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 (PPAs) at Mahad, Taloja, Panoli and Jigani Unit 1. Renewable share of total energy reached ~77% in FY24-25 (1,038,458 GJ of 1,347,981 GJ). Cost savings totalled INR 134.0 million across sites (Panoli 27.03m, Taloja 53.5m, Mahad 23.80m, Jigani-1 29.65m). Also invested in a cogeneration turbine using briquette-fed boiler steam to strengthen in-house clean energy generation.

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.

• 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.

• 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.

• Fuel switch & steam-to-fuel ratio improvement

  Boiler steam-to-fuel ratio improved from 3.85 to 3.95, saving 697 MT fuel; cogeneration boiler efficiency reduced LSHS boiler operating hours saving 292.39 MT furnace oil. Flash steam recovery systems installed at Mahad, Panoli for boiler feedwater and hot water generation. Switch from natural gas/fuel oil to purchased briquette-generated steam.

• Zero Liquid Discharge & circular water

  100% ZLD implemented at 3 of 5 manufacturing sites. ZLD systems consist of primary treatment, MBR, MEE/MVRE with ATFD, and RO tertiary treatment. 110,334 kL recycled via ZLD in FY24-25 (vs 95,660 prior year). Treated water reused for utilities, cooling tower makeup and gardening.

• Wealth from Waste — solvent recovery & by-product valorisation

  Wealth from Waste programme recovers >90% of process solvents for reuse. Dedicated lab works on waste treatability and conversion of by-products into desired intermediates. Site-level task forces led by Site Heads drive waste reduction, reuse and recycling. 41,353.7 MT recycled and 4,712.2 MT reused in FY24-25 vs total waste 58,844 MT.

• Energy efficiency & process optimisation

  Energy Conservation (EnCon) Committee constituted at corporate level in 2021. FY24-25 initiatives: HT capacitor capacity raised 450→600 KVAR, transformer voltage reduced 415V→405V, high-efficiency pump replacements, automated streetlights, motion sensors, CFL→LED retrofits in flameproof areas, MS-FRP→PP-FRP impeller. Achieved annual operational savings of INR 27.8 million.

• Green chemistry & process redesign

  Developed green manufacturing approach for carboxylation: eliminated toxic reagents (CO gas, n-butyl lithium, palladium); eliminated autoclave and cryogenic systems; yields improved from 33% to 59% (patent filed); Process Mass Intensity reduced from 43 to 18; CO2 emissions cut by 46 kg per kg API produced (46,000 kg saved per 1,000 kg API). R&D was 4.20% of total R&D investment in FY24-25.

• 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.

• Sustainable procurement & supplier ESG audits

  Formal Green Supply Chain and Sustainable Procurement Policy applied to all value-chain partners. 100% of inputs from critical India-based suppliers sourced sustainably. Onsite + offsite ESG/EHS due-diligence audits conducted. Scope 3 Cat 1 (purchased goods) re-calculated with granular methodology in FY24-25; will set Scope 3 SBTi target with FY25 baseline.