Leveraging Six Capitals in Business Model

FC
Financial Capital

Capitals and Actions to Enhance Them

A balanced, cost-effective funding mix (debt and equity), deployed for sustaining and creating value across all capitals.

Actions to Enhance

We maintain focus on free cash flows (FCF) generation and prudent financial management to fund growth, reduce debt and pay dividends. Our investments in high value products and business help drive margins and create a business niche.

Inputs

  • Cash and cash equivalents (including Deposits with <12 months maturity and Current investments): ₹ 1,260 crore ()
  • Net worth including Non-Controlling Interest: ₹ 23,114 crore ()
  • Capital employed: ₹ 28,677 crore ()

Ensuring Input Availability and Affordable Access

Ensuring a strong balance sheet gives us access to internal as well as external funds for investment in growth opportunities. With ongoing improvement in the demand scenario, we have got further opportunity to enhance our cash position.

Outcomes

  • Revenue: ₹ 15,421 crore ()
  • EBITDA: ₹ 2,847 crore ()
  • EBITDA/Revenue from operations: 18% ()
  • Proposed dividend: ₹ 15 per share ()
  • Strengthened balance sheet as net debt: equity improved to 0.20 ()
  • Net debt to EBITDA at 1.6 ()
  • RoCE (Consolidated): 7.7% ()
  • Market capitalisation: 11% ()
  • Net Cash generated from operations:
    ₹ 3,016 crore ()
MC
Manufactured Capital

Capitals and Actions to Enhance Them

Infrastructure, such as plants, warehousing and logistics facilities as well as physical assets, which we have invested financial capital to ensure efficient operations and generate long-term returns.

Actions to Enhance

We undertake process safety, risk management and sustainability initiatives to enhance operational reliability. Our Project ACE (Agile, Competitive, Excellence) has been implemented to achieve operational excellence through cost optimisation and throughput increase initiatives. We emphasise on digitalisation to build smart factories.

Inputs

  • Capex incurred: ₹ 1,834 crore ()
  • Innovation to recover and reuse key resources (CO2 and Sodium)

Availability, Affordability and Accessibility of Inputs

Our sustained investments in plant, equipment and technology has enhanced plant availability. Projects have been implemented to fast-track the capacity expansion programmes for scheduled commissioning.

Outcomes

  • Sustained progress in expansion of manufactured assets and capex
  • Increase in sale of Soda Ash to 3,327 KT; Sodium Bicarbonate to 218 KT; and Salt to 1,651 KT ()
  • Impact on production due to extended monsoon and cyclone
  • Increased input costs due to rise in fuel and freight and prices of solar salt
IC
Intellectual Capital

Capitals and Actions to Enhance Them

Scientific knowledge, R&D capabilities, information technology infrastructure and digitalisation, leading to development of competitive products and market share win.

Actions to Enhance

We are strengthening synergies between R&D centres and investing financial capital to fund research projects as well as to improve R&D infrastructure.

Inputs

  • Investment in R&D (including Rallis): ₹ 95 crore ()
  • Technically-skilled people in R&D (TCL + Rallis): 220+

Availability, Affordability and Accessibility of Inputs

Our high brand image enables us to retain and attract skilled people which drives our intellectual capital. We also continue to nurture our science knowledge through investments in R&D and collaborations with global institutions and academia.

Outcomes

  • Several new product launches and registrations
  • Growth in intellectual property with 13 new patent grants
  • Deployment of advanced technologies (IIoT, AI) in further sections of Mithapur plant
HC
Human Capital

Capitals and Actions to Enhance Them

The knowledge, skills, experience and motivation of our employees help us to create value.

Actions to Enhance

We are investing in building future-ready capabilities in our people as well as in digital initiatives and niche skills. We are focussing on diversity and inclusion to foster creativity and innovation.

Inputs

  • Strong team of 4,644 people
  • Training days per employee: 2.9 man-days ()
  • Safety training per employee: 1.44 man-days ()

Availability, Affordability and Accessibility of Inputs

We have steady access of skilled labour at our plant globally. We continue to train our people to build skills and provide them with various benefits to enhance retention as well as attract new talent.

Outcomes

  • High employee productivity, job satisfaction, engagement and retention
  • Zero incident of labour unrest
  • Safety performance with Total Recordable Injury Frequency Rate of 0.98 (1.28 in FY 2022-23)
  • 1 unfortunate fatal incident
SC
Social and Relationship Capital

Capitals and Actions to Enhance Them

The collaborative relationships with the communities, supply chain partners and customers, along with our welfare initiatives, led to strengthen our reputation of being a long-term partner of choice and to secure licence to operate.

Actions to Enhance

We are engaging with all stakeholders on a continual basis to address their needs and cater to their demands.

Inputs

  • CSR spending (standalone) – ₹ 17.94 crore ()
  • Relationship management and collaborative working with customers
  • Positive engagement with trade unions
  • Continued engagement with and support to supply chain to ensure effective service delivery

Availability, Affordability and Accessibility of Inputs

Stakeholder’s expectations are constantly increasing in terms of the value we create for them and determining their association based on ESG performance. Our focus on core value of ensuring safety of our stakeholders and serving them with Integrity, Passion, Care and Excellence enables us to meet their expectations.

Outcomes

  • CSR beneficiaries: 1.98 lakh (decrease from 2 lakh)
  • Creation of local employment opportunities in multiple regions of presence
  • Maintained high customer satisfaction index
  • Multiple new customers added
  • Enhancement in global supply chain network
  • NIL regulatory implications or fines due to non-compliance; taxes paid on time
  • 4,936 customer complaints received (including 3,301 complaints pertaining to Ncourage Social Enterprise Foundation) and 97% complaints resolved
NC
Natural Capital

Capitals and Actions to Enhance Them

The renewable and non-renewable natural resources that we use in our operations, to generate social and economic value and the consequent environmental impacts

Focus on Green Chemistry – Fermentation platform for Prebiotics, Silica

Actions to Enhance

We have aligned our sustainability goals with Responsible Care, CORE and UN SDGs guidelines. We are strongly focussed on and consistently investing in initiatives around carbon abatement, circular economy and biodiversity protection.

Inputs

Resources used:

  • Trona 45,09,776 MT ()
  • Solar Salt 24,01,015 MT ()
  • Limestone 15,03,101 MT ()

Ensuring Input Availability and Affordable Access

Our efforts in water management, CO2 recovery and energy efficiency (through renewable energy and operational efficiency) have significantly reduced our dependence on natural resources. We will continue to invest in these areas, backed by innovation.

Outcomes

  • No serious environmental incidents or material impact on biodiversity / habitats
  • No water source negatively impacted by extraction activities
  • Sustainable use of resources
  • Decrease in freshwater withdrawn from 30,364 ML to 29,265 ML
  • Decrease in GHG emissions from (Scope 1 and scope 2) 4.44 million tC2Oe to 4.34 million tCO2e

/ : Increase / Decrease over past financial year

/

: Favourable / Unfavourable outcome