THE CHALLENGE
The production quality was never the problem. This vertically integrated textile manufacturer in Tamil Nadu, running spinning, dyeing, and garment units with around 300 workers, had been exporting to European fashion brands for years. Revenue was approximately INR 140 Cr, with nearly 70% coming from EU markets.
Then two buyers sent similar communications within weeks of each other. Future purchase orders would require documented evidence of social governance systems, supply chain due diligence processes, and functioning worker grievance mechanisms. Both cited their own preparation for EU CSDDD obligations.
The company had ISO and quality certifications but had never built formal social governance infrastructure. Labour practices were managed through HR routines that differed between units. Supplier oversight was limited to quality and delivery. There was no grievance mechanism beyond an informal open-door understanding with floor supervisors, and no structured way to demonstrate any of this to an external reviewer.
THE APPROACH
SVEGA delivered a governance system build covering Pillar 02 (Workforce Governance Architecture), Pillar 03 (Ethical Supply Chain Controls), Pillar 04 (Grievance and Escalation Infrastructure), and Pillar 05 (Social KPI Assurance Readiness).
TIMELINE
9 Weeks
KEY OUTCOMES
- Unified workforce governance model across all three production units with standardised policies, metric definitions, and ownership structures
- Supplier due diligence framework covering 22 upstream suppliers with risk segmentation, onboarding controls, and review cadence
- Formal grievance mechanism with anonymous reporting channel, documented investigation workflows, and resolution tracking accessible to workers across all units
- Social governance evidence pack structured for buyer review, covering workforce practices, supplier oversight, grievance infrastructure, and KPI definitions
- Both EU buyers confirmed governance requirements were met, orders continuing without disruption
