Managing Material Matters
Managing Material Matters
Material matters are those which impact, or could impact, our ability to create value over the short, Medium and long term as we pursue our ambition to build a sustainable future. These material issues Have been arrived at basis our regular stakeholder engagements, our Risk management process and Market monitoring. We continuously manage these issues to Achieve our objectives.
High critical areas
- Sustainable chemistry
- Product innovation
- Health and safety
- Climate change
- Growth and profitability
Medium critical areas
- Customer relationships
- Governance and risk management
- People strength and development
- Fair remuneration and growth opportunities for employees
- Digitalisation
- Supply chain efficiency and logistics management
- Community development
Response
By scouting for global trends, collaborating with customers, understanding their product preference and driving innovation through our R&D efforts, we are constantly enhancing our portfolio of novel chemistry solutions. We also continue to focus on ways to improve existing products. We remain focussed on investing in innovation irrespective of the market environment as we believe it is paramount for continued success
PRODUCT INNOVATION
Issue : Our chemical intermediates cater to various end-user industries such as petrochemicals, pharmaceuticals, agrochemicals, personal care, paper, textiles, among others. Our customers from these industries are constantly in need of niche and high-performing products that add value to their own operations. If we are unable to develop new products or improve existing products to meet unmet needs, it can have a material effect in expanding our customer base or deepening our engagement with existing customers.
Response
We are paying close attention in driving sustainability in our operations through multiple initiatives that reduce our carbon and water footprint. Our relentless focus on sustainable chemistry is also reflected in our product portfolio wherein circular-economy-compatible products are steadily gaining traction. These circular-economy products are value-added chemicals manufactured from by-products, demonstrating our proactiveness in using resources more sustainably.
compatible products are steadily gaining traction. These products are value-added chemicals manufactured from by-products, demonstrating our proactiveness in using resources with regard to the environment.
SUSTAINABLE CHEMISTRY
Issue : Growing awareness of our planet’s vulnerability is driving the shift towards sustainable solutions. In our industry, customers are increasingly showing interest in sustainable chemistry, aligned with their commitment to reducing their own environmental footprint. If we are unable to embed sustainability in our operations and develop products that meet customers’ sustainability and performance needs, it can impact our value creation.
Response
Ensuring occupational health, safety, and the well-being of our employees is a continuous priority. At all sites, stringent safety measures are implemented, safety audits are conducted, and appropriate personal protective equipment is provided to employees. Safety awareness is driven through safety campaigns and training. To ensure the health and safety of employees during the ongoing pandemic,
additional security and safety measures have been implemented.
HEALTH AND SAFETY
Issue : Due to the nature of our business, our employees are exposed to a variety of hazardous materials and operational hazards. Process safety gaps and occupational health and safety (OHS) incidents may cause physical harm to our employees and even result in loss of lives. Additionally, failure to ensure employee wellbeing and safety may impact the achievement of our production targets and also negatively impact our assets, environment and business reputation
Response
We have embraced environmental consciousness by embedding sustainable manufacturing. This is reflected in our emphasis on utility reduction, recovery of ‘value from waste’, and adoption of cleaner technologies. We are relentlessly working towards improving our energy efficiency and are using solar power wherever feasible. Further, the effluents, emissions and wastes generated at our manufacturing facilities are within the permissible limits given by the respective Pollution Control Board.
CLIMATE CHANGE
Issue : Climate change is among the most pressing challenges our planet faces today. As chemical production is energy and water-intensive, our inability to reduce our environmental footprint can impact our standing in the industry and our relationships with our customers, investors and the society at large.
Response
We budget financial resources efficiently and follow best business practices and good governance to ensure a sustainable business for the long term.In addition to making investments within the strict and clear framework of discipline, we also follow a disciplined approach to cost management to maximise our financial performance.
GROWTH AND PROFITABILITY
Issue : Leading financial performance, both in terms of growth and profitability, ensures that our investors continue to stay invested in our Company. A strong and stable financial position also provides us opportunity to drive holistic value creation for all our stakeholders.
Response
We have a robust inbound and outbound logistics and distribution network. We use secure mode of transport with GPS tracking technology that enables us to monitor the transport of raw materials and finished goods on a real-time basis. We also have structured warehousing and distribution systems in place which enables timely delivery of customer orders.
SUPPLY CHAIN EFFICIENCY AND LOGISTICS MANAGEMENT
Issue: Ensuring seamless supply of raw materials and timely delivery of customer
orders is extremely important for any business to flourish in a challenging and competitive business environment. Any disruption in these activities can be of serious threat to our growth and profitability
Response
To retain and acquire customers, we are offering innovative
and cost-effective products. We continue to focus on engaging with them and understanding their needs to strengthen the customer experience. Our customer- centric approach has helped to drive customer stickiness, which is today among our greatest strengths in driving our profitable growth.
CUSTOMER RELATIONSHIPS
Issue : In an increasingly competitive and fluid operating environment, the growth of our business is directly linked to our customer base. Strengthening our relationship with our customers is thus a material matter that can significantly impact our ability to create value.
Response
Through our CSR Wings – Deepak Foundation and Deepak Medical Foundation, we have so far touched the lives of over 2 million people through various programmes. For more details on our community engagement and development activities, please refer to pages 50 to 53 of this Report.
COMMUNITY DEVELOPMENT
Issue: No business can thrive without the acceptance of the community in which it operates. Community development helps in positioning the business as an organisation that values causes outside of making money and, thus, cultivates trust in the company’s operations.
Response
We are approaching talent attraction and management comprehensively. Continuous opportunities are being provided for capability building and to drive engagement. We also have in place a structured approach for succession planning and building a leadership pipeline.
PEOPLE STRENGTH AND DEVELOPMENT
Issue : Our talented team is at the core of our success. Our failure to ensure that we have the right people at all times can have a bearing on our ability to realise our business objectives.
Response
We have robust governance practices which is guided by reputed Board members having diverse skills and adequate independence to ensure interest of all stakeholders are taken into consideration. Most of the Board members also have deep experience in the chemical field and adequately guide the organisation in growth and managing risks. We also have robust risk management practices supported by a strong team
GOVERNANCE AND RISK MANAGEMENT
Issue : In the evolving landscape of chemical industry marked by increasing macro-economic volatility, strong governance practices to ensure ethical and transparent business practices by meeting all regulatory compliance as well as managing risks are important.
Response
We pay salaries and wages to all employees, in line with the industry standards. In addition to that, all employees are paid performance- based incentives. We undertake annual performance-based appraisal for all employees. Wages, increments of workers are as per agreement. Being a fast growing Company, we continue to provide adequate growth opportunities to employees.
FAIR REMUNERATION AND GROWTH OPPORTUNITIES FOR EMPLOYEES
Issue : Fair remuneration and growth opportunities are important to drive employee motivation and ensure smooth operations without any disruption or unrest as well as high retention ratio.
Response
We are increasingly harnessing digital technologies to strengthen our infrastructure and our business operations at all sites. Our digital approach is making a difference to the performance of our core functions of innovation and manufacturing of chemical intermediates as well as to our enabling functions of logistics, HR, finance, administration, among others.
DIGITALISATION
Issue : The COVID-19 pandemic has
further accelerated the growing shift towards digitisation. Failure to adopt digital ways of working can have a material bearing on our customer relationships, product launches, employee satisfaction and operational efficiency.
