Mumbai, December 21st, 2023: Godrej & Boyce (G&B), the flagship company of Godrej Group, is actively shaping a more sustainable industrial landscape in India. By sourcing almost 80% of its annual purchases locally, G&B not only supports domestic businesses but also strategically reduces environmental impact, bolsters supply chain security, and gains better control over product designs and costs.
Zurvan Marolia, Sr. Vice President, Godrej & Boyce, emphasizes on the organization’s proactive response to global supply chain disruptions, “Supply chain disruptions due to climate change and the pandemic have been a major cause of concern for businesses worldwide. To counter these disruptions and strengthen local economies, Godrej & Boyce has implemented a conscious strategy to transitioning from extended global supply chains to shorter local ones, develop more insourcing in comparison to outsourcing and for the outsourced products, we shifted from single vendors and geographies to multiple vendors and geographies to counter supply chain disruptions. This has the additional impact of enhancing local competencies and competitiveness.”
Recognising the environmental impact of small and medium enterprises (SMEs) in corporate supply chains, G&B initiated the Beyond Sourcing program to support supply chain partners to adopt sustainability through Lean & Green Management, aiming for ‘Zero Effect Zero Defect’ (ZED). Currently, 25% of the company’s MSME suppliers have been onboarded as a part of this program.
Mr. Marolia further comments on the Company’s focused approach to greening its supply chain, “We also recognise the critical environmental impact of supply chains and in response have streamlined various programs to minimise this impact. Through our supplier cluster programs, we have ensured that the small and medium enterprises that form our supply chain are adequately supported, trained and provided with resources that help them institute environmentally friendly processes. Together with our partners, we will continue to lead the industry with responsible product stewardship.” An in-house rating system by G&B regularly provides suppliers with feedback on areas requiring enhancement. The evaluation criteria include quality management, logistics, manufacturing processes, and environmental practices.
Godrej & Boyce
Some of the key initiatives to drive G&B’s sustainable supply chain initiatives are the Supplier Code of Conduct (SCOC) and the Supplier Cluster Programme.
An example of sustainability within the supply chain is from one of Godrej & Boyce’s largest businesses, Godrej Interio where one of their key suppliers of Castors (for Godrej Interio’s chairs) who also ranks among the largest organized manufacturers globally in the furniture industry. They produce plastic granules by recycling ocean-reclaimed nylon fishing nets and PET bottles by employing advanced engineering solutions. They collaborated with experts to formulate a blend incorporating fishing net, PET bottles, virgin raw materials, and additives. This blend serves as the primary material for the castors while maintaining quality and aesthetics. In the last fiscal year, Godrej Interio utilized approximately 2 million Castors crafted from this specialized recycled plastic in its furniture.
Another standout example of G&B’s commitment to sustainability is seen in the operations of Godrej Appliances, another large business unit of Godrej & Boyce. The unit undertook an ambitious project to transition from using large-sized JUMBO compressors to developing lightweight mini compressors for their smaller-capacity refrigerators. This strategic shift not only optimized material use but also underscored the importance of local production of components. It resulted in a significant reduction of component weights, including a 20% decrease in the housing of the compressors, shell, and shell cover. Moreover, the development of a mini fixed-speed compressor, which was 33% lighter yet maintained similar cooling capacity, marked a notable achievement. This new compressor not only exhibited greater energy efficiency but also facilitated an increase in the throughput of dispatch quantities due to its smaller size.
Over the last decade, more than 150 SME suppliers have benefited from G&B’s supplier programs, showcasing the company’s unwavering commitment to maintaining the global quality standards. In driving these initiatives, Godrej & Boyce isn’t just enhancing operational efficiency; it’s setting industry benchmarks and championing responsible consumption, thus playing a pivotal role in shaping a sustainable and eco-friendly future for Indian industries.
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