HIKAL LIMITED

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Hikal has implemented solar and wind power through power purchase agreements at Mahad, Taloja, Jigani Unit 1 and Panoli sites. Renewable energy reached 77% of total energy consumption in FY 2024-25 (up from 62% in FY 2023-24). Annual cost savings of INR 134.0 million from alternative energy adoption (Panoli INR 27.0m, Taloja INR 53.5m, Mahad INR 23.8m, Jigani 1 INR 29.7m).

No narrative on durable removals approach in the firm's most recent reports.

• Fuel switching: natural gas/fuel oil → briquette-generated steam

  Scope 1 emissions intensity declined due to transition from natural gas and fuel oil to purchased briquette-generated steam. Cogeneration turbine installed at Taloja briquette-fed boiler to generate in-house clean electricity. Improved boiler steam-to-fuel ratio saved 697 MT of fuel and 292.39 MT of furnace oil at Jigani 1.

• Green chemistry & process redesign (carboxylation)

  R&D spend was 4.20% of total in FY 2024-25 (4.56% in FY23-24). Redesigned carboxylation process eliminated toxic reagents (CO, n-butyl lithium, palladium), improved yield from 33% to 59%, reduced Process Mass Intensity from 43 to 18, and reduced CO2 by 46 kg per 1 kg API (46,000 kg per 1,000 kg API). Patent filed.

• Solvent recovery and waste valorisation

  More than 90% of process solvents recovered and reused. 'Wealth from Waste' programme identifies recycling/reduction/reuse opportunities; dedicated lab studies waste treatability and converts by-products into desired intermediates. 41,353 MT recycled and 4,712 MT reused in FY 2024-25.

• Energy efficiency upgrades and process optimisation

  Replaced pumps with high-efficiency units, retrofitted CFL to LED in flameproof areas, optimised transformer voltage from 415V to 405V, automated streetlighting, installed motion sensors and flash steam recovery systems. Annual operational savings of INR 27.8 million.

• Scope 3 purchased goods — supplier ESG due diligence

  Scope 3 dominated by purchased goods. Hikal has a Green Supply Chain and Sustainable Procurement Policy and conducts on-site/desktop ESG and EHS audits for critical India-based suppliers. 100% of critical India suppliers assessed for ESG, human rights and working conditions.