GOING CIRCULAR

Sustainability Compendium V

An F2F Initiative

Vardhman Group

An acclaimed Indian textile conglomerate, Vardhman Group is spinning yarn, weaving fabric, producing acrylic fibre, crafting garments and manufacturing special & alloy steels. For more than 50 years, the Group is delivering quality products to 75+ Countries.

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From the Chairman's Desk

S.P. Oswal

Chairman & Managing Director

At Vardhman, it is our zealous endeavor to amplify the positive impact of textile industry on the economy and work towards holistic excellence. We have embedded a mind-set of sustainable development and aim at fulfilling our role as a progressively responsible organization.

We firmly believe that our proactive engagement to protect and rejuvenate the environment is a stronger force than legislative compliances. We adhere to our ethics, values and principles while keeping ourselves at par with modern technology to stand strong in the winds of competition.

With an acute emphasis on developing a green product portfolio, we are continuously researching the scope to utilize raw material and processes that are cleaner and safer for the environment. We believe that with a collaborative approach, attaining sustainable development shall be much more plausible and have partnered with our vendors and customers to march together towards creating a better tomorrow.

Sustainability

The Modern Day Competitive Advantage

Sustainability is not just a principle of co-existence, it encompasses every domain related to development, fulfilment and prosperity of the human race as well as ‘Mother Earth’. It is a benchmark of progress, a scale to validate if our actions are leading us in the right direction.

Sustainable development is practically the only true development. It is crucial for industries to identify whether or not the innovations and technological advancements being adapted are wired with sustainability.

Human race is accountable for the triumph as well as the catastrophe that occurs on our planet. Hence, it is our responsibility to ensure that success doesn’t come at a huge cost to our planet. Over the years, with increasing industrialisation, issues like global warming, ground-water depletion and scarcity of resources have been reported. These can be seen as the challenges as well as the opportunities to protect the environment. It is our approach that matters.

Vardhman, as a leading textile manufacturer in India, has a firm belief in ‘Ethics’ and ‘Values’. Since its inception, the organisation has worked towards long-term objectives with a far-sighted approach. The business strategy of the Group is rooted in a well-contemplated consistent growth plan and an approach that addresses the concerns of all three bottom lines of sustainability.

About

Company Background

The foundation of the first manufacturing facility of the Group - Vardhman Spinning & General Mills Ltd (VSGML) - was laid by Lala Ratan Chand Oswal in Ludhiana, Punjab in the year 1962.

VSGML started production of cotton yarn in 1965, with an initial capacity of 6,000 spindles.

Today, Vardhman is one of the largest vertically integrated textile groups in India. It has the largest installed spinning capacity in the country with 1.1 million spindles and houses 1,550 looms. Annually, the group

Produces 2,40,000 metric tons of yarn;
Weaves 220 million metres of fabric;
Processes 180 million metres of fabric;
Manufactures 22,000 tons of acrylic fibre;
Crafts 18 million shirts;
And makes 2,00,000 tons of special & alloy steel.

Vardhman is a leading manufacturer and exporter of cotton yarn and fabric with a turnover of more than a billion dollars. The company has 18 state-of-the-art manufacturing facilities across India, with a workforce of 27,500.

Our Policy

Sustainability Policy

Vardhman believes in the power of vision and long-term action. The company has integrated sustainability at every level of business operations. Here, sustainability is not seen just as an act; it is a mindset. The Vardhman Group embarked on the path to sustainability long back with ‘Vardhman’s Environmental Sustainability Directions’ which has evolved over the years into a robust framework.

Vardhman's sustainability framework follows a holistic, balanced and practical approach in addressing all three facets of sustainability — environmental, social and economic. The sustainability framework has been built on three pillars that the Group describes as:

PROfundity: the intellectual ability to penetrate deeply into ideas. All transformation, large or small, have their origin in excellent knowledge, keen insight or intense observation.
PRObity: the quality of having strong moral principles, honesty, decency, and fairness. Good governance, integrity and adhering to the standards of the profession in letter and spirit is embedded in the Group’s culture.
PROpinquity: the state of being close to aspirations. Vardhman believes in understanding the said and unsaid needs of stakeholders. Healthy relationships are the bedrock of sustainability, as they enable various stakeholders with diverse strengths to align and collaborate.

The company aims to Provoke by setting ambitious benchmarks and raising out-of-the-box questions, which in turn inspire people to achieve and perform at their peak potential. Sustainability demands big leaps through radical thinking. To achieve these audacious goals, Vardhman Propels innovation on all three fronts—Products, Process and People. The Company Propagates successful innovation and good practices across the industry to reap the maximum. And to measure the effectiveness and efficiency of all sustainable innovations and initiatives, the Group believes in Proving by a quantum of tangible, on-ground results. The practice allows the organisation to calculate ROI and make informed decisions.

Intiatives

Sustainability Initiatives

The Group focuses on the development of communities by promoting education, creating sustainable livelihoods, improving healthcare services and providing facilities like drinking water and sanitation. The organisation also engages its vendors, customers and brands to inculcate sustainability in the framework of every business process. Some of the initiatives taken in this regard are:

# Water: Conservation and replenishment of freshwater and its sources is a priority for Vardhman. The Group undertakes technology upgrades and conservation initiatives like rainwater harvesting and wastewater recycling to draw less and replenish more. 52 rainwater harvesting systems are in place with a capacity to recharge 1.75 million kl of water annually.

Reducing freshwater consumption: Vardhman has reduced consumption of freshwater per unit of production in its spinning, weaving and fabric processing divisions. It saves 0.81 million kl of freshwater annually by using treated sewage water for flushing in plants and colonies.

Taking the waste out of wastewater: To treat wastewater and utilise it in process and non-process activities, the Group has installed 9 STPs and 3 ETPs in the precinct of its units, out of which two are zero liquid discharge units having a capacity of 8800 KLD. More than 36% of treated water is used within the process activities and at Vardhman Fabrics, Budhni the organisation is making 100% reuse of STP treated water.

Collaborations for Water Conservations and Preservation: Vardhman has collaborated with GAP and cKinetics for water security besides administering a focused project Women+Water to reduce water risk.

# Energy: Persistent efforts are laid by Vardhman to cut down on emissions, implement energy-efficient technology, invest in green energy and sharpen cost-effectiveness. Recognised and appreciated by the Ministry of Power and the Bureau of Energy Efficiency, the Group’s energy conservation efforts include:

Utilisation of husk as fuel in power plant boilers to reduce coal usage;
Reuse of recovered condensate from steam consumption processes;
Hot water from steam condensate put to productive use in power plant boilers;
Reduction in heat loss by insulating surfaces;
Installation of APFC panels and harmonics mitigation system;
Replacing screw-type compressors with power-efficient centrifugal compressors;
Ongoing investments in new-age energy-efficient pumps, blowers, fans, etc;
Replacement of sodium vapour lamps with LED lights;
Installation of solar power systems with a capacity of 8.75 MW, capable of generating 170 million kWh of green power;
Installation of solar power kitchen automation equipment and solar water heaters in hostels, messes and residential colonies;
Biogas plants producing about 120kg/day of biogas, operational at two units;
Installation of Back Pressure Turbine of 1.5 MW to arrest thermal losses due to PRDS (Pressure Reducing De- Superheater System) in 45-ton boiler;
Installation of Level-III Energy Efficient Transformers for power saving;
Compressed Air Distribution System optimisation through automation;
Replacement of high-pressure compressors with lower pressure compressors for reduction in power consumption; and
Periodic energy audits for continual improvement.

# Emissions: As a responsible member of the industry, the Group has successfully identified measures to reduce emissions. Vardhman promotes afforestation, development of green belt and has also minimised carbon emissions effectively up to a million tons in the last two years. Over 2.80 lakh trees have been planted by the Group. Vardhman Fabrics, Budhni has won the Best Achiever Award in PAT Cycle 1 for its energy conservation practices. The unit achieved 29% savings in total energy consumption against a notified target of 5.77%. For this exemplary performance, Vardhman Fabrics has been selected as the model factory in India to develop Energy Conservation Guidelines for the Indian textiles industry as per the MoU signed between the Government of India and the Government of Japan.
# Chemicals: The Group has identified and eliminated potentially harmful and banned chemicals from the manufacturing process through CHEM-IQSM and is registered on the ZDHC InCheck & Gateway besides Clean by Design and CleanChain. The Group eliminates pervasive chemicals across all stages of operations and has an exhaustive Restricted Substances List (RSL), which meets almost all the requirements of customers’ RSL. It is mandatory for every vendor to conform to the Vardhman RSL.
# Waste: While using less to produce more is worthwhile, responsible disposal of the leftovers is equally crucial. The Group has extensively worked to reduce and reuse the waste besides disposing of it only with government authorised vendors. The hazardous and biomedical waste is handed over only to the state pollution control boards’ authorised Treatment, Storage and Disposal Facility (TSDF). Besides that, effective steps have been taken to minimise the use of plastic in packaging and re-using the HDPE sheets.

Over All

Circularity View Point

The Group takes care of circularity at every step under the ‘Green at Every Step’ policy.

Spinning: With the installation of acetex/fibre recovery plants, the unusable waste (like blowroom dropping and card flat/dropping) is converted to usable waste. The Group has processed around 2,300 MT of waste fibre in FY 2018–19.

Weaving: The group has shifted to 100 % natural and green products which do not contain synthetics like PVA or polyester resin and give a BOD/COD value of 0.3 and above as compared to 0.1 in the case of synthetic chemicals. The softener used is a natural wax with a hydrogenated palm oil base as opposed to tallow-based or synthetic stearic acid-based softeners. Even the production of residual, remnant yarn has reduced from 5.50% to 2.70%.

Desizing: Chemical desizing has been replaced with enzymatic desizing.

Scouring: A process of bio-scouring has been added.

Bleaching: The use of chlorine bleaching has been stopped and replaced with 100% peroxide bleaching.

Mercerisation: Two caustic recovery plants have been installed by the Group with the efficiency to recover up to 90% of caustic. To reduce water and acid consumption, eco-washers have also been installed.

Dyeing: Vardhman has shifted from a conventional salt-based dyeing process to salt-less dyeing like e-control dyeing, thus achieving a reduction in salt consumption by 50%. The TDS level of used water has also reduced by 15-20% owing to this practice.

Soaping: To reduce COD/ BOD levels of water used for washing, the Group has incorporated the use of a probiotic-based soaping agent in place of chemical detergent.

Finishing: With the increased use of mechanical, plant extract-based finishes in place of chemical finishes, the use of chemicals is being further reduced. The units of Vardhman have switched to C-6 Chemistry for oil and water repellant finish and have also started C-0 Chemistry based on customer requirements.

Circularity Initiatives Planned
With eyes set on socio-economic as well as environmental benefits, the products as well as processes at Vardhman are aligned with the organisation’s sustainability goals. From the procurement of raw material to the responsible disposal of waste, each practice is rooted in protecting the environment, proliferating the economy and prosperity of the society. Vardhman has embraced circularity and with a focus on major material issues, has set the following sustainability goals:

Reduce the consumption of water and rejuvenate resources;
Decouple growth from energy consumption and shift to greener sources;
Minimise emissions and contribute to the mitigation of climate change;
Minimise, reuse and recycle waste to reduce the burden on landfills;
Enhance traceability and use of ethical and sustainably sourced raw material;
Eliminate hazardous chemicals from all processes and adopt green chemistry; and
Responsible fashion and transition to the circular economy.

Portfolio

Green Portfolio

The Group emphasises on responsible sourcing, ensuring traceability to the farm and transparency in the processes. Besides working only with certified vendors, Vardhman is a member of the Better Cotton Initiative (BCI) since 2011. In 2015, Vardhman launched Project Pragati and became the implementing partner of BCI in Gujarat. Currently, 5 producer units, 80 villages and about 14,000 farmers are associated with this project in which they are taught about better farming practices/techniques like integrated nutrient management, soil testing, use of PPE, integrated pest and disease management, contamination control and water stewardship.

# Green Fibres: Vardhman uses sustainable fibres to manufacture yarns and fabrics. The green portfolio is continuously growing with a focus on organic, recycled, and sustainable fibres and fabrics. The major fibres used by the Group include:

Natural fibre: Recycled and BCI cotton;
Man-made regenerated fibre: EcoVero, Modal, Tencel, ReFibra, LivaEco, bamboo, FSC - Viscose;
Synthetic: Recycled polyester and recycled nylon.

# Green Processes: Responsible sourcing is amplified by choice of the right processes. The use of chemicals is not limited to washing and cleaning in the textile industry today, rather chemicals encapsulate processes from pre-treatment to finishing. All the dyes and chemicals used are GOTS certified while the finished fabric is Oeko-Tex Class-I certified. With an emphasis on mechanical and eco-friendly finishes, the Group is dedicated to detoxifying the fabric manufacturing process.

# Green Products: The Group is dedicated to setting high standards for the industry with products that provide environmental, social and economic benefits. From the extraction of raw material to the final disposal of waste generated, Vardhman has developed and promoted sustainable products across different businesses. The Group produces a variety of yarn using BCI, Organic, FairTrade and recycled cotton besides natural fibres like wool, hemp, linen and silk. These sustainable raw materials are also used to manufacture quality fabrics that do not disturb the ecology. Vardhman is also utilising PET bottles (plastic) as a raw material to manufacture new-age fabric R|Elan, also called Green Gold.

Vardhman Group keeps evolving products and processes to make them more sustainable. The use of mechanical and natural extracts-based finishes has revolutionised the fabric manufacturing process. Manufactured in state-of-the-art facilities with the latest technology, these products have set a benchmark in quality, range and innovation in domestic as well as global markets.

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Vardhman Group

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