Ipca Laboratories 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.

Company has invested ₹161.06 crores in setting-up solar/wind renewable energy power plants at Solapur (Maharashtra), Patan (Gujarat), Khandwa (M.P.) and Athal (Silvassa) with total capacity of 36.57 MW till March 31, 2025. Includes 20 MW solar power plant at Khandwa, Madhya Pradesh feeding captive consumption. During FY24-25 these power plants generated 319.81 lac (31.98 million) kWh. Nearly 10% of Company's electricity requirement is supported by Company's own captive solar plants. Company also amended MoA to enable setting up of captive power generation projects from conventional and renewable energy sources.

The Company does not currently disclose any carbon removals (DAC, BECCS, biochar, afforestation) or offset retirement programme. Mitigation strategy is focused on operational decarbonisation (renewable PPAs, fuel switching to biomass and natural gas, energy efficiency) rather than removals or offsets. Backward integration via napier grass cultivation for boiler pellet fuel is mentioned but classified as biomass fuel switching rather than as carbon removals.

• Fuel switching: biomass and piped natural gas replacing furnace oil & coal

  Implemented fuel switch from furnace oil to biomass pellets at Athal (annual reduction of 4,037 tCO2) and from Light Diesel Oil to natural gas at Piparia (275 tCO2/year). Strategy includes shifting to piped natural gas in place of furnace oil and to biomass/briquette fuel in place of coal across operations. Backward integration into napier grass cultivation for in-house pellet manufacturing supports biomass fuel sourcing.

• Energy efficiency: chillers, VFDs, LED, motor upgrades

  Multiple energy conservation initiatives including improved chiller/brine plant efficiency, VFDs on higher HP pumps, LED lighting upgrade, replacement of old motors with energy-efficient ones, motion sensors, replacement of reciprocating air compressors with energy-efficient ones, replacement of manual fired boiler with Petcock fired boilers, compressed air leakage plugging, plate heat exchangers for hot water, thermo conductive liquid for chillers, switchover from WHAP to screw chillers, and RECO system on boilers saving 9-10% fuel.

• Captive renewable electricity generation (36.57 MW solar/wind)

  Owned-and-operated renewable energy projects totalling 36.57 MW across Solapur, Patan, Khandwa and Athal supply roughly 10% of the Company's electricity needs. Plans to expand captive solar capacity following MOA amendment authorising power generation as a business activity.

• Zero Liquid Discharge and water recycling at 15 of 17 plants

  ZLD mechanism implemented at 15 of 17 manufacturing plants using RO/MEE/ATFD/DAF/MVRE technologies. At 10 plants, ETP recycled water is used in utilities and STP treated water for gardening. Rain water harvesting and condensate recovery reduce freshwater demand. Reduces both water footprint and embedded energy of water treatment/discharge.

• Hazardous waste co-processing

  Larger quantities of hazardous waste sent to cement plants for co-processing rather than landfill. Target of 35% hazardous waste through co-processing by 2030; currently at 19%. 6,940 tonnes co-processed in FY24-25 (up from 2,752 tonnes in FY23-24). E-waste sold to authorized vendors; plastic waste fully recycled in compliance with EPR.

• Manufacturing energy efficiency

  Multiple efficiency measures: LED lighting upgrade across manufacturing sites; energy-efficient AC motors replacing traditional ones; Variable Frequency Drives (VFDs) installed; optimised cooling tower operations with temperature controllers; installation of RECO system on Boiler with feedwater temperature increase from 40-50°C to 100-110°C achieving 9-10% fuel savings (~125 kg propane/day); use of eco-friendly low-GWP refrigerants in split AC units.

• Fuel switching - biomass and natural gas

  Fuel switch to biomass at Athal: replaced furnace oil with biomass pallets, resulting in annual reduction of 4,037 tCO2. Fuel switch to natural gas at Piparia: transitioned from Light Diesel Oil (LDO) to natural gas, achieving annual reduction of 275 tCO2. Replacement of manual fired boiler by efficient Petcock fired boilers. Use of biomass briquette fuel in place of coal.

• Zero Liquid Discharge water management

  Implemented Zero Liquid Discharge (ZLD) mechanism at 15 of 17 manufacturing plants in India using RO, MEE, ATFD, DAF and MVRE technologies. ETP recycled water is used in utilities; STP treated water used for gardening. 10 plants have full ZLD; 5 plants have primary/secondary/tertiary treatment per PCB requirements; 2 plants send treated water to CETP.

• Sustainable procurement of critical suppliers

  Self-Assessment Questionnaire floated to critical Raw Material (RM) and Packaging Material (PM) suppliers to evaluate compliance with the Sustainable Procurement Policy, with target of 100% critical supplier compliance by 2030. Signed acknowledgment copies of Supplier Code of Conduct being collected. About 29% of inputs sourced from MSMEs/small producers and 79% from within India, supporting localised low-emission supply chain.

• Hazardous waste co-processing in cement kilns

  Larger quantity of hazardous waste is sent to cement plants for co-processing (substitutes fossil fuel and raw materials in cement production), reducing both upstream and downstream emissions. Target to dispose 35% of hazardous waste through co-processing by 2030; current rate 19%. Plastic waste fully recycled (1,339 MT); e-waste and battery waste routed to authorised recyclers.

• Sustainable supply chain assessment

  Company is rolling out Sustainable Procurement Policy with critical Raw Material (RM) and Packaging Material (PM) suppliers. Floated Self-Assessment Questionnaire (SAQ) and collecting signed Supplier Code of Conduct (SCOC) acknowledgments. Target: 100% of critical suppliers compliant with sustainable procurement policy by 2030. Currently assessing suppliers on business ethics, human rights, social impact, safety and environment.