The Business Responsibility and Sustainability Report of Vadilal Industries Limited for the financial year 2023-24 brings to light the leading name of Vadilal Industries Limited within the Indian ice cream and dairy product market. Therefore, this report will underline the effort of the firm in sustainable business practices, responsible corporate governance, and also taking care of the environment. The BRSR corresponds to SEBI requirements and NGRBC, showing Vadilal’s commitment to transparency and the path of sustainability on a long-term basis.
Overview and Product Focus of Vadilal
Vadilal Industries was established in 1982. The company operates mainly in the business of a wide range of ice creams, frozen desserts, and processed foods. The company’s key operations are spread across India and exports to more than 24 countries, thus contributing 18.74% of the company’s total revenue. The company operates in 24 states and 2 union territories domestically, thus being a strong contributor to the Indian food industry. Apart from the contribution, BRSR covers areas such as CSR initiatives of Vadilal, sustainable production, and employee welfare.
Employee Welfare and InclusivityOne of the major building blocks of Vadilal’s corporate responsibility is the welfare of its employees. For 2023-24, the company has engaged 632 employees, out of which 3.95% are women employees. A majority of the employees are covered under health and accident insurance. The company puts a high premium on the welfare of its workers. Special attention is given to inclusiveness, with activities aimed at increasing gender diversity across its operations. Additionally, 83 permanent workers were under health and maternity benefits—a drive forwarded towards the health and safety of the employees.
However, the report shows that male employee turnover has been higher than in previous years, though it does not deter Vadilal’s attention to improving employee retention through welfare programs and skill development initiatives.
Environmental Sustainability and Resource Management
Vadilal has made significant strides in reducing its impact on the environment. In all, the company consumed 25,18,17,841 GJ of energy in FY 2023-24, up from the previous year, while the energy intensity per unit of turnover was reduced to underline its effort toward energy efficiency improvement.
Water conservation has also been the focus, with the total water withdrawal decreasing from 4,11,840 kiloliters in FY 2022-23 to 3,55,386 kiloliters in FY 2023-24. The company is targeting a further reduction in water consumption for all its operations, complemented by the implementation of better waste management practices. Similarly, in the case of plastic waste generated, Vadilal reported a significant reduction—from 62.27 metric tons in FY 2022–23 to 37.31 metric tons in FY 2023–24—and was thus moving in the right direction to reduce its ecological footprint.
Corporate governance and ethical practices overview of BRSR of Vadilal: The importance of good corporate governance is reflected in BRSR. About all nine principles of the NGRBC, Vadilal follows the principles of integrity, transparency, and ethical business practices. The Board of Directors is headed by a woman director and two other women members, comprising 33.33 percent of the board’s strength. The Board ensures that the company conducts responsible business and also deals with the management of risks.
The company is undercover of an anti-corruption policy, and no legal penalties or actions against the company have been filed in the past year due to corporate malpractices. Attention to ethical operations also extends to its value chain partners, who are expected to fall in line with the standards of transparency and accountability established by Vadilal.
Social Responsibility and Community Engagement
Though the CSR activities of Vadilal do not come under the mandatory ambit of the Companies Act, of India, the company has been actively involved in several community development initiatives. These are through direct participation with dairy farmers, suppliers, and local communities to enhance their agricultural practices and sourcing quality raw materials. The sourcing strategy of Vadilal includes a focus on sustainable sourcing, with about 60% of its inputs sourced sustainably.
Education improvement, women’s empowerment, and rural development for the socio-economic upliftment of communities within which the company operates are the other initiatives supported by the company.
Conclusion and Future Outlook
The Business Responsibility and Sustainability Report of Vadilal Industries Limited for 2023-24 underlines a relentless pursuit to integrate sustainability at the core level of business operations. From reducing environmental footprint to nurturing the well-being of employees, the growth of the company goes hand in hand with its responsibilities. Continuing this trend, Vadilal is all set to emerge as a leader in the Indian food industry, considering ethical business practices, sustainability, and inclusivity.
Source: BRSR
Credit: Vadilal Industries Limited