MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS
Two-wheeler
2019-20 marked the successful transition to BS-VI for the Indian 2-wheeler industry. A
global first of leapfrogging from Stage IV - Stage VI emission norms in 3 years. However,
the domestic two-wheeler industry recorded a sale of 17.4 Mn units in 2019-20, a decline
of 17.7% from 21.2 Mn units of 2018-19. 16% was the decline in the first half of the year
on back of weakening consumer sentiment, falling GDP growth forecasts and increased 2W
prices due to insurance cost increases and mandatory safety regulations. The decline
further intensified in second half to 20%, owing to BS-VI transition, wherein 2W prices
further went up by an average of 15%. The year ended with start of the single minded
struggle against CoVID-19 pandemic.
The scooter category declining 16.7%, with 5.6 Mn Units in 2019-20 over 6.7 Mn Units in
2018-19. The category share increased marginally to 32% in 2019-20 from 31.6% in 2018-19.
The motorcycle category also declined by 17% over last year. The category share for
motorcycle settled at 64.4%. Within motorcycles, the premium segment with a category share
of 9.3%, declined by 25% from 2.15 Mn units in 2018-19 to 1.61 Mn units in 2019-20. The
commuter segment category share however moved to 50% while volumes declined by 16% to 8.7
Mn units in 2019-20 from 10.4 Mn units in 2018-19.
In the international market, two-wheeler industry had a growth of 7% over last year.
Stable price of crude oil and continued growth in Africa propelled the growth of exports.
Three-wheeler
Overall three-wheeler small passenger industry (3 plus 1 segment) declined by 12% in
2019-20 (from 8.45 lakh units in 2018-19 to 7.45 lakh units in 2019-20). Domestic industry
declined by 14% and exports market declined by 11% in 2019-20 over last year.
BUSINESS OUTLOOK AND OVERVIEW
Indias GDP growth has decelerated to 11 year low estimated at 4.7% in 2019-20. In
2020-21, the economy will see significant challenges owing to the impact of CoVID-19
pandemic and the resultant interruption to economic activity which is beginning to reopen.
Economic activity and lifestyles will be rebuilt, factoring in coexistence with
CoVID-19. Social Distancing (SD) and Work From Home (WFH) practices will see greater
prevalence. These new long-term practices of SD could see consumer preferences change
towards personal mobility, which could prove to provide some opportunity, especially to
the 2-wheeler industry. The Company is cognizant of this opportunity, and well poised to
leverage this opportunity with its superior BS-VI offerings across the widest range of
personal mobility needs. The restriction on public mobility and impact on many sectors of
the economy will affect GDP, disposable incomes, consumer sentiment and the auto industry
as well. Consequently, a very sharp decline in the first quarter of 2020-21 is expected,
which may partially alleviate in the following quarter, with any upside possibilities only
playing out in the later part of the year. BS-VI Two wheelers offer consumers affordable,
safe and eco friendly personal transport and may see less impact due to the need for such
solutions. The favorable reservoir levels, good rabi output and possibility of normal
monsoon may support agriculture growth. It is to be noted that much of the sale of two
wheelers are in semi urban and rural areas which could see some benefit of this. As
pandemic CoVID-19 is affecting most countries across the globe, export of two-wheeler is
likely to see a decline during initial part of the year. A sustained trend of low crude
prices may also impact export market growth in oil dependent economies of Africa. However,
the economic impact of CoVID-19 is expected to be more pronounced in the markets of LATAM,
whereas the African countries seem to be lesser impacted, and the core demand may return
sooner.
Strategic partnership with BMW Motorrad
The Company has a strategic partnership with BMW Motorrad to develop and manufacture
sub-500cc bikes both for domestic and global markets. The Company has produced over 72,000
units of BMW 310cc motorcycle till date.
Norton Acquisition
The Company acquired Norton Motorcycles, in an all-cash transaction for a consideration
of GBP 16 Mn through one of the Companys overseas subsidiaries. The "Norton",
"Commando", "Dominator" and the more recent "V4RR" are part
of the portfolio of this historic motorcycle Company. The first of many Isle of Man wins
dates as far back as 1908. An integral part of British popular culture, identity and
history, it has a loyal following across Europe.
This acquisition enhances the Companys global portfolio bringing in complementary
product segments, markets and capabilities. The Company also believes that Norton
Motorcycles can leverage its additional geographical network reach and global supply chain
capabilities to expand to new markets and audiences with existing and upcoming products.
New Product Launches and Initiatives
During the year 2019-20, the following new products and variants were launched.
TVS Jupiter Grande:
TVS Jupiter has become a strong household brand in the last 6 years since inception,
with more than 3.5 Mn happy customers by FY 2019-20. Continuing the journey of providing
"Zyada ka Fayda", TVS Jupiter Grande SmartXonnect was launched during festival
season (October 2018) making it the first Bluetooth enabled scooter in the 110cc segment.
Apart from having a differentiated visual appeal, TVS Jupiter Grande SmartXonnect is
loaded with practical, useful features such as, call & message notifications, high
speed alert, helmet reminder, trip data and many more.
The brand communication campaign named, Dil Ka Mileage went on to bag the prestigious
Marketing Campaign of the Year Award at the Global Awards for Retail Excellence event by
ET NOW.
TVS Jupiter Classic BS-VI was the first BS-VI offering by the Company launched in
November 2019.
TVS Apache:
TVS Apache Series crossed 3.8 Mn global customers milestone in March 2020. Through the
years, TVS Apache has stood for providing an unrivalled experience backed by its rich 38
years of TVS Racing pedigree, technological prowess and stylish design. Over the last 14
years, the brand has developed a host of premium offerings, ranging from 160cc to 310cc,
creating aspiration along every step of evolution. TVS Apache Series has multiple customer
experience properties like AOG (Apache Owners Group), ARE (Apache Racing Experience), APP
(Apache Pro Performance), TVS Racing Training School & One Make Championship, all of
which bring the Apache owners together to celebrate the spirit of Racing.
The 1st edition of TVS Racing MotoSoul Days, the biggest bike festival for
TVS, was organized in October 2019 in Goa that saw a strong participation of 1000+
motorcycle enthusiasts. It was also a stage for the launch of TVS Racing Performance
Gears, a range of high performance and quality riding gears, helmets and merchandize for
TVS Apache Customers.
The end of the financial year 2019-20 saw the launch of the TVS Apache RR310 BS-VI with
many first in segment features making it one of the most technology-rich motorcycles in
its class. The motorcycle continues to resonate with lots of enthusiasts, thus increasing
its loyalists exponentially across the globe.
In the transition to BS-VI, the TVS Apache Series has received a major update that
includes a style refresh and an addition of many first in segment features. The entire
series is now powered by RT-Fi (Race Tuned Fuel Injection) technology which ensures
delivery of best race performance at all driving conditions. The 4V Series comes with a
best in class LED headlamp while the RTR 200 4V also boasts of the TVS SmartXonnect. One
of the most loved features of the RTRs - the signature exhaust note has gotten racier and
more refined. TVS Apache RR310 has seen the biggest upgrade with a multitude of best in
class features - new Titanium Black dual tone graphics scheme, Throttle by wire
technology, customizable 5" TFT cluster, TVS SmartXonnect with advanced ride analysis
and 4 ride modes of Track, Sport, Urban, and Rain (first in segment). The entire
series also features the introduction of first in segment Glide Through Technology (GTT)
which allows the rider to easily navigate through traffic thus reducing rider fatigue.
TVS Radeon:
A unique blend of sturdy build, robust style and plush comfort, TVS Radeon is targeted
at the discerning progressive Millennials of Middle India. TVS Radeon has upped the choice
for everyday commuters and is successfully creating lot of excitement & delight
amongst its consumers. Over 2 lakh proud consumers overjoyed with their Buland choice.
TVS Radeon has received many accolades and became one the most awarded commuter
motorcycles in its early days itself. The Commuter of the Year Celebratory Special
Edition stays true to the TVS Radeon Buland DNA and celebrates its spirit.
TVS Radeon BS-VI comes with next-gen Eco Thrust Fuel Injection (ET-Fi) Technology,
which boasts of 15% better mileage along with enhanced engine performance, better
durability & smooth riding experience. TVS Radeon offers 20 Best in Class features
including chrome bezel headlamp with DRL, car like speedometer, stylish petrol tank with
ribbed thigh pads, largest cushion seat, solid suspension among others. The riding
experience is made seamless with an optimum seat height, high ground clearance, long
wheel-base and handy functional features like USB charging spot and convenient pillion
grab-rail.
With distinctiveness and practicality, TVS Radeon continues to live true to its promise
to Live Strong Ride Strong (JIYO BULAND BADHO BULAND).
TVS XL100 HD i-TouchStart:
TVS XL100 crossed a new milestone of 3 Mn customers since its launch in 2015 and a
Special edition variant was launched to mark this celebration.
Further, a new variant TVS XL100 Comfort i-TouchStart focusing on entry level commuters
was also launched. This variant comes with many style features like head lamp fairing,
cushion back rest, chrome finish elements along with mobile charging option. With compact
light weight design, new suspension setup, auto gear, this variant would be an ideal
choice for those seeking affordable easy to ride product for everyday commute -
including elderly people & women. The product series is now upgraded to meet BS-VI
emission norms and launched with exciting features for the customers. Now TVS XL100 series
is powered by ET-Fi technology which delivers 15% more mileage, excellent power and pickup
with smoother engine. Also, many useful customer friendly features are added to improve
convenience and safety - easy on-off combo switch, hydraulic suspension, wider platform,
comfortable handlebar, low fuel indicator, roll-over switch off, mobile charger and more.
TVS XL100 series has advanced in terms of technology and benefits yet remains affordable
to the customer and continues to offer high value.
TVS iQUBE:
Launched in January 2020, TVS iQUBE marked the foray of Company into the Electric
Vehicle segment. The TVS iQUBE is a smart mobility solution that promises to deliver a
convenient, personalized, connected and eco-friendly experience. It comes equipped with
SmartXonnect, advanced features like Geo-fencing, Ride Statistics, Telematics, Remote
Charge Status and Navigation Assist.
With a top speed of 78 kmph, a range of 75 Km in a single charge and features like
Q-Park Assist, the TVS iQUBE redefines style, comfort and riding experience. A dedicated
public charging ecosystem spanning across 10 dealerships in Bengaluru further enhances
customer ease and experience.
With TVS iQUBE, the Company also leveraged digital channels for vehicles booking and
sales. A digitally enabled purchase process allows seamless home charging unit
installations providing a truly hassle-free experience to the customers. The product has
seen extremely encouraging response from the customers. With the increased focus on
Electric Vehicles, the TVS iQUBE is expected to be a strong contender in this space in the
times to come. TVS iQUBE will increase its presence in India in a phased manner, having
started with Bengaluru and gradually moving to other key cities.
TVS King:
TVS King got a new variant in May 2019, with the introduction of TVS King Duramax with
alternate fuel options like Petrol, LPG and CNG. This new variant comes with the 225 cc
engine equipped with latest Liquid cooled technology, providing a great combination of
speed, power and performance. This also ensures low wear and tear of engine parts, leading
to higher life of engine. The brighter headlamp and strengthened B and C Pillars add
better safety to driver and passengers. The new and sublime changes in both exterior and
interior of DURAMAX brings a refreshing change and pride of ownership. The new look
dashboard, styling handlebar with compact speedo cluster, integrated fuel gauge and dual
tone seat add style to the variant. TVS King Duramax is an ideal choice for those who want
to embrace technology to make their daily earnings better.
TVS King family (comprising Deluxe and Duramax variants) is now upgraded to meet the
new BS-VI norms. The new BS-VI variants come with integrated starter generator, silent
i-touch start, single start-stop switch, anti-wheel lock control and automatic altitude
fuel correction. The bi-fuel option will be unique in this category. TVS King will
continue to provide best combination of adequate power, mileage, comfort and lower running
cost, delivering a great value to the customer.
Domestic Sales
The Company achieved sales of 24.1 lakh units of two-wheelers in the domestic market
compared to sales of 31.4 lakhs in 2018-19. Companys domestic volumes declined in 2019-20
mainly due to falling consumer sentiment and rapid increase in cost of ownership towards
higher mandatory insurance costs and enhanced safety norms. At the end of the year,
towards a planned transition from BS-IV to BS-VI stock was effected throughout the trade.
In domestic motorcycles, the Company achieved sales of 7.6 lakh units and registered a
decline of 25% over 2018-19. TVS Apache however, was able to garner a substantial share of
the Premium motorcycle market with 3.7 lakh units, posting a decline of only 21%, while
the Premium Motorcycle industry declined by 25% in 2019-20 against 2018-19.
In domestic scooters, the Company achieved sales of 10.2 lakh units and registered a
decline of 18% over 2018-19. However, inspite of the headwinds, TVS NTORQ 125 sales grew
by 24% in 2019-20 and TVS NTORQ 125 Racing Edition created a great momentum for the brand.
The product continues to delight the customers and has garnered several accolades since
its inception.
The Company also invested time for training all its service advisors and mechanics
(18,000 employees of the extended enterprises) adequately across the country on BS-VI
products and technology.
Exports sales - two-wheeler and three-wheeler
The Companys two-wheeler exports in 2019-20 were at 6.79 lakh units and witnessed an
improvement with a growth of 9.2% over 2018-19.
Three-wheeler exports during the year reached 1.62 lakh units and recorded a 15.9%
growth over 2018-19.
Opportunities and Threats
The CoVID-19 pandemic is causing paradigm shifts in consumer behavior affecting many
industries including the automobile Industry. Social distancing norms followed across the
globe due to CoVID-19, could become the new normal. People may move away from use of
shared/public transport solutions. This changed preference would lead to enhanced need for
a personal mobility solution and could emerge as an area of opportunity for two-wheelers.
The Company has also strengthened its offerings in the premium segment catering towards
younger customers. Many products in the new BS-VI line up of the Company have first in
class and best in class features to attract such customers. TVS Apache, TVS NTORQ and the
electric TVS iQube will all help the Company in these segments.
RISKS AND CONCERNS
Domestic Business:
The brunt of the adverse economic environment will be manifest in real contraction of
disposable income and weak consumer sentiment. The severity of impact is also higher at
the lower to mid income with customers who form bulk of the commuter 2W industry.
Consumers will conserve cash, in view of unforeseen events like potential job loss and
salary cuts levels. This will lead to delay in purchase of all non-essential durables, and
may pose a risk to many industries in the manufacturing sector including automobiles. This
may result in delayed recovery of the 2W industry. While government and RBI are taking
measures for enhancing availability of credit for dealers and suppliers, the participation
would be dependent on the business outlook. This could lead to challenges in working
capital management in the supply chain. The Company is cognizant and is advising dealers
and suppliers to make prudent choices in cost reduction and enhance working capital
management. From the supply side, availability of manpower in tier-2 and tier-3 suppliers
affecting the supply of parts and daily operations are likely risks. Casual workmen and
migrant workers hailing from other states may not return rapidly, posing risks across the
supply chain of the Company. The Company has taken appropriate steps to minimize the
impact of such risks and has channelled efforts to get back to normalcy at the earliest.
International Business:
The global pandemic has impacted economic activity across the world, hurting consumer
sentiment, disrupting supply chains and reducing demand across many categories. The rising
number of CoVID-19 cases in the Companys exports markets of LATAM, Asia, Africa,
South-east Asia continue to pose high risk to various industries. Some of the Companys
exporting countries have seen a rapid spread of CoVID-19 thereby lowering economic
activity while other export markets including some in Africa have seen a more limited
impact. A sustained drop in commodity prices and exports will reduce foreign exchange
income in some of the export countries. The Company has looked at options to minimize the
impact by leveraging opportunity in less affected countries and by launching new products
and leveraging financing solutions for customers.
RISK MANAGEMENT POLICY
Companys risk management framework is well embedded and continually reviewed by the
Risk Management Committee. It enables the Board, to identify, evaluate and monitor
principal risks and where possible, actively mitigate the risks that could affect the
achievement of the Companys target.
As a process, risks associated with the business are identified and prioritized based
on the Companys overall risk appetite, strategy, severity and probability of occurrence.
The Board is satisfied that there are adequate systems and procedures in place to
identify, assess, monitor and manage risks. The Companys Risk Management Committee is
overseeing all the risks that the organization faces such as strategic, financial, market,
IT, legal, regulatory, reputational and other risks and recommends suitable action. Risk
mitigation policy has been approved by the board.
OPERATIONS REVIEW
Total Quality Management (TQM)
TQM has always been a way of life, towards driving sustainable growth across the entire
chain of suppliers, dealers, stakeholders and community. Continuous drive on
cross-functional cluster approach to achieve breakthrough has helped significantly the
business processes in the Company.
Several initiatives taken as part of policy management process, has facilitated
implementing breakthrough initiatives like BS-VI transition, cost reduction and
International business market growth. Emphasis on adhering to Daily Work Management
practices was continued for retainment. Towards TVS Way permeation, 170 managers were
trained on TVS way of working for developing champions and cascading the initiatives in
the respective functions.
Total Employee Involvement continues to be the strong area, with focus expanding from
functional excellence to contribution towards business results through theme-based
kaizens. Employees have significantly contributed in the cost reduction initiatives, by
focusing on eliminating wastes in processes. War room approach towards cost reduction
was intensified and expanded to all functions. Teams had focused on speedy implementation
of improvements, while strictly adhering to guiding principle of "speed without
haste". Focus continued towards enhancing people capability in problem solving which
has helped in increasing the speed of implementation of key projects for achieving
business results.
Srinivasan Services Trust (SST), CSR arm of the group, has also used TQM way of work in
its activities in the villages adopted.
Mr Venu Srinivasan, Chairman of the Company has been conferred with the prestigious
Deming Distinguished Service Award for Dissemination and Promotion Overseas by Japanese
Union of Scientists and Engineers (JUSE), for his outstanding contribution in the
dissemination and promotion of Total Quality Management (TQM) across all companies in the
group. Chairman has also guided in permeating TQM practices in many companies in India
through cluster approach initiated by CII and ACMA.
Cost Management
The Company continues to focus on all the elements and drivers of cost. Raw materials,
components and conversion cost constitute major element of material cost. The Company
pursued process innovation, value engineering, alternate sourcing and localization to
reduce material costs. Waste elimination, productivity improvements and process
improvement will continue across the supply chain during 2020-21.
In the area of fixed cost, similar systematic approach of deployment of cost reduction
is being done.
Research and Development
The Research and Development (R&D) team continued its focus on in-depth customer
understanding, technology development and design innovations. This resulted in launch of
TVS iQUBE, the first Electric scooter from TVS stable, with cutting edge technologies,
including Smart Connect. The team has developed technologies to meet the stringent BS-VI
norms, which is significantly lower than the BS-IV emissions for both 2W and 3W models in
the portfolio. Focused work on advanced engine technologies for further improvements in
fuel efficiency, performance and reduction of emission is being pursued for both domestic
and CO2 international markets. Further technologies in the area of electric
powertrains are continuously pursued with a strong focus towards future requirements.
The R&D team continues their efforts in developing cutting-edge technologies that
are relevant for the near and long-term requirements of the Companys business plans.
These developments are centered on customers, emerging mobility needs, advanced safety
regulations and sustainability. The Company also collaborates with leading research
establishments and educational institutions, both within and outside the country to
develop breakthrough technologies. TVS Racing continued its dominance with high
performance during the year, with 97% podium positions and 9 championship wins out of 10
participations. Several technology and product development projects in R&D are closely
linked with the racing technology development, leveraging the decades of racing
experience.
Information Technology
The Company continues to implement several projects to improve its efficiency,
transparency and process control across supply chain from suppliers to dealers. Major
focus areas are improvements at factory, retail management and improving customer
experience at dealerships. Various initiatives on industry 4.0 are being adopted for
improving quality, productivity, traceability and waste elimination. The Company has
adopted various machine learning tools for improving quality of its products and
processes.
Company has developed new products with connected technologies and developed skills to
take them to the next phase.
As part of continuous improvement and technology benchmarking, the Companys IT systems
were audited by external experts and recommendations were implemented. The Company has
enhanced information security by adopting new cyber security tools. Periodic audits are
conducted by external experts and necessary control measures are taken. The Company has
engaged one of the major consulting firms to do benchmark study on cyber security
framework and implemented controls based on recommendations. The Company has enhanced
security by implementing multilayered firewalls and deployed security control centres. The
Company has formed a cyber-security governance council consisting of senior management and
industry experts for improving its cyber security.
The Company is ISO 27001:2013 certified for all manufacturing units and sales offices.
Business continuity plan for major business and design applications has been implemented
and tested. The Company is certified for ISO 22301 for Business continuity. The Company
has been certified for CMM level 3 for its software development process.
The Company is leveraging digital technology to enhance consumer experience and sheer
reach with high engagement. Social listening is institutionalized and the Company is
leveraging it for grievance redressal, consumer learnings and overall online reputation
management.
INTERNAL CONTROL AND THEIR ADEQUACY
The Board is accountable for evaluating and approving the effectiveness of internal
controls, including financial, operational and compliance controls. Company has a proper
and adequate internal control system to ensure that all its assets are safeguarded and
protected against any loss and that all the transactions are properly authorized and
recorded. The internal control system is subject to continuous improvement, with system
effectiveness assessed regularly. Information provided to management is reliable and
timely. Company ensures the reliability of financial reporting and compliance with laws
and regulations.
Company is strengthening the controls by leveraging technology and centralizing
processes, enhancing monitoring and maintaining effective tax and treasury strategies. The
Audit Committee continues to monitor the effectiveness of internal control over the use of
new technologies that impact the Financial controls and reporting enterprise risk.
KEY FINANCIAL RATIOS
As required under Regulation 34 of the Listing Regulations, there was a significant
change in Interest coverage ratio compared to the previous financial year.
Details of change in Interest coverage and Return on Net Worth as compared to the
previous financial year is given below.
|
|
Standalone |
Consolidated |
| Particulars |
UOM* |
2019-20 |
2018-19 |
2019-20 |
2018-19 |
| Interest coverage |
Times |
8.38 |
12.93 |
2.01 |
2.63 |
| Return on Net worth |
% |
17.01 |
21.52 |
19.36 |
24.10 |
* UOM - Unit of measurement
Profit for the year is lower primarily due to suspension of plant operations on account
of CoVID-19 pandemic and transition from BS-IV to BS-VI.
Also, exceptional expenses, associated with CoVID-19 has negatively impacted the profit
for the year. Reduction in profit for the current financial year has resulted in adverse
movement of ratios.
ISSUE OF NON-CONVERTIBLE DEBENTURES
During the month of April 2020, the Board approved the issue of rated, unsecured,
redeemable, non-convertible debentures (NCD) for a sum of Rs.500 Cr (Rupees Five Hundred
Crores Only). The Company had allotted on 15th May 2020, 5000 NCDs of face
value of Rs.10 Lakhs each aggregating to
$ 500 Cr with a tenor of 3 years at the rate of 7.5% p.a. NCDs will be redeemed at the
end of 3rd year by way of bullet payment. The NCDs were listed with National
Stock Exchange of India Limited (NSE) on 19th May 2020.
INTERNAL FINANCIAL CONTROL
The Company has an established Internal Financial Control framework including internal
controls over financial reporting, operating controls and anti-fraud framework. The
framework is reviewed regularly by the management and tested by internal audit team and
presented to the Audit Committee. Based on the periodical testing, the framework is
strengthened, from time to time, to ensure adequacy and effectiveness of Internal
Financial Controls.
Occupational Health & Safety (OHS)
Environment
To promote sustainability to stakeholders, a conference was organized with the theme
"Sustainability in Manufacturing Supply Chain" during February 2020. The
Companys manufacturing facilities have been certified under Integrated Management System
(IMS). ISO 14001 (Environment Management System) and ISO 45001 (Occupational Health &
Safety Management System) standards are integrated into a common system that meets the
requirements of each of the standards.
a. Utilization of Non-renewable energy:
The renewable power contributes to 76% in overall share of power. These initiatives of
renewable energy resulted emission reduction of about 60,000 tonnes during in CO2
2019-20. Company has invested in group captive mode to the tune of 35 MW wind power and
roof top solar power of 5.9 MW.
b. Conservation of water
To conserve water consumption in canteen, the Company has introduced dishwasher and
automated washing machines for vegetables which resulted in substantial water saving.
c. Material conservation & waste minimisation
In process design, efforts have been taken to minimize the generation of waste by
introduction of clean technologies. Water based paint application (cathodic
electro-deposition), pre-treatment based on nano technology in powder coating have been
adopted. Robotic paint application is being continuously augmented towards enhancing paint
transfer efficiency. Virtual training facility has been established for training operators
towards improving their painting skills without using paint and generating waste.
d. Effluent treatment
Automation and advanced treatment processes have been adopted in Effluent treatment,
Recycling, Evaporator and Sewage treatment facilities. During 2019-20, a unique effluent
treatment process which maximizes recycling efficiency in RO plants was established to
treat effluents with different characteristics in a common facility. The chemical sludge
from waste water treatment plants and paint sludge generated during paint application are
used for co-processing in cement industry.
Towards IT & IOT initiatives, ambient air quality, ambient VOC and stationary
emissions are monitored through online systems. Water & energy consumption is
monitored through online system. The forms and returns under applicable Environmental Acts
and Rules were made online.
Health & Safety
Implementation of ISO 45001:2018 has helped to improve occupational health and safety
performance by proactively preventing work-related injury and ill health. As part of
continual improvement in safety, around 643 proactive hazard control measures have been
implemented across plants. The Company has achieved a reduction of 33% in frequency rate
of accidents compared to previous year.
Towards building a sustainable safety culture, periodical safety trainings have been
organized and around 7352 employees were covered. During National Safety Day celebration
on 4th March 2020, as a part of "Buckle up & Strap up" - Road
Safety campaign, various promotional activities were conducted and all the employees were
covered across Hosur, Mysore & Nalagarh locations. TVSM-Hosur plant received three
"First prizes" from Government of Tamil Nadu in the State Safety Awards function
held in Chennai during September 2019. This recognition for achieving longest accident
free period & reducing frequency rate of accident.
Influenza immunization was done to employees under high risk categories including those
in marketing and field staff all over India. Health days were celebrated (World Health
Day, Diabetic, Heart, No Tobacco and Aids Days) to create awareness among employees
through talks, posters, quiz competitions, standees. Walkathon conducted during March
2020, to promote idea of health and wellness among employees and encourage walking among
them and their families.
HUMAN RESOURCE DEVELOPMENT (HRD)
Constituents of Human Resources Development framework followed at the Company include
Workforce planning, Employee engagement, Performance & Compensation management,
Learning and Development, Career & Succession planning and Organization Development.
Towards sustenance and delivering improved results, these constituents have a structured
approach, policies and standard operating procedures which are reviewed and updated
periodically.
Current and future Skill-based competency development are planned and executed through
both in-house programs and globally acclaimed programs, continuing education, challenging
project assignments and job rotations. The Company continues to maintain its record of
good industrial relations without any interruption in work. As on 31st March
2020, the Company had 5,133 employees on its rolls.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report describing the Companys
objectives, projections, estimates and expectations may be "forward looking
statements" within the meaning of applicable securities laws and regulations. Actual
results could differ materially from those expressed or implied. Important factors that
could make a difference to the Companys operations include, amongst others, Economic
Conditions affecting demand/ supply and Price Conditions in the Domestic and Overseas
Market in which the Company operates, changes in the Government Regulations, Tax Laws and
Other Statutes and Incidental Factors.
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