Somany Ceramics has filed its Business Responsibility and Sustainability Report for FY26 with BSE and NSE, outlining its performance on environmental, social, and governance parameters. The filing, submitted by Company Secretary Anuj Kalia, confirms the company's adherence to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report highlights the company's commitment to sustainability through initiatives like Zero Liquid Discharge (ZLD) systems and the integration of renewable energy sources.

Environmental Stewardship

The company identified water conservation and energy management as key material issues. Both Kadi and Kassar facilities operate as ZLD units, treating and reusing 100% of wastewater through three effluent treatment plants. To support water management, the company secured an Annual Canal Water Agreement and obtained a No Objection Certificate from the Central Ground Water Authority. In terms of energy, the company secured an additional 9.9 MWp solar capacity for the Kassar plant and utilizes biofuels to reduce reliance on conventional sources. The report notes a rise in Scope 1 emissions to 79,331.00 metric tonnes of CO2 equivalent in FY26 from 61,379.38 metric tonnes in the previous year.

Social Performance

The company reported a workforce of 1,739 employees and 2,624 workers as of the end of FY26. Permanent employees totaled 1,443, while permanent workers numbered 558. The report indicates that 100% of permanent employees and workers are covered by health and accident insurance. Safety metrics showed a Lost Time Injury Frequency Rate (LTIFR) of 0.3 for employees and 1.5 for workers per million person hours worked. The company recorded one employee fatality during the financial year.

Governance and Oversight

The Risk Management Committee, chaired by Managing Director & CEO Abhishek Somany, oversees the implementation of sustainability policies. The report confirms that the company has policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). It also details the company's subsidiary structure, including the acquisition of a 51% stake in Dura Build Care Private Limited in July 2025. The report states there were no monetary penalties or fines imposed by regulatory bodies during the year.

Somany Ceramics has secured board approval to invest a total of ₹75.80 crore across three entities, comprising two external acquisitions and a capital infusion into an existing subsidiary. The strategic move aims to expand manufacturing capacity for glazed vitrified tiles and establish a presence in the construction chemicals sector in Nepal. The board meeting, convened on July 13, 2026, authorized these transactions to drive future business growth in the southern market and international territories.

Investment Breakdown

The board's decisions encompass three distinct investment proposals. The following table outlines the financial allocations and stake acquisitions:

Strategic Expansion and Targets

The largest allocation of ₹58.80 crore is directed towards M/s Siravit Ceramics Private Limited. This investment, to be completed within approximately 90 days, will fund the creation of a manufacturing capacity of around 9 million square metres per annum of glazed vitrified tiles. While the target entity was incorporated in October 2021 and has not yet commenced commercial operations, the acquisition is intended to cater to future business growth in the southern market. The transaction is classified as a related party transaction under SEBI regulations but will be conducted at arm's length, with no interest held by the promoter or group companies.

In a bid to grow its international footprint, the company approved an investment of up to ₹2.00 crore in M/s V.S. Industries Private Limited, a Nepal-based entity incorporated in April 2026. This acquisition of up to 50% equity share capital aims to establish a manufacturing presence in Nepal through a joint venture basis focusing on construction chemicals. The transaction, subject to regulatory approvals in both India and Nepal, is expected to conclude within 120 days. The investment will be made in Nepalese Rupees based on prevailing exchange rates.

Subsidiary Capital Infusion

The board also sanctioned an additional investment of up to ₹15.00 crore in M/s Sudha Somany Ceramics Private Limited (SSCPL), a subsidiary of the company. This infusion, via subscription to equity or preference shares, is earmarked for financing capital expenditure related to the modernization and upgradation of existing plant and machinery at SSCPL. The subsidiary, incorporated in December 2015, reported a turnover of ₹2,430.69 lakh in the financial year 2025-26. As a related party, the transaction will be executed at arm's length.