MATERIALS


GRI Standards

GRI 301: Materials Section/Comments
GRI 103-1 Management approach: Explanation of the material
topic and its boundary

Material Aspects and Scope

GRI 103-2 Management approach: The management
approach and its components
GRI 103-3 Management approach: Evaluation of the
management approach
GRI 301-1 Materials used by weight or volume

Material and waste management

GRI 301-2 Recycled input materials used
GRI 301-3 Reclaimed products and their packaging materials KNPL do not reclaim packing materials
of finished goods

Raw Materials

Paint manufacturing is a material-intensive process and material cost is a prominent portion of the total cost of the paint. Paint is a mixture of binder, pigment, additive and solvents.

Material cost is a significant proportion of the final product cost in the case of paints. So quality raw material procurement and its wastage during processing are key focus areas for the company. The table below illustrates material consumption along broad categories of raw materials:


Raw Material category 2014-15 2015-16 2016-17 2017-18 2018-19
Pigments, Extenders and Resins (in MT) 125722 146114 169546 185715 195973
Organic acids and anhydrides (in MT) 13551 15097 17560 18529 20058
Solvent oils and fatty acids (in MT) 79906 87741 95467 95822 100051

Reducing Material Wastage

In order to reduce material wastage at the source, KNPL has implemented close-loop manufacturing processes in its deco operations. Process parameters are monitored through SCADA controls to exercise strict control over material additions. It has also helped us to reduce worker exposure to various workplace hazards. Implementation of a silo system for close-loop powder addition has helped to reduce worker exposure to dusting on the shop floor. In the decorative process, most of the wash water is reused in the product itself.

Last year, the company strengthened its material recovery and reuse initiatives as well; specifically, material losses due to its supplied packaging. It is tracked through a system and its reuse is ensured. Implementation of reusable cartridge in the filtration process has helped us to reduce cartridge waste from industrial processes.

In resin manufacturing as well, cleaning solvents of all major resins are reused in the next batch and losses are kept minimal. In paint sections, system controls have been established for paint reuse in the same batch and are being sustained. In order to reduce sticking material losses and barrel handling in manufacturing processes, the company procures bulk liquid chemicals in tankers (instead of barrels) and stores them for further usage in manufacturing.

In operations, cleaning solvent is reused after the distillation process for equipment cleaning. The company uses fresh raw materials in its products to maintain high-quality standards.

Major hazardous wastes generated from our manufacturing sites are distillation residue, ETP sludge, mixed paint, off specification paint, etc. These wastes are being disposed of as per statutory requirement to authorized treatment and disposal facilities. No waste is transported internationally from our sites. In the last financial year, there have not been any cases of significant spillage at any of our manufacturing sites.

KNPL currently doesn’t reclaim packing material generated from the products sold.


Raw Material Procurement & Due Diligence

KNPL has a base of over 500 material suppliers. Out of this, approximately 350 plus are local suppliers. The company tries to source its raw materials from local vendors to the extent possible, but it needs to import some of the specialized raw materials as there is no local alternative.

As a part of due diligence, with respect to its raw material supply, KNPL has introduced a mechanism to evaluate local vendors based on various criteria such as compliance with statutory requirements, environment management system, safety management system, sourcing from conflict regions, etc.

New local vendors are being evaluated based on checklists and are audited through factory visits. Last year, 12 suppliers were audited and evaluated out of 21 newly introduced suppliers. Most of the packing materials are sourced from suppliers within a 10 km radius of production sites to minimize transportation and associated environmental impacts.

Going forward, the company intends to strengthen its mechanism for supplier due diligence and their confirmation on compliance.


Raw Materials (in %) 2014-15 2015-16 2016-17 2017-18 2018-19
Imported 40 46 42 45 42
Indigenous 60 54 58 55 58