Buhin unlocks new market with CBAM compliance

Pushing the boundaries to make global expansion a reality

Buhin Group of Companies, based in Chennai, specializes in machining and tooling solutions, providing valves and shafts for two-wheeler engines. Established in 1994, the company had its humble beginnings as a throttle shaft manufacturer. However, since then, it has grown to cater to varied and highly specialized precision machine parts requirements with a special focus on the needs of the automobile and electrical sector. Having captured the Indian market, Buhin now looked at global expansion.

Buhin came very close to success when its first import order from the European Union came through. However, a critical hindrance remained: the EU’s latest carbon tax, the Carbon Border Adjustment Mechanism (CBAM). The importer specifically mentioned that the deal could only go through if Buhin was able to meet CBAM compliance requirements. With no prior knowledge of CBAM, Buhin’s dreams of expanding operations faced a key trade barrier.

Building a sustainability management infrastructure with TSC

The EU’s CBAM compliance will impact 15–40% of India’s steel exports to Europe, as per reports. Buhin was resolute in minimizing this impact by quickly setting up a digital infrastructure to meet CBAM’s regulatory requirements. Having never conducted a carbon assessment of its products, the company lacked the infrastructure to estimate embedded emissions in its product range.

The Sustainability Cloud’s CBAM exporter solution was integrated for data collection, embedded emission calculations, reporting, and auditing to ensure compliance. This marked Buhin’s first step towards building a robust sustainability assessment framework that not only addressed immediate compliance needs but also positioned the company for long-term competitiveness in the global market.

Calculating embedded carbon emissions

As an automotive and electrical component manufacturing company specializing in valves and shafts for two-wheeler engines, calculating carbon emissions became a critical step for Buhin to expand its operations. With the EU’s stringent regulations mandating compliance with specific emission thresholds for imported components, Buhin needed to assess its embedded emissions to ensure market access.

The Sustainability Cloud’s CBAM solution transformed this challenge into an opportunity. By automating data collection across its supply chain and defining precise emission calculation and attribution rules for every product and process, Buhin achieved accurate and reliable emission assessments. The solution also streamlined quarterly reporting for exported products, enabling seamless tracking of embedded emissions per shipment or invoice. This comprehensive approach empowered Buhin to meet regulatory requirements, maintain compliance, and establish its position in the global market.

Workforce upskilling and education in sustainability management 

Sustainability management has recently become a key component of business operations. While organizations recognize its importance, many lack the knowledge and skilled workforce required to execute it effectively. For Buhin, upskilling its workforce in sustainability management was crucial—not only to meet CBAM compliance requirements but also to align with the company’s long-term sustainability goals and remain competitive in a rapidly evolving market.

The Sustainability Cloud’s TSC NetZero played a pivotal role in this transformation by providing comprehensive training to Buhin’s team. The training sessions covered the core implications of CBAM on their operations, emphasizing how non-compliance could lead to significant trade barriers and affect market access. This holistic approach empowered Buhin’s workforce to take ownership of sustainability initiatives, driving meaningful progress toward the company’s environmental and operational objectives.