Varroc Engineering Limited has significantly strengthened its environmental, social, and governance (ESG) credentials, achieving notable improvements in sustainability ratings and operational performance. The global tier-1 automotive components supplier announced these developments on World Earth Day, reinforcing its commitment to sustainable manufacturing and environmental stewardship.

Enhanced ESG Performance and Recognition

The company has achieved substantial progress in external ESG assessments across multiple rating agencies. Building on previous ratings from CRISIL ESG Ratings & Analytics Limited and SES ESG Research Private Limited, Varroc has now received an ESG rating of 75 from CFC Finlease Private Limited, a SEBI-registered ESG Rating Provider.

The EcoVadis improvement has elevated Varroc's global percentile ranking from the 18th to the 34th percentile, earning the company the "Sustainability Committed" badge. This advancement reflects stronger performance relative to global peers and demonstrates the effectiveness of Varroc's ESG framework across its international operations.

Renewable Energy and Carbon Reduction Achievements

Varroc has made substantial progress in transitioning to clean energy and reducing its carbon footprint. The company increased renewable energy usage to approximately 40% of its total electricity consumption in FY25-26, representing 36% of overall energy consumption including process fuels. This marks a substantial year-on-year increase with a clear roadmap to surpass 50% in the near term.

Through efficiency-led initiatives across its global manufacturing footprint, the company reduced energy intensity and avoided over 28,000 tonnes of CO₂ emissions in FY 2026 compared to the previous year. The implementation of over 100 energy efficiency projects worldwide supported an approximately 26% reduction in carbon emissions during FY 2026.

Circular Manufacturing and Water Stewardship

Varroc continues advancing circular manufacturing practices with impressive waste management results. Over 90% of total waste generated is recycled, supported by robust scrap management systems that minimize landfill dependency and improve material efficiency. The company has also achieved year-on-year reduction in overall waste generation.

Water stewardship remains a key priority, particularly in water-stressed regions. Varroc has implemented Zero Liquid Discharge (ZLD) systems across key facilities, enabling over 90% wastewater recycling and reuse, reinforcing its commitment to responsible water management.

Kham River Restoration Impact

Extending sustainability efforts beyond operations, Varroc continues contributing to the restoration of the Kham River through comprehensive environmental initiatives. The restoration project has achieved significant measurable impact:

The Kham River Restoration Mission received global recognition as one of the top five finalists worldwide for the WRI Ross Center Prize for Cities, selected from over 200 applications across 148 cities in 62 countries. This recognition reinforces that locally rooted, data-led, and community-driven environmental action can meet the highest global benchmarks.

Leadership Perspective and Future Outlook

Chairman and Managing Director Tarang Jain emphasized the company's commitment, stating that environmental sustainability shapes every aspect of Varroc's operations and growth. The improvement in ESG ratings reflects progress across energy transition, emissions reduction, and responsible manufacturing.

Looking ahead, Varroc will continue focusing on key improvement areas, including Scope 3 emissions, deeper supply chain ESG integration, and enhanced external assurance, with a target to further improve its EcoVadis score. As ESG considerations increasingly influence investor decisions, Varroc's improving ratings and disclosures strengthen its positioning among global automotive component players, enhancing stakeholder confidence and supporting long-term value creation.

Varroc Engineering Limited has officially announced key changes in its senior management personnel through a press release dated April 8, 2026. The automotive components manufacturer disclosed the resignation of its Group Chief Human Resources Officer and the appointment of a new executive to the role under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Leadership Transition Details

The company announced that Mrs. Kavita Kulkarni will resign from her position as Group Chief Human Resources Officer, effective from the close of business hours on April 10, 2026. According to her resignation letter dated January 8, 2026, she intends to explore new opportunities outside the organization to pursue her entrepreneurial journey. Mrs. Kulkarni has served as Group Chief Human Resources Officer for the past seven years, playing a pivotal role in shaping Varroc's people strategy and leading key initiatives across talent development, leadership building, and future-ready workforce planning.

New Group CHRO Appointment

Mr. Avijit Roy has been appointed as the new Group Chief Human Resources Officer, effective from April 10, 2026. He will report to Arjun Jain, Whole Time Director & CEO – Business I, and will spearhead Varroc's group human resources strategy, driving a people-first, future-ready agenda aligned with the company's growth ambitions across India and key international markets.

Professional Background and Experience

Mr. Roy brings over 27 years of rich experience across the automotive and manufacturing ecosystem, having held senior HR leadership roles with leading global organizations:

Strategic Focus and Vision

In his new role, Avijit will focus on strengthening organizational capability, enabling a high-performance culture, and accelerating talent transformation in an increasingly digital, technology-led mobility ecosystem. His appointment reinforces Varroc's commitment to invest in its people and culture as a core driver of long-term success.

Commenting on the appointment, Arjun Jain, CEO – Whole Time Director & CEO-Business I, stated: "At Varroc, our people drive our ambition to deliver products that enable a world class safer, smarter, and more sustainable mobility ecosystem. Avijit comes onboard with demonstrated ability to build agile, future-ready organizations and align talent strategy with business priorities in varied environments."

Key Competencies and Strategic Impact

The new Group CHRO has demonstrated expertise in several critical areas that align with Varroc's transformation journey:

• Leadership development and total rewards programs
• Digital HR transformation initiatives
• Culture integration and organizational design
• Strategic workforce planning and M&A integrations
• Business pivots and market expansion support
• Large-scale organizational transformations

Transition Timeline and Continuity

The leadership transition is structured to ensure seamless continuity:

This strategic appointment reflects Varroc Engineering Limited's commitment to strengthening its leadership team with experienced professionals capable of driving organizational transformation and supporting business growth objectives in the evolving mobility ecosystem.