Good Green Vision Creating a Greener India Carbon Neutrality, Positive Water Balance, Energy Efficiency & Renewable Energy Use Achieve Zero Waste to l

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1 Resource Intensity Reduction through ZED module in Vendor Cluster Godrej & Boyce an organization with 119 years of Legacy Market leader in Furniture Industry with Home, Office & Specialty Furniture Heading for 2200 Cr + Business in One of the largest divisions of Godrej & Boyce Unmatched reach. 16 Branches & over 700 Dealers Supported by 5 manufacturing locations and 95 major suppliers 2 1

2 Good Green Vision Creating a Greener India Carbon Neutrality, Positive Water Balance, Energy Efficiency & Renewable Energy Use Achieve Zero Waste to landfill Beyond Sourcing Achieve 35% reduction in specific energy consumption,50% reduction in specific water consumption,15% use of renewable energy Cluster Philosophy GETTING TOGETHER ACHIEVING TOGETHER LEARNING TOGETHER 2

3 Vendor Cluster Journey Towards World Class Organisation Periodic shop floor visits for hand holding Training & Guidance by Expert CII Counsellors. Rewards & Recognition Monthly Progress review meetings Bringing Non competing Suppliers together Commitment from Top Management of Godrej Interio Bringing non competing suppliers together for cluster Low Influence High Impact High Influence High Impact Low Influence Low Impact High Influence Low Impact Natureof Business Steel Fabrication No. of Vendors 24 No. Wood Working 7 No. Steel & Wood Working 3 No. Packaging 3 No. Sofa Manufacturing 1 No. Gas springs Mfg 1 No. Plastic components 1 No. 3

4 A goal without a plan is just a wish Training and Guidance by Experts 6 Training Programs 17 Suppliers Man hours Awareness on Management of Energy, Water and GHG emissions by Godrej Interio Team Basic Training on Resource management by CII Experts Advanced Training on Energy Efficient Systems by CII Expert Faculties 4

5 Energy Pledge & Target Setting A Pledge to reduce resource Intensity by 25% in 3 years Parameter FY14-15 FY15-16 FY FY Energy, Water, Waste Base line 15 % over previous year 5 % over previous year 3 % over previous year Handholding by Godrej Interio 17 Suppliers 102 handholding visits so far. On site training programs covering all associates of Supplier Guidance by Godrej top Management during Gemba walk in MRM Addressing entire team by Godrej top management 5

6 Improvement scope Identified in Hand holding Visit (some Examples) Resource Areas Identified For Energy Saving Current Status Target Action required to take Target Date To Optimize Utilization of Compressors kwh/hr 83 kwh/hr To install Centralized screw type compressors unit along with reservoir tank Electricity To utilize waste steam from Boiler to heat Furnace oil, Thus eliminating the requirement of electrical heater 7200kWh / Year 1800 kwh / Year To provide a steam recirculating line around the furnace oil tank to heat the furnace oil To Reduce power consumption on the skipper machine during break hours kwh / Year kwh / Year (15% Reduction) by making operation of dust collector automatic and independent of requirement for manual Improvement scope Identified in Hand holding Visit (some Examples) Resource Areas Identified For Energy Saving Current Status Target Action required to take Target Date To Reduce water consumption by utilizing non potable water generated after purification from R.O plant 52000Lit / Month Zero wastage of non potable RO water To provide a tank & pipeline & connect the waste water collected to toilet, gum making and garden Water To save water in rinsing process of pre-treatment KL /Day 125 KL/ Day To makearrangement for Water transfer from tank 2 to tank 1 & similarly from tank 4 to tank 3 for optimize utilization of water To use recycled water from ETP is used for gardening 15000L / Day Zero wastage of recycled water To provide system to use water for gardening

7 Improvement scope Identified in Hand holding Visit (some Examples) Resource Areas Identified For Energy Saving Current Status Target Action required to take Target Date To changethe sheet size for achieving better optimization (yield improvement) 8.1 % 5.8 % To check with supplier and buy cut to size material to Reduce scrap % Waste To check possibility of recycling of EPSwaste generated in the plant 318 Cubic feet Zero waste of EPS To Landfill Tofind out vendor for recycling of EPS waste To reuse scrapgenerated in process as RM for new product 120 kg / Month Zero waste for some products Used 3 ply carton scrap by sticking 3 strips made it 21 ply to use it as fitment Monthly progress review meetings Monthly reviews are conducted by rotation with cluster suppliers in presence of CII Mentor & Godrej Top Management Suppliers present their ideas and thoughts including those on green manufacturing. Supplier s progress is monitored on Green as well as other initiatives during these meetings. 7

8 Resource Intensity Reduction Initiatives Review During MRM Resource Action Decided Target Date Status Benefit Achieved / Year Remark (unit saving Annual) Electricity Water Waste 1 Replaced 30 HP dust collector with Separate Dust Collectors of 10HP & 7.5HP and Only 7.5 HP dust collector used for Night sift. 2 Install VFD with pressure transducer for 30HP compressor. Jan'16 3 Replaced fluorescent lamps of 360 watts (in total)with CFL bulbs. 164 watts ( in total) Decd 15 Completed 4,15,800/ kwh Progress as per plan - - Dec'15 Completed 2,148/- 252 kwh 1 Recycled water from ETP is used for gardening Nov'15 Completed 12600/- 180 KL 2 Changed the normal water taps with Push type water taps Jan'16 Completed 2100/- 30 KL 3 In pretreatment, Auto valve system for water rinse tanks (no-3, 6 & 7) i.e. water flow will start automatically only when cage with material is dipped in tank Feb 16 Progress as per plan To buy sheet in cut to length form to reduce process scrap Oct 15 Completed 8,73, % waste reduction 2 To purchase material in cut to length strips for all sizes above 150mm Nov'15 Completed 80,000/- 1.9 % waste reduction 3 Recycling of EPS ste generated in our plant Nov 15 Completed 5600/- Recycling of 318 Cubic ft EPS. Zero Landfill Green Completed Yellow Progress as per plan Red Crossed Tgt. Date Energy Conservation 53 Projects Average per project Saving of 23% Name of the Associate / Vendor Title of Project Units Saved (kwh/month) Project Specific Improvement (%) Khutale Engg Installation of solar energy system % Wudhouse Designs Pvt Ltd Corru cartons (I) Pvt ltd To reduce the electricity consumption by replacing CFL bulb with LED To reduce the electricity consumption by decentralizing the dust collection system Conversion of 20 tube lights of 36W in to CFL of 18W Replaced asbestos sheets with Transparent polycarbonate & GICC sheets % 1,523 22% 94 50% % M/s. P. M. ELECTRO-AUTO PVT. LTD Optimized Utilization of Compressors by installing Centralized screw type compressors unit along with reservoir tank 27 24% 8

9 Water Conservation 17 Projects Average per project Saving of 37% Name of the Associate / Vendor Title of Project Units Saved (KL /month) Project Specific Improvement (%) Corru Cartons (I) Utilization of non potable water generated after purification from R.O plant for Gardening and Flushing purpose % Khutale Engg Usage of recycled water from ETP for gardening % Silver Techno Mech Water saving in rinsing process of pre-treatment by making arrangement for Water transfer from tank 2 to tank 1 & similarly from tank 4 to tank 3 to optimize utilization of water % ShreejiIndustries Harvested 1,25,000Liters of water in last 2 years P M Electro-Auto Installation of Sludge separator unit & Drip drop addition system in pre-treatment process to reduce water changeover frequency % U.G. Tank 25K ltrs Fuel Conservation 23 Projects Average per project saving of 7% Name of the Associate / Vendor Title of Project Units Saved (Units /month) Project Specific Improvement (%) Silver Techno Mech To maintain even temperature in oven at all points by 876 kg / month 13% changing position of louvers (Saving of LPG) P M Electro-Auto Pvt Gas saving by blocking first two louvers in dry off Ltd, Nashik oven to reduce heat loss 338 kg / month 3.21% P M Electro-Auto Pvt To use residual LPG in the cylinder by installing Liquid Ltd, Palghar Take Off System 7.2 Kg / month 0.05% 9

10 Waste Reduction 50 Projects Average per project Saving of 12% Name of the Associate / Vendor Title of Project Units Saved (Units /month) Project Specific Improvement (%) Corru Cartons (I) Recycling of thermocole waste generated in the plant 318 Cu.ft/ month 100% Corru Cartons (I) To reuse in-process scrap as RM for new product 120 kg / month 100% Khutale Engg Procurement of cut to length steel (RM) for better optimization 2240 Kg / month 26% Carefine Woodworks Material Size optimization (wooden boards) from size 8X6 & 9X6 to size 7X6 & 9X5. Product mix production planning for better material utilization 2342 kg / month 25.3% Overall Resource Intensity Reduction of % Guidelines for Weighted Average For Powder coating Suppliers For Other Suppliers Resource Weight age Weight age Electricity 30 % 40 % Water 30 % 20 % Wastage 20 % 40 % Fuel 20 % N/A Resource intensive Suppliers Weighted Average Reduction in Resource Intensity Khutale Engg 41.90% Wudhouse Designs 24.90% Jay Industries 15.30% P M Electro auto, Palghar 14.85% Carefine Woodworks 13.40% P M Electro auto, nasik 12.11% Overall Average Reduction 13.65% 10

11 Recognitions for Green initiatives at Interio annual Supplier s meet M/s P M Electro Auto s significant contribution towards Interio s BIFMA Gold certification M/s Vishwadeep for innovative use of Bio-Fuel M/s Zenith Metaplast for tree plantation program Awards at National cluster for Green initiatives M/s MechTech 1st Prize for Case Study on resource conservation M/s V K Fabricators 1st Prize for Kaizen on material conservation M/s PM Electro Auto 1st Prize for Kaizen on Energy conservation 11

12 Lesson from the Corn Farmer Sharing of Good Practices with the Industry Mr Atul Sohani, Godrej Interio sharing on Green Supply chain during Greenco Conference, 2015 M/s Vishwadeep sharing innovative use of Bio-Fuel and won Prize in CII Green Conclave Kaizen in Green Category Mr. Avinash Sonavane from Godrej Interio sharing Project on Transport mile reduction through Packaging improvement M/s Khutale Engg sharing Energy & water saving initiatives & won CII Green Conclave Kaizen in Green Category 6/21/

13 Happy to Share Our Corn Thank You Atul Sohani Associate VP - Strategic Sourcing asas@godrej.com