Varroc Engineering Limited Releases Sustainability Report Highlighting ESG Commitments, Operational Scope
Varroc Engineering Limited has published its Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2025-26, detailing the company's operational profile, human resource metrics, and environmental stewardship commitments. The report provides a comprehensive view of Varroc’s manufacturing activities and its adherence to various sustainability principles across the business.Operational Profile and Business Scope
The company is primarily engaged in the manufacture and sale of automotive components, constituting 100% of its turnover. Varroc operates as a global automotive technology solution provider, supplying electrical, electronics, lighting, polymer, metallic, and advanced safety solutions to OEMs worldwide across two-wheeler, three-wheeler, passenger car, commercial vehicle, and off-highway vehicle (OHV) segments. A strong aftermarket division also services over 27 countries globally.The company maintains a significant operational footprint with 30 plants nationally and zero international offices or plants, totaling 33 locations. Varroc serves markets across eight Indian states and has an international reach spanning 30 countries. Exports constitute 3.8% of the total turnover.
The business activities are segmented as follows:
| Product Category | % of Total Turnover Contributed |
|---|---|
| Electrical & Lighting Auto parts | 41.41% |
| Polymer Auto parts | 34.83% |
| Steel-Forged Products | 7.03% |
| After Market Auto parts | 10.90% |
Human Capital and Labour Practices
As of the end of FY 2025-26, Varroc employs a total of 3,504 permanent employees and 25,117 total workers.Regarding workforce composition:
| Category | Total Employees | Total Workers |
|---|---|---|
| Permanent | 3,482 | 1,890 |
| Other than Permanent | 22 | 23,227 |
The report details robust commitment to employee well-being and human rights across the organization. Regarding safety management, Varroc has implemented a comprehensive Occupational Health & Safety (OHS) Management System aligned with ISO 45001 standards across all manufacturing plants. Workers have been trained in behavioral safety, POSH Awareness, and Technical skills, contributing to an overall worker training rate of 76% for the current financial year.
The company also maintains a focus on gender equality within its workforce, showing that both permanent employees and workers with female representation received necessary services such as health insurance (100% coverage) and accident insurance (100% coverage). Furthermore, return to work rates post parental leave are reported at 100% for both male and female employees, and the same for workers.
Environmental Stewardship and Resource Management
Varroc has put forth substantial efforts toward environmental preservation as part of its corporate ethos. The company reports significant investments in sustainable practices:- Energy Efficiency: Strategic initiatives focused on energy conservation resulted in more than 2.8 million kWh units saved through compressed air arresting, lighting automation, and VFD use for MTC Pumps.
- Renewable Energy: Over 90% of plants have installed solar rooftop systems, while more than 45% of renewable energy is sourced through Renewable Purchase Obligations (RPO).
- Waste Management: The company has implemented waste management practices ensuring that all operational waste is segregated and managed. Total waste generated stood at 16,288 metric tonnes in FY 2026. Of this, 14,659 metric tonnes were successfully recycled or re-used, demonstrating strong circular economy efforts within the firm's operations.
Water management involves monitoring withdrawal and consumption meticulously. The total volume of water consumed stood at 419,024 kiloliters in FY 2026, with a Water intensity per rupee of turnover reported at 0.51. Crucially, Varroc has successfully implemented Zero Liquid Discharge (ZLD) systems across five designated manufacturing plants.
Governance and Stakeholder Engagement
The governance structure includes an ESG Steering Committee, chaired by the Chairman and Managing Director, overseeing sustainability matters. The company emphasizes responsible business conduct through its policies, which cover anti-corruption and anti-bribery, enforceable by a zero-tolerance stance applicable to all employees and associated parties globally.Stakeholder engagement is managed through designated channels, including CSR initiatives implemented via the Varroc Foundation. Key social impact includes sponsoring the BAJA SAEINDIA Event for undergraduate engineering students (7360), fostering local talent at colleges in Chhatrapati Sambhajinagar, and running programs like the Varroc Vengsarkar Cricket Academy (VVCA).
The company maintains strong standards regarding supply chain integrity. The supply chain is managed using a PQCDSM monitoring system which assesses 196 suppliers across productivity, quality, cost, delivery, safety, and morale. Furthermore, the entity ensures human rights compliance in its value chain, having assessed 100% of its value chain partners for issues related to sexual harassment, child labor, forced/involuntary labour, and wages.
VARROC Stock Price Movement
On Tuesday, Varroc Engineering Limited shares slipped by 1.61% to settle at ₹658.70, driven by market movements. The stock recorded a traded volume of 60,586 shares during the session.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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