INTELLECTUAL CAPITAL

Our intellectual capital supports our ambition to grow sustainably, seek new opportunities, reduce the complexity of operations, and build innovative product portfolios.

DIGITAL TRANSFORMATION AND AUTOMATION

We are focusing around five areas as per digital perspective, as we are slowly transforming from make to the stock business model (manufacturing to capacity) to make to order (customer demand-driven model). This perspective is the important factor that is driving us towards the adoption of digital technologies and its advancement.

• Customer Partner Collaboration: Digital technologies are deployed for providing real-time information to our customers by enabling real-time tracking of movement of our raw material and finished goods (including road, container). It helps us in meeting customer expectations and assisting in better planning for customers. Building a digital platform across the supply chain, enables us to provide information to the customer on the status of the order in the supply chain (real-time information/ tracing/alert). We have implemented the process at Domestic textiles and Overseas spinning business and are planning to extend to Acrylic fibre.

• Manufacturing / Operational Processes: Deployment of digital technologies enables us to do predictive maintenance. Monitoring and processing manufacturing data, operating parameters, product quality is used to predict potential failures/breakdown. Accordingly, plant maintenance schedules are drawn and implemented. This initiative has improved and has the potential to improve efficiency, quality, and downtime. This focus area looks into predictability for better asset management, better uptime, product quality, reduction of waste and cost.

• Power Saving through Digitization: We are digitalizing to improve energy efficiency through technologies that gather and analyse (power consumption of equipment) data to effect changes to energy consumption and optimization.

• Product development process: We have digital samples replacing the physical samples at design meetings. We are transforming the complete process into a digital showcasing of samples. We have also conducted digital trade shows. This resulted in reduced costs as well as agility in customer management. We will add to the customer experience in the near future.

Making our products available on the platform where customers can experience the product and can process the order with us with the contact details mentioned. It makes the customer interaction fast, agile, much more iterative.

• Data analytics: Our internal analytics team use big data and related techniques to forecast product prices, manage inventory, track raw material price movement, customer segmentation and sales forecast.

Video Analytics (Veda platform): We have implemented across all the entities our video analytics which helps in safety and security. Video analytics are being extended to Linen Club Stores, to manage customer expectations. During the Covid times, we are using video analytics for managing safe distancing at workplaces and stores.

2.1 DIGITAL AWARENESS

We had conducted a digital assessment survey of our business to assess our capacity and preparedness for digital transformation. To address the gaps identified in the survey, we have planned for increasing digital learning across the organization. We are trying to reach to employees and impress on what value it brings to them and encourage them to use more data.

Success story

ESTABLISHING LIVE LEARNING SESSIONS: SEEKHNE KA KEEDA

We believe a learning organization and its people will make us innovative, resilient, and future-ready. With digital innovation, global connectivity, and the constant need for upskilling and reskilling, we have been developing new frontiers for learning. Seekhne Ka KEEDA series was conceived and launched on April 5th, 2020 for augmenting managerial capability of DT Staff during the lockdown. We seek ways to make the most of the wealth of knowledge, expertise and skills from within our workforce.

We precisely identified Subject Matter Experts within the business, prepared schedule and started deliberations on probable topics that may be interest of employees. Topics ranged from our value chain, enabling technologies, finance etc. Some of the topics were “Retail Levers – Behind the Scene”, “Analysis of Financial Ratios”, “Global SCM – Post COVID 19”, “Digital Mindset and Culture”, “Equity Investment” etc. Thus, we tried to cover not only themes related to the work we are engaged-in currently but also developing a sense of imminent changes and wealth creation!

The sessions are held on Thursdays between 12 noon to 1 pm followed by Q&A. On an average attendance of 125 was recorded. Employees were extremely interested in what they’d learned from these sessions. We have planned Series 2, which is now in progress wherein we have focused on topics which are driven by popular demand of the employees. Hence, it is a situation akin to ‘demand pull’.

This initiative has turned-out to be one of the most popular learning and engagement interventions in the last six months.

2.2 INFORMATION SECURITY AND CUSTOMER PRIVACY

Our Information Security System is efficient in safeguarding the data and the user identity. Our systems and processes are well defined as per the Aditya Birla Group guidelines which also prevent the unauthorized access of data. We put security controls in place to limit who can access the information.

Framework for Privacy, Protection and Security

SUSTAINABILITY WITH DIGITAL INNOVATIONS

We explore the opportunities of digitization that can assist in driving sustainability and achieve our target 2025. We ensure upgrading our technology infrastructure to have a lower social, economic and environmental impact. We leverage the power of technology to improve our performance and contribute to the United Nations Sustainable Development Goals.

We have deployed Enablon - Sustainability, EH&S and Operational Risk Management Software. It has been primarily deployed for

  • Managing operational risks
  • Ensuring compliance
  • Improving sustainability performance
  • Stakeholder Engagement

We are analyzing regulations of GDPR, and PCRA and their applicability to our business. We are preparing for ISO 27001 and conducted the VAPT (Vulnerable assessment and penetration technique).

ALLIANCE WITH ENABLON

Enablon helps us manage safety and environmental performance, ensure compliance, minimize risks and improve profitability. Its module and application assist in risk management, performance improvement KPIs, action plans, gap assessment and assist in managing regulatory compliance.

PRODUCT INNOVATION

We foster a robust research and innovation culture to address emerging challenges and demands of our diverse customer base across the globe. Our R&D efforts span across the entire value chain and explore the possibility of increasing value at any part through our intervention. . We continually evaluate various opportunities to excel and benchmark existing products and processes with best-in-class technological progressions.

We continue to invest in scientific research and product development in close partnership with our customers and the marketplace. R&D fosters a constant stream of unique and cutting-edge products that drive organic growth.

We associate with and draw from Aditya Birla Science & Technology Company Private Limited, India which is the main Research & Technology provider for our businesses. We also have R&D across our units which focuses on product and process-related solutions. Innovation at our Units is led by Value Creation Engine (VCE) at DT, the Chief research & technology officer at AF.

Our philosophy in innovations is derived from responsive feedback mechanism.

DOMESTIC TEXTILES

JAYA SHREE TEXTILES- SUSTAINABLE LINEN & WOOL PRODUCTS, DETAILS AS BELOW:

1. Linen: is 100% Natural, Sustainable, Bio degradable & inherently antibacterial fibre, It is one of the oldest fabric known to mankind & Jayashree is one of the pioneers in introducing the finest & most fashionable Linen in Indian & global Textile/apparels market.

2. Linen attributes: High strength, highly breathable, Moisture management, Versatility, Inherently antibacterial, UV protection, Durable.

3. Linen sustainable blends: Linen blends with Cotton, Silk, Excel & other regenerated cellulosic fibres, Recycle Poly etc.

4. Merino wool: is Natural, sustainable, Bio degradable fibre, Jaya Shree textiles is one of the largest vertically integrated merino wool & wool-blended worsted yarn manufacturers & exporters serving global & domestic brands.

Our machine washable merino wool – makes the wool apparels easy to handle/easy to care, it’s applications covers active, athleisure, sportswear, Travel & Outer wears, Woven & Knit fashion apparels, suits/jackets, Sweaters, Socks & other accessories.

MERINO WOOL ATTRIBUTES:

Merino wool is 100% Natural. It has best moisture management properties, inherent odour resistant, inherently flame resistant, naturally breathable, elastic and protects UV-rays. These are warm & cool and are recyclable & bio-degradable. Jaya Shree textiles produce merino wool with sustainable fibre blends like silk, cashmere, bamboo, lyocell, viscose, recycle green poly, biodegradable Nylon etc.

At ABG Textiles, we follow an approach to innovation and the subsequent process of Design & Development (D&D) divided into six stages. We encourage our people to experiment and innovate.

All the developed products are being displayed in our design studio where we engage with the customers.

Success story

Wool has been considered an environmentally and socially responsible fibre. It is a sustainable fibre, naturally oriented, renewable, biodegradable, and recyclable. However washing wool products has been a challenge for the consumer as Washing wool too frequently wear out the fabric, making it lose its shape and making it felt, hence shortening its life.

With the advent of the latest technology and after extensive research & laboratory tests, Jaya Shree Textiles has started offering to its customer its latest collection of Machine Wash Wool products. The advanced process prevents the felting / shrinkage of the wool, resulting in a fibre that provides more longevity and comfort than synthetic material, while also retaining its shape.

The yarns used in manufacturing are crafted from specially chosen superfine wool fibre, which in turn makes the product lightweight, itch-free & ideal for round-the-year usage. These products are stylish, trendy, and lightweight and are all-season wool range. The machine wash wool is used for allweather fabric. Its versatility has been showcased as the latest consumer fashion products likeathleisure wear, activewear, sportswear, suiting, women’s fashion wear, shoes, socks, stoles, shawls & other accessories

The properties which enable it to offer versatility are due to its properties of keeping body temperature under control, the possibility of a wide range of suiting, light material which enables staying outdoor for a longer time, readily accepted among the new generation and come out as trendsetter. Consumers are also delighted as it takes minimal storage space in wardrobes. The washing and cleaning of Machine Wash shoes are as comfortable as washing canvas shoes and offers similar longevity. These products are suited for both outdoor and indoor activities.

Jayashree textiles state-of-the-art facility and conscientious research have enabled us to provide yarns that can be used to manufacture a forever young wool product.

OVERSEAS SPINNING BUSINESS

To provide value to our customers and value chain partners, we have set up an R&D center comprising of Pilot Spinning Plant, Centre of Excellence & state-of-the-art product display center (Design Studio). ABY™ Centre of Excellence works towards greening the supply chain.

This R&D center is also equipped with facilities encompassing fibre testing and fabric dyeing. It also enables us to study the emerging trends in fibre technology, textile technology and fashion to keep pace with the changing market trends and achieve benchmark quality standards to meet every requirement in the value chain

ABYTM specializes in yarns having value addition of unique fibres and extraordinary technological improvement.

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ABYTM SUSTAINABLE YARNS

Recycled Yarn (made with reused material)
Recycled polyester
Recycled Nylon
100% Recycled Polyester & Blends with Cotton, Rayon, Modal
Recycled Nylon Blends with Cotton, Livaeco
ABYTM Yarns Made of Plant Based Fibres
Organic Cotton

Linen (Max Linen blend 30%)
• 100% Organic cotton
• Blends with Polyester, Nylon and other functional fibres
• Blend with Viscose and natural fibres i.e. wool, linen, kapok
• Blended yarns with Polyester, Viscose and cotton
• Tri-blends with Polyester and Viscose or Polyester and cotton
Flax plant uses less water, fewer pesticides and are processed without chemical
Kapok
(Max Kapok blend 30%)
• Blended yarn with Polyester
• Blended yarn with Excel/ Viscose/Modal
• Blended yarn with Cotton (Max kapok 20% with cotton)
Kapok is a sustainable natural biodegradable fibre. It grows wildly.
Ramie/Stinging
Nettle (Max Ramie blend 20%)
• Blended yarns with Polyester, Viscose and cotton
• Tri-blends with Polyester and Viscose or Polyester and cotton
Ramie is a highly sustainable eco-friendly fibre. Ramie is naturally resistant to bacteria, mold, and mildew as well as light damage, rot or any insect attack. It does not require pesticides or herbicides to grow healthily
ABYTM Bio-Degradable Yarn
PBS based biodegradable yarn PLA Yarn Sorona Powered flexible yarn Bamboo Yarn Biodegrades within 6 months
Starch derived biodegradable yarn
37% biodegradable than petrochemical based spandex
Bamboo plant is potentially one of the world’s most sustainable resource
ABYTM Yarns Made of Low Environment Impact Fibre
Livaeco Viscose yarn Livaeco is sustainable, traceable Viscose fibre which can be blended with any fibre.
FSC Viscos and Poly/ Viscose blended yarn FSC (Forest Stewardship Council) certified Viscose and its blend with Non-forest fibres
Excel and Excel blended Yarn Excel is sustainable 3rd generation viscose i.e. lyocell fibre where raw material comes from responsibly cultivated forest and production takes place in a closed cycle where about 99 percent of all process chemicals are recycled.
ABYTM Green Café (Coffee ground fibre) ABYTM Greencafe uses coffee ground fibre which recycles coffee waste and process is a low temperature, high-pressure and energy saving process, combines coffee grounds onto the yarn surface, changing the characteristics of fibre and offers up to 200 % faster drying time compared to cotton.
Dope dyed Polyester, Viscose and Acrylic Yarn Dope dyed fibres in Polyester and Viscose avoid fabric dyeing and thus effluent exhaust and saves energy too.
Cataionic dyeable Polyester Cationic dye-able polyester is dyed at lower temperature than normal polyester and gives brighter dye, thus saves energy.

Success story

LAUNCHING OF LEADER’S CHOICE COLLECTION

We developed a product Leader’s Choice Collection for the section like Politician/ Leaders/ Consumers who prefer stiff finished, shape retention linen garments. Our product development team replicated the Khadi / Paper touch stiff finished products in cotton & Linen/cotton blends in the domestic market with our premium 100% Linen.

As 100% linen products has difficulty in forming crease, pressing, retaining shape & are not durable in maintenance for long time. In order to overcome these challenges for our target customer, Linen Club introduced specialty finished - Khadi/ Paper Touch/ Stiff hand feel range in the brand name - The Leaders Choice collection.

We are also focusing upon developing products with broad Linen Lea range- covering shirt & bottom weight qualities, preferably in white shade

The Leader’s Choice collection is the preferred choice of Politicians, Leaders & ardent Linen Lovers for whom Linen with luxury, Comfort & better shape retention without starch finish even after repeated washes are the prime expectations. During the FY 2019-20. we produced 56,000 Meters.

The Application Development Centre (ADC) at Acrylic Fiber business is a state-of-the-art setup to study developments in fibre spinning with cotton, modified cotton and worsted systems. The Centre helps to conduct studies on optimization and benchmarking of different products and processes

Success story

THE GREEN FIBRE FROM ACRYLIC FIBRE BUSINESS

Radianza fibres are made by a technology, where the dyes are added to the fibre while it is in the gel stage. The environmental impact of this product is much less compared to a standard yarn dyeing process. Radianza™ gel dyeing:

-Consumes much less water (around seven times less than conventional dyeing for one piece of garment)
-Consumes much less energy (around 20 times less than conventional dyeing for one piece of garment)
-Needs no additional chemicals
-Discharges much less unused dye

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Intellectual capital

Success story

SUSTAINABLE PRODUCT INNOVATIONS: GROWING ACCEPTANCE OF RADIANZA™

The fashion industry and our customers are regularly asking for sustainable solutions. Radianza™ has been accepted as a preferred substitute for yarn dyeing by many of our customers. There is also a lot of interest by brands and retailers in knowing more about Radianza™ and understanding how it could contribute positively in their efforts to make their supply chain and products more sustainable. Recently we developed an ecofriendly sweater collection with Radianza™ for a very famous global brand, which will be launched at retail in the next financial year. We are also in process of developing more projects and the growing demand for the existing product.

We are working on changing the brand identity of Radianza™. With the growing acceptance and popularity of the product, we have launched our new brand logo for Radianza™. We kick-started this two years back by launching a campaign called “Nature Thanks Back” which talks about the environment benefits of Radianza™. A new brand logo of Radianza™ was also launched which identifies more with the environmental and water conservation benefits of Radianza™. Recently we launched a small movie about the state of the fashion industry with regards to the environmental issues of pollution and resource consumption and how Radianza™ is one of the most effective solutions. The video was much appreciated by many people in the value chain. One of the world’s largest retailer has shown an interest and developments have started for them.

Intellectual capital

The environmental friendliness; contribution towards lower carbon footprint has already been Understood &; acknowledged by many value chain partners. The campaign made on Radianza for its contribution towards sustainability has started bringing fruits in the growth of sales which is reflected in the sales volume trend:

Intellectual capital

Radianza has grown by 17.56% in sales and revenue in comparison with its performance 2 years back.

1. Radianza™ - Virtual Booth 2. Radianza™ - Presentation 3. Radianza™ - Sustainable Fashion Full Documentary

Over a period of time, TAF’s R&D team has developed series of Value Added Products which have significant positive impact on environment as well as flora and fauna:

Intellectual capital

TAF developed a new process technology “TEXLON”, which consumes less steam & power per ton of manufacturing of Acrylic Fibre. The same technology has been replicated while designing our newly commissioned Value Added Product manufacturing line.

SYSTEMS AND PROCESSES

Intellectual capital is an indispensable asset for us. Managing and continually upgrading it is an essential component of our businesses. Systems and processes constitute a core element that helps us maintain consistent quality and adapt businesses to evolving environmental conditions. We continue to evolve our systems and operating model, as our companies scale.

COMPLIANCE AND RISK MANAGEMENT

Compliance and Risk management at each of our unit is immensely structured and governed by the Aditya Birla Group policies, standards, guidance notes, and technical and management standards that have been derived from the global best practices.

In FY 2019-20 there are no fines, non-monetary sanctions, or cases brought forward regarding non-compliance with environmental and social laws and regulations against any of the units.

Risk Management

We have a well-established risk management framework at all our units, where we periodically update long, medium, and short term risks. We have also instituted a risk management committee at the unit/ business level and group level. These committees regularly meet to review existing risk, define new risk, and formulates risk mitigation measures.

The risk team has launched and deployed a 4*4 risk assessment matrix which helps in analyzing and monitoring our risk profile. The new framework encompasses both likelihood and impact with quantified information which assist in identifying and implementing mitigation measures. We manage, monitor, and report on all the potential risks and uncertainties that can impact our ability to achieve our objectives. The framework constitutes identified risks, probability of the risk, possible consequences, mitigation plans and residual risk. The mitigation plan encompasses the actions, responsibility, target date and current status, which are regularly reviewed and updated. The entity’s Board guides the tolerance levels of residual risks.

We have long term strategic risk management for environmental and social risks, where we have identified risks and aggressively pursuing measures to mitigate risks. We have identified water and climate risks for each of our entities and put in place mitigation plans.

Compliance Management

We recognize the importance of effective compliance management as both our businesses and customers are globally spread, and the compliance requirements vary. Our proactive planning, organizing, controlling, and leading activities that ensure compliance with local and international laws/standards. The CEO of all three businesses are responsible for developing business-specific standards and strive to implement and execute the industry best practices for compliance.

Our Legal Compliance Management Plan covers corporate, company law, tax, accounting, labour-related compliance requirements and IMS covers product quality, factory, electrical, environmental and social related compliance requirements of regulations and voluntary commitments. All our organizational policies and standards are referenced and complied with the following institutions:

Policies and Management Frameworks

For us, Policies helps to guide decisions and achieve rational outcomes while frameworks act as a support structure comprising of initiatives across the value chain. Across all the units we have similar policies and frameworks which keep us complaint and future-ready.

Commitments, Accreditation or Certifications

The commitments, accreditation and certification demonstrate our commitment to environmental concerns and a system to monitor, manage and improve our performance. For Aditya Birla Textile Group customer satisfaction is our highest priority. Our commitment to sustainability is evident in our products, our processes and our work environment.

2. Linen attributes: High strength, highly breathable, Moisture management, Versatility, Inherently antibacterial, UV protection, Durable.

The commitments, accreditation or certifications like the ones outlined below are applicable across our operations at Aditya Birla Textiles:

INTEGRATED MANAGEMENT SYSTEM (IMS)

Integrated Management System (IMS) integrates quality, environment, energy and health & safety processes into a single framework. The Integrated Management System (IMS) is also designed in keeping with the ABG Standards, management process guidelines, standard operating procedures and implementation guidelines. The IMS modules that we follow are well structured and updated that allow us to track and comply with the existing regulations while effectively planning for contemporary and future risks.

This Integrated Management System (IMS) serves as a framework to deploy the policies and has a scope for continuous improvement.

BUSINESS CONTINUITY PLANNING

Our Business Continuity Planning (BCP) is based on a group-level policy on crisis management and framework consisting of Crisis Management manual, escalation protocol and Business Continuity / Disaster Recovery plans to maintain production and customer service levels. We also are complaint to applicable legal and regulatory requirements and conform to the requirements of Aditya Birla Group Crisis Management Technical Standard, and have also established and maintained a Crisis Management with defined roles and responsibilities for managing a Crisis. We have a robust Business Continuity Plan in place to manage any business interruption and help our units to respond in the event of any contingency, ensuring recovery of businesses as usual.

We are committed to providing a safe and healthy work environment. We achieve this by preventing accidents and occupation-related ill-health and assessing risks related to manufacturing facilities and equipment. Employees/ labour are communicated, instructed and trained to handle various scenarios that could develop in a crisis situation. We ensure the location of our critical infrastructure in different seismic zones, to spread out risk. All the units have a well-defined strategy to combat local and large-scale disasters and have recovery plan and capacity to implement the same.

Success story

STARTING BUSINESSES POST LOCK DOWN DURING COVID-19 PANDEMIC

In India, the government had imposed complete lock down for a prolonged period in the initial stages of the pandemic. With well institutionalized IMS, we had well-defined Business Continuity Plan that guided our response to such events. We conducted scenario analysis and charted plans under different scenarios. We mapped potential hazard due to prolonged shut down to the assets and the surrounding population and took necessary remedial action. We also drafted a Standard Operating Procedure (SOP) for resumption of operations post lifting of COVID-19 lock down. This included comprehensive action plan laying out the mode of operation for resuming work after COVID-19 lockdown and during the lock down essential care that need to be taken.

ENVIRONMENT, HEALTH AND SAFETY (ENHESA) MODULE

All the entities in the group have implemented ENHESA (Environment, Health, Safety and Social compliance software tool) and report quarterly to the APEX Council of the group. This keeps us updated and helps us understand the changing operational regulatory landscape and ensure proactive and positive compliance.

Intellectual capital