India Nippon Electricals Ltd Releases Sustainability Report for FY 2025-26, Highlighting ESG Commitment and Operations in Automotive Sector

India Nippon Electricals Ltd Releases Sustainability Report for FY 2025-26, Highlighting ESG Commitment and Operations in Automotive Sector​

India Nippon Electricals Limited (INEL) has detailed its commitment to business responsibility and sustainability through its Business Responsibility and Sustainability Report (BRSR) covering the financial year April 1, 2025, to March 31, 2026. The report provides a comprehensive look into the company's operations, workforce metrics, environmental stewardship, and social impact within the industrial landscape.

INEL is primarily involved in manufacturing cutting-edge electronic ignition systems and advanced mechatronic products for the automotive industry. This core activity constitutes approximately 91% of the entity's turnover. The range of products sold includes Electronic Ignition Magnetos (81% of total turnover), Static Converters, Automobile lighting spares, Sensor, and Ignition Coil.

Operational Scope and Stakeholder Engagement​

The company operates across multiple markets, having a presence in 4 plants and 1 office nationally. Globally, INEL serves customers across 11 countries while catering to two-wheeler, three-wheeler, general purpose engines, all terrain vehicles, snow mobiles, and recreational vehicles. Exports account for 8% of the total turnover.

Regarding human capital, INEL has a workforce comprising 397 employees and 2414 workers as of the end of the fiscal year. Among employees, 89.17% are male, while 10.83% are female. Workers show a predominantly male workforce at 83.51%, with 16.48% being female.

The company's leadership structure includes Mr. Arvind Balaji, Managing Director, who is the highest authority for implementing and overseeing the Business Responsibility policy. While there is no dedicated sustainability committee, the Managing Director and the President are responsible for sustainability-related decision-making.

Focus on ESG Risks and Environmental Stewardship​

INEL identified several material issues related to environmental and social matters, including Corporate Social Responsibility (CSR), Employee Well-Being, Occupational Health and Safety (OHS), Data Security, and Governance. The company addressed risks such as climate change impact on resources and inadequate information security by implementing internal frameworks and certifications.

In terms of production practices, INEL has ensured Zero Liquid Discharge across all its plants and facilities, having installed STPs and an ETP at its Hosur factory.

Key environmental commitments include:

• Emissions Reduction: The company introduced CNG-based vehicles and implemented BS-VI standard buses for employee transport, reducing carbon emissions. It also utilizes PNG (Piped Natural Gas)-based diesel generators in one production unit.
• Resource Efficiency: INEL has initiated several energy conservation measures, including introducing a thyristor controller for ovens and replacing the hydraulic press with an energy-efficient pneumatic press.
• Green Initiatives: The company pledged 2,000 saplings under CSR initiatives to aid carbon absorption and environmental improvement.

Workforce Development and Social Responsibility​

The report details significant investment in workforce development and training across various levels. In FY 2025-26, 72.29% of permanent employees and 100% of permanent workers were covered by training programs focused on HR issues. Furthermore, 100% of both male and female permanent employees show a return to work rate after parental leave, while the corresponding retention rates are also reported as 100%.

In terms of social responsibility, INEL’s CSR strategy focuses on community impact, with projects including providing financial support for meritorious students in partnership with institutes, installing RO plants at primary schools, and constructing a running track at a senior secondary school.

Compliance and Safety Performance​

The entity maintained strict standards regarding safety and workplace health. Both the company and its processes are compliant with ISO 14001 (Environmental Management System) and ISO 45001 (Health and Safety Management System).

Safety incidents were minimal, reporting zero for both Lost Time Injury Frequency Rate (LTIFR) and Total recordable work-related injuries for both employees and workers in the current financial year. The company’s waste management practices include identifying authorized scrap dealers for material recovery and disposing of hazardous wastes through authorized vendors.

The report also disclosed instances related to regulatory action, detailing a penalty amounting to 50,000 against the Department of Legal Metrology, Government of Andhra Pradesh regarding non-declaration of Manufacturing Date on MRP labels. A nominal fine of 1,000 was also levied by the Joint Commissioner (Appeal) State Tax, Dehradun, for a tax contravention.

Key metrics regarding operational commitments include:

• Waste Generated: Total waste generated stood at 873.16 metric tonnes in FY 2025-26.
• Resource Consumption: The company’s water consumption was 45,812 kilolitres in the current financial year, with a water intensity of 0.0000043 Giga Joule per Rupee of turnover.

The BRSR confirms INEL's commitment to continuous improvement in operational sustainability while engaging with all stakeholders and ensuring adherence to ethical conduct principles.

INDNIPPON Stock Price Movement​

India Nippon Electricals Limited shares shed 2.20% on Wednesday, settling at ₹1007.4 after falling by ₹22.60 from the previous trading close. The equity saw a volume of 63,029 shares recorded during the session.