SUSTAINABILITY REPORT 2013-15 
   
 
 
People
Safety
Quality
Availability
Environment
Community
Productivity
Engineering
Excellence
Continuous
Improvement
Annexures
 
Summary Report
 
 
EXECUTIVE SPEAK
MESSAGE FROM THE CO-CHAIRMAN & CEO
 
Humankind is known for its ingenuity and has an illustrious record of overcoming challenges. The burning question today is, are we solving them fast enough? More so in areas that really matter? Life-threatening challenges like climate change and healthcare inequalities have been left unsolved for too long. With every passing day more people are bearing the brunt, when they shouldn't have to. While we are all aware about the gravity of these challenges, we seem to ignore the need for speed. By not addressing sustainability challenges on an urgent basis, we are contributing to business, environment and social crises of epic proportions.
We cannot afford to be patient.
At Dr. Reddy's, we believe impatience is a beautiful premise. Innovations are born out of impatience towards imperfections. Revolutions are born out of impatience towards unjust conditions. Transformations are born out of impatience towards slow or no progress.
'Don't be patient' is our rallying call for triple bottom line action. Empathy and dynamism are the guiding principles which resonate across all our decisions and actions.
 
Good Health
 
 
In the reporting period, we articulated a new brand ethos 'Good Health Can't Wait'. It adds much needed urgency and immediacy to our existential purpose of accelerating access to affordable and innovative medicine.
Our commitment to empathy and dynamism was tested in war-torn Ukraine and we are proud of our Ukraine team, which exhibited extraordinary courage and ensured continued availability of medicines even in areas under separatist occupation.
 
Good Economics
 
A healthy bottom lines helps power a wider, deeper and more affordable healthcare delivery system. 'Productivity' and 'Availability' are our means towards these ends. In the reporting period, we recorded significant progress on both these fronts.
To build pace into our productivity enhancement programme, we adopted a two-pronged approach. Along with large-scale, pan-organisation transformative projects like digitisation of processes, we implemented a fast turnaround programme: 'one simplification project every week'. This approach has contributed significantly to people, machine and material productivity. As per the POBOS report, our operational equipment effectiveness stood at 53% as against the industry standard of 47%.
 
   
Good Earth
 
The health of our planet has a direct bearing on the quality of our lives. Our environment investment nearly doubled in FY15 to ₹621 million from ₹327 million in FY14. We initiated a number of mass conservation measures, like the set up of a cogeneration power plant which will cater to 65% of the power requirement and 100% of the steam requirement of the Srikakulam plant and SEZ areas, and has an annual savings potential of ₹240 million.
Along with increased investments, we also enhanced our accountability by including Scope 3 emissions in our reporting ambit.
 
Good Neighbourhood
 
To reach more lives in the most efficient manner, we increased our CSR spend by approximately 50%. We invested ₹291.7 million in FY15 as compared to ₹198.6 million in FY14 towards need-based interventions in areas like education, healthcare, hygiene and livelihoods.
The Self-Managed Teams (SMT) concept, spearheaded at Dr. Reddy's as part
of our skill building exercise, has become a vibrant movement. Over and above empowering large swathes of economically disadvantaged youth through meaningful training and employment, it is also enhancing the pharma talent pool
by developing highly skilled technicians who are productive, responsible and self-motivated. Today, we have approximately 1,400 members in SMTs across our operations. Our 'learn while you earn' model provides them the opportunity to pursue higher education and rise in the organisational hierarchy.
Our sustainability report details our efforts and their outcomes across the triple bottom line. I request you to read this report and share with us your suggestions, expectations and aspirations, because the better aligned we are with our stakeholders, the more agile we can be.
 
Regards,
G. V. Prasad
Co-chairman & CEO