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CSR 2012-2013

STERLITE TECHNOLOGIES LIMITED sterlitetechnologies.com

Volume - 1

EVERY HOME ON THE PLANET

THE POWER OF SUSTAINABILITY


Sustainability at Sterlite Introduction Chairman’s Letter Approach to Sustainability Stakeholder Engagement

01 Company Profile

Corporate Overview Awards & Recognition

08

Governance, Ethics and Compliance Corporate Governance Risk Management Compliance (Code of Conduct) Ethics

14 Employees

Talent Management Employee Engagement Diversity Work/Life Balance

26

Health, Safety and Environment Program Overview Environmental Performance Health & Safety Performance

32 Product Responsibility

Quality & Safety R & D and Design Materials Use Product End-of-Life

42 Responsible Sourcing

Supplier Management Vendor Interaction Product Packaging & Transportation

48 Community Support 52

Sterlite Tech Foundation & Employee Volunteering Various Community Initiatives Health Empowerment


INTRODUCTION This is Sterlite's first stand-alone Corporate Sustainability Report. Going forward we will be aligning our Sustainability Reporting Calendar with our Financial Calendar and future reports will continue to be published annually with the Annual Report. This Report will help understand how and where we operate and our strategy and approach to sustainable development; see the specific management systems that we have in place to manage our operations and to minimise risks, and highlights the manner in which we establish and maintain close, responsive links with our stakeholders in our sustainability journey. In 2012, Sterlite evolved its sustainability strategy and we have structured our report to reflect this.


FROM THE CHAIRMAN’S DESK EMBRACING CHALLENGES, CREATING LONG-TERM SUSTAINABILITY


FROM THE CHAIRMAN'S DESK

“Key to sustainability is understanding People's needs and aspirations.” I am very pleased to introduce FY2012-13 Sustainable Development Report, detailing our approach to sustainability. The Vedanta values have always reflected my desire for sustainability to be a foundation of our business strategy and I subscribe to the notion that business will succeed when society also thrives. Key to sustainability is understanding people's needs and aspirations. It is important that we understand what each of our stakeholder groups values and deliver the same in a spirit of mutual trust. This provides a clear path to a sustainable future, where our success and growth will deliver positive outcomes for our stakeholders. We have aligned our governance and stewardship as per the international standards related to environmental, economic and social impacts of all business decisions and processes.

RESPONSIBLE STEWARDSHIP Responsible stewardship is the foundation on which we build our business and has been the key to our sustainable development journey. We subscribe to continuous improvement and have seen positive developments within the Group in water and energy use.

BUILDING STRONG RELATIONSHIPS I am pleased to report continued active engagement with our external stakeholders, including the communities, government representatives, nongovernment organisations and our providers of capital.

In this journey of growth through Excellence – our core value – the most important stakeholders have been our employees. The success that we have achieved and the growth that we have seen, is in no small measure the result of their contribution and the guidance provided by our able leadership team. In line with this, we have initiated several projects that help employees maintain their work-life balance, while helping them establish a secure basis for their future through training & development.

I am happy that Sterlite has continued to make a difference to the lives of several lakh people through our numerous community development programmes, which you can read about further in this report.

STRENGTHENING OUR APPROACH TO SUSTAINABLE DEVELOPMENT

In the coming year, I look forward to continuing our sustainability journey and, by implementing our sustainability model and framework, I expect Sterlite to demonstrate sustainability in practice.

I am very happy with the progress we have made this year in advancing our sustainability strategy. The prime driver of our strategy has been the establishment of Sterlite Tech Foundation (STF) to address the needs of the local underserved community in and around our plants/office premises by making quality interventions in the areas of “Education, Health, Empowerment and Improving Livelihoods, Community Development and Social Infrastructure”. Here, our role is that of a proactive enabler and partner, which entails mapping the needs of the community and acting upon it in collaboration with the community, state government and local NGOs thereby empowering them. Further, the three core pillars supporting our sustainability strategy are responsible stewardship, building strong relationships and adding and sharing value. Our goal is to be recognised internally and externally as the global benchmark company in sustainability performance.

ADDING VALUE

THE FUTURE

Anil Agarwal Chairman, Board of Directors Sterlite Technologies Limited

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A RESPONSIBLE AND CARING CORPORATE

OUR APPROACH TO SUSTAINABILITY


APPROACH TO SUSTAINABILITY

Sterlite's commitment extends beyond business. We aim to develop our telecom and power businesses with the objective to provide attractive shareholder returns. We conduct our activities in a socially and environmentally responsible manner with the objective to enhance value for the community. The principle of sustainable development is fundamental to this approach. It requires us to monitor and reduce social and environmental risks, improve resource utilisation, minimise pollution and forge partnerships with local communities. We achieve this through a balanced mix of regulatory compliance, business practices, audits, certifications and employee involvement. At all our manufacturing facilities, we ensure that operations are carried out with a key focus on the following: Implementing measures to reduce pollution, emissions, waste and energy consumption. Exploring the use of environment-friendly technologies and materials within our research, development and manufacturing processes. Preventing/minimising impact frompollution and occupational health and safety risks. Conserving natural resources. Recycling and creating innovative recycling opportunities. Providing a safe work environment for employees and safe living conditions for our neighbours.

REGULATORY COMPLIANCES Sterlite ensures that its operations comply with all applicable laws. Some of these include national-level regulations such as Environmental Protection Act, Prevention of Water Pollution Act and Prevention of Air Pollution Act. Besides, the Company ensures that it complies with and strives to exceed state-level regulations on environmental protection and pollution prevention.

CERTIFICATIONS ISO 27001:2005 certification for all operating units: This highest internationally accepted certifiable standard for Information Security Management Systems (ISMS) covers Sterlite's entire business operations, Information Technology and corporate risk group services across locations in India. Sterlite's ISO 27001:2005 certification is applicable to domains such as: information security policy, asset management, human resources security, physical and environmental security, communication and operational management, among others.

BUSINESS PRACTICES Sterlite is also committed to providing a healthy work environment for employees and associates through controlled plant operations and continuous improvement in our processes, products and services. Sterlite integrates environment, health and safety (EHS) considerations into business planning and decision-making. A robust integrated management system is created for process and operational changes to assess the suitability, adequacy and effectiveness of our efforts on environment, health and safety. This ensures that operations are carried out under adequate supervision through the use of necessary personal protecting equipment (PPE) as well as an adherence to safety precautions. We also conduct periodic environmental audits and progress reviews.

SUSTAINABLE MANAGEMENT IN PRACTICE To underpin our sustainability framework, robust processes are now in place to support its execution in all new business ventures. The key standard that dictates our activities and behaviours is the Management Standard – New Projects, Planning Processes, etc. Additional standards supporting this approach include the Acquisitions, Divestment and Joint Ventures Due Diligence technical standard. Applying the Standard is mandatory for all new projects and it prescribes that: 1. Any new project complies with our Sustainability programmes and national, regional and local regulatory requirements; 2. Sustainability-related matters are given equal priority to other business functions when considering new projects; 3. A commitment to continual improvement is adopted as part of the project concept, that takes into account positive and negative impacts and direct and indirect impacts; 4. Assigned committees and senior management are engaged in considering all sustainability aspects of new projects (including alternative solutions) and meet the requirements of the Leadership, Responsibility and Resources Management Standard; 5. Sustainability matters are considered for the full lifecycle of the project, including post-closure and rehabilitation, and design decisions shall be taken accordingly; 6. Consultation and feedback are obtained from stakeholders at the earliest opportunity on how sustainability issues associated with the project are being considered and prioritised;

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APPROACH TO SUSTAINABILITY

Our sustainability standards also ensure that as part of the Planning/ Feasibility stage, sustainability due diligence is integrated into the wider due diligence around new projects and where we are contemplating an acquisition (including commercial, financial and legal). The New Projects Standard begins with the requirement for a sustainability risk screening exercise as part of the Planning process. A new project or project expansion is expected to go through a number of decision 'gates' such as project definition, prefeasibility, feasibility, concept, design and procurement. Sustainability is integrated into each decision gate and taken fully into account, along with a full sustainability risk assessment. If an identified sustainability risk is regarded as being potentially significant to the success of the project, further analysis is undertaken.

EMPLOYEE INVOLVEMENT Sterlite employees are active partners in all of our sustainability initiatives, volunteering their time and giving generously. For instance, we stimulate EHS awareness among all employees and associates through periodic training programmes and increasing environmental awareness within our plants and facilities. We keep abreast with the latest international practices, codes and standards, which are adopted wherever applicable.

KEY ACHIEVEMENTS – ENVIRONMENTAL PROTECTION Following are the special tasks, which we have completed towards environment protection: 1. ISO 14001:2004 (EMS) certification: Successfully completed the ISO 14001:2004 certification in the month of April, 2008. 2. Conservation of Natural Resources: Start monitoring and control uses of electric energy and water consumption. 3. Establish the scrap disposal matrix: Safe disposal method of waste/hazardous material. 4. Awareness towards environment protection: Training program/display board has been conducted/displayed for conservation of natural resources (e.g water, electricity & depletion of resources). 5. We have also contributed in the areas of green belt development wherein we under took plantation of approximately 1,000 trees in our facilities. 6. Abolished use of paper cups and plastic bags (Food is now being served through containers).

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Enriching the community Sterlite undertakes various activities based on an assessment of needs and aspirations of the community. The Company has allocated 1% of its annual net profit towards these projects. Environment, healthcare, education and the development of the community are integral to its ideology. Our sustainable development initiatives span villages in the remotest locations in Maharashtra and have strong foothold in cities like Mumbai, Delhi and Pune as well as the Union Territory of Dadra and Nagar Haveli. In all, Sterlite's sustainability practices are of practical business benefit, such as cost savings on energy, improved packaging designs, optimisation of logistics, increased employee satisfaction & retention, customer loyalty. This Report provides a summary of our views towards sustainability and a brief summary of our focus areas with links to each of the key sections of our report: GOVERNANCE, ETHICS AND COMPLIANCE– this means operating in an ethical manner and in accordance with the laws where the company operates. EMPLOYEES– providing an excellent workplace for employees. ENVIRONMENT, HEALTH AND SAFETY– reducing the company's environmental impact and ensuring health and safety of staff. PRODUCT RESPONSIBILITY– integrated and sustainable development. SUPPLY CHAIN– working to make our suppliers 'greener'. COMMUNITY SUPPORT– providing volunteers, donations, scholarships, and sponsorships to our community to help it prosper.


STAKEHOLDER ENGAGEMENT

Stakeholder engagement equips us to proactively build trust in our business, identify opportunities and mitigate risks by understanding and effectively responding to concerns and issues.

The Directors as a whole keep abreast of shareholder sentiment through regular detailed investor relations reports made to the Board. Communities: We operate in many countries that are developing rapidly and have unique requirements around community support. To drive our community relations and programmes we have a substantial team, including community field officers, working in conjunction with field co-ordinators. Our team works to develop meaningful projects in partnership with local governments and local NGOs. To understand and manage site specific issues we have developed grievance procedures where issues of concern can be raised in a non-confrontational environment. Human Rights: At Sterlite, upholding people's fundamental rights is core to our business. We are committed to using international best practice and our approach is guided by international standards. We are working hard to grow our business and to support economic development in the countries in which we operate and this cannot come at the expense of the human rights of people.

ADDING VALUE TO OUR STAKEHOLDERS We are further developing our stakeholder engagement processes – the evolution of our stakeholder engagement is premised on the notion that those groups who can affect or are affected by our goals and activities should be given the opportunity to be consulted in the development of decisions that affect them, including our employees, the communities surrounding our operations, host governments, our industry, civil society (including NGOs), shareholders and lenders. A participative approach to dialogue and responsiveness strengthens our business and deepens the positive impact of our activities. Further, we have much to learn from those that understand the changing nature of the sustainability of the planet

By Adding and Sharing Value, we are working to enhance the value we can bring to each of our stakeholder groups. All our commodities and our energy generation provide some of the key building blocks in the modern world, however, our production alone is not a complete measure of our success. We aim to add meaningful value to the communities in which we operate, the lives of our employees and to each of our stakeholders. Given that a significant percentage of our business has operations in socioeconomically disadvantaged regions, we recognise that real development is needed.

OUR STAKEHOLDER GROUPS Shareholders: The main channels of communication with the investment community are through the Chairman, Whole-time Director, Chief Executive Officer, Chief Financial Officer, and Investor Relations team.

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A GLOBAL SOLUTIONS PROVIDER FOR THE TELECOM & POWER INDUSTRY


CORPORATE OVERVIEW

Sterlite Technologies Limited facilitates progress across the planet, through connectivity - by making it faster, easier, and more cost-effective (for service providers) to build power and telecom networks. Sterlite does this through its suite of products, solutions and infrastructure. Sterlite's success comes from recognising and capitalising on market transitions before they occur.

GLOBAL SOLUTIONS Sterlite Technologies Limited is a leading global provider of transmission solutions for the telecom and power industries. Equipped with a product portfolio that includes optical fibers, telecommunication cables, solutions for system integration, fiber connectivity solutions, neutral networks, power cables and a comprehensive power conductors, optical power ground wire and EHV/HV power cables portfolio, Sterlite's vision is to "Connect every home on the planet". Sterlite is also executing multi-million dollar power transmission system projects, panIndia. In November 2010, Sterlite joined hands with Jiangsu Tongguang Communication Co., Ltd. (TGCl) – a leading provider of total transmission solutions – to form a joint venture company Jiangsu Sterlite Tongguang Fibers Co. Ltd. (“JSTFCL”) in Haimen, Jiangsu Province, China to manufacture, market and distribute optical fiber used in the production of optical fiber cables. Positioned strongly in high growth geographies and high growth industries, we are recognised as one of the most cost-effective manufacturers in the world. This gives us a competitive edge to effectively address sales in our chosen focus markets. We have also invested in several projects for backward integration of our manufacturing processes. This is in line with our philosophy of making it easier, faster and more costeffective for service providers to build telecom and power infrastructure. Today, Sterlite is the only Company offering products for extra high voltage power transmission and extra high speed data transmission. Our products are suitable for use in Telecom, Power, Defense, MSOs, CATV, Aviation, Oil & Gas, Broadband & Transportation Sectors. Further, Sterlite has been awarded three projects for building power transmission systems (lines and substations) in India, as a Developer, on a Build Own Operate Maintain ("BOOM") basis. We share a common lineage with Vedanta Resources Plc, a globally diversified natural resources group.

SCOPE OF SERVICES Application assessment Product/solution engineering & design Product/solution optimisation Product manufacture & supply Post-supply technical support Product installation training programs

RESEARCH, PRODUCT ENGINEERING & DEVELOPMENT In-house expertise in application assessment, design and product development. Designs customised to perform in specific power & telecom applications - low loss, high ampacity, anti-corrosion, microduct, bend insensitivity, etc. Design validation by leading transmission experts in India and overseas.

KEY DIFFERENTIATORS Positioned strongly in high growth geographies, in high growth industries India market leadership with growing global presence. Fully integrated manufacturing facilities & control over the entire value chain. Global scale of operations. Sustained focus on technology & product design. Effective use of IT based systems for process & operational efficiency. Highly qualified talent pool.

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TELECOM BUSINESS

Data Cables: Sterlite offers a comprehensive range of data cables for a variety of applications in structured cabling. Supported by our own manufacturing facility, Sterlite's range of data cables delivers superior performance in data transmission and performance reliability. From order inception through final audit, Sterlite Data Cables is committed to unequaled customer satisfaction. Fiber Connectivity Solutions: Sterlite's fiber connectivity solutions offer an end-to-end range of connectivity products suitable for telecom networks. The solution suite comprises centre office products to distribution and last mile network. Sterlite's comprehensive solution enables fast installation, is highly scalable and requires low skills to install.

In the Telecom Segment, Sterlite provides telecom operators in India and across the globe with a range of connectivity products like optical fiber, optical fiber cables, and structured data cables along with connectivity solutions. To maintain our technological edge, Sterlite has prioritised R&D and product development amongst its key focus areas. The company has a strong focus on product design and technology, spearheaded by the 'Sterlite Center of Excellence'. Till date 46 patents have been granted in USA, EU, India & China. Additionally, over 100 patent applications have been filed globally.

TELECOM PRODUCTS & SOLUTIONS Optical Fibers: One of the largest integrated manufacturers of optical fibers in the world, Sterlite offers a complete range of endto-end optical fibers for a variety of applications ranging from long haul, regional, metro, access and FTTx networks. Supported by a fully integrated manufacturing facility and a dedicated R & D Center, Sterlite's range of optical fibers deliver superior performance in data transmission and performance reliability. Optical Fiber Cables: Sterlite's products portfolio caters to high bandwidth applications and FTTx. Anticipating a concerted focus by the Ministry of Telecommunications, India, to promote broadband, Sterlite introduced Ribbon Optical Fiber Cables to India, which are widely used in the development of access networks. Sterlite has also introduced unique cabling products for residential installations, installation under water, utilities and for high-security defense purposes.

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System Integration: Sterlite undertakes application and systems integration for a business with offerings across the Telcom, IT & Power sector. We aim to seamlessly integrate the old and new systems while applying new, scalable technologies and solutions. Sterlite helps service providers to capture the fastest time-to-revenue with its deep domain expertise and the breadth of consulting services, offerings on best-in-class multivendor technology and software platforms to build future-proof networks.

NEUTRAL NETWORKS We look at connectivity in the realm of high-speeds, which plays an integral role in bringing the world together. Where copper cabling doesn't do the job anymore, fiber optic cables are all set to revolutionise our outlook towards technology. Fiber optic technology allows us to transmit data over longer distances at high speeds. Sterlite offers Fiber-To- The- Home (FTTH) technology, which brings this high-speed connectivity right into your home. It provides the 'Last Mile' of the network, which will be leased out to the top telecom providers of India. Besides enabling you to work online at speeds that you deemed impossible, you will be able to enjoy the benefits of high-speed broadband, superior quality HD TV, 3D gaming and TV, movieson-demand, high-tech security surveillance systems and so much more. Your home will be so intelligent and intuitive; you'll wonder how you ever lived without it.


POWER BUSINESS

Sterlite provides power transmission & distribution companies a holistic one-stop window for assessment, development & implementation of solutions for their power transmission & distribution (T&D) networks. T&D Network Assessments Assessment of existing & potential power demand. Technical analysis. Assessment of suitable solution options. Development T&D Solution Development T&D Solution Testing Implementation T&D Solution Manufacture, Inventory Management & Supply Technical Support & Service

POWER PRODUCTS & SOLUTIONS Power Conductors: Supported by a fully integrated manufacturing facility that converts ingots to bare overhead conductors, Sterlite's range of standard and custom-designed power solutions deliver superior performance in transmission and performance reliability. Power Cables: Sterlite's single Integrated Power Cables facility at Haridwar, manufactures and supplies MV, HV and EHV cables. The plants have complete facilities for rod rolling, wire drawing, heat treatment and stranding to ensure precise tolerances to all international standards and stringent specification. A technology upgrade review is periodically undertaken to keep abreast with the latest manufacturing technology. Our facility has state-of-the art NABL approved in-house laboratories. OPGW Cables: Since the past two decades, Sterlite has developed technical expertise in fiber optic cables and proven its capabilities in the manufacture of energy efficient bare overhead power conductors. Sterlite has integrated these core strengths in its comprehensive OPGW solution. Optical Fiber Composite Ground Wire (OPGW) is a revolutionary solution that enables synergies between efficient power distribution grids and high speed optical fiber based SCADA networks, giving power utility companies the unique capabilities of a telecom carrier or service provider. Rods and Accessories: Sterlite manufactures top quality rods and accessories that complement our product lines. We provide an extensive range of accessories such as Suspension sets, Tension Set Assemblies, Vibration Dampers, Joint Boxes and

Bonding Clamps etc. to address application needs in various markets. We are striving to become a complete solutions provider for all your power application needs.

POWER INFRASTRUCTURE In the next decade, India needs to spend over Rs. 1400 Billion on transmission systems and Sterlite believes the BOOM model will be the preferred model and that it is well positioned to become a market leader in this sector.

BUSINESS OVERVIEW Sterlite Grid Limited is a fully owned subsidiary of Sterlite Technologies Limited. The Company is executing multi-million dollar power transmission system projects, pan-India via its fully owned subsidiary companies - East-North Interconnection (ENICL), Bhopal-Dhule Transmission (BDTCL) and Jabalpur Transmission (JTCL). For these projects, Sterlite would undertake the designing, financing and construction and maintenance of the transmission systems for concession periods ranging from 25 to 35 years, ie, on a BOOM basis. These transmission systems would evacuate and transmit power through a network of about 2200 km of transmission lines and 2 substations; in the states of Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, West Bengal, Bihar and Assam.

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GLOBAL PARTNER China | India | Netherlands | Russia| South Africa | Turkey | UAE | UK | USA | Vietnam

YOUR GLOBAL PARTNER

INTELLECTUAL PROPERTY

With offices in 10 countries, Sterlite always has a relationship manager who is a mere phone call away, to understand your growth aspirations and to explore areas where we can add value to your business.

46 patents granted in USA, Europe, India & China.

We have also partnered with reputed global logistics service providers to ensure that consignment delivery processes are streamlined.

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RECENT AWARDS V&D100 2012 (Top Telecom Cables Company in India) National Telecom Award (Fastest growing System Integrator)2012 EMC2 Business Transformers Award 2012 Amity Telecom Awards For Excellence 2012 (Top Telecom Cable Company of the Year) LACP 2011/12 Vision Awards (Gold Award for Sterlite Technologies Annual Report 2011-12) ISO 27001:2005 certification for all operating units EMC2 Cloud Pioneer Awards 2011 Top 100 CISO Award 2011 Asia's Best Employer Brand Awards 2010 Deloitte Technology Fast 500 Asia-Pacific Awards 2009 Web Award 2009 Thomson Reuters Innovation Award 2009 CIO 100 Award 2008 for innovative use of IT in manufacturing. TEMA National Telecom Award 2008 - Excellence in Exports IEEMA Award for 'Best New Product 2007' for AL-59 Alloy Conductors Dun & Bradstreet Award for Corporate Excellence 2007


A STRONG CULTURE OF

GOOD GOVERNANCE & COMPLIANCE


CORPORATE GOVERNANCE

Our sustainability framework focuses on several aspects of managing risk and demonstrating compliance with legal requirements and best practice. It is a vital part of all the phases of our project lifecycle – the way we conduct environmental and social impact assessments, our regulatory compliance and risk management, the operation of our health, safety and environmental management systems, the way we manage water and energy use, our carbon footprint and our work on biodiversity management planning. It also incorporates our approach to land management, waste management and air quality management.

I. PHILOSOPHY OF THE COMPANY ON CODE OF GOVERNANCE Corporate Governance represents the value, ethical and moral framework under which business decisions are taken. The investors want to be sure that not only is their capital handled effectively and adds to the creation of wealth, but the business decisions are also taken in a manner which is not illegal or involving moral hazard. All actions and strategic plans are directed towards delivering value to all stakeholders, as well as conform to the highest standards of corporate behavior. Your Company perceives good corporate governance practices as a key to sustainable corporate growth and long-term shareholder value creation. The primary objective is to develop and adhere to a corporate culture of harmonious and transparent functioning, increasing employee and client satisfaction and enhancing shareholders' wealth by developing capabilities and identifying opportunities that best serve the goal of value creation.

STRATEGIC SUPERVISION The Executive Committee is composed of the senior management of the Company and operates upon the directions of the Board at the company level.

All actions and strategic plans are directed towards delivering value to all stakeholders, as well as conform to the highest standards of corporate behaviour. Excellence is our only core value.

II. BOARD OF DIRECTORS The Board of Directors consists of two Whole-time Directors and four Non-Executive Directors. Three Non-Executive Directors are also Independent Directors. Mr. Anil Agarwal is non-executive Chairman. In the absence of Mr. Anil Agarwal, the meetings are chaired by Mr. Pravin Agarwal, Whole-time Director. The Board composition is in compliance with the requirements of Clause 49 I (A) of the Listing Agreement, requiring that not less than half the Board of Directors should consist of Independent Directors. Your Company is continuously striving to attain excellence in products, facilities, packaging and transportation, accompanied by excellent documentation and backed by client service. Similar to our personal performance monitoring, wherein our focus is towards being outstanding or excellent, all our products and business processes need to be 'Excellent' - first in our own perception, and then in our customers' perception. So, as we move forward, 'Excellence' will be the unique value for Sterlite which drives us, and against which we measure ourselves.

The Board of Directors occupies the topmost tier in the governance structure. It plays a role of strategic supervision that is devoid of involvement in the task of strategic management of the Company; The Board lays down strategic goals and exercises control to ensure that the Company is progressing to fulfill stakeholders' aspirations.

STRATEGIC MANAGEMENT

EXECUTIVE MANAGEMENT

The function of the Management Committee is to execute and realise the goals that are laid down by the Board and the Executive Committee at the business unit level.

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BOARD OF DIRECTORS

Anil Agarwal

Pravin Agarwal

Non-Executive Chairman

Whole-time Director

Anil Agarwal founded the Sterlite Group in 1976 and has been overseeing its operations since its inception. He is the Executive Chairman of Vedanta Resources PLC and also the Chairman of Sterlite Industries (India) Limited. He has over three decades of experience in business strategy, general management and commercial matters.

Pravin Agarwal has been closely involved with the Sterlite Group’s operations in India since its inception and has been instrumental for the growth of Telecom and power businesses. His rich experience in general management and commercial matters spans about three decades.

Arun Todarwal

C. V. Krishnan

Non-Executive & Independent Director Arun Todarwal, partner of Todarwal & Todarwal, a Mumbai-based firm of Chartered Accountants, is a member of The Institute of Chartered Accountants of India. He has a rich and varied experience spanning over three decades in management consultancy, finance and audit. 16 Sustainability Report 2012–13

Non-Executive & Independent Director C.V.Krishnan is the president of IFMR, Chennai. Previously associated with EID Parry, Essar Power, and Sterlite Industries as President/MD/CEO, he holds expertise in organisational turnaround, transformation management, corporate growth and financial management. C.V.K holds B. Tech from IIT-Madras and MBA from IIM-Ahmedabad.


BOARD OF DIRECTORS

A. R. Narayanaswamy

Haigreve Khaitan

Non-Executive & Independent Director

Non-Executive & Independent Director

A. R. Narayanaswamy is a Chartered Accountant and Management Consultant with over 35 years of industry experience. He is a Fellow Member of The Institute of Chartered Accountants of India and provides consulting services in accounting, financial management and information technology across several industry verticals.

Haigreve Khaitan is a Corporate and Commercial Lawyer and a Senior Partner of Khaitan & C o. He heads Khaitan’s Mergers & Acquisitions (M&A) practice. Highly recommended by world’s leading law chambers/legal accreditation bodies, he is one of the leading lawyers in India and also for project finance in Asia.

Dr. Anand Agarwal

Pratik Agarwal

CEO & Whole-time Director

Head- Infrastructure Business & Non-Executive Director

Anand Agarwal joined Sterlite in 1995 and has held various positions, including manufacturing, quality assurance and business development. Prior to joining Sterlite, he worked with Siemens. He completed his B. Tech in metallurgical engineering from IIT-Kanpur and was awarded Masters and Ph.D. from the Rensselaer Polytechnic Institute, USA.

Pratik Agarwal joined Sterlite in 2004. He leads Infrastructure business initiatives as well as corporate strategy for Sterlite. Additionally, he is closely involved in major strategic decisions of Vedanta Group. Pratik completed bachelors in economics from Wharton, Pennsylvania and MBA from London Business School. Sustainability Report 2012–13 17


EXECUTIVE COMMITTEE

Leading to Excellence Pravin Agarwal, Whole-time Director Pravin Agarwal has been closely involved with the Sterlite Group’s operation sin India since its inception and has been instrumental for the growth of Telecom and Power Businesses. His rich experience in general management and commercial matterss spans about three decades.

Dr. Anand Agarwal, CEO Anand Agarwal joined Stelite in 1995 and has held various positions, including Manufacturing, Quality Assurance and Business Development. Prior to joining Sterlite, he worked with Siemens. He completed his B.Tech. in Metallurigical Engineering from IIT-Kanpur and was awarded masters and Ph.D. from the Renesselaer Polytechnic Institute, USA.

Anupam Jindal, CEO Anupam Jindal joined the Sterlite Group in 1998, he has worked with the Group’s aluminum foils and copper cables business before heading finance for Sterlite’s mining operations in Australia. His key focus areas have been finance, Treasury, Accounts and MIS. Anupam is a Chartered Accountant from the Institute of Chartered Accountants of India.

K.S.Rao, COO - Telecom Business & Power Conductors K.S.Rao joined Sterlite in 1992 and has, since, held various positions in the Company’s Telecom business. His key focus areas have been engineering, manufacturing, product development, project management and business development. K.S.Rao holds a Bachelor’s degree in Mechanical Engineering.

Pratik Agarwal, Head-Infrastructure Business Pratik Agarwal joined in 2004. He leads strategic business initiatives in the infrastructure ownership space as well as corporate strategy for the organisation. Additionally, he is closely involved in major strategic decisions of the Vedanta group. Pratik has completed his Bachelor’s in Economics from Whatrton, pennsylvania and MBA from London Business School.

Prasanth Puliakottu, CIO Prasanth Puliakottu joined Sterlite in 2009 and is responsible for standardisation, automation, and integration of business processes. In a career spanning 19 years, Prasanth has led design, development and implementation of various IT projects. He has completed engineering from Madurai Kamaraj university (REC, Trichy) and M.S. from BITS, Pilani

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EXECUTIVE COMMITTEE

Pankaj Priyadarshani, CCO Pankaj Priyadarshani joined Sterlite in January 2012 with 25 years of experience, has head the Supply Chain Management function with key focuse on strategic sourcing, Pankaj has completed Mechanical Engineering From MITS Pilani, a certifications in leadership from INSEAD, Singapore and a course on Strategic Sourcing management from IIM-Ahmedabad.

Ajay Bhardwaj, COO - Grid Business Ajay Bhardwaj joined Sterlite in 2011 and is responsible from the Power infratructure Business. In a career spanning 30 years, he has worked in senior capacities in various organisatoin in India on projects in Transmission and Distribution, Telecom and Energy Management Systems. he has completed Electrical Engineering from IIT-Roorkee.

Vijay Jain, COO - Networks Business Vijay Jain joined Sterlite in April 2011 and is responsible for the Telecom networks Business. He has rich and varied experience spanning two decades and has 71 research papers and B patents to his credit. Vijay holds a M.Tech. degree from IIT-Kharapur & a post-graduate degree from Montreal University

Ankit Agarwal, Global Head - Telecom Products Ankit Agarwal heads Telecom Products division at Sterlite Technologies. in addition, he is responsible for identifying and executing strategic opportunities globally for Sterlite, including Mergers and Acquisitions, Joint Ventures and Greenfield projects. Ankit holds a Bachelors degree from Marshall school of Business and MBA from London Business School

Rajendra Mishra, Head-Power Cables Rajendra Mishra joined Sterlite in 2008 and is responsible for the Power Cables Business. In a career spanning 18 years, Rajendra holds experience in Marketing, Sales, Operations and Strategic Positions at various organisation. Rajendra hols a Bachelor degree in Electrical and Electronics Engineering from Regional Engineering College, Suratkal.

Kamal Sehgal, Leader - Business Excellence Kamal Sehgal joined Sterlite in 2012 and spearheads business excellence initiatives enterpirsewide. He holds over 15 years of experience in Lean Six Sigma Development, Supply Chain, Quality Assurance & Business Process transformation. He has completed Production Engineering from Punjab University & MBA from FMS, Delhi. He is also a certified Lean Sigma Master Blackbelt.

Vimal Malhotra, Head - Human Resources Vimal Malhotra joined Sterlite in 2009 and heads human resources. He has over 15 years of experience in Organisation Building, Employee Engagement & Development and Compensation Modeling & Structuring. He has completed B.Com. (H) from Delhi University & MBA in HRM from Sardar Patel, New Delhi.

Sustainability Report 2012–13 19


CORPORATE GOVERNANCE

All the Independent Directors have confirmed that they meet the 'independence' criteria as mentioned under Clause 49 of the Listing Agreement. None of the Directors on the Company's Board is a Member of more than ten Committees and Chairman of more than five Committees (Audit Committee and Investors' Grievance Committee) across all companies in which he is a Director. All the Directors have made necessary disclosures regarding Committee positions and Directorship held by them in other companies. All Non- Executive Directors are liable to retire by rotation. The appointment of the Whole-time Directors, including the tenure and terms of remuneration are also approved by the members. The required information as enumerated in Annexure IA to Clause 49 of the Listing Agreement is made available to the Board of Directors for discussions and consideration at Board Meetings. The Board reviews the declaration made by the Chief

Name

Anil Agarwal

Designations

Non-Executive Chairman

Executive Officer regarding compliance with all applicable laws on a quarterly basis as also steps taken to remediate instances of non-compliance. Chief Executive Officer and Chief Financial Officer have certified to the Board in accordance with Clause 49V of the Listing Agreement pertaining to CEO and CFO certification for the Financial Year ended March 31, 2013. During the financial year 2012-13, eight meetings of the Board of Directors were held on April 26, 2012; June 21, 2012; July 27, 2012; October 5, 2012; October 26, 2012, January 28, 2013, March 14, 2013 and March 30, 2013. The maximum time-gap between any two consecutive meetings did not exceed four months. The composition of the Board of Directors, attendance of the Directors in Board Meetings and Annual General Meeting and their shareholding details in the Company are as follows:

Committee Number of Membership Chairmanships shares held in the Company in other Companies3

Attendance at the Last AGM

Directorships in other Companies1

00

No

04

(Nil)

(Nil)

Board Meetings attended

Arun Todarwal2

Non-Executive

08

Yes

08

(06)

925

Haigreve Khaitan2

Non-Executive

00

No

15

(09)

(Nil)

A. R. Narayanaswamy2 Non-Executive

08

Yes

06

(01)

(Nil)

Pravin Agarwal

Whole-time Director

08

Yes

03

(Nil)

30000

Anand Agarwal

CEO & Whole-time Director

07

No

02

(Nil)

1,73,840

1 All public, private, foreign, Section 25 Companies are included. 2 Independent Directors. 3 Includes only Audit and Investors' Grievance Committees.

20 Sustainability Report 2012–13


CORPORATE GOVERNANCE

DIRECTORS WITH MATERIALLY SIGNIFICANT, PECUNIARY OR BUSINESS RELATIONSHIP WITH THE COMPANY As required under Accounting Standard 18, transactions with related parties are furnished under Note 44 of Notes to the Accounts. There are no transactions of material nature with the Promoters, Directors or their relatives, etc that may have potential conflict with the interest of the Company. Disclosures have been received from Directors and Senior Management relating to the financial transactions in which they or their relatives may have personal interest. However, none of these transactions have a potential conflict with the interest of the Company at large.

III. AUDIT COMMITTEE The Company has the Audit Committee constituted in accordance with the requirements of Section 292A of the Companies Act, 1956 and Clause 49 (II) of the Listing Agreement entered into with the Stock Exchanges. The primary objective of the Audit Committee of the Board of Directors of a Company is to discharge responsibilities relating to accounting and reporting of financial practices adopted by the Company and its subsidiaries, surveillance of internal control systems as well as accounting and audit activities. The terms of reference of the Audit Committee include: 01. Review of the Company's financial reporting process and the disclosure of its financial information. 02. Reviewing the adequacy of internal audit function, the structure of the internal audit department, reporting structure coverage and frequency of internal audit. 03. Recommending the appointment and removal of statutory auditor and the fixation of audit fees and other related payments. 04. Reviewing, with the management, the annual financial statements before submission to the board for approval, focusing primarily on: a. Matters required to be included in the Director's Responsibility Statement to be included in the Board's report. b. Compliance with accounting standards and changes in accounting policies and practices and reasons for the same. c. Major accounting entries involving estimates based on exercise of judgment by Management. d. Audit Qualifications and significant adjustments arising out of audit. e. Compliance with listing and other legal requirements relating to financial statements. f. Disclosure of any related party transactions. 05. Reviewing, with the management, the statement of uses/ application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of

funds utilised for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter. 06. Reviewing with management, the periodical financial statements. 07. Reviewing with the management, external and internal auditors, the adequacy of internal control systems, frequency of internal audit, significant findings by internal auditors and follow up there on. 08. Discussion with external auditors, nature and scope of audit as well as have post-audit discussions. 09. Reviewing the Company's financial and risk management policies. 10. Reviewing Whistle Blower Mechanism. 11. Reviewing Management Discussion and Analysis Report, Statement of significant related party transactions submitted by the management; Management letters/letters of internal control weaknesses issued by the statutory auditors, if any; Internal audit reports relating to internal control weaknesses.

Sustainability Report 2012–13 21


RISK MANAGEMENT

RISK MANAGEMENT Sterlite is subject to a variety of risks and uncertainties which are no different than any other company in general and our competitors in particular. Such risks are the result of not only the business environment within which we operate but also of other factors over which we have little or no control. Sterlite is committed to effective management of risks across the organisation by aligning its risk management strategy to its business objectives. Sterlite does this through instituting a risk management structure for timely identification, assessment, mitigating, monitoring and reporting of risks early on for achievement of its business objectives and enhanced stakeholder's value. The risks are identified through a formal risk management programme with the active involvement of business managers and senior management. The risk management framework acts as an effective tool in mitigating the various risks that the Company's businesses are exposed to in the course of their operations as well as in strategic actions. Further, Sterlite's risk management practices also seek to enhance the long-term competitive advantage to the Company on a sustainable basis.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has strong internal control systems for business processes, with regards to efficiency of operations, financial reporting and controls, compliance with applicable laws and regulations, etc. Clearly defined roles and responsibilities for all managerial positions have also been institutionalised. All operating parameters are monitored and controlled. Regular internal audits and checks ensure that responsibilities are executed effectively. The Audit Committee of the Board of Directors periodically reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening these.

MARKET AND COMPETITION RISKS The market is highly competitive with very few barriers to capacity expansion by existing players or entry of large MNCs with inorganic growth strategies. Globally, most of the contracts are finalised through the competitive bidding process. While Company dominates in this segment, it does not have much pricing power on account of price undercuts as increased through increased competition and entry of new players. To overcome this, Company is expanding its capacity and continues to focus on increasing its market share through access to new markets and enhancing its client footprint. Being a part of capital goods industry, the growth of Company primarily depends on capital expenditure plans in the power and telecom segments. Any slowdown or delay in capital expenditure plans by these utilities and service providers could adversely impact the Company's growth.

22 Sustainability Report 2012–13

Sterlite manages this by taking various initiatives in technology and product development, taking into consideration the needs of customers. Some of these initiatives include product design that help customer reducing their cost of project, customising a basket of products that suit customer's needs and by introducing Risk Management enhanced features in products or services to improve value proposition to the customers. Additionally, the Company undertakes product approvals from new Tier 1 customers to increase its market share commensurate with its increased manufacturing capacity. As these initiatives require investment of significant time and resources, any delay or failure in this poses risks for the Company.

PRODUCT OBSOLESCENCE RISKS In the fast changing world a new technically improved variant of product could put the Company's prospects at risk. In order to mitigate, Sterlite maintains a very strong focus on continuous innovation processes and hence has been introducing technologically improved products in the market in which it operates. This strategy has helped limiting the risk involved with obsolescence of products. The company strives to introduce future-proof products and solutions to exceed stringent global standards and specifications. The Company has a technically qualified team that constantly interacts with customers to understand their future needs and analyses application trends. Their inputs are an important initiator for research and product development. Sterlite also interacts with research institutions to understanding the latest advances in technology.

COMMODITY RISKS The Company is exposed to the risk of price fluctuation on raw materials & energy resources. Aluminium & alloys make up significant part of the Company's raw material purchases. As a market leader in the industry, the Company has strong policies and systems in place to minimise the price risk of its main raw material aluminium to a large extent. The Company effectively manages the price variation risk in the aluminium by fully passing on the movement in prices to the customers or hedging the risk on LME or primary suppliers. In addition furnace oil prices are also linked to crude oil prices, which are influenced by the global demand and supply & outlook of the economy and could vary significantly. These price variations, if not managed adequately, could affect the profitability of the Company significantly. The Company has limited control over passing on the adverse variations in the price of some of the raw material and energy costs to the customers and in turn this may have negative impact on the Company's profitability.


RISK MANAGEMENT

Company's policy of backward integration into critical manufacturing materials (e.g.: Hydrogen, Oxygen, Silicon Tetrachloride for optical fiber and optical fiber for Fiber optic cables) helps in minimising the effect of increase in prices of raw material.

FINANCIAL RISKS Liquidity Risks The Company requires funds both for short-term operational needs as well as for long-term investment programs mainly in growth projects. The continued global financial uncertainty has significantly restricted the supply of credit in the market. Banks and financial institutions have also tightened lending norms. Sterlite aims to minimise these risks by generating sufficient cash flows from its current operations which in addition to available cash and cash equivalents, liquid investments and sufficient committed fund facilities, will provide liquidity both in the short term as well as in the long term. The balance sheet is strong and gives us sufficient headroom for raising further debt, should the need arise. Sterlite maintains a healthy debt-equity ratio as well as maintains the flexibility in its financial structure to alter this ratio when the need arise. Currently the Company does not have any long term debt as at the end of the year at Stand alone level however the Company has secured long term finance in its subsidiary for the project being executed.

The Company is in advanced stage of securing the long term funds on the strength of the project itself and hopeful of achieving the same within the current year. Interest Risk The Company is exposed to the interest rate fluctuations in both domestic and foreign currency borrowings. It uses a judicious mix of fixed and floating rate debts and rupee and foreign currency borrowing within the stipulated parameters, to mitigate the interest rate risk. This also helps to have a lower blended rate of interest. The rate of interest for rupee borrowing is largely linked to MIBOR and the rate is linked to prevailing US Dollar LIBOR for foreign currency borrowings. Foreign Currency Risk The Company's policy is to hedge all long term foreign exchange risks as well as short-term exposures within the defined parameters. The long-term foreign exchange liability is fully hedged and hedges are on held to maturity basis. Within foreign currency, there are two major risk categories - risk associated with the operations of the Company such as purchase or sale in foreign currency and risk associated with the borrowing of the Company denominated in the foreign currency. The Company has a defined & proven policy to manage both kinds of risk and this is reviewed frequently in the light of major developments in economic and global scenarios.

The Company through its subsidiary also has few more projects, for which it is in the process of securing long term finance. Any adverse market condition in the banking or financial segment may affect the financial closure adversely.

Sustainability Report 2012–13 23


RISK MANAGEMENT

ECONOMIC AND POLITICAL RISKS

PROJECT EXECUTION RISK

Company has multiple manufacturing facilities in India. A significant portion (72%) of Company's revenue is earned from sales to customers within India including Tier-1 public and private sector clients. The balance revenue is earned through sales in international markets. Performance and growth of the Company's business is dependent on the health and stability of the Indian and global economies. The risks arising out of any downturn in the economic conditions of the global markets could have adverse impact on the performance of the company.

As expansions continue to remain a priority for the Company, execution success for large capex projects is exposed to risks of time and cost overrun. Project execution is largely dependent upon project management skills, timely delivery by the equipment suppliers and adherence to schedule by civil contractors. Any delay in project implementation will erode revenues and profit for that period. Your Company has set up a dedicated project implementation team to continuously review the project execution to ensure that the implementation schedules and budgets are adhered to.

Government utilities are major customers of the Company and any delay in capex allocation by the Government and utility incumbents, could adversely impact the Company's growth. The presence of the Company in the two verticals “Power” and “Telecom” provides some insulation by division of the risks. To reduce the risk of customer concentration, Sterlite has been increasing its customer base to non-government utilities within India and in overseas market. Further, the Company has added various good Tier-1 clients for all businesses across geographies, has made a strong entry into Indian private sector and maintains a strong focus on emerging countries. This significantly reduces the risk of dependence on one particular geography or customers.

LEGAL AND REGULATORY RISKS Sterlite has multiple manufacturing facilities in India and has a diversified customer base across the world. As a result, the Company is subject to federal, regional, state and local laws and regulations in each country in which it operates. These legal, fiscal and other regulatory regimes of the country play a crucial role on the performance of the Company. Any changes in government policies with respect to import tariffs or export incentives can pose risks to the Company and can also affect the competitiveness of our product in those countries and in turn affect the performance of the Company. There are few legal cases against the Company at various stages related to custom duty, excise duty, taxation, commercial or legal disputes. Any adverse result in such cases may also affect the profitability of the Company. Some of the above risks are beyond the control of the Company. The Company continues to actively review and monitor these risks which may have a bearing on our business.

24 Sustainability Report 2012–13

HUMAN RESOURCE RISK Company's ability to deliver value is shaped by its ability to attract, train, motivate, empower and retain the best professional talents. These abilities have to be developed across the Company's rapidly expanding operations. Company continuously benchmarks HR policies and practices with the best in the industry and carries out the necessary improvements to attract and retain the best talent.

COUNTER-PARTY RISKS We are exposed to counterparty risks on our receivables and investments. We have clearly defined policies to mitigate these risks. Limits are defined for exposure to individual customers and the exposure is strictly monitored on ongoing basis. Moreover, given the diverse nature of our businesses, trade receivables are spread over a number of customers with no significant concentration of the credit risk. Cash and liquid investments are held primarily in debt mutual funds and banks with high credit ratings, approved by CRISIL. Emphasis is given to the security of investments.


CODE OF CONDUCT

CODE OF CONDUCT Through our code of conduct and policy framework the Board requires us to work to achieve zero harm. We aim to have a continuous reduction in our health, safety and environmental footprint, by applying advanced technology and rigorous standards in support of our aim to manage it responsibly. This is critical for maintaining our license to operate.

IMPLEMENTATION OF CODE OF CONDUCT The Company has amended its 'Code of Business Conduct & Ethics' to meet the changing internal and external environment for its employees at all levels including Senior Management and Directors. The Code has also been posted on the Company's website www.sterlitetechnologies.com. The Code serves as a guide to the employees of the Company to make informed and prudent decisions and act on them. As required under Clause 49 of the Listing Agreement, the affirmation of compliance with the Code from Directors and Senior Management personnel has been obtained for this financial year. Further, the Company is committed to maintaining a productive environment for all its employees at various levels in the organisation, free of sexual harassment & discrimination on the basis of gender. Towards this, the Company has framed the 'Policy on prevention and prohibition of sexual harassment'.

ETHICS - WHISTLEBLOWER POLICY The Company has adopted a 'Whistleblower Policy', which has been communicated to all employees along with Code of Business Conduct & Ethics. The Whistleblower policy is the mechanism to help the employees to raise their concerns about any malpractice, impropriety, abuse or wrongdoing at an early stage and in the right way, without fear of victimisation, subsequent discrimination or disadvantage.

The Director - Management Assurance reviews the 'Complaint', and may investigate it himself or may assign another person to investigate, or assist in investigating the 'Complaint'. At least once in every six months and whenever else as deemed necessary, Director – Management Assurance submits a report to the Audit Committee and any other member of Company management that the Audit Committee directs to receive such report, that summarises each 'Complaint' made within the last 12 months. The Whistleblower Policy also contains mechanism of redressal available for an employee, if he/she feels that he/she has been retaliated against due to disclosure of concern. No person has been denied access to the Audit Committee. The Whistleblower policy has also been extended to external stakeholders like vendors, customers, etc.

The policy encourages the employees to raise concerns within the Company rather than overlooking a problem. All Complaints under this policy are reported to the Director -Management Assurance, who is independent of operating management and businesses. 'Complaints' can also be sent to the designated E-Mail ID: stl.whistleblower@vedanta.co.in.

Sustainability Report 2012–13 25


STRENGTHENING OUR

EMPLOYEE VALUE PROPOSITION

At Sterlite, attracting, developing and retaining the best talent is key to our success.


TRAINING & DEVELOPMENT

We are proud of our successes in developing and managing a performance-oriented workforce that is committed to a shared set of values and actively focused on our engagement priorities. In line with our Group philosophy to foster and nurture a culture of meritocracy and high performance, regular performance and career development reviews are undertaken. Our Performance Management System is a key tool to measure, reward and improve performance. In addition to annual reviews, forums including Chairman's Workshops, CEO meetings and other direct employee engagement activities – as well as liaising with employee representatives – work to promote a culture of trust between employees and management. With operational locations around the world and a global workforce of over 1500 employees, we are a truly global company in terms of size, presence and outlook.

OUR APPROACH Our Human Rights policy sets out our goals and states that Sterlite will strive to: Be compliant with labour laws of the country we operate in. Uphold human rights aligned with national and international regulations applicable; Ensure that our employees are fairly and reasonably paid and our remuneration structure is compliant with statutory obligations of the jurisdiction we operate in; Our operations will be based on zero tolerance for any form of forced, compulsory or child labour directly or through contracted labour. We recognise and respect employee rights to associate freely and to collective bargaining. We promote fair working conditions as guided by international conventions wherever applicable; Be an equal opportunity employer and all employees will be treated with respect and dignity and judged solely on their performance irrespective of their race, religion, caste, gender, age, disability, and any other characteristic; Respect and preserve the culture and heritage of the local communities, including socially vulnerable groups which are impacted by our operations, and work towards developing a constructive relationship with such groups and local communities, seeking broad-based support for our operations; Respect the social, economic, cultural and human rights of communities; Work with government agencies to develop a common understanding and agreement to protect human rights in the event of any unforeseen situations; Ensure protection of our people, equipment and assets.

OUR LEADERSHIP DEVELOPMENT FRAMEWORK We at Sterlite have recognised a growing need for quality talent to take on leadership roles and towards that have enhanced the focus on leadership development; both for existing and future leaders. Towards strengthening the leadership team and equipping them to deal with the new age challenges, the

company conscientiously decided to build a pipeline comprising of ~ 10% of the employee population from across levels within the organisation to enhance the talent pool and build the leadership potential. Towards this the company initiated a multi–pronged approach towards leadership development focused on 4 levels of the organisation pyramid. Thus, the leadership development programs have been designed to cater to every level in the hierarchy of the organisation. For the senior management, we have Parivartan. This Wholesome Leadership Development program (WLDP) is a longterm intervention designed to cover every aspect of being a successful leader from self awareness, building teams, creating supportive and enabling eco-system, to building a performance culture and finally delivering value to business. This program demands a high level of individual ownership and commitment from the participants and their seniors. Further, it is aimed at unleashing creative intelligence and wholesome leadership in people and the organisation, by awakening people to their full potential and catalysing their creative contribution to their organisations. The program expands awareness which makes participants more responsive, creative, focused and energetic through a blend of class room learning, 360 degree feedback, individual profiling, Project work and executive coaching. Then there is the Striker program, which caters to the junior and middle management, while the Career Management program is designed for young professionals with less than 2 years in the organisation.

TRAINING & DEVELOPMENT At Sterlite, identification and grooming of young talent, is part of the overall business strategy. The organisation's talent management approach is reflective of this belief, where structured avenues are created for overall employee development. All initiatives are designed to ensure delivery of sustainable business results & fulfilling the long-term vision of the organisation. Sterlite has designed various programs to nurture the young talent in the organisation and to help them develop not only professionally but personally also. Sterlite's learning model is 70:20:10, which is aimed at providing challenging assignments and creating an appetite for risk and the acquisition of new skills. Learning primarily methods can be broadly bifurcated into three areas: i) Action Based Learning: This comprises of learning through on the job exposure, taking on stretched assignments, and challenging the status quo. Emphasis is also given to building versatility through job rotations and job enhancements and taking on strategic cross functional projects. ii) Coaching & Mentoring: A considerable learning also takes place through structured executive coaching, exposure to professional forums and participation in study missions. Sustainability Report 2012–13 27


EMPLOYEE FRIENDLY WORKPLACE

When individuals question the status quo and move out of their comfort zone, they become competitive, innovative, and entrepreneurial. Encouraging them to work on projects outside their routine boosts growth, learning, and enhances the acquisition of leadership skills.

Further, Sterlite's initiatives in employee communication and broadcast systems include In-house Newsletter “I Am Sterlite”, Samwaad, Skip-level Meetings, All Hands Meet, Daily Huddles and one-on-one meeting. Adrenalin - the Employee Self Service portal! This was launched with an aim to integrate HR system and manage the entire employment life cycle, and includes several advanced features. This portal enables several aspects of employee personal data, leave module and employee separations.

EMPLOYEE VERSATILITY PROGRAM

REWARDS AND RECOGNITION

iii) Structured Learning: This covers the more traditional learning approaches of class room training, executive programs, flexi / e –learning platforms and learning labs.

To enhance the versatility of the organisation and employees to meet current and future business needs To provide opportunity to ~ 20% of the employees, to move to new roles and responsibility, every year. Avenues available to employees to take up new role and responsibilities during the year: Job rotation, Post Annual and Mid-term appraisal – IDP discussions. Internal job positing (IJPs), to fill up backfills and new positions in the location / business; if one has completed 18 months in current role. Transfers / Secondment.

AN EMPLOYEE-FRIENDLY WORKPLACE It is well known that effective employee communications benefits company and individuals alike; it improves performance and increases the commitment of individuals to the company. Further, effective feedback mechanisms help improve the work environment climate, while increasing awareness among employees about the company's activity and plans. At Sterlite too, employee satisfaction surveys (ESS) are serving as a catalyst for positive change, as these point out exactly where change is needed. Conducted every month, the ESS provides employees the opportunity to anonymously voice their thoughts on leadership, the workforce and work environment. We firmly believe that this level of job satisfaction and employee engagement plays a critical role in achieving high levels of organisational performance. Based on the scores obtained the top and bottom scoring factors are identified for different business divisions and functions. The factors on which Sterlite scores high, is continued as a good practice. If a particular function or business unit scores well in a particular area then that best practice is also implemented at other business unit. Action planning is done for business unit where the ESS scores are low. Action planning is done with the key management people at the business and the HR team. The suggestions which come from the employees through their verbatim comments are also communicated to the senior management through various forums like monthly meetings, reviews, etc.

28 Sustainability Report 2012–13

To help them bring the very best of themselves to their jobs each day, we offer our employees competitive compensation, benefits that enhance their quality of life, a safe and inclusive work environment, and a variety of personal and professional development opportunities. Recognition schemes include: Star Performer of the Month (Individual /Team): This recognises Sustainable Business Performances that include any initiative taken to improve the system in terms of cost reduction, quality improvement, increased Productivity, increased revenue, improved process operations, increased customer delight. The resulting system/ process should be sustainable, person independent, safe and environment friendly. Spot Performance: A special/ unique performance includes task done beyond the ambit of Routine work and/or beyond stated expectation bringing benefit to section/Department / business. This will include fresh approaches to existing processes & practices. CEO Excellence Award: Promote creativity & innovation among employees for organisational effectiveness & business growth/ success. Achieve breakthrough performance resulting in improvement of bottom line, increase in productivity, and decrease in cost. Demonstrate an ideology of performance improvement. Show a quantum leap in building and maintaining external relationships. Innovation Award: To foster a culture of innovation and research To establish the importance of increased number patents as an essential part of our business model Provide an increased footprint in the global market To enhance organisational capability on Intellectual Property, by granting special awards to concerned\ employees at the time of completing Application for patent and grant of Patent.


BUILDING DIVERSITY

DIVERSITY Sterlite is committed to building diversity at the workplace. We follow a philosophy of meritocracy and are committed to ensuring that our workplace is free from all forms of discrimination or harassment on the basis of age, caste, sex or religion.

19 40 321

1041

64 24

CENTRAL EAST NORTH OVERSEAS SOUTH WEST

Recognising diversity means understanding how people's differences and similarities can be mobilised for the benefit of the individual, the organisation and society as a whole. Different groups of people offer different skills that can improve an organisation's ability to deliver goods and services, adding value and sustainable competitive advantage. Diversity in business helps in building employee commitment, morale and discretionary effort. It also helps in managing better the impact of globalisation and technological change. It enhances creativity and innovation in the organisation. In today's globalised scenario, diversity helps in improving knowledge of how to operate in different cultures and also helps in understanding of the needs of current customers and clients better. It also assists in the development of new products, services and marketing strategies. Last but not the least it also helps in enhancing the organisation's reputation and image with external stakeholders and creating opportunities for disadvantaged groups and building social cohesion.

PLS CADD Training: To help our Engineering and Projects executives in determining the exact maximum operating limits of a transmission line with respect to minimum ground clearances, provide cost-effective upgrade solutions with minimal social and environmental impact, specifically designed Focused training on PLS CADD was conducted. Around 10 executives from Sterlite Grid Limited, Delhi and Project locations participated in certification program at MNEC Consultants Pvt Ltd's office in Nagpur. The Executives were assessed by the faculty during the training and also completing the tutorials assigned to them. Increasing safety effectiveness in Transmission & Substation Projects: To build the culture of safety and run our Projects smoothly with zero accident, a three-day EHS Training program was held at Bhopal. Around 48 Grid Project employees and 19 contractor employees participated in the program. Pre and Post tests were carried out to measure the effectiveness of the Program. Toppers of the test were rewarded. Technical training cum Workshop on Optical Fiber and OFC: To delight our customer with value-added initiatives and create a differentiation from our competitors, Sterlite organised a technical training cum Workshop on Optical Fiber and OFC. It was for the first time that we organised such training with the involvement of Tata Teleservices Ltd (TTSL) corporate office, TTSL Corporate HR as well as Technical Team and TTSL AP circle Head. After the successful completion of training, the feedback form was submitted to TTSL Corporate office. IT CAMP: To enable the business to deliver business goals through effective uses of IT Applications for various domains/functions, IT Camps were organised at Jabalpur and Bhopal Office for all JTCL employees.

TEAM BUILDING & OUTBOUND EXPERIENTIAL LEARNING PROGRAM ON BOARDING PROGRAM– GETS 2012: The Graduate Trainee Engineers' (GET) Batch of 2012-13 joined in July 2012 and had a week-long Induction program in Haridwar. In all, 25 GETs (OF, OFC, PTB and PCB across locations in Aurangabad, Silvassa, Haridwar and Jharsuguda respectively) joined Sterlite and 9 GETs joined Sterlite Grid respectively. During the six day induction they were taken through products, process & services offered by Sterlite. Sustainability Report 2012–13 29


EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT ACTIVITIES SAFETY ON THE RADAR: Monthly Safety Day celebration is an important occasion for recognising individual commitment towards safety & applause those who have shown change in behavioral for building safety culture in the plant & developed competencies for safe & productive operations. The day begins with a flag hoisting ceremony followed by a safety pledge or oath to spread awareness and habituate the employees about the importance of safety procedures and practices in their daily work schedules.

This is with the objective that while properly maintained workplace is always safe & productive place, cleanliness and housekeeping are important pillars to make safe & quality products. In accordance with this, teams have been formed at specific zones and the type of activities to be performed during Shramdaan has been allocated, thereby inculcating 5S practices among all workforce.

WORK-LIFE BALANCE We have a structured Work Life Activity calendar, which includes various events ranging from Employee Get Together, Dance and Music Events involving employees, spouses and children. We have a series of Sports activities earmarked all through the year for both employees and their families in which includes inter unit Tournaments are held for Cricket, Chess, Carom and Badminton. INDEPENDENCE DAY CELEBRATIONS: A RICH TRIBUTE TO OUR NATION The Sterlite family across locations offered rich tributes to freedom fighters on the occasion of Independence Day. The offices were decorated with the tricolor and the National Anthem was played during the flag hoisting ceremony.

The usual practice at the meet includes demonstration of safety PPE usage, information about accidents & incidents & learning's from these incidents thus making sure that such incidents are not repeated in the future. A prize distribution ceremony was also held for those who contributed towards safety, productivity and Quality. SHRAMDAAN: To create space for better capacity utilisation, and clean up periodically hard to clean areas anywhere inside the plant that are not being attended by housekeeping staff on a regular basis, Shramdaan has been launched. HEALTH WELLNESS CAMP: Employee Wellness Program was organised for employees at Escorts Fortis Hospital Okhla and Noida Sector 62 Centres. Employees planned their work to visit the hospital during the mentioned dates and completed the Checkup.

30 Sustainability Report 2012–13


EMPLOYEE ENGAGEMENT

EMPLOYEE GET-TOGETHERS & CELEBRATING FESTIVALS

“KUTUMB” - STERLITE LADIES CLUB

With an objective to bring together all employees on one platform, employee get-togethers are held across locations to generate more cohesiveness between the teams and to boost motivation & bonding among the employees. These include team bonding activities & fun-filled games and provide the much-needed bonding among the employees and their families. Festivals like Holi, Dussera, Diwali, Christmas, Krishnasthmi, Ganesh Chathurthi and Valentine's Days are also celebrated along with employees and families. This year, Corporate Diwali Cards were designed in-house by employees' children who were invited to take part in a drawing competition. This initiative was widely appreciated and helped build a sense of belonging towards the company.

For increasing the bond between Sterlite employees' families at Silvassa location, a ladies' club “Kutumb” was inaugurated in July at Daman Ganga valley resort, Silvassa. A total of 63 women and 30 kids attended the meet. Various competitions like red dress competition and Ganpati making from dough were organised. A microwave cooking workshop was also held, as part of “Kutumb” initiative. Around 54 women and more than 50 kids attended the event, and had a great time enhancing their cooking skills, and learning to make more nutritional and delicious cuisine. Further, “Moksh”, comprising wives of employees have been instrumental in driving various events like Painting Competition, Dance Competitions, Music Competitions for children. Besides the women folk volunteer during CSR activities of the company. This year, a new Women Council, Aprajita has been formed. This forum will witness women employees and their spouseengage in various programs like personality development workshops, Workshop on stress management, 1 minute game, etc.

Sustainability Report 2012–13 31


ENSURING A

SAFE WORKPLACE


PROMOTING EMPLOYEE WELLNESS

The safety and health of our employees are consistently at the core of our operations and an area of ongoing focus for Sterlite. We provide a healthy workplace through controlled and safe plant operations. It is our goal to achieve world class Health, Safety & Environment performance. Our efforts to ensure that our employees are safe and healthy have resulted in a generally more engaged and more productive workforce. What's more, a safe and healthy work environment supports creativity and innovation and improves business results.

PROMOTING EMPLOYEE WELLNESS Sterlite has a long history of promoting health and wellness for its employees, their families and the community. This commitment is grounded in the principles set forth during the initial days and is ingrained in our Sterlite values. We believe that healthy employees are more engaged and productive. The programs that we offer help in prevention and personal responsibility for health. These include: Pre-Employment Medical Check Up: Pre-employment medical checkup of newly joined employees undergo medical check up so that fitness for the job is ensured. Canteen Employees' check up: Daily physical check up of canteen employees is done and they are provided with gloves and caps to maintain good hygiene while preparing & serving the food. In addition, pre-employment and periodic medical check up is also carried out. The food served is less spicy and of required calorific value. Personal Protective Equipment: Employees who work in hazardous processes are supplied & trained with PPE like safety masks, safety goggles, safety helmets, safety shoes. First-aid Boxes: First-aid boxes are fixed at identified places with prominent marking for use in case of emergency. First-aider: Trained first-aid personnel are available in each department to handle any medical emergency.

Through senior management support, the dedicated efforts of our entire workforce and ongoing implementation of best practices, we have achieved continuous improvement in employee safety in the workplace since 2007. Further, the Safety Management System includes the following: Safety & Health Policy Safety Organisation Hazard Identification & Risk Assessment Safety Training Inspections & Audits Work Permit System Mechanical Integrity Control on contractors Accident Reporting, Investigation & Analysis Fire Prevention &Protection Safety Promotional Activity Housekeeping Emergency Action Plan

WORK PERMIT SYSTEM As per requirement of the FA 1948 & state factory rules, we have imparted work permit system which is crucial requirement of our contractor safety policy to control incident & accident rate, to create awareness among all external party workers about hazard dealt at our factory premises & to control unsafe work of party workers.

SAFETY PERFORMANCE We have a system on place for reporting unsafe act, unsafe conditions, near miss, and recordable Incidents & Loss time injuries. We have tie-ups with reputed hospitals for ensuring emergency treatment in case of any injury within the vicinity of the plant. Going forward, we plan to have a separate medical room equipped with all basic facility, ambulance and a visiting doctor.

Fire Fighting & Emergency Preparedness: Sterlite has identified a group of trained fire-fighters from each section who are responsible for handling any emergency situation. There is a well defined on site emergency plan along with the organisational chart mentioning the role and responsibility in case of emergency.

ENSURING A SAFE WORKPLACE Sterlite's overarching safety goal is to consistently achieve bestin-class safety performance. All of our wholly owned manufacturing facilities and our office employees are represented by a Health, Safety and Environment committee comprising multi-facility, middle and upper-level management, as well as a dedicated safety director for manufacturing facilities. In addition, we engage with industry peers to understand and share best safety practices. Sustainability Report 2012–13 33


CONSERVATION OF ENERGY

ENVIRONMENT Sterlite recognises importance of preserving natural resources that sustains all life on the earth for future generations. To this end, Sterlite strives to achieve a zero environmental footprint throughout the lifecycle of our products and business activities. By capitalising on our superior technologies and our ability to innovate, we strive not only to reduce the environmental impact of our business activities, but also to deliver environmentally conscious products and services that enrich our customers' lives. Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as per Section 217 (1) (a) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the report of Directors) Rules, 1988 for the year ended March 31, 2013.

iii) Conservation of furnace oil: Various engineering and process efficiency improvements were implemented across locations; for example the power conductor facility at Rakholi started usage of Natural Gas as an alternative fuel to furnace oil. Consumption of furnace oil reduced by 400 Ton per month; which in turn led to improvement in Grid power utilisation at Dadra plant. Likewise, at our Jharsuguda facility, the usage of hot metal directly in rolling Mill has saved huge amount of energy used in melting furnaces.

CONSERVATION OF ENERGY

B. Additional investments and proposals being implemented for reduction of energy consumption: I) Installation of UPS backup for final goods production machine, resulting in reduction of cable scrap and any rework due to abrupt power failures; installation of on line temperature recorders for ageing furnaces to improve efficiency and reduce power consumption.

A. The Company adopted the following measures on energy conservation:

ii) In rolling mill section- fixing of polycarbonate sheet on side wall to increase in Lux level.

i) Conservation in electricity consumption: Implementation of various energy saving mechanisms such as installation of CFL lamps, additional capacitors, auto timers for airconditioning and street lighting. Additional mechanisms were implemented to effectively curtail energy losses such as the installation of power meters, etc.

iii) Detailed review of power distribution system, compressed air system, chilled water system, extruders and heaters, and plant lighting system to identify and implement improvements to reduce consumption of power, implementation of various energy saving mechanisms.

ii) Optimisation of energy consumption: Various power audits were done internally and with external consultants to assess energy consumption during various manufacturing subprocesses and to optimise the same by reengineering. Energy audit and mapping of carbon footprint is also undertaken at the plant level. Improvements in UV curing as well as installation of energy efficient dry scrubber. Machine modifications to conserve energy consumption included redesign of cooling tower water supply systems, replacement of DC motors with AC motors, improved control systems on compressed air reduction on various manufacturing lines, to state a few. There has also been a reduction in natural gas consumption. The power conductor facility at Haridwar has obtained ISO 14000/OSHAS 18000 accreditation from SAI GLOBAL Australia in January 2013. Sterlite follows Clean Development Mechanism (CDM) by way of eliminating Captive Power Plant usage (10 MW) and sourcing power from Open Access. In addition, hydrogen gas generation plant based on natural gas installed, resulting in savings in both power consumption and fresh water consumption. There has also been an increase in plant output with same inputs, resulting in decrease in waste generation and improved energy consumption index.

34 Sustainability Report 2012–13


GREEN MANAGEMENT

GREEN MANAGEMENT

ENVIRONMENT MANAGEMENT CELL

Sterlite has adopted the Green Building Concept, which has resulted in the incorporation of environment-friendly and resource-efficient processes at each stage of construction, right from site selection and designing to construction, operation followed by maintenance, renovation or even demolition. The endeavour is to seek minimum possible impact on environment. The concept of Green Building concentrates mainly on two points: Increasing the efficiency with which buildings use energy, water and materials Reducing building impacts of human health and the environment, through better site selection, design, construction, operation, maintenance, and removal throughout the complete life cycle.

An environment management cell has been formed at Sterlite. We have always focused on environmental perspectives and take initiative to maintain our environmental objectives. The main objectives include:

In line with this, our facility in Shendra has been built with LEED compliant norms, while the Haridwar Power Cable plant as well as Jharsuguda Conductor plant is partly LEED compliant.

1. Climate Change 2. Resource conservation 3. Management of chemical substances 4. Biodiversity conservation.

CLIMATE CHANGE Sterlite reduces energy consumption, natural resource consumption and strives to achieve zero emissions of greenhouse gases & other polluting gasses. We recently commissioned the Natural Gas supply facility from GAIL to replace Furnace Oil as basic fuel to our furnaces, as this can curb environmental pollution. The system is operational since March and is running for rolling mill furnaces.

In addition, the company has formed a green management team to not only keep the company clean & green but also make the vicinity green and healthy. The team focuses on several aspects like developing environmentally conscious products, reducing the environmental impact of its sites and promoting product recycling and waste recycling. Green belt area within the factory premises Total plot area

62403 SQM

Green Belt area

20592 SQM

Total planted area

10296 SQM Sustainability Report 2012–13 35


ENVIRONMENTAL MANAGEMENT

STACK EMISSION REPORT FOR ROLLING MILLS The Stack emission is monitored is performed on a half-yearly basis to ensure controlled emission of air pollutants in the ambient. We have also installed additional pollution control devices like wet scrubber to maintain the limit. 90

81.4

80 70 60

1 PM (At 15% o2 Correction) mg/Nm3

50 40 30

24.1

2 Sulpher dioxide (As So2) mg/Nm3

28.2

20 10 0

RM1

RM2

RM3

AMBIENT AIR QUALITY REPORT The ambient air quality is monitored through PCB approved laboratory. 120 100

100 80

80 72.4

80

60

60

Results

36.1

40

11.3

20

24.3 Limit

0 ug/m3 ug/m3 ug/m3 ug/m3 Particulate Matter Particulate Matter Sulpher dioxide Nitrogen dioxide (As SO2) (As NOx) (PM10) (PM10)

RESOURCE CONSERVATION

FO Kg/ Mt of Rod (2012-13) 140

Furnace Oil (FO) & Power Consumption 123.5

Sterlite has maintained a consistency in power consumption.

120 100 75.39

80

FO Kg/ Mt of Rod (2012-13)

60 40 20 0 Alloy Rod

EC Rod

Year wise furnace oil consumption per fiber kilometer (in Kg) 36 Sustainability Report 2012–13


ENVIRONMENTAL MANAGEMENT

REDUCING NATURAL RESOURCE CONSUMPTION (WATER CONSUMPTION) Sterlite has a focused aim for conservation of water and encouraged some dedicated projects for reducing water consumption and water management inside the plant. With these endeavours, Sterlite has successfully reduced its water consumption on an average of 600M/3 month in the last three years. 6550

Treatment Plant (STP). The final discharge from the plant is used for horticulture application, thus developing a green belt. Treatment facility includes aeration tank (activated sludge process) followed by Dual Media Filter (DMF) & Activated Carbon Filter (ACF).

6522.75

6500 6450 6400

Series 1

6350 6274.75

6300 6250 6200 6150 Avg Water KL/ Month (2011)

Avg Water KL/ Month (2012)

Average monthly water consumption in KL

ZERO DISCHARGE WATER POLICY In order to utilise each drop of water, Sterlite treats its entire effluent and reuses in the plant. All the trade effluents from scrubber and demineralisation (DM) plant goes to Effluent Treatment Plant (ETP) & Multiple Effect Evaporator (MEE). And after being treated in ETP & MEE plant, the water is sent back to plant for reuse.

AIR POLLUTION CONTROL MEASURES Sterlite has also installed wet scrubbers for the stack of the rolling mills furnaces thus are being operated to leach out air pollutants from the smoke generated during smelting process.

WASTE WATER TREATMENT/ MANAGEMENT The entire plant effluent (from Scrubber, DM plant regeneration, Softener back wash) water is sent to this ETP plant where effluent is suitably treated and is recycled for in-house usage. Sewage water generated from canteen & washrooms are collected in an underground sump and are treated in the Sewage Sustainability Report 2012–13 37


ENVIRONMENTAL MANAGEMENT

BIODIVERSITY CONSERVATION Sterlite protects and utilises ecosystem services in a sustainable manner, while actively promoting maintenance and recovery of biodiversity through our business and local contribution activities.

MANAGEMENT OF CHEMICAL SUBSTANCES Sterlite minimises the risk of chemical substances causing serious harm to human health and the environment. Sterlite maintains strict control over the chemical substances which are being used, while, in line with the precautionary approach, taking steps whenever possible to reduce, substitute and eliminate the use of substances that have potentially significant impacts on the environment even in the cases where scientific evidence is not fully proven.

HAZARDOUS WASTE MANAGEMENT Sterlite maintains zero hazardous waste disposals to environment. All hazardous wastes are either treated inside the plant before disposed off or sent to different customers where those are used as the raw material of their product. We have an agreement with Pollution Control Board (PCB) & Central Pollution Control Board (CPCB) approved vendors for the disposal of the hazardous waste like Used oil and Sludge. Storm Water-Collection and Disposal: Storm water drains have be constructed. Storm water from the entire plot will be collected through network of storm drains.

Various awareness campaigns like Premises clean-ups, Green Ambassador, Green food festivals, Plantation drive Green Day celebration and much more were organised to spread ecoawareness and increase green footprints.

TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION i) Efforts, in brief, made towards technology absorption, adoption and innovation: Continuous improvement and innovation in cost reduction quality control and new product development is being made on an ongoing basis, resulting in improved processes and the adoption of new products. The technology used for manufacture of various products of the Company is fully absorbed and new innovations in process control, product development, cost reduction and quality improvements are being made on a continuous basis. ii) Benefits derived as a result of the efforts e.g., product improvement, cost reduction, product development: The Company is engaged in that business where product obsolescence is inherent. Power through open access technology absorbed, adopted and innovative means of power purchase through Bilateral trading incorporated, resulting in savings of Rs 1.16 Crore per month of power cost. Baghouse Technology for collection of SiO2 adopted, creating green environment and opportunity to generate revenue from waste.

Rain Water Harvesting System: Rainwater harvesting is proposed in the project to conserve the storm water. Adequate care has been taken while making efficient planning for percolation of rainwater into the sub-surface without directly draining it outside the Project and conserving maximum extent of rain water within the facility. In order to allow percolation of rainwater into the ground, rainwater harvesting structures along the boundary of the Project has been proposed. These will enhance the groundwater potential while raising the water tables in the area. World Environment Week 2013: This initiative, which urged every Sterlite employee to examine ecological & economic (ECO) aspects of product manufacture and supply from its most fundamental aspect received tremendous response from every departments The programme adopted a three-pronged approach: (a) REDUCE the use of non-bio degradable materials, without compromise on stringent product quality standards. (b) REUSE resources wherever possible. (c) RECYCLE resources wherever possible or dispose them responsibly.

38 Sustainability Report 2012–13

Multistage HCL wet scrubbing system to control very stringent environmental norms, this technology not only support emission controls in PPM but also support to create green environment by utilising minimum natural resources like water. Reduction in waste acid generation in Waluj plant by increasing Scrubber efficiency and thus reducing approx 20% fresh water usage. Installation of Flowmeters on Gas delivery system to check excess consumption and leakages, this is leading to savings of Rs 4.8 Cr/Year. In-house SiCl4 generation (backward integration) has resulted in savings of Rs 3.7 Cr/ Month.


CERTIFICATIONS

CERTIFICATIONS (c)The British Safety Council's (BSC) five-star audit is a unique service provided by the British Safety Council. The scope of the audit includes a review of the health and safety performance of businesses from the management of health and safety to the implementation of associated systems in the workplace. By applying the principles of audit to health and safety issues, organisations can improve operational performance and systematically reduce overall costs.

Sterlite's optical fiber facility has been audited by BVQi and certified for the ISO 14001:2004 quality management system and OHSAS 18001:1999. (a) ISO 14001 specifies the actual requirements for an environmental management system, applying to those environmental aspects over which the organisation exercises control. (b) OHSAS specifies the requirements for an occupational health and safety (OH&S) management system to enable an organisation to control its OH&S risks and improve performance. OHSAS 18001 has been developed to achieve compatibility with the ISO 9001 (Quality) and ISO 14001 (Environmental) management system standards to facilitate an integration of quality, environmental, occupational health and safety management systems.

This is to certify that:

Sterlite Technologies Ltd (Transmission Business Division) Survey 99/2/22, Rakholi, Silvassa 396230 INDIA operates a

OCCUPATIONAL HEALTH & SAFETY MANAGEMENT SYSTEM which complies with the requirements of

OHSAS 18001:2007 for the following scope The manufacture and supply of aluminium and aluminium alloy bare overhead conductors with or without galvanized/aluminised steel reinforcements, ACAR, for power transmission and distribution lines, aluminium and aluminium wire and wire rods.

Certificate No: OHS20818 Issued: 2 July 2012 Expires: 13 July 2015

William Smith Certification Manager

Originally Certified: 14 July 2009 Current Certification: 29 June 2012

Duncan Lilley Global Head – Assurance Services

Registered by: SAI Global Certification Services Pty Ltd (ACN 108 716 669) 286 Sussex Street Sydney NSW 2000 Australia with SAI Global Limited 11/12 Swastik Disa Business Park behind Vadhani Estate L.B.S Marg Ghatkopar (W) Mumbai 400086 India (“SAI Global”) and subject to the SAI Global Terms and Conditions for Certification. While all due care and skill was exercised in carrying out this assessment, SAI Global accepts responsibility only for proven negligence. This certificate remains the property of SAI Global and must be returned to SAI Global upon its request. To verify that this certificate is current please refer to SAI Global On-Line Certification register at http://www.saiglobal.com

Sustainability Report 2012–13 39


CERTIFICATIONS

40 Sustainability Report 2012–13


CERTIFICATIONS

This is to certify that:

Sterlite Technologies Limited (Transmission Business Division) Plot 20, Sector 10, IIE SIDCUL, Haridwar, Uttarakhand 249403 INDIA

operates a

ENVIRONMENTAL MANAGEMENT SYSTEM which complies with the requirements of

AS/NZS ISO 14001:2004 for the following scope The manufacture and supply of Aluminium and Aluminium Alloy bare overhead conductors with or without galvanized/aluminised steel reinforcements, ACAR, for power transmission and distribution lines, Aluminium and Aluminium wire and wire rods.

Certificate No: CEM21276 Issued: 19 October 2012 Expires: 2 November 2015

Samer Chaouk Policy, Risk and Certification Manager

Originally Certified: 3 November 2009 Current Certification: 19 October 2012

Tony Scotton Chief Executive Officer

Registered by: SAI Global Certification Services Pty Ltd (ACN 108 716 669) 286 Sussex Street Sydney NSW 2000 Australia with SAI Global Limited 11/12 Swastik Disa Business Park behind Vadhani Estate L.B.S Marg Ghatkopar (W) Mumbai 400086 India (“SAI Global”) and subject to the SAI Global Terms and Conditions for Certification. While all due care and skill was exercised in carrying out this assessment, SAI Global accepts responsibility only for proven negligence. This certificate remains the property of SAI Global and must be returned to SAI Global upon its request. To verify that this certificate is current please refer to SAI Global On-Line Certification register at http://www.saiglobal.com

Sustainability Report 2012–13 41


FROM CONCEPT TO PACKAGING

ENSURING GREEN PRODUCTION Sterlite's product manufacturing processes across locations have well defined and documented quality assurance and safety & environment management system. Further, necessary resources have been provided to assure quality and safety of materials, processes, products, packaging and environmental impacts.


CUSTOMER SERVICE

There is an opportunity to integrate sustainability into all aspects of the product development cycle – from concept and design to the manufacture, packaging, delivery and possible return of the product. Critical to the process of greening product development is the concept of examining a product's lifecycle. A lifecycle assessment (LCA) examines the “cradle to grave” aspects of a product – from the extraction of raw materials, through manufacturing, distribution, installation and use to final recycling or disposal. This critical thinking at the product design and development stages offers us an opportunity to reduce a product's negative impact on society and the environment in the many aspects of its life – something that would be of great value to our stakeholders, particularly our customers. Sterlite is wholeheartedly committed to improving product and service quality from the customer's viewpoint with the aim of maintaining and enhancing customers' satisfaction, reliability and trust. This reflects Sterlite's belief that our most important goal is to remain a highly trusted partner for our customers.

VERIFICATION OF PURCHASED PRODUCT Sterlite has established and implemented a process to ensure that in-coming materials are inspected to ensure that purchased product conform to specified requirements. All products are visually inspected on receipt, unless otherwise indicated. Wherever required in a customer contract, the need to verify purchased products at sources, the intended verification arrangements and method of product release are included in the purchase order/documents.

As part of Excellence mission throughout Sterlite and Business Plan, a few initiatives that have been implemented include: 1) Establishment of Centre of Excellence, a state-of-the-art R&D centre, aimed at enhancement of product quality and reliability of optical fiber and development of visionary products for future. 2) Establishment of World-class Reliability Lab for benchmarking and testing reliability of optical fiber. 3) Enhancement projects for all existing products. 4) FMEA program is institutionalised to analyse safety, quality and reliability risk all processes and products.

INITIATIVES AIMED AT IMPROVING CUSTOMER SERVICE Sterlite aims to be a truly customer-led organisation. As part of R&D, the application Engineering function has been created who will be interface between Quality & Customer Assurance/Plant and Customer. Besides, a networking laboratory is under installation, and will cater support to end-users.

RESPONSIVENESS AND CUSTOMER SERVICE Sterlite has a Customer Assurance function as part of Quality Department. A full-time dedicated Customer Assurance team responsible for: Feasibility study for New Customer Specification Requirements Customer Complaint analysis and resolution A complaints-handling process is accessible to all complainants. Information is made available on the details of making and resolving complaints. The detail is sent to all customers with every shipment. The complaints-handling process and supporting information is easy to understand and use. Customer can raise complaint via phone, fax or e-mail. Local call numbers and e-mail ids are easily available to the customers.

MATERIALS USE Sterlite has established and maintained documented processes to ensure that purchased materials and services conform to specified requirements (ISO 9001 and TL 9000).

In case of field complaint, we have dedicated technical experts ready for providing service to field.

Sustainability Report 2012–13 43


QUALITY MANAGEMENT

A VISION BEYOND TL 9000, ISO 10002 AND ISO 9001 CERTIFICATION

CUSTOMER FEEDBACK AND ISO 10002 CERTIFICATION

Sterlite Technologies Ltd is one of the seven companies in the world and only company in India certified to TL9000 standard both for optical fiber and optical fiber cable products. A quality management system such as ISO 9001:2008, ISO 10002:2008 and TL 9000 is based on following elements: The use of interrelated processes. Document and record control. Corrective and preventive action. Internal audits. Monitoring and measurement. Third party audits. A basic model for continual improvement.

Customer feedback including complaints is an important input for an organisation to improve its services and products. Handling complaints involves finding out the root causes of the problem. For businesses to succeed, customer feedback is most important. ISO 10002 aims to benefit organisations and complainants through a transparent complaints-handling process that can drive both improvements and savings. ISO 10002 certification includes the following:

As a key supplier to the telecommunications industry, achieving TL 9000 certification was a business necessity. TL 9000 is the telecommunications industry's enhancement of ISO 9001. It is arguably the most robust and onerous of all industry-specific quality management system standards. TL 9000 contains more than double the requirements of ISO 9001, including ongoing data collection and reporting. TL 9000 implementation is an opportunity to develop a formal value-added quality management system.

BENEFITS OF ISO 9001:2008 AND TL-9000 (H) R5.0/R4.5 CERTIFICATION A quality management system such as ISO 9001:2008 and TL 9000 has the following benefits: Processes that were previously successful are now visible to everyone. Gaps, inefficiencies, and opportunities are now visible to everyone. The impact of change is now easily visualised and understood by all. External customer requirements seamlessly integrated with business processes.

COMPETITIVE ADVANTAGE Online submission of TL data in Quest Forum allows certified companies to benchmark themselves against their competitors within their service category. This means that at any given time they will know if they are best in class, worst in class, average, etc. for on time delivery, customer complaints, and customer complaint closure responsiveness. Organisations drive further product and service improvement through a strong commitment to quality and business excellence, thus boosting their time-to-market and competitive advantage. Establish and maintain a common set of telecom QMS requirements, which reduces the number of standards for the industry. 44 Sustainability Report 2012–13

System Study and GAP Analysis, Documentation-ISO Quality Manual Preparation, Records Implementation, ISO 10002 Certification Trainings, Internal Audits & MRM Guidance through a Successful Audit Closure of the Non-Conformities raised

ISO 10002:2004 ADDRESSES THE FOLLOWING ASPECTS OF COMPLAINTS HANDLING: Enhancing customer satisfaction by creating a customerfocused environment that is open to feedback (including complaints), resolving any complaints received, and enhancing the organisation's ability to improve its product and customer service; Implementing and certifying your complaints management system demonstrates to stakeholders that you have a real commitment to managing customer care issues and you have processes in place to handle, analyse and review complaints. Top management involvement and commitment through adequate acquisition and deployment of resources, including personnel training; Recognising and addressing the needs and expectations of complainants; Providing complainants with an open, effective and easy-touse complaints process; Analysing and evaluating complaints in order to improve the product and customer service quality; Auditing of the complaints-handling process; Reviewing the effectiveness and efficiency of the complaints-handling process.


CERTIFICATIONS

Certificate of Registration INFORMATION SECURITY MANAGEMENT SYSTEM - ISO/IEC 27001:2005 This is to certify that:

Sterlite Technologies Limited Head Office 4th Floor, Godrej Millennium 9 Koregaon Road, Pune Maharashtra 411 001 India

Holds Certificate No:

IS 583566

and operates an Information Security Management System which complies with the requirements of ISO/IEC 27001:2005 for the following scope: The Information Security Management System of Sterlite Technologies Limited is applicable to the IT Operations that are supported by functions like Human Resources Department, Administration Department, Finance Department and Legal Department. This is in accordance with the Statement of Applicability, Version 2.0 dated 27th December 2012. (This Registration covers the activities delivered at the locations as shown on page 2 & 3 of this Certificate)

For and on behalf of BSI: Gary Fenton, Global Assurance Director Originally registered: 14/02/2013

Latest Issue: 14/02/2013

Expiry Date: 25/01/2016

Page: 1 of 3

This certificate was issued electronically and remains the property of BSI and is bound by the conditions of contract. An electronic certificate can be authenticated online. Printed copies can be validated at www.bsi-global.com/ClientDirectory or telephone +91 11 2692 9000. Further clarifications regarding the scope of this certificate and the applicability of ISO/IEC 27001:2005 requirements may be obtained by consulting the organization. This certificate is valid only if provided original copies are in complete set. Information and Contact: BSI, Kitemark Court, Davy Avenue, Knowlhill, Milton Keynes MK5 8PP. Tel: + 44 845 080 9000 BSI Assurance UK Limited, registered in England under number 7805321 at 389 Chiswick High Road, London W4 4AL, UK. A Member of the BSI Group of Companies.

Sustainability Report 2012–13 45


RESEARCH & DEVELOPMENT

Sterlite recognises the value of the human mind and its abilities. Sterlite has accelerated its efforts in this area with the formation of Sterlite Centre of Excellence, a state-of-the-art, dedicated R&D resource and facilities and an expanded technical team to further leverage capabilities in support of Sterlite. Technologists at Sterlite understand that what supports its customers are today and tomorrow's product advances and manufacturing advances through technology innovation and application. Unlike many R&D institutions in academic and industrial environments – every technologist at Sterlite understands the realities of commercial manufacturing though daily exposure to 'real world issues' of production and in so doing has a more pragmatic and acute awareness of 'design for manufacture' and client impacts. !is results in products that have lower capital expenditure and operating expenditure than competitors and are more easily deployed. From implementing new manufacturing processes like six sigma and lean manufacturing, to project management tools that ensure that cost is minimised and quality is maximised, the Sterlite Centre of Excellence continually innovates and makes advances in support of the Company's customers. A metric of success in Sterlite's technology development programme is the fact that the Company has an enviable patent portfolio of 46 patents granted in India and globally. This has enabled Sterlite to gain inroads into several focus markets and to acquire quantifiable market share. 46 Sustainability Report 2012–13

A. SPECIFIC AREAS IN WHICH THE COMPANY CARRIED OUT R&D: I) Development of Dry-Dry i.e. totally gel-free cables, suitable for duct, aerial (LA) and direct buried as well as indoor/outdoor applications UT (UniTube) and MT (Multitube) designs. ii) Development of specialised conductor products such as ACCC conductor and GAP Conductor. iii) Development of Ribbon cables UT up to 144F and MT up to 864F; Microcables with G655 for special applications (OFC – Silvassa); Defence/Tactical cables like “Intrusion proof” (Cable with sensor fiber layer) iv) Development of Hybrid drums to eliminate wood consumption in packaging.

B. BENEFITS DERIVED AS A RESULT OF ABOVE R&D BENEFITS TO CUSTOMERS: i) Higher fiber count cables further reduced installation costs with Ribbon and totally Gel-free cables. ii) Reduction in chances of damage during transport by hybrid drum. iii) Shelf of packing material and finished goods increased by hybrid packing.


RESEARCH & DEVELOPMENT

iv) Higher ampacity conductors offer superior thermal resistance and improve the efficiency in high current transmission. v) Microduct fiber optic cables save about 8% of the total capex for the customer, on account of reduced installation costs. vi) Bend insensitive fibers will help end- customers access the phenomenal capacity of optical fiber for in-home and/or business applications such as high-definition video, high speed Ethernet and a superior Internet experience at affordable rates. BENEFITS TO STERLITE: i) Optical fiber cables product portfolio expanded ii) Introduction of specialised products has enabled the company to gain market access through product differentiation. iii) The introduction of a differentiated portfolio of optical fiber products has provided the Company opportunities to access higher revenues as well as margins via different segments of a fast-growing telecom market.

C. FUTURE PLAN ON R&D I) Further reduction in size of microcables for improved installation / blowing performance and duct utilisation. ii) Develop micromodule based product lines; flexible and easy access fiber modules. iii) Develop OFC Datacom / Premise cables product lines with tight buffers and other fiber units for Indoor/Outdoor applications. iv) Develop FTTA / DAS cable solutions, only Fiber or Hybrid Copper and Fiber designs. v) Focus on improving efficiency of manufacturing processes of existing product lines. vi) Develop products that would serve the needs of customers' product deployment and applications. vii) Proactively assess future market applications and initiate development of products to meet customers' future needs. viii) The Center of Excellence at Aurangabad is well under way in terms of organization and capability building. ix) Applications Engineering capability will be developed to help the Company to understand its customer's unmet needs and gain customer traction. Latest Sustainability initiatives in OF manufacturing Design: Optical fiber RI profile is designed in the name of G657 A2 and G657 B3 to improve the bend loss with fluorine doping in clad region. One of the fluorine doping processes was carried out in 2012-13 in SOC DEPOSITION machine and found no significant improvement in fiber RI profile. However, the confidence level was increased in the process stability point during the experiments. We are encouraged to demonstrate the capability in CORE DEPOSITION machine in 2013-14.

Technology: A method was adopted for doping the fluorine through burner system (through inner-shield nozzles, fumes tube, and directly to soot loaded flame) in SOC DEPOSITION machine in 2012-13. After reviewing the results, it was decided to use inner shield nozzles of burner system with low deposition rate which favors to try in CORE DEPOSITION machine. The experiments will be done in 2013-14. Sustainability: There is a concern in health and environmental aspects during doping of fluorine precursor in CORE or SOC DEPOSITION machines. We reviewed the aspects and took preventive action to address the aspects. As per the outcome of the review, we performed HAZOP study by a competency authority, Chilworth Technology Pvt Ltd, Mumbai. We provided heating element with insulation in the suction ducts of the SOC deposition machine where the trails were taken to address the safety aspect. We made sure that the maximum numbers of SOC depositions machines were run when we took trial in one SOC deposition machine to address the environmental aspect. This experiment was done in 2012-13. We will continue the activity in CORE deposition machine as it is low deposition rate burner system and it favors fiber RI profile design. This activity will be done in 2013-14 after fulfilling the conditions recommended by HAZOP study.

TELECORDIA CERTIFICATION Sterlite's single layer optical fiber cable was tested by Telecordia to verify Telecordia GR -20-CORE generic requirements for optical fiber and optical fiber cable Issue 3, May 2008. Certificate of Compliance issued by Telecordia to document the degree to which the results of the test program comply with the requirements described in Telecordia GR-20CORE, issue 3.

PRODUCT END-OF-LIFE Sterlite has established and maintained an integrated set of methods that covers the life cycle of the products. The method contains appropriate processes, activities, and tasks involved in the concept, definition, development, introduction, production, operation, maintenance, and disposal of products, spanning the life of the product. Further, we have established and maintain a documented procedure for the discontinuance of manufacturing and/or support of a product. Initiatives aimed at improving the quality, safety and long-term reliability of products include the following: Customer Satisfaction Index >95% Fix Response Time (FRT) to be >95% (Average time taken to close the major & minor complaint as per TL 9000 ) Improve Raw material FPY (In process & IGI) 95 TO 98% For disposal of hazardous waste, the OFC Unit has taken a conscious call to dispose off all hazardous waste through designated agencies, even at a cost. Sustainability Report 2012–13 47


MANAGING

THE SUPPLY CHAIN

We expect our suppliers and members of our supply chain to make every effort to limit the environmental impact of their business operations and to have appropriate programs in place to help achieve this objective.


SUPPLY CHAIN MANAGEMENT

Sterlite's supply chain is extensive. Our supplier code of conduct and a number of our sustainability programs directly address sound environmental practices in the production and sourcing of what goes into Sterlite's products and packaging. Further, we are quite aware of the fact that understanding the needs and expectations of our customers and suppliers and the evolving trends, opportunities and threats to our business can only be achieved if we work closely with our commercial partners and industry bodies, and engage with our competitors. Our commercial and management team engages in constant dialogue with these groups and we are evolving processes to enable this constant communication to be strategically captured as part of our evolving stakeholder engagement plan. Our customers' satisfaction and relationships are assessed by Senior executives who make frequent visits to customers to get direct feedback on our products and services and other related issues. Customer satisfaction surveys are also conducted at periodic intervals using third parties. The feedback is shared in management review meetings to take appropriate corrective actions and to address the requirements of customers. We have a dedicated Technical Services resource for quality assurance and for monitoring of all physical quality parameters.

OUR SUPPLIERS Due to the scale of our operations, we create strong requirements for products and services. We actively encourage vendors close to our operations, creating opportunities for local employment and development. We work closely with our suppliers to ensure the safety of their products and we are aiming to implement a consistent level of supplier standards across the Group, while concurrently working to develop as much local sourcing as possible. Further, our commitment to an ethical and sustainable supply chain is absolute, committed to working with our supplier base to ensure: They are fully compliant with Sterlite's Environment, Health and Safety (EHS) policy. They are satisfying the needs of our business around quality, reliability, innovation and value for money. They are assessing their sustainability risks and identifying opportunities for improvement and innovation. We collaborate on continuous improvement As a process, we have made EHS policy, a part of supplier evaluation. Some percentage of the suppliers' evaluation is done on the basis of EHS, and their performances are evaluated on a quarterly basis. While there is no mention of this in the POs, the safety policy is attached while signing contracts. Further, the Work permit related to the job to be carried out at our factory is issued only after vendor follows all the safety norms.

PRODUCT TRANSPORT & PACKAGING A product's packaging can constitute a significant portion of its overall environmental footprint. Several methods have been established to verify packaging and labeling to ensure that the packaging and labeling of cables conform to specified requirements. These measures are implemented on products ready to ship, and the verification activities include marking, labeling, customer-specific and other delivery related documentation, customer-specific marks, if any (on product or product-packaging) and quantities to be shipped. Sterlite continues to reinforce its commitment to sustainable development by rolling out a new alternative to packaging power cables. In 2012, Sterlite introduced a new approach to storage/shipments of our Power Cables, combining packaging improvements as well as switching from wooden laggings to Polypropylene (PP) Flex. This initiative has saved materials and reduced packaging weight substantially. This environmentally conscious program also promotes cable yard cleanliness and helps protect the environment. Further, together with our Electric Utility customers, we are now able to report “tree saver” and cost avoidance data, which has been critical in measuring the program's success.

STATUTORY REGULATIONS As per Indian Forest Act 1927, (section 32), the state governments are empowered to formulate laws pertaining to cutting, sawing, conversion and removal of trees and timber' from protected forests. Most of the state governments have come up with laws for regulating tree cutting.

ALTERNATIVE PACKAGING All- Steel Drums are constructed from Mild Steel channels, angles, sheets, rods and hardware, and covered with layers of solid PP sheets in place of lagging. These drums are recyclable and is collapsible, which enables them to be transported efficiently and assembled at point of manufacture. After use, they can be dismantled and stored or transported back for refurbishment and re-use.Further these are environmentfriendly and offer the following benefits: Saves wood Strength & Durability Recyclable Scrap value Can be recycled up to 3 times Weather resistant Ovality problem not faced in Steel Easy Transportation at site Free from Transit Damage

Sustainability Report 2012–13 49


SUPPLY CHAIN MANAGEMENT

Outer Covering of Conductor with PP Sheet: PP sheet is a new option for the replacement of wooden lagging. Extensive testing has been done by Sterlite and can be used for safe delivery to the customer. Features and benefits include: Optimum Mechanical protection without breaking/ splintering like - Wooden Batten. Good Impact and Puncture Resistance with any mechanical collision. Absorbs Mechanical Shock without transfer to Conductor. Good ESCR-Long lifetime, unaffected by any climatic change or UV exposure like-Wood. Zero Risk of Deterioration and Fungus. Eco-Friendly and Recycled. Nail Free, i.e., No risk of Nail damage to Conductor. Fast unpacking at installation site i.e.- removed easily in seconds. Reusable i.e.- can be refitted after part drum installation. All-Steel Drums: Size Optimization for Logistics efficiency In view of the sturdiness of the All-Steel Drum, it is possible to select one which is suitable for a range of loads and conductor lengths. Sterlite's approach is to maximise the conductor weight per drum and accordingly also increase the Standard Length of conductor per drum. The following key factors have been critically evaluated before finalization of drum dimensions, and conductor with Standard Lengths and loads: Conductor manufacturing machine capacity and optimisation Load carrying capacity of the drum Transportation optimisation of the outward-bound drums by making the dimensions compatible with common truck and trailer sizes. Handling Capability of Gross Weight at site for unloading and stringing Availability of Raw Material (Steel sheets, HDPE sheets)

50 Sustainability Report 2012–13

With this exercise, it is possible to select a maximum of two sizes that meet all the loading and length objectives. It is important the sizes selected should be amenable to transportation by conventional means of transport. RECYCLING OF PACKAGING MATERIAL RECEIVED FROM VENDORS The OFC unit has taken an initiative to receive FRP rods, Filling Jelly, Soap Solution, Rip Cords & Acetone in recyclable drums/spools. These packaging materials are returned to vendor after use & recycled. This is an initiative to take care of the environment by conscious use of recyclable packaging. There is also a constant effort & focus to increase products with recyclable packaging. Maximising the use of Fiber Spools: Between OF & OFC plants, we try to maximise the reuse of Fiber spools in order to minimise the use of virgin polymers.


SUPPLY CHAIN MANAGEMENT

Reuse of packaging materials: Sterlite has started re-using its packaging boxes to reduce paper and plastic consumption. We request all our customers as well as vendors to send back the packing boxes.

Minimum paper consumption: No unnecessary prints or prints taken on one-side used paper; gate pass and work permits are communicated through emails and oracle system.

Monitor energy use and raise employee awareness: Switching off Research for reducing chemical usage:

ACs, lights and fans are highly encouraged and "save energy" posters exist inside the plants to create employee awareness.

OTHER INITIATIVES

After several hours of R&D, we will now use Argon instead of Helium. This willbring down the chemical consumption level.

Employee awareness for fuel consumption: All Sterlite employees are provided with company transport facility (bus service) to save fuel consumption. Sterlite never encourages its employees to bring theirpersonal vehicle. equipments are attended at top priority.

World's prohibited chemicals not to be used: Any type of prohibited chemicals like CFC, HFC, are not used.

Soil and ground water contamination: To bring zero soil and water contamination, we maintain zero leakage in the effluent lines inside the plant. Any such kind of incident or potential lines / equipments are attended at top priority.


CONNECTING WITH THE

COMMUNITY

Sterlite strives to give back to the society in such a way that needs of the underprivileged sections are responded to and improvements made in the quality of their lives – in general, as well as particularly in the domains of Environment, Health, Education and Women's Empowerment.


SUSTAINABLE DEVELOPMENT

At Sterlite, a sensitive concern for the community and the world makes our business truly sustainable. As a responsible corporate, Sterlite is engaged in several CSR initiatives, expressed through various communication tools and NGOs. In line with this, Sterlite Tech Foundation – the CSR arm of Sterlite – has been set up. This latest initiative focuses on creating sustainable livelihoods for local communities, as well as those who belong to under privileged section of the society. The concept of the project is to build communities that are more skilled and capable of sustaining themselves independently by capitalising on the company's expertise, knowledge and competencies, rather than merely providing continued financial support. It directly provides solutions to the critical community

problem of unemployment, through a method, which is "development" oriented and lays the foundation for long-term success of the society. We are increasingly seeking to align our community development efforts with our corporate strategy while maintaining longstanding relationships that benefit both the communities in which we live and work and our company. To this end, Sterlite undertakes various activities based on an assessment of needs and aspirations of the community. The company's sustainable development initiatives span villages in the remotest locations in Maharashtra, Haridwar and the Union Territory of Dadra and Nagar Haveli.

Monitoring by Sterlite team Monthly progress report Inputs from Advisory committee

PROJECT MONITORING

Impact study

Sustainable Development Working Model PROJECT APPROVAL

Acceptance of the proposals Sanction of Project Budget

PROJECT EVALUATION

Identification of credible NGOs Submission of project propsals from NGOs Assessment of proposals by Sterlite

Sustainability Report 2012–13 53


CASE STUDY: HEALTH

MOBILE DISPENSARY Objective: Improve health standards among the poor & underprivileged villagers. Impact: 27 villages in & around Silvassa, covering over 100,000 patients in 77 months Location: Dadra & Nagar Haveli Partner: Indian Red Cross Society Initiation: Since March 2006

CASE STUDY Sterlite's Mobile Dispensary celebrates its 6th year in operation...has impacted over 27 villages in & around Silvassa, covering over 100,000 patients in 77 months. The Union Territory of Dadra and Nagar Haveli is composed of about 72 villages. The population in this area is almost 62% from the tribal communities. More than half the population did not have accessible primary health care services within 10 km of their residences. Realising the critical need of the local population in Dadra & Nagar Haveli for primary health care services, Sterlite initiated a mobile dispensary project in 2006, as part of its Sustainable Development Program. Sterlite has partnered with The Indian Red Cross Society. The Mobile Dispensary is a classic “PublicPrivate partnership” project undertaken in collaboration with the local government and The Indian Red Cross Society to provide primary healthcare services via a mobile dispensary. For the project the vehicle for the dispensary has been availed through the Member of Parliament Local Area Development (MPLAD)

54 Sustainability Report 2012–13

scheme with Sterlite taking care of the operating costs and the Indian Red Cross Society implementing the project. Since its initiation, the project has consistently received very encouraging feedback from the people who have accessed this service. Says Bebiben, a resident of Kanadi village, “The medicines supplied are effective. I am very grateful that I have a qualified doctor's service available at my doorstep when I need it. This saves me time and cost as I do not need to travel.” In 2011, Sterlite has also commissioned an independent, 3rd party impact assessment study under Dr. Dhruv Mankad, a Community and Public Health Expert, to conduct for the Mobile Dispensary Project. The Impact Assessment (IA) study of the project summarised that the Sterlite Mobile Dispensary has provided health services to a population residing in 27 villages which are remote and difficult to access. The dispensary has had a significant impact on the lives of more than 35000 beneficiaries by providing reliable, easily accessible and free of cost primary medical care at the doorstep. It has treated simple illnesses like scabies, diarrhoea, fever, malaria and cough. As a result, there has been a saving of Rs 300 to Rs 600 per episode of illness for each of the beneficiaries. Additionally corporate volunteers from Sterlite also visit the villages to ensure proper functioning of the mobile dispensary and understand the difficulties faced by the villagers. Periodic preventive awareness programmes are organised, for the villagers to educate them about various ailments and overall health and hygiene.


HEALTH INITIATIVES

BLOOD DONATION CAMPS Objective: Voluntary blood donation to blood banks Impact: 610 plus units of blood collected through 11camps Location: Dadra & Nagar Haveli, Aurangabad Partners: Rotary Club, Indian Red Cross Society, Dattaji Bhale Blood Bank Initiation: Since December 2005

PROJECT “SIGHT FIRST”FREE CATARACT OPERATIONS Objective: Improve health standards among the aged underprivileged villagers Impact: 550 cataract operations provided new vision/eye sight to older Location: Aurangabad Partner: Global Medical Foundation, Aurangabad Initiation: August 2006

NUTRITION AWARENESS CAMPS Objective: Educative program on preparation of nutritious meals for pregnant & lactating mothers. Impact: 450 women from 10 villages Location: Dadra & Nagar Haveli Partner: Food & Nutrition Department (Govt of India) Initiation: July 2006

EYE CHECK-UP CAMPS Objective: Improve health standards among the underprivileged villagers Impact: Checkups conducted in 65 plus villages benefitting 6437 persons Location: Dadra & Nagar Haveli, Aurangabad Partner: Rotary Vapi Riverside, Global Medical Foundation, Aurangabad Initiation: June 2007

SANITATION & DRINKING WATER FACILITIES Objective: Improve sanitation & potable water facilities at a school for the underprivileged. Impact: 500 plus school children are using the facilities Location: Shevaga Village, Aurangabad Remand Home Partner: Dilasa, Remand Home Initiation: February 2006

SUPPORT FOR INFANT HEALTH: BABY WARMER Objective: To save life of premature and under weight babies Impact: Life of 150 babies has been saved Location: Bhartiya Samaj Seva Kendra, Aurangabad Partner: Sterlite support Period: June 2007

Sustainability Report 2012–13 55


EDUCATION INITIATIVES

TEACHERS' TRAINING PROGRAMME Objective: To enhance the teaching skills of the teachers at Silvassa, to increase the quality of education Impact: 38 teachers trained and motivated. Location: Lions' School, Silvassa Partner: CYDA Initiation: March 2008

LITERACY DRIVE: Computer, music and singing Objective: Computer education for underprivileged children Impact: 515 students Location: Aurangabad Remand, Shruti Vani Vidyalaya, Dadra Municipal School Partners: Remand Home, Apan Janavikas Pratisthan Initiation: August 2006

56 Sustainability Report 2012–13

SCHEME “LEARN TO EARN” Objective: Vocational training to manufacture cottage industry products like Chalk & Candle, besides musical education and computer education Impact: 195 children Location: Aurangabad Remand Home Partners: Remand Home, Apan Janavikas Prathisthan Initiation: August 2006


CASE STUDY: EDUCATION

Sterlite believes that technology can change the education landscape of our country. Through ‘viable technology’ we aim to mitigate the effects of unavailability of teachers as well as of their dismal quality. Keeping in mind the vision of reaching out to children and communities through technology, Sterlite Tech Foundation has started a pilot project in a few Municipal Corporation of Greater Mumbai (MCGM) schools in Mumbai. The aim of the project is to improve the quality of learning of children through direct interaction with the children of these schools and build capacities of the in house teachers through Virtual Classrooms.

The project is reaching out to 2000 students and 50 teachers of 25 MCGM classrooms in its present state. Our experts come from diverse backgrounds like PhD graduates from education college of Columbia, current teachers of American School of Bombay and Akanksha Foundation and lecturers of premier colleges in Mumbai. By June 2013, MCGM will set up this infrastructure in 400 more schools to use the relay facility. The foundation aims to use this technology to directly impact learning in higher grades (5-10). This effort will help reach an estimated 20000 students and 500 teachers in the next three years.

An expert teacher from our foundation delivers a lecture from the studio through VSAT technology which is transmitted live to all the classrooms. The children at the other end have a large screen to observe the lecture, a webcam as well as a mic for interaction. The idea is to leverage the few excellent teachers to teach multiple classrooms. The learning environment is designed to be dynamic, where teachers can share videos, use smart boards for explanations and can interact with students. Since December 2012, Sterlite Tech Foundation has been delivering live sessions to 45 Municipal Corporation of Greater Mumbai (MCGM) classrooms in the upper primary section (5-7). Prior to the commencement of live sessions, we conducted a one-day orientation of all the Headmasters and teachers followed by a 3day teachers training. The objective of this training was to brief the teachers about their role as facilitators and reach out to students.

Sustainability Report 2012–13 57


EMPOWERMENT

TAILORING Objective: Vocational training in tailoring to promote selfsufficiency amongst underprivileged women Impact: 704 women trained Location: Pune Partner: Swaroop Wardhani Initiation: June 2006

NURSING Objective: Vocational training in nursing to promote selfsufficiency amongst underprivileged women Impact: 344 women trained Location: Pune Partner: Swaroop Wardhani Initiation: June 2006

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VOCATIONAL TRAINING TO VISUALLY IMPAIRED: COMPUTER Objective: Building skills for the Blind to make them stand on their feet Impact: 45 blind youths trained in MSCIT and basic computer courses. Location: Aurangabad Partner: National federation of Blind, Mumbai Initiated: October 10


CASE STUDY: EMPOWERMENT

With the progress of communities being dependent on the working generation, Sterlite focused its initiatives on the welfare and well-being of women from the sections of underprivileged society. The underlying objective was to give them the opportunity of a better standard of living for themselves and their families. Sterlite firmly believe that empowering a woman means empowering whole family. Sterlite continues to support a vocational Training course in nursing as well as tailoring to promote self-sufficiency amongst underprivileged women, especially girl student dropouts, widows, divorcees and women from BPL segment in and around the villages of Pune.

VOCATIONAL TRAINING PROGRAMME The main aim of this programme is to enhance the quality of life of women through increased knowledge and skills. The Foundation also realised that merely imparting literacy would not be sufficient. The women need vocational training or skills also to uplift their economic status. They should be able to stand on their feet and provide support to their families. The discussions with women revealed that they are also interested in learning some skills to supplement their household income. They showed interest in learning nursing aid, stitching and tailoring. To facilitate these kinds of vocational training, Sterlite has joined hands with Swa'-Roop Wardhinee, a registered charitable trust in Pune. Since 1979, the trust is working mainly for children and women from economically/socially down trodden strata of the society, through various informal educational activities. Through various projects, Sterlite reaches to the door step of needy people in the society.

Sterlite has initiated activities for students as well as women belonging to the lower income group who expressed their aspirations. Typically, the women in such areas prefer to be selfsufficient due to the following reasons: Insufficient income of the family Discouraging educational background of the family Family head addicted to bad habits Inability of the women to run the family on their own due to lack of sufficient education Need for additional income for Widows, divorcees etc. Taking into considerations, all these aspects, Sterlite Tech foundation with Wardhinee started vocational Training courses for women, including Tailoring and nursing aid. The Tailoring course has brought forth the following benefits: Number of beneficiaries: More than 650; of which nearly 30%- 40% are divorcees. A group of 11 women trained at the centre was successfully motivated to start business. Most of them are earning good from stitching dresses, pants etc in their residential area. One of the students from the centre has started a fashion designing course, and has trained 100 needy women. Those who attended the Nursing Programme too have benefitted significantly. Every student has received a placement offer and today work in hospitals. The course has helped build their knowledge and skills, besides giving a boost to their confidence. Every month they earn around Rs 3500 – 4500; this additional income helps them support their family. They have also earned respect within their family as well as the society they live in. Today, though there is a shortage of assistant nurses in several hospitals across the city of Pune, Sterlite's initiatives have helped bridge the gap by providing skilled personnel to the healthcare industry. Sustainability Report 2012–13 59


CASE STUDY: EMPOWERMENT

Sulabha Vasant Thomare from Asade village, Mulshi Taluka works as Assistant Nurse at KEM Hospital

Jayashree Dhige

Belonging to the economically weak strata of the society, Sulabha managed to complete her standard tenth education with great difficulty. Her family comprised her parents and seven brothers, and her mother constantly worried about the deformity in her eyes and her marriage prospects.

Jayashree, who was quite a brilliant student, struggled to give her standard 10th examinations, as her family was financially weak. However, luck favoured her when the entire village came together and offered her the amount required to complete her tenth standard education. Finally, when the results were announced she had obviously scored good marks in her exam.

One day, during a chance conversation with one of her friends, Sulabha heard about the Assistant Nursing course being conducted in Mulshi. She immediately let her parents know about her desire to pursue this course, and they agreed. Sulabha grasped the subject very well, and could answer most of the questions in the classroom. She feels that in addition to learning about nursing skills, the course offered her the opportunity to pick up communication skills. After completing the course, she applied for a job in KEM Hospital, and was promptly selected with a starting salary of Rs 5000. And that's not all‌ with her own savings, she got her eye surgery done! Sulabha has also found herself a good life partner.

Later, she heard about the nursing course and joined the training sessions. After completing the course, she had a job in hand with a starting salary of Rs 3000 per month. When she gave the first salary to her father, his happiness knew no bounds. He even persuaded her to complete her junior college studies. And known to be the hardworking girl she was, she did a brilliant job of pursuing her studies while performing her duties as an Assistant nurse.

Today, Sulabha earns a salary of Rs 10,000 per month. Another opportunity has come her way, and if all goes well, she may work for the Central Government Hospital, Pune. Sulabha's determination and hard work has paid off, and she will continue to be a role model for all students.

Today, she works in two hospitals doing day and night shift, and earns around Rs 15, per month. Her parents have also found her a good life partner, and they will be getting married this year. Jayashree's success is the perfect example of how willpower and determination can open up a path to success.

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CASE STUDY : ENVIRONMENT

CHECK DAMS Objective: Conservation of rainwater Impact: 18 check dams in 14 villages, storing 132.75 TCM of water, benefiting 32,000 villagers Location: Aurangabad Partner: Dilasa Initiation: July 2006

CASE STUDY Aurangabad and its surrounding districts in Western India are prone to a chronic shortage of water for drinking and irrigation. The excessive use of water through wells and bore wells causes depletion in ground water resources. Although the rain water recharges the water table every year during the rainy season, it cannot satisfy the growing need of population because of its own limitations. The livelihood of the inhabitants of villages in this region is dependent on rain-fed farming and lack of an assured source of income is a stark reality. Additional recharge / water conserving structures like check dams have therefore become a necessity.

RESPONSIBILITY TOWARDS WATER CONSERVATION One of Sterlite's core manufacturing facilities is located at Aurangabad- a region where the local community is predominantly dependent on agriculture as a means of sustenance. The use of water being an integral part of Sterlite's manufacturing operations, the Company wanted to ensure that it could offset some of the water consumed by the facility, through effective water conservation measures.

Since 2005, Sterlite has partnered with Dilasa Janvikas Pratishthan, a reputed non-profit organisation that is focused on Natural Resource Management. The intervention has resulted in construction of 18 check-dams/weirs in 14 villages, conserving over 130 thousand cubic meters (TCM) of water.

IMPACT OF STERLITE'S INTERVENTION The check dams have helped to increase the availability of ground water for drinking and irrigation, as seen from the increase in water availability in wells located downstream of these dams. The construction of the check-dams has had a socio-economic impact on the inhabitants of the villages. Farmers in these villages have been able to cultivate crops with goods yields in the Rabi (winter) season, which they were unable to do earlier. As a consequence, there has been an average increase in family income by about Rs 20,000, providing the farmers the financial independence to provide a better standard of living for their families. The check dams has proven as an effective and sustainable tool for drought proofing and has impacted about 27,800 lives.

“ We were not able to grow Rabi season crops in our village for nearly 10 years due to chronic drought.” However, after the construction of check dams, we are now growing vegetables and wheat. - Tukaram Ghavate, a farmer in Karanjgaon village, Maharashtra

Sustainability Report 2012–13 61


ENVIRONMENT INITIATIVES

WATER STORAGE CAPACITY (IN TCM)

Type of Structure

Sr. No.

Name of Village

01

Shevaga

Check Dam

5.0

02

Ladsavangi

Check Dam

10.8

03

Karhol

Check Dam

4.83

04

Shekta

Check Dam

4.0

05

Shekta

Check Dam

7.7

06

Karanjgaon

Check Dam

4.98

07

Shekta

Check Dam

7.3

08

Hasnabadwadi

Check Dam

3.3

09

Hirapur

Check Dam

4.5

10

Goaltgaon

Check Dam

6.6

11

Hasnabadwadi

Check Dam

3.0

12

Sayyadpur

Check Dam

12.6

13

Murumkheda

Check Dam

5.9

14

Kaccheghati

Check Dam

10.6

15

Warud

Check Dam

3.2

16

Warud

Check Dam

1.9

17

Bhogalwadi

Check Dam

1.5

18

Hatmali

Repair of KT Weir

35.0

Total = 14 villages

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TCM of Water Conserved

132.75


ENVIRONMENT INITIATIVES

AFFORESTATION Objective: Plantation in community areas Impact: 2,000 saplings on 4.5 Hectares Location: Aurangabad Partner: AFPRO and Dilassa Initiation: August 2007

BIO-GAS PLANT Objective: Promotion of unconventional energy sources Impact: Generation of 1400 Ltr/day through consumption of 3 kg /day of waste food Location: Aurangabad Remand Home Partner: Remand Home Initiation: August 2006

Further, Sterlite is planting 5000 trees in Pophala, Aurangabad, as part of its green initiatives.

Sustainability Report 2012–13 63


SPONSORSHIP & VOLUNTEERING

DROP IN CENTRE Objective: Generate awareness about HIV / AIDS among the local population and truck drivers. Street plays are organised with varying themes related to general health and hygiene. Impact: 3 villages Location: Dadra & Nagar Haveli Partner: Dinbandhu Youth Welfare Trust Initiation: Since October 2011

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EMPLOYEE GIVING & VOLUNTEERING VASTRA SAMMAN Objective: Donating clothes for the poor and needy Impact: 200 kg Location: Dadra & Nagar Haveli, Mumbai, Delhi Partner: NGO Goonj Initiation: Since October 2011


MODEL VILLAGE DEVELOPMENT

MODEL VILLAGE DEVELOPMENT PROJECT Sterlite Tech Foundation has adopted a village (Pophala) in Aurangabad district to provide holistic support aimed at uplift and general welfare. Titled “Gram Samruddhi” – the Pophala Village project started in May 2012. A remote tiny village, Pophala is located on a hill top, about 33 km from Aurangabad and 735 m from MSL, making it drought prone, and registers a population of around 350 villagers.

THE CHALLENGE More than 70 per cent of India's population resides in rural villages scattered over large geographic areas with very low per capita consumption rates. However, development issues are all tangled up with each other and organisations often feel that they can't gain traction in their particular area of concern because of barriers and problems in other areas.

As on date, the following measures have been undertaken: Tuition centers Health checkup camps Safe drinking water: Jivan drops CCT with people participation (Soil conservation measure) Tree plantation Village pond for water storage Silt excavation from pond and used fertile soil in farms Distribution of water tanks for storage Solar street lights Women SHG and income generation activities (IGA): Til laddoo, papad making etc Tribal family support for IGA by donating flour mill Rain water harvesting techniques

So, how did Model Village address this concern? Sterlite believed that goals can be achieved by bundling vital yet straightforward solutions into a comprehensive programme. The other important element is that the project works directly with the poorest of the poor. Thus, the Model Village Development project aims to achieve the following: Education: Achieve 100 percent literacy amongst below 40 age group population and zero 'primary school dropout' in the village. Promote High School Education in students by providing Free Tuitions. Health: Reduce malnutrition in 0 to 6 year children, adolescent girls and pregnant women. Adopt standard sanitation & hygiene practices by the village. Make primary healthcare facilities available along with village level maternal & child healthcare. Livestock Development: Adopt healthy animal husbandry practices by the village. Agri-based livelihoods: Increase income of the farmers with the introduction of agro technology and modern practices for effective management of local resources. Ensure women empowerment: SHGs with income generation activities. The three-year mission is likely to witness at least 30% increase in the average income of each farmer, plantation of 5,000 trees, one all women SHGs with small business, make the village water independent (Tanker free village), 0% school dropouts, 100% skilled youths (vocational skills with placement) and provide access to basic health services.

PROJECT IMPLEMENTATION PARTNER Sterlite roped in Savitribai Phule Mahila Ekatma Samaj Mandal (SPMESM – an NGO) from Aurangabad, who has been an important partner in the Model Village Project. Before zeroing in on SPMESM, the team held several rounds of discussions with key external stakeholders. This helped in terms of mapping the interests and concerns of stakeholders against those of the firm, which in turn revealed both opportunities and potential problem areas. Accordingly, Sterlite and SPMESM have chalked out a plan to deal with problems like education, health and hygiene, water scarcity, low productivity, obsolete farming methods, unemployment, malnutrition, absence of sustainable livelihoods, basic amenities and infrastructure areas.

Sustainability Report 2012–13 65


CASE STUDY: WATER CONSERVATION

WATER CONSERVATION & GREEN INITIATIVES To improve the ground water table, Sterlite Tech Foundation has adopted several long-term sustainable solutions as well as water conservation methods. More specifically, the scope of work includes Continuous Contour Trenches (CCTs) on adjacent hills, terracing of farms, digging & construction of well, expanding well storage capacity, mati nala bandhs, excavation of silt from the main mati nala bandh, farm ponds and well recharging, among others. Soil and water conservation measures Sterlite believes that goals can be achieved by bundling vital yet straightforward solutions into a comprehensive programme. In line with this, watershed management has been identified as the need of the hour not only in terms of soil and ground water conservation, but also the impact it has on national economy and employment-related concerns in draught prone areas. The other important element is that the project works directly with the poorest of the poor. Thus, the three-year mission is aimed at making the village water independent (Tanker free village), witnessing almost 30 per cent increase in the average income of each farmer, plantation of 5,000 trees, and providing access to basic health services, among other initiatives. As on date, the following measures have been undertaken: Rain water harvesting techniques: Well deepening and silt excavation activity has led to an increase in water storage capacity by 70 lakh liters. Also, the villagers now use plastic storage tanks to store water for household purposes as well as feeding cattle.

66 Sustainability Report 2012–13

Patchwork of CCT & mati nala bandh: As a few CCTs were overflowing, repair work was done by patching the side walls. Likewise, a few furrows were observed in the mai nala bandh and these were also patched. Harit Gad: Seeds of Glyricidia maculate (Giripushpa), Butea monosperma (Phalsa), Semecarpus anacardium (Bibba), Buchanania lanzan (Chironji), Azadirachta indica (Neem), Hardwickia binata (Anjan), Cassia fistula (Bahava) were sown on the ridges of CCTs by the villagers. Apart from the villagers, students from Environment Service Scheme (ESS) of New Dhareshwar Vidyalaya, Satala too participated in the seed sowing activity. Medicinal plants nursery: Saplings of Custard apples, Cassia, Bamboo, lemon, Drumstick and Shatavari have been planted. Because of the water management initiatives taken by Sterlite, this year though the region was hit by drought, Pophala villagers remained unaffected. As compared to last year, storage capacity of the village pond improved substantially due to desilting activities. Water was available in the pond till February end (whereas in the past years, pond water used to get consumed by November).

RESPONSE FROM GOVERNMENT AUTHORITIES Gram Samruddhi Pophala project activities have been very well received by the Government Authorities as well as concerned departments. Mr. Sarjerao Wagh, Sr. Irrigation Department Officer, visited the village, and subsequently repair work on the village pond has been carried out by government contractors on an immediate basis.


GOALS FOR THE COMMUNITY

ONGOING PROJECTS Under the sustainable agro-based and livestock development initiative, activities such as setting up a non-conventional energy source (biogas), crossbreeding, kitchen garden development, organic farming, use of dry land practices, compost pit development, development of bio-pesticides, fungicides, fertilisers and growth promoters and horticulture development. Under water resource improvement initiative, activities like construction of new bunds, repairs of the bore-well and rainwater harvesting by developing recharge pit close to the bore-well will be undertaken. Under health improvement initiative, activities like organising health camps, training on preparation of nutritious food via indigenous methods, training on the use of first aid, creating awareness of waterborne diseases and wrong habits affecting health, and construction of low-cost toilets. In addition to this, deworming of the population and all livestock will be done twice in a year. Under empowerment: Other than agribase livelihoods are being introduced such as art and craft articles, Greeting cards, paper bags making etc. Sterlite will be closely monitoring this extensive and comprehensive three-year plan with an internal audit team with a view to duplicating the model in other villages in the country. Thanks to all these initiatives, entailing 1 % of its net profit, Sterlite enhanced life quality for 1,50,000 lives across India. We will continue to remain committed to the projects we have initiated and we would strive to make a positive impact on the community.

LOOKING AHEAD Maintaining engagement with the communities that surround us will always be a priority. Looking ahead, we will focus on continuing to improve the effectiveness of our company giving programs and increase global participation in employee contribution campaigns. We will also designate leaders and champions across the company who can increase awareness of our CSR efforts and workforce engagement with these. Going forward, we have set the following new community goals:

Development of Model villages: Adding 1 village / year.

Use of innovative sustainable methods to address the needs of local community

Providing access to basic healthcare services to everyone from the local community.

Quality education initiatives for overall improvement of educational standard from bottom to top level. Focusing on skill building for women through SHGs, setting up small businesses, skill trainings with marketing support, agri-based livelihoods, handicrafts, etc. To help drop out youths, women, divorcees, widows, etc. in pursing outside employment opportunities through vocational skill building.

To address water issue by building social infrastructure and other means.

Building the green revolution by adopting latest technology and employee participation. Building a better tomorrow by empowering the local community, especially women.

Sustainability Report 2012–13 67


THE WAY FORWARD

THE WAY FORWARD This Corporate Sustainability Report puts forth information needs of the Company's stakeholders, defined as "our customers and business partners, the financial market, our shareholders, institutions, the general public and all those having a business relationship with Sterlite Technologies". In the days ahead, we will focus on continuing to improve the

effectiveness of our Company through increased focus on our sustainability initiatives. For Sterlite, maintaining engagement with the communities that surround us will always be a priority. We are also working to track the results of our efforts so that we can report on these in greater detail in future reports and communications.


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Godrej Millenium 9, Koregaon Road, Pune 411 001 Maharashtra, INDIA Phone: +91-20-30514000 Fax: +91-20-26138083

Registered Office Survey No. 68/1, Madhuban Dam Road Rakholi 396 230 Union Territory of Dadra & Nagar Haveli, INDIA Phone: +91-260-6612000 Fax: +91-260-6612013

Manufacturing Locations China Hai Men City

India Aurangabad Dadra Haridwar Piparia Rakholi Silvassa

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Sterlite technologies sustainability report 2013  

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