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Godrej & Boyce drives sustainable supply chain with 80% local sourcing

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Mumbai, December 21, 2023: Godrej & Boyce (G&B), the flagship company of Godrej Group, is actively working towards building a more sustainable industrial landscape in India. With nearly 80% of its annual purchases sourced locally, G&B supports domestic businesses, reduces environmental impact, strengthens supply chain security, and gains control over product designs and costs.

To address the environmental impact of small and medium enterprises (SMEs) in corporate supply chains, G&B initiated the Beyond Sourcing program, encouraging sustainability through Lean & Green Management, aiming for 'Zero Effect Zero Defect' (ZED). Currently, 25% of the company’s MSME suppliers are part of this program.

Zurvan Marolia, Sr. Vice President, Godrej & Boyce, emphasizes on the organization’s 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.”

Key initiatives driving G&B's sustainable supply chain efforts include the Supplier Code of Conduct (SCOC) and the Supplier Cluster Programme.

An example of sustainability within the supply chain comes from Godrej Interio, where a key supplier of Castors produces plastic granules by recycling ocean-reclaimed nylon fishing nets and PET bottles. This specialized recycled plastic serves as the primary material for approximately 2 million Castors in Godrej Interio’s furniture.

Another example is seen in Godrej Appliances, which transitioned from using large-sized JUMBO compressors to developing lightweight mini compressors for smaller-capacity refrigerators. This shift optimized material usage and showcased the importance of local production. The mini fixed-speed compressor achieved a 33% weight reduction while maintaining similar cooling capacity, enhancing energy efficiency and throughput.

Discussing the company’s focused approach to greening its supply chain, Mr. Marolia said “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.”

Over the last decade, G&B's supplier programs have benefited over 150 SME suppliers, emphasizing the company’s commitment to global quality standards. By driving these initiatives, Godrej & Boyce is not just enhancing operational efficiency but also setting industry benchmarks and championing responsible consumption, playing a pivotal role in shaping a sustainable future for Indian industries.

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