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OUR DE-RISKED BUSINESS MODEL

In a world where businesses are marked by uncertainties, we derive business sustainability by identifying probable risks and protective safeguards. Many of our risks require agile decision-making and effective risk management strategies that mitigate exposure and harness the available opportunities. The more effectively we manage these risks, the stronger is our capability to mitigate these risks and harness the opportunities presented by these risks.

Talent Management Risk

Difficulty in attracting, developing and retaining skilled talent

Risk Driver
  • Knowledge / Skill gaps in especially fresher
  • Limited skilled and experienced talent availability in the market
  • Talent competition from industry
  • Inadequate internal communication
  • Rising employee aspirations towards compensation and benefits
Implication for Value Creation
  • Loss of intellectual capital
  • Missed opportunities and stagnation
  • Impact on customer reach and experience
  • Impact on product quality and operational efficiency
Mitigating Control

Deployment of comprehensive talent management strategy which includes:

  • Recruitment, training, and development programmes
  • Maintaining positive work environment
  • Attractive compensation and benefits
  • Opportunities for career growth
  • Employee engagement initiatives
  • Transparent performance management systems
  • Succession planning to retain and develop key talent
Associated Opportunities

Develop best work environment for the employees and improve company productivity

Reduction in gross margins can affect overall profitability of the organisation

Risk Driver
  • Market volatility in commodity pricing
  • Cost inflation
  • Pricing pressure from the competitive market
Implication for Value Creation
  • Financial performance
  • Competitive positioning
  • Investor confidence
  • Long-term sustainability
Mitigating Control
  • Brand management, product promotions
  • Inventory control and better commercial terms
  • Strengthen channel network for product supply and service support
  • Product benchmarking, innovation solutions to meet evolving customer needs efficiently
  • Enhanced governance via focussed teams to monitor Fixed vs Variable Costs, Treasury, Inventory and Working Capital
Associated Opportunities
  • Adoption of lean manufacturing technologies
  • Improved margins, customer reach and market share

Cyber-attack, cyber security threats, vulnerability management, application security and increasing data security threats

Risk Driver
  • Evolving threat landscape
  • Constant need for upgradation of security control
  • Need for continuous trainings
  • Limited awareness among employees
  • Changing data security requirements
Implication for Value Creation
  • Disruption in operations
  • Regulatory consequences
  • Damage customer trust and reputation
  • Financial loss
Mitigating Control
  • Continuously upgrade and maintain robust IT governance architecture
  • Enhancing IT skills, upskilling / mandating certifications for the cyber security team
  • Implementing a robust system to prevent and monitor data leakages
  • Conducting cyber-security training and various program to create awareness in the employees
  • Creating and implementing various cybersecurity policies and procedures
Associated Opportunities

Secured data available for faster decision-making in business

Lower demand from affected geographical markets and countries. Also, impact on domestic supply chain and logistic costs

Risk Driver
  • Volatile international commodity prices
  • Political instability/conflict/global power shifts
  • Regulatory changes/policy uncertainty/protectionist policies
  • Trade tariffs
  • International sanctions and embargoes
Implication for Value Creation
  • International Go-To Market (GTM), expansion decisions
  • Disruption in supply chain and increase in procurement and logistics costs
Mitigating Control
  • Stringent governance control for high-risk countries and for exports
  • Diversified spread of international business
  • Alternate strategic sourcing options, cost review through procurement levers and transport management
Associated Opportunities

Explore opportunities in countries which are looking for derisking supply chain

Changing environmental patterns are likely to impact market potential, demand pattern and regulatory compliances

Risk Driver
  • Shifting weather pattern and unseasonal rains
  • Increasing and unexpected natural calamities
  • Sensitive agriculture and rural market
  • Government initiatives towards Net Zero
  • European Carbon Border Adjustment Mechanism
Implication for Value Creation
  • Supply chain disruptions
  • Availability and delivery of raw materials, components, and finished goods can lead to production delays, increased costs, and potential loss of customers
  • Governments around the world are implementing stricter regulations for carbon-intensive products
Mitigating Control
  • Comply with environmental regulations, emissions standards, waste management requirements, and sustainability reporting
  • Green energy generation and reduce energy cost
  • Close monitoring of commodity prices
  • Reduce dependence on vendor base from limited geographies
  • Aim to reduce the carbon footprint
Associated Opportunities
  • Shift of market demand towards energy-efficient, lowest life-cycle cost product range
  • Reliable pumping systems for flood management programs
External Operatinge Environment
Engaging With Our Stakeholders

INTEGRATED ANNUAL REPORT 2022-23

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