Mahindra Heavy Engines first in India to double its energy productivity

Mahindra Heavy Engines Ltd (MHEL), a part of the Mahindra Group, has become India’s first and the world’s third manufacturing unit to double its energy productivity from a 2016 baseline, in a record time of 4 years, considerably ahead of its target. This is aligned to the company’s The Climate Group EP 100 program commitment in alliance with The Climate Group.

MHEL has achieved this feat through its membership to The Climate Group’s EP100 initiative, a growing group of energy-smart companies  committed to improving their energy productivity and doing more with less. The key steps in enhancing energy productivity at MHEL included adoption of technology for:
- Energy efficient lighting
- Energy efficient air-conditioning
- Energy efficient motors and appliances
- Usage of alternate fuels
- Smart metering for real time monitoring of energy consumption along with other natural resources

The company also ensured manufacturing efficiency improvement through cycle time reduction, production shift optimisation, resource optimisation and built flexibility in the process to avoid addition of equipment. 

Commenting on the achievement, Mike Peirce, Corporate Partnerships Director, The Climate Group said, “Congratulations to Mahindra Heavy Engines Ltd on doubling their energy productivity well ahead of their target year. By integrating smarter energy use into their business strategy, they are driving down greenhouse gas emissions while boosting the bottom line. MHEL is the first EP100 member from India to achieve this ambitious goal and is leading by example. We hope the news will inspire many more companies to join the initiative and accelerate a clean economy.”

Vijay Kalra, CEO - Mahindra Vehicle Manufacturers Ltd. & Chief Manufacturing Operation, Automotive Sector, M&M Ltd. added, “Energy productivity improvement can bring about an array of direct and indirect impacts that collectively help in ensuring the sustainability quotient of a business. The EP 100 journey has enabled Mahindra to reduce cost, drive innovation and support the environment. Doubling energy productivity in short span of time is a feat that we are very proud of.”

As the world looks at ways to reduce its energy requirements, MHEL has showcased its efforts on putting energy efficiency at the heart of its business growth strategies.

The other Mahindra Group companies that have signed EP 100 include Mahindra & Mahindra, the first company globally to make the commitment; Mahindra Holidays & Resorts India that joined in 2016; Mahindra Vehicle Manufacturers and Swaraj Engines that joined in 2019.

MHEL now expects to double its energy productivity (from the current level)  further over the next eight years. The development seems significant as about 60-70 percent of variable cost in the automotive manufacturing industry stems from energy requirements. As per an estimate, the entire Mahindra Group has been saving around Rs 100 crore in value from energy savings per year. Further, the initiative will help in reducing the company's carbon footprint and thereby the global warming.

(With inputs from Shahkar Abidi)