Environmental Performance

GREEN MANUFACTURING

Management Approach

Maruti Suzuki strives to minimise the environmental impact of its manufacturing facilities, products and supply chain operations, and explores all possible means for improving its environmental performance. Environment is one of the key drivers of innovation at Maruti Suzuki. The Company believes that investment in environment friendly technologies makes sustainable business sense as it caters to the needs of environment-conscious customers.

Environmental considerations have led to the introduction of fuel efficient K-series engine technology, i-GPI CNG technology, use of natural gas for captive power generation and various other environment friendly initiatives by the Company. In 2010-11, the Company registered a clean development project with the United Nations Framework Convention on Climate Change (UNFCCC) which would generate carbon credits for the Company. In another significant development, the Company has started sending its hazardous waste to the cement industry for co-processing, thus minimising the need for depositing hazardous waste in secured landfills.

Maruti Suzuki has implemented Environment Management System (EMS) as per ISO 14001 standard the Gurgaon and Manesar facilities. The Company has achieved significant improvements as a result of EMS implementation. The Gurgaon plant has achieved 32% reduction in per vehicle electricity consumption and 62% in per vehicle water consumption since the implementation of EMS in 1999. The Manesar plant has achieved 38% reduction in per vehicle electricity consumption and 61% in per vehicle water consumption since the base year, 2007-08.

The Environment Policy of the Company promotes energy conservation, 3R (Reduce, Reuse and Recycle), green procurement, environment friendly mobility and environment consciousness among its direct stakeholders. In addition to strengthening its own environmental systems, the Company also reaches out to its suppliers and dealers to make them conscious about environment protection.

Every year, the Company celebrates June as Environment Month to spread environmental awareness among employees and other stakeholders. In 2010-11, Environment Month activities included quizzes, visual displays with energy saving tips, screen savers on biodiversity, tree plantation, internal portal with messages from the Company directors and awareness training. The environmental parameters are monitored by the management in the Management Committee Meeting (MCM) every month.

The Company will continue to make efforts to further improve its environmental performance. The Company is extensively using fly ash for the construction of its new plants at Manesar. Only LED lights are being installed at the upcoming vehicle stock yards.

GREEN MANUFACTURING

Maruti Suzuki follows SMC's basic philosophy of Smaller, Fewer, Lighter, Shorter and Neater in its manufacturing facilities. The Company has identified five focus areas in manufacturing with regard to protection of the environment and optimal utilisation of natural resources:

Material Usage and Weight Reduction
The major raw materials used for manufacture of vehicles are steel coils, ferrous and non-ferrous castings, paints and thinners. The Company sources finished components used in vehicles from various suppliers.

In 2010-11, the Company consumed 279,077 MT of steel coils, 22,692 MT of ferrous casting, 19,015 MT of non ferrous casting and 7,029 MT of paints.

The Company has undertaken various initiatives to reduce consumption of raw material. The scrap generated from press operations is used for producing child parts for maximising steel sheet utilisation. A total of 8,471.80 MT of metal scrap has been sent to vendors for making small components. The Company also sends back the leftover sealer in paint shops to the authorised units for refining and reprocessing.

The one-gram-one-component weight reduction programme has brought consciousness among employees and suppliers to reduce wastage and thus vehicle component weight on an ongoing basis.

                                                            

Harnessing solar energy                                                                                              Horticulture at Manesar facility

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Energy Conservation
Natural gas-based captive power plants provide for the power requirements of the Company and the suppliers located in the Suppliers' Park.

The total energy used in the plants for various processes was 6,312,708 GJ while the indirect energy consumption was 3,651 GJ.

Initiatives undertaken by the Company in the reporting year to reduce energy consumption include:

  • Replacement of existing lights with energy efficient LED lighting for streets and meeting rooms
  • Installation of solar panels for street lighting of the Gurgaon and Manesar plants
  • Energy efficient air washers in the Gurgaon plant

The percentage of per vehicle electricity consumption reduction
in the Gurgaon plant with respect to base year 2000-01 is depicted in the
graph below:

Note: The increase in the percentage electricity consumption from 2007-08 is due to introduction of additional processes of casting. The electricity consumption shown above is used for own requirements only (excluding supplies to JVs).
The percentage of per vehicle electricity consumption reduction in the Manesar plant with respect to base year 2007-08 is depicted in the graph below:

Water Conservation
Water conservation is an integral part of the Environment Management System of Maruti Suzuki. The Company has achieved zero waste water discharge status (outside factory premises) since 2003-04 at its Gurgaon facility. Similarly, the Manesar plant has also achieved zero waste water discharge status since 2006-07. The main source of water for the Company is canal water. The use of canal water has led to conservation of ground water.

The total water consumption in 2010-11 for both the Gurgaon and Manesar plants was 1,909,773 m3, of which 1,365,704 m3 was canal water; 535,734 m3 tube well water and 8,335 m3 rain water.

A total of 1,406,073 m3 of water was recycled and reused in 2010-11, accounting for 42% of the total water requirement of both the plants. The Company used 541,651 m3 of treated effluent water for horticulture.

Initiatives undertaken by the Company for water conservation in 2010-11 include:

  • Air-cooled cooling towers in the Gurgaon and Manesar plants.
  • Air-cooled dryers in the compressed air plant.

The percentage of per vehicle water consumption with
respect to base year 2000-01 for the Gurgaon plant is
depicted in the graph below.
The percentage of per vehicle water consumption with
respect to base year 2007-08 for the Manesar plant is
depicted in the graph below.
Note: The increase in the percentage water consumption from
2007-08 is due to introduction of additional processes of casting.
   
Effluent treatment plant at Gurgaon facility Water treatment plant at Gurgaon facility   
Air Emission Reduction

Greenhouse Gas (GHG) Emissions

The Company has taken various measures to reduce its Green House Gas (GHG) emissions. The major sources of GHG emissions in case of Maruti Suzuki is the burning of fuel for power generation and process requirements, accounting for over 90% of the total GHG emissions of the Company.

The total GHG of the Company (Gurgaon and Manesar plants) was 326,439 MT (CO2) for 2010-11. GHG reporting has been done as per Scope 1 and 2 of the WBCSD/WRI Protocol.

The quality of ambient air and stack emission parameters (SOx, NOx, SPM etc.) are monitored by a government approved external agency at regular frequency. The monitored values are well within the prescribed limits of the Pollution Control Board.

Initiatives undertaken by the Company to reduce air emission in 2010-11 include:

  • Use of natural gas in place of propane for manufacturing process requirements.
  • Use of natural gas for power generation in the Gurgaon and Manesar plants.
  • Use of waste flue gas of the turbines for generation of steam and compressed air.

Waste Management

The hazardous wastes of the Company include paint sludge, phosphate sludge, Effluent Treatment Plant (ETP) sludge, incinerator ash and used oil. The used oil is sold to authorised recyclers. In 2010-11, Maruti Suzuki started sending paint sludge, phosphate sludge and ETP sludge to the cement industry for co-processing. Use of hazardous waste for co-processing in the cement industry has eliminated the need for incineration and land filling. The present landfills are also being emptied out for efficient use of land within the plants. The saleable solid wastes such as metal scrap and glass waste are sold to recyclers and reusers.

All e-waste management and maintenance and disposal of IT equipment is carried out through an authorised recycler.

The total hazardous waste generated during 2010-11 was 4,943 T and used oil was 474 KL. Also, 6,447 T of hazardous waste was sent to the cement industry for co-processing.

Initiatives undertaken by the Company to reduce solid waste in the reporting year include:

  • Use of hazardous waste in the cement industry
  • Use of fly ash for construction in upcoming plants in Manesar

There has been no significant spill inside the plants because secondary containments have been provided wherever there are chances of spills.

USE OF ENVIRONMENT FRIENDLY REFRIGERANT

The Company is using the environment friendly refrigerant gas R134a in all its products. The refrigerant gas is filled by advanced dispensing machines with automatic vehicle type selection and filling quantity to avoid gas leakage at the time of filling.

With the aim to reduce the usage of HFC refrigerant and its global warming effects, Maruti Suzuki has worked on design optimisation of heat exchangers. In 2010-11, all new Maruti Suzuki vehicles were equipped with compact and high heat transfer heat exchanger, which reduced the amount of refrigerant filled in the vehicle by about 30 grams.

COMPLIANCE

No monetary fines were paid by the Company to environment regulatory authorities in 2010-11.

GREEN PRODUCTS

Engineering Capabilities

With the vision to make Maruti Suzuki a design hub of SMC for Asia (outside Japan), the Company is continuously enhancing its R&D capabilities. The main focus is on producing lighter and greener vehicles and maintaining the value proposition of products. Maruti Suzuki has been successful in consistently improving fuel efficiency of vehicles and in offering vehicles at competitive prices by applying value engineering techniques at the product development stage.

Maruti Suzuki has been using virtual validation methodology which plays a pivotal role in reducing the product development cycle. Analysis like vehicle crash worthiness, structural rigidity, power train performance improvement, emission reduction and passenger comfort improvement can be validated through virtual testing techniques in a short time span. This helps in reducing consumption of resources required in producing vehicle prototypes.

In order to support engineering activities, the Company has a strong IT-based Product Lifecycle Management (PLM) infrastructure to manage product data, and information and engineering design processes. The Company has incorporated the Integrated Bill of Material (IBOM) system for faster and paperless engineering change processes for PLM. Development of knowledge based engineering solutions helps in reducing the design cycle time and also helps in standardisation of CAD stages for error free design.

Maruti Suzuki engineers are improving their capabilities through hands-on training on advanced automobile technologies at SMC, Japan. The strength of R&D engineers crossed the 1,000 mark in 2010-11 to reach 1,069. Regular in-house training programmes and specialised courses at reputed institutions like IITs are also conducted to keep engineers at par with the latest developments in the automotive arena.

Maruti Suzuki engineers actively participate in seminars and technology forums conducted by leading organisations such as SAE and ARAI etc. In 2010-11, Maruti Suzuki engineers presented 12 research papers at SAE conferences, two of which were on "Exhaust Emission & Engine Technology" and "CO2 Reduction with Hybridisation & Electrification", aimed at developing alternative fuel vehicles.

In 2010-11, Maruti Suzuki filed 12 patent applications, taking the total to 43 patents filed so far from different technology domains like fuel system, body design and alternative fuels. Considering the Company's vision of developing eco- friendly vehicles, a number of patents have been filed for alternate fuel options such as CNG and LPG.

Maruti Suzuki is actively steering various forums and committees set up by the automobile industry and government to decide on future regulations, policies and implementation of road maps for the passenger vehicle industry.

Cleaner Technologies

The frequent escalation in fuel prices has made customers prefer cars with better fuel efficiency. Environmental considerations coupled with high demand for fuel-efficient cars have brought sharp focus on alternative fuel options such as CNG, LPG, hybrid and electric vehicles. Maruti Suzuki has taken pioneering steps in providing multiple fuel options for many of its models, thus delighting customers and contributing to environment protection. The Company's alternate fuel vehicles come with the best-in-class technologies, are safe, eco-friendly and economically viable.
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Source: Homologation test data

CNG Technology to Reduce CO2 Emissions

Maruti Suzuki was the first company in India to introduce the CNG option using conventional CNG technology. With the advancement in technology, Maruti Suzuki has developed a new Intelligent Gas Port Injection (i-GPI) technology for CNG bi-fuel vehicles. The i-GPI technology promotes uniform and complete combustion in the combustion chamber, resulting in lesser pollutants, without compromising on the vehicle's power and performance.

The Company has successfully launched bi-fuel variants with i-GPI CNG engine technology that reduced CO2 emissions by 20% as compared to its petrol variants. These models are Alto 800, Zen Estilo, WagonR, Eeco and SX4. The CO2 emission reduction of CNG variants over petrol variants is given in the graph below.

Hybrid and Electric Vehicle Technology

As a leading and responsible vehicle manufacturer, Maruti Suzuki took a significant decision to develop functional prototypes of the Hybrid SX4 and electric Eeco vehicle. Prototypes of the Hybrid SX4 and Eeco EV were demonstrated during the recent Commonwealth Games in Delhi. Maruti Suzuki engineers are working towards finding cost effective solutions in HEV and EV development for Indian customers' needs.

Hybrid SX4

The Hybrid SX4 is a full parallel hybrid with Automated Manual Transmission (AMT) on a sedan platform which offers mobility in an eco-friendly yet stylish manner. The Hybrid SX4 offers 25% more fuel efficiency compared to conventional petrol vehicles.

Eeco Charge

The Eeco Charge is a zero-emission, pure electric vehicle which on full charge promises a driving range of around 100 km and attains a top speed of 100 km per hour. The real time display of 'State-of-Charge' and 'Distance-to-Empty' gives information about the distance the customer can travel with the existing fuel. The Eeco Charge can be charged using household power sources.

Super Turbo DDiS Engine Technology

Maruti Suzuki has introduced a 1.3 litre multi-jet Super Turbo DDiS engine with a variable geometry technology (VGT) and OBD II (On Board Diagnostics) in the SX4 diesel model. VGT, by its virtue of changing vane geometry, provides optimum air flow, which improves the efficiency of the engine. OBD is a tool to diagnose the emission of the car. In the event of a malfunction of the emission control systems, the OBD system indicates the same by the engine check lamp on the speedometer cluster.

Other features like a high pressure pump, advanced fuel injection system and improved piston design add extra power, improve combustion and thus bring down emissions considerably.

LPG Engine Technology

In continuation with Maruti Suzuki's roadmap for launching greener vehicles, the Company's engineering team upgraded the WagonR Duo BS-III to the new WagonR Duo with i-GPI technology for LPG fuel compliance to BS-IV emission norms. This produces 7% less CO2 as compared to petrol.
MODEL Fuel Economy Values (km/l) IMPROVEMENT (%)
  BS III BS IV  
WagonR Duo (LPG) 13.1 14.37 9.69
Source: Society of Indian Automobile Manufacturers (SIAM)

A compact toroidal LPG tank maximises the filling capacity and minimises the space occupied inside the car luggage room. An LPG malfunctioning indication lamp is fitted for highlighting any malfunction in the LPG system.

NEW TECHNOLOGY INITIATIVES

CVT–New Transmission Technology

Continuously Variable Transmission (CVT) technology offered in the Suzuki Kizashi can change seamlessly through an infinite number of effective gear ratios between maximum and minimum values, giving absolute driving pleasure.

K-series Engine Technology

Riding on the success of Alto 800, in 2010-11, Maruti Suzuki engineers developed a facelift variant of the Alto with K-series engine technology, named Alto K10. The Alto K10, with its new environmental friendly engine technology, complies with BS-IV norms and offers an impressive fuel efficiency of 20.2 km/litre as compared to the BS IV complaint F8D engine that offers fuel efficiency of 19.7 km/litre. This is an improvement of 2.54%.

Zoned Catalytic Converter Technology

With emission norms becoming more stringent, catalytic converter technology has evolved from traditional to zoned catalyst technology. A zoned catalyst differs from the traditional catalyst by having varied concentrations of precious group metals in different zones of the catalytic converter; this helps to use their properties effectively in their respective zones.

In 2010-11, Maruti Suzuki successfully implemented this technology in WagonR, A-star, Zen Estilo and Alto K10 models, enabling reduction in emissions.

End of Life of Vehicle

End of Life of Vehicles (ELV) Directive, a mandatory rule in Europe with effect from 2000, aims at elimination of hazardous substances like lead, cadmium, mercury and hexavalent chromium. Countries across the globe are taking steps to promote ELV and subsequent recycling.

Maruti Suzuki has taken voluntary measures to implement ELV at the model development stage and has successfully made all its models (except Omni, Gypsy and Maruti 800) ELV compliant. In 2010-11, 43 components such as latches, mirrors and door handles were made ELV compliant across all our models. Efforts are underway to make the Omni and Gypsy ELV compliant in the near future.

Rolling Resistance

Maruti Suzuki has always explored possibilities of improving the environmental performance of its vehicles. Maruti Suzuki engineers have worked on various parameters that affect fuel efficiency, rolling resistance being one of these. Continuous attention on lowering the rolling resistance of tyres while maintaining optimal vehicle performance has resulted in lower emissions.

Light Weighting

Following our mantra for lighter, fuel efficient and value for money products, in 2010-11, Maruti Suzuki engineers were successful in reducing the weight of Alto seats by more than 5 kg. The weight of batteries was also reduced by around 500 grams without compromising on performance.

GREEN SUPPLY CHAIN

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A fleet of Hybrid SX4 cars outside the Rashtrapati Bhawan in New Delhi

Maruti Suzuki aspires to create a sustainable value chain. The basic principles of reducing wastage, inconveniences and inconsistencies across the value chain have been imbibed from the parent company, SMC, Japan.

The Company shares its best practices with its business partners, such as Just-in-Time (JIT), Kaizen (continuous improvement), waste elimination, energy conservation, Pika-Pika (fool proof operations), Environment Management System (EMS), HR practices and quality systems. Attempts are made to replicate these in their business processes to make their operations lean, error free and environment friendly.

Maruti Suzuki has laid down structured, two-way communication tools like Annual Vendor Conferences, Monthly HR meetings, Shikhar visits, MACE for interaction with its suppliers. In order to communicate the views of the Company's top management to the suppliers and to prepare them for the challenges of scaling up production, the Company organised a conference of its smaller suppliers for the first time in 2010-11.

The suppliers are given an opportunity to participate in QC competitions and other activities during the Quality Month observed at MSIL. Activities such as friendly cricket matches and Supplier Tech Day are organised and these performanceact as strong tools for exchange of views and relationship development with the suppliers.

Environment Consciousness among Suppliers

Maruti Suzuki sensitises its suppliers about environmental issues and encourages them to take proactive measures to minimise their environmental impact. Periodic briefings and training programmes are organised for them on topics such as EMS, environmental laws and regulations and hazardous waste management. The activities carried out during Environment Month also involve suppliers amongst other stakeholders.

Encouraging Local Suppliers to Reduce Air Pollution

The Just-in-Time (JIT) and e-nagare inventory management systems, introduced in 2003, have helped in reducing inventory levels to less than a day. In 2010-11, the Company encouraged its suppliers to supply material during the night shift. Now 26% of suppliers deliver material during the night shift. This has helped in reducing traffic congestion and pollution in and around Gurgaon city.

A milk run system was also started in 2010-11 for 30 suppliers based in Faridabad. The logistics for these companies are now managed by one logistic supplier. This initiative helped in reducing the number of trips per day to Maruti Suzuki by 30% from these suppliers and improvement in the truck fill rate by over 25%.

Maruti Suzuki encourages suppliers to shift their production facilities near its manufacturing facilities to reduce the pollution caused due to transportation. Both the Gurgaon and Manesar facilities have a dedicated Suppliers' Park. Of the 19 joint venture companies, 11 are located in the Suppliers' Park adjacent to the Maruti Suzuki Gurgaon and Manesar plants.

The Company has been able to source 86% of its supplies by value from suppliers situated within a 100 km radius from its manufacturing facilities. Only trucks carrying a valid Pollution Under Control (PUC) certificate are allowed to enter the Company premises.

The Company also supplies water and uninterrupted power produced from natural gas based captive power plants to its suppliers located in the Suppliers' Park.

Environment Management System Facilitation

The Company is facilitating its suppliers in implementing EMS and ISO 14001 certification in a phased manner. As on 31st March, 2011, 60% suppliers were ISO 14001 certified, up from 58.4% in 2009-10. The Company has also restricted the use of hazardous material such as lead, cadmium, mercury and hexavalent chromium in components. Maruti Suzuki has approved many plating suppliers across India to facilitate the change process.

Packaging Improvements

Suppliers are encouraged to use recyclable and reusable packing material for component supplies. The Company has made packing material an integral part of the new component approval procedure to ensure non usage of polythene and cardboard.

Resource Conservation

Yield improvement in sheet metal components is a major activity. In recent years the Company has increased the spread of yield improvement activities to non conventional areas like plastics, casting, forging and propriety parts. In 2010-11, 2000 T raw material was saved through this activity. The scrap generated in the Maruti Suzuki press shop is also sold to suppliers to make components for Maruti Suzuki. In 2010-11, 1500 T of material was recycled and sent to suppliers.

Driving Business Excellence Through People at Suppliers

A Maruti Suzuki vendor HR initiative - Driving Business Excellence Through People - was started in 2009-10. In 2010-11, five HR sensitisation workshops were conducted for senior management of suppliers. The one-on-one working included diagnoses of existing HR processes, action planning and implementation was initiated for 25 suppliers. To facilitate the process, Maruti Suzuki engaged five HR knowledge partners. In addition, six HR meetings were conducted with JV's and key vendors.

Project Shikhar

As part of this project, senior management teams from Maruti Suzuki visit the shop floor of suppliers followed by a detailed audit covering 5S, visual control, process change management, people practices and Work-In-Progress (WIP) material handling. In 2010-11, under project Shikhar, 83 assessments were carried out at 39 vendors and 36 reviews were carried out by MSIL officials.

Energy Saving Initiative

Maruti Suzuki initiated energy audits for its dealer workshops through an external agency, TUV India, to identify areas of improvement to reduce electricity consumption at their workshops. So far 18 workshops have been audited across India and the findings shared with other workshops.

GREEN IT

At Maruti Suzuki, IT is extensively used to improve operational efficiency, information sharing and cost reduction. While enjoying the benefits of IT, the Company also makes efforts to minimise its impact on the environment.

Some of the initiatives undertaken by the Company in this direction are given below.
  • In 2009-10, Maruti Suzuki installed four new blade servers to replace DL servers. This exercise was further expanded in the reporting year to include installation of 9 new blade servers.
  • Replacement of existing 606 desktops/laptops was undertaken in 2010-11.
  • In 2010-11, 43 old printers were replaced by 19 power saving printers. To reduce the use of paper in printing, a user-wise account is maintained and users are educated about the need to conserve resources such as paper, electricity and ink.
  • The IT data centre has been designed to conserve energy. The cooling of servers is done through ducts at floor level to maintain desired temperatures for a longer duration.