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Strategic Review Purpose-led strategy Material issues Financial Natural Social and Relationship Manufactured Human Intellectual Mitigation Risk management Vision Reaching Tomorrow First Mission Tata Metaliks strives to become a sustainable organisation through significant contribution to India’s foundry, water and sanitation sectors by optimum utilisation of men, material and assets, responsible use of energy and water resource, being guided by its values. Identification Assessment Review and monitoring Corporate Goal Card Our six strategic pillars are driven by our corporate philosophy. These six strategic pillars are built around our business priorities and reflect the integrated thinking of the Company. We deploy our resources around these strategic priorities to create value for our stakeholders. The pillars not only respond to the global needs as per the UN SDGs, but the stategic deployment of our Corporate Goal Card across each business process by cascading it to each Individual Goal Cards, helps establish a unique integrated framework. Pioneering Excellence Responsibility Integrity Unity Aerial view of Kharagpur plant Values I n n o v a t e a n d E x c e l Robust People Practices Responsible Corporate Citizenship Focus on Downstream/ Value Add Cost Leadership Supplier of Choice 18 19 INTEGRATED REPORT FINANCIAL STATEMENTS STATUTORY REPORTS 01-44 98-154 45-97 Individual Goal Card
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Purpose-led strategy - Tata Metaliks

Jan 19, 2023

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Page 1: Purpose-led strategy - Tata Metaliks

Strategic Review

Purpose-led strategy Material issues

Financial

Natural

Social and Relationship

Manufactured

HumanIntellectual

Mitigation

Risk management

Vision Reaching Tomorrow First

Mission Tata Metaliks strives to become a sustainable organisation through significant contribution to India’s foundry, water and sanitation sectors by optimum utilisation of men, material and assets, responsible use of energy and water resource, being guided by its values.

Identification Assessment Review and monitoring

Corporate Goal Card

Our six strategic pillars are driven by our corporate philosophy. These six strategic pillars are built around our business priorities and reflect the integrated thinking of the Company. We deploy our resources around these strategic priorities to create value for our stakeholders. The pillars not only respond to the global needs as per the UN SDGs, but the stategic deployment of our Corporate Goal Card across each business process by cascading it to each Individual Goal Cards, helps establish a unique integrated framework.

Pioneering Excellence

Resp

onsi

bilit

y

Integrity

Unity

Aerial view of Kharagpur plant

Values

Innovate and Excel

Robust People Practices

Responsible Corporate Citizenship

Focus on Downstream/ Value Add

Cost Leadership

Supplier of Choice

18 19

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Individual Goal Card

Page 2: Purpose-led strategy - Tata Metaliks

Innovate and Excel

Progressing through sustainable innovation A culture of high performance and continuous improvement is driven mainly through the levers of Shikhar (EBITDA+ improvement initiatives), Total Productive Maintenance (TPM) and digitalisation. These interventions are designed not only to improve overall profitability and sustenance of the business model but also help to enhance employee engagement. In addition, benchmarking and knowledge management are being used to build further on the Improvement journey.

As an early mover in Digital, an elaborate digital roadmap was developed in FY 2018-19. In order to drive focus, 3 prioritised themes - ‘Real time data analytics, Smart machines and Business on mobile’ were selected. Several use cases in the field of data analytics and Business on Mobile were completed in FY 2020-21. The use case on predictive maintenance using machine learning, pricing analytics, HR and logistics analytics, successful introduction of robotics in our DIP plant, implementation of MES etc. have not only given us higher than expected results but also the confidence to accelerate our digital journey.

Product innovation We have established a New Product Development process, with a robust governance mechanism, to deliberate and develop new products and features to meet emerging or latent needs of customers. During the year, the team continued to work on identified opportunities for products and service offerings; some of the new products/features are expected to launch in FY 2021-22.

Service enhancementIn our endeavor to improve value added service offerings, we remain focused to identify opportunities. Market research and benchmarking exercises are conducted to gain insights to needs of customers. Service offerings include Tata eFee energy efficiency trials at foundries, structured technical services, and on-site technical assistance to DIP customers for pipe handling, laying and jointing. During the pandemic, customer interactions were carried out through virtual technical webinars and virtual key customer meets; these sessions have enabled knowledge-sharing and were well appreciated. Action

Innovate and Excel is one of the six strategic pillars and a systematic approach follows to identify key areas targeting product and process innovation, process and service enhancements deployed by planned interventions. This strategic pillar forms the foundation on which the other strategic pillars rest.

To accelerate the journey of business excellence with a focus on continuous improvement, including digital transformation

• Process improvement through Shikhar for cost savings

• Benchmarking, knowledge management and improvement, including TPM initiatives

• Digital transformation

• Digitalisation and automation

• Product stewardship

• Emergency preparedness

Material topicsFocus areasStrategic priority

planning, basis the voice of customers, and in-depth Customer Satisfaction Survey helped us improve customer engagement and relationship building.

Process ImprovementA major initiative to enhance availability and operations of PI division begun in FY 2019-20 and tangible results were achieved in FY 2020-21. The initiative has successfully led to consistent and smooth Blast Furnace operations resulting in higher productivity and lowest-ever fuel rates.

‘Shikhar‘ projects are driving improvements in areas of process innovation and impacting EBITDA margins. The benefits of Shikhar projects, scrutinised and audited by in-house BAG (Business Analysis Group), helped us clock our highest-ever savings of over ` 100 crore against a target of ` 70 crore for the year. The improved rigour and mentoring by the Leadership have provided employees the drive and motivation to go beyond stretch targets. Collaborative group deliberations and a culture of sharing good practices have also triggered several ideations to create opportunities for improvement.

TPM process involves engagement of workforce on the shop floor in improvement projects. In view of the pandemic, the focus was strategically shifted to other pillars of TPM. This resulted in various Kaizens and visuals within the Plant which augmented safe working conditions, reduction of cycle time, and other improvements.

In our journey to capture and evaluate fresh ideas from employees, an Innovation/ Ideation portal was launched to foster ideation and engagement. The revamped knowledge portal helped to capture learnings from improvements and failures along with relevant good practices. Our next foray is in data maturity which will enable us to leverage data analytics as a tool for value-addition and accelerate the digital transformation journey.

Kaizens (nos.)

2016-17 2017-18 2018-19 2019-20 2020-21

383

639

524481

180

Employees involved in improvement projects (%)

2016-17 2017-18 2018-19 2019-20 2020-21

8991908984

Improvement projects (nos.)

2016-17 2017-18 2018-19 2019-20 2020-21

102

151156154130

Savings from improvement projects (₹ in crore)

2016-17 2017-18 2018-19 2019-20 2020-21

102

54

91

4030

This pillar enables continuous improvement through innovation. It also embeds a culture of collaboration and continuous learning. This institutionalisation of innovation, that has led to incremental as well as breakthrough advances, has helped the Company and its employees to bring forth new ideas and unique solutions in the PI and DIP businesses.

SDGs impacted

21

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Page 3: Purpose-led strategy - Tata Metaliks

Building process efficiencies through digital interventionsOur long-term Digital Strategy is focused on three themes – Real-time Data Analytics, Smart Machines and Business on Mobile. It measures the outcomes of various digital initiatives along three metrics — Safety, Productivity and EBITDA. In FY 2020-21, the Company implemented some key real-time data analytics focused projects such as Manufacturing Execution System for DIP, Energy Management System and CRM (Customer Relationship Management) Solution. We are also implementing Level II Automation System for MBF #1, a pioneering initiative by any mini blast furnace in India. We have strengthened capability in the area of robotics and developed in-house robotics solutions which are being implemented for the first time in the DIP industry in the country. The Company currently has three robots operational in its DIP production lines, with several others to come in the coming financial year.

We firmly believe that the key ingredient for digital transformation is cultural change. With unique initiatives such as Reverse Mentoring, Digital Champions and Digital Mindset Activation Workshops, we are nurturing the capabilities of all our employees – be it senior leadership, officers, supervisors or workers.

Way forward We will navigate our future course with a single-minded focus on digitalisation, mindset transformation, and our culture of innovation. We look forward to improved processes, quality, safety and productivity through the implementation of our Digital Strategy. Several automation drives that are under implementation across processes would lead to improved behavioural safety, and make way for agile decision-making besides improving workforce productivity.

Other interventions in FY 2020-21

Coal blend optimisation

Level II automation system for MBF

AI-based social distancing

Logistics optimisation model

Coke pricing prediction model

AI-based Pig Casting Machine control system

HR Analytics

Recognition for our efforts

Achieved ‘Industry Leadership’ in (TBEM) Tata Business Excellence assessment 2020 with 660 points

Tata Innovista – 2020: Project - Continuous to Batch Operation - Customised sinter was among 12 successful projects shortlisted under Implemented Innovations – Core Processes category in the Tata Innovista finals

Sinter Team of Pig Iron Division ranked 3rd and logistics team secured 1st Runner up position in 20th National Supervisory Skill Competition

QC Team of Annealing Department, Ductile Iron Pipe Division, won 2nd runner up position in CII 33rd QC Convention (State Level)

• Use of robots in DIP

• Digitalisation of DIP operation through Manufacturing Execution System (MES)

• Sensors to various equipment to capture data for predictive analytics

• Digitalisation of project implementation process

• IoT based edge analytics and predictive maintenance

• Energy Management System (EMS)

• Automated hot metal weighment

• Integrated management dashboards for decision making

• VR applications for DIP casting area and safety

• Implementation of phase-I of CRM solutions

Relentless innovation Together with our Digital Strategy, we have a pipeline of programmes that help build process efficiencies. Major interventions completed include:

(₹ in crore)

Capex on digital projects

6.5

2019-202018-19

5

2017-18

2

All round Business ExcellenceThe consistent business performance and all-round process driven improvements over the last several years helped Tata Metaliks achieve the coveted ‘Industry Leadership’ status having crossed the threshold in the Tata Business Excellence Model (TBEM) Assessment. This recognition bears testament to our concerted efforts towards improvement and business excellence.

3.6

2020-21

22 23

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Page 4: Purpose-led strategy - Tata Metaliks

Cost Leadership

Excellence through cost optimisationOperational excellence Our integrated improvement framework including Shikhar, TPM and digitalisation are key enablers in our operational excellence journey.

Our stable and consistent blast furnace operations, despite the prolonged shutdown due to the nationwide lockdown, have helped us clock our lowest-ever fuel rate with higher productivity, leading to our highest ever EBITDA amidst challenges.

We have improved our operation and maintenance practices in blast furnaces (BFs) through a performance improvement programme conducted by a reputed international consulting firm. Our structured review mechanism improves the BF performances.

Increased captive coke production has helped us offset market coke price volatilities, in turn reducing our overall production cost.

As a result of these, we have emerged as one of the lowest cost producers of hot metal in the mini blast furnace sector and of pipes in the DI pipe industry.

We judiciously use our resources to be the lowest-cost producer of PI and DIP and achieve operational excellence. We are leveraging the power of digitalisation and automation to chalk out our cost optimisation strategy. The pandemic gave us an opportunity to look back at our processes and recalibrate to achieve the lowest-ever fuel rate despite the production loss due to the lockdown. We undertook Shikhar initiatives to propel our cost efficiency projects and integrate our ‘Innovate and Excel’ culture to drive our ‘Cost Leadership’ journey.

To be the lowest cost producer of PI and DIP, while being the best in terms of quality of products and services

• Operational excellence

• Strategic raw material sourcing

• Optimising fuel and resource efficiency

• Digitalisation and automation

• Digitalisation and automation

• Emergency preparedness

Material topicsFocus areasStrategic priority

PI business DIP business

Coke production trend (in LT)

1.521.451.48

2018-19 2019-20 2020-21

Digitalisation and automation in the factories As COVID-19 transformed the way we work, digitalisation and automation (D&A) have gained accelerated importance. Being an early mover, Tata Metaliks has seamlessly integrated D&A for problem-solving, measurement, and monitoring of performance. We remain committed to becoming a ‘Digital Factory’ in line with our vision of ‘Reaching Tomorrow First’. As DigiTML continues to spearhead the D&A interventions, we have also engaged external agencies to guide us in the next wave of digital growth.

to meet changes in the external and internal environment. We use strategic contract management initiatives to improve our supplier interactions through structured supplier review of contract performance, supplier feedback, improvement plans, and cost reduction projects.

Optimising fuel, energy and resource efficiencyOur sustained investments in the Pulverised Coal Injection (PCI) in the Mini Blast Furnaces (MBFs) have helped to not only reduce coke consumption but also enhance productivity. Several initiatives taken in the DIP plant have also reduced energy and fuel consumption in induction furnaces and annealing furnaces, respectively. These interventions not only improved production efficiency but also helped us reduce net fuel rate and cost.

Way forward We remain focused on reducing fuel rate, enhancing productivity, and improving the suppy chain to ensure availability of raw material. Several cost optimisation interventions, along with D&A interventions, will help us improve our cost leadership in PI and DIP further.

Shikhar The framework continues to foster a culture of innovation by providing a holistic platform for ideas that promote cost-savings and drive bottom line growth

4.66 LT Hot metal production

1.87 LT Finished pipe production

19% Reduction in specific energy consumption since FY 2016-17

>5% Reduction in net fuel rate y-o-y

48% Reduction in conversion cost since FY 2016-17

>72% Higher oxygen enrichment y-o-y

>70% Increase in PCI usage/THM y-o-y

SDGs impacted Strategic raw material sourcing The availability of quality raw material is crucial for our business, making it an essential part of our overall procurement. We ensure supply chain security through a global supply network and strategic contracting, which facilitate flexibility in commercial operations

`84 crore Savings through improvement projects in operations in PI division

16 Automation projects undertaken in FY 2020-21

19 Digitalisation projects undertaken in FY 2020-21

25

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Page 5: Purpose-led strategy - Tata Metaliks

Supplier of Choice

Fortifying our customer centricity Building a culture around customer centricity At Tata Metaliks, we strive to be the ‘supplier of choice’ in chosen segments and delighting customers with focus on Customer intimacy. In our journey, we have not only directed our efforts towards deeper customer engagements but have also been continually improving customer experience. Our ongoing digital transformation journey is heavily focused on ‘ease’ of customers. Thus, we are in the midst of implementing a powerful Customer Relationship Management (CRM) platform that offers online order booking facility besides real time visibility of orders, payments, stocks, status of complaints, etc. Further, the availability of CRM on mobiles will not only enhance flexibility and ease of access for our customers, but will also help us meet their requirements with agility.

Our customer-centric culture is enabled through various customer facing processes. The use of digital platforms is continuously increasing in our customer facing processes. This year, digital platforms have enabled the improvement of our services through virtual inspections while providing digital technical services support throughout the pandemic.

Over the years, we have built a product portfolio that is respected for its superior quality. This is backed by our superior service commitment, resulting in enhanced customer loyalty. The feedback mechanism built in the system provides insights pertaining to customer needs, share knowledge on industry best practices, and emerge as value-adding partners in their journey.

To be the supplier of choice in chosen segments and delighting customers

• Create and sustain mutually rewarding relationship with customers through differentiated product and service offerings and deeper customer engagement leveraging digital and analytics solutions

• Customer focus• Product

stewardship• Increased

stakeholder engagement

• Emergency preparedness

• Digitalisation and automation

Material topicsFocus areasStrategic priority

While we maintained market share in PI Foundry Grade at 20% in FY 2020-21, we have significantly increased our share in our chosen markets in East and Punjab. We have also maintained our share in DI Pipe market at 12% in FY 2020-21.

operational costs and efficiencies. Our customers have duly acknowledged that such interventions have been beneficial to them, and this drives their continued trust on Tata Metaliks. As a result, our Customer Satisfaction Index continues its upward trajectory while going down on customer complaints.

The seven customer-facing processes

Customer insight management

Working capital management

Annual business planning

Complaint management

Dedicated customer account management

New product and service offerings

Order generation and fulfilment

20% in PI 12% in DIP

Market share

Way forward We reinforce our commitment to innovate and strengthen our relationships with customers, by providing our proven superior quality of products and services. With constant focus on the strategic priority of ‘Innovate and Excel’, we are expanding our offerings and improving our engagement, which will further aid to consolidate Tata eFee and Ductura as the preferred brands in their respective chosen product segments.

During the year, we carried out 46 technical service sessions virtually to customers of both PI and DI Pipes businesses despite the various challenges. Leveraging our financial strength and longer term relationships with our customers, we continue to offer innovative financial support schemes to our key customers. Our revenue coverage under this unique offering stood at 20% in FY 2020-21.

During the year, we further segmented our customers and created a customer group called “Key & Elite Customers” based on a well-defined selection criteria. These customers are now supported with a unique engagement plan and service offerings, thereby, strengthening our relationships with them. We continued to maintain >75% of DI pipes sales to these “Key & Elite Customers” in FY 2020-21 while ensuring >85% order booking with this customer group. Similarly, in order to connect and support our foundry customers, we leveraged the digital platform to organise 22 knowledge sharing webinars covering >375 customers across almost all market clusters in the foundry sector. We have thus created forums/mechanisms that go a long way in strengthening our relationships with customers while improving their

SDGs impacted

PI complaints (per LT)

0.6

1.3

2.2

11

2016-17 2017-18 2018-19 2019-20 2020-21

DIP complaints (per LT)

79

77

11

2016-17 2017-18 2018-19 2019-20 2020-21

Customer satisfaction index (DIP)

93.59191

2018-19 2019-20 2020-21

Customer satisfaction index (PI)

95.49593.1

2018-19 2019-20 2020-21

27

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Page 6: Purpose-led strategy - Tata Metaliks

Robust People Practice

Fostering a culture of safety, diversity, and performance

We believe in developing and nurturing a performance-driven and engaged workforce with a digital mindset, which has become imperative for businesses to deal with evolving organisational challenges. We remain devoted to developing and sustaining a skilled workforce, capable of meeting the diverse needs of our stakeholders, to attain our objective of being the ‘employer of choice’. We further provide an enabling work environment that promotes equality and diversity.

To attract, nurture and develop talent with particular focus on high-potential talent

• Talent management and capability development

• Improve employee productivity

• Enhance workforce engagement and satisfaction

• Leverage digital across HR processes to improve employee experience

• Safety• Harmonious

industrial relations• Employee welfare

and engagement• Diversity• Emergency

preparedness

Material topics Focus areasStrategic priority

SDGs impacted

Striving for health and safety excellenceWe are relentlessly striving to make safety a non-negotiable aspect of our business and transform it to the next level of maturity. The Company’s safety and health responsibilities are driven by commitment to provide a safe workplace for the workforce and society at large. Backed by a robust management system framework and a sound safety governance structure, we endeavour to achieve our objective of ‘Zero harm’. We deploy our strategy through 6 safety strategic priorities - Build Safety Leadership Capability, Improve Competency & Capability for Hazard Identification & Risk Management, Excellence in Process Safety Management, Contractor Safety Risk Management, Change in Behaviour and Attitude towards Safety, and Improve Health & Industrial Hygiene, which act as the focal points behind several initiatives in our Safety Excellence Journey.

Build safety leadership capabilityThe organisation has successfully embedded safety as a value that permeates decisions at every level. The Senior Leadership team continues to push for improvement in different areas with the involvement of shopfloor employees, including Contract Labour, to identify and address potential hazards and risks throughout the organisation. Several trainings and workshops are organised regularly to develop a Risk based approach across the organisation; some of them are highlighted below:

• Re-calibrated HIRA Workshop

• Management of Change (MOC)

• E-Learning module on Safety standards

• “Adhinayak” Programme for Safety leadership development for workers

• Skill-based trainings in areas including LPG operation and lifting tools and tackles

• Driver Assessment Programme.

Improve competency and capability for Hazard Identification and Risk Management (HIRA)We firmly believe that everybody should be protected from occupational risks they could be exposed to. Accordingly, we follow a safety risk management process involving risk analysis, risk assessment, and risk control practices. Our risk management process, goes beyond legal context and control processes but factors in all processes. A detailed risk assessment of several processes, helped develop a safety risk heat map which aids in setting priorities in specific areas with dedicated action plans. Key developments during the year were:

• Assessment of annual shut down risk

• Implementation of Risk Heat Map process

• Implementation of 17 road safety recommendations inside the plant

• Improved operational excellence through TPM, digital interventions and automation

Excellence in process safety managementThe Company acknowledges that Process Safety and Risk Management (PSRM), when applied robustly, will reduce the likelihood of any catastrophic event. Therefore, a firm foundation in PSRM has been established across the organisation in pursuit of making process safety ‘a way of life’. We have initiated building PSRM competencies in the organisation through training, coaching and hand holding to create adequate awareness and consciousness towards PSRM. During the year, several employees were trained on PSRM competencies, in collaboration with Tata Steel, who have now became torchbearers of PSRM in the plant. We have now extended the process and initiated a study on high hazard processes in our DI Pipe plant.

Contractor Safety Management SystemOur operations and maintenance and project activities engage a sizeable contract

workforce. We have established a Contractor Safety Management System (CSMS). Under this process, a Contractor Competency Assessment (star-rating system on a scale of 5) is mandatory for all our service providers. In line with our commitment to safety, we deploy only vendors who score more than 3-stars and above on high-risk jobs. Workshops from JN Tata Vocational Training Institute (JNTVI) and incentive schemes are used to motivate 3-star rated vendors to upgrade. We also facilitate up gradation of 2-star vendors by 4 and 5-star vendors. This framework has helped us cascade our focus on Safety across our value chain.

Safety training (hours)

24,656

34,535

16,67815,81813,750

2016-17 2017-18 2018-19 2019-20 2020-21

Lost-Time Injury Frequency Rate (LTIFR) trend

0

0.28

0.100.11

0.57

2016-17 2017-18 2018-19 2019-20 2020-21

Near-miss cases

1,970

3,250

1,285

11126

2016-17 2017-18 2018-19 2019-20 2020-21

100% Coverage of Felt Leadership safety training programme

7,289 Safety visits (nos.)

29

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Page 7: Purpose-led strategy - Tata Metaliks

13% Affirmative Action Workforce

8% Women in officer category

Way forward Our focus to foster Robust People Practices will be driven with our objective of ‘Zero Harm’. We will continue our efforts to enhance our safety competence to build a mature safety culture for a future-ready workforce. A risk-based culture, innovations in process safety, and behavioral safety, supported by the strong commitment of our leadership will continue to drive our safety excellence journey.

Our HR&IR function will remain focused to attract and nurture competent and high-potential talent and to build & develop a highly productive and future-ready workforce. Our focused interventions to enhance productivity, performance and digital quotient will remain core areas to navigate the organisation to the future.

4.6/5 Training effectiveness

Organisational cultureOur HR strategy is focused on four key priorities: Organisational engagement, Talent management, Capability development, and Productivity improvement.

Talent ManagementAttracting and nurturing Talent is a key to the success of any organisation. At Tata Metaliks, we focus on hiring young talent to nurture and develop them in our value system. We hire talent from different geographies, cultures and industries to build a culture that promotes meritocracy. We leverage Artificial Intelligence (AI) to screen and select suitable talent, which is a part of our virtual campus engagement campaign, that helps us reach out to students from reputed graduate and management colleges retaining. An engaging and gamified on-boarding process provides a unique joining experience for all recruits.

We have established an integrated talent management framework to identify and develop high-potential employees to grow with the organisation. These ‘Hi-potential’ employees go through an ‘Assessment and Development Centre’ which leverages individual’s strengths and prepares them to take on higher roles and responsibilities. There is also special focus on development of target employee segments. Specific interventions like check-in conversations,

continuous feedback, coaching, management/ leadership development programs, reverse mentoring and coaching programs, action learning projects prepare and groom them for leadership roles. We are working to strengthen and fast-track career progression and job rotation policies to accelerate employee development and growth. With focused interventions, the attrition levels for our high-potential employees has been very low.

Diversity at the coreAs an equal opportunity employer, we continue to provide growth opportunities irrespective of their race, gender, caste, creed religion, and other such discriminatory factors. Special efforts are also made to attract employees under the Affirmative Action programme.

Learning and development in the digital futureAt Tata Metaliks, learning and development remains a priority to ensure high employee performance with targeted interventions through effective and customised learning groups. We deploy the 70:20:10 model for training and development where 70% focus is on the job learning, 20% through coaching and mentoring, and 10% through classroom learning. Learning through classroom and on-the-job are also driven through TPM at the shop floor. Digital remains the focal point in our learning and development journey. We extensively use e-learning landscape to train employees on technical, managerial, digital modules, and online resources on Knowledge Management for interactive learning experience. Additionally, we also provide various modules by industry leaders through Tata Management Training Centre (TMTC) and other avenues so that employees can access them anytime,

anywhere, aligned to our digital strategy of ‘Business on Mobile’. In order to enhance employee experience and promote team building, new recruits are sent to Tata Steel Adventure foundation for a unique trekking experience coupled with development of leadership acumen.

As we progress to embrace Digital across all verticals, it is imperative to build digital capability across all employee segments. We have partnered with experts to build our digital culture and capability. Dedicated interventions such as Reverse Mentoring, Digital Champions, Digital Boot Camps, Digi Talks, Digital Khabar, Ideation platform, Knowledge Management portal, participation in Tata Innovista, Digital Kaizen, and Digital mindset activation workshops help harness growth through digital competency of various employee segments. Augmented Reality (AR)/ Virtual Reality (VR) trainings have commenced in areas of Safety and other areas, in addition to shop floor trainings. Technical competencies are being enhanced through tie-ups with academic institutions, subject matter experts, industry visits, and more. Detailed learning and benchmarking sessions also help improve an organisation’s overall competency in areas of operations, digital, automation, to name a few.

Engagement and Well-beingIn line with our culture and values, we pay special attention to the well-being of our employees and regularly refresh various employee-friendly policies. Some of these policies include availability of health and wellness app, family benefit scheme, leave bank policy, enhanced medical coverage for critical diseases, ‘Corona Kavach’ policies, and others. Our Rewards & Recognition app helps employees receive instant motivation and encouragement.

During the pandemic, our thrust on engagement shifted towards employee safety due to the unprecedented workplace transformation brought in.

Engagement initiatives including interactive sessions, walkathons and virtual Tata Metaliks Premier League in the form of games, helped keep up employee morale in the new normal. Various webinars were also conducted on health, mental well-being, spiritual sessions, story-telling sessions by well-known speakers to build inner resilience of our employees. Our senior leaders remained in close touch with employees through virtual dialogues, town halls, COVID feedback, COVID support group and other formal and informal channels of listening, care and nurturing

Quintessentially, engagement with the community and their well-being by way of relief work, campaigns and other support was provided by our employees through focused interventions in the Paschim Medinipur region.

In addition to the relentless support extended to employees for testing and vaccination, the 24x7 well-being app supported medical consultations including guidance on home quarantine. We also partnered with a number of medical institutions to ease hospitalisation concerns.

Industrial relations remained cordial throughout the year despite adverse and challenging business environment during the pandemic and resultant lockdown. The enthusiasm and resilience of the workforce and Unions have not only enabled the Company to navigate through the uncertainties, but also improve overall productivity.

The outcome of our efforts were reflected in the Engagement study where the overall engagement levels have significantly increased and the share of our actively engaged employees has more than doubled.

Behavioural changeOur safety excellence journey has evolved from a traditional ‘compliance-driven’ framework to a modern ‘behaviour-centric’ safety culture. In our journey to transform the safety culture, all meetings commence with a mandatory Safety Talk. To further sustain the constant focus on safety awareness, we not only sensitise our workforce by sharing learning films and video clips of safety incidents, but we also provide trainings through live examples at our Safety Park. Moreover, Reward & Recognition schemes on Safety, Consequence Management framework, also help to promote and sustain the appropriate safety behaviour in the organisation.

Improve employee health and industrial hygieneA full-fledged function for occupational health services at the plant provides preventive care to all employees. These services lay emphasis on proactive measures like health surveillance and awareness programmes for prevention and control of occupational and lifestyle-related diseases.

As the COVID-19 pandemic imposed several challenges with social distancing, and a constant feeling of caution and vulnerability, self-awareness, empathy, and proactive risk management proved helpful in navigating these challenges. As a proactive measure, we also conducted an external audit by a reputed international agency on COVID-19

preparedness. This helped us to re-affirm our practices and focus on our areas of improvements.

FY 2020-21 has been an unprecedented year and the Company has been able to navigate the pandemic and its impact quite well; one of the enablers for a relatively smooth sailing has been the development of a positive safety culture within our organisation. As we work towards achieving the goal of ‘Zero harm’, we constantly strive to learn and adopt best practices from our industry and beyond.

Employee productivity in PI (THM/employee/year)

1,235 1,458

1,289 1,252

992

2016-17 2017-18 2018-19 2019-20 2020-21

Employee productivity in DIP (TFP/employee/year)

215 262269259245

2016-17 2017-18 2018-19 2019-20 2020-21

14 out of 16 Health Index

4.08/5 Employee engagement score

2.5% Women in permanent workforce

30 31

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Page 8: Purpose-led strategy - Tata Metaliks

Responsible Corporate Citizenship

For people and the planet

Addressing environmental concernsOur environment conservation interventions revolve around:

• Improving air quality

• Reducing carbon footprint and energy consumption

• Reducing freshwater consumption by recycling and treating used/wastewater, loss reduction and rainwater harvesting

• Waste management using the principles of 3R (Reduce, Recycle and Reuse)

We have engaged with the National Environmental Engineering Research Institute to improve overall air quality at the plant. Notable initiatives are:

• Installation of de-dusting system, fume extraction system (FES) and Ladle Repair Shop (LRS), wind shelter fencing for yards, augmentation of de-dusting systems, deployment of fog canon systems & mechanised road sweeping machine to reduce point source and fugitive emissions

• Installation of Continuous Ambient Air Quality Monitoring Station (CAAQMS) for 24x7 ambient air quality monitoring

At Tata Metaliks, we remain committed to make the planet a better place by contributing to the holistic growth of the community. Through our concerted efforts, we are continuously contributing to sustainability by reducing our overall carbon footprint by adopting energy efficient technology and increasing usage of renewable energy.

To reduce carbon footprint, improve air quality and reduce water consumption

• Environmental sustainability

• Expanding community outreach through CSR activities

• 5-year Water Sustainability Project, Jal se Jeevan

• TML 300 Schools project

• Air and GHG emissions

• Water conservation

• Waste management

• Increased ESG disclosures

• Increased stakeholder engagement

• Governance• Compliance• Community

engagement

Material topicsFocus areasStrategic priority

SDGs impacted

Energy management We depend on various forms of energy such as primary sources (coke, liquid fuel, LPG, and grid power), and secondary sources (process waste heat and Blast Furnace Gas or BFG). Our efficient energy usage helps in substantial energy savings.

We have undertaken several projects during the last five years, such as:

• Installation of variable frequency drives harmonic filter in induction furnace

• Installation of energy efficient lighting in different plant locations and solid and liquid fuel conservation through process

Energy consumption intensity in PI division (GJ/THM)

17.7818.7019.5819.6219.66

2016-17 2017-18 2018-19 2019-20 2020-21

Energy consumption intensity in DIP division (GJ/TFP)

2.282.362.232.21

2.81

2016-17 2017-18 2018-19 2019-20 2020-21

improvements and innovations such as burner modification in annealing furnace and CPPs to reduce oil consumption

• Deployment of e-vehicles for fleet management and magnetic resonator and GPS installation in heavy vehicles

As a result, the energy intensity has continued the downward journey.

World Environment Day, June 2020

Rooftop solar hot water plant

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Recycling of process and other waste We commissioned a thickener followed by an agitator system, to recycle and use 100% of gas cleaning plant sludge in the sintering process. This not only reduces natural resource consumption but also enhances utilisation of process waste. For bio-degradable solid waste generated from canteens, a bio-gas plant has been installed and made operational. E-waste and hazardous waste storage locations have also been revamped and considerably improved.

98% Material recycled into process

2,450 m3 Water recycled every day

100% Coke fines and iron ore fines recycled into processWater consumption in PI

division (m3/THM)

1.891.951.961.9

2.34

2016-17 2017-18 2018-19 2019-20 2020-21

Water consumption in DIP division (m3/TFP)

1.451.481.41.431.36

2016-17 2017-18 2018-19 2019-20 2020-21

Conserving every drop Through our existing effluent treatment plants (ETP) and water recirculation plants, we are treating process wastewater and recycling it back into the plant processes such as cooling tower feed, pig quenching, slag granulation and cement lining as well as for low-end uses like dust suppression to reduce ground water consumption. Impactful interventions in water cooling systems in blast furnaces and allied facilities, wastewater re-circulation system in DI Pipe operations, augmentation of DI Pipe ETP for efficient recycling of wastewater, and atmospheric water generators are some of the important water conservation measures taken. Installation of tap aerators, nozzles and sprinklers, level controllers for water tanks as well as bio-toilets have contributed significantly to reduction in our water consumption. Arresting water leakages through TPM and other initiatives, optimising cooling towers help reduce water consumption further.

Sustainability in action

Way forwardBeing a value-driven organisation, we aim to enhance our environmental performance through improving air quality by reducing 12-15% carbon intensity along with realising our aspiration to become water positive by FY 2024-25.

Carbon emissions intensity in DIP division (tCO2 e/TFP)

0.610.630.590.61

0.77

2016-17 2017-18 2018-19 2019-20 2020-21

Carbon emissions intensity in PI division (tCO2 e/THM)

1.731.871.951.962.07

2016-17 2017-18 2018-19 2019-20 2020-21

Total carbon emissions (LtCO2e)

9.19

11.3811.511.04

9.33

2016-17 2017-18 2018-19 2019-20 2020-21

Reducing our carbon footprint Our waste heat recovery-based as well as BFG-fired power plants meet ~80% of our power requirements. We have adopted different solutions like PCI, oxygen enrichment (at the MBF and sinter plant) and efficient cooling systems for MBFs to reduce energy and process-related GHG emissions.

Under renewable energy initiatives, we have taken several actions to reduce carbon emission through clean energy (solar) adoption:

• Installation of solar street lights along with rooftop solar power systems–10KWp for guest house and 18KWp for truck parking areas

• A rooftop solar hot water system at central canteen has been installed to reduce LPG consumption. Moreover, a 1 MWp grid-connected battery-less rooftop solar power plant has also been installed in DIP division

5,000 nos. Tree bank of saplings developed

1MWp solar panel installed in DI pipe plant

One of the many water conservation ponds excavated

Our sustainability initiatives include outside-fence activities based on a detailed study. The ‘Jal Se Jeevan’ initiative is driving our vision to become ‘Water Positive’ by FY 2024-25 through implementation of water sustainability structures in 25 villages. During the year, we progressed with several interventions in line with the roadmap, which are on the verge of completion. Furthermore, we have not only taken due actions to reduce ground water consumption but are also exploring alternate sources. During FY 2020-21, a comprehensive decarbonisation strategy was adopted to be carbon neutral by 2050. This roadmap reaffirms our commitment towards a sustainable tomorrow.

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Corporate Social Responsibility

Aims to develop a pool of skilled and employable youth to be gainfully employed

• Skill development training in employable trades at the Tata Metaliks Skill Development Centre (TMSDC) in partnership with Tata Strive

• Sponsoring three-year Diploma Engineering at NTTF-Tata Steel Technical Institute for matriculate youth

• Sponsoring three-year General Nursery and Midwifery course for intermediate youth

Aims to ensure well-being of people by providing safe drinking water, basic hygiene, sanitation and healthcare

• Providing potable drinking water in villages through deep bore wells, overhead water tanks, network of pipelines and water taps in convenient locations

• Construction of toilet blocks and drainage systems

• Construction of bathrooms for women • Wastewater management system • Introduction of solar water pumps in

drinking water projects to promote green energy and reducing the financial burden of paying the electricity bills

• Ambulance service in Kolkata

Aims to create avenues for Dalit and tribal communities for their cultural and institutional awakening

• Empowering Dalit and tribal communities

• Promotion of tribal culture and language

• Effective living and leadership training for community members

Organised Regional Samvaad (2nd West Bengal Edition) for the tribes of West Bengal. Representatives of nine (9) tribes attended the programme.

Organised 5 MRA – Effective Living and Leadership Training Programmes (4 online and 1 residential) for the youth and community members

Celebrated various important days with community members such as International Women’s Day, International Health Day, World Water Day etc. to create awareness among the community members

Emphasising well-being of communities near us We undertake need assessment surveys at periodic intervals to analyse community requirements vis-à-vis our capability to support them. These steps help us identify our CSR and Affirmative Action priorities. CSR at Tata Metaliks primarily focuses on the well-being of the people in No. 4 Kalaikunda Gram Panchayat of Kharagpur 1 Block in Paschim Medinipur district of West Bengal.

Employee volunteerism Employee volunteerism is a means to create stronger employee bonds and helps instil a sense of purpose. Our employee volunteers contribute towards the community by associating themselves with different CSR activities.

• Plantation drives in the community• Participating in a football match

organised by the Company for employees and TML CSR football trainees

• Fostering engagement of the employees with the community through virtual training/ learning sessions

COVID reliefOur employees also participated in distribution of dry ration kits to disadvantaged households in the nearby communities reaching out to ~3000 beneficiaries.

Way forwardWith our various social engagement initiatives, we will continue our efforts towards our communities by aiding their education, enhancing employability through skill development trainings, and improving health by supplying 100% safe water. Additionally, we are increasing our CSR coverage by five villages every year to enhance the lives of more people.

5,000+ BeneficiariesAA ~2,600

290 BeneficiariesAA ~70

850+ BeneficiariesAA ~530

4,289 Employee volunteering hoursWe aim to improve access to education

through• Infrastructure development in

Government primary and high schools• Tata Metaliks Scholarship for

meritorious students from Dalit, tribal and below-poverty-line families in high schools and colleges

Improving quality of education• TML 300 Schools Project has been

implemented to ensure equitable and quality school education with special focus on marginalised tribal communities in Kharagpur - 1 block. We aim to create a replicable and scalable model by making the entire block a Child Labour Free Zone (CLFZ). The project has been initiated in 2 (two) Panchayats

14,300+ BeneficiariesAA ~7,800

• Youth-led initiatives to improve education for drop-outs, health and nutrition among adolescents and youth

• Science, Technology, Engineering, Mathematics learning through mini Science Centres in high schools

• English and computer learning for high school students

• Integrated Learning Enhancement and Acceleration Programme to assist the students with learning difficulties

• Capacity building of Government school teachers and members of school management committees

• Under-15 football coaching to promote sports and discipline

• Adult literacy classes for women

Jal Se Jeevan As part of our water sustainability journey to become water positive, we launched ‘Jal Se Jeevan’. The project is in line with a holistic water sustainability strategy to create water conservation structures and allied initiatives in 25 villages. Till date we have:• Excavated 4 community ponds and

have more than doubled their water storage capacity

• Planted more than 5,000 fruit and forestry plants in 636 households

We remain focused to:• Ensure piped water and sanitation/

wastewater management to target 25 model villages

• Become water positive by FY 2024-25

Employability

Aims to provide additional income to women through farm/off-farm activities as well as developing/supporting Dalit and tribal entrepreneurs within our value chain

• Livestock-based livelihood model project on goat rearing, poultry farming, duck rearing and fish rearing

• Vegetable cultivation• Mushroom cultivation• System of rice intensification • Capacity building and handholding of

Dalit and tribal entrepreneurs1,000+ BeneficiariesAA ~760

Entrepreneurship

Empowerment

Education

Essential Enablers

`422 lakh Contribution for CSR

24,000+ Beneficiaries

11,750+ CSR beneficiaries- Affirmative Action

27 Vendor partners- Affirmative Action

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Focus on Downstream/Value add

Widening our scope Ductile Iron Pipe as a value-added productBy virtue of its unique physical properties, DIP has wide usage across various applications in water and sanitation sectors. Its flexible push-on joints do not leak at high pressure, even when deflected, thus, making them easy to lay and join. DIP is anti-corrosive with high tensile strength, enabling it to handle higher pressure and stress compared to cast iron. DIP also offers higher beam strength, resistance and traffic load, making it technically and environmentally far superior to non-metallic pipes.

Sectoral optimismIndia’s urban population is expected to rise sharply and water demand will exceed supply by 2-fold by 2030 as per Niti Aayog. In order to address the looming water stress in the country, Govt of India (GOI) consolidated the Water ministries under Jal Shakti and launched “Jal Jeevan Mission” as its flagship initiative of “Har Ghar Jal” under JJM Rural to be completed by 2024. In the Union Budget of 2021, GOI complimented the JJM Rural initiative by announcing JJM Urban and Swachh Bharat 2.0 to be completed over the next 5 years. The launch of these flagship initiatives have also led to commensurate increase in the central budget for the water and sanitation sectors. Similarly, there have been significant state-led investments in the Irrigation sector as well. Thus, there will be sustained focus and investments in all the three major sectors – water, sewerage/sanitation and irrigation – in the medium to long-term. Tata Metaliks had foreseen the opportunity and decided to capitalise on it by doubling the DI pipe plant capacity. Despite the challenges posed by the ongoing COVID-19 pandemic, the expansion plan is underway, Phase 1 of which will be completed in FY 2021-22 and Phase 2 in H1 FY 2022-23.

The potential of water infrastructure in India underpins our strategy to move up the value chain and enter the DI Pipe business. We are currently building our capabilities through our brownfield expansion, which is expected to double our capacity once commissioned.

To grow in the value-added downstream business to serve the water infrastructure sector of India

• Capacity expansion for DIP to 4 LTPA

• Extend domestic footprint

• Enhance presence in different geographies

• Customer focus• Product

stewardship• Market presence• Emergency

preparedness

Material topicsFocus areasStrategic priority

Growth project (till March 31, 2021)

~90% Project engineering completed

~79% Project cost committed financially

~32% Of project cost spent

~48% Civil work completed

~57% Structural construction completed

SDGs impacted

Growth strategy With the expansion already underway, Tata Metaliks is in the process of expanding its product range in terms of diameters, classes and linings/coatings. This will enable us to expand its scope of participation in the water infrastructure ecosystem while targeting new geographies and customers further

strengthen its industry position. We are using digital platforms for engineering, procurement and project monitoring to implement the project as per plan. The new DIP facility will be a digital smart factory with best-in-class automation leading to higher productivity and improved quality and safety.

Glimpse of the expansion project underway

Glimpse of our expansion project

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