For the Kalyani Group, sustainability involves two levels. Firstly, it's about the enterprise itself with a focus on reuse and recycling within the company's operations and secondly, it is about social initiatives, particularly in terms of rural development.
For BW Businessworld and Primus Partners’s Policy Square, Amit B. Kalyani, Joint Managing Director, Bharat Forge spoke to Davinder Sandhu, Chairman and Co-founder, Primus Partners and said, "We tackled drought-prone villages in Maharashtra, enhancing water reservoirs, which in turn significantly boosted agricultural production and incomes per capita by up to 15 times." Edited excerpts:
The Kalyani Group seems to be at the forefront of innovation and sustainability. With all eyes on you, particularly after global forums like Davos, how do you plan to drive this forward?
Sustainability, for us, involves two levels. Firstly, it's about the enterprise itself which has been focused on reducing our resources, emphasising reuse and recycling and embedding a sense of environmental responsibility within the company's operations.
Beyond that, we have taken initiatives to create positive societal impacts, particularly in terms of rural development work, which dates back to before corporate, social responsibility (CSR) became a mandate. We tackled drought-prone villages in Maharashtra, enhancing water reservoirs, which in turn significantly boosted agricultural production and incomes per capita by up to 15 times.
In renewable energy space, the company is aiming to increase its capacity from 300 to 700 megawatts by 2030. We've also become India's first certified green steel manufacturer by embracing technologies like induction heating, reducing pollution and maintaining a net-zero impact.
Considering the G20's recent discussions around recycling and the COP's emphasis on low emissions, your move into electric public transport retrofitting seems perfectly timed.
Retrofitting, particularly in the context of public transport, is a central theme in the company's strategy. We have looked at retrofitting from three angles. Firstly, the existing fleets of various forms of buses—municipal, state transport, school buses and other private operators— constitute a significant opportunity. These vehicles are assets already in use, yet they continue to contribute to urban emissions; retrofitting them to electric can address this immediately.
We have developed a retrofit solution that is not only compatible with both buses and trucks used in last-mile applications but also varies in range to suit specific needs. This modularity means that there is a tailored battery pack for shorter urban drives or extended operations without oversising.
The second aspect is the operational patterns of certain vehicles. School and employee transport buses, for example, operate point-to-point, returning to a base where they can be recharged during idle times. This makes electric retrofits an even more practical solution, avoiding under-utilised capacity and leveraging off-peak power rates or solar energy for charging.
Finally, the economic benefits of retrofitting can't be overstated. Our trials have shown significant cost-per-kilometre reductions for institutions adopting our retrofitted buses. When one considers back-to-base operations with no requirement for extensive range, the savings can be substantial. We're already seeing promising results from over 200,000 kilometres of test runs, with 30,000 kilometres alongside our customers under actual load conditions.
Within six months, we will begin converting and delivering buses to clients, lowering operating costs and increasing efficiency for them.
With Bharat Forge’s rich history with Indian Railways, how do you see your involvement evolving given the current substantial infrastructure investment and push for sustainability?
Our engagement with the railway sector is strategically significant and deeply rooted as the railway business concentrated on diesel locomotives but given India's shift towards electrification— a move unprecedented worldwide— the company's focus has pivoted to electric locomotives.
The Vande Bharat trains are just a glimpse into the potential quality enhancements in the realm of Indian railways. There's an enormous opportunity in the upgradation process, where the government has committed substantial capital expenditure.
We have ventured to grow the railway business by harnessing our wide-ranging technological capabilities. The firm is utilising expertise from various sectors within the enterprise, such as electric vehicles and defence, to innovate and deliver new products and solutions that align with the modernisation of the railways.
This includes advancements on both the hardware front and in control systems and signalling. We are collaborating with existing players in this sector to meet current needs while also spearheading the development of light rail and urban transit solutions, creating a versatile and expansive urban transportation network.
We envisage the railway sector transforming as profoundly as what we have seen in the aviation industry, with advancements offering improved connectivity and efficiency at different levels of urban and intercity travel.
Moving forward, we are also looking closely at trends that emerged, like hyperloop ideas— while they are not economically feasible for widespread adoption, they have set a course for innovation. Now, the company is working toward more practical, effective solutions within sensible parameters that can deliver similar benefits at a fraction of the cost and complexity.
Your global reach has been a cornerstone of Kalyani Group's success. How does this translate into your sustainable enterprise strategies and technological advancements?
Our multinational legacy has been about serving customers worldwide, with a focus on maintaining and growing global revenue streams. Even as Europe contends with economic uncertainties, we are confident in our technological leadership and managerial prowess to navigate these challenges.
The Indian manufacturing sector is the bedrock of our international strategy, offering compelling advantages for supplying products and solutions to the world.
We have weathered economic challenges abroad and continuously worked on technology transfer—often exporting Indian innovations internationally. While investing in subsidiaries, we strive to make India a central hub of our manufacturing due to its inherent advantages.