75 RISE FOR A MORE EQUAL WORLD | ESG Strategy Case Study: Water Positive Operations through RO Reject Water Reuse at Mahindra Research Valley (MRV). MRV operates dedicated vehicle test tracks where water quality plays a critical role in ensuring consistent testing conditions, particularly for ABS wet surface evaluations. To meet these requirements, MRV relies on a reverse osmosis (RO) plant to supply high-quality water for track sprinklers. This process, however, also generates reject water that was earlier being discharged. To improve water efficiency, the MRV team assessed the quality of RO reject water and established that, within defined TDS limits (BIS IS 10500), it was suitable for non-process applications such as gardening and landscaping. Based on this evaluation, the reject water outlet was modified to divert water into a dedicated storage tank using simple plumbing additions and metering. The intervention was implemented using existing project spares, with no incremental capital expenditure. The solution has also been designed for replication across other RO plants within MRV, reinforcing a structured approach towards water reuse and efficiency. Results: • 5% reduction in overall water consumption for the affected operations. • Associated operating cost savings and establishment of a scalable model for process-level water reuse within high-precision testing infrastructure. • By converting RO reject water into a usable resource, MRV has reduced its reliance on externally sourced freshwater while maintaining operational integrity of the test facility. Waste & Circularity With growing pressure on finite planetary resources, reducing material consumption and unlocking value from waste are essential to sustainable growth. At Mahindra, we prioritise resource efficiency by minimising material use at source and adopting circular practices that convert waste streams into productive inputs. This approach reduces dependence on virgin raw materials, encourages innovation across operations and lowers overall environmental impact. Across the Group, most of our manufacturing facilities operate under a Zero Waste to Landfill (ZWL) framework. Hazardous waste is responsibly managed through diversion to authorised recyclers and co-processing in cement kilns, ensuring safe disposal while contributing to resource recovery. In FY26, we generated 14,065 tonne and successfully diverted 9,610 tonne of hazardous waste. Circularity is essential for long-term resilience and sustainability. As 70% of GHG emissions stem from material use and recent resource extraction has outpaced the entire 20th century, we focus on moving away from the linear 'take-make-waste' model by keeping materials in use through recycling, efficiency, product innovation and green materials. Our approach is driven by two focus areas — circular business models and circular operations. Case Study: Circularity: Sustainable Tractor Driveline Design at Farm Division. The business implemented a sustainable tractor driveline design on the H2 Arjun platform with a clear focus on optimising material use while enhancing performance. The initiative centred on re-engineering key drivetrain and transmission components to reduce weight without compromising durability, safety, or functional reliability. Design interventions included integrated brake assemblies, lighter rear axle carriers and optimised hydraulic lift units. Results: • Reduction of ~40 kg per tractor, equivalent to 2 – 3% of total vehicle weight, delivered at scale across high volume platforms, improving fuel efficiency in the field while reducing upstream emissions associated with material extraction, casting, machining and logistics. • Beyond material reduction, the redesigned architecture simplifies maintenance, improves serviceability and enhances overall durability under demanding agricultural conditions. >100 (kilolitre) Water reused, offsetting SIPCOT freshwater consumption. ~320 (kilolitre) Annual water reuse potential ~650 (tonne) Avoided CO₂ emissions per tractor ~7.5 (₹ crore) Recurring cost saving yearly
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