tests are growth and prosperity. With aim of women empowerment, 3

administered and one on one counselling is conducted based vocational training centers have been started in villages at

on the test results. Anjar in partnership with the Gujarat Government and two in

our workers colony at Anjar colony and one centre in our Vapi

5. Employee Volunteering and Education colony. These centres aim to foster their development and

enable them to contribute to the increased family income. 17 Welspunites spend quality time on working Saturdays at

St. Judes Childcare Center wherein the group teaches 38

Some activities to promote women empowerment include: will help them to earn to a livelihood. The focus is on helping

the youth from neighbouring communities get trained for - Nav Kiran Tailoring and stitching Centre in Katni and Anuppur

better livelihood options that will accelerate economic and - Various competitions organized on regular basis to instill

social development.creativity

- Livelihood programs rolled out to provide the women with

1. Jeevan Asha Computer Training Programan opportunity to earn an income

We have recently launched a computer training centre in - Trips and outdoor activities held to provide the women a

Alibaug as a part of its livelihood generation program, the break from their routine tasks.

centre runs in collaboration with the Light Of Life Trust. In the

current academic year, approximately 200 students from 2. Mission Mangalam Scheme

rural/tribal under-privileged families were being trained for We have pioneered the ‘Mission Mangalam Scheme’ with basic computer courses to ensure employability, and to the Gujarat Government. Currently there are three Saakhi equip the candidate with computer skills. It also emphasizes Swarnim centers being run in Varsamedi, Dudhai and learning of other soft skills and English language skills to Bhadreshwar. This initiative widens their livelihood options boost a candidate’s employment potential in today’s by building capacities and providing training to rural women. competitive job market.Approximately 250 women have been trained under this

scheme. All of them are engaged in livelihood activity which

2. Youth Empowermenthas enhanced their esteem, confidence and most

- In order to encourage the youth towards all round importantly the family’s economic standards. Around 700

development by taking on vocational skill courses, we have women are being empowered due to this initiative. The same

adopted the Industrial Training Institute at Vansda, Nayvsari project will be replicated in other potential villages in

District under the Central Government Scheme of ITI up collaboration with the Gujarat Government, we have plans of

gradation through the Public-Private Partnership route. We inaugurating two new centres in Khamra and Sinugraha

have also tied up with the MPSTME College, Sirpur and Vapi, viallges of Anjar in 2014.

wherein we are providing a six month practical raining course

to students.Livelihood Development

We have given importance to equipping youth with skills that

Total Number of Beneficiaries Since

Inception of Our 5 Centers

Total Number of Women Absorbedin Welspun India Ltd. After

Voactional Training at Our 5 Centers

Total Number of Women Engaged

at Our Vocational Centers, 2013

264 184 73

EMPOWERMENT


focussed on mother and child care which consisted of various

awareness activities like family planning campaigns,

nutrition and biological development and importance of As a manufacturing sector, we are aware of the impact we

sanitation. We identified the need for medical facilities in have on the environment and the society around us due to

Anjar, and have established medical centres in Anjar in our operations and try to mitigate any negative impact that

association with Matrusparsh Hospital, that offers medical arises due to our presence. We envisage to work towards

assistance at very minimal rates. Free medical checkups as conservation and protection of the environment in all our

well as paediatrician and gynaecologists visit every Saturday areas of operation. We also provide awareness on

to ensure children and women avail the required health care. environmental conservation among school children in

Similarly medical centres are being run at Vapi and medical association with the Bombay Natural History Society.

cards were provided to 1000 BPL (Below Poverty Line)

families in Salav. 1. Tree Plantation Drive

We have organized various tree plantation drives during

• Health Camp at Jolwa –2012-13 and have planted 22,9654 trees in Anjar. World

Welspun organized a free health camp at Jolwa Primary Environment Day, a special gathering to mark the occasion of

School, Jolwa near Dahej. The camp was the first of its kind in the world environment day, was organized on June 5th, 2012

the locality. Doctors from the leading hospital volunteered to at Welspun India Ltd, Anjar. As a part of this celebration,

offer their medical expertise and service, the event was employees planted a number of saplings with the aim to

welcomed by local villagers. Around 170 adults, including enhance the surrounding green belt. The Wal-Mart and IKEA

mothers with children, were screened and diagnosed for teams also volunteered in the planting of the saplings.

various health ailments.

HEALTH

3. Anti-Tobacco and Health Project –1. Mobile Health Van (Mumbai) –

We initiated an anti-tobacco and health campaign in Alibaug In collaboration with the Wockhardt Foundation we

government schools in collaboration with Salav Bombay launched a mobile health unit that caters to the health of a

foundation which aims to disseminate information to further mother and child which reaches out to five underprivileged

create awareness about the ill effects of tobacco through neighbouring communities in Mumbai. About 25,797 people

active teacher participation. The project has an outreach of have benefited from the facilities provided by this van in

33 schools, 53 teachers, 7 cluster coordinators and 5 block 2012-13. Regular awareness workshops are also carried out

authorities. Various activities have been held such as in these communities as a part of preventive health care

teacher’s training workshops, students’ leadership education. The mobile medical van is well equipped with

development camps and Anganwadi workers training necessary facilities such as equipments, medicines, doctors

sessions. and medical staff and provides aid to the identified villages

and slums in a systematic manner.

4. Providing and Nutrition and Shelter for children –

This initiative looks to provide night shelter, nutrition and 2. Regular and Special Medical Camps–

primary healthcare to 120 children belonging to commercial • Blood Donation Camp (Mumbai) –

sex workers living in the Red light Area in Mumbai. This Welspun took a small step towards saving lives when it initiative was undertaken in association with Prerana, an organized a blood donation camp at the Head office in NGO in June 2012.collaboration with Tata Memorial Hospital. Altogether 123

people donated blood and 93 units were collected. As a

5. RO Water Purification Plant –token of appreciation, participating employees were given

RO Water Purification Plant was commissioned in Vapi to donor cards from Tata Memorial hospital which can be used

provide safe drinking water to the villages adjoining to the by the donor or their immediate family to get blood from Tata

WIL plant in Vapi. This initiative began in November, 2012 Memorial Hospital or any other blood bank in times of

due to which approximately 6200 people availed safe and emergency.

potable drinking water. The impact of this initiative has

resulted in the reduction of water borne diseases and an • Health checkups and medical facilties at Anjar –

improved health status amongst villagers.Health checkups were conducted at Anjar, that majorly

ENVIRONMENT & HEALTH


Some additional activities include: 2. Employee Voluntary Program

1. Charitable Donations Special emphasis is being given on employee participation in

the various schemes. We have supported the event by Donations of bed sheets and curtains are made regularly to

providing gutter covers and road widening repair work to REAP organization and the light of Life Trust. School

enhance cleanliness and hygienic conditions. The villages stationery was donated by our employees and distributed to

were overwhelmed when they were selected to receive an students from the Vatsalya Foundation.

award and certificate from the chief minister of Gujarat for

cleanliness and overall hygiene.

CSR Awards and Accolades

Corporate India and non-profit organizations emphasized the need for Public Private Partnerships, capacity development and

sustainable development at the Wockhardt Foundation’s first ‘CSR Thought Leadership Conclave’ 2011. Industry leaders

emphasized the need for focusing on social development for economic growth Minister for Minority Affairs and Water Resources

Salman Kursheed calls for more corporate effective participation to drive social growth Dalai Lama calls for social and rural

development in his inaugural speech, at the conclave. Key note speaker Prof. Muhammad Yunus states: ‘Investment in social

business is the foundation for the wheels of growth and it should be driven by the people’, and for the people. Veteran Marathi

Social Activist Sindhutai Sapkal honoured with the Wockhardt Foundation Lifetime Achievement Award 2010

India Shining Star CSR Awards – 2011

We received the 1st runner up award for reduction in emission and mitigation of Greenhouse gasses for a cleaner and more

environment friendly project in 2004. It went in for a fuel changeover, switching from heavy fuel oil to natural gas in its electricity

and steam generation projects. Under this, a 5.9 MW gas turbine with waste heat recovery system was installed. It increased the

system efficiency to about 70% from the usual 42% and lowered fuel consumption, leading to a reduction in GHG emissions and

conservation of energy

Earth Care Awards – Times of India and Jindal Steel Ltd. – 2008

We are amongst the top 38 Corporate Houses. The award which has been instituted by Bombay Stock Exchange Limited, Nasscom

Foundation and Times Foundation recognizes and honours organizations for their contribution to society.

Social Corporate Governance Award - 2008

We received the Best Corporate Social Responsibility Practices Category – 2013 organised by the World CSR Congress

Global CSR Excellence and Leadership Awards - 2013

In recognition for our CSR initiatives, we received the Award for Excellence for Corporate Social Responsibility by Wal-Mart.

Excellence for Corporate Social Responsibility - 2013


GRI Content Index STANDARD DISCLOSURES PART I: Profile Disclosures

1. Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organisation 4-6

Fully Reported

1.2Description of key impacts, risks, and opportunities 4-6, 16-17

2. Organizational Profile

2.1

2.2

2.4

2.5

2.3

Name of the organisation

Primary brands, products, and/or services

Location of organisation’s headquarters

Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures

2-3

2-3

6

2-3

2-3

2.6

2.7

Nature of ownership and legal form

Markets served (including geographic breakdown, sectors served, and types of customers / beneficiaries)

16

2-3, 20

2.8

2.9

Scale of the reporting organisation

Significant changes during the reporting period regarding size, structure, or ownership

2,3,20, 21, 38

20-21

Profile Disclosure

Description Extent ofReporting Reference Explanation

2.10 Awards received in the reporting period 8,9

3. Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year)for information provided 6

6

6

6

6

6

6

6

3.2

3.3

3.4

Date of most recent previous report (if any)

Reporting cycle (annual, biennial, etc.)

Contact point for questions regarding the report or its content

- This is Welspun's first Sustainability Report

Process for defining report content.

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI BoundaryProtocol for further guidanceState any specific limitations on the scope orboundary of the report (see completeness principle for explanation of scope)

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations

Data measurement techniques and the basis of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols

3.5

3.6

3.7

3.8

3.9


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statements (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods)

-

-

Profile Disclosure


This is Welspun’s first sustainability report

This is Welspun’s first sustainability report3.11Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report

56-63

-

3.12

3.13

Table identifying the location of the Standard Disclosures in the reportPolicy and current practice with regard toseeking external assurance for the report

This report is not externally assured

4. Governance, Commitments, and Engagement

16-17

16

16

12-13

4.1

Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

Indicate whether the Chair of the highest governance body is also an executive officer

For organizations that have a unitary boardstructure, state the number of members of the highest governance body that are independent and/or non-executive members.

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance).

Processes in place for the highest governancebody to ensure conflicts of interest are avoided.

Process for determining the qualifications and expertise of the members of the highest governance body for guiding theorganisation’s strategy on economic, environmental, and social topics.Internally developed statements of missionor values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance,including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles. Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.Explanation of whether and how the precautionary approach or principle is addressed by the organisation. Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses. Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organisation: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic.

7

16-17

6

17

Please refer our annual reports for the year 2012-13 http://www.welspun.com/content.asp?Submenu=Y&MenuID=2

Please refer our annual reports for the year

This information is reported in the our annual report http://www.welspun.com/content.asp?Submenu=Y&MenuID=2We manage our risks through our risk management framework and ensure risks are mitigated across the three bottom lines


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Annual Report

Annual Report

Annual Report

Annual Report

2012-13 http://www.welspun.com/content.asp?Submenu=Y&MenuID=2

Please refer our annual reports for the year 2012-13 http://www.welspun.com/content.asp?Submenu=Y&MenuID=2

http://www.welspun.com/content.asp?Submenu=Y&MenuID=2





4.15Basis for identification and selection of stakeholders with whom to engage. 10-13

10-13

10-13

4.16

4.17

Approaches to stakeholder engagement,including frequency of engagement by type and by stakeholder group.

Profile Disclosure


Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.

20-21

24-31

38-47

47

50-55

34-35

Disclosure on Management Approach EC

Disclosure on Management Approach EN

Disclosure on Management Approach LA

Disclosure on Management Approach HR

Disclosure on Management Approach SO

Disclosure on Management Approach PR

DMA EC

DMA EN

DMA LA

DMA HR

DMA SO

DMA PR

STANDARD DISCLOSURES PART III: Performance Indicators

Economic Performance Indicators

EC1

EC2

EC3

EC4

EC5

EC6

EC7

EC8

EC9

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

20

Annual Report

Financial implications and other risks and opportunities for the organisation’s activities due to climate change.

Coverage of the organisation’s defined benefit plan obligations.

Significant financial assistance received fromgovernment. Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

Policy, practices, and proportion of spending on locally-based suppliers at significantlocations of operation.

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Understanding and describing significant indirect economic impacts, including the extent of impacts.

Profile Indicator


20-21

21

50-54

50-55

We do understand the impact of climate change on our operations, however we have yet to conduct a detailed exercise to determine the impacts of climate change specific to our operations and further also indentify areas of opportunity This information is reported in the our annual report

We adhere to all conditions of the minimum wage requirements of the respective locations of operations

Currently Welspun does not have any specific procedures for local hiring of senior management. The hiring is based on merits, irrespective of the location of the person. We abide by the local regulations on employing non-management workforce from local communities


12-13List of stakeholder groups engaged by the organisation4.14 Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

17, 28



Environmental Performance Indicators

25-26

28

28-29

34-35

28-29

30-31

30

31

EN1

EN2

EN3

EN4

EN5

EN6

EN7

EN8

EN9

EN10

Materials used by weight or volume.

Our products, both in the textile and our pipe business, are manufactured based on the specific requirements by our customers hence the scope of incorporating recycled materials in our processes is very low.

We take measures to ensure that we do not source water from reservoirs that would further affect the communities around us

Percentage of materials used that are recycled input materials.

Direct energy consumption by primary energy source.

Indirect energy consumption by primary Source.

Energy saved due to conservation and efficiency improvements.Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Initiatives to reduce indirect energy consumption and reductions achieved.

Total water withdrawal by source.

Water sources significantly affected by withdrawal of water.

Percentage and total volume of water recycled and reused.

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Habitats protected or restored.

Strategies, current actions, and future plans for managing impacts on biodiversity.

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Total direct and indirect greenhouse gas emissions by weight.

Other relevant indirect greenhouse gas emissions by weight. Initiatives to reduce greenhouse gas emissions and reductions achieved.

Emissions of ozone-depleting substances by weight.

NOx, SOx, and other significant air emissions by type and weight.

EN11

EN12

EN13

EN14

EN15

EN16

EN17

EN18

EN19

EN20

EN21

EN22

EN23

EN24

Our operations are not present in areas adjacent to protected areas and areas of high biodiversity value. Environmental conditions as stated in the consent are adhered to and monitoring is carried out on environmental parameters. Further activities like tree plantations are carried out around our areas of operation to create awareness on environmental conservation

Our businesses do not deal in the manufacture of ODS

31

31

28-29

28-29

28-29

29

Partially Reported

Total water discharge by quality and destination

Total weight of waste by type and disposal method.

Total number and volume of significant spills During the reporting period there were no occurrences of significant spills

Weight of transported, imported, exported, or treated waste deemed hazardous underthe terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

The waste disposal is carried out as per the conditions mentioned by the State Pollution Control Board. We do not ship any waste internationally

30-31

26-27


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

28

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organisation’s discharges of water and runoff

EN25

Profile Disclosure


There are no water bodies and related habitats that are significantly affectedby the water discharges from our operations

EN26Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Percentage of products sold and their packaging materials that are reclaimed by category.

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. Significant environmental impacts of transporting products and other goods and materials used for the organisation’soperations, and transporting members of the workforce. Total environmental protection expenditures and investments by type.

EN27

EN28

EN29

EN30

24,31, 34-35

29

24

The packaging materials utilised for textile as well for the pipe businesses cannot be reclaimed due to the type of product and in most cases these products are exported, thus making it not feasible for reclamation

We ensure compliance towards all the environmental laws and regulations

Social: Labour Practices and Decent Work

38-39

40-41

43

47

46-47

42-43, 51-52

39-40

LA1

LA2

LA3

LA4

LA5

LA6

LA7

LA8

LA9

LA10

Total workforce by employment type, employment contract, gender and region.

We are in the process of developing systems that can capture contractual workforce and will be reporting the same by FY 2014-15

Total number and rate of employee turnover by age group, gender, and region.Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Percentage of employees covered by collective bargaining agreements.Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

We follow the Industrial Disputes Act for determining the minimum notice periodregarding significant operational changes

Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advice on occupational health and safety programmes.

We ensure there is an equal representation of non management as well as management cadre of employees in the safety committees formed

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender.

Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases.Health and safety topics covered in formal agreements with trade unions.

Our trade agreements cover topics such as wearing of PPE’ and adherence to Welspun’s initiatives towards enabling a saferworkplace

Average hours of training per year per employee by employee category and gender.

We are the in the process of developing systems that capture training needs specific to the employee category and will report the same by FY 2014-15

PartiallyReported

Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

LA11


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

PartiallyReported

PartiallyReported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

30-31

39-40

LA12Percentage of employees receiving regular performance and career development reviews by gender.

At Welspun, we do not discriminate on the basis of gender, the salaries of employees are determined on the basis of merits only

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

Ratio of basic salary of men to women by employee category.

Return to work and retention rates after parental leave, by gender

LA13

LA14

LA15

Welspun upholds the values of human rights. All our agreements contain the clause of adhering to all the laws of the land which also cover aspects of human rightsOur operations are SA8000 certified, wherein child labour and forced labour are not permitted even in the contractual workforce category. Further supplier assessment audits conducted by us incorporate aspects of human rights. We plan to report on the same by FY 2014-15

Welspun ‘s (WIL and WCL) operations are SA 8000 certified. Further awareness on our Ethics and Code of conduct as well as our policy on equal opportunities is a part of theinduction session for all employees. We planto report on the same by FY 2014-15

There were no incidents of discriminationduring the reporting period

Welspun‘s (WIL and WCL) operations are SA 8000 certified and hence allow our workforce to exercise freedom of association.

Welspun‘s (WIL and WCL) operations are SA 8000 certified and hence do not allow the occurrence of child labour.

Welspun‘s (WIL and WCL) operations are SA 8000 certified and hence do not allow the occurrence of forced or compulsory labour

Welspun‘s (WIL and WCL) operations are SA 8000 certified and further our security personnel are made aware of the organization’s clear stand on zero tolerance against violation of human rights. Howeverwe are currently in the process of developing specific training programs to security personnel on human rights and will report the same by FY 2014-15.

Welspun (WIL and WCL) does not have operations near to indigenous People's Territories. However, we interact with the communities in the villages surrounding its operations to identify their needs and foster their developmentWelspun‘s (WIL and WCL) operations are SA 8000 certified. Our code of conduct as well our policy on equal opportunities demonstrates a zero tolerance against violations on human rights We have a formalised grievance redressal system in place for employees, however we are in progress of developing more robust systems to record grievances related to human rights by our external stakeholders. We plan to report on the same by 2014-15

Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.

Total number of incidents of discrimination and actions taken.

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.

Operations identified as having significant risk for incidents of child labour, and measures taken to contribute to the elimination of childlabour.

Operations identified as having significant risk for incidents of forced or compulsory labour,

and measures to contribute to the elimination of forced or compulsory labour.

Percentage of security personnel trained in the organisation's policies or procedures concerning aspects of human rights that are relevant to operations.

Total number of incidents of violations involving rights of indigenous people andactions taken.

Percentage and total number of operations that have been subject to human rights reviews

and/or impact assessments

Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

PartiallyReported

PartiallyReported

PartiallyReported

PartiallyReported

HR1

HR2

HR3

HR4

HR5

HR6

HR7

HR8

HR9

HR 10

HR 11

39

16-17


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Percentage and total number of business units analyzed for risks related to corruption.

Percentage of employees trained in organisation's anti-corruption policies and procedures.

Actions taken in response to incidents of corruption.

Public policy positions and participation in public policy development and lobbying.

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and their outcomes.

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Operations with significant potential or actual negative impacts on local communities

Prevention and mitigation measures implemented in operations with significant potential or actual negative Impacts on local communities

SO1

SO2

SO3

SO4

SO5

SO6

SO7

SO8

SO9

SO10

Corruption can pose a significant risk to the organization. Welspun’ s Ethics and Code of conduct policy is applicable to all employees, customers and suppliers which clearly states that compliance with laws and regulations of the land will always be followed and further business practices will be conducted in a fair and honest manner

Welspun Ethics and Code of conduct policy is applicable to all employees and associates that enable a transparent and fair work environment.

Welspun does not make any political contributions to to political parties

There were no legal actions taken on Welspun for anti-competitive behaviour, anti-trust, and monopoly practices

Various initiatives were carried out during the reporting period towards development of the surrounding communities. Our environmental parameters as specified by the PCB are monitored and maintained within limits, further tree plantation activities are carried out towards environmental conservationsCommunity development initiatives carried out by us are focussed on aspects such as education, empowerment, environment and health. Our dedicated CSR team across locations engage with communities on a frequent basis to understand if there any negative impacts on local communities

Social :Society Performance Indicators

Profile Disclosure


50-51

Social: Product ResponsibilityLife cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.

Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements.

PR1

PR2

PR3

We have carried out the Life Cycle Analysis for certain key products in our textile operations.

There were no significant cases on non compliance pertaining to regulations and voluntary codes concerning health and safety impacts of products and services during the reporting period

Our products, both at WIL and WCL are made specifically to cater customer demands. Certain requirements on the usage of product and specifications of the product are clearly mentioned depending on the customer base to which the product caters to. For the products pertaining to WIL, customers are kept informed specifically on wash care requirements and the environmental footprint of the product specifically for the environmental friendly products


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

Percentage of operations with implemented local community engagement, impact assessments and development programs.

During the reporting period there were no instances of corruption

During the reporting period there were no cases of fines

17

Programmes for adherence to laws, standards,and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

There were no cases of non-compliance with regulations and voluntary codes concerning product and service information and labelling

Individual departments seek feedback depending on the specific products, the feedback we obtain is used to ensure we deliver the best to our customers. However we are in the process to put in place a robust system that enables to record customer feedback to enable reporting in a formal manner

11

Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes.

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

We adhere to all laws, including those related to marketing, communications and advertising as applicable

We have no incidents of non-compliancewith regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship

We did not have any substantiated complaints regarding breaches of customer privacy and losses of customer data during the reporting period

We have not paid any fines for non compliance with laws regarding use of our products

PartiallyReported

PR4

PR5

PR6

PR7

PR8

PR9


Fully Reported

Fully Reported

Fully Reported

Fully Reported

Fully Reported

AbbreviationsAIDS

BSE

BPL

CAGR

CBSE

CCTV

CLSA

CRISIL

CSR

DGM

DO

EBITDA

EC

EEPC

EN

ERW

ETP

FY

G3.1 Guidelines

GAIL

GDP

GHG

GJ

GRI

GW

HDPE

HFIW

HO

HR

HS&E

HSAW

ILO

INR

IPR

ISO

IT

KPAs

KRA’s

KL

LA

LLC

– Acquired Immuno Deficiency Syndrome

– Bombay Stock Exchange

– Below Poverty Line

– Compounded Annual Growth Rate

– Central Board of Secondary Education

– Close Circuit Television

– Crédit Lyonnais Securities Asia

– Credit Rating Information Services of India

Limited

– Corporate Social Responsibility

– Deputy General Manager

– Dissolved Oxygen

– Earnings Before Interest, Tax, Depreciation &

Amortization

– Economic Indicators

– Engineering Export Promotion Council

– Environmental Indicators

– Electric Resistance Welding

– Effluent Treatment Plant

– Financial Year

– The new set of Sustainability Reporting

Guidelines launched by GRI in 2010

– Gas Authority of India Limited

– Gross Domestic Product

– Green House Gases

– Giga Joules

– Global Reporting Initiative

– Giga Watts

– High Density Polyethylene

– High Frequency Induction Welding

– Head Office

– Human Resources

– Health, Safety and Environment

– International Labour Organisation

– Indian National Rupee

– Intellectual Property Rights

– International Organisation for

Standardisation

– Information Technology

– Key Performance Areas

– Key Responsibility Areas

– Kilo Litres

– Labor Indicators

– Limited Liability Company

– Helical Submerged Arc Welded Pipes

– Liquefied Petroleum Gas

– Management Development Program

– Metric Tonnes

– Million Tonnes Per Annum

– Mega Watts

– Non-Government Organisations

– National Institute of Construction Management

and Research

– Oxides of Nitrogen

– National Stock Exchange

– Nettur Technical Training Foundation

– National Voluntary Guidelines for Social,

Environmental & Economic Responsibilities of business

– Organisational Health and Safety

Assessment Series

– Profit Before Depreciation, Interest and Tax

– Provident Fund

– Performance Management System

– Personal Protective Equipment

– Product Responsibility Indicators

– Poly Vinyl Chloride

– Reverse Osmosis

– Standard & Poor’s

– Securities & Exchange Board of India

– Social Indicators

– Oxides of Sulphur

– Suspended Particulate Matter

– Tonnes of Carbon Dioxide Equivalent

– United Arab Emirates

– United Nations Framework on Convention

for Climate Change

– United Nations Global Compact

– United Kingdom

– The United States of America

– Value Added Tax

– Welspun Foundation for Health and

Knowledge (WFHK)

– World Business Council for Sustainable

Development

– Welspun Corp. Limited

– Welspun Corporate University

– Welspun Energy Ltd.

– Welspun India Limited

LPG

LSAW

MDP

MT

MTPA

MW

NGOs

NICMAR

NOx

NSE

NTTF

NVG-SEE

OHSAS

PBDIT

PF

PMS

PPE

PR

PVC

RO

S&P

SEBI

SO

SOx

SPM

tCO2 / tCO2e

UAE

UNFCCC

UNGC

UK

US/USA

VAT

WFHK

WBCSD

WCL

WCU

WEL

WIL

WSL

– Longitudinal Submerged Arc Welded Pipes

– Welspun Steel Ltd.


Welspun House, 7th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013Tel: +91 22 6613 6000 / 24908000 Fax: +91 22 24908020 / 24908021 Website: www.welspun.com

Documents

Sustainability Report 25mar14 - Welspun Sustainability Report_2012... · Its’ product range covers the entire gamut of ... first sustainability report “Weaving the threads of