Toreduce the dependence on fossil fuels, Asian Paints substantially augmentedinvestments in renewable energy projects. As part of Renewable Energy strategy’RE36′, they are working towards sourcing 36% of the total electricityrequirement at decorative paint plants through renewable sources by 2020.
Newsolar and wind installations during the reporting period boosted totalinstalled capacity to 15.58 MW and helped them end the year at RE 22% asagainst the target of 18.6%. The company has taken initiatives to arrest airleakage; it was observed that 50% of compressed air was being lost to leakagesleading to non-productive energy consumption and higher costs.
A team wasformed to conduct fortnightly air audits, convert multiple FRL to common FRL,and replace faulty diaphragms in actuator valves. As a result, air leakagesreduced from 52% to 32%. More than 50% of the net revenue of the company isspent on raw material and packing material. The Company also incurs cost intreatment and disposal of waste which increases with higher material wastage.It is therefore imperative for the organization to emphasize on materialefficiency to reduce the resource consumption, avoid waste generation andreduce expenditure.
AtAsian Paints, union settlements have always been linked with productivityimprovements. The robust grievance redressal system across the organizationmeans that ‘justice is not only done, but also seen to be done’. There has beena focus on growth and inclusive participation for all cadres in the plant,which has seen operators take up supervisory roles and grow in their careers.This has translated into a new outcome based approach to labor settlementsreplacing the traditional activity based model. The Company’s policy prohibitsengaging of any child labour or involuntary labour. Thus, there are nocomplaints relating to child labour, forced labour and involuntary labour.During the financial year 2016-17, the Company received 4 (four) complaints onsexual harassment and took necessary steps to resolve and close 3 (three) ofthem in accordance with applicable laws and guidelines. As on 31st March, 20171 (one) complaint is under investigation.
A limited number of women are presentin its contract workforce and there is no discrimination between men and womenwith regard to working conditions and payment of wages. The Company’s terms ofcontract clearly stipulate statutory requirements for contractors and theyundergo stringent selection criteria and screening. There are no cases filed byany stakeholder against the Company regarding unfair trade practices,irresponsible advertising and/or anti-competitive behavior during the last (5)five years. The Committees constituted by the Board of Directors of theCompany function in accordance with the framework and terms of referenceassigned to them by the Board, in accordance with the provisions of theCompanies Act, 2013 read with the Rules issued there under and ListingRegulations.
The Company has an optimum composition of Executive andNon-Executive Directors. Out of 14 fourteen members on its Board, seven areIndependent Directors, six are Non- Executive/ Promoter Directors and oneManaging Director & CEO. The Independent Directors of the Company have beenappointed for tenure of five years up to 31st March, 2019. Mr. R. Seshasayeehas been appointed by the Board of Directors with effect from 23rd January,2017 for a period of five years, subject to approval of the shareholders of theCompany at this ensuing Annual General Meeting (AGM). The meetings of the Boardof Directors are generally held in Mumbai and also, if necessary, in locations,where the Company operates.
During the financial year, seven meetings of theBoard of Directors of the Company were held.