Fashioning
Possibilities

People

Chemicals

Vitally - Cotton

At Arvind, instead of looking at Cotton as just a key raw material, we see it as a vital ally and are developing a mutually beneficial ecosystem from farm to fabric.

Towards this goal, we have formed alliances with farmers to enhance production of sustainable cotton, with local partners to provide training to farmers and pickers, with research organisations for innovative practices, with Govt. and international organisations for water conservation & soil fertility and with companies like Inditex and Patagonia to strengthen the sustainable cotton value chain.

In the last three years, we have increased the area under cultivation as well as the farmers engaged in sustainable farming.

Highlights:

  • 6.64 times

    increase in area under cultivation of BCI cotton from 14,750 to 112,756 acre between FY 2014-15 and FY 2018-19

  • 6.74 times

    increase in number of BCI farmers from 3,395 to 26,289 between FY 2014-15 and FY 2018-19

  • LCA of BCI and Organic Cotton

    reiterates the sustainability benefits of responsible cotton farming

  • Zero Child Labour at our BCI

    and organic cotton farms through the strict implementation of anti-child labour policy

Sustainable Sourcing

Our responsible supply chain mechanism is sourcing sustainable cotton from the farms to produce fabric. Around 26% of our cotton is sustainable and we are scaling this up now. We focus on promoting sustainable practices like Better Cotton Initiatives (BCI) Principles, Organic agriculture and Regenerative Organic Agriculture by partnering with several local NGOs and Producer organisations to implement these activities in various cotton producing states of India. Our sustainable farm operations help us to fulfil the rising demand for products made with sustainable cotton across Europe, North America and Asia.

The area under cultivation of BCI has increased by leaps and bounds.

Area Under Cultivation

Type of Cotton FY-14-15 FY-15-16 FY-16-17 FY-17-18 FY-18-19
BCI 14,750 11,119 24,328 65,840 112,756
Organic cotton 17,197 13,507 *Suspended for better planning 1,547
Regenerative Organic Cotton New initiative started in FY 2018-19 84
Total 31,947 24,626 24,328 65,840 114,387

We aim to accelerate the area under cultivation of our sustainable farm operations to cover 400,000 acres of farmland and engage over 100,000 farmers by the year 2022-23.

SUPPLY CHAIN ENGAGEMENT AND TRANSPARENCY

We meet our suppliers periodically to ensure transparency and clear communication in the supply chain. We organised Supplier Day twice during the reporting period, to elaborate and familiarise our supplier group with Arvind's sourcing policy, sustainability practices and code of conduct.

Case Study

Broadening The Farmers' Perspective

Crucially - Chemicals

The look and feel of fabrics and clothes is obtained by the use of chemicals and dyes. In the interests of sustainability, it is important that the use of these chemicals is closely controlled, monitored and, as far as possible, reduced. At Arvind, we do this by following a life-cycle approach to ensure comprehensive chemical management.

We have adopted green chemistry and became the first textile mill globally to join Zero Discharge of Hazardous Chemicals (ZDHC) programme. We have also collaborated with Levi's and adhere to their Screened Chemistry Framework to eliminate hazardous chemicals from the value-chain.

One of the biggest challenges of the fashion industry is the multiple partnerships that go into manufacturing of a garment. Focussing on the entire value chain is essential to create sustainability. Therefore, at Arvind, we don't just partner with other brands, but form strong bonds that regard them as Allies who enable this new paradigm shift to take shape.

Collaborating with Allies Implemented Levi's Screened Chemistry Framework ZDHC LCA
Our key allies when it comes to chemicals are Levi Strauss & Co. and the Zero Discharge of Hazardous Chemicals (ZDHC) programme. A hazard-based approach that evaluates chemicals from a hazard perspective. Collaborated with programme to implement safer chemistry practices Life Cycle Analysis at Santej and Naroda to map our fast-moving products against industry standards
SCREENING FOR HAZARD

We adopted the 'GreenScreen for Safer Chemicals' for the 'Denim Laundry Operations' in FY 2015-16. Our aim was to evaluate chemicals from a hazard perspective through a structured approach. A comprehensive set of 18 human & environmental health and safety end points, as related to chemical substances are under evaluation through this approach.

For more details please refer to the Chemicals Chapter (Page 89 to 103) in our Sustainability Report 2019. Click here to view the Sustainability Report.

PRODUCT

Accelerated demand for apparel coupled with a quick and easy supply of fashion products at affordable costs means higher consumption. This linear model of fashion where consumers buy, wear and toss the clothes into the landfill is going to rise with an increase in the population, negatively impacting people and the planet's resources

Our fundmentally right philosophy brings sustainability to all the inputs and processes that go into making our products. Even after the use phase is over, we make sure that our products are recyled to make new ones.

We do this in two ways:

1. By offering our customers a sustainable product portfolio with an array of options to choose from.

2. By widening the scope of sustainability for them through joint development - right from raw material to the garment thereby making them an ally in sustainable fashion.

PARTNERING THROUGH CO-CREATION

We form robust partnerships with our customers that leads to growth & innovation and help us deliver more value to stakeholders. These collaborations ensure that we stay ahead of the curve, innovate, positively impact socioeconomic and environmental aspects, and create mutual value for sustainable growth.

ARVIND THREE-PRONGED CO-CREATION STRATEGY
Co-construct Co-wash Co-design
This involves finalising the most appropriate fabric for a specific requirement. This can be either done using our technical design services for fabric development or by delving into our vast library of availablefabrics. Once the correct fabric has been identified, our garment experts employ different wash treatments to enhance and customise the feel and look of the fabrics. Our advanced wash lab at Naroda is equipped with state-of-the-art machinery, capable of high-end wash output through both - dry and wet processes. Now that the fabric as well as the look and feel have been decided, our garment and fashion experts collaborate with the customer's design teams and create design options keeping in mind the prevalent fashion trends. Our master craftsmen then give form and silhouettes to the prototype of each design option.
CO-CREATING WITH ALLIES
  • 1. Co-developing Graphene-based jeans wear with an Italian company, Directaplus.
  • 2. Partnered Levi's on their Levi's commuter jeans series.
  • 3. Partnered US-based Gaston Technologies and Indigo Mill Designs to develop Foam.
SEQUAL

Arvind is partnering SEAQUAL to use the most certified, earth friendly fibres in the world. We use the high quality recycled polyester yarn made from recycled materials including postconsumer plastic bottles and plastic captured from the seas, contributing to preservation of natural resources and waste reduction.

SUSTAINABLE PRODUCT PORTFOLIO
Recycled Denim
The yarn of this fabric is made from recycled cotton (20%) from disposed denim garments and cotton (80%), which leads to 20% less water consumption and reduction of landfill space.
ECOVERO
Derived from certified renewable wood sources using an eco-responsible production process by meeting high environmental standards, LENZING ECOVERO fibers are tailored to a sustainable lifestyle, contributing to a cleaner environment.
Recycled Polyester
As part of our ReNEW process, we use recycled polyester from discarded PET bottles which would otherwise choke up Landfills. It is estimated that recycling 1 ton of PET saves an equivalent of about 4.7 barrels of oil.Producing recycled polyester also consumes 86% less water compared to virgin polyester.
Corduroy DenimCorduroy fabrics specially treated using the new Foam Indigo Dyeing technology and used for denim manufacturing. Foam finishing is a wet processing technology that uses air in form of dispersion foam for media application. It saves energy by more than 50% and brings down chemical consumption by 10 to 40%. Neo Denim
It is produced using sustainable Neodyeing technology which is a closedloop dye inject technology in Nitrogen environment. It eliminates dry drainage, optimises dye consumption, and reduces water consumption.
Scafe Denim
Made from recycled coffee grounds Linen Denim
One of the few fabrics that remainstrong even when wet Excel Denim
Made from choicest selection of wood pulp, a natural and renewable resource.
Organic Cotton
A natural, renewable and biodegradable fibre that benefits cotton producers and the environment in developing countries by avoiding the harmful effects of toxic pesticides, and the reduced cost of production improves social conditions
Advanced Denim
Manufactured using a ground-breaking technology that reduces water and energy consumption by up to 92% and 30% respectively.
Khadi Denim
It is hand spun, hand hank dyed in natural indigo and woven on a handloom. It sports all the properties of natural denim like comfort, softness, and ageing. Additionally, the natural indigo injects anti-inflammatory, anti-fungal & antibacterial properties into the fabric. During the reporting period, we initiated commercial shipments of Khadi Denim to both, large-format brands like Levi's and niche boutique brands.

Case Study

Making Indigo Dyeing Process Sustainable

For more details please refer to the Product Chapter (Page 105 to 112) in our Sustainability Report 2019. Click here to view the Sustainability Report.

Perpetually - Energy

Energy powers our production and operations. The source and quantum of energy we consume significantly determines the sustainability of our organisation as it affects the cost of our products and our carbon footprint.

Thus it is not a surprise that we have made energy, its suppliers and its regulators our perpetual allies.

For greening our energy mix, we have installed a 16.2 MW rooftop solar at Santej, which is India's largest largest rooptop solar installation at a single location in collaboration with Cleantech Solar. We have also formed an alliance with NK Protein for supply of biomass to green our energy mix even further.

Highlights:

  • 16.2 MW

    India's largest rooftop solar installation at a single location commissioned at santej

  • 22 MW

    Total current solar power generation capacity across faclilities

  • Certification

    Ethiopia operations are Fully powered by renewable energy

  • Exceeded target by 6.8% under the PAT scheme on energy efficiency at our Santej Unit compared to FY 2016-17 (Baseline Year)

  • Implemented ISO 50001energy management system at all our large energy consuming sites

  • 13.88%

    reduction in direct GHG & 15% drop in indirect GHG emissions in five years

Optimising energy productivity offers myriad benefits such as GHG emissions reduction and low annual energy costs. Adding renewables to the energy mix enable us to derive maximum value out of each unit of energy consumed. Combined together, these steps make us a more responsible energy user and enable us to move on the decarbonisation pathway.

Here are a few of our key achievements:

Based on this policy, we have developed an energy strategy 'Less Watt Per Metre' to flatten our energy demand curve and reduce our environmental footprint.

The strategy has led to:
  • 1. Process improvements
  • 2. Adoption of technology solutions
  • 3. Enabled energy saving, and use of renewables.

ENERGY CONSUMPTION

Coal, electricity and compressed natural gas were used for our operations till now. We diversified into solar power during the reporting period to increase the renewable energy mix in our operations. In fact, our Ethiopia operations are completely powered by solar energy now. We are working towards increasing solar power as a source of energy for our other units too. We have expanded the scope of our disclosures to reinforce our energy accountability by including smaller units at Arvind in the reporting period.

Performance Emissions
After an increase in FY 2016-17, our energy use has been consistently going down due to various energy efficiency initiatives such as installing new boilers and energy-efficient motors, implementing ISO 50001 standards, and shifting to LEDs from incandescent tube-lights. Energy conservation initiatives such as shifting to LED, implementing ISO-50001, installing new boiler and bringing in efficient motors led to decrease in the energy consumption resulting in both direct and indirect emissions going down. Implementation of various energy efficiency projects including daylight harvesting systems, the variable frequency drives in motors, condensate recovery systems, flash steam recovery system, and use of solar energy has led to reduction in GHG emissions.

TOTAL DIRECT ENERGY CONSUMPTION

in Π

Units FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Woven & Knits 2,580 2,566 2,686 2,933 2,860
Denim 1,300 1,227 1,160 1,130 1,015
Garments Export Division 78 101 60 110 105
Yarns* 1.12 0.86 0.42 0.94 0.51
Voiles 243 269 263 303 284
Total 4,202 4,164 4,169 4,477 4,264

* Note: Yarns business include - Arvind cotspin & Arvind intex. Arvind Intex uses only purchased eletricity and hence nodirect energy consumption.

SPECIFIC GHG EMISSION

in kg CO2/metre production

Units FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Woven Knits 3.26 3.18 3.07 3.06 2.94
Denim 2.27 2.2o 2.09 1.63 1.61
Garments Export Division ( kg CO2/pieces) 0.92 0.88 0.73 0.60 0.50
Yarns (kg CO2/kgs of production 2.55 2.67 2.71 2.65 2.66
Voiles 1.15 1.17 1.00 0.94 0.94

Specific GHG emissions have gone down by 29% and 10% at Denim and Woven & Knits units respectively, over a period of five years.

ENERGY CONSERVATION

Energy conservation at Arvind is not just limited to changing the conventional bulbs with LEDs or adopting the new energy efficient technologies. It's about building a culture of conservation where each and every employee in the organisation participates. We have also enhanced the energy conservation awareness of our vendors through trainings, workshops and seminars. This empowers us to conserve beyond our sphere of operations and thereby contribute to the climate narrative on a larger scale.

Energy Efficiency Initiatives At Various Locations & Units
  • 1. Installation of Effimax monitoring system and energy efficient boilers, machines, compressors
  • 2. Introduced daylight harvesting systems
  • 3. Optimised power and pressure in submersible pumps
  • 4. LED light fittings in place of fluorescent light fixtures
  • 5. Introduced Variable Frequency Drives (VFD) in boilers
  • 6. Reused heat and water in processing machines from condensate recovery
  • 7. Conducted compressed air leakage audit and arrested leakages
  • 8. Installation of rooftop solar systems

Financially - Money

Money is not viewed as just a critical input at Arvind, but as a financial ally to achieve economic, social and ecological goals.

As a means to this holistic end, we partner with investors and financial institutions to raise capital, which is deployed for expanding capacities, fuelling growth, upgrading technology, procuring & hiring locally, nurturing talent, setting R&D centres, and in turn, giving back to the shareholders, government, community and environment.

Performance FY-14-15
FY 2016-17
  • 15% growth in revenues
  • 1% growth in PAT
  • 0.4% growth in consolidated PBT
Going ahead, Arvind's value creation agenda will be:
  • Continue to scale-up and solidify our core textiles business on four large pillars of growth
FY 2017-18
  • 17% growth in overall revenues
  • 9.8% growth in exports - highest in six years
  • 2.7% growth in operating EBITDA
  • Continue to grow our asset light garment business model as part of our vertical integration strategy
FY 2018-19
  • 5% growth in overall revenues
  • 7% growth in operating EBITDA
  • Advanced materials will continue to expand product portfolio and generate robust double-digit growth in top-line, while maintaining the margin model

For more details please refer to the Money Chapter (page 54 to 60) in our Sustainability Report 2019. Click here to view the Sustainability Report.

Naturally - WATER

Right from the cultivation of cotton, to transforming into a garment - water plays a key role at every stage in our industry.

At Arvind, we treat water as a natural ally and ensure that our operations put as little stress on freshwater as possible.

In pursuance of this objective, we have formed alliances with Santej and Gandhinagar Municipal Corporations to use treated domestic sewage for manufacturing. Another close ally is Arvind Envisol, who specialises in water and wastewater solutions. We have also joined forces with Gap Inc. to eliminate the use of freshwater in denim manufacturing.

Decrease in fresh water consumption in FY 2018-19 compared to FY 2014-15 (base year)
  • 1. Woven & Knits (Santej) - 45%
  • 2. Denim (Naroda)-37%
  • 3. Voiles - 36%
Compared to FY 2014-15, our total water use decreased by around:
  • 1. FY 2016-17 - 16.17%
  • 2. FY 2017-18 - 24.62%
  • 3. FY 2018-19 - 35.66%

Joined hands with Gap Inc. to set up an innovation centre and a water treatment facility to eliminate use of freshwater in making denim.

Performance Effluent Management
Notwithstanding increase in the production volume across woven, denim, and garmentsegments in the reporting period, our freshwater consumption has subsequently decreased during the same time. Myriad initiatives on conservation, recycling and process innovations have led to reduction in water use. Effective management of effluents address the environmental sustainability and economic viability of Arvind. During the period, total water treated and discharged has dipped due to decrease in the overall water use, but recycling did not decrease in proportion. So essentially, we are using less freshwater, recycling a higher percentage of that, and hence, a lower percentage is discharged.

TOTAL FRESHWATER CONSUMPTION

in '000

Units FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Woven & Knits 1,465 1,537 1,461 1,300 804
Denim 4,126 3,407 3,183 2,967 2,598
Garments Export Division* 217 269 260 223 236
Yarns** 251 255 232 253 266
Voiles 724 732 550 371 460
Total 6,783 6,200 5,686 5,113 4,364

TOTAL WATER TREATED & REUSED IN PROCESS

in '000

Units FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19
Woven Knits (Santej) 5,036 5,550 4,294 4,569 5,198
Denim ( Naroda) 2,852 99 270 129 106
Garments Export Division 114 2,781 2,465 2,161 1,950
Voiles 55 33 242 462 463
Total 5,205 5,682 4,806 5,160 5,767

* Note: Yarns business include - Arvind cotspin & Arvind intex. Arvind Intex uses only purchased eletricity and hence nodirect energy consumption.

Socially - People

Society provides us a license to operate, gives us access to talent, entrusts us the responsibility to add value to natural resources and buys our value-added products. Thus, we are committed to being a strong ally to society.

To leverage synergies and affect sustainable transformations in society, we have formed partnerships with numerous NGOs, clients and vendors. We have allied with the National Skill Development Corp. for skilling youth. We teamed up with GAP Inc. for educating and empowering women employees.

Highlights:

  • 35,066

    Man -day Total Training during reporting period

  • 1.04

    Average Accident Frequency Rate in Santej Facilities

  • 93.36%

    Overall reduction of in incident Rate (reportable accident per 1000 workers)

  • 68.42%

    Overall reduction of in Fire Incidences

  • OHSAS 18001:2007

    Certification at Naroda facility

  • INR 332.8

    Million - Total CSR spend during reporting period

Employees

organisation, and we are committed to their growth, development and wellbeing.In order to keep our 30,000+ workforce updated, we design and implement comprehensive employee engagement and development programmes, foster a conducive work environment and consistently provide opportunities for professional and personal development.

TRAINING SNAPSHOT

Description FY 16-17 FY 17-18 FY 18-19
Man- day of Training given 9,593 16,117 9,356
Total no. of Participants in Training Programmes 7,365 13,750 22,600
Total Training Days (Man days) 142 88 475
No. of Training Programmes 75 46 91
No. of Participants in Outbound Training 50 0 28

Initiative

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Providing Advanced Healthcare Facilities