The document discusses green procurement practices in the automobile industry in India. It provides details on Maruti Suzuki's certification process and various green initiatives to reduce their environmental impact, including being the first company certified for EMS and using LED lights. It also discusses Maruti's green supply chain and guidelines for tier 1 and 2 suppliers to improve sustainability. One tier 1 supplier, Caparo Maruti, is highlighted for its own green efforts including a carbon reduction program.

1. Green Procurement in
automobile industry
By
Foram Shah(54)
Gayatri Rao(46)
Irshaad Patel(44)
Jayvardhan Sharma(56)
Mohini Roy(48)
Manisha Saxena(52)
Ravi Tanna(58)
Vaishnavi S.R(50)

2. Certification Process
 Phase 1 – Preliminary Environmental Evaluations
 Phase 2 – Systematic Documents Preparation
 Phase 3 - Trial Operations of EMS
 Phase 4 – Internal Evaluations – PDCA cycle
Plan
Do
Check
Act
 Phase 5 – External Evaluation

3. Green Initiatives by Maruti
 Maruti Suzuki has the distinction of being the first automobile company in
India to register a Clean Development Mechanism (CDM) project with the
United Nations Framework Convention on Climate Change (UNFCCC)*.
 First passenger car company in India to be certified for Environment
Management Systems (EMS) as per ISO 14001:1996 in 1999
 Installation of LED lights at the newly commissioned second plant, making it
the first car manufacturing plant in India to use LED technology entirely.
Normal bulb 50 watts with initial cost of Rs 60 LED bulb 22 watts with initial
cost of 1500 Rs
 Recycled water instead of raw water in paint shop in Gurgaon plant.
 Installation of air-cooled condensers in place of water-cooled condensers

4. Some more Green Initiatives by Maruti
 The hazardous wastes produced as by-products of manufacturing operations at
Maruti Suzuki include paint, phosphate and effluent Treatment Plant (ETP) sludge,
incinerator ash and used oil. The used oil is sold to authorised recyclers.
 Maruti Suzuki has been sending paint sludge, phosphate sludge and ETP sludge to
the cement industry for co-processing since 2010-11.
 The scrap generated in press and casting operations is sent to vendors who
manufacture child parts or for use in their manufacturing of relevant products.
 Aerodynamic energy-efficient fibre reinforced plastic (FRP) blades replaced the
standard blades at the cooling towers for lower energy consumption.

5. Green Back-end Supply Chain of Maruti India
Local Tier I
suppliers
Local
suppliers to
follow Green
procurement
guidelines
Tier I
suppliers to
submit Green
Procurement
agreement
Raw
Materials
supplied
MARUTI
Encourage and
support for
ISO 14001
certification
 Maruti has laid down robust sourcing
processes and procedures that
include competitive bidding and
evaluation of new supplier by all
concerned departments
(Engineering, Quality & Supply
Chain) before inclusion in the
company's supplier list.
 Maruti Suzuki felt the need for
developing a structured approach to
assess risk arising from various
suppliers in order to plan actions
proactively and mitigate negative
impacts on the company.
Assessing Tier
II Management
of Supplier

6. Green Back-end Supply Chain of Maruti
India contd..
 In 2013-14, supplier risk management was initiated in supply chain to assess
suppliers' risks in operational and financial areas. The operational risks are
assessed in the area of labour, quality, delivery performance, management
response, safety, tier-ll management etc.
 The financial risks are assessed in profitability, liquidity and funding
management. Locational risks are based on the risks associated with the
location of the supplier's manufacturing facility.

7. Green Procurement Guidelines 2013-14
Tier 1
 As per the guidelines, the tier-l suppliers are required to submit
the Green Procurement Agreement, Environment Compliance Sheet
and a copy of ISO 14001 certificate to the Company.
 So far, 150 agreements have been received by the Company.
 As on March 2014, 85% suppliers were ISO 14001 certified.
 Maruti Centre of Excellence (MACE) was set up by the Company
along with 21 suppliers in 2004. The activities of MACE include
providing training, support, and consultation to Tier- l & ll
suppliers and sales network to help them achieve world class
standards in quality, cost, service and technology orientation.
Specific c projects at supplier end were carried out for
improvement in quality, productivity, energy, yield and employee
involvement in 2013-14.
 Up gradation of Tier-II suppliers was in focus during the year. The
Company involved its Tier-I suppliers in improving the parts quality
sourced by them from Tier-II suppliers.
 The company has laid stress on local suppliers. Both the Gurgaon
and Manesar plants, have adjacent Suppliers' Parks where select
suppliers have established manufacturing units.
 Nearly 78% of the supplier base by value is located within a 100 km
radius of the company.

8.  The company has developed container for transporting steel coils. This has helped in
optimum rake utilization, reduction in truck movement and lesser damages to steel
coils during transits.
 As the materials used in car manufacturing are not renewable resources, the Company
makes efforts towards resource optimisation. Sheet metal is a primary component in
car manufacturing and the Company undertakes two main initiatives to optimise
utilisation of materials:
 One gram one component weight reduction programme: This initiative was started in
2008 and continued in the reporting year. The objective of the ‘One Gram One
Component’ programme is to reduce material use through improvements in design of
vehicles and equipment.
 Reuse of sheet metal: The scrap generated from press shop operations is sent to
suppliers for manufacturing of child parts, thus maximising steel sheet utilisation. The
suppliers send back these child parts to the Company for use in vehicle manufacturing.
 In 2013-14, two types of material were sent to suppliers for reuse:
• Trim scrap (very small pieces which are used for melting and made as ingots): 56,324
T
• Flat scrap (bigger pieces which are used for making child parts): 24,375 T

9. Green Initiatives by Tier I supplier-Caparo
Maruti India
 Caparo Maruti Limited (CML) is a world-class Tier1 sheet metal
stamping, weld assemblies and closures supplier to Maruti Suzuki (India)
and General Motors (India). Formed in 1994 as a joint venture with the
major car manufacturer, Maruti Udyog Ltd, production began in 1996
and today Caparo Maruti operates from 3 sites; Gurgaon, Halol and
Bawal.
 They provide Chassis,Dash, Quarter inner assembly,Cowl Upper assembly
and Door Assembly parts to Maruti Udyog.
 Caparo’s Drawn Products business has recently won the Sustainable
Manufacturer of the Year Award at the Insider Media’s “Made in the
Midlands” 2012 ceremony.
 In the last 12 months it had successfully implemented a programme for
the reduction of its carbon footprint.

10. Green Initiatives by Tier I supplier-
Caparo Maruti India Contd..
 Working across all levels of the business, multi-functional teams backed by
the Caparo Group purchasing initiative, lowered energy costs with over
£100,000 pa and carbon footprint by 620 tonnes pa. Overall the project
exceeded its target by a factor of 304.
 Caparo Precision Tubes and Caparo Steel Tubes India supply tubes for use in
boilers, gas storage, distribution and in nuclear plants, and Clydesdale Jones
specialise in the fabrication of low grade nuclear waste disposal containers,
used primarily in the decommissioning of nuclear reactor sites.
 The company works closely with leading gas and electricity suppliers to
radiograph welds and conduct ultrasonic inspections of turbines and boilers.

11. Tier 2 Supplier : Bhushan Steel and Strips Ltd.
 One of the vendors from which Caparo Maruti sources its raw materials
from.
 It is the 3rd largest Secondary Steel Producer with an existing steel
production capacity of 2 million tonnes per annum(approx)
 The company has three manufacturing units in the state of Uttar Pradesh
(Sahibabad Unit), Maharashtra (Khopoli unit), and Orissa
Plant (Meramandali unit) in India and sales network is across many
countries.
 It is ISO 9001:2008 & ISO 14001:2004 certified company.
Green Initiatives
 Installation of Dry Fog Systems
 Installation of organic waste converter for municipal waste management
 Presence of Steel Melting Shops

12. RAW MATERIALSBHUSHAN STEEL &
STRIPS LTD.
SOURCED
CAPARO MARUTI
STATION
PROCESSED
MARUTI UDYOG
PLANT
TRANSPORTED
Tier 1 Supply chain

13. Innovative Techniques
 Design for Recycling :
 Even the early stages of vehicle development, will determine the
reusability of their vehicles decades into the future.
 Reverse Supply Chain Management,Green Packaging to be implemented
by Maruti.
 Maruti could perform life cycle assessments on its own and supplied
products(components,systems and complete vehicles) to evaluate the
associated environmental loads.
 The assessment includes the entire life cycle of the product . Also
Maruti could offer to acquaint its supplier with the procedure.
 This could achieve optimised environmentally friendly products.
13

14. Innovative Techniques contd..
 By processing manufacturing waste, secondary raw materials can be gained
while protecting the environment.
 The focus could also be on alternative materials with natural fibres as a
substitute for classic plastics.
 Examples are wool upholstery, cotton in sound insulation panels, flax and sisal
fibres in substrates for door panels and parcel shelves, or wood fibres in seat
back panels.
 Use common platform for cars to increase manufacturing efficiency.
 Tier 1 and Tier 2 should use Renewable Energy Resources .For e.g:Solar Power
,Wind Power

15. Conclusion
A management concept whereby companies
integrate social and environmental concerns in their
business operations and interactions with their
stakeholders. CSR is a way in which companies
achieve a balance of economic, environmental and
social imperatives.

16. Feedback
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