annual-report-FY2021

28 COMPANY OVERVIEW RISING THROUGH INNOVATIONS RISING WITH FOCUS ON ESG CORPORATE INFORMATION STATUTORY REPORTS FINANCIAL STATEMENTS SUPPORTING COMMUNITIES TO RISE PIVOTING TO GROWTH Key Risks & Risk Mitigation Initiatives Ÿ Actively pursuing development of the EV market, products, and technology Ÿ Started operation of the latest manufacturing hub in Chakan, Pune which will supply EV components Environment & Alternate Fuels Ÿ Limited the impact of rise in commodity prices through concerted efforts towards cost reduction with various initiatives including VAVE activities Ÿ Continue to work on mitigating the inflationary impacts through 'Commodity Risk Management', cost re-engineering, and value engineering activities Commodity Prices Ÿ Adequate manufacturing capacity in place for the immediate future Ÿ In the process of investing in additional capacity at Chakan Phase II Ÿ Investing over J 3,000 crore in the EV programme Ÿ Working closely with key suppliers to minimise any supply constraints through proactive capacity planning and longer-term contracts Ÿ Pursuing opportunities for global sourcing Ÿ Swaraj Division is planning to invest in creating additional manufacturing capacity by setting up a new manufacturing plant Capacity Ÿ Implementation of countermeasures to minimise any short-term impact and mitigate any long-term impact on the Company Ÿ Company-wide initiatives to rationalise cost structures, cash flow management, and sustained investment in new products COVID-19 Pandemic Ÿ Successfully met the aggressive time and cost targets set during the development of BS6 technologies Ÿ Upgraded the product portfolio to BS6 and now offers BS6-compliant products at a competitive price Ÿ Continue to work on cost and value engineering for easing the pressure on margins Ÿ Working on various powertrain and vehicle level technologies such as friction reduction and electrification, for further CO 2 improvement needed to achieve the CAFE 2 (Corporate Average Fuel Economy) and RDE (Real Driving Emissions) emission norms planned for 2022-23 New Emission Norms Ÿ Invest in new product development, technology upgrades, increasing channel reach, and focus on delivering customer- centric products, services and build brand with an aim to remain competitive in the market Competitive Intensity Ÿ A comprehensive programme for development of new products and technologies that will enable us to remain competitive in the market, cater to emerging customer expectations and to meet any legislative requirements New Products & Technologies