Gurugram, September 4, 2024: Rico Auto Industries Limited, a leading name in the automotive manufacturing industry, today announced the release of its Business Responsibility and Sustainability Report (BRSR) for the financial year 2023-24. The report underlines the commitment of the company to sustainable business practices, responsible resource management, and a focused approach to environment, social, and governance factors.
Focus on Sustainable Manufacturing and Global Reach
Formed in 1983, Rico Auto has been a leader in the manufacture of high-precision components to automotive Original Equipment Manufacturers like BMW, Maruti, Tata, and Toyota. Having addressed the domestic and international markets with a total of 15 plants in India and two international offices, Rico Auto exports 13% of its total turnover to seven countries. Non-ferrous metal castings, ferrous castings, and assemblies form an important part of the Rico Auto portfolio that goes towards contribution to the automobile industry.
The report also puts in limelight that Rico Auto draws 100% of its turnover related to the manufacture of motor vehicles and transport-related products, out of which 70% is non-ferrous castings and 30% iron castings. These figures reflect its dominant position in the auto-components sector.
Commitment to Renewable Energy and Care for the Environment
The report reflects that at Rico Auto, a commitment has been made to reduce its carbon footprint and promote renewable energy. The tracking exercise on GHG emissions was carried out to ascertain their sources and mitigation plans. It has developed a roadmap for addressing Scope 1, 2, and 3 emissions across the value chain. Now, the company had actively used various energy-efficient solutions not only for reducing operational energy consumption but also waste generation.
Waste management is also one of the major reasons for the company, which has taken huge steps toward responsible waste management. It tries to reuse or recycle 95-97% of the aluminum and iron raw material used in the production process, reducing the environmental impact to a minimum. In this respect, Rico Auto integrates a circular model that guarantees maximum resource efficiency with a minimum of waste.
The report also says that Rico Auto is developing systems towards ZLD mechanisms in its plants, thereby reducing the risk of water pollution and fostering water conservation.
Employee Welfare and Inclusivity
The report manifests a very strong commitment to the health, safety, and well-being of all employees. Rico Auto is ISO 45001:2018 certified for its Occupational Health and Safety Management System, hence assuring stringent safety measures in all concerns of the company. To this effect, the company provides all-around health and safety training, bearing in mind that 100% of its personnel-7,408 employees and workers-are regularly educated on occupational hazards and best safety practices.
On gender inclusivity, 2.56% of the permanent employees employed in the firm are female, and Rico Auto endeavors to ensure that the workplace provides an inclusive environment to have a diversified team. Further, it provides comprehensive health insurance covering insurance and accidents. Thereafter, in the stewardship of climate change and the embrace towards the community,
Thus, the report highlights climate change as one of the major risks. In that regard, Rico Auto realizes the great risk that accompanies climate change, particularly on energy use and possible environmental destruction. For this reason, it is going out of its way to try and invest as much as possible in renewable sources of energy, as well as in installing energy management systems that are meant to minimize heat generation and ensure efficiency in the consumption of energy altogether.
Apart from the environmental issues, Rico Auto has also come up as an active propagator of CSR. In addition, the company has contributed to socio-economic development in the local communities through various CSR initiatives on education and healthcare. During FY 2023-24, Rico Auto spent ₹19.09 crore on CSR activities, reflecting its undeterred commitment to community engagement and upliftment.
Opportunities and Challenges
The BRSR also outlines the risks and opportunities to the company. The disruptions to its supply chains across the globe, increase in raw material costs are some of the challenges Rico Auto faces. However, at the same time, the Company sees these as an opportunity to explore other models of supply chains and invest in local sourcing that would reduce their dependence on imports.
By being innovative with its proactive approach to innovation, especially in environmental product development and stakeholder involvement, the company’s basis for successfully exploiting emerging market trends is well laid. Through most of its research and development investment, Rico Auto is focused on friction materials and clutch components that are mainly directed toward reducing imported parts and carbon footprints.
Conclusion
The BRSR of Rico Auto Industries for F.Y. 2023-24 is reflective of the firm commitment of the company towards sustainability, employee welfare, and responsible business conduct. The emphasis on renewable energy, waste management, and local sourcing puts the company in the league of global ESG standards. As Rico Auto expands its presence across both domestic and international markets, commitments toward sustainable growth have remained undeterred by environmental and social responsibilities.
The full BRSR report is available on the company website and amply reflects the performance of the company in a very transparent fashion, together with its future objectives.