General Disclosures

I. Details of the listed entity

Sl. No. Particulars held Response
1. Corporate Identity Number (CIN) of the Listed Entity L29130PN1962PLC204515
2. Name of the Listed Entity Schaeffler India Limited
3. Year of incorporation April 27, 1962
4. Registered office address 15th Floor, ASTP (Amar Sadanand Tech Park), Baner, Pune, Maharashtra, India, 411045
5. Corporate address
6. E-mail

For Industrial

info.in@schaeffler.com

For automotive & Automotive aftermarket

aftermarket@schaeffler.com

For Media

deshmpll@schaeffler.com

For investor queries

investorsupport.in@schaeffler.com
7. Telephone +91-20-68198400
8. Website www.schaeffler.co.in
9. Financial year for which reporting is being done 1st January to 31st December 2023
10. Name of the Stock Exchange(s) where shares are listed

1. BSE Ltd.

2. National Stock Exchange of India Ltd.
11. Paid-up Capital As on December 31, 2023 the paid-up capital of the Company stood at ` 312,607,340 consisting of 156,303,670 numbers of Equity Shares of ` 2/- each.
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report

Name : Channabasavanna Alegowda, Head of Sustainability

Telephone : +91-20-68198400

E-mail : alegocan@schaeffler.com
13. Reporting boundary – Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together) The Environmental, social and governance disclosures made in this report are on Standalone basis.

II. Products/services

II-14. Details of business activities (accounting for 90% of the turnover):

Sl. No. Description of Main Activity Description of Business Activity % of Turnover of the entity
1. Automotive Technologies The Automotive Technologies division is dedicated to creating and producing innovative products designed for various applications related to engines, transmissions, and chassis. These products are developed for use in vehicles powered by internal combustion engines, as well as for hybrid and electrified powertrains. 42%
2. Industrial The Industrial division offers a wide range of products that include Ball and Roller Bearings, Plain Bearings, Bearing Housings and Accessories, Linear Bearings, Ultra Precision Drives. Over and above this, under the vertical of Life time solutions we offer lubrication products that include Grease and Oils, Maintenance Products which include a wide range of mounting and dismounting tools, condition monitoring systems to customers across various industrial sectors. These products are distributed through direct sales channels as well as through widespread network of certified distribution partners. 35%
3. Automotive Aftermarket Tailor-made solutions for the automotive aftermarket Schaeffler’s Automotive Aftermarket division is responsible for the global distribution of ‘spare parts’ – components and repair solutions for passenger cars, light and heavy commercial vehicles and tractors. With a comprehensive understanding of engine, transmission, and chassis systems, along with an extensive service offer, the aftermarket division also supports workshops carrying out complicated repairs. 10%
4. Exports and Others The exports comprise of revenue to overseas group companies based across four Schaeffler group regions i.e. America, Asia Pacific, China & Europe. while ‘Others’ revenue mainly consists Sale of Scrap. 13%

II-15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover)

Sl. No. Product/Service NIC Code % of total turnover contribute
1. Bearings, Engine and transmission products & solutions 28140 99%

Bearing & engine transmission product is common among all the below segments

Sl. No. Segment Turnover (` Millions) % of total turnover contribute
1. Mobility components and related solutions 56,868 79%
2. Others 15,393 21%
Total 72,261 100%

III. Operations

III-16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of plants Number of offices, R&D, Sales, Distribution centre Total
National 4 22 26
International - - -

III-17. Markets served by the entity:

a. Number of locations

Locations Number
National (No. of States) 26 States & 3 UTs
International (No. of Countries) 23

b. What is the contribution of exports as a percentage of the total turnover of the entity?

Sl. No. Particulars Revenue (` Millions) % of total Turnover contribute
1. Exports & Others 9,740 13%
2. Total revenue 72,261 100%

Note: Refer Q14 (4) for export details

C. A brief on types of customers
Schaeffler India Limited has customers in domestic as well as international markets which are broadly classified in 3 divisions.

  1. Automotive Technologies division has customers in passenger & commercial vehicles, tractors & off-highway segments. Key OEMs in automobile are served by us.
  2. Industrial division has customers in sectors like railways, wind power, raw materials, power transmission as well as two wheelers. We also serve large OEMs in these sectors directly and have country wide footprint for distribution.
  3. Automotive Aftermarket has wide range of OES (Original Equipment Supplier) & distribution network.

IV. Employees

IV-18. HCO reconciliation:

A. Employees and workers (including differently abled):

No. Total(A) Male Female
No. (B) % (B/A) No. (C) % (C/A)
Employees
1. Permanent (D) 1,566 1,468 94% 98 6%
2. Other than Permanent (E) 129 105 81% 24 19%
3. Total employees (D + E) 1,695 1,573 93% 122 7%
Workers
4. Permanent (F) 1,292 1,264 98% 28 2%
5. Other than Permanent (G) 2,237 2,006 90% 231 10%
6. Total workers (F + G) 3,529 3,270 93% 259 7%

b. Differently abled Employees and workers:

No. Total(A) Male Female
No. (B) % (B/A) No. (C) % (C/A)
Differently Abled Employees
1. Permanent (D) 4 3 75% 1 25%
2. Other than Permanent (E) 1 1 100% 0 0%
3. Total employees (D + E) 5 4 80% 1 20%
Differently abled Worker
4. Permanent (F) 1 1 100% 0 0%
5. Other than Permanent (G) 10 10 100% 0 0%
6. Total workers (F + G) 11 11 100% 0 0%

IV-19. Participation/Inclusion/Representation of women

Total(A) No. and percentage of females
No. (B) % (B/A)
Board of Directors 9 3 33%
Key Management Personnel 3 0 0%

IV-20. Turnover rate for permanent employees and workers

(Disclose trends for the past 3 years)

FY 2023 FY 2022 FY 2021
Male Female Total Male Female Total Male Female Total
Permanent Employees 6.5% 1.0% 7.5% 7.5% 0.9% 8.4% 5.8% 0.7% 6.5%
Permanent workers 4.1% 0.0% 4.1% 4.1% 0.0% 4.1% 3.8% 0.0% 3.8%

V. Holding, Subsidiary and Associate Companies (including joint ventures)

V-21. Names of holding/subsidiary/associate companies/joint ventures

Sl. No. Name of the holding/subsidiary/ associate companies/ joint ventures (A) Indicate whether holding/ Subsidiary/Associate/
Joint Venture 		% of shares held by
listed entity		 Does the entity indicated at column A, participate in the Business Responsibility
initiatives of the listed entity? (Yes/No)
1. INA Holding Schaeffler GmbH & Co. KG, Germany Ultimate holding Company - No
2. Schaeffler Schweinfurt Beteiligungs GmbH Promoter - No
3. Schaeffler Bühl Verwaltungs GmbH Promoter - No
4. Schaeffler Verwaltungsholding Sechs GmbH Promoter - No
5. Industriewerk Schaeffler INA-Ingenieurdienst GmbH Promoter - No
6. KRSV Innovative Auto Solutions Private Limited Subsidiary 100% No

VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013:
           Yes

(ii) Turnover (in ` Million):
       ` 72,261 mn as on December 31, 2023

(iii) Turnover (in ` Million):
       ` 48,153.6 mn as on December 31, 2023

VII. Transparency and Disclosures Compliances

VII-23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder group from whom complaint is received Grievance Redressal Mechanism in Place (Yes/No)
(If Yes, then provide web-link for grievance redress policy)		 FY 2023 FY 2022
Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks Number of complaints filed during the year Number of complaints pending resolution at close of the year Remarks
Communities Yes
  • Open registers at all our plant location.
  • Through Implementing agencies, NGO through writing physical letters.
  • Helpline numbers are mentioned on website.
https://www.schaeffler.co.in/en/meta/contact/ deshmpll@schaeffler.com 		Nil Nil Nil Nil
Investors (other than shareholders) Schaeffler India Limited shareholding pattern consist of Holding company & shareholders only, so there are no outside investors. https://www.schaeffler.co.in/en/meta/contact/ Nil Nil Nil Nil Nil Nil
Shareholders Yes, There is a Shareholders’ Handbook for the redressal of investor grievances and to educate the shareholders about their rights as shareholders, standard procedures, and documentation requirements for certain matters.
investorsupport.in@schaeffler.com 		26 Nil These include complaints received through SEBI SCORES and stock exchanges 24 Nil These include complaints received through SEBI SCORES and stock exchanges
Employees and workers Under vigil mechanism employee can file compliant
weo.india@schaeffler.com
POSH related complaints
posh@schaeffler.com
Compliance related, Human rights queries
complianceindia@schaeffler.com
Employee can file any complaint anonymously
https://www.bkms-system.net/schaeffler
Grievance redressal Policy has formal Grievance redressal procedure, scope & Objective. (Policy doc available on Schaeffler Intranet) 		111 12 Investigation is in progress 57 56 A complaint received in year 2022. was investigated in the same year concluded in 2023, as per requirement under POSH Act
Customers
  • Yes, customers can file complaints on e-mail ids displayed on website.
  • Key OEM customers have their portals for communicating the concerns.
  • SPOCs (Special point of contacts) have been defined for each customer.
  • A dedicated customer care number is pasted on our packaging (MRP stickers) for all products.
  • In parallel we also has internal system of tracking these concerns through SAP based IQOS.
info.in@schaeffler.com
aftermarket@schaeffler.com
https://www.schaeffler.co.in/en/meta/contact/ 		78 Nil 56 Nil
Value chain partners SupplyOn is dedicated portal available for assessing supplier performance. In case of any grievances, suppliers can file complaints on the portal. Vigil Mechanism and Whistle-Blower policies are available on the website, which is covers value chain partners as well.
weo.india@schaeffler.com
https://www.schaeffler.co.in/en/meta/contact/ 		Nil Nil Nil Nil
Other (please specify) Yes, Compliance Management System of the Schaeffler Group and Company’s Vigil Mechanism/Whistle-Blower mechanism are effective tools towards grievance redressals for both external stakeholders & employees. The policies are available on company’s website.
weo.india@schaeffler.com
https://www.schaeffler.co.in/en/meta/contact/ 		8 0 4 Nil Nil Whistle blower hints were received about various topics. Based on investigation none of the complaints were substantiated

Note : Employees and workers complaints include health & working conditions, POSH related complaints. In year 2023 we have taken concrete steps to keep record of such complaints.

VII-24. Overview of the entity’s material responsible business conduct issues

Sl. No. Material issue identified Indicate whether risk or opportunity (R/O) Rationale for identifying the risk/opportunity In case of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications)
1. Water management Opportunity Water is one of the crucial elements in operations of the company. It is not only required in production processes, but also for domestic processes. Taking into account availability of fresh water, increasing water pollution in society, we have identified water management as need of the hour.
  • Zero discharge plants, where the treated water is reused for processes, gardening, etc.
  • Rain water harvesting & ground water recharge projects initiated, which will reduce water footprint.
  • Schaeffler India has set a target of 20% reduction of freshwater supply compared to the base year CY19 to be achieved by CY 30.
  • Various water saving projects initiated like generation of process demineralised water using Treated STP water, Reduce water consumption of cooling tower by reducing daily blow-down water quantity, Treated water reuse in de-oiler & poly dosing tank, Reuse of seepage Rainwater & Rainwater harvesting.
  • Water savings achieved so far 34,708 m3.
 Negative if target is not achieved
2. Diversity & inclusion Opportunity We believe that diversity & inclusion at workplace will invite people with multiple skill sets and mindsets. This gives an opportunity for innovation, boost in performance, reputation and motivation. We value multicultural experiences and diversity of our employees and consider these the organisation’s strength.
  • Focus is on improving diversity at all levels in the organisation.
  • Diversity & Inclusion policy implementation.
  • Welcoming diversified workforce.
 Positive if target is achieved
3. Safety & working condition Risk Negligence in Health &safety practices may lead to deteriorating physical as well as mental health of the Employees & workers. We believe that as a responsible organisation, it is our duty to prioritise safety in all our operations. It is a critical aspect of our business, and we are committed to instilling a culture of safety across all levels of our organisation.
  • Implementation of EHS policy.
  • We have EHS personnel at all the plants who take care of EHS practices.
  • Our health and safety management systems have been implemented in accordance with the International Standards ISO 45001 (Occupational Health and Safety Management System Standard).
  • Target to achieve 10% average annual reduction in accident rates (LTIR) is on track.
 Incase of failure negative implications
4. Solution for lower carbon mobility Opportunity To walk towards a path of a low-carbon economy, corporates need to adopt responsible business practices to reduce their carbon footprints. Low carbon mobility solutions are the need of the hour.
  • Various steps have been initiated to reduce carbon footprints with an aspiration to attain climate neutral production by CY30 and be climate-neutral by CY40 which also covers our supply chain.
  • Schaeffler products are already in EV, hybrid & low carbon mobility technology segment.
 Positive if target is achieved
5. Energy management Opportunity In manufacturing industries, production processes consumes large quantum of energy generated from multiple sources: coal, natural gas, electricity and other fossil fuel etc. Adopting energy efficiency measures will help in optimising energy consumption across its operations.
  • Target of 4 GWh cumulated annual efficiency gains via the implementation of energy efficiency measures to be achieved by 2024.
  • Energy saving initiatives undertaken at all the plants led to energy saving of 1,309 MWh.
  • Target of 100% purchased power from renewable sources to be achieved by 2024.
  • We have been constantly working on purchasing green energy through hybrid energy (solar and wind) Power Purchase Agreement our locations.
 Positive if target is achieved
6. Emission management Risk Upcoming regulations regarding emissions necessitate to be compliant with the requirements. While failure to comply may impact environment and society in the long run, in the short run it may lead to fines, penalties etc. Schaeffler has clear agenda of lowering
  • GHG emissions in own production (Scope 1 and 2 emissions) and
  • in the supply chain (Scope 3 emissions)
  • Net Zero CO2 emissions by 2040.
 Negative if target is not achieved
7. Labour Management Risk Labour/workers unrest leads to situations like strikes, lockouts etc. This further leads to operational disruptions and lowering productivity, and affects reputation of organisation.
  • Schaeffler India respects opinions of its workers & safeguards their interest, there by following principles of Human rights.
  • Workers are free to express their opinion to management through procedures like collective bargaining.
  • Regular meetings held between leads & union members helps in understanding labor issues & resolve them quickly.
 Negative if labour issues are not resolved
8. Employee advancement Opportunity Schaeffler believes that employee growth will ultimately lead to organisational growth, and hence, both should go hand in hand.
  • The succession for each leader is planned thoughtfully, keeping in mind short term & long term risks.
  • The Company has well established leadership platforms, such as the ‘Young Leadership Program’ to strengthen the leadership.
  • The Company has a foundation of Talent Mobility to groom high-potential leaders across different Schaeffler locations.
  • We offer learning opportunities through a consolidated platform called The Schaeffler Academy.
 Positive
9. Waste management Risk Safe disposal of hazardous & non-hazardous waste generated during process of production is sole responsibility of organisation. Failure to do so may invite fines, punishment etc thereby harming the image of organisation.
  • We adhere to the three R principle: Reduce, Reuse, and Recycle.
  • To manage our waste, we implement various efficient waste management initiatives that consider environmental impact, social effects, and commercial viability.
  • We dispose our hazardous waste at a government-approved central landfill
  • While our non-hazardous waste is primarily recycled by sending it to authorised recyclers.
 Negative if waste not disposed properly
10. Compliance Risk Compliance acts as base for building trust among external stakeholders and also among employees. This ultimately builds strong organisation. Company ensures 100% compliance of training on Code of Conduct. Company has digitally enabled comprehensive compliance management system. Negative if not complied
11. Data security & data protection Risk Cyber-attacks/breaches pose a significant threat to data privacy & cyber security of organisation as well as employees.
  • We have put in place a robust information security policy based on the ISO/IEC 27001 standard and taking into account sector-specific regulations.
  • Procedures and other IT security specifications supplement our information security regulations.
  • Several technical measures have been established to avoid any illegal intrusions and to mitigate the risk of cyber-attacks and avoid data thefts, which also includes monitoring the networks for cyber threats through Security Operations Centre (SOC) to detect and respond to cyber security events.
  • Regular training amongst employees for awareness.
 Negative in case of data breach
12. Respect for individuals Risk It is basic human right to respect dignity & personal rights of individual. Violation or non-compliance of same may lead to financial as well as reputational loss. Our Code of Conduct (COC) contains principles of human rights and fair treatment. The Company is committed to the United Nations’ international code of human rights, the “UN guiding principles on business and human rights”, the ten principles of the “UN Global Compact”, and the internationally-recognised standards of the eight core conventions of the International Labor Organization (ILO). Negative incase of labour unrest
13. Employee engagement Opportunity Employee engagement initiatives helps in employee satisfaction, retention and Increase in productivity.
  • Formal onboarding
  • Recognition programs
  • Knowledge sharing
  • Improving employee wellbeing
  • Better work-life balance
 Positive
14. Material sourcing Risk
  • Schaeffler has an extensive supplier base. Sustainable sourcing is of foremost importance to ensure compliance with regulations & uninterrupted supply.
  • It also supports business longevity and builds a strong reputation.
  • This will also help company to achieve its Scope 3 sustainability targets & monitor them more closely.
  • Schaeffler has set a clear target of Climateneutral supply chain by 2040.
  • Every supplier need to adhere to Sustainable procurement policy.
  • Supplier Code of Conduct is signed off by all suppliers of Schaeffler India.
  • For supplier selection, we also have specific questions related to Sustainability in the “new supplier selection questionnaire” (SIA – Supplier Initial Assessment). So any new supplier who is added into the supplier base have to fulfil the requirements related to Sustainability.
  • During regular sourcing of parts, the sourcing board presentation includes points related to sustainability and these aspects are verified while approving any new sourcing to any supplier.
  • We also have Sustainability Target Agreements defined together with business partners, and their development is monitored over the period of this Agreement. So, the performance of our suppliers shall be improved continuously.
 Positive
15. Total quality & product safety Risk
  • Schaeffler India’s product brands – FAG, INA and LuK are associated with best-in-class standards of quality, durability and reliability, making them increasingly susceptible to product piracy.
  • Quality risks & cost involved
  • Reduction in sale due to quality issues
  • Schaeffler India has completed Quality Management System Certifications VDA 6.3A, IATF 16949, ISO 9001, AS (Aerospace certification)
  • Provision has been made against possible sales loss
  • Products need to go through strict Quality testing parameters before delivering to customer
 Negative incase of rejections from customers
16. Ethics & transparency Risk
  • If any employees are involved in unethical practices, this will lead to loss of reputation in market
  • This ultimately will lead to loss of customers & business.
 Our Code of Conduct (COC)

Applies to Board, Senior Management and every single employee serves as moral guide. It contains principle of Transparency, trust, and teamwork, transparency toward shareholders, business partners and dealing with each other with honesty 		Negative incase of violation of ethical practices
17. Stakeholder Engagement Opportunity
    Stakeholder Engagement can mitigate potential risks and conflicts with stakeholder groups, including uncertainty, dissatisfaction, misalignment, disengagement, and resistance to change.
  • Open, clear and regular communications with stakeholders regarding important events, progress of company.
  • Conducting regular surveys helps in knowing areas where improvement is required.
 Positive
18. Community engagement Opportunity When community engagement is done right, it can help to develop a more socially responsible organisation. It builds trust within community members, increases level of satisfaction, builds reputation for the company, and facilitates the ‘social license to operate’.
  • Communicating with stakeholders
  • Encourage community involvement
  • Undertaking community development projects
 Positive
19. Transportation & Logistics Risk
  • Timely delivery of goods is of utmost importance for business continuity
  • Frequent lapses may lead to reputational loss
  • Political unrest, bad weather events are posing challenges
  • Training for supply chain partners
  • Follow up of delivery terms & timelines

Keeping track of political events & weather forecasting and having alternatives during such circumstances 		Negative in case frequent delays

Material issues for Schaeffler India

Environmental

  • Water management
  • Solutions for low carbon mobility
  • Emissions management
  • Energy management
  • Waste management
  • Material sourcing
  • Transportation and logistics

Social

  • Diversity and inclusion
  • Safety and working conditions
  • Total quality and product safety
  • Labour management
  • Respect for individuals
  • Employee advancement
  • Employee engagement

Governance

  • Compliance
  • Data security and data protection
  • Ethics and transparency
  • Stakeholder engagement
  • Community engagement