Shanthi Gears Ltd releases Business Responsibility Report, details operational scope and ESG commitments
Shanthi Gears Limited (SGL) has published its Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2025-26. The report details the company's operational footprint, financial structure, and comprehensive commitment across environmental, social, and governance (ESG) parameters, setting ambitious sustainability goals for the next decade.The listed entity, which was incorporated in 1972, maintains a paid-up capital of ₹ 7.67 Crores. SGL operates across 3 plants and 1 office, serving customers both nationally across 28 States and 8 Union Territories, as well as internationally in 27 countries.
Operational Focus and Market Reach
The company's core business activities include the design and manufacture of Gears, Gear boxes, Geared Motors, and Gear Assemblies, alongside the refurbishing and repairing of gear boxes. The entity’s turnover is broadly divided between GGM (Gears & Gear Motors), accounting for 48%, and GDS (Gear Drives & Services), which accounts for 52%.Exports contribute 13% to the total turnover. SGL caters to a diverse B2B clientele, primarily supplying Original Equipment Manufacturers (OEMs). The industries served are broad, including mineral processing, mining, power generation, textiles, aerospace, and food processing.
ESG Goals and Commitments
SGL has set specific long-term goals for FY 30 across environmental, social, and governance aspects to guide its sustained growth. These goals include achieving a 30% reduction in Energy Intensity, sourcing 75% of total energy from renewable sources, and reducing Water Intensity by 50%. Social objectives target the achievement of zero Lost Time Injury Frequency Rate (LTIFR) and a 90% retention rate for employees in Management and Supervisory roles.Environmental Performance Metrics
The company demonstrated measurable progress toward its environmental targets during the reporting period:| Parameter | Target FY 30 | Performance (FY 25-26) | Status |
|---|---|---|---|
| Renewable Energy Usage | 75% of total energy | 61% | Progressing toward target |
| Water Intensity Reduction | 50% reduction | 13% reduction | Progressing toward target |
| Waste Intensity Reduction | 50% reduction | 12% reduction | Progressing toward target |
| Energy Intensity | 30% reduction | 10% reduction | Progressing toward target |
In terms of resource management, Shanthi Gears recorded total water consumption of 39,497 kiloliters in the current financial year. The company reported that its waste generated was 5701.47 metric tons, with a high percentage (5386.90 metric tons) recovered through recycling and re-using processes.
Workforce and Social Metrics
The report details the workforce composition and engagement levels at SGL:| Category | Total Count |
|---|---|
| Employees | 396 |
| Workers | 1039 |
| Permanent Employees | 263 |
| Permanent Workers | 216 |
The company maintains policies and processes to promote inclusive growth, including a designated Internal Complaints Committee (ICC) for the Prevention of Sexual Harassment (POSH). The report shows that 94% of permanent employees were trained on human rights issues. Regarding labor practices, the entity affirmed that all business agreements include human rights considerations.
Governance and Business Practices
From a governance perspective, SGL is structured to ensure accountability, with the Board of Directors being responsible for sustainability-related issues. The company’s top leadership, identified as CEO & Whole-time Director MKarunakaran, is responsible for the oversight of the Business Responsibility policy.Financially, the entity showed specific trends in its trade relationships: sales concentration to dealers/distributors stood at 18% for the current financial year, up from 16% in the previous year. The number of days of accounts payables improved, dropping from 60 days in the previous fiscal year to 79 days in the current fiscal year.
SGL is a member of five industry associations, including Confederation of Indian Industry and Madras Management Association (MMA).
SHANTIGEAR Stock Price Movement
Shares of Shanthi Gears Limited are edging higher to ₹451.60 as of 12:12 PM today, rallying by 1.63% in live trading. The stock maintains positive momentum amidst the session, with 9,908 shares being traded so far.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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