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RISK MANAGEMENT

RESILIENCE BUILT IN

We proactively identify, assess, and address risks that could affect our performance, reputation, and long-term value creation. Our integrated risk framework spans economic, operational, technological, environmental, and compliance dimensions – ensuring agile responses in a complex and evolving global landscape.

R1

ECONOMIC RISK

A slowdown in the global macroeconomic environment may impact our business and revenues.

Mitigation

  • Diversified operations across geographies and industries reduce single-sector exposure
  • Strong overseas presence through subsidiaries in North America and Europe
  • Ongoing expansion in aluminum forgings aligned with light-weighting trends in the auto industry
  • Multi-sector footprint spanning automotive, defence, oil & gas, mining, power, aerospace, and e-mobility
  • Defence growth supported by indigenization; e-mobility vertical readying for commercialization

Capitals Impacted

R2

RAW MATERIAL RISK

Inability to secure key raw materials at competitive rates may impact operations and profitability.

Mitigation

  • Secure steel supply through group company at competitive rates
  • Diversified material base including steel, aluminum, titanium
  • In-house engineered processes ensure efficient usage with minimum scrap
  • Price pass-through clauses safeguard margins
  • Dynamic monitoring of global supply chain disruptions

Capitals Impacted

R3

FOREIGN EXCHANGE RISK

Export-linked revenue exposure to currency fluctuations may impact profitability.

Mitigation

  • Rolling forward contracts to hedge currency risks
  • Natural hedge through export revenues exceeding foreign currency borrowings

Capitals Impacted

R4

TECHNOLOGY RISK

Risk of obsolescence in a rapidly evolving technological landscape

Mitigation

  • Early investments in e-mobility and Light-weighting technologies
  • In-house technological strengths in defence and aerospace
  • Adoption of IoT, Industry 4.0, digital thread, RPA, and advanced data analytics
  • Scalable implementation of SAP ERP and automation tools

Capitals Impacted

R5

FUNDING RISK

Inadequate access to capital may affect growth and profitability

Mitigation

  • Strong balance sheet with robust cash position
  • Reduced debt through prudent capex and working capital controls
  • Healthy net debt/equity and net debt/EBITDA ratios enable easy fund access

Capitals Impacted

R6

TALENT RISK

Inability to attract and retain talent may impact operations

Mitigation

  • Meritocratic, employee-centric culture with structured career development
  • Regular health, safety, engagement, and future-ready skills training
  • Focus on new talent acquisition and performance-based recognition

Capitals Impacted

R7

CYBERSECURITY RISK

Increased digitization raises threat of cyberattacks and data breaches

Mitigation

  • ISO 27001:2022 compliant cybersecurity framework
  • Real-time threat detection via next-gen tools and multi-layer security
  • Regular third-party validations and VPAT assessments
  • Continuous employee awareness and training programs

Capitals Impacted

Governance

Financial Capital