NEW DELHI (India CSR): In a move demonstrating deep commitment to its surrounding communities and environmental stewardship, Seshasayee Paper and Boards Limited (SPBL) has significantly invested in Corporate Social Responsibility (CSR) initiatives during the financial year 2025. The pulp and paper sector company, which operates primarily in rural areas and is described as a value creator for thousands of farmers and skilled/semi-skilled labour in its neighbourhood, exceeded its mandatory CSR spending obligation, channeling funds into critical areas like education, healthcare, village infrastructure, and innovative agricultural support programs.
SPBL’s commitment to social objectives has been a long-standing priority. For the financial year ended March 31, 2025, the company’s CSR activities were applicable as per Section 135 of the Companies Act, 2013. Based on the relevant calculations, including the average net profit, the total CSR obligation for FY 2025 was determined to be Rs 6.59 crores. Demonstrating its proactive approach to community welfare, the company’s expenditure on CSR during this period totaled Rs 6.76 crores, or specifically Rs 6.76 crore. This resulted in an excess amount spent of Rs 16.81 lakhs for the financial year, which is available for set off in succeeding financial years. Notably, the spending for FY 2025 represented the total amount spent, with no unspent amounts at the end of the year. The sources indicate that this spending was incurred against projects other than ongoing projects for the financial year. There were no administrative overheads or expenses on impact assessment reported for CSR activities in FY 2025.
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Table: CSR Performance of SPBL in FY 2025
| Parameter | Details |
|---|---|
| Company Name | Seshasayee Paper and Boards Limited (SPBL) |
| Financial Year | 2025 |
| CSR Obligation | Rs 6.59 crores |
| Actual CSR Spent | Rs 6.76 crores (Rs 675.81 lakhs) |
| Excess CSR Spending | Rs16.81 lakhs (available for set-off in future years) |
| Unspent CSR Amount | Nil |
| Spending on Ongoing Projects | None |
| Administrative Overheads | Nil |
| Impact Assessment Cost | Nil |
| Breakdown of CSR Spending | |
| • Education (Schools & Institutions) | Rs 2.92 crores |
| • Village Infrastructure | Rs 1.28 crores |
| • Drinking Water Supply | Rs 1.18 crores |
| • Healthcare & Preventive Care | Rs 1.27 crores |
| • Others | Rs 11 lakhs |
| Assets Created/Acquired Under CSR | Rs 1.71 crores |
| Major CSR Focus Areas | Education, Health, Water, Village Infrastructure, Farmer Welfare |
| Flagship Initiatives | Lift Irrigation Scheme using treated effluent water (1,500 acres irrigated) |
| Tree Farming Support | Over 14 crore seedlings distributed; 20,772 acres planted |
| Farmer Support Activities | Subsidized seedlings, technical guidance, minimum support price contracts |
| Sustainability Practices | Wastewater reuse, ESPs, anaerobic & secondary treatment, use of renewable inputs |
| Recognition | Lift Irrigation Scheme recognized by UNDP and overseas experts as a Role Model |
| Voluntary Sustainability Reporting | Business Sustainability Report drafted voluntarily |
| CSR Compliance Status | Fully compliant and exceeded statutory requirements |
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Targeted Investments for Community Upliftment
The sources provide a detailed breakdown of how the Rs 6.76 crores was allocated across various impactful initiatives. This targeted approach reflects SPBL’s understanding of the specific needs within its operating regions. The expenditure distribution was as follows:
- Expenditure on running of schools and contribution to other educational institutions: Rs 2.92 crores.
- Providing infrastructure facilities in nearby villages: Rs 1.28 crores.
- Supply of drinking water to nearby villages: Rs 1.18 crores.
- Promoting health care including preventive health care: Rs 1.27 crores.
- Others: Rs 11 lakhs.
This breakdown highlights a significant focus on education, which received the largest share of the CSR budget. The company has a long-standing history of supporting educational institutions, running two higher education schools and an elementary school specifically for the benefit of poor children in the neighbourhood.
Innovative Agricultural Support and Resource Management
Beyond traditional social welfare, SPBL has integrated its operational practices with community support, particularly benefiting farmers who are crucial stakeholders as suppliers of raw materials like wood and sugarcane bagasse. A hallmark of this integration is the unique and innovative Lift Irrigation Scheme. The company uses its treated effluent water to irrigate nearly 1,500 acres of land in which local farmers cultivate sugarcane. This tripartite arrangement involves SPBL providing treated waste water, the associate company Ponni Sugars (Erode) Limited procuring the sugarcane and providing bagasse to SPBL, and SPBL utilizing the bagasse for paper production. This scheme, which turns a waste into wealth, has been operating for over 35 years and has gained recognition as a Role Model from Overseas Experts and the UNDP.
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Furthermore, as part of its tree farming activities aimed at augmenting available resources, SPBL supports farmers directly. The company runs large-scale nurseries and provides quality clonal and bare-root seedlings of Eucalyptus and Casuarina breed at subsidized rates to farmers. It also assists them with technical help through collaboration with institutions like the Forest College and Research Institute attached to Tamil Nadu Agricultural University, Coimbatore, to achieve higher yields and revenues. The company also identifies and supports the cultivation of newer wood species like Melia-Dubia and Subabul suitable for pulp production. The company is committed to collaborating with small farmers and entering into contracts to buy back wood at Minimum Support Prices or Ruling market prices, whichever is higher. During FY 2025, over fourteen crore seedlings were made available to farmers for planting in about 20,772 acres of land. While not explicitly categorized under the specific CSR spending breakdown in, these activities are deeply intertwined with the company’s commitment to sustainable sourcing and farmer welfare, aligning with the broader social objectives outlined in its CSR policy.
Commitment to Environmental Stewardship and Social Well-being
The paper industry is highlighted in the sources as being considered one of the most sustainable, utilizing renewable resources, recycling, and efficient processes. Paper itself is described as biodegradable, recyclable, and environmentally friendly. SPBL’s operations demonstrate this, using plantation/farm forestry wood, sugarcane bagasse, and recycled waste paper. The company places utmost attention on the conservation and improvement of the environment. Facilities like Electro Static Precipitators, an Anaerobic Lagoon, and a Secondary Treatment System are in place to comply with pollution control norms. The use of treated effluent water for irrigation is a prime example of this commitment.
SPBL’s engagement in providing basic infrastructure facilities, drinking water, and healthcare to nearby villages, as detailed in the CSR spending breakdown, further underscores its role in enhancing the quality of life for the communities it operates within. The expenditure of Rs 1.28 crores on infrastructure facilities, Rs 1.18 crores on drinking water supply, and Rs 1.27 crores on health care demonstrates a balanced approach to community development. Additionally, Rs 1.71 crores was spent on the construction/acquisition of any asset through CSR activities during the year.
Overall, Seshasayee Paper and Boards Limited’s CSR report for FY 2025 paints a picture of a company that not only meets its regulatory obligations but goes beyond them, embedding community welfare and environmental responsibility into its operational philosophy and strategic initiatives. The voluntary drafting of a Business Sustainability Report, despite not being mandatory for the company based on market capitalization ranking, further emphasizes this commitment to transparency and sustainable practices. The comprehensive spending across education, health, infrastructure, and agriculture highlights a holistic approach to fostering growth and sustainability in its operational areas.
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FAQs: SPBL’s CSR Spending in FY 2025
1. What was SPBL’s total CSR obligation for FY 2025?
SPBL’s total CSR obligation for the financial year 2025 was Rs 6.59 crores, as calculated under Section 135 of the Companies Act, 2013.
2. How much did SPBL actually spend on CSR in FY 2025?
SPBL spent a total of Rs 6.76 crores (Rs 675.81 lakhs) on CSR initiatives, exceeding its mandatory requirement.
3. What were the major areas of CSR investment for SPBL?
The main areas of investment included:
- Education: Rs 2.92 crores
- Village Infrastructure: Rs 1.28 crores
- Drinking Water Supply: Rs 1.18 crores
- Healthcare: Rs 1.27 crores
- Others: Rs 11 lakhs
4. Was there any unspent CSR amount for the year?
No, there was no unspent CSR amount at the end of FY 2025.
5. What innovative CSR practices does SPBL follow?
SPBL runs a Lift Irrigation Scheme using treated effluent water to irrigate 1,500 acres of farmland, benefiting local farmers. It also supports tree farming by providing over 14 crore seedlings and technical support.
6. Does SPBL provide any support to farmers?
Yes, SPBL supports farmers with subsidized seedlings, technical guidance, and buyback contracts at Minimum Support Prices or higher, promoting sustainable and profitable farming.
7. Has SPBL received any recognition for its CSR efforts?
Yes, its Lift Irrigation Scheme has been recognized as a Role Model by overseas experts and the United Nations Development Programme (UNDP).
(India CSR)
