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ContentsFY 2020-21 HighlightsWORLD OF PENNAAbout Us2Business Model4Brand Portfolio6Chairman’s Statement8OperationalKey Performance Indicators10Opportunity Landscape14CementRisk Management175.48 MT54%Sales volumeCapacity utilisationSTRATEGIES DRIVING GROWTHGeographic Expansion22Driving Capacity Expansion24Optimising Logistics26Enhancing Profitability28Strengthening Marketing,Branding and Distribution Efforts30Clinker4.56 MMTPA64%Sales volumeCapacity utilisationESG COMMITMENTS ANDACCOLADESEnvironmental Initiatives34Our People36COVID Response37Corporate Social Responsibility38Robust Governance Framework40Board of Directors41Awards and Accolades43STATUTORY REPORTSCorporate Information45Board’s Report46FINANCIAL al 2,476 Crore 480 CroreNet revenue fromoperationsEBITDA14%42% 152.07 CrorePAT159Social 5.53 CroreCSR expenditure5,000 People benefited
GROWTHWITH VALUEAt Penna Cement IndustriesLimited (PCIL), we look atgrowth through the broadprism of real value creation forall stakeholders.Value for our customers, whosechanging aspirations we seek tofulfil. Our brands enable them tothink big and build their dreamswith integrity and commitment.Value for our teams, who aretrained to put their hard workand innovation to delight ourpatrons and enhance ourbrand reputation.Value for our partners, whogrow with us, and create moreopportunities for us to grow.Value for our investors andshareholders who fund ourgrowth by staying invested inus, enabling us to play a keyrole in nation-building, creatingopportunities to benefitmillions of lives.Value for the environmentand planet, which ispart of our overarchingsustainability initiative.Value for the community,who need our compassionand support in their journeyof life, and whose wellbeing iscrucial for our sustainabilityas a business.Growth with value is integralto whatever we do – it is thefoundation of every project westart, every product we launch,every process we design andevery life we touch.
Penna Cement Industries LimitedAnnual Report 2020-21About UsConcrete foundationto prosperPCIL is one of the largest privately held cementcompanies in India, with a significant presence in Southand West India.We are proud to contribute to nation-building through our growing scale andcapabilities for over two decades. Our manufacturing facilities are strategicallylocated closer to markets and our product brands maintain consistent quality focus,validated by international certifications.Over the years, we have also strengthened our distribution network, which hasenabled us to successfully expand in West and East Indian and Sri Lankan markets.Our aim is to expand the reach of our product brands across the country through aphased expansion plan.PCIL at a glance Flagship Company of the PennaGroup Strong business model Experienced Board and strongleadership team Dedicated talent pool of 1,200 employeesVisionValuesTo create sustainablevalue and growth for allstakeholders MissionTo create energised,competitive, innovativeand a winning environmentfor all stakeholders2Focus on customerAct with integrityNurture employeesPursue excellenceCare for safetyCare for community
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsFinancial StatementsState-of-the-art ding unitsPacking units/Bulk terminalsProduct rangePenna ConcreteGuardPortland PozzolanaCement (PPC)Ordinary PortlandCement (OPC)Portland SlagCement (PSC)Operating capacities10 MMTPA7.8 MMTPA 32 MW77 MWInstalled cementcapacityInstalled clinkercapacityCaptive powergenerationWaste HeatRecovery (WHR)Key certificationsCustomer segments ISO 9001:2015 Home owners OHSAS 18001:2007 Real estate developers ISO 14001:2015 Government agencies BIS Large construction firms Sri Lanka Standard Institution (“SLSI”) certification Infrastructure companiesGrowth with value3
Penna Cement Industries LimitedAnnual Report 2020-21Business ModelAn upward moving value curveInputsFinancial capitalProcessesCore activitiesFunds available from the providers of capital, includingdebt and equity and retained earnings, deployed throughproduction processes to generate sustainable value Equity: 133.8 CroreRetained earnings: 1,073.9 CroreDebt: 1,351.94 CroreCapital expenditure: 763.45 CroreManufactured capitalMiningRaw materialpreparationClinkerisationDrying and grindingof raw materialsCementgrindingPacking anddispatchAfter sales,including technicalserviceSales, marketingand distributionOur state-of-the-art infrastructure used to manufacture,warehouse, sell and distribute our brands. Integrated cement manufacturing facilities: 4(Installed capacity: 10 MMTPA)Grinding units: 2Packaging facilities: 4Waste heat recovery: 32MWCaptive power generation capacity: 77MWIntellectual capitalOrganisational knowledge base, systems, know-how,processes and intellectual property, including brands. Popular Brands: 5Premium Brand: 1Human capitalOur talent pool brings together various skills, capabilities,experience and diversity. We provide immense learningand development opportunities to upskill our people andpromote career development of our workforce.Total workforce: 1,245 OHSAS 18001:2007 compliantSocial and relationship capitalMutually beneficial relationships with all our stakeholderssuch as investors, customers, vendors, society andgovernment, which provide us with a license to operatethe business. Total retail touchpoints: 10,000 CSR expenditure: 5.53 CroreKey industry associations: 6Natural capitalRelates to environmental resources on which we dependto generate valueWaste Management: ETP, STP deployed4
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsFinancial StatementsThe quality of products we make, the extent to which we engagewith our customers and the investments that we have made to driveinnovation help sharpen our competitive advantages. We have alwaysbeen proactive in terms of quick adoption of relevant technologies andenhance capacity to leverage economies of scale.Value generatedSupporting managementResearch anddevelopmentInvestorsWe manage all our six capitals efficiently to generate healthy returnsfor our investors. Net Profit: 152 Crore Return on Equity: 12.59% Return on CapitalEmployed (pre-tax):13.61%PeopleWe provide a transparent and encouraging work environment to ourteams and enable them to fulfil their career aspirations. We facilitatetheir growth with investments in relevant trainings. Compliance with OHSAS PENNA LEAD, an in-house18001:2007, preparing formanagement developmentmigration to ISO 45001:2018programme helps upskillmanagers and developpeople management skillsDealers and retailersTalentmanagementFinance and costmanagementThey are valued partners in our growth story. We engage with thisvital chain through numerous programmes and events. We recognisetheir performance and reward high performers. Dealer Network: 3,300 , Retailer Connect: 10,000 CustomersRiskmanagementCorporateManagementWe value our customers’ trust and reward them with world-classquality across our entire product range.Community and environmentGeneralAdministrationStrategic priorities Geographic expansionCapacity expansionOptimising logisticsEnhance profitabilityStrengthening marketing,branding and distribution effortsPlease refer to Page 20for details on strategic prioritiesGrowth with valueWe work towards building strong ties with the communities we workwith. Our focus areas for community welfare are environmentalsustainability, education, gender equality and women empowermentand healthcare and aid in overall social development.CommunityEnvironment ISO 14001:2015, MoEF, PCB, IBM, Touched 5,000 lives Student beneficiaries:DGMS compliance1,500 Optimum utilisation of natural Schools supported: 5resourcesGovernmentWe work closely with the government and related agencies tocomply with all the relevant regulations. We have aligned ourstrategies with the government’s vision for substantial logistics costsaving through Sagarmala Pariyojana, with greater usage of coastaltransportation. Our facilities are in proximity to the coastal areasand we effectively utilise coastal transportation to generate logisticscost savings and stay ahead of the curve.5
Penna Cement Industries LimitedAnnual Report 2020-21Brand PortfolioQuality excellence is embeddedin the products we makePortland Pozzolana Cement (PPC)PPC is manufactured by inter-grinding pozzolanic materials (those containing silica) in specific proportionswith OPC clinker and gypsumPenna PowerSalient featuresApplications Penna Power is speciallyblended by inter-grinding OPCclinker with high quality fly ashand gypsum. This helps create corrosionresistant concrete that reducescrack formation, improvesworkability, inhibits sulphateattacks and reduceshydration heatMarine and hydraulic constructionHousesDamsBarragesHigh-rise buildingsSpillwaysUnderground structuresHydro-power stations and bridgesTechnical aspectsPenna Concrete GuardCompressive strengthMinimum 28 days strength of 330 Kg/CM2 (33 MPa)National standardBIS IS: 1489 (Part 1) 2015CharacteristicsLow heat of hydration and corrosion resistantSalient featuresApplications Latest introduction to ourproduct suite Specifically designed for roofingsolutions Specially formulated and reengineered pozzolona cementto provide high‑performanceconcrete Targeting Individual Home Builders (IHBs),it significantly enhances the strength ofstructures such as foundation, columns,beams and slabs Lower heat of hydration andenhanced flow due to particlefineness make it ideal for use indiverse concrete applications Tamper-proof Biaxially OrientedPolypropylene (BOPP) bagpackagingTechnical aspects6Compressive strengthMinimum 28 days strength of 330 Kg/CM2 (33 MPa)National standardBIS IS: 1489(Part I) 2015CharacteristicsPore refinement of concrete through secondaryhydration process along with low heat of hydrationand corrosion resistant
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsFinancial StatementsPortland Slag Cement (PSC)PSC is manufactured by: Inter-grinding Portland cement with clinker, gypsum and granulated slag; or By blending Ground Granulated Blast Furnace Slag (GGBS) with OPC by means of mechanical blendersPenna SurakshaSalient featuresApplications We produce PSC byinter-grinding Portlandcement with clinker, gypsumand granulated slag to providePenna Suraksha high strengthand durability, along withsulphate resistance and lowhydration heat Water retaining structures such asdams and marine construction Mass concrete worksTechnical aspectsCompressive strengthMinimum 28 days strength of 330 Kg/CM2 (33 MPa)National standardBIS IS: 455 - 2015CharacteristicsHigh strength and durability along with sulphateresistance and low heat of hydrationOrdinary Portland Cement (OPC)OPC is produced by grinding clinker and gypsum.Penna PremiumSalient features At PCIL, OPC is produced inthree varieties of 53-grade, 43grade and 42.5 N Grade 28-daystrength. Penna Premium OPC 53Grade Cement: Provideshigh strength to structuresdue to its optimum particlesize distribution, crystallisedstructure and balancedphase composition Penna Premium OPC 43Grade Cement: Generalpurpose cement, usedmostly in non-structural civilconstruction works. Penna Premium OPC 42.5 N GradeCement: General purpose cement,used mostly in civil construction works.We use this cement for exports toSri Lanka.Applications Penna Premium OPC 53 Grade Cement Runways, high-rise buildings andconcrete roads Pre-cast items such as paving blocks,tiles and building blocks Penna Premium OPC 43 and 42.5 N GradeCement General civil construction Pre-cast items Non-structural worksTechnical aspectsPenna PremiumOPC 53 Grade CementPenna PremiumOPC 43 Grade CementSingha Ultra OPC42.5 N Grade CementCompressivestrengthMinimum 28 days strengthof 530 Kg/CM2 (53 MPa)Minimum 28 days strengthof 430 Kg/CM2 (43 MPa)Minimum 28 days strengthof 42.5 Kg/CM2 (42.5 Mpa)National standardBIS IS: 269-2015BIS IS: 269-2015SLS 107: 2015CharacteristicsHigh strength tostructures due to itsoptimum particle sizedistribution, crystallisedstructure and balancedphase compositionGeneral purpose cementGeneral purpose cementGrowth with value7
Penna Cement Industries LimitedAnnual Report 2020-21Chairman’s StatementGrowing with optimismat the coreDear Shareholders,We are committedto building a bigger,better and strongerorganisation, propelledby our assets andcapabilities that helpus deliver sustainablegrowth and meet theexpectations of ourcustomers, investorsand other stakeholders.8
World of PennaStrategies Driving GrowthThese are undoubtedly challengingtimes, and as I write to you, Indiaand many other parts of the worldare battling the second wave ofthe COVID outbreak. However,given the Government of India’sconsistent focus on supportingeconomic growth through variousstimulus measures and a renewedfocus on infrastructure creation,our country will emerge strongerand more resilient from the crisis.Infrastructure creation, housingand core sector growth helpcreate large-scale employmentopportunities, spurring demand inother sectors. Enhanced Budgetaryallocations in infrastructure andthe government’s emphasison affordable housing augurwell for Penna Cement, andwe are focusing on leveragingthe attractive demand-supplydynamics.We believe the real drivers ofprogress at Penna Cement arethe people of the organisation.Therefore, our constant effortduring FY 2020-21 was to takecare of the safety and wellbeingof our teams. The commitmentand resilience of our peopleensured that we could register acommendable performance evenin such stressful times.Performance at PCILI am happy to share thatFY 2020-21 saw one of ourbest performances ever, as wegenerated the highest monthlysales volume in March 2021,selling 7.57 lakh MT, a y-o-ygrowth of 77% over that ofMarch 2020. Our volumes grewby 5% to 54.81 lakh MT during theyear, while revenues witnesseda jump of over 14% to 2,476Crore, primarily on account ofbetter price realisations. Despitelosing the entire Q1 FY 2020-21 topandemic-induced lockdowns, ourperformance for FY 2020-21 hasbeen commendable and was oneof the best among South IndianCement Manufacturers.Growth with valueESG Commitments and Accolades7.57 lakh MTSales volume in March2021, a y-o-y growth of77% compared toMarch 2020On the profitability front, ourEBITDA stood at 480 Crore, aphenomenal growth of 42%, asour margins improved by 377 bpsto 19.4%. Better pricing and costefficiencies can be attributed tothe increase in profitability. It isto be noted that our port-basedlogistics and WHR plants enabledus to accomplish better costefficiencies.Our strategically located facilitiesenjoy good port connectivity.These assets provide us witha considerable advantage,as logistics costs comprise asignificant cost component incement production. We leverageour locational advantage toutilising port-based logistics tosave high logistics costs, improvemargins and thus enhance ourreturns.During FY 2020-21, wecommenced production at ourBoyareddypalli line-II clinker unitand Karaikal packing terminal andoperationalised BoyareddypalliWHR line-II. As a result, we are ontrack to complete our targetedexpansion of 16.5 MMTPA capacity,which includes northern marketplants by FY 2023-24.Team PCIL deepened engagementlevels with customers, channelpartners and influencercommunity, enhancing loyaltyand brand recall. We also offerpersonal connect and expertadvice for channel and influencernetworks. These played a crucialrole in engaging with the tradingcommunity. In addition, ourmarket research inputs fromthese initiatives enabled the R&Dand technical teams to developStatutory ReportsFinancial Statementsproducts better suited for specificcustomer requirements as ourpremium product ‘ConcreteGuard’.Pan-India playerDuring FY 2020-21, we have furtherestablished our market presencein Maharashtra and Odisha. Aspart of our growth strategy, weare planning to expand in NorthIndia. Our Company’s presencein Central and Northern India willhelp us reach pan-India markets.Initial Public Offering (IPO)I am happy to announce that weare evaluating the option to comeup with an IPO. We are currently atan advanced level of discussionsand will share further details soon.ESG commitmentWe are tracking our ESGperformance regularly and committo stepping up our achievementson this front. We have alreadyadopted a low-carbon pathwayto reduce our footprint and makenecessary investments in cuttingour emissions further. Our Board’sexperience, diversity and effectiveoversight also help protectthe interests of all customers,investors and other stakeholders.I want to conclude with a voteof thanks to my fellow Boardmembers, who steered PCILthrough the pandemic. I alsoacknowledge the relentlessefforts of our leadership teamand our dedicated employees,who proactively executed thestrategies set forth by the Board.Finally, I am also grateful to allother stakeholders, includingcustomers, channel partners,vendors, government, bankers,creditors and above all to you,our valuable shareholders, whocontinue to repose their faith inour capabilities.Stay safe.P. Prathap ReddyChairman & Managing Director9
Penna Cement Industries LimitedAnnual Report 2020-21Key Performance IndicatorsGrowth through the yearsWe are consistently creating value for our stakeholders byunderstanding the changing aspirations of customers, offering themquality solutions and strengthening our balance sheet to fund ourgrowth aspirations.Profit & Loss Account HighlightsThe reporting year saw significant growth of over 14% in our revenue, despite huge operational challenges.Better EBITDA margins on improved volumes and an optimised cost structure majorly contributed to thisenhanced performance.Revenue( in Crore)14.25%EBITDA( in Crore)41.81%Y-O-Y GROWTHY-O-Y 1,776.18308.952016-17 2017-18 2018-19 2019-20 2020-21EBITDA margin377 bps22.84394.34338.362016-17 2017-18 2018-19 2019-20 2020-21(%)Y-O-Y GROWTH22.2019.3814.3315.6113.61%2016-17 2017-18 2018-19 2019-20 2020-2110Return on Capital Employed (RoCE)(pre-tax) Up 530 bps
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsFinancial StatementsBalance Sheet HighlightsWe repaid a portion of our debt during the year,which resulted in lower finance costs and a bettercapital structure. With higher retained earnings, ournet worth also witnessed a growth of over 8% on ay-o-y basis.Earnings per share561.05%( )Net worth8.27%Y-O-Y GROWTH( in Crore)Y-O-Y GROWTH1,157.112.941,014.7011.3710.871,062.84 1,068.71877.206.361.722016-17 2017-18 2018-19 2019-20 2020-212016-17 2017-18 2018-19 2019-20 2020-21Debt( in Crore)8.05%Y-O-Y %Return on Net Worth (RoNW)Up 1125 bpsGrowth with value2016-17 2017-18 2018-19 2019-20 2020-2111
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ATTRACTIVETAILWINDS FORAs one of the leaders in the South Indiancement sector with aggressive forays intoother regions, we closely follow market trendsand refine our strategies to capitalise onemerging opportunities. The cumulative cementconsumption in India through governmentand private consumption is expected to growsignificantly in the coming years, creatingattractive tailwinds for market players withadequate scale and brand reputation.Growth with value13
Penna Cement Industries LimitedAnnual Report 2020-21Opportunity LandscapeTrends that shape our industryAt PCIL, we are cognisant of the trends that make an impact on ouroperations. We focus on the most relevant ones and leverage ourinherent strengths to make the most of these opportunities.Low per capita cement consumptionIndia is the second largest manufacturer and consumer of cement in the world. However, there exists atremendous growth possibility, as our per capita cement consumption (200-250 kgs), around half the globalaverage of 500 001,8001550-1650Per capita cement consumption: Worldwide 02019Note: The figures mentioned are CRISL estimates and arrived at by assessing various data points from source such a Unitednations COMTRADE database (for trade data of cement), US Geological survey, and World population estimate published by theUN population division. Source: UN COMTRADE, USGS, UN data, Industry, Crisil Research.Better outlookIndia’s cement demand isexpected to grow to 550600 MMTPA by 2025 from theestimated consumption of 349MMTPA (FY 2020-21), owing togrowing demand from housing,commercial construction andindustrial construction.14FY 2020-21 cement demand mixSector(%)% of totaldemandHousing and real estate55Infrastructure22Affordable housing13Industrial construction10
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsUrban infrastructureHousing and real estatesuch as Credit linkedsector leading the recovery ProjectsSubsidy Scheme (CLSS), HousingStrong rural demand and higherinvestments in the real estate sectorare expected to drive sectoralgrowth ( 1 trillion by 2023). Fallinginterest rates for home loans todecadal lows, extension of tax sopsfor affordable housing developers,as well as buyers, concessionalstamp duty schemes by variousstate governments are expected toboost the demand for residentialhousing. Additionally, macrofactors such as nuclearisation offamilies, higher participation ofwomen in economic developmentand favourable working classdemographics add significantlyto the demand for housing, in turnincreasing cement demand.Financial StatementsAffordable Rental HousingComplexes (ARHCs) forUrban Migrants/ Poorfor all, Pradhan Mantri AwasYojana (PMAY) and AffordableRental Housing Complexes(ARHCs) are expected to augurwell for the overall residentialsector and especially affordablehousing sector.The pandemic has resultedin reverse migration ofurban migrants/poor. Toaddress the need of thispopulation segment fordecent rental at affordablerates near workplaces,the Ministry of Housing &Urban Affairs has initiatedAffordable Rental HousingComplexes (ARHCs).These residential units willprovide ease of living tourban migrants/poor andgenerate decent demandfor building materials.PMAY (Urban) Update112.5 LakhHouses sanctioned80.2 LakhHouses groundedGovernment’s push for(under construction)infrastructure developmentThe government continues to focuson infrastructure development,which acts as a catalyst forsustainable economic growth.The government’s continuedcommitment towards addition ofmore projects under the NationalInfrastructure Pipeline (NIP) andhigher Budgetary allocation towardsroads and other infrastructureavenues corroborate this fact.Expansion of NationalInfrastructure Pipeline (NIP)7,40048 LakhHouses completed forconstructionSemi-urban and rural marketsto accelerate economicrecoveryThe pandemic-induced disruptionwitnessed more availability ofskilled workforce in semi-urbanand rural areas, as they returnedfrom big cities. Moreover, thepandemic’s impact in the firstwave was relatively lower insemi-urban and rural India, whichsaw good construction demandin these markets, especially forlow-cost housing and repairsand improvements. Favourablemonsoon also boosted ruralcashflow, paving the way forenhanced demand.Projects under NIPFY 2021-22 Budgetaryallocation40,000 Crore For Rural InfrastructureDevelopment FundGrowth with value15
Penna Cement Industries LimitedAnnual Report 2020-21Opportunity LandscapeOther initiativeannounced in the UnionBudget FY 2021-2217,700 Wellness centresto be developed inrural areas under PMAtmanirbhar SwasthBharat YojanaRoad infrastructureRoad network in India spans5.89 million kms, the secondlargest in the world. Indiaconstructed 37 kms of highwayper day during FY 2020-21 and thegovernment plans to expand to40 kms per day. Roadtransportation has graduallyincreased over the years withimprovement in connectivitybetween cities, towns and villagesin the country.FY 2021-22 Budgetaryallocation1.18 Lakh Crore For Ministry of RoadTransport and Highways1,25,000 KmsExpected road length toadd over by FY 2023-24Indian RailwaysDuring FY 2020-21, the Budgetaryallocation for Indian Railways was 1.1 lakh Crore, of which 1.07 lakh Crore comprises capitalinvestments. Emphasis was placedon the Eastern and Westerndedicated freight corridorstargeted to be completed by 2022.Dedicated freightcorridors (DFCs)1.1 Lakh Crore Estimated total cost withplanned completion by2022Addition to the capacity of IndianRailways and improvement inhandling and storage facilities arelikely to bring about significantimprovement in cement logisticscost and time.Ports, shipping and waterwaysCargo volumes have improved by19% CAGR for inland waterways,over the past 5 years, withenhanced connectivity of ports tohinterland, optimising costs andtime of cargo movement throughmulti-modal logistics solutions.Water transport serves as costeffective solution, as comparedto other modes. This serves as animportant edge, especially in caseof cement industry, where logisticsform a substantial element ofoverall product costs. Companiesusing port-based logistics tend togain significantly with progress ininland maritime development.Focus on South IndianmarketThe pace of infrastructuredevelopment inSouth India has beenphenomenal. Some ofthe big upcoming roadinfrastructure projectsinclude 3,500 km of nationalhighway projectsin Tamil Nadu at aninvestment ofJ1.03 Lakh Crore 1,100 km of nationalhighway in Keralaat an investment ofJ65,000 Crore, includingMumbai-Kanyakumaricorridor. 464 km RaipurVishakhapatnamhighway to becommenced fromFY 2021-22 277 km Chennai-Salemcorridor also to becommenced fromFY 2021-22 260 km NE-7 orBengaluru-Chennaiexpressway (BCE)These factors augur well for thedevelopment of cement sectoras a whole. Established playerslike PCIL are natural beneficiariesto the trend. We have developedstrategies to leverage ourstrengths and benefit the mostfrom the opportunities these trendbring.Please refer to page 20 fordetailed discussion on ourstrategies16
World of PennaStrategies Driving GrowthESG Commitments and AccoladesStatutory ReportsFinancial StatementsRisk ManagementInsightful risk managementand mitigationWe undertake robust risk management strategies at PCIL as a partof our comprehensive risk management framework. Our Board ofDirectors, through a well-qualified Risk Management Committee (RMC),oversees risk management and mitigation.Risk management frameworkOur risk management framework involves identification of key risks, assessment of their potential impactand formulation of an appropriate mitigation plan for the identified material risks. The risks and mitigationmeasures are regularly reviewed and updated for their relevance and efficacy.Identificationof risksGrowth with valueImpactassessment onbusinessStrategiserisk mitigationmeasuresReview ofthe risks andmitigationmeasures17
Penna Cement Industries LimitedAnnual Report 2020-21Risk ManagementRisks and criticalityMitigation measuresOperationalrisksCustomer serviceRisks related to poor customer service mayaffect the brand negatively – Material Sales networkRisk of inability to grow/sustain sales networkmay affect our ability to meet targets Material Cordial relationship with network participants Offer competitive pricing Comprehensive market assessmentInvestment in ERP tool Training the customer service teams to ensure promptdeliveries and grievance redressal Regular feedback collected from customers by thesales teams Brand building exercises Setting up a reliable network of alternative suppliersSupply chain interruptionsthrough effective diversification of supply chain andRisks related to discontinuation of supply by keysupplier partners could lead to disruptions inreducing over-dependence, enabling us to continuesmooth functioning of the production processregular manufacturing process - CriticalHuman resourceRisk related to inadequate/under-skilledresources resulting in a loss of businessopportunities Unique value proposition to employees, open anddynamic work atmosphere, growth opportunities,rewards and recognition, learning and developmentand leadership development programme; help attractand retain skilled talentCredit risk managementRisk related to losses arising due to nonpayment by customers, resulting in losses Material Robust customer engagements, including marketstanding, previous experiences, financial strength Continuous monitoring of business performance suchas sales, margins, claims, deductions, payment delaysQuality assurance threats Dedicated Quality Assurance teamRisk related to products of sub-standard quality Strong quality control processesreaching customers – Material International certifications vindicate quality focusInformation security Risks arising on account of unauthorised breach of our information network, causing interruption to normal functioning of the systems – MaterialEnvironment, climate, as well as employeehealth and safetyRisks related to climate change, includingnatural calamities, other environmentaldisruptions and employee health and safety Material18Robust IT security systemState-of-the-art IT assetsEffective software systems Various product and site certifications ensure thehighest levels of health and safety Increased use of renewable energy, better water andwaste management Reduction of carbon footprint with regular plantationdrives
World of PennaStrategies Driving GrowthESG Commitments and AccoladesRisks and criticalityStatutory ReportsFinancial StatementsMitigation measuresStrategicrisksGeopolitical and social instabilityRisks stem
Consolidated 114 Notice 159 Contents FY 2020-21 Highlights 5.48 MT Sales volume 2,476 Crore . Penna Cement Industries Limited 2. Key certifications ISO 9001:2015 OHSAS 18001:2007 ISO 14001:2015 . By blending Ground Granulated Blast Furnace Slag (GGBS) with OPC by means of mechanical blenders Penna Suraksha Portland Slag .
