NEW INDIA AUTO LTD.

2C
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 SUSTAINABILITY ISSUES (1/2)

SUPPLIERS INVESTOR REGULATOR

• Sustainability of Supply • Capital Intensive • BS-VI compliance

chain
• Social unrest in community • Import duty on raw
• Water shortage materials (e.g. aluminium)
• Community perception
• Community Unrest- • Reduction of Carbon
suppliers unwilling victims • Increasing interest in EVs footprint

• Uncertainty due to emerging • Renewable, waste • Proper Waste Management

EV industry management
• Mitigation of GHG6 Norms
• Supply chain sustainability
 SUSTAINABILITY ISSUES (2/2)

COMMUNITIES CUSTOMER-
EMPLOYEE
BUSINESS
• Employment & Livelihood • Small labor force-8000 • Product safety

• Infrastructure – school, • Freedom of association • Product performance

community center, lighting
• Capacity building • Resource consumption
• Land Acquisition during usage
• Environmental conditions at
• Water Shortage the workplace • Packaging material

• Emissions, effluents, waste • Emissions, effluents and

waste
 BUSINESS CASE
MATRIX
CONSUMER INVESTOR
COMMUNITY CONCERNS CONFIDENC PROFITABILI
E TY

CAPITAL Possibility of labor Shift of Consumer Increasing interest Long-term benefits

unrest preference to EV in the EV market in diversification
INTENSIVITY

RESOURCE Short-fall in water Customers who are Lack of investor Long-term profits
supplies in the businesses are hit trust in a company take a hit due to
INTENSIVITY community by community distrusted by the decreasing brand
backlash community equity

COST- Profit at the cost of Resource Investors want Futuristic view:

COMPLIANCE Community
operation
co- consumption
level/low cost ratio
compliance along
with significant
dilemma between
BS-VI compliance
BALANCE ROI and investing in EV
 MATERIALITY DETERMINATION AND TARGET
SETTING
For Key Materiality Issues
MATERIAL AMBITION LEVEL GOALS BASIS
ISSUE
Enter and gain significant Survival and growth
INVESTORS

Increasing interest in Compete market share in EV market opportunities in the

EVs (10-15% within the initial 3 changing market
years) scenario

Lower government sanctions

COMMUNITIES REGULATORS

BS-VI compliance simultaneously ensuring Ensure product

Comply
profitability of products reliability in the long-
run

Decrease net water footprint Community unrest can

Lead by 50% through water cause investors to
Water Shortage
conservation solutions and withdraw their
stewardship by 2021 investments
 MATERIALITY DETERMINATION AND TARGET
SETTING
For Key Materiality Issues

MATERIAL AMBITION LEVEL GOALS BASIS

ISSUE
SUPPLIERS

Reduce waste generation by The waste generated

Sustainability of supply Compete has a transverse
15% by employing
chain
reutilization of old spare relation to communities
parts where it is dumped
CUSTOMERS

Resource consumption
BUSINESS

Reduction of resource
Resource consumption Compete ensures better
consumption level of
during usage sustainability for the
intermediate products
customers leading to
generation of goodwill
 ESTABLISHING KEY PERFORMANCE
Increasing interest in EVs INDICATORS
DOS ANDof DON'TS
Sustainability supply chain
Market share in new Create a smooth supply-chain
business such as EV (higher to ensure timely completion of
the better) commitments

Water Shortage Resource consumption during usage

BS-VI Compliance
Investor confidence (should Become an industry leader in supplying
Number of regulatory be high due to lower social products with minimum intermediate
sanctions (lower the better). unrest). resource consumption.
ACTION PLAN: ADDRESSING WATER SHORTAGE
ISSUES
• Basic Strategy: Reducing Water footprint and return purified water to the environment

• Invest in local communities in order to get them to invest in us through trust and co-operation

• Infrastructure Initiatives-rainwater harvesting ,sprinkler irrigation-delivering to the community

• Reduce water footprint in production process-reduce waste water production

• Reduction of extraction of quality drinking water from adjoining areas

• Regular monitoring of quality water in the areas adjoining the production plants

• National Primary Drinking Water Regulations and state drinking water quality standards
ACTION PLAN: ADDRESSING WASTE REDUCTION
ISSUE
• Introduction of scrappage policy-in line with Government’s plan for December

• Return of old dismantled spares by the customer to the company

• Consumer benefit: Reduced cost of cars ; Company benefit: Recycling of old spare parts

• Revamp sales through use of cost-reduced raw materials-relieve sluggish growth of auto industry

• Full disclosure about such reduction and key actions taken to shareholders

• Futuristic view of setting up scrappage plants to reuse scrap metals in other forms (backward integration)
Thank You