Orkla India Limited orkla disclosed on July 25, 2026, that renewable energy sources accounted for 59% of its total electricity consumption during the financial year 2025-26. The fast-moving consumer goods (FMCG) firm submitted its Business Responsibility and Sustainability Report (BRSR) to the National Stock Exchange of India Limited and BSE Limited, highlighting a strategic shift toward cleaner operations as a key driver of long-term value creation for shareholders.

The filing, made pursuant to Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company’s progress under its “Plan Nurture” sustainability framework. While the report confirms no independent external assurance was undertaken for the BRSR data, management stated that disclosures align with internal data governance processes. The Board of Directors retains overall oversight of business responsibility policies, with the Corporate Social Responsibility & Environmental, Social and Governance Committee responsible for specific decision-making on sustainability issues.

Operational Sustainability Metrics

Orkla India reported significant strides in environmental stewardship during the reporting period. All manufacturing facilities located in Karnataka transitioned to 100% renewable electricity, contributing to the overall 59% renewable share across the company’s operations. This transition was enabled through a Group Captive agreement with CleanMax, facilitating access to solar and wind energy.

Regarding packaging, the company noted that 56% of its packaging is currently recyclable, utilizing paper, rigid plastics, glass, and metal. Initiatives such as the launch of MTR Prakriti single-sourced spices in recyclable packaging and structural optimization of Eastern products contributed to this figure. The company aims to achieve 100% recyclable packaging by 2030.

Social Governance and Employee Well-being

On the social front, Orkla India achieved 100% coverage for compliance training, including Environment, Health and Safety (EHS) programs at factory levels. For non-compliance training, which includes technical and leadership development, the company achieved 97% coverage against a target of 70%. Anti-Bribery and Anti-Corruption (ABAC) e-learning was delivered to 86% of white-collar employees and 88% of blue-collar employees.

The company reported five workplace accidents during the year, despite a commitment to zero accidents. To mitigate risks, Orkla India implemented measures such as installing life line fall protection systems and conducting gap assessments for interlock mechanisms. Additionally, the company launched a Whistle Blower portal and hotline to strengthen ethical reporting channels for employees and business partners.

Community Impact and CSR

Orkla India’s Corporate Social Responsibility interventions impacted over 900,000 lives in FY2025-26. Key achievements included creating 60 million liters of rainwater harvesting capacity, onboarding and training more than 2,200 farmers, and serving 2.9 million meals to school children. These efforts align with the company’s 2030 ambitions, which include replenishing over 160 million liters of water and positively impacting 10,000 farmers through livelihood initiatives.

What the Numbers Show

The divergence between the high adoption of renewable energy in Karnataka (100%) and the overall corporate average (59%) indicates that geographic location remains a primary constraint on the company’s decarbonization speed. While the Karnataka facilities have fully transitioned, other operational locations likely rely on grid power with lower renewable penetration. This suggests that future progress toward the 2030 goal will depend heavily on securing green energy agreements outside Karnataka or investing in captive renewable infrastructure at non-Karnataka sites. Furthermore, the strong performance in employee training coverage (97-100%) contrasts with the occurrence of five workplace accidents, highlighting a potential gap between theoretical safety knowledge and practical on-ground execution that management must address to achieve its zero-accident target.

Orkla India Limited has received a show cause notice from the Commercial Taxes Department proposing a demand of Rs 8.41 Cr for Financial Year 2023-24. The notice, issued under Section 73 of the TNGST Act, 2017 and the CGST Act, 2017, pertains to alleged discrepancies regarding Input Tax Credit (ITC) and the reversal of common ITC. The company stated that it intends to contest the allegations by filing detailed objections with the relevant authorities within the stipulated timeline.

The demand is broken down into three components: a tax demand of Rs 5,23,57,426, proposed interest of Rs 2,64,39,783, and a penalty of Rs 52,85,742. The notice, dated July 20, 2026, was issued by the Office of the Assistant Commissioner (ST), Ayyappanthangal Assessment Circle, Chennai. It raises issues concerning the reconciliation of exempt supplies, credit notes, and transactions with related or distinct persons.

Breakdown of Proposed Demand

The allegations primarily arise from the department's interpretation of provisions and the reconciliation of information disclosed in various GST returns and statements filed by the company. Orkla India maintains that the issues raised are based on the department's view and is currently evaluating the contents of the notice.

In response to the communication, the company is preparing to submit detailed objections along with supporting documentation. Orkla India further stated that it would evaluate the legal options available under the applicable laws to address the demand. The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI Listing Regulations.