Business
EPL : Annual Report 2021-22
EPL : Annual Report
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EPL Limited Annual Report 20 21-22 Leading the pack Contents 002 From the MD & CEO's desk 004 EPL at a Glance 006 Sustainability - Commitment at EPL 008 - Product Sustainability 012 - Process Sustainability 016 - People Sustainability 022 IT Initiatives 024 Greening Lives, Sustaining Communities 028 Awards & Recognition 030 Key Performance Indicators 032 The Leadership Team 033 The Management Team Board Report MDA 049 Corporate Governance 082 Five-Year Summary PAGE 006 PAGE 016 PAGE 002 084 Auditors Reports - Standalone 092 Financial Statements - Standalone 148 Auditors Reports - Consolidated 154 Financial Statements - Consolidated PAGE PAGE 008 012 PAGE PAGE 022 024 W E believe that businesses with purpose have a long term positive impact on people, the planet and profit. In this regard, at EPL, we are consistently driven by our purpose of 'Leading the Pack sustainably'. This reflects our ambition to be the most sustainable packaging company. This tagline is an upfront statement of our leadership in sustainability. Contents From the MD & CEO's desk EPL at a Glance Sustainability - Commitment at EPL Product Sustainability Process Sustainability People Sustainability IT Initiatives Greening Lives, Sustaining Communities Awards & Recognition Key Performance Indicators The Leadership Team The Management Team Board Report MDA Corporate Governance Five-Year Summary Auditors Reports - Standalone Financial Statements - Standalone Auditors Reports - Consolidated Financial Statements - Consolidated FROM THE MD & CEO's DESK We are further committed to putting sustainability at the heart of everything we do Anand Kripalu Managing Director & Global CEO Dear Valued Stakeholders It is my privilege to present EPL's Annual Report for FY22. FY22 was an extremely challenging year with Covid-19 impacting human lives and livelihoods, along with severe business disruptions across the globe. The year also saw unprecedented volatility and inflation in input costs - be it polymers, aluminium, packaging, or freight. The start of the Ukraine - Russia war towards the end of the financial year also impacted the business to some extent. But, every calamity comes with an opportunity, and we have witnessed this through unimaginable collaborations among all our regional and functional teams. I would like to express my gratitude to our shop- floor employees - front liners at EPL who kept the wheels of the business turning continuously during this challenging period and ensured that not a single day was lost in any of our plants. In this context, I am pleased to inform you that EPL posted double- digit growth and demonstrated the ability to be resilient in the most trying times. EPL focused on what is within management control - price increase to customers, accelerated cost savings, and improvement in our procurement and production planning process. As a part of our continuous cost reduction efforts, EPL has also begun a War on Waste (WoW) programme with an endeavour to minimise losses at every stage of the value chain. I am confident that the company is now set for even stronger growth in the coming years. With EPL's re-calibrated strategy in FY22, our ambition is to be the most sustainable packaging company in the world. We are committed to putting sustainability at the heart of everything we do - whether it is in our service to customers, or indeed in how we run our business. We have a 4x4 mantra for achieving our performance ambition that will focus on 4Cs - Category, Customer, Country, and Cost and 4 enablers - Innovation, Bold Sales & Marketing, Digital Transformation, and a One EPL Ethos . EPL will continue to play a proactive role in driving the development of sustainable solutions -thereby making our customers more sustainable. We have stepped up our efforts to innovate and 'lead the pack' with Platina -with an expanded set of 100% recyclable offerings. This has ensured a ramp up of Platina volumes across several of our large as well as small customers such as Colgate, P&G, Unilever, GSK, Hela, Vicco, etc. We expect this to further ramp up exponentially in FY23. Significantly, we won the "World Star Global Packaging Award" for sustainable offerings in the Health and Personal care category. We have also been awarded 4 SIES SOP awards in India in the field of innovation. Being one of the world's leading packaging solution providers, we know that the future of business depends on being environmentally sustainable. Organisations like us can play a crucial role by lowering emissions, reducing our carbon footprint, conserving energy, and collaborating with customers and suppliers to make a major difference. Towards this end, EPL has put in place actions for combating climate change, driving inclusive growth, enabling social equality, and providing support to communities within which we operate. EPL has become a signatory to the New Plastic Global Commitment towards building a circular economy, an initiative led by the Ellen MacArthur Foundation in collaboration with the UN environment programme. We are also a founding member of the India Plastics Pact. We have also aligned our activities voluntarily to the Ten Principles of the United Nation's Global Compact (UNGC) on Environment, Labour, Human Rights and Anti-Corruption. We have been awarded a 'Silver Medal' in the ECOVADIS 2022 Sustainability assessment. We have also been awarded a 'B' rating by the #CDP, highlighting our focused actions toward tackling climate change and ensuring water security. We have been rated 'A' by CDP for our supplier engagement. We are proud to have received the prestigious "Best Governed Company" award in the 21st edition of the "ICSI National Award for Excellence in Corporate Governance", reflecting the strength of the board and management. These initiatives and achievements further strengthen our resolve and commitment to building a sustainable future.We recently published the second edition of our Sustainability Report to highlight our achievements and initiatives on sustainability. This is available on our website. On behalf of the Board and the employees of EPL, I would like to thank you, our valued stakeholders, for being a part of our journey to lead the pack sustainably! 002 EPL LIMITED ANNUAL REPORT 20 21-22 003 Contents From the MD & CEO's desk EPL at a Glance EPL at a "Leading the Pack Sustainably" reflects on our ambition as the glance global leader in the area of Sustainable Packaging Planet Sustainability - Commitment at EPL Product Sustainability Process Sustainability People Sustainability IT Initiatives Greening Lives, Sustaining Communities E PL Limited, headquartered in Mumbai, India, is one of the world's leading speciality packaging companies. Driven by our differentiating attributes of innovation, customer service, and value- leadership, we have been on an illustrious growth path since our inception in 1982 and have become the preferred packaging partner to the world's largest FMCG brands. Our global manufacturing footprint comprises over 20 state-of-art facilities in nine countries - China, Colombia, Egypt, Germany, India, Mexico, the Philippines, Poland, and the United States. Our diverse, strong and committed workforce of over 3,200 people (drawn from 21 different nationalities), has helped us in achieving the milestone of manufacturing and supplying over eight billion tubes annually. 28 % 300 + Reduction in total emission 30 % compared to FY21 25 % Million tubes made out of By 2030, we commit to reduce Reduction in energy consumption Awards & Recognition Key Performance Indicators The Leadership Team The Management Team Board Report MDA Corporate Governance Five-Year Summary Auditors Reports - Standalone Financial Statements - Standalone Auditors Reports - Consolidated Financial Statements - Consolidated We cater to a variety of industries such as Beauty & Cosmetics, Pharma & Health, Food & Nutrition, Oral Care and Home Care. Position People 1 st 3,200 + Largest global manufacturer of Lamitubes Team size ~ 8 20 + % Billion tube Factories Nationalities 89 supply globally of development 23,949 75 + intervention completed for high- potential talent Capital Employed Patents granted 3 (H million) % • Indians: 37.28% Received the • Other Asians: 20.11% World Goldstar • Others: 42.61% increase in employee engagement score packaging awards 2022 in the health and personal care segment recyclable laminates compared to FY21 our carbon footprint Performance Sales by region 16.8 % H million FY22 FY21 Growth Revenue 34,328 30,916 11.0% EBITDA 5,783 6,155 (6.0)% EBITDA Margin Net Profit 2,144 2,391 (10.3)% EPS (H) 6.79 7.58 (10.4)% 15.0 ROCE (%) 15.0 19.7 (477)bps % Net Debt 4,645 3,127 48.5% • AMESA: 34% • EAP: 24% Capex 2,755 1,760 56.5% • America: 21% Return on Capital • Europe: 21% Employed Mission Capital Efficient, Consistent Earnings Growth 004 EPL LIMITED ANNUAL REPORT 20 21-22 005 Contents From the MD & CEO's desk EPL at a Glance Sustainability - Commitment at EPL Product Sustainability Process Sustainability People Sustainability IT Initiatives Greening Lives, Sustaining Communities Awards & Recognition Key Performance Indicators The Leadership Team The Management Team Board Report MDA Corporate Governance Five-Year Summary Auditors Reports - Standalone Financial Statements - Standalone Auditors Reports - Consolidated Financial Statements - Consolidated Sustainability- Commitment at EPL C LIMATE change is a significant threat, and we can do a lot to mitigate it, whether it's by lowering emissions, reducing our carbon footprint, conserving energy, or collaborating with others to make a major difference. This is more than a goal; it is our pledge to make the world a better place. At EPL, we believe that we can make a significant contribution to environmental protection and resource optimisation for future generations. We have integrated sustainability into our company's strategy, procedures, and core operations, and are developing a comprehensive sustainability roadmap that will define and lay out our objectives and action plans for transforming our operations in a more sustainable and profitable manner. We plan to work with and encourage our value chain partners - suppliers and customers - to make ethical business decisions. ESG is a holistic priority area for us at EPL, encompassing Product, Process and People Sustainability. EPL has joined the United Nations Global Compact (UNGC) in January 2022 to take responsible actions for achieving a better world. We are committed to integrating the UNGC's Ten Principles on Human Rights, Labour, Environment, and Anti Corruption as a part of our business strategy and company culture and support the UN's 17 Sustainable Development Goals (SDGs). EPL has become a signatory to the Global Commitment towards building a circular economy, an initiative led by the Ellen MacArthur Foundation in collaboration with the UN environment programme. This commitment is a significant step towards accelerating our sustainability journey. 006 EPL LIMITED ANNUAL REPORT 20 21-22 007 This is an excerpt of the original content. To continue reading it, access the original document here .