NURTURING NOW. PROTECTING FUTURE. - Binani Industries

Sustainability Report 2010-11

NURTURING NOW.PROTECTING FUTURE.

Binani Cement Limited

NURTURING NOW.PROTECTING FUTURE.As we move ahead, we aim to cross new milestones by inspiring vibrant ideas, pioneering deeper partnerships and delivering excellence in everything we do. We are shaping an exciting tomorrow by nurturing the present and protecting the future.

At BCL, we aim to make a real difference to the environment and to the communities we serve. As one of the leading cement producing companies in India and around the world, we have an important role to play in sustainable development. Therefore, our sustainability initiatives have always been a part of our culture and our business, be it in economic contribution, environmental conservation, building communities and providing them with services or in education initiatives for the underprivileged.

CONTENTS

statement from the EXECUTIVE VICE CHAIRMAN AND MANAGING DIRECTOR 04

about the REPORT 06

cement BUSINESS 08

risks and OPPORTUNITIES 12

awards and ACHIEVEMENTS 16

corporate GOVERNANCE 20

our commitment to STAKEHOLDERS 24

economic PERFORMANCE 30

environmental FOOTPRINT 36

our EMPLOYEES 56

sustainable products and SATISFIED CUSTOMERS 64

the SOCIAL DIMENSION 70

GRI CONTENT INDEX 80

Binani Cement Limited2

Cement Business

Economic Performance

Environmental Footprint

The Social Dimension

Awards & Achievements

P.16

P.70

P.36

P.08

P.30

Sustainability Report 2010-11 3

statement from the EXECUTIVE VICE CHAIRMAN AND MANAGING DIRECTOR

Dear Stakeholders,

Binani Cement Limited (BCL), the flagship company of the Braj Binani Group, is proud to present to you its maiden Sustainability Report for the Financial Year 2010-11. At Binani Cement, Sustainable Development has always been at the root of our culture. Today, we keep this alive in our day-to-day operations through the preservation of natural resources, the enhancement of the wealth generated and the support for the communities that are close to us. Our mission has been to deliver quality and reliability by deploying best-in-class technologies, while upholding our Group’s core values of integrity, commitment and teamwork.

Time and again, we have demonstrated our commitment to triple bottom-line excellence by taking up sustainability initiatives that have enhanced the lives of people, both working with us and around our manufacturing locations, and the overall environment.

Through this first report we share our key initiatives during the reporting period. With our constant efforts in energy efficiency optimization, we have achieved almost 15% reduction in our specific energy consumption over the last three years. We have made significant investments in our water management and conservation programmes within and around our plants. Estimated recharge of ground water through the RWH program has created a potential of almost 2 Million Cubic Meters (MCM) per annum, whereas total annual withdrawal is less than 1 MCM. Both our operating units achieved zero reportable injuries during the reporting period. In line with the industry best practices, we have been utilising fly-ash from captive power plants in our manufacturing process. Further, we have increased the consumption of alternate fuels to twice that of last year, which has helped to reduce our fossil fuel intake in the reporting year.


Our constant efforts have been well recognized through various awards and accolades received by us including the CII-ITC Sustainability Awards (2009-10) and the IEI Safety Innovation Award (2010).

Cement demand in India has grown in tandem with local economic growth, making India the second largest consumer of cement in the world and still offers immense growth potential. We are now focused on enhancing our cement capacity to 20 Million Tonne per annum in the next five years and are looking towards increasing our presence in growing markets in China, Middle East and East Africa in addition to further deepening our base within the Indian market.

Despite a strong demand growth forecast of 8-10% in the next 3-4 years, increase in the cost of key inputs such as energy, limited raw material supplies, as well as spiraling interest rates may

put pressure on the bottom line in the short to medium term. Thus, for continuing on our incremental growth trajectory, it is imperative to increase our operational efficiencies while integrating sustainability into our business strategy.

I take this opportunity to thank all our customers, suppliers and business partners for their continued support, and to our employees who work on keeping our values alive and help us deliver on our commitment to build a sustainable future in these challenging times. This report bears testimony to our unflinching commitment towards delivering value to our stakeholders for generations to come, while adhering to highest standards of manufacturing, environmental and social performance.

I invite feedback from our stakeholders on this communication of our sustainability performance and look forward to continual improvement in the coming years.

(Sunil Sethy)Executive Vice Chairman & Managing Director Binani Industries Limited(Holding Company)

“As a leading cement company, we have an important role to play in the sustainable development of our customers, our people, our environment and society at large. The alignment of financial and non-financial goals is an essential feature of our strategy.”


about the REPORT


The Company has started reporting with the goal to achieve better transparency and to further harmonise the excellence of our technical, economic and financial performance with the effective performance in social and environmental responsibility. We hope this report will provide a balanced description of our sustainable development policies and practices.

It is our endeavour to present the sustainability performance of our operations during the reporting period 2010-11. The report has been prepared in accordance with the Global Reporting Initiative’s (GRI) Sustainability Reporting 2006 GRI G3 Guidelines, and is self-declared to application level A. Key performance indicators pertaining to our sector and operations have been reported, including the Metals and Mining Sector Supplement.

The report boundary covers our cement units (Binanigram at Sirohi and Neem Ka Thana at Sikar) and mines (Thandiberi & Amli at Sirohi) situated within the state of Rajasthan, India, unless otherwise stated.

We began our operations in 1997, with a 1.20 Million Tonne per annum integrated cement facility in Sirohi district of Rajasthan. With the addition of a new clinkerisation line, two 22.3 MW thermal power plants, a cement grinding mill and a split grinding unit at Neem Ka Thana, the annual production capacity in India was greatly enhanced to 6.25 Million Tonne per annum. With our vision to always provide trusted and reliable quality, we have also commenced operations of Binani Ready Mix Concrete Ltd., an entity that provides additional value to our customers through our advent into the ready-mix concrete space.

In an attempt to provide a holistic coverage of our operations over the recent years and to show performance trends, indicator information has been presented across a three-year period, wherever possible. All financial data pertains exclusively to the period between 1st April, 2010 and 31st March, 2011.

We look forward to receiving your valuable feedback at [email protected]. It shall motivate us to continuously partner with you on the progressive path that we have together chosen.

It is time to scale up sustainable solutions. It is also time for every one – at both the individual and corporate levels – to address the issue of accountability with regard to our environment footprint.


cement BUSINESS


OUR GLOBAL FOOTPRINT

Binani Cement Limited is the flagship subsidiary of the Braj Binani Group, a business conglomerate that traces its humble Indian beginnings to 1872 and, today, has global business interests across – cement, zinc, glass fibre and composites, metal and mineral mining and EPC.

Our international cement operations commenced in 1998 with the setting up ofthe Binani Cement factory, LLC at Jebel Ali in the UAE followed by our cement acquisition in China- Shandong Binani Rongan Cement Co. Ltd. The Shandong Binani facility has been recently expanded and plans are afoot to install a Clinkerisation plant in UAE to cater to the emerging markets in East Africa. All our overseas operations not only produce world class cement but create employment opportunities for the local communities.

The map below shows our global footprint comprising both of our manufacturing units as on 31st March 2012.

UAEChINA

SHANDONG BINANI RONGAN CEMENT CO. LTD (SBRCCL)

Capacity: 0.2 MTPAClinker: 2.5 MTPA

BINANI CEMENT LIMITED, Cement Plant, Sirohi : 4.85 MTPAClinker Grinding Unit, NKT : 1.40 MTPA

BINANI CEMENT FACTORY LLC, JEBEL ALI

Capacity: 2 MTPA

INdIA

FIGURE 1

CEMENTING OUR GLOBAL PRESENCE


OUR INdIAN FOOTPRINT Binani Cement Limited started operations in India in 1997 and was converted to a public limited company in 1998. Currently the Company operates two facilities: a cement manufacturing facility at Sirohi and a clinker grinding unit at Neem Ka Thana, Sikar, both in the state of Rajasthan.

Our Sirohi unit caters to our domestic markets in Rajasthan, Gujarat, Haryana, Punjab, Delhi and other north-central regions of India. The unit was set up in 1997 with an initial production capacity of 1.20 million tonnes per annum (MTPA) along with a 25 MW Captive Power Plant. Through various capacity additions and debottlenecking from time to time, the clinker manufacturing capacity was increased to 4.8 MTPA, along with 44.6 MW captive power plant.

In order to access northern markets, we commenced our clinker grinding plant at Neem Ka Thana in 2008 with an installed capacity of 1.40 MTPA. This facility is also well-connected by both road and rail.

Our units are ISO 9001:2008, 14001:2004 and OHSAS 18001:2007 certified for running effective quality, environment, health and safety management systems within a short span of their commencement. This is an achievement that illustrates our commitment to quality, employee safety and nurturing

the environment in and around our units. As testament to our commitment and sense of ownership towards the communities near the locations we operate in, the name of the area around our plant site is called Binanigram (Binani ‘village’). Our greatest efforts have been invested to generate a sense of mutual belonging, for us and our stakeholder communities. We discuss this in more detail in the section ‘The Social Dimension’ on page 68 of the report.

OUR PROdUCT PORTFOLIOWe are committed to achieving excellence in the design, manufacture, distribution, use and disposal of our products. As a dedicated practice, we abide by all health, safety and environmental regulations applicable in the locations where we operate.

Our world-class products include the manufacture of Ordinary Portland Cement (OPC) and Pozzolana Portland Cement (PPC).

TABLE 1

Products manufactured from India operations

PRODUCT PRODUCTION (MTPA)

2008-09 2009-10 2010-11

OPC, Grades 43 & 53

2.5 3.1 3.3

PPC 1.8 2.2 2.1

Our products in India are marketed under the ‘Binani Cement’ premium brand name and enjoy a significant market share in northern and western India. Our widespread distribution network, comprising more than 2800 dealers and almost 80 market organizers, support our efforts in becoming the leading brand in the market.

cement BUSINESS


OUR CEMENT MANUFACTURING PROCESS

TRANSPORTATION The crushed material is transporated to a stockyard where the material is pre-homogenized

qUARRINGLimestone and clay are extracted from the quarry through drilling and blasting techniques.

hOMOGENISATION The raw meal then undergoes final homogenisation by aeration (pneumatic treatment).

CLINkER STORAGE After the molten clinker is quickly air-cooled, it is transported by deep pan bucket conveyors to the storage silo.

PACkING ANd

dELIvERyCement is packed and delivered in bags or in bulk by truck or wagons.

CRUShING Big Limestone boulders are reduced through compression or impact crushing.

PRE-BLENdING The limestone and clay are pre-homogenized in a blending bed or stockpile.

RAw MILLING The pre-blended material along with corrective material is proportioned milled and dried producing raw meal.

CEMENT MILLING Clinker, together with about 5% gypsum, is finely ground in the ball/tube mill. The powder product is now called cement.

CLINkER PROCESSING The calcined raw mix enters the rotary kiln at a temperature from 900 to 1000oC; lime reacts with silica and other ingredients in stages and clinker minerals are finally formed at 1450oC.

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8.

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10.

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“Our widespread network of more than 2800 dealers and 80 market organizers, support our efforts in becoming the leading brand in the market.”


risks and OPPORTUNITIES


The demand for cement in India, over the past several years, has grown in tandem with the domestic economic growth, making the country the second-largest consumer of cement in the world.

India’s demand for cement has the potential to more than double every seven years, supported by a strong local economic growth and low per capita consumption of the product. India accounts for about 6% of the world’s cement production with a total production capacity of 219 MMTPA, second only to China. Owing to the rapid expansion predicted in the sector, it is expected to produce 403 million tonnes of cement in the year 2020 and 833 million tonnes in the year 2030. We aim to be sustainable partners in this phase of the tremendous growth of the cement sector. At Binani, we are dedicated to integrate sustainability into our operations and focus on key concern areas of our stakeholders. The Company recognizes challenges and opportunities and strives to maintain their delicate balance.

CLIMATE ChANGE In India, the cement industry has been identified by the government as a focus sector under the new market-based mechanism, the Perform, Achieve & Trade (PAT) scheme, a key programme of the National Mission for Enhanced Energy Efficiency (NMEEE). Under this scheme, it is mandatory that we reduce our Specific Energy Consumption by a fixed percentage.

Being attentive to the impact of these new regulations around energy efficiency and renewable energy, we have been proactively implementing energy conservation initiatives in our operations. Our specific energy consumption has consistently demonstrated a decreasing trend since inception of our plant, which is a result of our continuous technology upgradation and process optimization initiatives. We are increasingly using alternative fuels to reduce our fossil fuel intake and have doubled the consumption of alternative fuels this year.

1 Building strength, ICR research 20092 TERI report — National Energy map for India

“We believe the issue of growth versus climate is to be addressed in conjunction, not in isolation”


RESOURCE AvAILABILITyLimestone, the main raw material for the manufacture of cement, is a natural resource. To optimise our consumption of this resource, the Company undertakes mining operations in a scientific manner and in accordance with the approved mining plan. In particular, we have enhanced the efficiency/productivity of our mining operations by adding high capacity moving machines.

We have been progressively reusing waste products such as fly ash generated by our captive power plant and nearby thermal power plants without compromising on the strength of our blended cement. The use of fly ash as a clinker substitute also helps in reducing our energy consumption and GHG emissions. Additionally, it reduces the burden on landfill sites. These strategies have been instrumental in reducing our environmental footprint.

ENERGy EFFICIENCyUse of new and energy-efficient technology has helped us reduce costs as well as our GHG emissions, while improving performance. Over the last three years, we have achieved an almost 15 per cent reduction in our Specific Energy Consumption due to our energy efficiency optimization initiatives. We continue to increase the use of alternative fuel and cementitious material (fly ash and slag) to reduce our clinker-to-

cement ratio, and to adopt state-of-the-art energy saving and efficiency enhancing technologies for improving our overall plant productivity. Please refer to the Section: ‘Responsible consumption of energy’ on page 39 for details. AIR EMISSIONSWe pay special attention to managing the air emissions from our unit stacks. Our units are certified to ISO 14001 standards and possess world-class pollution monitoring and control equipments such as online ambient air quality monitoring systems and opacity meters for stack SPM monitoring. For more on this subject, please refer to the details presented in Section titled: ‘Conscious Management of air environment – beyond compliance’ at page 48.

risks and OPPORTUNITIES

“We are the first in India and second in the world to install the revolutionary MMX Cooler, which has improved efficiency as compared to convention cooling system.”


CONSERvING wATERAs we operate in the state of Rajasthan, a water scarce region, we constantly work to optimize our water consumption and to conserve and preserve the quality of the water resources. The Company has been actively addressing water concerns in the area on an ongoing basis by recharging the groundwater table through rainwater harvesting and building water retention structures such as check dams. The details of our water management and conservation programmes are presented in the section: ‘Our water management strategy’ at page 42.

PARTNERS wITh LOCAL STAkEhOLdERSWe understand the importance of connecting with the communities in and around our units and building long-lasting relationships, particularly in the remote rural areas, to ensure the long-term success of our operations. Our approach is to deliver the maximum benefit to society, based on the evaluation and assessment of the needs of the local communities, for their inclusive growth and development.

In the future years, we expect to further refine our engagement with our community stakeholders through both formal and informal mechanisms. The detailed case studies of our work, based on the frequent feedback received from the communities around our Sirohi unit, are presented in the section ‘The Social Dimension’ at page 68.


awards and ACHIEVEMENTS


Across each of our operations, we strive to grow sustainably and build a proud legacy of excellence for generations to come. With the various initiatives and actions taken up by our units, we have been conferred several awards by government and business bodies for achieving distinction in each sphere of our operations.

Some of the major awards and recognitions received during the last three years are listed here. Those received over the earlier years can be viewed at our website – www.binaniindustries.com.

This continued recognition motivates us to relentlessly innovate and deliver our best. We believe it is also a reflection of our sustainable efforts towards achieving business efficiency through practices, which are best for our environment, employees and customers – for generations to come.

“Our sustained commitment to the cause of sustainable development has been acknowledged by the Government and industry forums”.


Accolades received for ‘Environmental & Safety’ Excellence

NATIONAL AwARd FOR EXCELLENCE IN ENERGy MANAGMENT - ENERGy EFFICIENT UNIT, awarded by CII in 2009-10

NATIONAL AwARd FOR PREvENTION OF POLLUTION FOR 2008-09, awarded by Ministry of Environment & Forests, Government of India, in 2010-11

GREENTECh ENvIRONMENT EXCELLENCE GOLd AwARd, received for three consecutive years (2009, 2010 & 2011) from the Greentech Foundation, New Delhi

NATIONAL EXCELLENCE IN wATER MANAGMENT - EXCELLENT wATER EFFICIENT UNIT,conferred for three consecutive years by Confedderation of Indian Industry (CII -2009, 2010 & 2011)

awards and ACHIEVEMENTS


Accolades received for ‘Quality’ Excellence

Accolades received for ‘Business Excellence’

FE- EvI GREEN BUSINESS LEAdERShIP AwARd CONFERREd FOR TwO yEARS IN A ROw - 2010 & 2011

for Best Performer in Cement Industry, conferred by Financial Express - EVI Green business Survey

RCCI EXCELLENCE AwARd FOR 2008-09 & 2009-10

from Rajasthan Chamber of Commerce & Industries, Jaipur

CII-ITC SUSTAINABILITy AwARd

for Strong Commitment towards Sustainability, conferred by Confederation of Indian Industry in 2009-10

CERTIFICATE OF MERIT FOR PROdUCTIvITy EFFICIENCy IN CEMENT SECTOR, 2009-10

by Rajasthan State Productivity Council, Jaipur

NATIONAL AwARd FOR BEST qUALITy EXCELLENCE FOR ThREE CONSECUTIvE yEARS (2008-09, 2009-10 & 2010-11) from National Council for Cement and Building Materials (Government of India)

CERTIFICATE OF EXCELLENCE FOR BEST EMPLOyER,

received for three consecutive years (2008, 2009 & 2010) from The Employees Association of Rajasthan, Jaipur


corporate GOVERNANCE


3 The board of directors and the structure of committees are as on 31.03.2012

We are committed to adhere to the principles of good corporate governance as an integral part of our values, business ethics and practices. The commitment to ethical and lawful business conduct is a fundamental value upheld by our board of directors, the management and the employees, and is the cornerstone to our success.

BOARd OF dIRECTORS ANd COMMITTEES OF BOARd3

The pursuit of corporate excellence is guided and carefully reviewed by a strategic supervisory board of directors. The directors represent the interests of the shareholders of the Company and provide independent guidance and judgement on the facilitation and implementation of policies.

The board reviews the performance of the company on several aspects including its environmental and social performance. Mr Braj Binani, Chairman is a non-executive director in the board. The board consists of an executive director, two independent directors and two non-executive non-independent directors.

As BCL is a group company of Braj Binani group, please refer to the sustainability report 2010-11 of the holding company, Binani Industries Ltd. for the integrated corporate structure and management framework.

To facilitate the review of business operations, the board organizes various committee meetings at regular intervals. The following committees were functional during the reporting year:

Audit CommitteeThe Audit Committee comprises members from the board of directors and complies with the requirements of the Companies Act, 1956. The committee includes three directors, one of whom is a non-independent, non-executive director while the two are independent directors. The committee is responsible for financial reporting, ensuring compliance with accounting standards, reviewing financial policies of the Company and to recommend the appointment of statutory auditors, internal auditors, tax auditors and cost auditors, along with their fees.


The Committee examines in detail the reports of the internal auditors. It also reviews the risk management reports on a quarterly basis. The entire quarterly, unaudited and audited financial results are reviewed by the Committee before submission to the board.

Remuneration Committee Our remuneration committee has been constituted according to the provisions of Schedule XII of the Companies Act, 1956, to recommend or review the remuneration package of the full-time directors, taking into account their qualifications, experience, expertise, contribution and the prevailing levels of remuneration in companies of corresponding size and stature. The current remuneration committee consists of one non-independent non-executive director and two independent directors.

Shareholder/Investor Relations CommitteeThe investor relations committee comprises one non-independent non-executive director and two independent directors. To ensure the prompt disposal of share transfers and to address the dematerialization and rematerialization requests received by the Company. The Committee also looks into various investor complaints and their resolution.

Finance CommitteeThe Board has constituted a committee of directors to oversee financial functions and to avail various facilities including working capital facilities from the banking community. The committee comprises one non-independent non-executive director and two independent directors.

COdE OF EThICAL BUSINESS PRACTICESOur employees are required to follow the principles of ethical behaviour as it forms the foundation for all our actions and policies. We are committed to conducting our business in accordance with applicable laws, rules and regulations and the highest standards of business ethics and ethical conduct. Our Code of Conduct reflects the business practice and principles of behaviour that support this commitment. The Board of Directors is responsible for setting the standards of conduct contained in the code and for updating these standards as appropriate to

corporate GOVERNANCE

“We are committed to conducting our business in accordance with the highest standards of business ethics and ethical conduct. Our Code of Conduct reflects the business practice and principles of behaviour that support this commitment.”


reflect legal and regulatory developments. All our Directors, senior management and employees are required to strictly adhere to the compliance of this Code while performing their duties, functions and responsibilities.

Conflicts of InterestWe give special emphasis to avoid situations wherein personal interests of our employees could conflict with the interest of the Company. While our employees are free to make personal investments and enjoy social relations and normal business courtesies, they must not have any interests that adversely influence the performance of their duties, functions and responsibilities.

Situations wherein employees may have personal interest are reported to the senior management/Board of Directors for necessary action. We have a policy for Prevention of Insider Trading in the shares and securities of the Company. In order to adhere to this principle, the Board of Director mandates the Company Secretary to follow the relevant guidelines prescribed by government/regulatory bodies from time to time.

Precautionary PrincipleAn integrated and clearly structured risk management framework supported by a Risk Management Policy enables us to identify, assess and manage existing and new risks in a planned and coordinated manner with minimum disruption and cost, to protect and preserve

our human, physical and financial assets. The Board and the Audit Committee has the overall responsibility for this process for all subsidiaries, with the Company’s senior management team of each subsidiary taking responsibility for its implementation and upholding the values expressed in the risk management philosophy.


our commitment to STAKEHOLDERS


We work to create the greatest value for our stakeholders and, therefore, understanding their key concerns and issues becomes an integral function of our sustainable development strategy. We strongly believe in transparent and equitable business practices and to accomplish this, engage with our key stakeholders on an on-going basis.

During the reporting period, we organized workshops to identify and prioritize stakeholder concerns. These workshops were attended by all the department heads of our units and moderated by a third party. The exercise helped us formally list all the groups of stakeholders that we engage with during the regular course of conducting our business. We have been using various engagement methods such as customer satisfaction surveys to gauge valuable feedback that provides us vital insight into customer requirements and expectations.

Through the process of prioritization, we have identified our key stakeholder groups as follows:

Binani Cement Limited

Our Employees

Government and Regulatory

Agencies

Our Shareholders

Our Local Communities

Our Business Partners

Our Customers

and Dealers


STAKEHOLDER GROUP ENGAGEMENT FREQUENCY & MODECOVERAGE OF KEY CONCERN ISSUES IN THE REPORT

Our Employees Daily review meetings, Monthly and Quarterly Departmental meetings, Quarterly Corporate Management Committee meetings, Employee satisfaction surveys and Annual appraisal feedback, Suggestion box facility, Exit interviews.

Please refer section: Our Employees at page 56.

Our Local Communities On regular basis; via personal interaction or through local NGOs, Company-sponsored awareness-generation events.

Please refer section: The Social Dimension at page 68.

Our Customers and dealers Daily, personal interaction, emails, letters, Regular technical training workshops for masons and engineers, Distribution of brochures, pamphlets and literature, customer satisfaction surveys, mobile concrete testing vans.

Please refer section: Sustainable Products and Satisfied Customers at page 64.

Our Business Partners (Suppliers, Contractors and Transporters)

Daily, personal interaction, emails, vendor registration process, satisfaction surveys, memos, registration forms, feedback forms, etc.

Please refer section: EconomicPerformance at page 28, Sustainable Products and Satisfied Customers atpage 64, Code of Ethics and Business Conduct at page 22, Respect for Human Rights at page 63.

Government & Regulatory Agencies

Six monthly and annual compliance reports, on need basis, company website, annual general meeting.

Please refer section: Our Emphasis on Risk and Opportunities Sustainability at page 12.

our commitment to STAKEHOLDERS

We engage with our stakeholder groups frequently through various interactive mechanisms as highlighted below:


whAT MATTERS TO OUR STAkEhOLdERS, MATTERS TO USThe Company has focused to identify the key material issues significant to operations and our stakeholders. The approach has been to recognize the potential improvement areas and understand the issues viewed by the society as being particularly critical.

Further, the Company has integrated these sustainability risks and opportunities into its broad business risk management system. The issues prioritized during the workshop by our significant stakeholders are presented in the table below:

TABLE 2Index of material issues

S. NO. ECONOMIC ISSUES ENVIRONMENTAL ISSUES SOCIAL ISSUES

1. Resource conservation Water conservation Employment generation

2. Increasing input costs Air emissionsMeeting employee expectations

3. Managing competition Managing energyEnhance social development action


ECONOMIC PERFORMANCE“Our continued success depends on our ability to establish and maintain positive relationships not only with our customers, colleagues and shareholders but also with our business partners, suppliers and the wider communities inwhich we work”.


economic PERFORMANCE


The business scenario this year posed significant challenges for us. On one hand we continued to improve our operational performance with an increase in cement production by 3.4% compared to FY 2009-10 and also an increase in the overall cement sale by 2.7%. We sold 5.4 million tonnes of cement compared to 5.3 million tonnes in the previous year.

To meet the growth in production, captive power generation also increased during FY 2010-11 at 305.7 million KWh (net) compared to 244.9 million KWh in FY 2009-10. On the other hand, due to the overarching policy factors, we faced serious challenges in realizing the full financial value of our improved economic performance. These factors included: lower realization on cement sale, increased costs of fuel, raw material and logistics and an increase in excise duty from 8% to 10%. During the year, the Company registered a net profit (before tax) of INR 822.7 million compared to INR 4,080.0 million in the previous year. However, from January 2011 onwards, there have been signs of improvement in cement prices resulting in an improved bottom line4.

4 BCL Annual Report FY 2010-11


economic PERFORMANCE

TABLE 3 Economic value generated and distributed in the reporting period (in million INR)

DESCRIPTION OF ECONOMIC VALUE AMOUNT

1) direct Economic value Generated (Revenue)

17433.47

2) Economic value distributed

a) Operating Costs 8670.35

b) Employee benefits and wages 412.68

c) Administration and selling expenses

5498.36

d) Interest and finance charges (inclusive of prior period)

1034.36

e) depreciation and amortization 995.03

f) Payment to providers of capital 471.50

As a responsible corporate citizen, we aim to create meaningful economic engagement with the local community. We understand the importance of procuring major input material from within the country and therefore obtain around 80% of our

material from domestic suppliers. This makes good business sense and it also has a pronounced positive impact on the local economy with regard to the generation of employment opportunities and avenues for business.

It also enhances the demand of associated materials resulting in increased upstream and downstream investment and employment opportunities, thereby, creating an economic multiplier effect.

Our engagement with local communities is designed to empower them, which enhances prosperity and their standard of living and at the same time benefit our business.


A snapshot of the material purchased from our suppliers (both domestic and international) is provided below:

TABLE 4 Monetary value of material purchased from our suppliers (in million INR)

SUPPLIER DESCRIPTION AMOUNT PERCENTAGE SHARE

Local suppliers (from within Rajasthan) 221.6 29%

Domestic suppliers (outside Rajasthan but within India)

404.9 53%

International suppliers 140.5 18%

Total 767.1 100%

“Despite challenging global business environment for the fiscal year 2010-11, both our production capacity and sales volume increased by 3.4% and 2.7% YoY respectively.“


ENVIRONMENTAL FOOTPRINTModern society is placing an increasingly high value on sustaining the physical environment and nurturing people and communities.

In keeping with our deep commitment to environment protection and the responsible utilization of natural resources, the environment performance of our units is benchmarked to stringent norms and regulations, employing efficient pollution control and strategic environment management initiatives.


environmental FOOTPRINT


In keeping with our deep commitment to environment protection and the responsible utilization of natural resources, the environment performance of our units is benchmarked to stringent norms and regulations, employing efficient pollution control and strategic environment management initiatives. We focus on monitoring and controlling air emissions; managing land and conserving biodiversity within and around sites; managing and optimizing the raw material and water consumed in our operations; reducing and recycling waste and mitigating any disturbance to the local environment during the entire gamut of our operational activities.

The details on each of these aspects are provided in the following sections.

RESPONSIBLE RESOURCE UTILIzATION The primary input materials consumed during the process of cement production comprise – limestone, gypsum, POP waste, silica, iron ore, red ochre and fly ash. Associated materials such as lubricants, inks, explosives and packaging material are also utilised.

TABLE 5Primary and associated material consumption (in tons)

PRIMARY MATERIAL 2008-09 2009-10 2010-11

Limestone 6322876 6689724 6828791

Gypsum 266367.7 320141 329594

POP waste 12644.3 13149.4 15480.4Silica Sand 9439 3315 4839Iron Ore 2909 2299 1170Red Ochre 0 347 513.3Fly Ash 418694 544540 512649

Sub Total 7032930 7573515 7693036

ASSOCIATED PROCESS MATERIAL

2008-09 2009-10 2010-11

Lubricants 188.6 167.8 152.3Explosives 1245 770.3 1460PP Bags 5937 7332.5 7703.4

Sub Total 7374 8275 9320

Total 7040304 7581790 7702356Note: In 2008-09, the values of fly ash and gypsum are inclusive of the trial run at the Sikar unit


The major raw material consumed in our manufacturing process is the excavated limestone for which we follow efficient consumption practices that are targeted to optimize the life of our mines. We understand the importance of conserving environmental resources. In order to reduce our impact, we employ scientific methods of mining with state-of-the-art technology, which also improves the operational efficiency of our system. We have been consistently reducing our clinker-to-cement ratio (increasing the ratio of additives) for sustainable extraction of natural resources.

We take privilege to report that the specific material consumption has been reducing year-on-year for the past three years as shown in the graph. This decreasing trend can be attributed to the various resource conservation and efficiency enhancement initiatives being implemented at our plants. More details on these initiatives are presented in the later sections.

There was an increase in the absolute consumption of materials from FY 2008-09 to 2009-10, which is attributed to the fact that our clinker grinding plant at Neem ka Thana became operational in the middle of FY 2008-09.

Cement manufacturers like us play an essential role in promoting industrial ecology (a system in which companies in different industries exchange materials so that the waste of one industry becomes the feedstock for another) by building on current practices such as using fly ash and blast furnace slag as cementitious materials and using alternative fuels that are predominantly waste or by-products from industrial, domestic, agricultural processes. In line with the Industry best practices, we strive to use as much of recycled or waste material as possible, such as fly ash and POP waste, as input material along with gypsum.

We were the first Company in India to successfully utilize the high carbon fly ash generated from our captive power plant in an environmentally sound manner, thus eliminating the problems associated with fly ash disposal in landfills.

A system was designed and developed to feed the fly ash into the clinker cooler from where it is carried along with the gases into the calciner and finally into the kiln, thus allowing the carbon content to combust and generate heat for the process. The residual ash from the

process forms a part of the clinker.


2008-09

1.61

2009-10

1.44

2010-11

1.41

Trend of Specific Material Consumption

(per ton of cement produced)

Figure 2


The quantity of recycled material consumed in 2010-11 (6.86%) was slightly less than that used in 2009-10 (7.36%) although higher than the recycled quantity consumed in 2008-09 (6.13%). This is due to the fact that the PPC production, where recycled material is used, was less than the previous year due to lower market demand.

RESPONSIBLE CONSUMPTION OF ENERGy Cement production is an energy-intensive process, wherein the energy cost constitutes about 40% of the total manufacturing cost. The cement industry has been identified as one of the nine most energy-intensive sectors by the Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India, under the National Mission for Enhanced Energy Efficiency (NMEEE). The sector also falls under the ambit of the new and upcoming regulations of Perform, Achieve & Trade (PAT), and Renewable Purchase Obligations (RPO). All these factors underline the importance of the energy aspects of our operations.

5 TERI Energy Directory and Data Yearbook, 2009

2008-09

431.33

2009-10

557.68

2010-11

528.12

quantity of Recycled Materials Consumed

(in kilo tons)

Figure 3


While our absolute direct energy consumption pattern has increased in FY 2010-11 compared to 2009-10 and 2008-09 (17872.50 TJ / 4964583.33 MWh compared to 17393.20 TJ / 4831444.44 MWh and 16422.70 TJ / 4561861.11 MWh, respectively) due to an increase in production, the Specific Energy Consumption has been decreasing year-on-year owing to energy conservation measures being taken across the organization.

We employ the dry process of manufacturing which is more energy efficient than the wet/semi-wet/semi-dry processes. We have deployed automated computer controls which help to optimize the combustion process and conditions. Initiatives such as the use of high efficiency motors and drives along with efficient kiln technology, work towards conserving energy.

Our efforts have been recognised by the leading industry association in India, the Confederation of Indian Industry (CII), who rated us an ‘Energy Efficient Unit’ and conferred on us the National Award for Excellence in Energy Management, 2009.

2008-09

3.97

2009-10

3.39

2010-11

3.35

Specific Energy Consumption

(in GJ/T of cement)

Figure 4

2008-09

144.35165.83

393.50

2009-10 2010-11

Alternative Fuel Consumption

(in TJ)

Figure 5

2008-09

606.12

500.25407.23

2009-10 2010-11

Total Electrical Energy Purchased

(in TJ)

Figure 6



We almost doubled the consumption of alternative fuels from 2009-10 to 2010-11 that bears testimony to our commitment towards reducing our dependence on fossil fuels. The electricity purchased from the grid has also shown a decreasing trend over the last three years. Moreover, we are producing power from our own captive power plant which gives us control over the quantity and quality of fuel consumption.

SUSTAINING ENERGy-EFFICIENT INITIATIvESThe trends depicted above have been realized only with the effective implementation of the energy efficiency and environment protection measures that we have heavily invested in to observe strict norms across operations. Thus, through these initiatives, we adhere to the best eco-friendly practices and promote energy conservation of our operations, which forms a part of our strategy to reduce our CO

2 emissions.

We look forward to more opportunities for long-term energy savings and efficiency improvements for environment protection.

The most important energy efficiency initiatives implemented at our cement unit during the reporting period include – the installation of energy-saving, insulated bricks in kiln; LV technology in the mill and variable speed drives; the installation of aerodynamic high-efficiency

blades to reduce auxiliary consumption; sonic soot blower to maintain boiler stability and increased consumption of biomass at our captive power plant. The cumulative energy savings from all the initiatives undertaken throughout the operations is to the tune of 363706 GJ (101029.44 MWh). The graph depicts the break-up of energy saving initiatives across the different sections of our plant operations.

Annual Energy Savings Resulting from different Initiatives

Figure 7

0.3%

16.8%

82.8%

At Cement PlantAt CPPOthers

Our consistent efforts in this domain have been recognized by the National Council for Cement and Building Materials, Government of India, who have conferred on us the National Awards for “Best Thermal Energy Performance” and “Best Electrical Energy Performance” in 2009-10.

“Continuous efforts in energy conservation have resulted in savings to the tune of 3,63,706 GJ”.


wATER MANAGEMENT STRATEGy We accord great importance to water as a precious natural resource. In particular, because we are located in the desert state of Rajasthan, the conservation of water is a core issue for our operations. We have multiple systems in place to reduce our water consumption. These include the adoption of water-efficient technologies; the recycling and reuse of water and the augmentation of groundwater reserve by means of rainwater harvesting. Due to absence of any surface water body in the area, ground water is our primary source of water. We diligently monitor our water consumption, which helps us optimize our usage of fresh water in the production process. Over the past three years, despite increasing production levels, our absolute water withdrawal has been on a declining trend. The reduction in fresh water consumption is mainly attributed to our conversion from using water-cooled condensers to air-cooled condensers (3800 m3/d water saving) for which we were required to compromise on the output of our captive power plant and make an investment of INR 2.5 Million. This initiative also resulted in an equivalent reduction in wastewater generation.

OUR wATER POLICyWe accord immense importance to the practice of water conservation in our operations and have formulated a water management strategy that has the following objectives:

h Annual water conservation targets are set, measured and revised. In the reporting year, we exceeded our annual specific water consumption reduction target for the Sirohi unit (target was set at 3% and the actual achieved was 3.6%).

h Managing a consistent water supply from the bore wells even in the peak of summer by replenishing the groundwater resources by way of rainwater harvesting and recharge. This ensures uninterrupted operations of both the cement and captive power plants without affecting availability for the local people.

h Adopting the best water efficient technologies and practices in our operations by benchmarking our systems with national and international norms.

In addition to rainwater harvesting, we have also focused in carrying out water management initiatives within and around our plant to ensure that our operations do not pose any negative impact on the groundwater table.

We have effluent treatment systems for treating cooling water rejects. The treated water is recycled back to the system, which reduces our fresh water requirement. Sewage treatment plants in our residential townships treat the sewage, which is completely reused for green belt development following our zero discharge policy. This ensures that our systems help protect the environment from the discharge of wastewater.


“By adopting best available technology coupled with our water conservation initiatives our specific water consumption has decreased by approximately 43% over the last two years, and 20% from the preceding year.”


2008-09

1.5

1.0

0.8

2009-10 2010-11

decline in water withdrawal for Plant Operations

(million m3)

Figure 8

2008-09

0.35

0.190.15

2009-10 2010-11

Decline in Specific Water Consumption

(in m3/t)

Figure 9

We are pleased to share that as a result of our implementing our water conservation strategy, we have been able to decrease our specific water consumption value by approximately 43% over the last two years, and 20% from the preceding year. This resulted from the installation of a side stream filter at the cooling tower to reduce blow down losses; the erection of sheets on sump walls of the cooling tower to reduce drift losses; the use of pond ash in PPC production and the installation of a more efficient spill back nozzle spray system in the kiln.

By implementing different water saving initiatives, we have been able to save 26,000m3 of water during the reporting period.

As part of our sustainability initiatives and with our belief in the 3R theory of Reduce, Recycle and Reuse, we utilize recycled water for horticulture and dust suppression activities. The quantum of water recycled has consistently increased in the past years: during FY 2008-09, 2009-10 and 2010-11, we recycled 89,958 m3, 99655 m3 and 146,310 m3 of waste water respectively.

The ratio of water recycled as against the water withdrawn has been increasing every year as depicted in the adjoining graph.


2008-09

9.87 9.92

10.95

2009-10 2010-11

Percentage Increase of Recycled water to water withdrawal Ratio

Figure 10

The ratio of water recycled as against the water withdrawn has been increasing every year as depicted in the adjoining graph.

2008-09

1.55

1.80 1.97

2009-10 2010-11

Increase In Groundwater Levels due to Rwh Initiatives

(in million cu metres)

Figure 11

We were conferred the “Best Water Efficient Unit Award”, the national award for excellence in water management, for three consecutive years by the Confederation of Indian Industry.


wATER IMPACT

The impact of groundwater abstraction by our units is assessed on an annual basis by a third party with expertise in hydro-geological studies. The study has concluded that there is no negative impact of water abstraction on the groundwater regime of the area due to our operations.

As a result of our RWH programme, the trend of groundwater levels in bore wells, scientifically monitored on a quarterly basis has indicated an increase over the last five years.


“First Indian Cement Company to receive the prestigious ITC-CII Best Water Efficient Unit award”.

NATIONwIdE AwARENESS CAMPAIGNS ON wATER CONSERvATION & RAIN wATER hARvESTING

hIGhLIGhTS OF ThE RAINwATER hARvESTING INITIATIvE

The estimated recharge of groundwater resources carried out by us is more than the amount of water that we withdraw. The creation of groundwater recharge totals 1.97 million cu metre (MCM) per annum whereas the total annual withdrawal is less than 1.0 MCM.

Construction of 32 rain water harvesting structures (check dams, annicut, rooftop RWH, injection wells and pond) so far, in and around our plant and township.

“First Indian Cement Company to receive the prestigious CII Best Water Efficient Unit award”.



“Our GHG emissions mapping has shown positive trend in emission reduction”.

We engage with our customers through media interactions to create awareness on water conservation. Mason and contractor meetings are organised periodically to provide customers with adequate information on various aspects related to the use and application of cement. Since the application of cement involves the consumption of water, these programmes deal mainly with optimum mix design and post-construction curing to achieve the best results while using the optimum quantity of cement and water. Audio-visuals and practical demonstrations are also provided through mobile testing vans available at major stations.

Our employees are provided specialized training on water harvesting and groundwater recharge. Pamphlets are distributed in areas frequented by workers, colony residents and truck operators, and movies (Jal hai to Kal hai) are showcased to create sensitization.

We generate awareness among the local people about rainwater harvesting and various government schemes aimed at water conservation such as lift irrigation, drip irrigation and farm pond construction. We also generate awareness at the school level by organizing exhibitions during various environment related events.


REdUCING OUR CARBON FOOTPRINTCement production causes approximately 5% of global man-made CO

2 emissions. The total GHG

emissions from the Indian cement sector are estimated to be 129.92 million tCO

2 per annum,

which contributes to 6.8% of India’s total GHG emissions . The GHG emissions from the cement sector are expected to rise to 470 million tonnes in 20307.

We are, therefore, taking measures to reduce our carbon emissions. We are committed to the Cement Sustainability Initiative principles and have taken the following steps to reduce our impact on the environment by capping our CO

2 emissions:

h Improving our energy conservation and efficiency performance

h Increasing the use of alternative fuels and carbon neutral bio-fuels

h Substituting clinker with cementitious material – fly ash

h Capturing and storing carbon by large-scale tree plantation

We have undertaken a comprehensive exercise to measure our carbon footprint. With the help of a third party specialist, we are mapping our direct and indirect emissions including process emissions. Our scope 1 emissions contribute the majority of the total GHG emissions as we operate captive power plants to generate the power we use.

TABLE 7 Break-up of GHG emissions (defined as per wRI wBCSd GhG protocol)

EMISSION TYPE / YEAR

2008-09 2009-10 2010-11

Scope 1 3659317.2 3847645.4 4088045.3

Scope 2 141590.8 124371 101242.6

Scope 38 99727.7 114006.1 99417.5

Total (tCO

2) 3900635.7 4086022.6 4288705.4

2008-09

0.91

0.770.78

2009-10 2010-11

Specific GHG Emissions

(in tCO2/t)

Figure 12

Our specific GHG emissions have reduced by 13.34% over the last two years as a result of following initiatives though there has been an increase in production volume:

h We have increased the use of alternative fuels to 63.32% in 2009 and 57.86% in 2010 from 2008..

h We have reduced the clinker content of our cement over the years and have been making consistent efforts to improve it, which is a challenge due to the limited market ac¬ceptance for using clinker substitutes in cement.

6 India – Greenhouse Gas Emissions 2007, published by Ministry of Environment & Forests, GOI, May 20107 ICT’s contribution to India’s NAPCC – Report by CII, 20108 Scope 3 emission inventory does not include data of Neem Ka Thana unit, which is negligible


In order to sequester carbon, we have covered around 210 ha of land with large-scale tree plantation within and around the plant premises.

Besides this, we regularly conduct training and awareness programmes towards the reduction of carbon emissions. We are also conducting a

nationwide awareness campaign on promoting ‘Tree Plantation’.

We believe that in the years to come, significant prospects for improvement exist. We endeavour to extend our full efforts in the future in realising these opportunities.

CONSCIOUS MANAGEMENT OF AIR ENvIRONMENT – BEyONd COMPLIANCEWe have been regularly monitoring the air emissions from the stacks of our cement and captive power plants against the stipulated norms to control air quality.

Our investment in state-of-the-art pollution control systems (ESPs, bag filters, etc.) is aimed at achieving optimal performance while ensuring that our emission levels remain significantly below the regulatory norms.

We have made ongoing and concerted efforts to reduce the quantity of particulate matter from the stacks on a year-on-year basis, even though our production has increased.



2008-09

363.39

325.99317.88

2009-10 2010-11

Total Particulate Matter from Unit Stacks

(in tons)

Figure 13

The decreasing emission trend is attributed to the increased use of cleaner fuel (low sulphur and ash content), improved feedstock mechanism and energy efficiency. The particulate matter emissions from our process reduced and showed an improvement of more than 12% over the last two years and approximately 2.5% in the last year.

We were rated as India’s best cement company in terms of ‘minimum particulate emissions’ in a study conducted by the Centre for Science and Environment, New Delhi, during 2005-06. In line with the Cement Sustainability Initiative, we have been continuously monitoring and reducing our air emissions. We use conveyor belts to transport raw material from our mines to avoid road transport. This method reduces our impact on the environment that includes noise, congestion and vehicular emissions.

There is a system that regularly monitors the ambient air quality with respect to particulate matter, sulphur di-oxide (SO

x) and nitrogen oxides

(NOx). The compliance reports are being submitted to the Regulatory Authority on a quarterly basis and are also disclosed on our website.

During the reporting period, the average ambient concentrations of SO

x and NOx were

6.04 microgram/m3 and 6.26 microgram/m3, respectively. We are performing better than the

prescribed pollution control norms (National Ambient Air Quality Standards, 2009) and there has been no incidence of non-compliance during this period. In the reporting year, we were presented with the “National Award for Prevention of Pollution” for 2008-09 by the Ministry of Environment and Forests, Government of India.

To ensure that our operations have no impact on the depletion of the ozone layer, we have developed and implemented a comprehensive plan for the phase out of ODS with the following salient features:

h Replace air conditioners (based on R-12) with R-22 refrigerant, well before the phasing out stipulation

h All newly purchased equipment to be free of chlorofluorocarbon (CFC)

h Use of gas recovery kits to avoid any leakages and loss of refrigerant during refilling or maintenance activities

The total emission of Ozone Depleting Substances during the reporting period was 13.03 Kg CFC-11equivalent.


dILIGENT wASTE MANAGEMENT In our pursuit to reduce environmental impacts, we practice the following methods for waste management:

h Minim izing waste: Minimising waste: We understand that large quantities of generated waste translate to the misuse of resources and therefore follow clean production principles by recycling all the spent material, as much as possible, within our operations.

h Maximising reuse/recycle: The fly ash generated from our captive power plant is utilized (100%) in the production of PPC at our cement plant. We segregate the waste at source to ensure the maximum possible recycle/reuse. We have been operating a zero waste-water discharge unit since inception. All the treated water from ETP/STP is used within our premises.

h Using waste material as raw material/fuel: We utilize combustible wastes from nearby industries in our kilns after taking due permission from the regulatory authorities. We also source fly ash and slag from other units in our vicinity for use as cementitious material.

h Constant monitoring of our waste generation figures.

In order to ensure compliance with the legal regulations and norms, we appoint only government approved/authorized recyclers/vendors for the disposal of hazardous waste in an environment-friendly and sound manner as per norms. The biomedical waste from our health centre is disposed of in an onsite approved incinerator.



“The mines at Amli have been conferred the title ‘Overall Best Performance (Hilly Terrain)’ at the 31st Annual Mines Safety Week held under Directorate of Mines Safety in 2007 and the second prize for “Overall Performance’ at the 18th Mines Environment and Mineral Conservation Week in 2008”.

Here is a summary of the various types, quantities and disposal methods of the generated waste in the reporting period:

TABLE 8waste quantity, category and disposal method, Fy 2010-11(*sale refers to sale of waste to a government authorized vendor)

S. NO.CATEGORY & NAME OF DISPOSED WASTE

METHOD OF DISPOSAL

UNITS QUANTITY

HAZARDOUS WASTE

1 Lubricants Sale* KL 267

2 Used Oil/Transformer Oil Sale MT 35.2

3 Bio-Medical waste Incineration MT 17.9

4 Batteries Sale Numbers 1.9

5 E-waste Sale MT 0.2

NON-HAZARDOUS

6 MS Scrap Sale MT 728.6

7 Ferrous scrap Sale MT 0.1

8 Alloy Steel Sale MT 196.8

9 Torn PP Bags Sale Numbers 202154

10 PP waste/wrappers Sale MT 106.2

11 Refractory Sale MT 1219.2

12 Empty drums / cane Sale Numbers 1477

13 wooden scrap Sale MT 88.1

14 Screen reject Earmarked dumpsite

MT 457177

15 Face reject Earmarked dumpsite

MT 1851857


MANAGING BIOdIvERSITy AROUNd OUR MINES Our limestone mines at Amli and Thandiberi are located at a distance of 2 km and 7 km, respectively, from our plant at Sirohi. Thus, we are able to minimize the environmental and economic impacts of the long-distance transportation of our raw material on the environment and biodiversity.

TABLE 9details of opencast limestone mines at Sirohi, Rajasthan

Sr. NO.

NAME OF MINE

NEARBY VILLAGES

OPERATIONAL AREA (HECTARES)

LIMESTONE OUTPUT IN FY 2010-11 (MT)

1 Thandiberi Villages Thandiberi & Sabela

254.1 623655

2 Amli Villages Amli & Malap

468.7 6205495

There are no protected areas near our plants and mines.

We are committed to the responsible management and protection of the biodiversity. We have carried out detailed Environmental Impact Assessment Studies and have developed and implemented Environmental Management Plans (including the Biodiversity Management Plan) before the setting up and expansion of our projects. The biodiversity management plan prepared for our mines is aimed at preservation during the operation phase and restoration activities post-closure of the mines.

Usage of Mining Lease Area (in hectares) during the Reporting Period

Figure 14

582.47

2616.35 9.5 88.5

Undisturbed Area

Area to be excavated

Overburden dump within mining lease area

Infrastructure including roads

Green belt development

(in hectares)

The mining lease area is a hilly, barren land with sparse vegetation in the form of bushes and widely scattered trees, where common, native species of flora and fauna are found. We employ eco-friendly mining activities as per the government-approved mining plan, which minimises the potential negative impacts of our operations.

The mines at Amli have been conferred the title “Overall Best Performance (Hilly Terrain)” at the 31st Annual Mines Safety Week held under Directorate of Mines Safety in 2007 and the second prize for “Overall Performance’ at the 18th Mines Environment and Mineral Conservation Week in 2008.



Our effort has always been to make our mining operations environmental friendly by using state-of-the-art and scientific mining techniques, maximising groundwater recharge through rainwater harvesting, and carrying out extensive green-belt plantation.

Waste dumps near our mining sites are benched and planted with native species of grass, shrubs and trees. There are no toxic or hazardous elements present in the face and screen rejects of our mines.

We propose to rehabilitate the closed mine benches into an ecologically vibrant and aesthetic area through extensive ongoing and future plantations. We have developed around 23.0 ha of thick green belt at our mines which will be augmented to 90 ha by the end of the life of both the mines.

“The biodiversity management plan prepared for our mines is aimed at preservation during the operation phase and restoration activities post-closure of the mines”.



TABLE 10Mitigation measures adopted for environment management in our mines

DUST CONTROL & MANAGEMENT

Provision of in-built water injection system during drilling; round-the-clock availability of water sprinkling tankers; tar paving of road between mines; development of new road to reduce average lead distance from mines to crusher by around 600m resulting in fuel saving as well as water saving; provision of bag filter dust extraction system in all crusher circuits; atomized water spraying arrangements at crusher hopper; provision of mechanical sweeper for cleaning of floor at mines workshop and crusher; use of Hydraulic Rock Breaker for secondary breaking of oversised material avoiding dust generation in secondary blasting

NOISE CONTROL & MANAGEMENT

Use of Nonels (non-electric shock tube detonators) and trunk line delay to control noise during blasting; introduction of bulk mixing and delivery system to enable manufacturing of ANFO for deep hole blasting resulting in increased safety in storage, transport and handling of the explosive

CONTROL OF GROUND VIBRATIONS

Proper selection of drilling and blasting parameters like spacing, burden, sub-grade drilling, mixing of ANFO, delay timing, etc.; minimum consumption of high-energy explosive; use of Nonels and Down the hole, TLDs; monitoring of ground vibrations from blasts through external agencies like Indian Bureau of Mines, Government of India

STORM WATER MANAGEMENT

The rainwater from mines is directed to the naturally occurring channels in the area; water in the southern area of mines is artificially recharged into region near village Malap; the drains and check dams are regularly de-silted and properly maintained, especially during the rainy season

WASTE WATER MANAGEMENT

Waste water from mine workshop is treated to conform to the relevant standards before it is discharged for plantation; domestic waste water at mines is disposed in septic tank; colony domestic waste water is treated in sewage treatment plant and used for horticulture activities in and around the mines

GREEN BELT DEVELOPMENT

Green belt is being developed under the ambit of the Environment Management Plan in a phased approach, along the mine periphery and on the waste land; plantation of more than 8000 trees of various native species including fruit-bearing trees has been accomplished in the reporting period adding to a total of 1.37 lakh tress; this green belt also aids in attracting the local fauna, in an otherwise barren landscape


“INR 26 million invested for technological up gradation towards enhancing environmental performance”.

OUR INvESTMENTS IN ENvIRONMENT PROTECTION As part of our commitment to minimise our ecological footprint, we have invested in conservation practices, new and resource efficient technologies and programmes on generating awareness amongst employees, communities and the general public. Our investments in environmental management contribute towards optimizing operating costs and prepare us to meet the uncertainties of the future global environment. All our units are certified to the ISO 9001, ISO 14001 and OHSAS 18001 management systems covering metrics related to quality, environment,

occupational health and safety, and related internal as well as external audits conducted at regular intervals. We proactively engage various reputed, independent consultants to undertake mapping studies like carbon footprinting, geo-hydrology impact mapping and biodiversity mapping. The recommendations and action plans developed as a result of these studies are executed through our dedicated Environment Management Cells at all units.

We have invested a total of INR 26 million during the reporting period towards setting up environmental safeguards and their maintenance and improvements in our facilities.


our EMPLOYEES


Our employees are our most valuable asset and the force behind our progress. We thus invest heavily into recruiting the best talent and provide them the best in class training, benefits and facilities. Our approach is to take complete care of our employees during the entire life cycle within the organisation that ensures a happy and healthy workforce.

We are an equal opportunity employer and make no discrimination based on caste, community, race, tribe, colour and gender. During the reporting period, our permanent full-time employees at our units numbered 744.

TABLE 11

workforce break-up by gender and employee category(*Contractual workers reported only for Sikar unit)

FY 2008-09 FY 2009-10 FY 2010-11

Employee category Male Female Male Female Male Female

Senior management 35 - 33 - 31 -

Middle management 63 2 65 2 50 -

Junior management 453 - 422 - 412 -

Permanent workers 179 - 179 - 195 -

Probationers - - - - - -

GETs/PGETs 4 - 36 - 46 -

Apprentices 12 - 3 - 10 -

Contractual workers* 241 - 241 - 265 -

TABLE 12 workforce break-up by age group for the reporting period (*The information for contractual labour is not recorded)

EMPLOYEE CATEGORY* MEN

< 30 yrs 30– 50 yrs >50 yrs

Senior management - 16 15

Middle management 1 40 9

Junior management 151 245 16

Permanent workers 41 149 5

Probationers - - -

GETs/ PGETs/ PGT /GT 46 - -

Apprentices 10 - -


COdE OF EThICS ANd BUSINESS CONdUCTWe have a consistent framework that provides direction and clarification on the conduct of our daily business. In order to avoid any conflict of interest and maintain accountability, the code of conduct is applied throughout Braj Binani Group.

EMPLOyEE wELFARETo provide our employees with a secure and enriching experience, we have contribution and benefit policies that safeguard their interests. These policies are:

a) Defined Contribution Plans: During the reporting period, we invested INR 25.08 million in the profit and loss account because of defined contribution plans that is, Employer’s Contribution to Provident Fund and Employees’ State Insurance Scheme of India (ESIC), a multidimensional social security system tailored to provide socio-economic protection to the employees and their dependants covered under the scheme.

b) Defined Benefit Plans: We provide defined benefit plans to our employees, the liability of which is determined on the basis of an actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in full in the profit and loss account for the period in which they occur.

Other benefits for employees include: Medical facilities, insurance (both permanent and contractual), and provision of salary-in-advance for meeting needs such as: purchase of home, higher education expenses, marriage expenses of employee’s children, and medical expenses incurred by employees or their families.

vALUING OUR LONG-STANdING RELATIONShIPS

We have devised a celebratory concept of ‘Retirement Memento’ for our retiring employees who have contributed their skill and talent during their valuable association with us. Under this scheme, the retiring employees are presented with a silver memento as a token of our gratitude and pride in their long-serving relationship with us.

In addition, in order to motivate and retain our employees, we have introduced a “Loyalty Award” programme for rewarding their commitment and loyalty.

EMPOwERING OUR wORkFORCEConstant improvement and upgradation of skills is essential for continued excellence in performance. Thus, training, aimed at continuous employee development and enrichment, is a focal area for us. A full-fledged training cell has been set up to cater to specific training needs through the organisation of various internal and external training programmes on technical and behavioural aspects across our units. The cell also organises focused sessions to raise awareness levels of various target groups of employees through concepts such as ‘Friday’ talks, ‘Tool Box’ talks, team presentations and safety trainings.

our EMPLOYEES


Our key training associates for imparting environment, health and safety related training, apart from in-house experts, are the National Safety Council, Mumbai; St. John Ambulance, Jaipur; DNV, Kolkata; Confederation of Indian Industry, New Delhi & Hyderabad; Engineering Staff College, Hyderabad; and RTC, Nimbahera, Rajasthan. In the FY 2010-11, our employees underwent an average of 3.8 man-days of training.

While we have provided a well-designed career development path for our employees, we also seek their constant constructive feedback to gauge our performance and areas of improvement. We have instituted a structured ‘annual performance management system’ to review employee performance, identify competency levels and initiate customised developmental processes. The appraisal year extends from April to March for the management and July to June for the workmen category. The appraisal covers various aspects including technical knowledge and skills, human relation skills, conceptual skills and other behavioural aspects of the employee. The ‘Key Result Areas’ of each managerial employee are set at the beginning of the financial year and reviewed every six months.

EqUAL OPPORTUNITIES FOR ALLWe address, with sincerity, any reported instance of discrimination and encourage our employees to report any such instances. To settle employee discrimination (if any), we have a formal system for taking prompt action. During the reporting period, there was no reported case of discrimination.

Our remuneration policy follows a standard salary structure and selected candidates are offered a salary package based on their qualifications, competence, experience and fitment norms as specified. There are no separate salary structures for male and female candidates and the principle of equality is adhered to with respect to all eligible candidates. The salary structures are reviewed as per business needs and market surveys that are amended through a review process administered by the corporate office.

“In the FY 2010-11, our employees underwent an average of 3.8 man-days of training”.


GRIEvANCE REdRESSAL MEChANISMOur management is sincerely concerned with the genuine grievances of the employees, as we believe that employee grievances are a manifestation of their dissatisfaction against their working conditions and managerial decisions. Keeping this in view, a formal grievance mechanism has been introduced.

Objective h To settle grievances of the employees

in the shortest possible time and at the lowest possible level of authority

h To provide for various platforms (including discussion with the top management) so that aggrieved employees derive the satisfaction of seeking redressal, if required, even from the highest level of authority

Scope and coverageThe procedure covers all employees of the Company up to the level of officer. Executives at higher levels may take up their grievances, if any, with their reporting officer. Grievances, for the purpose of this procedure, mean individual grievances, and the matters under the scope of procedure that can be invoked by an aggrieved employee could be connected to issues such as: salary payment, recovery of dues, working conditions, leave, residential quarters, medical facilities, educational facilities, non-extension of benefits, transfer, and other similar issues.

EMPLOyEE RETENTIONIn today’s scenario, attrition is a common problem faced by companies across various sectors. The attrition during the reporting period was approximately 21% across all levels. At the senior management level it was a negligible 0.53%.

To control employee turnover rate, we are focusing on enhancing our employee outreach.

FACILITATING A SAFE wORkPLACE Workplace safety is a priority issue across all our operations. We are committed to generate awareness on safety practices and to encourage our people to take appropriate and timely preventive actions. This includes establishing a strong connection right at the start to motivate our new employees to achieve excellence in workplace safety that results in the prevention of injuries, illnesses and fatalities in the working community. Our safety management system is developed on the OHSAS 18001 standard and continually seeks to identify, evaluate and mitigate major hazards and risks across our operations.

We have formed different committees to ensure a safe and secure environment at our units. These committees include Occupational Health & Safety (OHS) and Hazard Identification and Risk Analysis (HIRA). The OHS committee is responsible for occupational health and safety, while the HIRA committee identifies the processes susceptible to hazardous risks to ensure timely and preventive action and thereby promote employee safety. These committees cover 100% of our workforce.

our EMPLOYEES


The ‘EMPLOYEE OF THE MONTH’ award goes to employees who give the best suggestion for improving the health and safety or the quality of life of the people at the workplace. In addition, managing safety at the workplace is an essential part of our employees’ annual performance appraisal system wherein achieving personal safety goals also forms, among other parameters, the basis for promotions, higher job responsibilities and increments.

Both our operating units achieved zero reportable injuries . There has also been a decline in the incidence of near misses from 41 to 32 over the last year.

We also have a canteen committee, which monitors the quality of the prepared food, the distribution pattern of employee meals and the hygiene conditions of the canteen premises.

9 Permanent workforce

Operation of hIRA Procedures

Figure 15

Feedback Reporting Structure

TOP MANAGEMENT

SAFETy STEwARdS

hEAd - OhS COMMITTEEMEdICAL OFFICERMGMT. APPOINTEE

OhSAS

SAFETy & ENvIRONMENT OFFICER wORkMENSECTION INChARGE

SAFETy AdvISOR SITE CONTRACTOR

dEPARTMENT hEAdS wORkMEN REP.SAFETy hEAd ENv. hEAd

CO

NTR

AC

T LA

BOU

R


During storage of the product, we ensure the safety of our employees by providing appropriate lighting and ventilation, stacking cement bags according to norms to avoid injuries, assigning separate gates for inbound and outbound traffic, keeping proper Personnel Protective Equipments such as masks and gloves, and having the product storage shed away from the residential and busy operation areas. The First In First Out (FIFO) system is followed in order to ensure supply according to the product’s shelf life.

The First In First Out (FIFO) system is followed in order to ensure supply according to the product’s shelf life.

To ensure the safety and security of our premises from unethical practices, we have engaged trained security personnel to monitor the movement of goods and visitors. All security persons working at our units (approximate deployment of 160 personnel per day) are duly trained in organisational policies and procedures, fire fighting, first aid, emergency preparedness and following prescribed safety measures. The security personnel perform regular mock drills in line with the documented ‘On Site Emergency Plan’ to make sure that our emergency preparedness is effective and adequate to deal with any emergency situation.

wE TAkE PRIdE IN OUR SAFETy CULTUREWe were awarded the Safety Innovation Award, 2011, by the Institute of Engineers, New Delhi, under the category of large enterprises industry sector. It recognized our commendable efforts towards inculcating a behaviour-based safety culture, reducing the risk of injuries and ill health of all employees as well as the surrounding communities, and the overall improvement in OHS performance on a consistent basis through the use of management systems, innovative tools, health and safety legislation, frontline technologies and best practices. We achieved all this while consistently improving our productivity.

The prestigious Safety Innovation Award recognizes our professional excellence across a range of innovative initiatives such as:1. Successful implementation of a

behaviour-based Critical Task Observation process to monitor ‘at risk behaviours’ and conditions

2. Substitution of some of the hazardous manual handling practices with sophisticated mechanized processes

3. Complete ban on the procurement and use of asbestos products

4. Implementation of an improved Performance Appraisal System with enhanced focus on meeting individual safety goals as part of the implementation process

5. Effective involvement of suppliers, contractors and workers in finding solutions for key OHS issues

6. ‘Management of Change’ adopted as an integral part of OHS

our EMPLOYEES


Freedom of association: Our employees have the full freedom to exercise their right to associate, bargain collectively and join or form unions. At the Sirohi unit, our workers are directly part of two trade unions, namely INTUC and BMS, that are used as a platform for constructive dialogue. The exact count of workers under each union is maintained at the concerned union offices.

In case of any significant change in working conditions, we adhere to laws and regulations. During the reporting period, no significant operational change occurred.

Our consistent and innovative programmes with regard to the improvement in OHS performance and the inculcation of safety culture in our employees have been appreciated and rewarded by the Institute of Engineers.

RESPECT FOR hUMAN RIGhTSOur contracts with suppliers and contractors include environment, health, safety and human rights clauses covering compliance to fair labour practices and zero tolerance to child labour and forced labour.

The execution of human rights policies is obligatory for all service providers operating within our establishments.

“We were awarded the Safety Innovation Award, 2011, by the Institute of Engineers, New Delhi, under the category of large enterprises industry sector”.


sustainable products and SATISFIED CUSTOMERS


Our commitment to provide excellent products and satisfaction to our customers is of utmost importance to us.

We manufacture eco-efficient, sustainable cement that uses waste material (such as, fly ash, slag, POP waste) to benefit society as a whole. To make sure that our products are used in a safe and optimised manner, we conduct training sessions for our supply chain partners that lay emphasis on:

h Appropriate handling and storage techniques to avoid damage to products

h Information on product shelf life to ensure it reaches the customer in time for utilization

h Information on right construction practices and the appropriate use of products is provided to end customers with the help of mobile vans

h Guidelines on the best construction methods are distributed to users

With the idea of providing the highest standards of customer satisfaction, we also provide after-sales service and suggestions for rectification in case of any problem related to the products. Training programmes are held for masons and contractors where specific instructions are provided on:

(a) The correct use of product(b) Proper aggregate and mixing(c) The precautions to be taken during and after construction


Safety measures promoted amongst workmen through awareness booklets

sustainable products and SATISFIED CUSTOMERS

Figure 16

We have aligned our operations and initiatives with national international standards w.r.t. our cement compressive strength. Our product undergoes various quality tests in the on-site laboratories before reaching the market. The 3-day compressive strength of our 43 grade, 53 grade OPC and PPC is 35.0, 40.0 and 29.0 MPa respectively, against the BIS norms of 23.0, 27.4 and 16.0 for the related categories.


April

May

June

July

August

Sept.

October

Nov.

dec.

Jan.

Feb.

Mar

ch

Customer Satisfaction Index Over the Reporting Period

80

85

90

95

100

105

(in %)

Figure 17

ENGAGING wITh CUSTOMERSWe take due care in our manufacturing process to present the best product to our customers. To gauge perception of our product quality, we carry out a customer feedback survey and customer satisfaction index every month. These exercises help us quantify customer response and monitor the results of our efforts for improvement.

For the customer satisfaction index, customers are met personally and information is gathered in standard formats as per ISO requirements. For the reporting period, the values for the customer satisfaction index are provided here: The survey results show that our product is ranked very high in terms of quality and packaging by most of our customers. In case of delivery parameters, our rating ranges between fair to excellent.


THE SOCIAL DIMENSIONwe care deeply for our society and work along with local communities by aligning our business practices to social causes.


the SOCIAL DIMENSION


Community engagement is central to the Binani business strategy, as the sustainability of our business is inextricably linked to the sustainability of the communities in which we operate. As a socially sensitive corporate entity, we take responsibility for managing our social impact. We adhere to the values of compassion, empathy and deep-rooted commitment towards improving and uplifting the quality of life of the communities in the locations around us. We follow a participative model for our CSR programme, offering resources in the form of funds, expertise and direction. The community, in turn, plays a significant role from the prioritization of its needs to the planning and execution of a project. Engaging with them helps us understand their needs and concerns; therefore, we hold dialogue sessions and jointly develop our sustainability plans. We believe that when the local public accepts ownership of a project, they become more involved in the project’s outcome.

“In recognition of our CSR and sustainability initiatives, we were awarded the most prestigious CII sustainability award for two consecutive years – 2008 & 2009 – for ‘Significant Achievement on the Journey towards Sustainable Development’.


Our presence in the Sirohi district of Rajasthan touches hundreds of lives each day in the villages of Amli, Thandiberi, Sabela, Malap and Pindwara. It has been our constant endeavour to have a positive impact on their daily life through our initiatives and actions. Keeping in mind the key concern areas of the local communities in these villages, various areas were identified as essential for growth. In collaboration with the local government administration departments, NGOs and the local community-based organisations present such as the Village Development Committee, we are carrying out our social development initiatives. These are showing encouraging results.

Making donations is another means by which we support our communities. BCL provides an annual financial aid worth INR 10 Million to G.D. Binani Charitable Foundation and Binani Trust for several social development activities related to education, medical & health, etc.

dEvELOPMENT OF INFRASTRUCTUREA road network is an integral part of the development of any region. Keeping this in mind we, in participation with the local and district level administration, built connecting roads for use by the local population and especially for the movement of goods. This has resulted in increased accessibility in the region around our plant that has helped the local inhabitants and us.

To facilitate life in the villages, we listed requirements and took up various initiatives to assist development and enable villagers go about their daily lives productively. As a result of our efforts so far, life in these areas has shown a remarkable change. We joined hands with a local NGO to address the requirement of sanitation facilities. We constructed low-cost sanitation blocks and renovated abandoned ponds. As part of our social initiative we took up and completed the cleaning and desilting of Nakki Lake – the only source of drinking water for the people of Mount Abu. This lake is also important as a famous tourist landmark, as it is a major source of income to the local economy that is largely dependent on tourism alone.

To maintain a regular supply of water in this region is an on-going task. To provide for this we added rainwater harvesting structures for groundwater recharge. Our water conservation and recharge efforts have resulted in an improvement in the water table of the region. This has directly affected the quality of life of the people, a case in point being the domestic life of tribal women. (See Box)



Liburi Devi belongs to the Garasia tribe and lives in the hamlet of Nal Wali Fali at Malap village. Until two years ago, she was spending about five hours a day, walking back and forth fetching water for her family. The routine left her sapped of both energy and time that she could have utilised to generate livelihood for her family and herself. Liburi’s story is echoed by thousands of poor and rural women in the water-scarce regions of India, who literally spend a prominent part of their lives fetching water for meeting their domestic needs.

Based on consultations during the PRA exercise, we understood that water harvesting initiatives would greatly relieve Liburi Devi as well as her fellow community women from a daily burden.

We, therefore, introduced rainwater harvesting structures in the area and constructed 2 Model Tanka (Water Harvesting Structure) with a total storage capacity of 60 M3 in the nearby village Malap during the reporting period. Rainwater from the hill slopes/ Rooftop is collected in a sump and diverted into the tank through pipe.

It greatly benefited Liburi and others like her, and enabled them to invest their time in productive activities aimed at generating livelihood under the programme. Total no. of beneficiaries of the project is approx. 10,000 persons.

The facility that we helped create continues to assist women in their daily activities, enabling them spend more time in productive work.

wATER RESOURCES dEvELOPMENTThe Company has constructed more than 70 hand-pumps and several rainwater harvesting tanks as well as sumps, which are used by the local people for their daily needs. We are also conducting several awareness sessions and workshops on water conservation at the regional level covering our employees, customers, communities and the general public.

COMMUNITy wATER RESOURCE dEvELOPMENT

h Model Rainwater harvesting structures (2 Nos. Tanka) constructed at village Malap during 2010-11 for the purpose of awareness & demonstration of Rainwater Harvesting to local community people. Water storage capacity of each tank= 30 M3 with total no. of beneficiaries/villagers = 10,000 persons.

h Implemented Rooftop Rainwater Harvesting in Amli & Sadalwa village schools. These schemes serve as living models for the students to learn and understand the concept of Rainwater Harvesting.


Some of the planned projects under the water management programme include the construction of check dam near our plant and Amli, Thandiberi mines at Sirohi. The site selection for water recharge structures was conducted in consultation with the Central Ground Water Board – Western Region, Jaipur, Rajasthan.

As part of our engagement in the community infrastructure development process, along with the local and district administration, community centres were developed for social gatherings, small parks and gardens were set up at various spots in an effort to add to the aesthetics of the town, places of worship were provided, and bus stands were developed. Facilities were also provided to the villagers for their cattle.

We are also participating in the implementation of different government schemes for the welfare of society. We adopted Thandiberi village and with the specific view of addressing the basic requirements of the people, developed local infrastructure and other facilities. (See Box) The life of the villagers has since shown a discernible change. Our comprehensive village development plan, to transform this village into a ‘self-reliant model village of sustainable development’, is

a path-breaking initiative expected to bring in a revolutionary economic change in the local communities.

OUR INITIATIvES FOR ThEAdOPTION OF ThANdIBERI

h Direct and indirect employment to villagers

h Construction of tar road from Amli mine to Thandiberi village

h Provision of hand pumps for drinking water

h Improvement of education facilities. We run two Vaikalpik Vidyalaya for tribal and under-privileged children, wherein we provide payment of teachers’ salaries and supply of uniforms and study material to students. We also constructed additional rooms and carried out repair work at the government school

h Periodic health check-ups and supply of free medicines to the villagers

h Construction of water tanks and supply of water for cattle as and when required



EMPLOyMENT GENERATION ANd SkILL dEvELOPMENTIn order to sustain and enhance sources of income and livelihood in the villages, in partnership with the local government, we initiated various employment and skill development schemes. The launch of a programme on ‘Educating Communities on Livelihood Skills’ covering, in its initial phase, four villages – Amli, Thandiberi, Sadalva and Malera – has helped people become more self-reliant. Whether through direct or indirect employment opportunities that have been given, the local people have learnt to sustain themselves.

They are also provided necessary training for skill development. Our social development measures have a special focus in areas where it has an impact on women and children. Our endeavour is to empower women in the decision-making processes within families and at the village level.

EdUCATION FACILITIESKey to the development of any society is education. As part of our commitment towards educating and increasing the literacy levels of our communities, we established an English-medium Senior Secondary school – Padma Binani Public High School, in 1996, to provide quality education to the children of our employees and also children of the neighbouring areas.

The expansion of the Government High School in Pindwara town and establishment of a primary school in the area are our other efforts to improve educational facilities. Our transportation system makes it possible for students situated at a distance to attend school.

In order to further strengthen the district education facilities, specific steps were taken to build more classrooms and carry out renovation work to provide children with an encouraging environment to pursue their education. During the reporting period, a sum of INR 5.40 Million was invested in this initiative.

“In order to further strengthen the district education facilities, specific steps were taken to build more classrooms and carry out renovation work to provide children with an encouraging environment to pursue their education”.


Today, almost 80 per cent of our total employees are from Rajasthan. Indirect and induced employment opportunities have also been created by our contractors and suppliers thus adding to the local job prospects. This has also created a ‘multiplier effect’ of sustainable livelihood.

In view of this, our Contractor Engagement Policy has a clause according to which they are required to employ people from the local communities or from nearby districts. Apart from this, non-essential items used by the Company are purchased from the locally based suppliers. Our employees also prefer to buy locally produced goods thus indirectly making a significant contribution to the local economy.

OUR INITIATIvES CREATING LIvELIhOOd & SELF-RELIANCESkill Development: We are working towards empowerment of the rural community with skills development for generating livelihood. Rural women are feeling empowered as a training centre has been set up to provide them training in tailoring with additional monetary support for purchasing sewing machines. Two stitching classes are being run in Amli and Malap villages.

Economic Sustenance: To synergise our initiatives with the government development schemes, we actively engage with the State Government for implementation of various schemes under the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA). We provided assistance to the villagers, including old-age residents and widows, for opening post office pension accounts under the scheme.

SHGs & Savings Schemes: We have assisted in the organisation and operation of self-help groups across the surrounding villages. The SHG members are provided training on aspects such as book-keeping, M.I.C. development and opening bank accounts to enable them take control of their own finances.

Educating Farmers: To align to the technical needs of the local farming community, we have made targeted investments and are working extensively to educate them on efficient agricultural and irrigation practices to maximise crop yield, in association with a local NGO. They are also learning to enhance their skill in livestock management. Technical guidance and assistance for the construction of farm ponds is also offered to farmers.



BINANI LAdIES CLUB – ITS SOCIAL ACTIvITIES The Club provides:

h awareness to tribal students on health and hygiene, and distributes uniforms and stationary

h financial assistance and service to eye camp patients

h awareness to rural ladies on – child care, sanitation, housekeeping, and generating livelihood

h charity and donation in the event of natural disasters like floods, earthquake and draught

MEdICAL ANd hEALTh SERvICES In making a positive contribution to society, we have made investments in the health sector by setting up a Primary Health Care Centre, well equipped with state-of-the-art facilities and services to extend medical treatment to patients. The annual operational cost of the health centre was approximately INR 2.50 Million during the reporting period. More than 10,000 patients benefit from this every year.

The village people have become more aware of how to maintain personal hygiene, as well as other health issues. They now have access to periodic free multi-specialty health, eye check-up and immunisation camps, and can avail of consultation, medicines and ambulance facilities. We also organise training development programmes at our medical centre in order to create awareness among the employees and the local community about various diseases and their preventive measures. Through training programmes, villagers are more educated on – occupational health and safety, diseases such as diabetes and their preventive measures, and first aid.

With the help of our Ladies Club (See Box), educational programmes are organised to create awareness about the importance of women’s health.


dEvELOPMENT ANd EXPANSION OF GREEN COvERDuring the reporting period, in support of the development of green belt area and as our commitment towards ‘social forestry’, we planted around 16,000 trees. The total expenditure towards this initiative during the reporting period was INR 3.50 Million.

Till date, we have covered 210 ha of land through large-scale tree plantation and fruit plantations within and around the plant premises with an investment of more than INR 25.0 Million.

The Forest Department, Rajasthan, has acknowledged our efforts. We have also distributed around 600 plants in four ‘Wadis’ (group plantation) in Thandi Beri, Sabela and Amli villages. The survival rate of these plants observed till now is 70 per cent.

“We planted 16,000 trees towards our commitment to social forestry.”



3900

2290

0 3340

0

5340

0

5778

1

6602

1

7451

5

8251

5

9035

5

9421

9

9851

5

1015

23

1117

19

1167

19

1217

19 1377

19

950

20000

40000

60000

80000

100000

120000

140000

160000

0198

yEAR-wISE PLANTATION

NU

MBE

R O

F SA

PLIN

GS

04 0896 0299 05 0997 03 0700 06 10

year-wise Plantation

Our aim is to fulfil our commitment to our communities throughout the lifecycle of our operations. We also believe that the goal of shareholder value creation is in synchronization with that of sustainable development; therefore we look at development as a whole. As we progress, there will be more to do, but we have taken important steps forward and are guided by our main concern – doing business with the society in mind.


PROFILE INDICATOR DESCRIPTION REFERENCE PAGE NOS.

1.1 Statement from the most senior decision-maker of the organisation. Reported Page 4, 5

1.2 Description of key impacts, risks, and opportunities. Reported Page 12

2.1 Name of the organisation. Reported Page 10

2.2 Primary brands, products, and/or services. Reported Page 9

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

Reported Page 9

2.4 Location of organisation's headquarters. Reported Back cover

2.5 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.

Reported Page 9

2.6 Nature of ownership and legal form. Reported, Page 9

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

Reported, Page 9, 10

2.8 Scale of the reporting organisation. Reported Page 6, 7

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

No change -

2.10 Awards received in the reporting period. Reported, Page 16

3.1 Reporting period (e.g., fiscal/calendar year) for information provided. FY 2010-11 -

3.2 Date of most recent previous report (if any). Maiden Report -

3.3 Reporting cycle (annual, biennial, etc.) Annual -

3.4 Contact point for questions regarding the report or its contents. Reported, Page 7

3.5 Process for defining report content. GRI Framework, Materiality Assessment

-

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Reported Page 7

3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

None -

3.8 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 organisations.

None -

3.9 Data measurement techniques and the bases 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.

Reported at appropriate places

-

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

Maiden Report -

GRI CONTENT INDEX



3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Maiden Report -

3.12 Table identifying the location of the Standard Disclosures in the report.

Reported, Page 80

3.13 Policy and current practice with regard to seeking external assurance for the report.

No external assurance -

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.

Reported please refer Sustainability Report 2010-2011, Binani Industries Ltd,

for further details

-

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

Reported Page 21

4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

Reported Page 21

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Shareholder/ Investor relations committee/ please

refer Sustainability Report 2010-2011, Binani Industries

Ltd, for further details

-

4.5 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).

Reported/ please refer Sustainability Report 2010-2011, Binani Industries Ltd,

for further details

-

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Reported Page 23

4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation's strategy on economic, environmental, and social topics.

Please refer Sustainability Report 2010-2011, Binani

Industries Ltd,

-

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Reported, Page 12

4.9 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 with internationally agreed standards, codes of conduct, and principles.

Reported Page 21

4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.


Industries Ltd, details

-

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation.

Reported, Please refer Sustainability Report 2010-2011, Binani Industries Ltd,

for further details

-


GRI CONTENT INDEX


4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses.

GRI -

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations 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.


Industries Ltd,

-

4.14 List of stakeholder groups engaged by the organisation. Reported -

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

Reported -

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

Reported Page 25, 26

4.17 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.

Reported Page 27

EC1 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.

Reported Page 31

EC2 Financial implications and other risks and opportunities for the organisation's activities due to climate change.

Reported Page 13

EC3 Coverage of the organisation's defined benefit plan obligations. Reported Page 58

EC4 Significant financial assistance received from government. There is no significant assistance received.

However, a deferment return benefit of INR 559.17 Million was claimed in the

reporting year

-

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

This report covers our operations in the state of

Rajasthan only, and we follow standard entry level

wages at our units.

-

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Reported Page 32

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Reported. 100% of senior management is hired

locally (from within India) during the reporting period

-

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Reported -

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Additional Indicator (Not reported)

-

EN1 Materials used by weight or volume. Reported Page 37

EN2 Percentage of materials used that are recycled input materials. Reported Page 38

EN3 Direct energy consumption by primary energy source. Reported Page 39

EN4 Indirect energy consumption by primary source. Reported Page 40



EN5 Energy saved due to conservation and efficiency improvements. Reported Page 41

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Additional Indicator (Not reported)

-

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

Reported Page 41

EN8 Total water withdrawal by source. Reported Page 43

EN9 Water sources significantly affected by withdrawal of water. Reported Page 42

EN10 Percentage and total volume of water recycled and reused. Reported Page 43

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Reported Page 52

EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

Reported Page 52

EN13 Habitats protected or restored. Reported. There are no habitats that need

restoration in our operational area. We undertake green belt development in and

around our units.

-

EN14 Strategies, current actions, and future plans for managing impacts on biodiversity.

Additional Indicator- Reported

Page 54

EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

Additional Indicator- Reported.

No species from IUCN red list or national conservation list in the operational area

-

EN16 Total direct and indirect greenhouse gas emissions by weight. Reported Page 47

EN17 Other relevant indirect greenhouse gas emissions by weight. Reported Page 47

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Additional Indicator Reported

Page 47

EN19 Emissions of ozone-depleting substances by weight. Reported Page 49

EN20 NOx, SOx, and other significant air emissions by type and weight. Reported Page 42

EN21 Total water discharge by quality and destination. Reported Page 42

EN22 Total weight of waste by type and disposal method. Reported Page 51

EN23 Total number and volume of significant spills. There have been no significant spills during the

reporting period

-

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

No waste has been transported internationally during the reporting period

-

EN25 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.

Reported. We are a zero waste water discharge

company.

-

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Reported Page 42, 44, 47, 50



EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

The nature of the product (cement) and its packaging is such that they cannot be

reclaimed.

-

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

There have been no reported cases of non-

compliance or fines due to non-compliance in the

reporting year.

-

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation's operations, and transporting members of the workforce.

Additional Indicator (Partially reported, The impacts due to green

house gas emissions due to transport are covered in EN

16 and EN 17)

-

EN30 Total environmental protection expenditures and investments by type.

Reported Page 55, 78

LA1 Total workforce by employment type, employment contract, and region.

Reported Page 57

LA2 Total number and rate of employee turnover by age group, gender, and region.

Reported Page 57

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Reported Page 58

LA4 Percentage of employees covered by collective bargaining agreements.

Reported Page 63

LA5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.

Reported Page 63

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Reported Page 60

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.

Reported Page 61

LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Reported Page 62

LA9 Health and safety topics covered in formal agreements with trade unions.

Nil -

LA10 Average hours of training per year per employee by employee category.

Reported Page 59

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Reported Page 59

LA12 Percentage of employees receiving regular performance and career development reviews.

Reported Page 59

LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.

Reported Page 57

LA14 Ratio of basic salary of men to women by employee category. Reported Page 59

HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.

No significant investment agreements in reporting

period

-

GRI CONTENT INDEX



HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Reported Page 63

HR3 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.

Reported Partial Page 59

HR4 Total number of incidents of discrimination and actions taken. No incidents -

HR5 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.

Reported, Page 63

HR6 Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

Reported, Page 63

HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor.

Reported, Page 63

HR8 Percentage of security personnel trained in the organisation's policies or procedures concerning aspects of human rights that are relevant to operations.

Reported, Page 62

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken.

No incidents -

SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.

Reported, Page 65, 76

SO2 Percentage and total number of business units analyzed for risks related to corruption.

Such business unit wise analysis for corruption

related risks has not been conducted in the

reporting year

-

SO3 Percentage of employees trained in organisation's anti-corruption policies and procedures.

There are no specific trainings designed for

anti corruption policies, however, these topics are covered in our business

code of conduct.

-

SO4 Actions taken in response to incidents of corruption. There were no reported incidences of corruption

-

SO5 Public policy positions and participation in public policy development and lobbying.

Reported Page 72

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

No such contributions have been made in the

reporting year

-

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.

There have been no such reported cases in the

reporting year.

-

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

There have been no reported cases of non-

compliance or fines due to non-compliance in the

reporting year.

-

PR1 Life 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.

Reported Page 65

PR2 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.

None -




PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

Reported Page 66

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

None -

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Reported Page 67

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

None -

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.

None -

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

None -

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

None -

Metals and Mining Sector Supplement - GRI -

MM1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated.

Reported Page 52

MM2 The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place.

Reported Page 52

MM3 Total amounts of overburden, rock, tailings, and sludges and their associated risks.

Reported Page 52

MM4 Number of strikes and lock-outs exceeding one week's duration, by country.

None in the reporting period

-

MM5 Total number of operations taking place in or adjacent to Indigenous Peoples' territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples' communities.

Not applicable -

MM6 Number and description of significant disputes relating to land use, customary rights of local communities and Indigenous Peoples.

None in the reporting period

-

MM7 The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and Indigenous Peoples, and the outcomes.

Not applicable -

MM8 Number (and percentage) or company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks.

Not applicable -

MM9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process.

Not applicable -

MM10 Number and percentage of operations with closure plans. Reported Page 52

MM11 Programme and progress related to material stewardship Reported Page 54

GRI CONTENT INDEX

GRI APPLICATION LEVEL

According to our own assessment, we fulfill the requirements of A-level of application of the G3 guidelines released in October 2006 by Global Reporting Initiative.

C B A A+B+C+R

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GRI ChECkEd

Mercantile Chambers,12 J.N. Heredia Marg,Ballard Estate, Mumbai 400001Phone no: +91 - 22 - 2269 0506 - 10 / 22640040-44 Fax: +91 - 22 - 22690003 / 22640045website: www.binaniindustries.com

NURTURING NOW. PROTECTING FUTURE. - Binani Industries

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