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27th June 2018

Hero MotoCorpGreen Vendor Development Programme (GVDP)

External ‐ Confidential 2HMCL GVDP Programme

Snapshot

1st August 2018

Point of No Return ????


Snapshot

• Major (>80%) Environment Impact Activities Centre

• Global Issues directly linked to industries 9 out of 17

Supply Chain Partner


Our Inspiration


Our Mission To Become one of Greenest global company


GVDP Need


GVDP

Objective of GVDP

• De‐Risking the Supply Chain, up‐gradation by Knowledge Sharing and Expanding the Horizons of Environmental Practices among the Supply Chain Partners

• Collaborative Approach to Conserve and Protect Environment to Meet Our Societal Commitment

• Better Business Sustainability & Improved Vision for the Challenges ahead

Objective


Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Organization division, sub division , process & sub processes

Derivation Mapping

Finalization of master environmental plan

Mass/Energy balance review & derivation of estimated values

Gap assessment & finalization of EARN program

Classification of opportunities

Result Verification & Standardization & strategies for Future

Step 8

Step 9

Step 10

Regulatory changes and submitted regulatory returns for gaps if any.

Implementation & Review of EARN Programs

Short , medium & long term Action Plans as EARN Programs

Master Environment plan with opportunities of improvement.

Step 11Environmental Aspects Reduction Network (EARN) Programs1. Energy 2. Water 3. Waste 4. Pollution5. Hazardous Chemicals6. Environmental

Compliances

GVDP Methodology


Approach

1ST YEAR 2ND YEAR 3RD YEAR

Enrollment under GVDP

Education & Training for GVDP techniques

One- to-One Mentoring

Base line establishment

Identification of areasfor improvement

Draw up EARN program For bridging the gaps

Evaluation of EARN program at GAMBA

Continual improvement in EARN Program Management

Enhanced business efficiency through EARN programs

Improved resource planning and compliancemanagement

Inculcate GVDP approach in over allWork cultureMeasuring & monitoring results

Extending GVDP techniques to their other manufacturingunits and supplyPartners

Demonstrate continualimprovement in theirEnvironmental performance

Generate MIS & submitto HMCL

JOURNEY CONTINUES FOR NEXT GENERATION

HAND HOLDING & MENTORING BY HMCL

Approach

GVDP


Gre

en V

endo

r Fac

ilitie

s

Year

(Tot

al V

endo

r Fac

ilitie

s -2

81)

New Enroll 16Certify 166

Certify 49Enroll 31

New Enroll 21

Certification is Subject to conformance with the program

New Enroll 20

Certify 29

New Enroll 20

Certify 70

Certify 90

Certify 107New Enroll 20

New Enroll 20

New Enroll 20 Certify 124

New Enroll 20

2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16

Certify 140

New Enroll 10 Certify 150

2016‐17

Journey continues

2018-19 Enrollment

10

Enrolled 186Total Tier-I 281

RoadmapGVDP


Benefits Tangible

Sandhar6 Lac KWh

Rockman0.10 Lac KL

Sandhar17.9 Lac INR

Rockman10 lac KWh

Lifelong0.22 Lac KL

Sunbeam18.4 Lac INR

Electricity Savings Water Savings Waste Reduction

Achievers

108 L KWh 0.8 L KL Rs. 4.45 Cr.

Phase 9 Saving

Total Saving FY 18

~ 706 L KWh ~ 5.6 L KL ~ Rs. 30 Cr.

57892 Ton CO2

reduction29000 Families

3000 Families

Holy Resource


Benefits Intangible

• More system improvement possibilities identified through GVDP approach.• Input‐Output‐Mass balance focus in different processes.• Legal knowledge enhancement• Energy loss assessment in distribution system & Motor/Transformer

performance management.• Organized methodology of process mapping, instead of kaizen’s approach.• Better clarity in relation to WASTE (overconsumption) & LOSS (Efficiency

loss, distribution loss, capacity loss, chemical loss, oil loss etc.)• Water, energy, waste, chemicals mass balance and realization of gaps.• Better understanding of all the environmental aspects of various processes• Team knowledge & capability enhancement. Improved accountability at

HOD level to sustain & improve performance.


Benefits Intangible


Replication Potential Major Programme

Joint Guidance

Co‐Sharing : GreenCo

Cluster Learning

Annual GVDP Sumit


No. Supply Chain Partner Location

1 FCC RICO LTD Gurgaon2 JNS Haridwar Haridwar3 Lumax Ind. Ltd. Haridwar4 Suprajit Engg. Ltd. Haridwar5 Bony Polymers Haridwar6 Hema Engineering Haridwar7 Shivam Autotech Haridwar8 Rico Auto Ind. Haridwar9 Bony Polymers Gujarat10 Suprajit Engg. Ltd. Bhiwadi11 Shri Ram Piston Pathredi12 Napino Auto Gurgaon13 Exiimius Auto (Badve Group) Bhiwadi14 Neel Auto Gurgaon15 Sentec India Gurgaon16 Neel Metal Gurgaon17 Shivam Autotech Haryana18 Metalman Micro Turners Dharuhera19 Bhagwan Precision Haridwar20 Bill Forge Haridwar

GVD

P P

hase

X P

artn

ers

Replication Potential Cluster Learning


Replication Potential

Date Supplier10th May’18 Gmax,AG,Rockman,Munjal Auto

9th May’18 Minda.Meenakshi,Autofit,Hema,Micro T.

7th May’18 Mahavir,Lifelong,Nipman,Satyam, Autofit

30th April’18 Rockman, Sunbeam,Rinder,Sandhar,AG Inds.

20th April ’18 Autofit, Nipman,Sunbeam,Mahavir,

11th April’18 Rinder, Rockman, Micro Turner ,Satyam

6th April ’18 Micro Turner,Meenakshi,Nipman, Minda

26th March ’18 Sunbeam, Munjal Auto,Mahavir,Autofit

27thMarch’18 Rockman,AG Inds.,Hema,Satyam

18th May ‘17 AG Inds.,Rinder,Meenakshi

17th May ‘17 Napino,Nipman,Satyam, Munjal Auto

15th May ‘17 Endurance,Rockman, Munjal Auto,Satyam

Cluster Learning


Challenges faced

• Secondary Priority• Departmental Barriers• Phony Postings• Co‐ordination with Representatives• Comfort Zones

• Lack of Knowledge for new equipment• Challenging Tasks (eg to Run VAM / ZLD etc.)• Legacy Equipment• Sunk Investment• Showcase Projects / Activities


Best Practices

Natural Gas Reduction of hot water generators by using heat recovery system

Reduce hazardous waste by providing Magnetic Scale Remover

Hybrid APFCR Panels Water Efficient Fixtures Yield Improvement Chemical Substitution

System

Process

Renewable Energy Policy LED Policy EE Equipment Policy – Only IE3 / IE4 Motors Water Positive Roadmap Waste Reduction Roadmap Less Paper to Paperless Roadmap Environment Impact Assessment (EIA) Awareness


Best Practices Few Examples …


Best Practices Impact Sharing with Suppliers

Part Material A Part Material B


Learnings Methodology of Base Line derivation as the basis for Improvement.

Identification of Operational gaps and hidden losses from prevailing processes Including Distribution Losses.

Mind set of looking at environmental compliance programs changed.

An Opportunity to Tune up the System for Business Sustainability and Benefits.

Departmental barriers broken, Process owner became aware of every aspect of their processes.

Learned methodological way of working for energy conservation, waste reduction & environment protection.

Knowledge level increased as each team member re-looked his process with a new perspective. Mind set of looking at environmental compliance programs changed.

Major


Way forward

Sustainable World

Environment Material

Issues

Green Contractors

Right Partner

Mutual Gains

Partnering with Co‐opetiors

De‐Riskingवसुधैव कुटु बकम ् Tier II & III

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