Investment in Human Capital
Focus on our human capital is one of the core areas of our corporate strategy. The Company regards its employee relations far more importantly than a mere legal and ethical obligation. We are committed to creating a culture for our most valued asset, comprising of satisfactory compensation and benefits, congenial and safe working environment, job satisfaction, professional growth, development and competitive career opportunities.
Our employee-training program is being continually upgraded to remain in line with the changing needs of our Company and industry. During this year, we continued to invest in our Human Resource through training programs at PIM, MAP and In-house Technical Trainings through UIT and NED University as well. A 16 members from the Mehran team spent 2 days in Karachi attending the PSST sugar conference. Our Electrical department Chief Engineer has delivered a paper on Synchronous Condenser Reactive Power Compensation and has got the best paper of PSST 2019-20.
We have engaged BMA a renowned technical consultant from Germany for evaluation of our plant heat mass balance, boilers steam efficiencies and to educate us for installation of FFEs in context of our 26.5 MW power project. During the exercise, our technical team along with our sugar technology partner IPRO has developed a great synergy with BMA and our technical team learnt a lot in context of defined areas. BMA also shared a comprehensive report covering their scope of engagement. Based on positive feedback of our Technical team we look forward to working with BMA in future by developing a long-standing relationship with them.
Investment in our Working Environment
We have in the last 5 years invested Rs. 67.0 million on uplifting our working environment for employees at both Head office and Mills. At the mill, our Management House and technical House have been modernized. Last year, we have invested 10.05 million on Construction of So-safe drinking water filter plant and Colony residence repair maintenance by considering our responsibility to provide improved facilities to our workers and staffs at our mills. This year, we have invested 35 million on Water conservation EMP plan in order to conserve Canal water and utilizing Sugarcane water for the processes. The entire boundary wall facing the main road has been re-built; in addition, pavers have been laid in most parts of the residential colony and the factory area walkways.
Investment in Employee HSE
MSML employees are at the heart of the corporate strategy of the Company. The core objective of the Company is to create conducive working environment, in line with the best industrial practices and ensuring adherence to the requirements of the health and safety codes. The HSE department is entrusted with the responsibility of monitoring of HSE compliance and ensures mandatory usage of relevant safety equipment at work for workers. Continuing the standard practice this year the HSE department has conducted a three days’ workshop on safety training which seasonal contractors’ supervisory staff also attended. In addition to this Annual third party external environmental & safety audits, scheduled internal audit & inspection were performed. Through demonstrations safety observation culture was promoted to eliminate hazards which may lead to accidents, more than 3000 safety observations were made. For the awareness of employees and contractors, Global Health and Safety/ Environmental Days were also observed during the year.
We strongly believe that every sugar mill must play its role to assist in strengthening the educational environment around its vicinity. Since sugar mills are located in the rural areas of Pakistan they have an ideal opportunity to contribute where the need for education is most extreme.
One of the core initiatives of our social development programs is to provide education in the rural areas specifically near our mill premises. For this reason, three schools are running to provide quality education to our students.
Daood Memorial School (DMS)
The school is situated within the premises of the mills primarily for our employees and generally for the youth of the surrounding areas. Since its incorporation in 1998-99, the Company is providing full operational, financial and logistic support to the school. By the grace of God, and continuous efforts of the management and the teachers, the school is growing steadily, currently 490 students are enrolled, and 21 faculty members are entrusted to provide quality education. While the number of students increases, we have continued to ensure that there is no compromise on the education standards of the schools. This is benchmarked through teacher training programs as well as results of our students.
Collaboration with TCF
We have built and supported three schools with The Citizens Foundation (TCF – a renowned NGO) in rural vicinities of Sindh. These school all staff belonging to the nearby communities. These campuses have generated employment for the local women to earn a decent living. For establishment of such Schools MSM has contributed a Sum of Rupees 36.96 Million apart from the operational support. Presently more than 800 students are enrolled with these campuses coupled with more than 50 faculty members. Our first supported School in Piyaro Lund area, 13 Kms from our factory is operational since 2011 the other two supported schools situated within the locality of 12 – 18 Kms from our factory premises were came in operation in 2016 & 2018.
In order to bring some improvement in life style of the women of surrounding areas, a Vocational training Centre has been established within the MSML Staff Colony, which provides basic training to the women of the colony and surrounding areas for sewing, embroidery, cooking and stitching to the women of the colony and surrounding areas. This year the entire center has been renovated to give a modern look. At present, the vocational center is providing training to 16 plus women in multiple faculties.
Our flagship project in hospitality ambit Usman Memorial Hospital (UMH) has recently gone through major renovation in terms of building, equipment and facilities, to meet the requirements of modern era; UMH is now a 100 bed air conditioned state-of-the-art hospital. It caters to the needs of our communities, providing quality care at affordable rates. UMH has a wide range of services to offer by a great team of doctors and surgeons on our panel. Mehran supported & contributed immensely in this project and in preceding two years, we have donated a sum of Rs. 69.7million to UMH. Our efforts in this regard were also recognized by Pakistan Centre of Philanthropy and gave Mehran an award under the category of “Corporate Philanthropy and Sustainable Development Goals in Pakistan”.
The Company recognizes its responsibility towards provision of health services in the surrounding areas of Tando Allahyar. The MSML mobile dispensary unit has been operational since 2004. The dispensary is fully equipped and provides basic health care services to the needy free of cost. A dedicated full time trained relevant medical staff have been assigned for this unit. Since its establishment, the dispensary has treated a quantum of more than 65,000 patients. In addition, before the start of crushing season every year, all seasonal workers and checked by the doctor for physical fitness for the relevant job.
Farmer support services
We believe that the farmers are the enablers of our sustainable growth. Throughout the year, the Company’s representatives interact with the farmers to share the latest research and developments in emerging new varieties of sugarcane and providing them seeds to grow high yielding sugarcane crop. Our supply of seed as loan to growers has been extremely beneficial in ensuring a better crop in our area.
We cultivate high yielding varieties at our farms and after cultivating them for three years, we give them on loan to farmers for commercial purposes. This program has been a major benefactor to create rural wealth in our region for both miller and farmer as it has helped improve both farm and factory yields.
Customer satisfaction Camp
Mehran Sugar Mills limited is always keen to produce premium quality sugar, which qualifies international as well as “PSQCA” standards. Accordingly, the Company is in the process of establishing the Quality Management System based on the requirements of ISO 9001:2015 standards. For quality assurances management, a dedicated management representation is entrusted to implement and monitor the implementation of relevant policies.
Energy is considered to be the lifeline of any economy and the most vital instrument of socioeconomic development of a country. Pakistan’s sugar industry has the potential to contribute 1,500 MW of renewable energy through biomass fuel like bagasse. Power generation from bagasse will not only reduce import bill of furnace oil but also efficient use of bagasse is environment-friendly and would help mitigate greenhouse gas emissions from the country’s power sector.
Seeking the opportunity to contribute its share to the national grid, Mehran Sugar Mills limited has obtained the power generation license from national power Regulatory Authority (NEPRA) and made necessary investments to connect to the national grid. Further, MSML successfully negotiated a Power purchase agreement with HESCO for supply of 5 MW. Power supply has started from January 2015. The success of this 5 MW power plant stimulate us to initiate Co-generation on larger scale, we are in the process of setting up a 26.5 MW Co-generation Power Plant.
The Company’s governance structure has helped to achieve best practice and drive performance from the boardroom to our employees, customers, society and the environment. The business integrity has led to long term success and we are committed to conduct our business responsibility and with integrity with an aim to strengthen our reputation. We pledge to observe all the governing laws of the jurisdiction in which we operate and to comply with the best practices of the code of corporate governance.
Contribution towards Economy
The Company is a noteworthy contributor to the national economy and has contributed to the national exchequer Rs. 662 million in respects of payments towards Federal excise duty, income tax and other statutory levies. Our associated company UNICOL Limited was also able to export USD 38million of ethanol in the last financial year.
Mehran is highly conscious of ensuring that its production facility is environmentally compliant in all respects. We are conscious that it’s our responsibility to ensure compliance so as to be of no concern to the communities where we operate. We strive to make sure that the impact of our business is sustainable.
Emission and Discharges
Mehran is proud to state that we are one of the few mills in Pakistan, which has installed modern fly ash systems on 100% of its boilers thus ensuring zero fly ash discharge. The Company has invested approximately Rs. 80 million in the last five years on installing this system as well as maintaining it to ensure it runs at capacity and functions accordingly.
Waste Water Treatment
Over the last 3 years, we at Mehran have been striving to create an efficient waste water management system. We have recently completed stage three of our water discharge system whereby we have accomplished 90 percent reuse of waste water at the plant. The remaining water is used in our farms adjoining the factory. We have invested a total of Rs. 162 Million on the project and are proud to state that our waste water system was created in house by our capable engineering team. This plant is operational now and is only second of its kind in the entire sugar industry of the country.
We as a nation and responsible citizens need to understand the importance of plantation and must focus upon making our country green. Besides, community awareness and inculcation of civic sense is the need of time. We as a Company will ensure playing its role in this field accordingly this year, we have planted more than 5,000 Trees in the vicinity of our Mills, Colony, and adjacent areas.