Uttam Sugar Mills Limited Unveils Comprehensive Business Responsibility and Sustainability Report for FY 2023-24

Uttam Sugar Mills Limited is one of the leading sugar manufacturing companies in India. The company has published its BRSR for the fiscal year 2023-24. The report, as directed by the SEBI, has been compulsorily prepared by the top 1,000 listed entities in terms of market capitalization. It reflects Uttam Sugar's commitment to sustainable and responsible business practices. Overview The BRSR forms an integral part of the annual reporting for Uttam Sugar Mills Limited, which reflects the commitment of the company to the National Guidelines on Responsible Business Conduct. The report reflects Uttam Sugar's commitment to ethical business operations, environmental conservation, and social responsibility. Body Founded in 1993, Uttam Sugar Mills operates across multiple verticals, comprising sugar, power generation through co-generation, and manufacturing of industrial alcohol. In the financial year 2023-24, the contribution of sugar production was 78.03% to the company's turnover, while distillery products accounted for 19.09% and power generation was 2.88%. Four operating plants—two in Uttar Pradesh and two in Uttarakhand—provide the company with a strong production capacity. In the wake of the problems thrown up by climate change and the vagaries of the market, Uttam Sugar has carved out sustainable sourcing practices, though it concerns the procurement of sugarcane, which is procured locally from the farmers nearby. As of March 2024, Uttam Sugar had in its workforce 521 permanent employees and 2,688 workers. The health and safety of the workforce have also not been forgotten, as have comprehensive health insurance coverage and safety training programs that are usually provided to all employees. It is also committed to maintaining female employees at a small but vital percentage in the company's workforce. Uttam Sugar's environmental initiatives are of the essence in the BRSR. Various measures have been ensured by the company to reduce its impact on the environment: no extraction of groundwater for its sugar units and utilization of by-products like bagasse to generate power. Similarly, the wastes are being disposed of by recycling and reusing the same molasses from the sugar plants are converted into industrial alcohol, and ash from boilers is put to further use to get potash. The report also sheds light on Uttam Sugar's commitment to corporate governance. It has implemented a strong governance structure, ensuring thereby full compliance with statutory regulations while maintaining operational transparency. BRSR also discusses at length the company's risk management approach regarding possible climate change that may impact its raw material sourcing and overall business continuity. Besides this, Uttam Sugar has been actively involved with corporate social responsibility (CSR) activities in the areas of education, healthcare, and rural development. The company's CSR activities are mainly concentrated around the vicinity of the manufacturing units to improve livelihoods in those areas. Conclusion Uttam Sugar Mills Limited's BRSR for FY 2023-24 underlines the commitment of the company to sustainable business practices and responsible corporate citizenship. While enabling Uttam Sugar to ensure long-term viability for its business, integration of ESG factors into the operations would also mean a positive contribution to society and the environment. The proactive approach in addressing sustainability-related concerns sets the bar against which players in the sugar industry need to benchmark themselves as a responsible corporate entity. Source: BRSR Credit: Uttam Sugar Mills Limited