Risk Management
We have in place a robust risk management framework to respond swiftly to disruptions and guide informed decisions. Continuous risk monitoring protects our operations and assets, builds stakeholder confidence and supports business continuity while also preparing us for new opportunities.
Risk Management Committee

Ms. Sutapa Banerjee

Chairperson

Mr. T. P. Ostwal

Member

Mr. Inder T. Jaisinghani

Member

Mr. Bharat A. Jaisinghani

Member

Mr. Nikhil R. Jaisinghani

Member

Mr. Bhaskar Sharma

Member

Mr. Sumit Malhotra

Member

Mr. Niyant Maru

Member

Risk Rating Matrix
  • Risk Movement: Refers to the change in the severity of a risk over time, indicating whether the risk is increasing, decreasing or remaining stable.
  • Risk Likelihood: Evaluates the probability that a risk event will occur within a specified timeframe.
  • Risk Impact: Represents the extent of damage or effect that a specific risk event could have on the organisation’s objectives.
  • Risk Appetite: Indicates the level of risk an organisation is willing to accept in order to achieve its strategic objectives.
  • Risk Rating: Calculated as: Risk Likelihood × Risk Impact

Likelihood

Unlikely
Possible
Likely

Impact

Slow
Moderate
Rapid

Appetite

Low
Moderate
High
Risk
Likelihood
Impact
Appetite
Risk Rating
Geopolitical and Social Instability
Succession Planning
Threat from Competition
Monitoring of Strategic Goals
Cyber and Information Security
Technology Obsolescence & the ability to keep pace with digital innovation
Environment, Social and Governance
Timely Execution of Capex Projects
Foreign Exchange Rate and Commodity Price Fluctuations
Statutory Compliances

Geopolitical and Social Instability

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M S

Stakeholders Impacted

Risk Description

Risks stemming from geo-political uncertainties, war, etc. impacting sourcing, raw material price fluctuation, exports market, etc.

Mitigation Measure

  • Continuous monitoring and leadership discussions forums pertaining to mitigation of any sourcing and demand risk due to war
  • Securing production by maintaining adequate raw material inventory and continuous monitoring of the demand and supply
  • Geographic diversification of manufacturing, supply chain and market ensures that location specific issues do not bear an extensive impact on operations
  • Protection against disruption through insurances e.g. Industrial All Risk (IAR) etc.

Succession planning

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F H

Stakeholders Impacted

Risk Description

Inability to retain human capital, to build high performance team for enabling customer centricity and to have a structured succession planning process

Mitigation Measure

  • Created and filled key senior leadership positions through new appointments and redesignations to manage succession effectively
  • Created the HR Strategy Charter and periodically tracked and discussed key HR metrics with leadership for timely actions
  • Launched new training programmes for leadership and middle management
  • Streamlined hiring operations, ensured process consistency, and improved the candidate and hiring manager experience
  • Adopted a targeted employer branding approach to enhance the employee value proposition for both the current and future workforce

Threat from competition

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F S

Stakeholders Impacted

Risk Description

Risk from competition posed by both established players and new entrants, who employ aggressive growth strategies

Mitigation Measure

  • Strengthening brand positioning through increased investments in advertising and promotional activities
  • Strengthening of relationship with existing top distributors and expansion into whitespaces
  • Focussed approach on various segments such as builder, renewables, real estate, etc.
  • Strengthening product portfolio through investment in R&D to stay ahead of the competition
  • Capturing rapidly growing market segments with superior products
  • Adopting targeted GTM and production innovation strategies
  • Introducing comprehensive engagement & loyalty programs in B2C for our Channel Partners, retailers & electricians

Monitoring of Strategic Goals

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M S

Stakeholders Impacted

Risk Description

Risk of inadequate monitoring of strategic goals and blueprints outlined within the transformational journey (i.e. Project Spring)

Mitigation Measure

  • A clear Annual Operating Plan with continuous monitoring of performance against goals
  • Monthly business and functional reviews across all businesses and functions is in place
  • Established the HLDC review and governance mechanism, including automated dashboards and scorecards for the sales team, and centralised dashboards with performance views at the regional and area levels
  • Implemented a framework for structured reviews across all levels for the Power BU and FMEG, including focused KPIs at the regional, sales, and product levels, and continuously monitored performance to ensure achievement

Cyber and Information Security

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F I H S

Stakeholders Impacted

Risk Description

Caused by unauthorised breach of our information network, leading to interruption in the normal functioning of systems

Mitigation Measure

  • A multi-layered cybersecurity framework is in place, comprising 24×7 threat surveillance, privileged access controls, multi-factor authentication, data loss prevention, and advanced web application firewalls

Technology Obsolescence & the ability to keep pace with digital innovation

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F H S I

Stakeholders Impacted

Risk Description

The ability to evolve and address digital, channel/ business model innovation, automation, and evolving GTM needs, and keeping pace with market-driven changes (‘technology laggards’)

Mitigation Measure

  • A structured Digital Roadmap is being executed across business channels, encompassing modernised customer and channel-partner platforms and progressive adoption of Artificial Intelligence

Environment, Social and Governance

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M H S N

Stakeholders Impacted

Risk Description

Risks stemming from political and social situations, leading to disturbances within the business environment

Mitigation Measure

  • Conducted a double materiality assessment to identify highly material topics
  • Defined the ESG Roadmap and Charter and developed a yearly roadmap to achieve FY30 ESG goals
  • Monthly ESG Council meetings to monitor progress on the execution of the roadmap is in place
  • Assigned ESG targets to identified stakeholders to achieve ESG objectives
  • Appointed an ESG and Sustainability Advisor
  • Various product and site certifications are in place to ensure the highest levels of health and safety, such as ISO 9001:2015, ISO 14001:2015, OHSAS, UL, BASEC, IEC, and ISO 45001:2018

Timely Execution of Capex Projects

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M

Stakeholders Impacted

Risk Description

Risk of timely execution of capex project in line with the laid down roadmap.

Mitigation Measure

  • Oracle Project Module has been implemented for better governance, collaboration and system controls over projects
  • Robust Capex Governance structure is in place with a charter and periodic meeting cadence to monitor costs and timeliness of execution (including budgets, timeliness, etc.) with relevant stakeholders.
  • Monthly meetings for Capex are conducted along with Sr. Leadership (Capex Steering Committee) to review project cash flow progress and project timeline.
  • Periodic updates are provided to the Board on progress of Capex projects including budget vs. actuals.

Foreign exchange rate and commodity price fluctuations

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M

Stakeholders Impacted

Risk Description

Risk related to fluctuating foreign exchange rates and volatility in pricing of input commodities, including metals such as copper and aluminium

Mitigation Measure

  • Documented commodity and foreign exchange risk management policy exists
  • Robust hedging framework which encompasses contracts with embedded derivatives as well as forward contracts
  • Metal hedging through the use of a ticketing tool and hedging desk with cross functional collaboration

Statutory Compliance Failures

  • Risk Movement
  • Likelihood
  • Impact
  • Appetite

Capitals Impacted

F M

Stakeholders Impacted

Risk Description

Risk related to noncompliance with statutory guidelines, including various rules and regulations under different statutes.

Mitigation Measure

  • Statutory and internal audit by reputed global audit firms
  • Compliance tool and tracker implemented with mapping to respective compliance owners
  • Automated alerts/notifications are in place to ensure timely adherence to regulations

Risk Movement

  • Increasing
  • Decreasing
  • Stable

Likelihood

  • Unlikely
  • Possible
  • Likely

Impact

  • Slow
  • Moderate
  • Rapid

Appetite

  • Low
  • Moderate
  • High

Link to our Capitals

F

Financial Capital

H

Human Capital

M

Manufacturing Capital

S

Social and Relationship Capital

I

Intellectual Capital

N

Natural Capital

Link to our Stakeholders

Investors

Value Chain Partners

Customers

Communities

Employees

Environment