1. Agro Industries and Water April 7 th, 2016

2. Presentation Flow F&B sector – water impacts Water Security  Efforts towards water use efficiency  Water balance at a catchment level

3. Challenges Monsoon dependency will be impacted by climate change Depletion in groundwater levels By ‘25, demand to shoot up to 1.5X the level of ’00 ITC Perspective Water intensive businesses (Paper & Pulp, Food processing) Agri supply chain will be vulnerable Cannot look at it as an ITC challenge Source: 11 th Five-Year Plan Water – a growing concern Food security Agro Sector Water Security

4. Sector wise Demand

5. Industry Perspective  60% industries impacted by water availability, expected to impact 87% in next decade  Higher cost of water drives water conservation & recycling efforts  Price for industries – 3 X times that for domestic consumers

6. F&B - Water Risk  Conflicts with local communities over access  Concerns about water risks are raised by shareholders and other investors  Industrial wastewater pollutes public water resources  Conflicts with local communities over access  Concerns about water risks are raised by shareholders and other investors  Industrial wastewater pollutes public water resources  Disruptions or declines in water supply limit industrial use  Prices increase for water and water-intensive commodities  Water quality issues can lead to food contamination  Disruptions or declines in water supply limit industrial use  Prices increase for water and water-intensive commodities  Water quality issues can lead to food contamination  Company loses license to operate  Lack of access to water – inability to process – food wastages  Company loses license to operate  Lack of access to water – inability to process – food wastages Physical ReputationRegulatory

7. Water Use Efficiency – ITC Efforts within the factory premises: Sub-metering of consumption points – trend analysis Maximise recycled/reused water Target settings and KPI monitoring Towards water neutrality – Rainwater Harvesting Minimum Freshwater Requirement Water Balance Net Annual Ground water Availability/year (A)3844 Ha.m. Estimated Draft for all existing users/year (B)7060 Ha.m. Aquifer Over-Exploitation = (B/A)183% Agriculture is the primary demand Focus area for water use efficiency Water Demand Water Use Efficiency – Catchment Level Decentralized Wastewater Treatment System –Nepal, Pune, Assam Natural treatment – minimizes chemical load

8. Key Interventions – Catchment Level Demand Side  Agricultural demand efficiency Irrigation efficiency Use of Tensiometer Farming practices, e.g. Laser Land Leveling  Stakeholders’ awareness Supply Side  Rejuvenation of traditional cascading tank systems  Revival of water bodies  Aquifer Mapping & Recharge Augmenting of rainwater harvesting structures Sanitation control measures to prevent groundwater contamination

9. Way forward - Integrated Watershed Development  A holistic regulatory approach  Industry must partner Government Contribution of scientific knowledge and resources  Focus on infrastructure and institution building at grassroots' level  All stakeholders need to work together