Stretch and

Sustainability
Generating more from less

Balrampur Chini Mills Limited

Sustainability Report 2021-22
 3 messages for
Contents

our readers
02 Part one: The context on the growing
importance of sustainability
09 Part two: How India is addressing climate
change
13 Part three: Our Management’s perspective
on sustainability
14 Corporate snapshot One, climate change is one of the
16 Strategic clarity
18 Chairman and Managing Director’s biggest challenges humankind
overview
22 Enhancing stakeholder value is facing in centuries; Balrampur
26 Part four: Balrampur and environment
sustainability is investing today for a better
30
33
Balrampur and its ESG commitment
Part five: Balrampur’s environment
tomorrow.
commitment
43
46
Part six: Balrampur’s social capital
Business driver: Employee management
Two, the world is at the cusp
50
52
Business driver: Digitalisation
Business driver: Our safety commitment
of a clean revolution, the green
54 Business driver: Our corporate social
responsibility
shoots of which are visible through
64 Our governance commitment progressive government policies,
66 Our Board of Directors
70 How we manage risks at Balrampur increasing sectorial confidence and
rising related investments.
Three, Balrampur’s business model
Cautionary statement
is delivering a deeper sustainability
The statements made in this report describe the Company’s
sustainability objectives, challenges and counter-responses. with a growing proportion of
Some of these may be estimates or ‘forward-looking’ within
the meaning of applicable securities laws and regulations.
However, the management has taken a responsible and
revenues derived from products
conservative view of these estimates wherever precise
numbers could not be provided. directed towards decarbonisation.
 PA R T O N E

The context on
the growing
importance of
sustainability

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The challenge
begins here
There is a growing divergence between the global
population and the resources available to sustain it

Global population growth The accelerating global population growth rate

1804 123 years

One 1 to 2
2011 billion 1927
12 years billion 33 years
estimated
Seven Two 7 to 8 2 to 3
billion billion billion billion
2023E

1999 Eight 1960 12 years 14 years

Six billion Three 6 to 7 3 to 4
billion billion billion billion

1987 1974 12 years 13 years

Five Four 5 to 6 4 to 5
billion billion billion billion

Presented in a clockwise manner starting from the top

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The challenge of Climate change is
global warming is increasing the heat on
in our face, literally humankind.
Temperatures are rising everywhere A 0.8°C increase in the average global temperature has been recorded across the
past 100 years (Source: National Oceanic and Atmospheric Administration)

July 2021 At 1.5°C of global warming…

Possibly the Increasing heat

warmest month waves, longer
on record since summers and
1880 shorter winters
July 2021 record: 0.93°C (1.67°F) above
the 20th-century average of 15.8°C At 2°C of global warming…
(60.4°F).
Nine of ten warmest Julys have occurred
since 2010, with the last seven Julys
Heat extremes
(2015-2021) being the seven warmest to reach critical
Julys on record. (Source: Co2.Earth)
tolerance
June 2022 thresholds for
Earth’s 6th agriculture and
warmest year on health
(Source: IPCC)
record
The average global surface (land and <5.8°C
ocean) temperature in June 2022 was
1.57 degrees F (0.87 of a degree C) above
the 20th-century average of 59.9 degrees
Projected increase
F (15.5 degrees C), making June 2022 the
sixth warmest in 143 years.
in temperature
There is a greater than 99% chance that
(degrees
2022 will rank among the 10-warmest centigrade) by
years on record, but only an 11% chance
that it will rank among the top five year 2100
warmest. (Source: WHO)

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 PA R T T W O

How India Is
Addressing
Climate Change

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Climate CONTEXT

change India’s climate

and India change response
Mr. Narendra Modi, the Prime is backed by
long-term
Minister of India, made important
commitments at the COP26 in 2021

policies
These policies have been directed to enhancing
predictability, viability and efficiency

Atmanirbhar Bharat Renewable energy sector

Focus: Commitment to develop Indian Focus: Increase in India’s customs tariff on

India will meet

industry solar panels and modules from April 2022

50% of its energy

Outcome: Moderate logistics cost, reduce Outcome: Existing players rapidly
imports and enhance self-reliance enhancing their capacities

requirements from
renewable energy Gas sector Water sector
by 2030 Focus: Accelerating gas coverage of India Focus: The Indian government created
through multiple city gas distribution the Jal Shakti Ministry to prioritise water
bidding rounds management
Outcome: Likelihood of vehicle pollution Outcome: Enhanced water productivity
declining through piped water access, rainwater
harvesting, water conservation and
national river linking

India will India will Green hydrogen sector National Biofuel Policy
reduce the carbon achieve
intensity of its its net zero Focus: Encouraging national investments
in green hydrogen production
Focus: Encouraging sugar manufacturers
to set up capacities to extend from sugar
economy by more carbon target Outcome: Some companies have
to ethanol manufacture (for onward

than 45% by 2070

blending with automotive fuel)
announced mega investment
programmes to make India a net exporter Outcome: Unprecedented investment
of green hydrogen programme in ethanol

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 PA R T T H R E E

Our
Management’s
Perspective On
Sustainability

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C O R P O R AT E S N A P S H OT

Balrampur Chini Mills

Background Location Listing

Limited.
Balrampur Chini Mills Limited is among The Company’s headquarter is in Kolkata, The Company is listed on the BSE Limited
the largest integrated private sector India. The Company possesses 10 sugar (scrip code: 500038) and National Stock
sugar companies in India. The Company factories across the cane-rich belts Exchange of India Limited (scrip code:
is led by Mr. Vivek Saraogi, Chairman and of Eastern and Central Uttar Pradesh, BALRAMCHIN) where its equity shares are
Managing Director and managed by five distilleries and ten cogeneration actively traded. The market capitalisation

One of India’s leading

experienced professionals. units, one of the largest integrated of the Company was H9985.72 crore as on
complements in India’s sugar sector. 31st March, 2022; promoter shareholding
in the Company was 42.42%.

sugar companies.
Engaged in the principal
Businesses Ratings State-of-the-art

The Company generates revenues from The long-term credit rating of the The Company made prudent investments

businesses of sugar and

its business of sugar and distillery, among Company was upgraded to AA+ (Stable); in cutting-edge technologies, which
others. It generated 80.68% of revenues the short term rating was re-affirmed at helped enhance operating efficiency
from the sugar segment and 18.95% from A1+ by CRISIL. and environmental responsibility. The

distillery.
its distillery segment during FY 2021-22. Company helped enhance farm yields by
distributing high yielding seeds.

Respected for business

Pioneering

sustainability, operational
ƒ The Company was among the first in distillery to operate for 330 days a year ƒ The Company acquired loss-making
India’s sugar industry to moderate an (compared to the erstwhile 270 days) sugar units and turned them around
excessive reliance on sugar and enhance
ƒ The Company repaid a majority of its ƒ The Company was among the first
distillery and cogeneration revenues

efficiency and responsible

long-term debt to emerge as a liquid and sugar companies to digitally transfer cane
ƒ The Company was one of the first sugar under-borrowed company proceeds to farmers
companies to commission an incinerator
ƒ The Company rewarded shareholders ƒ The Company has set up a state-of-the-

citizenship.
boiler in its distillery, becoming zero
with five equity buybacks in five years art distillery fed by flexible dual-feed
discharge in the process, empowering the
coupled with dividends

A commitment derived Eco-friendly Our capacities Our manufacturing units

from generating more 77,500 10

The Company tried to achieve its goal
towards environmental responsibility
through proactive investments that TCD cane crushing capacity per day Number of sugar units

from less. 1,050 5

moderated water consumption and
effluents discharge while increasing
recycling. KLPD of distillery capacity Number of distillery units

175.7
MW saleable co-generation capacity
10
Number of cogeneration units
Note: Capacities as in December 2022

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S T R AT E G I C C L A R I T Y

4 ways in which
Balrampur is responding
to the global challenge
and national agenda on
climate change
3 4
1 2
Making an Graduating from a Ensuring that at least Ensuring a focused
unprecedented traditional positioning ~30% of its revenues benchmarking of its
investment in distillery as a sugar company are derived from activities with United
expansion, one of the largest into a renewable energy renewable energy by Nations’ Sustainable
by any sugar company in organisation (deriving FY 2024-25 Development Goals
India in a compressed energy from a sustainable
period of time natural resource)

Operational integration
Capital expenditure Business integration
Retail and institutional

~775.47 ~550.34 100 100

Cane Sugar consumers and exports

Oil marketing
H crore invested in renewable H crore invested in renewable % of raw material % of raw material Cane Sugar Molasses Ethanol companies
energy until 31st March 2019 energy after 31 March 2019 consumption generated consumption generated
upto 31st March 2022 inhouse, FY 2018-19 inhouse, FY 2021-22 Country liquor /
Cane Sugar Molasses Extra neutral alcohol Industrial usage

State electricity grid /

Cane Bagasse Co-generated power board

Cane Press mud Potash ash Farmers

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 Ihave often been asked about our Company’s success.
We have succeeded and endured not because we made the
necessary business investments; we succeeded because we made
responsible investments in our collective survival.

There was once a perception that it was would enhance our resistance to downstream raw materials from the
necessary to engage in just a handful cyclical impacts, strengthening business market but could generate that from
of environment-protecting initiatives sustainability; this made us seek different within – more from less – that inevitably
as an insurance against corporate ways of maximising value from a stick of translated into a superior return on gross
mortality. The years have emphasised cane. block.
something different: that it is necessary
Strategic outcomes Balrampur made forward-looking
to manage all factors influencing the
This stated position translated into a investments in technology to enhance
delicate environmental balance of
number of strategic initiatives. operational efficiency: a timely
the world; a significant focus on one
investment in the advanced cane variety
over the others could be detrimental; Balrampur was one of the first sugar made it possible to moderate the cane
the solution lies in the extensive and companies to broad base from sugar growing cycle that inevitably resulted in a
concurrent management of all elements. to the downstream processing of lower use of water, chemicals and labour;
The answer is not in the selective but the byproducts to create multiple products an inter-cropping discipline coupled
comprehensive. This comprehensive and and revenue streams. This maximised with new age cane variety enhanced
balanced respect for the elements drives the value we could successfully generate productivity (more output from a given
our sustainability. from a stick of cane – more from less land area); the commissioning of an
For a progressive sugar cum energy – that emerged as the basis of our incinerator empowered the Company’s
company like ours, the concept of sustainability. distillery to extend operations from 270
sustainability has been integral to our Balrampur enhanced its operational days to 330 days a year.
existence ever since we went into scale from one manufacturing unit in And lastly, at Balrampur, we believe that
business. the early 1999 towards the end of the compliances and clearances represent
At BCML, we describe sustainability using first decade of the new millennium; the a license that keeps us in business. Our
just one word – Stretch. Company commissioned or acquired distillery plants are zero liquid discharge,
eight manufacturing facilities within the our emissions are below statutorily
The principal implication of ‘Stretch’ is space of just 10 years, the fastest capacity prescribed limits and our products
explained in another three words: ‘More accretion in the Indian sugar sector. This (ethanol and co-generation) are playing
from less’. growth made it possible for the Company
C H A I R M A N A N D M A N A G I N G D I R E C TO R ’ S O V E R V I E W a direct role in moderating the carbon

Our ‘More from less’

There are some good reasons for this to efficiently amortise its managerial footprint of India and the world.
stretch-based positioning. bandwidth, farmer goodwill and
If you ask me where we go from here,

positioning will enhance

stakeholder relationships (bankers among
One, the business is based on thin my answer would be: stretch further
the most important), which translated
margins that make it imperative to sweat through operational efficiency; enhance
into a large operating base coupled with

our relevance in the

all our resources to the maximum. the circularness of our business (through
one of the lowest cost of funds within the
country’s sugar sector. resource balancing); enhance the
Two, for long the business was controlled

modern world.
proportion of revenues from products
– raw material pricing and sourcing, sales
Balrampur ensured that its capacity that moderate the global carbon
timing and plant location - that made
expansion was prudently and adequately footprint; explore the manufacture of new
it imperative to make the fullest use of
sized: the quantum of cane that it products that make the world cleaner.
whatever resources were allocated.
could mobilise was matched to its
crushing capacity; in turn, its ethanol This strategic direction, faithful to our
Three, the business was cyclical, which
manufacturing capacity was sized ‘More from less’ positioning, will enhance
warranted that we generated the highest
with the quantum of molasses raw our relevance in the modern world,
surplus when conditions were favourable
material that could be generated; the make us integral to decarbonisation and
and maximised our efficiency during the
co-generation capacity was raised in enhance value for all our stakeholders.
downtrend, emerging as the last person
standing. accordance with the quantum of bagasse Vivek Saraogi
available. The result was that apart Chairman and Managing Director
Four, we recognised that broad basing
from cane Balrampur did not procure
from a single revenue stream (sugar)

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OVERVIEW

Balrampur’s business Balrampur expects to

complies with capitalise on positive
UN’s Sustainable realities to enhance
Development Goals sustainability
Natural Capital: Sustainable value chain

Government policies
An increasing number of Market place dynamics
governments are altering policies Markets are rewarding companies
SDG’s impacted to increase the role of renewable investing in clean technologies through
energy and clean fuels, long-term higher market valuations, superior credit
carbon emission policies, tightening rating, longer debt tenures and lower
environment standards and punitive debt cost.
action for transgressors.

Governance
A conventional focus on the
‘what’ of a company (revenues,
profits and market share) is being
replaced with the ‘how’ (ESG standards),
inspiring responsible governance; carbon
footprint reduction targets are acquiring
as much corporate priority as profit in
the pursuit of shareholder value
growth.

Technologies
The emergence of digitalisation
Consumer action
is translating into lower travel, lower
Consumers are seeking to buy recycled,
resource consumption, replacement
low-polluting brands and turning from
of finite resources with renewable or
conventional to futuristic technologies
recycled alternatives and a lower
environment cost

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Enhancing Value-added statement (J crore)

stakeholder value
Particulars March 2018 March 2019 March 2020 March 2021 March 2022
Income from operations 3,932.79 4,824.14 4,703.96 4,867.49 4,651.61
Add: Other income 27.72 42.75 38.55 33.45 47.91
Value added 3,960.51 4,866.89 4,742.51 4,900.94 4.699.52
Less: Cost of materials consumed 3,064.88 3,595.41 3,464.16 3,511.86 3,261.73
Less: Other manufacturing expenses 213.57 309.20 303.84 360.14 382.38
Equals gross value-added 682.06 962.28 974.51 1,028.94 1,055.41
Less: Depreciation and amortisation 95.16 95.85 101.42 111.88 113.86
expenses
Exceptional items - - - - 52.74
Equals net value-added 586.90 866.43 873.09 917.06 994.29
Allocation of net value-added
To Employees 209.79 238.36 265.70 281.65 307.80
To Government (via taxes) 121.78 33.37 53.43 168.27 190.83
To Bankers (via interest) 52.03 40.94 64.17 39.30 30.87
To Investors (via dividend) 58.76 57.11 55.00 52.50 51.01
To Investors (via buy-back) 99.00 - 147.67 180.00 215.24
To the Company (via retained 45.54 496.65 286.67 195.34 194.54
earnings)

Employee value Farmer value Shareholder value Community value Customer value

Employee benefit Procurement Market CSR Revenues generated by Quantity of sugar sold Quantity of Quantity of co-generated
expenses (sugarcane) capitalisation expenditure the Company (domestic) alcohol sold power sold

(H crore) (H crore) (H crore) (H crore) (H crore) (Lakh quintals) (crore BL) (crore units)
230.46

254.00

281.65

307.80

3540.37

3441.50

3515.38

3252.97

3131.89

2289.10

4504.50

9985.72

2.93

10.93

10.68

11.20

4285.78

4741.29

4811.66

4846.03

115.30

120.53

113.26

102.63

11.10

11.93

16.52

17.65

66.38

52.61

42.63

34.93
2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22

2018-19

2019-20

2020-21

2021-22
March

March

March

March
2019

2020

2021

2022

The Company has invested The Company procures a large The Company strengthened The Company enriched Coupled with an increase in volumes, the Company increased revenues, an index of the value created for its customers.
progressively larger amounts quantum of cane, enhancing shareholder value through communities in the
in employee remuneration, rural prosperity a complement of prudent geographies of its presence
underlining its role as a business strategy, accruals through a complement of CSR
responsible employer reinvestment, cost management programmes
and share buyback.

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Our economic impact Material issues impacting value creation

We analyse various environmental, Last year, we first created a bucket list of has shortlisted the material elements,
Salaries and benefits Taxes Interest, dividend and social and governance issues impacting potential material aspects by analysing prioritised and grouped them under four
Value that our Company Value through our buyback our businesses, value creation and the material issues of peer companies, pillars: Empowering People, Responsible
creates for our employees. contribution to government Value for lenders and stakeholders. These help us define the Sustainability Accounting Standards Consumption, Responsible Growth,
exchequer in the form of shareholders strategic priorities, mitigate actions and Board (SASB) and Global Reporting Business Ethics and Sustainable Business
direct and indirect taxes. better understand our effect on the Initiative (GRI). Practices. This year, the materiality issues
environment and the stakeholders’ impact have been reviewed and the initiatives
As a part of the materiality process,
on our value-creation. have been analysed to manage them.
the senior management of Balrampur

Social impact
Identifying material issues Evaluating current status Mapping ambitions Identifying key action areas
ƒ Study of internal and ƒ Engaging with internal ƒ Revamping the strategy to ƒ Prioritising the key areas
Talent development Social initiatives Health and safety external factors cross function team align with all teams into short, medium and
Value through our training Value for our stakeholders The main goal of safety and long-term needs as per
ƒ Product value chain and
programs and other through our social initiatives health programs is to prevent internal and external
SWOT analysis
educational initiatives. and inclusive businesses workplace injuries, illnesses, stakeholders’ relevance
This only includes the as well as the suffering and
value created outside our financial hardship for workers
Company and their families

Our sustainability pillars

Empowering people Responsible consumption Sustainable farming practices

Environmental impact ƒ Training and education ƒ Raw materials ƒ Soil health
ƒ Health and safety ƒ Energy and emissions ƒ Modernising agri practices
GHG emissions Air emissions Water consumption Net waste balance ƒ Local communities ƒ Water and effluents ƒ Research and development
Reducing the emission of Reducing emission of Reducing the use of a Reducing the impact of
ƒ Diversity and inclusions ƒ Solid waste
greenhouse gases other potentially noxious scarce resource through the waste generated in our
substances treatment of effluents and operations, thereby creating ƒ Labour practices
recycling wealth

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 PA R T F O U R

Balrampur
and
Environment
Sustainability

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An introduction to the
sugar sector and need
for sustainability
Increased efficiency: One of the dioxide, has reduced air pollution with a
main benefits of implementing better higher quality white sugar product while
irrigation systems is increased water use requiring no new equipment.
efficiency, meaning that more water is
Reducing effluent discharge: A range of
available for other needs, such as those
techniques is available for treating sugar
of the environment or communities; new
mill effluents, including the treatment of
institutional mechanisms may be required
mill sludge with micro-organisms that
to share water saved in an equitable
accelerate decomposition.
manner.
Reduced fertiliser use: Use of by-products
Recommendations on fertiliser use have Soil conditioners and fertilisers: Filter
been incorporated to provide guidance press mud from cane mills is incorporated
to farmers. into soil as a conditioner and fertiliser.
Bagasse has been used as a mulch to
Integrated pest management: This aid re-vegetation and stabilisation of
combines biological control with denuded land on road verges and can
appropriate physical, chemical and also be used as an excellent substrate
mechanical control to achieve a more for mushroom cultivation, with the
holistic and sustainable approach to pest cultivation residue potentially used in
control. animal feed.
Soil erosion prevention: A range of Fuel production: Juice extracted from
measures - trash mulching in cane cane can also be fermented directly and
cultivation, crop rotation, live barriers and the products distilled to produce alcohol
modified (reduced or minimum) tillage for fuel (bioethanol), which results in
have helped reduce soil erosion and lower air pollution than fossil fuels.
improve soil quality.
Electricity production: Sugar cane is
Shifts: A shift from pre-harvest cane processed to produce surplus steam
burning to ‘green cane harvesting’ (where and electricity from bagasse (skin
the cane is harvested without being of sugarcane) and is effectively ‘free’,
burned first) and ‘trash-blanketing’ (where effectively using the left over product.
the cane leaves are cut from the plant and
left on the soil as a mulch while the stalks Press mud biofertiliser: A phosphorous-
are taken away for processing) provide rich byproduct from sugarcane mills helps
environmental benefits. overcome phosphorus deficiencies, which
are common in countries like Pakistan
Risks in the sugar industry MEE condensate and blow down water Noise: High decibel sound in the TG drip) and are water-efficient, followed Lower pollution and India.
Solids: Boiler ash, sludge and hazardous (distillery) boiler, fibriser and mill areas. by centre-pivot systems, other sprinkler Reducing fly ash production: Bagasse is
waste like cotton waste, oil and grease systems, furrow irrigation, and finally dried prior to its use as boiler fuel, which
Air: Suspended particulate matter, Superior practices to mitigate flood irrigation. The key lies in improving increases the efficiency of burning and
Liquids: Plant effluents, process nitrogen oxide in flue gas and sulphur
impact water productivity to match the irrigation reduces emissions.
condensate, surplus from the sugar oxide in the flue gas (distillery slop fired
Efficient systems: Drip irrigation system to the soil type, climate, farm
plant’s spray pond, cooling tower, reverse boilers) Reduced gas and odour production:
systems deliver water to the crop plant management and affordability.
osmosis rejects; distillery spent wash, (surface drip) or root zone (sub-surface Hydrogen peroxide, in place of sulphur

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Balrampur and its
ESG commitment

Overview increased, reducing dependence on One, the nature of our energy products: A responsible environment-social- Our environment component addresses organisational culture, customer
Balrampur focuses on producing more energy derived from fossil fuels. Ethanol helps moderate air pollution governance (ESG) ethic lies at the core of our commitment towards consuming relationships and community welfare.
from less, while minimising environmental while co-generation presents a cleaner our business. We manufacture food and and manufacturing environmentally
The Company invested in modern The governance component articulates
impact. Balrampur manufactures sugar, alternative over fossil-fuel-derived energy. energy products; we mostly eliminate responsible or renewable resources,
technologies, practices, methodologies strategic clarity, ethical values, conduct
ethanol, power (co-generation) and effluents and emissions that could have rationalising resource quantities, recycling
and standards. Two, we are engaged in a social business, codes, Board composition and alignment
agro products. These products are inter- contributed to the air and water pollution waste, replacing fossil fuels with cleaner
marked by engagements with around with UNGC principles.
linked; the by-product or waste of one The Company retained its position as near our plants. alternatives, strengthening the ecology
5 Lakh farmers; as a result, our influence
constitutes raw material for the other. one of the ‘greenest’ companies in India’s of the locations of our presence and This combination - environment,
goes right down to the grassroots and The Company is a partner in the
sugar sector. moderating carbon footprint. social and governance - represents a
The Company’s low-carbon approach supports income growth. Government’s pledge in COP26 for
platform leading to secure, scalable and
enhanced resource and energy efficiency. The subject of ESG is increasingly relevant climate change, deepening its efforts in The social component underlines the
Three, a sustainable business can be sustainable long-term growth.
The Company’s captive consumption as a to the Company’s business for various the area of emissions reduction. importance of investments in people,
only built through a stable and robust
percentage of the total power generated reasons.
governance strategy.

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 PA R T F I V E

Balrampur’s
Environment
Commitment

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Our environment
commitment
Value-creation

Environment management is an index intensity and graduate from legacy to We invested in a knowledge-driven
by which companies are appraised for clean processes. environment, employing subject
their value-creation capability. Companies matter experts. Our business is driven
We have articulated our direction,
competent in their environment by processes, systems and information
periodic milestones to be achieved,
management are perceived better by technology.
controls, environment management
investors, enhancing market valuation.
systems, due diligence and disaster We are driven by a spirit of continuous
At Balrampur, our competent planning cum response systems. improvement, examination of processes
environment management has been and materials with the objective to seek
More specifically, we are committed
enshrined in a complete compliance with cleaner alternatives.
to eliminate the transfer of any waste
environment-related NOCs, consents,
to landfills or effluents discharge while We mobilise resources that are procured
permissions, licenses and authorisations.
moderating water consumption intensity. proximately, moderating transportation
We are committed to reduce energy cost and carbon footprint.
quantity, greenhouse gas emissions

Our environment de-risking

Solids Liquids Air

ƒ Bagasse-based fly ash is utilised by ƒ Sugar effluents are treated, ƒ Air pollution control devices
farmers; the material is also land- recycled and used in irrigation were installed in the bagasse-fired /
filled securely in low land areas slop-fired boilers to moderate dust
ƒ Distillery effluent spent wash
particles generated from dry fly ash
ƒ The boiler ash from the spent concentrate is used in MEE and
wash incineration boilers (potash- incinerated with supporting fuel ƒ Wet scrubbers were installed
rich) is used for the production of (bagasse) in seven boilers in the sugar units
potash fertiliser through granulation having such bagasse-fired boilers
ƒ Colourless low polluted
units
condensate is treated in condensate ƒ Electrostatic precipitators were
ƒ Sludge from the sugar effluent polishing units; the recycled water is installed in four bagasse-fired
treatment plant, distillery process used in the process; makeup water boilers and three slop-bagasse fired
and condensate polishing unit is is used in the cooling tower and incineration boilers
Balrampur’s operations are woven around the 4R’s (Recycling, Replacement, Reduction and utilised as farm manure distillery for molasses dilution.
ƒ Two incineration boilers
Renewables). Over the years, the Company has strengthened its environment commitment through ƒ Cotton waste, oil and grease comprised bag filters to control fly
the following initiatives: (hazardous) are incinerated in boilers ash particles in the flue gases
Co-generation: Our co-generation reused treated wastewater, resulting in a facilities. The quantum of water saved
power plants generate power from the zero discharge from factories. Most solid or injected through these initiatives was
use of bagasse, a by product generated wastes were recycled as well. almost equivalent to the Company’s Noise Greening
from the manufacture of sugar. The water consumption. ƒ Personal protection equipment was provided for working ƒ More than 1.5 Lakh trees were planted through the year
Eco-friendliness: The Company actively
generation of 72.72 crore units in FY in high noise areas to reduce CO2 emissions
manages bio-diversity and eco-system Equipment investment: The Company
2021-22 substituted the use of fossil
services. For example, it cleaned ponds invested periodically in new equipment ƒ A pre-biotic medical check was conducted to monitor ƒ A mass plantation initiative was conducted on World
fuel, reducing greenhouse gas (GHG)
near its manufacturing units and planted across factories to minimise emissions worker health. Environment Day / Independence Day
emissions.
saplings to develop green belts; it and embarked on a journey to replace its
Recycling: The Company utilised bagasse provided organic fertilisers to villagers equipment, moderating obsolescence. ƒ An acoustic enclosure was created
to generate power (used captively and near its facilities; it recharged the ground ƒ A silencer was attached with noise-creating equipment
‘exported’ to the state electricity grid). It water table near its manufacturing

34 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 35

Balrampur and how it Balrampur and
has taken environment responsible resource
responsibility ahead management
Overview How we enhanced environment responsibility

1 2 3
We replaced fossil fuels with waste- We invested in environment-friendly We installed a biological treatment Improved Replacement of
products like bagasse and spent equipment, helping convert press base sugar vapour CPU unit in Treated water steam fresh / cold water
wash to produce green power mud (waste) into potash, a rich Kumbhi, achieving our target of zero Water recycling
reuse condensate in the sugar process
thereby reducing equivalent amount fertiliser marketed through IFFCO, ground water extraction. recovery house
of Green House Gas (GHG) (earning among others.
Renewable Energy certificates
that are purchased by entities that
generate greenhouse gases).
Replacement of
fresh water with cooled Use of energy-

4 5 6
Reduced DM/
excess condensate for efficient motors in Use of variable
RO water for plant
equipment cleaning, floor place of conventional frequency drives
operations
We benchmarked operations with We drew cane into our units from We moderated the consumption of washing and other motors
the best practices in the sector. within a 5-150 km command area; lime, sulphur, water, chemicals and purposes
our logistics cost accounts for ~2.5% electricity.
of our revenues.

Treated water is
Investment in
recycled through
steam and power- Treated effluents
reverse osmosis plants
saving projects in used for irrigation
to substitute freshwater

7 8
some units
requirement

As part of our de-risking commitment, we got our Rauzagaon unit Bonsucro- The Company’s low-carbon
certified. The Bonsucro Certification is internationally recognised and respected, approach enhanced resource
offers a credible, metric certification process to demonstrate commitment efficiency. The Company’s captive
to environment and social sustainability in sugar cane sourcing and sugar consumption of renewable energy,
Changes implemented for Bonsucro certification
manufacture. as a percentage of the total power
generated, increased, reducing its
dependence on fossil fuels.
Rauzagaon
Educated and
Water balance unit achieved
encouraged farmers
concept followed in compliance with these
to adopt water
the water treatment parameters along with
conservation methods
plant other Bonsucro
(drip irrigation)
indicators

36 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 37

Investments, FY 2021-22 Big figures Initiative: Our energy management
To strengthen long-term sustainability, the Company makes The sugar manufacturing utilises energy through investments in energy-efficient moderate resource consumption and
proactive and significant investments in multiple areas to across various functions. The ‘green’ equipment. The Company announced reduce emissions cum effluents. The
moderate carbon footprint, water use and other factors. The
Company committed H363 crore for the modernisation of its 950.00 528.84 energy produced by the Company is
utilised within and the excess is sold
a capex and replaced old turbines with
efficient alternatives.
impact of these measures is expected
to reduce fuel and power consumption,
sugar infrastructure and the commissioning of two refineries. H Lakh, capital to the grid. The Company’s objective strengthening our cost management.
H Lakh, capital investment The Company invested additionally
investment in energy is to moderate energy consumption
in water management in automation to increase efficiencies,
conservation equipment,
equipment in FY FY 2021-22
2021-22 Specific steam consumption (in MT)
Year FY 2019-20 FY 2020-21 FY 2021-22
Per MT of cane 0.44 0.43 0.42

Initiative: Our responsible water management

The management and moderation of uses in sugar and power, we installed a We proactively invested in incinerator Initiative: Our effluents and emissions management
water is becoming increasingly critical biological treatment base sugar vapour boilers in distilleries and made them
not just within the sugar industry but Condensate Polishing Unit (CPU) at the zero liquid discharge plants. The sugar The Company is focused on wastage the Company converted ash from the 3.42 KG / MT in 2017-18 to 3.08 KG/MT
for industries everywhere. The Company Kumbhi and Babhnan units on a pilot manufacturing plants are equipped with reduction and enhanced operational incineration of concentrated spent wash 2021-22, i.e., by 10% in the last five years.
invested in equipment and technology to basis; we successfully achieved zero lagoons for treated water storage. efficiency. The dry ice plant was set up to (waste) into water soluble potash-rich
Similarly, water effluents emission
moderate water consumption. To target ground water extraction in both units. capture CO2, which was being released granules, a fertiliser import substitute
reduced by 24% during the last five years.
zero ground water extraction for industrial during ethanol production and is being for Muriate of Potash. BCML tied up with
marketed to beverage companies, among IFFCO for marketing bio-potash granules. For arresting air pollution, the Company
Groundwater drawal Water recycled others. installed control devices like wet
Fresh ground water used in the sugar
scrubbers, electro static precipitators and
Year FY 2019-20 FY 2020-21 FY 2021-22 Year FY 2019-20 FY 2020-21 FY 2021-22 The Company invested in equipment process house was replaced with treated
bag filters in the bagasse-fired / slop-fired
Litres per MT of 218 178 114 Cubic 567813 488298 473437 for sustainable production and waste water (except for laboratory and drinking).
boilers.
cane metres recycling. Following these investments, Our non-hazardous waste decreased from

38 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 39

 UOM CPCB norms All sugar units Achieving Bonsucro Certification : Our Environment commitment
Season 2019-20 Season 2020-21 Season 2021-22

Cane crushed MT - 10537157 8751707 8883136

Total effluents Ltrs/MT 200 196.16 186.98 177.45

COD of discharge water ppm 250 140.46 133.78 127.77

Goal 6: Bonsucro Goal 11: Goal 13: Take Goal 5: Bonsucro Goal 8: Bonsucro helps promote Goal 12:
BOD of discharge water ppm 100 for irrigation and 30 for 21.5 18.44 19.22 practice ensures Sustainable use urgent action to standards help sustained, inclusive and sustainable Bonsucro
surface water availability and of terrestrial combat climate achieving economic growth, full and promotes
sustainable ecosystems by change and its gender equality, productive employment and decent sustainable
TSS of discharge water ppm 100 for irrigation and 30 for 22.3 20.04 19.27
management reducing GHG impacts empowering work for all consumption
surface water
of water and emissions women and girls & production
Maintain strong attention in relation
sanitation for all patterns
Liquid discharge from Zero Zero Zero Zero Zero to grievance and redressal process.
distillery
Bonsucro promotes sustained,
inclusive and sustainable economic
The particulate matter Mg/ Nm3 150 80.7 76.64 68.51
growth, full and productive
emission from boiler
employment and decent work for all
Ambient air quality Mg/ Nm3 83.6 14-16 18-22 18-22
(Industrial and mixed) Big numbers

Initiative: Enhanced green cover 55 5 1300

%, reduction in ground %, reduction in steam
%, increase in green cover
The Company developed green belts trees in three years and intends to plant as a mature tree, on a conservative basis, water drawal in the last consumption in the last
in the last five years
through extensive plantations. The 10,00,000 trees in the next five years. Tree can reduce 10 kgs (22 lbs) of carbon five years five years
Company planted around 2,50,000 plantation helps in green house reduction dioxide (CO2) per year.

Year FY 2019-20 FY 2020-21 FY 2021-22 Year FY 2019-20 FY 2020-21 FY 2021-22

Trees planted by 45700 50298 150137 Total afforested 15.93 63.55 108.05 How we strengthened our integrated sustainability
the Company area (hectares)

26.05 75 5.37 100

Initiative: Award of certifications Bagasse produced
% of bagasse consumed
Molasses produced
% of free molasses
for renewable power consumed to produce
Bonsucro Certification: Balrampur Chini ƒ Bonsucro Production Standard Other Awards: (Lakh MT) (Lakh MT)
generation ethanol (green fuel)
Mills has demonstrated the operation of ƒ Safety Hero Awards 2022 - Leadership
ƒ Bonsucro Mass Balance Chain of
a management system that is compliant award by G D Goenka University
Custody
with the requirements of Bonsucro
ƒ Best performing distillery for fresh
100
Smallholder Standards The Rauzagaon unit achieved a
water consumption and effluent
0.28 0.27
compliance certificate for the said
34.93
ƒ Production Standard for Smallholder discharge in season 2020-21 by Central
parameters with other Bonsucro
Farmers; Pollution Control Board, Delhi. % of fly ash of distillery
indicators. Potash granules Dry ice (CO2)
incinerator boiler Power exported
consumed to manufacture produced (Lakh MT) produced (Lakh MT)
(crore units)
granulated potash

40 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 41

 PA R T S I X

Balrampur’s
Social Capital
How we are enhancing sustainability through
enduring engagements with employees, vendors,
customers and communities

42 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 43

 m p loye es Supply chain
E Focus on building a Provide room for Engage vendors Engage in a spirit of Hand-hold vendors Ensure competitive
stable eco-system sizable multi-year with a respect partnership (over in capacity building purchase costs
growth for systems and mere vendorship) (knowledge, against sizable
processes technology and purchases
capacity etc.)
Orientation
Focus on
around
outperformance
entrepreneurship

Customers
Social
Capital
Focus on customer Engage customers Enhance revenue Provide customers Provide customers Empower customers
retention, growth into the long-term visibility and with a superior value with the next to focus on their
and rising wallet around secured predictability proposition generation of core competence
share terms services

Engagement
Intensive training of experienced
talent

Communities
Recruitment
Focus on building Self-empowerment to Address relatively unmet Hybrid engagement Invest in documentation,
of young and
communities towards reflect visibly in profitable community needs format – direct enumeration and
enthusiastic
self-empowerment livelihoods involvement and through benchmarking
talent
specialised NGOs

44 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 45

BUSINESS DRIVER

Employee
management
Overview Our HR practices employer, the preferred employment
Balrampur Chini Mills Limited recognises Talent acquisition: Comprises choice in India’s sugar sector
human capital as one of its most critical responsible screening, multi-layer Responsible: The Company invested
factors for sustainable competitive selection, background checks and cultural in safe and responsible work practices
advantage. With the future clearly focused compatibility checks that enhanced operational safety in and
on product diversification and more around its manufacturing premises
Performance management: Includes
process automation, talent acquisition,
competence and behaviour-driven Automation: The Company invested
management and development is likely
performance management system; key in automation and digitalisation with
to partner business and strategy to yield
result areas are linked to business targets; the objective to enhance process
productive results.
fair and unbiased appraisal. predictability and productivity
The Human Resources processes at BCML
Training and talent development: The Enhanced employee lifestyle and
endeavor to sustain teamwork, skill and
training and talent development function comfort: The Company invested H120
competence development with the
encompasses a structured training need crore for the development of housing
objective to make BCML a Great Place to
identification process, budgeting, training infrastructure and colony for employees.
Work (as per the official recognition of
delivery by internal and external experts,
the same name). As a validation, 61.84% Balance: Total employees were 6350 as
internal knowledge sharing programs
of the Company’s employee strength was on 31st March, 2022 with an average age
as well as a learning indicator based
associated with the Company for more of 45 years; retention was over 95.39% in
structured training effectiveness analysis
than ten years. FY 2021-22.
process. With the long-term objective of
Our HR policy creating an internal leadership pipeline Occupational health & safety: The
The HR policies at BCML are aligned and talent pool, the talent development Company developed an integrated
with the business goal and embrace function includes a graduate engineer health and safety procedure; developed
people-centric processes. Vehicle trainee/ graduate trainee policy as well protocols/ SOPs to reinforce the Safety
Policy, Furniture Policy, Mediclaim as HiPOT (High Potential) development Management System; provided 1500
Policies, Mobile (handset/ monthly process. person-days of training on occupational
mobile bill) Reimbursement Policy, health and safety; introduced flexi-
Our HR strengths
Accident Insurance Policy and Workmen work model during the pandemic and
Leadership: The Company is respected
Compensation Policy are some key conducted periodic testing, isolation
as a stable, responsible and respected
employee benefit policies at BCML. support and vaccination

Big numbers

6350 45 95.39
Average employee % of employees
Employees as on 31st
age (years) as on 31st retained as of FY
March, 2022
March, 2022 2021-22

46 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 47

Our culture “One of the reasons behind the success of Balrampur is teamwork. Some months ago, there was torrential rain in Uttar Pradesh,

of ‘Stretch’
marked by water logging and project bottlenecks. The Unit Head reached out to the corporate team for help. Timelines
were tight on project implementation; a task force was established. The corporate team in Lucknow reached out to the UP
administration for timely water evacuation. The corporate technical team engaged with the vendor for accelerated plant
delivery and erection. The HR team was galvanised to accelerate recruitments. A crisis got the best out of us and the plant was
commissioned on schedule.”
Employees relate their first-hand experience P. Sandeep, Senior General Manager, Human Resources
of working at Balrampur Chini Mills

“At BCML, we prioritise execution; the whole team “There is always a gap between the unit and
is passionate about timely and effective project leadership teams in most companies. This is where
implementation. The Company follows a hands-on Balrampur is different; the cohesiveness between the
approach, marked by seamless information flow. Last unit team and leadership team makes Balrampur an
year, BCML embarked on an ambitious 2.0 journey where outperformer. In 2016, we expanded Babhnan unit
all equipment obsolescence would be replaced for H500 distillery from 60 kilo litre to 100 kilo litre per day
crore, a plan prepared after detailed deliberations of utilising available technologies that were at a nascent
three months; the internal corporate team fine-tuned it level, encountering hurdles. Rather than respond with
for another month; the senior management cleared this ‘Lage rahiye’, the management responded with capital
in less than a week. This is how we work: patience and infusion as opposed to blaming unit members for
prudence in approach, agility in responsiveness!” incompetence.”
Vinay Khanna, Head-Operations M.K. Gaur, Additional General Manager, Distillery

“We once promoted a head of “In 2015, when the industry “Around 10 years ago, sugar “Even though Balrampur does not “I joined the Company as “The Balrampur management is
department (HOD) to a unit head was suffering from losses, recoveries declined sharply in our have the largest crushing capacity General Manager, Taxation. The a caring one. If there is a problem
position. In that unit, there was a we commissioned advanced Gularia unit. The management in the sugar sector, it is the most management observed my interest in the family and someone
project that had been conceived incinerator boilers. The Company undertook steps to understand profitable Company. The Company in HR and empowered me to needs to be hospitalised or any
but not implemented. Lot of invested H200 crore with no visible problems and implemented good is the largest in terms of payout to strength the HR department. We monetary support is required, the
support and handholding was return on investment at that point farming practices. The result: shareholders. I don’t think any other now have a full-fledged HR team employee’s problems become the
provided to the incumbent so in time. When this became a within two years, the Gularia unit company in the agricultural space and it all happened because the management’s problem. When
that he could deliver. In another mandate across the sector, we were had rebounded to among India’s has done five share buybacks in five management empowered one a few members went through
incident, a relatively junior the first to reap the benefit as the leading sugar units in terms of years.” individual to begin with. The surgeries, the management helped
employee delivered results better incinerator boiler helped us utilise recoveries.” management provides a free hand immediately. This is the confidence
Pramod Patwari
than expected. He was made the distillery capacity also during to employees to explore, decide with which one works here: the
Pramod Patwari Chief Financial Officer
in-charge of that assignment. We the monsoons.” and deliver (with checks and Company will always be there to
Chief Financial Officer
got things done with minimum balances).” support during adversity.”
Pramod Patwari
resources.”
Chief Financial Officer Rohit Bothra Manish Purohit
Rohit Bothra President, Taxation and strategy Vice President, Cane operations
President, Taxation and strategy

48 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 49

BUSINESS DRIVER BUSINESS DRIVER

Digitalisation Our Health commitment

Overview ƒ Core strength in the ability to Overview ƒ Instituted training and awareness Monthly monetary support
At Balrampur, digitalisation helps implement technology advancements Balrampur prioritises the health of those programmes Provided monthly monetary support
moderate resource consumption and cost-effectively engaged in its eco-system, comprising for three years to the spouses of blue-
enhances outcome efficiency, the base of employees, farmers, vendors, community Employee discipline collar workers who passed away due to
generating more from less. Highlights, FY 2021-22 members and trade partners. The ƒ Advocated masks and safety goggles COVID-19 for three years
ƒ The Company invested around H5 crore Company prioritised activities and for those working in bagasse and ash
The Company implemented SAP ERP in digitalisation yards to suppress material dispersal Infrastructure support
processes that did not compromise
to replace an indigenously developed ƒ Sanitised offices and buildings
ƒ Improved network security through a health and well-being. During the ƒ Advocated ear plugs and earmuffs for
accounting software in 2014. The
two-factor authentication process pandemic, the Company prioritised employees in high sound areas. ƒ Maintained a hygienic changing room
replacement created a common platform,
distancing among employees and use
strengthening systematic uniformity ƒ Migrated from MS Office to MS 365 ƒ Advocated personal protection ƒ Maintained canteens to serve hygienic
of personal safeguards. The Company
cum efficiency, moderating manual equipment with knowledge of MSDS. food.
ƒ Upgraded ILL B/Ws to improve internet monitored activities in the sugar packing
intervention and related costs / time.
speed and service quality. area, ethanol dispatch area, bagasse yard ƒ Provided first-aid and preliminary
Employee welfare
Transformation and ash collection area. It advocated medication for employees and
ƒ Deployed mobile applications that ƒ Organised free medical camps in all
ƒ Migration from desktop applications to the use of personal protection gear in contractors through dispensaries with
facilitated real-time data capture units, supervised by specialists from
mobile applications in cane function. areas that generated loud sound (boiler medical staff.
reputed hospitals
ƒ Implemented VPN facility that ensured and turbines) and in areas that handled
ƒ Migration from On Premise SAP ECC to hazardous chemical substances. ƒ Instituted a Mediclaim Policy to cover ƒ Provided ambulance facilities
a safe, encrypted online connection for
SAP S/4 HANA employees working from home employees and families
Social distancing Outcomes
ƒ Deployment of DR Services The Company eliminated hazards
Outlook, FY 2022-23 ƒ Promoted regular hand washing and Education support
sanitisation. Provided education support till in factory pockets engaged in sugar
Strengths Proposed extension of the Balram app to
packing, fly ash generation, bagasse
one million farmers graduation to the children of blue-collar
ƒ Proprietary skill across technologies like ƒ Introduced daily thermal scanning for
workers deceased due to COVID-19 leakage and high noise through periodic
Android and SAP, among others employees entering the factory health checks and regular attendance
ƒ Conducted periodic health checks (correspondingly lower instances of leave
without pay).

50 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 51

BUSINESS DRIVER ƒ Team composition Initiatives ƒ Presented safety performance each
quarter

Our safety commitment

ƒ Focused team structure ƒ EHS Policy and Safety Manual revised

ƒ Team engagement with the rest of the ƒ Formed EHS Committee, meeting ƒ Conducted periodic training
Company periodically to address safety ƒ Conducted monthly mock-drills
challenges
ƒ Periodic reporting to stakeholders ƒ Ensured highest safety standards
(internal and external) ƒ Regular EHS training programs to during erection (proper stair heights,
enhance safety competencies railing illumination, guards etc.)
ƒ Prudent and timely recruitment
ƒ Formed Safety Committees. coupled with a structural audit
ƒ Training intensively and extensively
ƒ Appointed corporate EHS Head ƒ Provided safety equipment (safety
ƒ Conduct mock drills shoes, helmets, aprons, gloves, ear
ƒ Prepared safety MIS; circulated
ƒ Investing in suitable infrastructure plugs and goggles etc.)
internally
ƒ Investing in safety equipment and ƒ Observed an annual Safety Week
ƒ Conducted periodic on-site and shop-
apparatus (4 to 10 March) comprising safety
floor training.
competitions (safety slogans, sketches
ƒ Observe an annual Safety Week
ƒ Appointed Safety Officers and essays)

Lost time due to injuries performance, FY 2021-22

Unit name Near miss 2020-21 Near miss 2021-22 LTI record
2019-20 2020-21 2021-22
Balrampur 19 13 3 4 3
Babhnan 0 9 0 0 0
Tulsipur 13 1 1 2 0
Haidergarh 0 1 0 0 0
Akbarpur 6 22 2 2 0
Rauzagaon 6 0 1 1 0
Overview and external), prudent recruitment of fire safety system, creation of a detailed Mankapur 22 13 4 3 2
At Balrampur, the subject of operational professionals with requisite competencies emergency evacuation plan, periodic Kumbhi 3 8 4 3 2
safety is critical across the following and experience, ongoing training on mock drill for fire control and emergency Gularia 5 21 2 3 2
interventions: operation of rotary the subject, mock drills to enhance evacuation, periodic structure audit to
Maizapur 0 16 0 0 2
equipment, boiler and TG operation, a state of preparedness, investment address/attend observations with speed
Total 74 104 17 18 11
working at heights, temperature working in corresponding safety- enhancing and a periodic safety audit.
(welding and cutting), sugar and infrastructure and equipment as well as
The Company designated a Safety
alcohol loading, excavation, electrical the observation of an Annual Safety Week. Accident frequency record Accident frequency rate
Officer across each of its three daily shifts
maintenance, acid and chemical handling The tactical initiatives taken by the to supervise operations from a safety Year Accident (LTI) AFR 2019-20 1.02
as well as static electricity generation. As Company comprised safety education perspective. These Safety Officers were FY 2019-20 17 1.02
with any industrial activity that involves 2020-21 1.09
and training, precise and documented empowered to discontinue operations FY 2020-21 18 1.09
manual labour, there could be possibilities allocation of employee responsibilities, in the event of safety violations. Besides, FY 2021-22 11 0.71 2021-22 0.71
of injuries, accidents and equipment formal work permit system, elaborate a written warning, coupled with penal
breakdown. policies on safety precautions, provision was introduced to eliminate The Company engages in detailed investigations for all accidents and occurrences. The outcome of these investigations is discussed
Over the years, the Company maximised maintenance of incident / accident recurrence. Accident reports were at various forums to eliminate recurrence. Besides, the Company engages in safety inspections and audits by a Safety Committee in
safety through proactive measures and reports, compliance related to personal circulated to all the Company’s units to addition to scheduled audits by competent persons / certification bodies.
safeguards. The Company responded protecting equipment, use of relevant enhance awareness, benchmarking and
to the subject through strategic signage across manufacturing locations, best practices.
interventions: creation of an enunciated implementation of a Do’s and Don’ts Our safety certifications
policy on the subject, priority by the Policy, creation of ‘Restricted Areas’ Recommendations
ƒ Enunciated policy MAH licence under Factories Act PESO licence Fire safety activeness certificate
Board on the subject, awareness to eliminate unauthorised access,
maintenance of material safety data Pressure vessel certificate Fitness certificate for lifting equipment No objection certificate for sulphur
building, team composition, structure ƒ Focused importance
sheet signage at the required locations, storage
and engagements with the rest of the
ƒ Board priority On-site emergency plan from competent Periodic Safety Audit by an external Disaster Management Plan
Company, periodic reporting in safety imposition of penal provisions for unsafe
performance to all stakeholders (internal acts, investment in a comprehensive ƒ Awareness building / Communication persons agency/competent professionals

52 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 53

BUSINESS DRIVER

Our Corporate
Social Responsibility
CSR aligned with sustainable development goals

Our CSR spending

Year (R in Lakh)
FY 2021-22 1119.67
FY 2020-21 1067.55
FY 2019-20 1092.89
Last 3 financial years 3280.11

BCML’s CSR focus

Overview The CSR programmes have focused on public gatherings in community spaces. Sustainable Quality education Healthcare and Community Environment and
The Company’s CSR vision is ‘to contribute sustainable development in and around Though challenges were identified in livelihoods and ƒ Empower the wellbeing development sustainability
for bringing social and economic change the ten units/plants of BCML across timely technology sharing and extending women empowerment next generation by ƒ Make medical services ƒ Improve basic rural ƒ Contribute
to the underprivileged sections of the Eastern and Central Uttar Pradesh. Its goal the program coverage in all target areas, ƒ Improve the facilitating their growth accessible (oxygen amenities to sustainable
society in an equitable and sustainable is to promote livelihood empowerment, people benefitted significantly through economic and social and promoting skill plants, health camps, development and
education, healthcare and wellbeing, these interventions. They expressed ƒ Provide streetlights,
manner and to contribute for livelihood status (farmers and development among antenatal child care environmental
community development, and a desire for these interventions to be groundwater recharge
enhancement initiatives for the weaker women) in Uttar Pradesh the youth centres and community protection
environment and sustainability in 4148 continued. structures, sanitation
sections of the society. In doing so, we healthcare centres)
villages around BCMLs units. ƒ Provide capacity ƒ Build a better learning and improve community ƒ Promote renewable
believe that we are contributing to The bulk of CSR activities in Uttar Pradesh building (with training) environment by ƒ Providing medicines spaces etc. energy resources
develop the quality of human life and The emphasis of the CSR interventions is was conducted through Balrampur renovating government and medical equipment
making a better India.’ on the holistic development of society, Foundation under the Nayi Umeed ƒ Provide support for ƒ Plant trees
schools, providing
individual well-being and ensuring Project to enhance the productivity of increasing livelihood
Over the years, BCML has enriched the infrastructure support
a conducive environment for future rural Indian lives. opportunities.
lives of communities through sustainable and teaching aid
livelihoods, promoting education, generations. The program’s impact equipment, mobile
The Company also partnered with
healthcare, sanitation and developing reached marginalised communities in the science labs and skill
respected agencies like National Skill
of rural infrastructure in regions of Uttar target areas. Due to project interventions, development programs
Development Corporation (NSDC) of
Pradesh (where all its manufacturing increasing trends were seen in farmers’ Provide safe drinking
Government of India, Agastya Foundation,
facilities are located) where the human average income over the previous year, water, sanitation facilities
Purkal Youth Development Society and
development index is low compared to student attendance in schools, the and playgrounds
others in achieving its CSR objective.
the average Human Development Index. number of patients in health centers and

54 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 55

BCML’s CSR impact Silai school / training centers
70% 20% 10% 10% 80% 10%

340 10,00,000+ 5500+ 3,00,000+

Communities/ villages Individuals benefitted from Farmers receiving farm Beneficiaries across 10 villages
impacted by the CSR project the services provided to the equipment of 200 solar street lights
intervention community installed

10,000 40,000+ 40,000+ 20-30 30-40 40-50 High school Intermediate Graduate
Individuals benefitted as Patients benefitted through Students benefitted from 790+ (in years) Age profile of trainees Education profile of trainees
women entrepreneurs who health care interventions visits of mobile science lab to
received livelihood training 81 schools. In addition, 30+ BCML ,through Balrampur Foundation. partnered Usha
not only contributed to their schools received support for International Limited to develop entrepreneurs in sewing.
household earnings but also improving their infrastructure The identified individuals were provided 7-day or 2-month
created more entrepreneurs training in operating a sewing machine, stitching and running a
sewing school. Balrampur assisted certified women in securing
employment and starting their own Usha Silia school. This
program addressed 1000 people in 35 villages and 35 centres.

Sustainable livelihood and women empowerment Benefit reported by trainees

Agricultural equipment distributed among farmers 50% 40% 10%

New skill learned Employment or Promotion at job
236

41

71

349

110

91

79

83

95

49

238

4471
business started

Community development

The community’s project goals included disabled and poor, skill development, and For use inside the house, various solar
improving the rural population’s plantation. lamps were provided to the families.
social situation. Its mission was to These were very useful to them in the
These categories, along with health,
transform people’s lives to achieve absence of an electric supply. Adults
education and agricultural development
mutual development and social and can complete household chores while
are the primary indicators of community
environmental sustainability. In 176 children can study at night using these
development. This project reached over
villages surrounding the manufacturing lamps. Some school kids also received
10 Lakh people and improved their living
units of BCML, initiatives were solar lamps.
conditions through its interventions.
implemented to improve societal welfare
BCML implemented several rural and The villagers are encouraged to adopt
and measures to address long-term social,
agricultural initiatives to improve the good practices for hygiene in their daily
Tippler trolley

Cultivator

Laser leveller

Mb plough

Rotary tiller
Power spray
machine
Pumping set

Small tractor

Sub soiler
Tractor drawn
spray
Delivery pipe
Battery
operated spray economic and ecological challenges.
living conditions of the farmers and their activities. Meetings and training were
Activities geared for the community families in alignment with SDGs 6, 7, and conducted on the importance of safe
development were designed to impact 11. toilets and waste management practices.
areas of water harvesting, waste Dustbins were installed and toilets were
Solar street lights have been installed in
The project’s goal was to reach as many farmers as possible management and sanitation, affordable built for community use. Sanitary napkin
various locations of villages. These have
among the 5,21,471 farmers in the 4,148 villages. According to clean energy, internal road development, dispensers were installed in schools
benefitted more than 30,000 individuals
the Impact Assessment Report, it benefited approximately 5886 construction of buildings, services for the and health centres to promote better
by improving night-time street visibility.
farmers who received 5,930 pieces of agricultural equipment. The menstrual health among women.
1,412 farmers who participated in the Impact Assessment survey
received 1,458 equipment. Sprayers, plows, tillers, cultivators,

11
levelers, tractors and trolleys were distributed for farm use. These
allowed for the mechanisation of farming practices as well as an 13400 54 200+ 200+ 2000+ Ground water
increase in farmer returns. As a result of increased productivity Individuals Solar street lights Wheelchairs Blankets
and diversification of economic activities, even marginalised Swings installed recharge pits
impacted installed distributed distributed
farmers can increase their income. There has been a 39.6% built
increase in household income.

56 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 57

Improved community spaces Quality education

The inauguration of a Animal welfare in Assistance to a Assistance to a Improvements in Interventions in quality education included projects ranging from primary school to employment. These interventions aimed to
temple at Rudrapur Rasulpanna delivery centre in delivery centre in a health centre provide basic facilities in schools and colleges on a par with nearby private schools. BCML’s CSR project provided funding for innovative
ƒ 50-year-old temple ƒ There was a challenge Diwantand Dharmapur (Samudik Swastha teaching equipment, digital literacy, skill development, mobile science labs and other projects. These would also allow all children,
was in a dilapidated related to stray cows ƒ The delivery centre ƒ The building of the Kendra, Bijua) particularly those from low-income families to receive a quality education and develop an interest in science and technology.
state when their productive was not maintained for delivery centre was in a ƒ BCML installed an
years were over years dilapidated state X-ray machine
ƒ BCML renovated and
restored ƒ These cows fed on ƒ BCML renovated the ƒ The facility was ƒ Rest room was Infrastructure development Mobile science lab Other interventions
crops infrastructure with beds, attended by a handful of created for patients Improvement was made in the education To promote science-based education BCML also installed swings in
ƒ Adorned temple floors
weighing machine, patients each day travelling from long and infrastructure of government among school students, BCML playgrounds, sanitary pad vending
with tiles; concretised ƒ Increased cowshed
tables, water cooler and distances schools surrounding seven BCML plants provided four mobile science labs to machines for menstruating girls and
the pathway. population enhanced ƒ BCML tiled the floor,
solar lights (Mankapur, Gularia, Akbarpur, Rauzagaon, underprivileged students with well- women, renovated toilets and provided
the need for food repaired the building ƒ Beautified a park
Balrampur, Tulsipur and Babhnan). equipped scientific tools and learning school computers.
storage space ƒ Improved facilities and added furniture beside the hospital
material. These labs visited secondary
17
enhanced patient building; installed solar BCML has assisted 33 schools, 35 skill
ƒ BCML established ƒ Patient inflow government schools as a traveling
attendance by 80% lights outside development centers, two inter colleges,
a godown to store 50 doubled laboratory for hands-on activities of
two Industrial training institutes, and Students of Bal Adarsh Vidyalaya,
quintals of feed stock for science and technology.
1- degree college in improving their Balrampur passed with distinction in Uttar
169 cows.
792
building infrastructure. Pradesh board higher secondary exams.
BCML has taken initiatives to revive This school had received infrastructure
knowledge of Sanskrit. For this it is Schools visits were made by mobile support and behaviour change
supporting two Sanskrit schools: (1) science labs communication programme support.

13000+
Adarsh Sanskrit School, Lakhimpur-Kheri
and (2) Late Smt. Chandarkala Sanskrit
Vidyapati and Devkali. Registrants in the learning and
participation program

58 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 59

Healthcare and wellbeing Environment & Sustainability

The goal of the CSR program in the healthcare sector was BCML’s CSR project assisted government health centres by BCML, through Balrampur Foundation, promoted plantation in
to ensure the provision of high-quality medical services that improving their existing infrastructure and providing medical community spaces. It involved students, farmers and others in
were affordable to all. Residents in the target areas rarely visit supplies. plantation drives. More than 1,50,000 saplings were planted to 50
government health centres due to a lack of medical facilities and
Gularia, Babhnan, Balrampur and Haidergarh are the four BCML
ensure greenery in the future in the region. This amounts to the 1,50,000 Acres, land
poor infrastructure. effective afforestation of 50 acres of land. Saplings planted afforested
units where medical services have been improved. Three ANM
were renovated and refurbished while building support and
medical services were provided to several other health centres.

Water security and ground water recharge Engineering: Enhances technology use (tools and techniques)
The availability of clean and safe drinking water is a fundamental that improves yields, soil quality, water consumption efficiency
right. BCML’s CSR interventions directly benefited over 2000 and supplementary income.
people by increasing access to water. Several others will be aided
Education: Focus on providing quality education and improved
by groundwater recharge pits constructed by BCML and ponds
learning outcomes; constructed/renovated schools, computer
renovated and maintained by BCML. This helps achieve SDG6
labs, built toilets for boys and girls, provided safe drinking water,
goals.
installed sanitary napkin incinerators and dispensers, printers,
Project Nayi Ummeed with Balrampur Foundation capacity building for teachers and promoting school champions.
Project Nayi Ummeed endeavours to improve rural life quality
Energy: Focus on providing basic healthcare facilities for women
15,000+ through knowledge, tools, technologies, services and awareness,
guided by 5Es (Empowerment, Education, Engineering, Energy
and children (general health camps, free medicines, referral to
People benefitted hospitals, capacity building of health workers and specialised
and Environment).
through two health camps)
oxygen plants Empowerment: Makes women entrepreneurs by giving them
Environment: Focus on the natural resource management,
Improvement in the conditions of ANM, PHC and CHCs equipment and requisite training in association with USHA
Oxygen plants installed conserving the soil, water and natural habitats (canal and pond
As per a beneficiary and Head of the ANM center, the earlier International so that they can establish USHA Silai School and
Following the second wave of the COVID-19 pandemic, BCML cleaning, installation of solar lamps and hand pumps, charities
condition of the center was deplorable. The electricity and empower other women in the village.
has installed two oxygen plants at district health centers in and donations to organisations engaged in animal welfare and
Balrampur and Barabanki districts. After installing these plants, drinking water availability were problematic. Animals and snakes Makes farmers self-sufficient through knowledge leading cattle care as well as soil restoration)
COVID-19 patients received an immediate oxygen supply from could enter the center and made their nests/shelters inside. to improved agricultural practices (crop diversification and
the facility. Patients in the surrounding areas will also benefit Because of these problems, ANM and other staff could not stay increased yields)
from this assistance. at the center regularly, and locals did not get medical assistance
when needed. After the renovation of the building, most of these
problems were addressed. ANM stays at the center and patient
visits have increased to 100 people per month.

60 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 61

C A S E S T U DY

Turning a local Strengthening Qualitative transformation Mobile Science Lab Project with
school around health care of our interventions Agastya International Foundation

The government school in Gularia faced a challenge Shilpi Devi of Bijya village faced a challenge. Stronger academic engagement The Company, in association with Agastya Foundation,
in deficient school infrastructure. Animals roamed ƒ Decline in the academic dropout rate is running four mobile science laboratories in
She found it difficult to afford a private hospital for
the school grounds; school property was at risk of ƒ Improved learning outcomes Balrampur, Barabanki, Lakhimpur Kheri and Gonda
her delivery due to poverty. The ANM center was not
damage and theft. This resulted in students absenting districts of Uttar Pradesh. The mobile science
equipped and lacked basic facilities in a crumbling ƒ Enhanced student Happiness Quotient
themselves, coupled with declining enrollments as laboratory visits schools in rural areas that do not
building.
parents transferred their children to private schools. ƒ Cleaner toilets; better hygiene and attendance possess any Infrastructure and equipment to conduct
The Company, through Balrampur Foundation, practical classes for science. Agastya is also offering
Balrampur Foundation approached the school in ƒ Increased general awareness
contributed to maternity health care and renovation outreach programs through online platforms. The EPL
2021 with the offer to improve its infrastructure. ƒ Better digital awareness
of the ANM center. Pregnant women can avail of initiative (Explore, Play & Learn) promotes self-learning
The Company, through Balrampur Foundation,
medical care facilities within a short distance from and the self-exploration capacities of students
renovated classrooms, wiring, fans, floors and
their homes. through household materials and daily life situations.
boundary wall. The provision of benches, desks,
Agastya also conducted capacity building workshops,
tables, chairs, and cupboard enhanced the learning The ANM center has provided accessible and
digital summer camps and special programmes under
environment, reducing the dropout rate. A well affordable healthcare, especially for economically
Improved agriculture practices this project.
equipped playground was also created for the holistic weak families.
development of children. ƒ Training in use of modern equipment
Shilpi Devi delivered in the renovated environment
ƒ Better soil quality
Student turnout has begun to increase; the school is and went home relieved and smiling.
beginning to turn around into an academic hub.
She credits Balrampur Foundation for ensuring
ƒ Increased time efficiency Understanding astronomy
accessible and affordable maternity benefits for the ƒ Improved quality and quantity of yield
countered superstition
village womenfolk in the vicinity. ƒ Increased incomes

Yuvraj is one of six siblings. Yuvraj’s parents prioritised

learning during the pandemic. They enrolled Yuvraj
in Agastya classes. Yuvraj says, “I attended Agastya’s
Carving out an Helped strengthen Better health care Science Fairs, helping me simplify complex problems. I
entrepreneur science understanding ƒ Lower illness frequency was able to conduct experiments on light and straight
path properties that helped me understand solar and
ƒ Higher livelihood productivity
lunar eclipses.”Yuvraj wants to join the Indian Armed
Farmer Ragbeer graduated from Lucknow University Princy’s father works as a security guard; her mother ƒ Enhanced medicine affordability Forces.
with a Masters of Science degree. His father owned a is a homemaker. Princy has been attending Agastya ƒ Shorter distance between healthcare facility and Yuvraj, student of class 8, UPS Sirsa, Nawabganj, Gonda
150-bigha plot in Banarki village. He began preparing sessions since class six at school. “A science fair by patients
for a competitive examination for a government job Agastya used a model of the skeletal system to explain
ƒ Lower incidence of critical illnesses and diseases
but circumstances required him to remain at home the function of bones and other organs. For the first
ƒ Better personal health and hygiene habits
with his parents. During this period, he took up
farming and started a small business.
time, I could see and touch the internal parts of a
human body,” says Princy. “Agastya sessions increased
From theory to practical learning
my interest in learning as the previous method was
Since the business was not profitable, his confidence
boring. During the pandemic, Agastya’s instructor
was impacted. Balrampur Foundation stepped in. Minakshi’s father is an auto driver; her mother is a
engaged me through online sessions. Attending
housewife. Minakshi has been attending Agastya
The Foundation provided agriculture support. Ragbeer sessions through Google Meet was a new experience. Cleaner environment
sessions from the 8th standard when schools were
began to devote his entire time to farming. Yields My science knowledge improved as a result. I can ƒ Cleaner surroundings
shut due to the pandemic. “The Agastya method of
improved; he reported a profit and proceeded to lease relate my science knowledge to the everyday ƒ More water for daily use hygiene teaching using activities and models on Google meet
an additional 30 bighas. phenomena around me.” Princy aspires to become an
ƒ Better night safety or Whatsapp. The Agastya instructors were friendly
IAS officer.
Ragbeer claims, “Balrampur Foundation enabled me and patient. Two experiments conducted per session.”
ƒ Greater use of solar lamps for community learning
to become self-sufficient. I am now my own boss, Princy Mishra is a student of class 9, Valmiki Inter Minakshi aspires to become a doctor.
reporting to no one.” College, Nawabganj, Gonda ƒ Lower incidence of water- borne infections
Minakshi Tiwari, class 9, Aadarsh Vidhyalay,
Bhagwatiganj, Balrampur

62 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 63

Our Governance Board Committees Core skills / expertise of Directors

commitment
ƒ Audit Committee Technical skills/experience Industry knowledge/experience
ƒ Nomination & Remuneration ƒ Accounting and Finance ƒ Industry experience
Committee ƒ Information Technology ƒ Industry knowledge
ƒ Stakeholders Relationship ƒ Statutory Compliance ƒ Understanding relevant laws, rules,
Committee ƒ Risk Management regulation and policy economics
ƒ Risk Management Committee ƒ Business Planning and Strategy Behavioural competencies
ƒ Corporate Social Responsibility ƒ Auditing ƒ Interpersonal relationships
Committee ƒ Human Resource Management ƒ Leadership
ƒ Executive Committee ƒ Engineering and Technology
ƒ ESG Committee ƒ Corporate Affairs

Accountability ƒ Agri Research & Development

Overview
Regulatory
Transparency
compliances Our
governance
50%
principles
7
Majority of All Independent Directors are appointed
Directors are Independent initially for five years and if recommended by
Independent Directors are NRC, the Board appoints for an additional five
Directors Women Directors.
Directors. years subject to shareholder approval.
Social
Integrity
responsibility
Committees chaired by Governance
Independent Directors Policies

ƒ Audit Committee ƒ Code of Conduct ƒ Prevention of Sexual ƒ Business Responsibility

ƒ Nomination & Remuneration ƒ Whistle Blower Policy Harassment Policy Policy
Our Board of Directors
Committee ƒ Anti-Bribery Policy ƒ Code of Fair Disclosure ƒ Cyber Security and IT
ƒ Stakeholders Relationship ƒ Code of Conduct for Policy
Composition of the Board ƒ Selection &
Committee Remuneration of Insider Trading ƒ Risk Management
ƒ Risk Management Committee Directors, KMPs & ƒ Related Party Policy

1 2
other employees Transaction Policy ƒ Corporate Social

7 4 2 Non Executive Women

Policy ƒ Policy for Responsibility Policy

Independent ƒ Board Diversity Policy Determination of ƒ Succession Policy

Directors Executive Directors Non Independent Independent Materiality of events/
Directors ƒ Environment-Health-
Director Directors information
and-Safety (EHS) Policy

Board seniority Directors’ experience

Year FY 2019-20 FY 2020-21 FY 2021-22

Number of collective years of working experience brought to the Board by all Directors 281 264 244

29% 42% 29%

(years)
Number of collective years of Director-level experience brought to the Board by all 145 150 130
10 years or more 5-9 years Less than 5 years Directors (years)
Number of collective years of Director-level experience within the Company brought to 69 72 74
the Board by all Directors (years)

64 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 65

Our Board
Mr. Krishnava Satyaki Dutt
Independent Director

of Directors
Mr. Krishnava Dutt is a Law graduate and is currently the Managing Partner of Argus Partners. Earlier
he was associated with Amarchand Mangaldas, a reputed law firm from where he retired as a Partner
in the year 2009. Forbes India in its Legal Powerlist 2020 recognised Mr. Dutt as one of the Top 50
Managing Partners and as one of the Top 100 Individual Lawyers for Insolvency & Bankruptcy and
Mergers & Acquisitions. ‘ALB India 2020 Super 50 Lawyers’ list recognised Mr. Krishnava Dutt as one of
the top 50 private practitioners in India. Mr. Dutt has been recognised as ‘Highly Regarded’ in M&A by
IFLR1000 2020 Rankings. He has been identified by India Business Law Journal as one of India’s top 100
lawyers and is mentioned amongst the India A-List lawyers of 2020, 2019, 2018 and 2017.

Mr. Vivek Saraogi

Chairman and Managing Director Ms. Veena Hingarh
Independent Director
Mr. Vivek Saraogi, an eminent industrialist, is a veteran in the sugar industry and has
been one of the youngest presidents of the Indian Sugar Mills Association. He has Prof. Veena Hingarh is the Director in South- Asian Management Technologies FZC, Dubai and South
also served as the Chairman of Indian Sugar Exim Corporation Limited and is a former Asian Management Technologies Foundation, a National State Board of Accountancy (USA) accredited
committee member of FICCI & the Indian Chamber of Commerce in Kolkata. Under institution focused on research, training, and strategic consulting services in the area of finance, IT,
his stewardship and able leadership, the Company has grown leaps and bounds and risk management. She has over 20 years of result-oriented consultancy and corporate training
through organic and inorganic means enabling BCML to emerge as a leader in the experience. Her areas of specialisation are Information System Audit, Risk Management, and
Indian sugar industry. Mr. Saraogi is a commerce graduate from St. Xavier’s College. International Financial Reporting Standards. She is a member of the Financial Reporting Review Board,
ICAI. Prof. Hingarh is a FCA (ICAI), ACA (ICEAW), Company Secretary, Certified Information System
Auditor and Masters in Science.

Mr. Dinesh Kumar Mittal

Lead Independent Director
Ms. Mamta Binani
Mr. D.K. Mittal has done M.Sc. (Physics) with specialisation in electronics from the University of Independent Director
Allahabad. He is a former Gold Medalist IAS officer from the batch of 1977 (U.P. cadre) and has served
Ms. Mamta Binani has more than two decades of rich experience in Corporate Consultation & Advisory,
the Government of India in various capacities. Mr. Mittal was the Secretary, Department of Financial
Insolvency laws, Due Diligence, Secretarial & Legal functions. She was the President of the Institute of
Services, where he worked very closely with the RBI and was on the Board of the RBI, LIC, State Bank of
Company Secretaries of India (ICSI) for the year 2016 and was only the second lady President of ICSI
India, IIFCL and IIFCL (UK). Previously as Secretary, Ministry of Corporate Affairs, he has worked closely
in the illustrious history of the Institute. She is the Vice President of the Kolkata National Company
with ICAI, ICSI and ICWAI.
Law Tribunal Bar Association, the Chairperson of the Merchant Chamber of Commerce-Legal Affairs
As an Additional Secretary, Department of Commerce, Mr. Mittal was the Chief Negotiator of India for Council and is the Co-Chair of the Restructuring Committee on Stressed Assets of Indian Chamber
WTO negotiation. He has also served in various capacities in Uttar Pradesh Government like Director of Commerce. She has been bestowed with various medals, certificates and awards including the
General of UP Academy of Administration and State Institute for Rural Development, Managing prestigious D.L. Mazumdar’s Silver Medal, Tejaswini Award, Mauji Ram Memorial Award, Bharat Nirman
Director of Uttar Pradesh Land Development Corporation and Vice Chairman of the Ghaziabad Awards etc. Ms. Binani is a Commerce Graduate, Law Graduate and a Fellow Member of the Institute of
Development Authority. Company Secretaries of India. She is also the first registered Insolvency Professional in the country.

Mr. Naresh Dayal Mr. Praveen Gupta

Non-Executive Non Independent Director Whole-time Director
Mr. Naresh Dayal holds a Masters’ degree in Arts from University of Delhi and in Professional Studies, With 40 years of work experience of which 14 have been spent with Balrampur Chini Mills Limited
Agriculture from University of Cornell, USA. He is a former IAS officer who has worked with the (BCML), Mr. Praveen has spearheaded operations, expansion and new technologies implementation
Government of India for 37 years in various positions at the state and national levels. As Secretary to in various leadership roles. Quintessentially a people’s person, he has led consensus driven growth
the Hon’ble Ministry of Health and Family Welfare, Mr. Dayal was responsible, among other things, for across categories and organisations. He has been essaying a chief role in the ongoing migration of
all policies and programmes in the realms of Public Health, supervising the National Health Authorities, BCML towards the more value-accretive segments. He now leads CTT, to build technical excellence
assessing and devising the policies for the Country’s manpower requirements in health. around engineering process functions that may drive accountability for business results, with focus
on standardisation streamlining of operations maintenance processes across all manufacturing units
of BCML. Belonging to a well-educated family, Praveen earned his MBA from IIM, Kolkata in 1984 after
completing his Mechanical Engineering from the Delhi College of Engineering, Delhi. He is also an
alumnus of the Birla Public School, Pilani.

66 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 67

Board Committees

Audit Committee Environment, Social and Governance Committee

Mr. Dinesh Kumar Mittal Chairperson Non-Executive - Independent Director Mr. Vivek Saraogi Chairman Chairman and Managing Director
Mr. Krishnava Dutt Member Non-Executive - Independent Director Mr. Dinesh Kumar Mittal Member Non-Executive - Independent Director
Ms. Mamta Binani Member Non-Executive - Independent Director Ms. Veena Hingarh Member Non-Executive - Independent Director
Mr. Naresh Dayal Member Non-Executive - Non Independent Director Mr. Praveen Gupta Member Whole Time Director

Tenure of Directors
Nomination & Remuneration Committee
Name of the Director Category Initial Date of Appointment
Mr. Dinesh Kumar Mittal Chairperson Non-Executive - Independent Director Mr. Vivek Saraogi Chairman and Managing Director 3rd July, 1987
Ms. Veena Hingarh Member Non-Executive - Independent Director Mr. Dinesh Kumar Mittal Non-Executive - Independent Director 6th February, 2014
Mr. Naresh Dayal Member Non-Executive - Non Independent Director Mr. Krishnava Dutt Non-Executive - Independent Director 6th February, 2014
Mr. Naresh Dayal Non-Executive - Non Independent Director 15th November, 2016
Ms. Veena Hingarh Non-Executive - Independent Director 31st August, 2019
Ms. Mamta Binani Non-Executive - Independent Director 5th November, 2020
Stakeholder’s Relationship Committee Mr. Praveen Gupta Whole-Time Director 1st July, 2022

Mr. Krishnava Dutt Chairperson Non-Executive - Independent Director

Ms. Veena Hingarh Member Non-Executive - Independent Director
Independent and Women Directors on Board
Mr. Vivek Saraogi Member Chairman and Managing Director

Risk Management Committee

Mr. Dinesh Kumar Mittal Chairperson Non-Executive - Independent Director

5
Directors out of
5
Directors out of
4
Directors out of
8 directors were 8 directors were 7 directors are
Mr. Krishnava Dutt Member Non-Executive - Independent Director
Independent i.e. Independent i.e. Independent i.e.
Ms. Veena Hingarh Member Non-Executive - Independent Director 63% 63% 57%
Mr. Naresh Dayal Member Non-Executive - Non Independent Director

As on 31st March, 2020 As on 31st March, 2021 As on 31st March, 2022

Corporate Social Responsibility Committee

1 2 2
Mr. Naresh Dayal Chairperson Non-Executive - Non Independent Director
Ms. Veena Hingarh Member Non-Executive - Independent Director
Mr. Vivek Saraogi Member Non-Executive - Independent Director

Director out of Directors out of women directors

8 directors was 8 directors were out of 7 directors are
Independent women Independent women Independent women
Executive Committee director i.e. 13% directors i.e. 25% directors i.e. 29%

Ms. Mamta Binani Member Non-Executive - Independent Director

Mr. Vivek Saraogi Member Chairman and Managing Director
Mr. Praveen Gupta Member Whole Time Director As on 31st March, 2020 As on 31st March, 2021 As on 31st March, 2022

68 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 69

How we manage
risks at Balrampur
Key risks and their mitigation
Cane availability and Recovery risk

Mitigation ƒ Tissue culture lab for early and

Excessive, inadequate or ill-timed ƒ Implementing better agricultural different cane varieties.
rain and diseases could hamper practices by providing agri-inputs as
ƒ The cane development team of
the cane availability, quality and well as supporting cane development
the Company actively evaluates the
recovery. activities, reducing the impact of a
planting/growth of sugarcane and
weak monsoon, preventing pest attack
disease infestation programme to avoid
and improving yields.
or minimise damage.
ƒ Engagement with farmers for cane
variety development.

Industry cyclicality risk

Mitigation insulate the Company from flat sugar

Diminished product off-take might ƒ Building strong by- product ethanol realisations.
hamper business sustainability and power businesses to reduce
ƒ The Government’s accommodative
Overview We enlarged our perception of risks Implementation cyclicality.
from the strategic and the macro to the policy on managing the demand/
The Company constantly reinforces During the period under review, the
micro – right down to the transaction ƒ India’s per capita consumption of supply of sugar, reducing the adverse
its overall system to ensure a prompt Risk Management Committee held two
level. In doing so, the Company extended sugar is less than the global average, impact of low sugar realisations.
identification of risks, evaluate meetings. The Company’s Board approved
understanding from the Board to the offering headroom for growth.
applicability and reduce their chances Risk Management Policy included ƒ Minimum Support Price for sugar
or losses. Risk management is applicable individual employee level, reinforcing material risks faced by the Company ƒ The fully integrated business model’s fixed by the Government insulates the
across all management levels and preparedness and mitigation. that were recognised and evaluated. The utilisation to utilise by-products and industry against this risk.
operational areas. Risk management roles Company established a policy framework
are assigned across the Board of Directors, Functions for ascertaining superior management of
Risk Management Committee and Audit The Risk Management Committee its asset and liability profiles.
Committee of the Board of Directors. undertook the following measures: Cane price increase risk
ƒ Overseeing, guiding, assessing and Risk management structure
Over the years, the Company initiated a ƒ Definition and description of risk Mitigation
systematic risk management approach. recognising current and emerging risks
elements (including sources, events, Growing cane prices could impact ƒ Industry associations are continuously engaging with both the Central and State
This encompasses the formulation of ƒ Evaluating risk evaluation and causes, and implications) profitability governments to ensure a rational and win-win pricing policy for both industry and
a Risk Management Team to evaluate measurement mechanisms farmer.
numerous changes periodically in the ƒ Analysing risks, implications and impact
external and internal environment and ƒ Developing policies, practices and on goals
suggest proportionate counter-measures. other control systems to manage risks
ƒ Developing, implementing and
In line with this, the Company’s Risk ƒ Reporting results of risk to the Board following up to achieve goals and Business interruption risk
Management Framework is periodically aligning the risk management system to
ƒ Assessing and recognising risk in other Mitigation ƒ The IT function of the Company
evaluated and adjusted as and when desired risk appetite levels
evolving areas Business disruptions due to ƒ The sugar industry body engaged maintains and upgrades systems
required. Accordingly, during the year
under review, the Board amended the ƒ Supervising the identification, pandemic could result in a financial with respective State Governments on a continuous basis with trained
Risk Management Framework and Policy. assessment, implementation and follow loss to normalise supply side disruptions personnel for taking care of disruptions.
up of risk management activities following the pandemic

70 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 71

Technological obsolescence risk Government policy risk

Mitigation Mitigation capacity to absorb surplus sugar

Ineffective processes can result in ƒ Regular plant and machinery investments increased efficiency. The Company Changes in government policies ƒ The Government’s intervention in the output.
cost outreach periodically replaced equipment; upskilling was conducted; capital expenditure might hamper the business last couple of years has been positive.
ƒ The Government advanced the E20
was allocated for sustained improvement. operations of the Company Favourable government policy on
program from 2030 to 2025, which will
ethanol blending has helped insulate
ensure consistency in policies
the Company against adverse sugar
realisations, excess sugar production ƒ The Company allocated capex for
Regulatory clampdown risk catering to additional ethanol demand.
and inventory.
Mitigation ƒ The Company maintained zero ƒ The Company reduced its ƒ The Company is establishing a multi-
The Company’s operations can be ƒ The Company invested in plant and tolerance level for violations dependence on the sugar segment feed plant to take advantage of ethanol
hampered due to changes in the machinery for environment protection by strengthening ethanol production demand.
ƒ The Company adopted a strong
regulatory environment and to reduce pollutants/GHG
review mechanism to take care of any
emissions
potential lapses.
ƒ The Company recycled and reused Sustainable risk (ESG)
process water to reduce freshwater
drawal. Mitigation
Uncertain social or environmental ƒ The Company made significant technological investments in multiple areas to
conditions could impact the moderate carbon footprint, waste management, energy conservation, sustainable
Company’s operations raw material cultivation and effluent treatment plant, among others.
Cyber Security and IT risk

Mitigation ƒ All critical business data (user and

This could lead to financial loss, ƒ Balrampur Chini was one of the first application data) was backed up to
disruption or damage to the sugar companies in India to migrate to ensure information security Internal control risk
reputation of the Company from SAP HANA S4
ƒ The Company gateways as well as Mitigation ƒ The internal audit and external
some kind of failure of its information
ƒ The Company developed IT-driven end points are secured using the best Lack of efficiency and effectiveness ƒ The Company prepared standard auditor teams periodically reviewed
technology systems
disaster recovery system to ascertain products to mitigate network and web in internal controls could affect operating protocols for different standard operating protocols.
uninterrupted business functioning security risks. organisational objectives functions, which are rigorously
ƒ A dialogue between statutory and
ƒ The Company ensured data security ƒ Disaster recovery has helped ensure monitored.
internal auditors ensures systemic
by having identity and access control business continuity. effectiveness
and authorisation matrix.

Project execution risk

Mitigation ƒ Day-to-day monitoring and

Inability to complete projects on ƒ The Company completed the supervision by the management and
time might hamper the Company’s distillery expansion at Gularia on external consultants help the projects
future targets schedule this year keep on track

72 | Balrampur Chini Mills Limited Sustainability Report 2021-22 | 73

 r
ve
co
ck
ba
de
si
In
74 | Balrampur Chini Mills Limited
 Balrampur Chini Mills Limited
Registered Office
FMC Fortuna, 2nd Floor,
234/3A A.J.C. Bose Road, Kolkata 700020, West Bengal, India
P: (033) 22874749 F: (033) 22892633 E: bcml@bcml.in
W: www.chini.com