godrej nisha project

7/29/2019 Godrej Nisha Project

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CHAPTER-1

INTRODUCTION

Company Profile.

Established in 1897, the Godrej group has grown in India from the days of the charkha to nights

at the call centres. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was a persistent

inventor and a strong visionary who could see the spark in the future. His inventions,

manufactured by his brother Pirojsha Godrej, were the foundation of todays Godrej empire. One

of Indias most trusted brands; Godrej enjoys the patronage and trust of over 400 million Indians

every single day. Their customers mean the world to us. They are happy only when we see adelighted customer smile.

With 7 major companies with interests in real estate, FMCG, industrial

engineering, appliances, furniture, security and agri care to name a few their turnover

crosses 2.5 billion dollars. You think of Godrej as such an integral part of India like the

bhangara or the kurta that you may be surprised to know that 20% of their business is done

overseas. Companies presence in more than 60 countries ensures that their customers are at

home with Godrej no matter where they go. With brands you can believe in, service excellence

you can count on and the promise of brighter living for every customer, Godrej knows what

makes India till today.

Today, were at a point in Godrejs history when our amazing past is meeting

up with its spectacular future head on. Godrej is learning and relishing being young again.

Godrej Consumer Products (GCPL) is a leader among Indias Fast Moving Consumer Goods

(FMCG) companies, with leading Household and Personal Care Products. Companies brands,

which include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow,Ezee, Protekt and

Snuggy, among others, are household names across the country. They are one of the largest

marketers of toilet soaps in the country and are also leaders in hair colours and household

insecticides. Our Good Knight brand has been placed at an overall rank 12 and continues to be


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the most trusted household care brand in the country in Brand Equitys Most Trusted Brands

Survey 2010.

Branch Offices in Mumbai, Delhi, Kolkata and Chennai ensure pan-India

coverage, while factories located at Malanpur (Madhya Pradesh), Thana (Himachal

Pradesh),Katha (Himachal Pradesh), Guwahati (Assam) and Sikkim cater to the diverse

requirements of our product portfolio. We also have a strong emerging presence in markets

outside India. With the acquisition of Keyline Brands in the United Kingdom, Rapidol and Kinky

Group, South Africa and Godrej Global Mideast FZE, we own international brands and

trademarks in Europe, Australia, Canada, Africa and the Middle East. As part of increasing our

global footprint, we have also recently acquired Tura, a leading medicated brand in West Africa,

Megasari Group, a leading household care company in Indonesia and Issue Group and Argencos,

two leading hair colorant companies in Argentina. They are driven by our mission to

continuously enhance the quality of life of consumers in high-growth markets with superior-

quality and affordable home care, personal care and hygiene products.

The Godrej Group is firmly entrenched in diverse businesses. Security Systems and

Safes, Typewriters and Word processors, Rocket Launchers, Refrigerators and Furniture,

Outsourcing Services, Machine Tools and Process Equipment, Cosmetics and Detergents,

Engineering Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils and

Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-products. The Godrej group

owns vast tracts of land in and around Vikhroli, a suburb to the Northeast of Mu mbai, Indias

commercial capital. Traditionally, this location has been their manufacturing base, but

increasingly they have moved significant production facilities inland in search of cheaper

pastures.


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1.1 HISTORY OF GODREJ COMPANY

History of The Company: Established in 1897, the Godrej group has grown in India from the

days of the charkha to nights at the call centers. The founder, Ardeshir Godrej, lawyerturned-

locksmith, was a persistent inventor and a strong visionary who could see the spark in the future.

His inventions, manufactured by his brother Pirojsha Godrej, were the foundation of todays

Godrej empire. One of Indias most trusted brand, Godrej enjoys the patronage and trust of over

400 million Indians every single day. Their customers mean the world to them. They are happy

only when they see a delighted customer smile.

With 7 major companies with interests in real estate, FMCG, industrial engineering,

appliances, furniture(FMCD), security and agri careto name a fewtheir turnover crosses 2.5

billion dollars. We can think of Godrej as such an integral part of India like the bhangara or the

kurta that we may be surprised to know that 20% of their business is done overseas. Their

presence is in more than 60 countries ensures that their customers are at home with Godrej no

matter where they go. With brands they can believe in, service excellence they can count on and

the promise of brighter living for every customer, Godrej knows what makes India tick today.

Today, there is a point in Godrejs history when their amazing past is meeting up with their

spectacular future on.

TIMELINE:

1897 - Godrej & Boyce Mfg. Co. Ltd established

1918 - Godrej Soaps Limited incorporated

1961- Godrej Started Manufacturing Forklift Trucks in India

1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps

1974 - Veg oils division in Wadala, Mumbai acquired

1990 - Godrej Properties Limited, another subsidiary, established


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1991 - Foods business started

1991 - Godrej Agrovet Limited incorporated

1994 - Transelektra Domestic Products acquired

1995 - Transelektra forged a strategic alliance with Sara Lee USA

1999- Transelektra renamed Godrej Sara lee Limited and incorporated Godrej Infotech Ltd.

2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps

Limited. Godrej Soaps renamed Godrej Industries Limited

2002 - Godrej Tea Limited set up

2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited

2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by

providing professional pest management services

2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages

& Foods Limited

2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North

America and the company was renamed Godrej Hershey Foods & Beverages Limited

2008 - Godrej relaunched itself with new colourful logo and a fresh identity


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Overview

Godrej Industries Limited is, through its chemicals division, India's leading manufacturer of oleo

chemicals and makes more than a hundred chemicals for use in over two dozen industries. The

chemicals division has built a strong manufacturing base capable of delivering international

quality products at competitive prices, and has implemented integrated systems which

ensure quick delivery of produ cts at competitive costs. The divi sion has a modern

factory in the Indian state of Gujarat, where vegetable oils are converted into

fatty acids, glycerine, fatty alcohols, alpha olefins and alpha olefin sulphonates. The plant has an

installed capacity of 30,000 tonnes per annum for making natural fatty alcohols from feedstock

such as palm stearine and palm kerneloil, both renewable, vegetable-based raw materials.

The company operates a second plant at Vikhroli in suburbanMumbai.Products from this

division are exported to developed and developing countries. The chemical division's export

turnover in 2001-02 was more than Rs 100crore, and it received export awards from

Chemex cil in 1998-99,1999-00 and 2000-01.

Godrej Good & Green

In conjunction with companies vision for "brighter living" for all stakeholders, company have

developed a long-term vision for playing an active part in creating a more inclusive and greener

India. This vision has been named "Godrej Good & Green".Good & Green is founded on shared value initiatives. The concept of shared value is defined as

policies and operating practices that enhance the competitiveness of a company while

simultaneously advancing the economic and social conditions in the communities in which it

operates. As part of Good & Green, the Group aspires by 2020, to create a more employable

Indian workforce, a greener India and innovate for good and green products.

Specifically, companies goals at the Group level for 2020 as part of this vision are:
http://www.godrejinds.com/our_products/fatty_acids/index.htmhttp://www.godrejinds.com/our_products/fatty_alcohols/index.htmhttp://www.godrejinds.com/our_products/surfactants/index.htmhttp://www.godrejinds.com/our_products/surfactants/index.htmhttp://www.godrejinds.com/our_products/fatty_alcohols/index.htmhttp://www.godrejinds.com/our_products/fatty_acids/index.htmhttp://www.godrejinds.com/our_products/fatty_acids/index.htm


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1.2 OBJECTIVES OF COMPANY.

Godrej Industries Limited is in the business of oleo chemicals and surfactants. Their objectives

are:

1. To maintain leadership in their business in India.2. To constantly improve our economic value addition.3. To keep increasing their exports.4. The company will achieve these objectives through excellence in areas of: Customer

satisfaction Quality Cost reduction

5. They will operate in existing and new business which profitability capitalizes on Godrejbrand and our corporate image of reliability and integrity.

6. Their objective is to delight our customers both in India and Abroad.7. They shall achieve this objective through continues improvement in quality. Cost and

customer service

8. They shall strive for excellence by nurturing, development and empowering ouremployees.


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1.3 MISSION,VISION AND VALUES OF GODREJ.

MISSION

Our Mission is to operate in existing and new businesses, which capitalize on the Godrejbrand and our corporate image of reliability and integrity. Our objective is to delight our

customer both in India and abroad.

We shall achieve this objective through continuous improvement in quality, cost andcustomer service. We shall strive for excellence by nurturing, developing and

empowering our employees and suppliers.

We shall encourage an open atmosphere, conducive to learning and team work. Training 1 million rural and urban youth in skilled employment Achieving zero waste, carbon neutrality, positive water balance along with reducing their

specific energy consumption and increasing proportion of renewable energy resources

Having a third of their portfolio revenues comprising good and/or green products andservicesdefined as products that are environmentally superior or address acritical social

issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of the

income pyramid

VISION

Godrej is dedicated to deliver superior stakeholder value by providingsolutions to existing and emerging consumer needs in the Household & Personal Care

business.

They will achieve this through enduring trust & relentless innovationdelivered with passion & entrepreneurial spirit.


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VALUES

Commitment to quality Customer orientation Dedication and commitment Discipline Honesty

and integrity Learning organisation Openness and transparency Respect, care and concern for

people Teamwork Trust

Our Values Commitment to Quality Customer Orientation Dedication & Commitment Discipline Honesty & Integrity Learning Organization Openness & Transparency Respect/Care & Concern for People Teamwork Trust


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1.4 PRINCIPLES OF GODREJ COMPANY

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency

and AccountabilityGIL pursues good Corporate Governance by ensuring regulatory compliance, transparency in

disclosures, efficient operational practices, strong internal controls, risk management systems,

and by engaging and operating with fairness and integrity with all its stakeholders namely

shareholders, customers, employees, suppliers, regulatory authorities and general public.

Principle 2: Businesses should provide goods and services that are safe and contribute to

sustainability throughout their life cycle

Godrej Groups Good & Green vision supports the development of goods which are

environmentally sustainable. As part of the vision, GIL aspires to develop products which

consume fewer resources (energy, water), emit fewer greenhouse gases and include a hundred

percent of recyclable, renewable, and/ or natural materials. Godrej Industries was the first Indian

entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO), a worldwide

alliance of stake holders in the palm oil industry. Its aim is to prevented forestation and to

encourage sustainable oil palm plantations. Godrej Industries participates actively at the RSPO

and sources palm products from suppliers who are themselves active members of the

Roundtable.

Additionally, biodegradable vegetable oils are used as the raw material for the manufacture of

fatty acids, glycerin, fatty alcohols and surfactants.

Principle 3: Businesses should promote the wellbeing of all employees

Godrej Industries focuses on ensuring wellbeing of all employees. Safety and health of

employees is extremely important to GIL and it is committed to building and maintaining a safe

and healthy workplace and providing a safe and healthy working environment, equipment and

systems of work for all employees.

Ensuring diversity, zero discrimination, safety and health and other attributes essential to a

healthy and good working environment are part of GILs Code of Conduct and employees in the

organization are committed to this code. Examples of a few of these codes are listed below.


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"Diversity and Anti-discrimination: We recognize merit and perseverance and encourage

diversity in our company. We do not tolerate any form of discrimination on the basis of colour,

gender, race, caste, nationality, age, marital status, sexual orientation or disability and will allow

for equal opportunities for all team members.

Diversity and equal opportunities: We value diversity within the Godrej Group and are

committed to offering equal opportunities in employment. We will not discriminate against any

team member or applicant for employment on the basis of nationality, race, colour, religion,

caste, gender, gender identity/expression, sexual orientation, disability, age,or marital status.

Godrej Industries also subscribes to the CII-ASSOCHAM Code of Conduct for Affirmative

Action.

Prevention of sexual harassment: The Company is committed to creating and maintaining an

atmosphere in which our team members can work together, without fear of sexual harassment,

exploitation or intimidation. Every team member is made aware that the Godrej Group is

strongly opposed to sexual harassment and that such behaviour is prohibited both by law and the

Group policy. We will take all necessary action(s) required to prevent, correct and if necessary,

discipline behaviour which violates this policy."

The Good & Green office launched the Good & Green policy through a launch carnival in

September 2011 whereby the employees were made aware of the Good & Green goals for 2020

and also encouraged to participate in achieving them. Constant communication during and after

the event, raised the awareness of environmental issues among the employees and also equipped

them with ways to make sustainable choices in their lives. The employees interacted with various

NGOs (Non-Governmental Organizations) that work in the space of employability or

environmental issues and took back concrete ways to make their lifestyle at home and work

good & green.

The Good & Green office also conducted a Childrens Day event in November 2011 for the

children of employees. The participating children learnt how to make their homes and

classrooms good & green.

Various other Human Resource policies flexible working hours, work from home

arrangements, part-time work, leave and benefits, adoption leave and benefits, maternity leave

and benefits, paternity leave and benefits to name a few go a long way in ensuring that the

employees successfully strike a work-life balance.


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Principle 4: Businesses should respect the interests of, and be responsive, towards all

stakeholders, especially those who are disadvantaged, vulnerable and marginalized

Recruitment of candidates from the Scheduled Caste/Scheduled Tribe and Physically Challenged

categories has been taken up as one of the major performance measures of the central

recruitment process owner. GIL has also partnered with NGOs to provide employment

opportunities and counselling to people that fall in one of those categories.

20 per cent of GILs domestic manpower belongs to the Scheduled Caste/Scheduled Tribe and

Physically Challenged categories. As part of the employee referral policy, referrals of Scheduled

Class/Scheduled Tribe/Physically

Challenged candidates are offered higher referral amounts than that offered to the general

category candidates. Furthermore, career advancement and development of individuals from

within the affirmative category is also an area of focus.

GIL has partnered with the Ambedkar Institute for handicapped in Kanpur for recruiting

physically challenged individuals and has organized workshops at the Institute on industrial

practices for skills development. Measures to support physically challenged employees, such as

lower deck buses, remote controlled access doors, and hardship allowances have also been put in

place.

GIL also provides apprentice opportunities to students who have completed some form of

technical education. In the past fiscal year, it offered job specific training to 14Scheduled

Caste/Scheduled Tribe trainees making them employable. Industrial visits and raining of ITI

students to the Valia factory also helped them understand the chemical industry.

In its effort to support education for all, GIL distributed scholarships and uniforms to scheduled

caste and scheduled tribe primary school children in a number of underdeveloped communities.

The Valia factory supports 35 Scheduled Caste/Scheduled Tribe children in the Kanerao village

with annual scholarships and other educational material. The Vikhroli factory also supported 15

Scheduled Caste/ Scheduled Tribe students with scholarships in the neighbouring community.


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Principle 5: Businesses should respect and promote human rights

Godrej Industries respects and promotes human rights for all individuals. No violations in this

regard have occurred.

Principle 6: Businesses should respect, protect and make efforts to restore the environment

Godrej Industries is a signatory to the Confederation of Indian Industrys (CII)Mission of

Sustainable Growth, which proposes to promote and champion conservation of natural resources

in Indian industry without compromising on high and accelerated growth. The CII has outlined

ten codes under the mission for attaining ecologically sustained growth which include reduction

in specific consumption of water and energy, reduction in specific generation of waste and green

house gas emissions and increased use of renewable energy and other recyclables. Godrej

Industries has put initiatives in place at its factories in order to meet the codes.

As part of the Good & Green vision there is a specific commitment to create a "Greener India".

Our business is striving towards reducing specific energy consumption, utilizing a higher

proportion of renewable energy sources, becoming carbon neutral and water positive and

eliminating solid waste sent to landfills.

A number of initiatives have been undertaken by Godrej Industries to reduce energy

consumption. These include debottlenecking some processes and increasing throughput,

increasing the use of variable frequency drives in cooling air blowers and water pumps. A high

efficiency vacuum system to reduce steam consumption has also been installed and waste heat is

being used to generate low pressure steam for some processes.

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so

in a responsible manner

For any policy advocacy, Godrej Industries ensures that it does so with the highest degree of

responsible and ethical behaviour and also works with collective platforms such as trade and

industry chambers and associations. Godrej Industries was the first Indian entity to become a

member of the Roundtable on Sustainable Palm Oil (RSPO), a worldwide alliance of stake

holders in the palm oil industry. It aims to prevent deforestation and to encourage sustainable oil

palm plantations. Godrej Industries participates actively at the RSPO and sources palm products

from suppliers who are themselves active members of the Roundtable.


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Principle 8: Businesses should support inclusive growth and equitable development

The Godrej Group recognizes the importance and value of diversity in the workplace. As a

result, it continues to endeavour to provide opportunities to socially and economically

underprivileged persons, including those belonging to Scheduled Castes, Scheduled Tribes and

other physically challenged individuals. Recruitment drives for prospective employees from each

of the above mentioned categories were conducted in the last year.

GIL has partnerships with institutes such as the Industrial Training Institutes (ITI),which focus

on skills based education in order to improve overall levels of employability. Through factory

visits for ITI students it aims to improve the overall understanding and application of their

knowledge. Apprentices are actively recruited from these institutes and later converted to

employees.

Several Godrej Group factories are also actively involved in improving the quality of life in

surrounding communities through initiatives such as educational scholarships founder privileged

students and health and hygiene awareness drives.

Youth un-employability is recognized to be a bigger crisis than unemployment. 57% of Indias

youth suffers from some degree of un-employability. 90% of employment opportunities require

vocational skills whereas 90% of school / college output is not relevant to these opportunities.

On the one hand, there is higher unemployment amongst the educated and on the other,

employers are complaining of lack of skilled manpower. The responsibility to address this

mismatch is as much of the education system as it of the industry which needs the skilled

manpower. With this idea of shared commitment and benefit of shared value, the Godrej group

has committed to skill 1 million rural and urban youth by 2020.

Employability has to do with knowledge and skills, be they in terms of basic skills(e.g.

numeracy, literacy etc.) or subject and occupation specific knowledge at different levels. These

skills alone however do not result in an increase in employability. Personal attributes and

attitudes, ranging from basic levels of reliability, common sense, attitude to work and integrity

etc. are just as important to seek employment, maintain such employment and upgrade oneself

while in a job.


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At the Godrej Group, we have started with the assumption that employability of an individual

can be captured through his / her earning potential and it is this metric that we will be using to

measure the impact of our skilling interventions.

Principle 9: Businesses should engage with and provide value to their customers and consumers

in a responsible manner

We are a customer centric company and greatly value the trust, satisfaction and loyalty of our

customers across the world. Our primary focus is delighting our customers, both external and

internal. Customer centricity is part of GILs Code of Conduct. We strive to ensure that

customer needs are satisfied and that our products and services offer value to the customer.

Our customer focus does not only extend to external customers alone, but includes internal

customers as well. We firmly believe that external customer satisfaction can be attained only if

internal customers needs and reasonable expectations are met and our employees are strongly

encouraged to act in accordance with this principle.


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1.5 INDUSTRY STRUCTURE AND DEVELOPMENTS

With several developed nations struggling to come out of the economic crisis, the center of

gravity has been shifting towards developing economies. While the overall economic outlook for

India continues to be strong, GDP growth rate has moderated in recent quarters withFY 2012

growth projected at 6.5% as compared to 8.4% in FY 2011, as per the advance estimate by

Central Statistical Organization (CSO). At a disaggregated level, this is attributable to a 2.5 per

cent growth in agriculture and allied activities, a growth of 3.6 per cent in industry and 8.8 per

cent in services as compared to a growth of 7.0 per cent, 6.8 per cent and 9.2 per cent

respectively during 2010-11.

Global uncertainties, increased volatility in commodity prices and equity markets combined with

slow progress on reforms has impacted economic growth, but the opportunity for India remains

tremendous. Restoring growth through reforms and good governance will be a key imperative

and will create a virtuous cycle of boosting production and consumption, enhancing investor

confidence and reviving growth.

The agriculture sector, which is the largest employer in India, benefitted from favourable

monsoons in FY 2012. The FY 2013 Union Budget has increased the outlay to the sector by 18%

to enhance agriculture growth and back programs which have led to record food grain production

in FY 2012. In the past years, the government has provided the agriculture sector a boost, by

funding enablers for facilitating productivity increase, strengthening agri-distribution and storage

as well as providing additional access to credit for farmers.

The animal feed industry in India is evolving towards being a more organized sector with

multinational feed millers also entering the market. The industrys growth and potential are

supported by the fact that India is among the largest livestock-producing countries and that the

feed industry has been traditionally comprised of home mixers.

Oleo chemicals are used in a variety of applications including personal care ( hair care, skin care,

oral care, cosmetics), home care (laundry detergents) and pharmaceuticals. Increase in Indias

GDP/capita has led to a strong growth in the personal and home care market. Additionally, the

significant size of the global personal and home care ingredients markets also represents a

potential opportunity. The current environment has however, seen fluctuating raw material costs

(i.e, palm and vegetable oil)which impact the oleo chemicals businesses.


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The real estate sector witnessed a tough year in FY 2012. After reaching a peak in prices as a

result of increased construction costs and anticipated demand, residential absorption rates fell

significantly across many cities, while rentals for commercial projects remained stagnant.

Availability of affordable financing is a key driver for consumer demand and high interest rates

combined with high inflation in the last fiscal year have been a deterrent. Regulatory changes

also resulted in project delays across the real estate sector. Going forward, overall demand and

need for housing in India continues to be strong particularly due to rapid urbanization and

migration.

GODREJS INNOVATIONS

Some of Godrejs firsts:

. In 1897, Godrej introduced the first lock with lever technology in India.

In 1902, Godrej made the first Indian safe.

In 1920, Godrej made soap using vegetable oil, which was a huge hit with the vegetariancommunity in India

In 1955, Godrej produced Indias first indigenous typewriter

In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam)

Introduced Indias first and only 100% CFC, HCFC, HFC free refrigerators


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Introduction with Godrej Consumer Products Limited

Brands of soaps manufactured at GCPL:

Godrej Lime

Godrej Fresh

Cinthol Deodorant

New Gnaga

Godrej Shikakai

Godrej No. 1

GCPL, also renders its production facilities for the production of other company

products.

Rexona (Hindustan Lever Ltd.)

Jai (Hindustan Lever Ltd.)

Breeze (Hindustan Lever Ltd.)

Dettol(Reclitt and Coleman(I) Ltd.)

GCPL, Malanpur through the alpha olefin sulphate( AOS) which is biodegradable makes soaps

at GCPL a shade part from others.


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1.6 RESEARCH PROBLEM FOR COMPANY

PROBLEM 1: Internal Control Systems and their Adequacy

Your Company has a proper and adequate system of Internal Controls, to ensure that all assets

are safeguarded and protected against loss from unauthorized use or disposal and that transaction

are authorized, recorded and reported correctly. Your Companys Corporate Audit and

Assurance Department which is ISO 9001 certified, issues well documented operating

procedures and authorities with adequate built-in controls at the beginning of any activity and

revised procedures if there is any major change. The internal control is supplemented by an

extensive programme of internal, external audits and periodic review by the management. The

system is designed to adequately ensure that financial and other records are reliable for preparing

financial information and other data and for maintaining accountability of assets.

Corporate Audit & Assurance Dept, during the year, facilitated a review of your companys risk

management programme. The risks and mitigation measures were reviewed by your companys

Risk Committee and corrective measures initiated.

During the year the Corporate Audit & Assurance Dept carried out various reviews and provided

assurance on compliances to laid down policies, process and internal controls.

PROBLEM 2:Information Security

Your Company accords great importance to the security of its information assets. Toensure thatthis gets desired focus and attention, a Chief Information Security Officer,who is attached to the

Corporate Audit and Assurance Department, is entrusted with thetask of ensuring that your

Company has the requisite security posture.

Your Company has in place, all the procedures and practices that are in line with theISO Security

Standards. Your company is now ISO 27001 certified.

PROBLEM 3: Opportunities and Threats

Specialty products are expected to improve margin and strengthen your companysposition in the

oleo chemicals space. At the same time, if new capacity additionsannounced earlier go on

stream, there could be an over-supply situation in the marketwhich can put pressure on margins.

The Estate management business can continue to accrue revenues by optimizing theavailable

space usage in the campus and leveraging the benefits of the location such asassured power


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supply, better connectivity and infrastructural benefits. The over supplysituation for commercial

space in the Real Estate market continues to put pressure on therentals and the margins.

PROBLEM 4: Risks and Concerns

Your Company has put a risk management framework in place post a comprehensive reviewof

its risk management process. The review involved understanding the existing riskmanagement

initiatives, zero-based identification and assessment of risks in the variousbusinesses as also the

relative control measures and arriving at the desired countermeasures keeping in mind the risk

appetite of the organization. The Risk Committee hasperiodically reviewed the risks in the

various businesses and recommended appropriate riskmitigating actions.

The Commodity based businesses are likely to be affected by vagaries of the weather,demand for

edible oil, oilseed production, etc. The increase in bio-diesel manufacturingcapacity is expected

to impact vegetable oil prices. The business is exposed to commodityprice risks relating to raw

materials which account for the largest portion of the costsof both the Chemicals and Vegoils

businesses. The Chemicals business growth will alsodepend on the growth of end user industries

like polymer, detergent, cosmetic and personalcare.

As a significant employer and chemicals producer, to ensure occupational safety,employment

standards, production safety, and environmental protection, your Companymaintains strict

safety, health, environmental protection and quality control programs tomonitor and control

these operational risks.

Macro economic factors including economic and political developments, naturalcalamities which

affect the industrial sector generally would also affect the businessesof your Company.

Legislative changes resulting in a change in the taxes, duties andlevies, whether local or central,

also impact business performance and relativecompetitiveness of the businesses.

PROBLEM 5: Cautionary Statement

Some of the statements in this management discussion and analysis describing theCompanys

objectives, projections, estimates and expectations may be forwardlooking statements within

the meaning of applicable laws and regulations. Actualresults might differ substantially or

materially from those expressed or implied.Important developments that could affect the

Companys operations include a downtrendin industry, significant changes in political and

economic environment in India andabroad, tax laws, import duties, litigation and labour

relations.


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1.7 LIMITATIONS OF STUDY

A major limitation is that in program pertaining attitudinal changes. The response got very

subjective.

Limited number of workers was used as sample figure to generalize theanalysis.

During the interview the limitation of the worker understands the perceptionof interviewer.

205 of the participants had to consult their colleagues for filling up thequestionnaire. Workers were not able to express their views extensively as they had

limitedtime to spare.

CERTIFICATE & AWARDS

ISO-14001 for environment management system since 1999. Excellence in safety promotion in M.P Best Safety from NSC for safety performance. Best Eco-Friendly industry in Gwalior from MPPCB 2nd Runner-up award in state level competition on Management

fromCII, Bhopal.

Winner of the ta Praman of the NSCI safety awards forthe year2001


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1.8 RESEARCH METHODOLOGY.

THE SOURCES OF THE DATA

PRIMARY DATA SECONDARY DATA

The primary data and Secomdary data consists of :

PRIMARY DATA:

Questionnaire

Observation and interview technique

SECONDARY DATA

Information is collected through internet

From various text books

Journals and magazines

Book

Periodicals


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CHAPTER-2

INITIATIVES TAKEN BY GODREJ IN DEVELOPMENT

2.1 Human Resources initiatives in GCPL:

Revised suggestion scheme up to superintendent cadre. Employees family visit . Development of contract workmen through quality circle. Merit award. Training need identification and preparation of competency profile of our workmen. Before working hours training. Focus on technical training through vikaspath projects. Basic computer training to workmen. Health promotion scheme. Scholarship to SC/ST school children E-learning. Hindi literacy program for illiterate workmen. English learning classes for quality circle members. Career counseling for employees children. Assessment centre.

2.2 Rural development activities

GCPL perform some of the rural development activities for the people ofMalanpur. This activity fulfills the corporate social responsibility towards local public. Form

theperspective of P&A executive of GCPL, Malanpur Mr. Hamid Ali is that we must fulfill or

develop the local people because we are taking water, air and the support from them.


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The rural development activities which GCPL perform are as follows:

Organised eye contract operations.

Promoted entrepreneurship among the youth.

Organized medical health check-up.

Helping in upgrading the village from primary to middle school.

Distribution of award of meritorious students.

Organized enter school & cultural events.

Running of dispensary & organize distribution of medicines.

Organized awareness training program on various health & environment related topic for

villagers.

Running of Gwalior action center, under national safety council, M.P. chapter.

Took initiative to improve the infrastructure beautification in Malanpur area.

Distribution of posters on environment friendly on diwali festival in all school.

Organized speech competition & quiz for students on importance of saving of environment.

Organized pollution checking of vehicles.

Helped industries in fire accidents.

Organized various training program on SHE (safety, health, & environment).

Organized inter-industry safety posters & slogans competition.

2.3 TPM (Total productivity management) in GCPL:-

. Pillar 1- 5S: TPM starts with 5S. Problems cannot be clearly seen when the work place is

unorganized. Cleaning and organizing the workplace helps the team to uncover problems.

Making problems visible is the first step of improvement.


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Pillar 2 Jishu hozen (Autonomous maintenance):This pillar is geared towards developing

operators to be able to take care of small maintenance tasks, thus freeing up the skilled

maintenance people to spend time on more value added activity and technical repairs. The

operators are responsible for upkeep of their equipment to prevent it from deteriorating.

Pillar 3- Kaizen

"Kai" means change, and "Zen" means good ( for the better ). Basically kaizen is for small

improvements, but carried out on a continual basis and involve all people in the organization.

Kaizen is opposite to big spectacular innovations. Kaizen requires no or little investment. The

principle behind is that "a very large number of small improvements are move effective in an

organizational environment than a few improvements of large value. This pillar is aimed at

reducing losses in the workplace that affect our efficiencies. By using a detailed and thorough

procedure we eliminate losses in a systematic method using various Kaizen tools. These

activities are not limited to production areas and can be implemented in administrative areas as

well

.Pillar 4- Plant maintenance: It is aimed to have trouble free machines and equipments

producing defect free products for total customer satisfaction. This breaks maintenance down

into 4 "families" or groups which were defined earlier.

Pillar-5 Quality maintenance: It is aimed towards customer delight through highest quality

through defect free manufacturing. Focus is on eliminating non-conformances in a systematic

manner, much like Focused Improvement. We gain understanding of what parts of the equipment

affect product quality and begin to eliminate current quality concerns, and then move topotential

quality concerns. Transition is from reactive to proactive (Quality Control toQuality Assurance).


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Pillar -6Training It is aimed to have multi-skilled revitalized employees whose morale is high

and who has eager to come to work and perform all required functions effectively and

independently. Education is given to operators to upgrade their skill. It is not sufficient know

only "Know-How" by they should also learn "Know-why". By experience they gain, "Know-

How" to overcome a problem what to be done. This they do without knowing the root cause of

the problem and why they are doing so. Hence it become necessary to train them on knowing

"Know-why". The employees should be trained to achieve the four phases of skill. The goal is to

create a factory full of experts.

.Pillar 7 Offices TPM: Office TPM should be started after activating four other pillars of

TPM (JH, KK, QM, and PM). Office TPM must be followed to improve productivity, efficiency

in the administrative functions and identify and eliminate losses. This includes analyzing

processes and procedures towards increased office automation. Office TPM addresses twelve

major losses.


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CHAPTER -3

3.1 EMPLOYEES HEALTH AND SAFETY MEASURES.

What are the features of employee welfare:

Employee welfare is a comprehensive term including various services, facilities and amenities

provided to employees for their betterment.

* The basic purpose in to improve the lot of the working class.

* Employee welfare is a dynamic concept.

* Employee welfare measures are also known as fringe benefits and services.

* Welfare measures may be both voluntary and statutory. Objectives behind employee welfare

Employee welfare is in the interest of the employee, the employer and the society as a whole.

The objectives of employee welfare are: -

* It helps to improve.

* It improves the loyalty and morale of the employees.

* It reduces labor turnover and absenteeism.

* Welfare measures help to improve the goodwill and public image of the enterprise.


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* It helps to improve industrial relations and industrial peace.*

It helps to improve employee productivity.

Name of the agencies of employee welfare

1. Central government: - The central government has made elaborate provisions for the health,

safety and welfare under Factories Act 1948, and Mines Act 1952. These acts provide for

canteens, crches, rest rooms, shelters etc.

2. State government: - Government in different states and Union Territories provide welfare

facilities to workers. State government prescribes rules for the welfare of the workers and

ensures compliance with the provisions under various labor laws.

3. Employers: - Employers in India in general looked upon welfare work as fruitless and barrenthough some of them indeed had done pioneering work.

4. Trade unions: - In India, trade unions have done little for the welfare of workers. But few

sound and strong unions have been the pioneering in this respect. E.g. the Ahmedabad textiles

labor association and the Mazdoorsabha, Kanpur.

5. Other agencies: - Some philanthropic, charitable d social service organizations like: - Seva

Sadan society, Y.M.C.A., etc.


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3.2 INTRODUCTION WITH THE CONCEPT OF EMPLOYEES

WELFARE

Rapid industrialization and urbanization have made employees dependent oncapitalists. Inflation has made their lot poor and they find it difficult to maintain their standard of

life. In such situation employee welfare facilities enable workers to live a richer and more

satisfactory.

Employee welfare defines as efforts to make life worth living for workmen.

These efforts have their origin either in some statute formed by the state or in some local custom

or in collective agreement or in the employers own initiative.

To give expression to philanthropic and paternalistic feelings.

To win over employees loyalty and increase their morale.

To combat trade unionism and socialist ideas.

To build up stable labor force, to reduce labor turnover and absenteeism.

To develop efficiency and productivity among workers.

To save oneself from heavy taxes on surplus profits.

To earn goodwill and enhance public image.

To reduce the threat of further government intervention.

To make recruitment more effective (because these benefits add to job appeal).


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Philosophy and Perceptive of Labor Welfare Activities

In an industrial society labor welfare activities, not only effects on the far-

reaching workforce but it also effects on various aspects of human resources. All such activities

which are not only secure existential necessities but also ensures improved spiritual and

emotional quotient, including in labor welfare. The short and long term vision to build a humane

society is centered in labor welfare activities.

The theories of Labor welfare activities firmly believe in that, behind any

machine, the man is only responsible for achieving the organizations mission. With complete

satisfaction and be committed on any cause, a person may act in its best. Various welfare

facilities are provided by the organization keep not only employees motivated and committed

even their family members also. Term "welfare" expresses many ideas, meanings, and to

additional means, such as well status, health, happiness, prosperity and development of human

resource etc. The welfare of both social and economic aspects is also included. The social

concept of welfare implies the welfare of a man, his family and his community. These three

aspects inter-relate, and work together. Within economic aspects of welfare, is involved

promotion of economic growth by increasing production and productivity. The concept of

welfare is also concerned with time and space.

The changes have similar effects on the welfare system. As welfare

progressive and dynamic and keep pace with the changing times as a result, the material of

welfare remains potentially volatile. The features of welfare may also be varying depending on

the nation in all fields. Therefore, its meaning and components can be differ in different

countries & different places.

Philosophy of Labor welfare activities:

The philosophy of labor welfare activities are based on the success of

industrial development and the theory of harmony depends on the cooperation and relationship

between labor and management (employer). Worker has a fund of knowledge and experience to


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perform his job. If his ability and skill to be properly utilized with the right direction, the worker

can be a working good contributor in the prosperity of the organization. And it can be achieve by

work satisfaction of the worker. The labor welfare activities in a form of health care centres to

facilitate provided through the idea of a good medical care center to ensure job satisfaction and

productivity improvements will help more. His staffs to be healthy are a basic need of an

organization.

. It is part of the facilities provided by the employer, that would associated with healthcare of

workers and it would ensure their minimum health hazardous. The concerning law prescribes the

minimum standard, but a progressive employer to expand its activities must protect the health of

workers and their dependents. In return, their cooperation will be wholehearted, work to

maximum efficiency and attitude will be fair and friendly towards them.

Labor welfare activities perceptive:

The attention on Labor welfare activities has led to a rising interest by the

stakeholders who have now started to identify the problems of labor welfare and to formulate

their position. The main stakeholders are the investor of enterprises, employees, trade

associations or unions, and government etc. Therefore, they are gradually increasing information

about the potential of labor welfare activities and even putting vision on labor welfare activities

in future prospects.

From this perspective, some basic questions as follows:

Should Labor welfare activities be compulsory for enterprises?

If mandatory, should labor welfare activities be regulated by law or social

organization?

If voluntary, how to secure the interests of the employees at the enterprise- level?


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3.3 Types of welfare services

* Intramural: - These are provided within the organization like:

1. Canteen,

2. Rest rooms,

3. Crches,

4. Uniform etc.

* Extramural: - These are provided outside the organization, like: -

1. Housing,

2. Education,

3. Child welfare,

4. Leave travel facilities,

5. Interest free loans,

6. Workers cooperative stores,

7. Vocational guidance etc.


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3.4 EMPLOYEES HEALTH AND SAFETY BY GODREJ.

Safety, Health, Environment: Target:

1. Zero accident,

2. Zero health damage

3. Zero fires.

In this area focus is on to create a safe workplace and a surrounding area that is not

damaged by our process or procedures. This pillar will play an active role in each of the other

pillars on a regular basis.

A committee is constituted for this pillar which comprises representative of officers

as well as workers. The committee is headed by senior vice President (Technical). Utmost

importance to Safety is given in the plant. Manager (Safety) is looking after functions related to

safety. To create awareness among employees various competitions like safety slogans, Quiz,

Drama, Posters, etc. related to safety can be organized at regular intervals.

Given the amount of contact time consumers spend with their furniture at offices and homes, this

element of urban living has become a significant contributor to health and well-being in thecurrent scenario. Hence, GI has made health and well-being an essential deliverable for all

products and services, and it is a key performance area for all employees of Godrej Interio. GI

facilitates health and well-being through ergonomic design of products and careful use of raw

materials which aid in creating comfortable, safe, and healthy work environments for consumers.

GI also uses its expertise in these areas to create a healthy and positive work environment for its

own employees.

Employees spend more than 70% of their non-sleep time in offices, & are un-knowingly

spending almost all the time in badly designed / utilized offices spaces which are in-turn very

dangerous to health. Research conducted by Godrej Interio Ergonomic Cell has shown that today

close to 71% of employees complain about discomfort at work. Majority of these problems are


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due to un-ergonomic office furniture design and more importantly, due to non-application of

basic Office Ergonomics principles.

GI strongly believes that the best way to stay healthy is to know your health risks and work

towards preventing them. Godrej Interio's Wellness @ Work Program provides employees

access to information that helps them learn techniques to develop a healthy lifestyle in the

workplace and at home. The program's mission is to develop a culture of wellness at the

workplace. The three main initiatives of this program are listed below:

i.Wellness Tips

With this initiative, GI hopes to bring Wellness to the forefront for all the individuals, work-

groups, and organizations they make contact with. GIs 'Wellness Tips' cover a vast range of

topics; from good posture, to office exercises, to optimal use of office gadgets and accessories.

These tips are being emailed to more than 20,000 people every week for the past 2 years. With

strategic linkages in the coming years, GI plans to reach out to more than 100,000 people

weekly, in the near future.

ii.Ergometer

GI has the unique distinction of having full time Ergonomists on its rolls who overlook the

deployment of ergonomic design principles in product development, and consumer-focussed

communication on the right way to use products. The team has designed a product selection tool,

the Ergometer, which helps the customer choose the chair that is most suitable to their body

dimensions and the task being performed. These tools are currently used at all GI knowledge

centers and at 37 company showrooms.

iii.Wellness Camps & Ergo Audits

Last year, GI launched the unique, value-added service of Wellness Camps & Ergo Audits,

wherein the team of Ergonomists create awareness about Musculoskeletal Disorders amongst

employees, assess the current Ergonomic level of office spaces and suggest corrections in terms

of workspace layout. The Human Resources and EHS departments of various customer

organizations found excellent value in this initiative. In fiscal year 2011-12, GI conducted

Wellness Camps for 72 organizations and Ergo Audits for 9 different organizations.


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3. Occupational Health & Safety

Godrej Interio Health and Safety PolicyWhatever Godrej Interio (GI) does, it shall be done

safely. GI is committed to maintaining compliance with local and national Occupational Health

and Safety (OHS) laws that govern performance, and aims to go beyond this compliance with

certification to OHSAS 18001 guidelines. GI operates in this manner, not only because they

believe workplace health and safety is essential to respect human life, but also because it

promotes good business practices and pays high dividends. In that respect, working safely is a

condition of employment at all its facilities.

GI believes that all accidents are preventable, as all hazards can be safeguarded either physically

or through safe working procedures. Therefore, Occupational Health and Safety training will

take place at all levels of the organization and periodic audits of the system will be conducted by

management; whose responsibility it is to ensure that injuries are prevented.

In efforts to build and support a culture that fosters and nurtures a safety mindset in the

organization, employees will assume defined responsibilities and accountability. To incentivize

this, GI will hold different competitions to create awareness and engage employees on OHS

related aspects at the divisional and corporate level, and winners shall be suitably recognized. In

line with this philosophy, safety performance for the last few years is enumerated below.

On the path to the organizational mission of ZERO ACCIDENTS, focused on key indicators

like hazard identification, near miss reporting, safety kaizens, safety trainings, etc. To sensitize

and promote safety issues amongst employees, incentives are offered to report near miss

incidences. In 2011-2012, an increase in near Godrej Interio GI miss incident reporting (554

reported) (refer HS-01) helped in ramping up its safety measures and reducing the number of

accidents in facilities. recorded 3 reportable and 25 non-reportable accidents (for 3 year trend,refer HS-02), there were no fatalities, and OHSAS reportable frequency rate was 0.79 (refer HS-

03).Occupational Health & Safety Trends at a Glance


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3.5 Provisions which Factories Act 1948

provides for welfare

* Adequate, suitable and clean washing facilities separately for men and women workers.

* Facilities for storing and drying clothes

.* Canteens, if more than 250 workers are employed.

* Welfare officer, wherever more than 500 workers are employed.

* First aid boxes are provided.

Merits & Demerits of employees welfare activity Merits:

Motivates employees

Employee Retention

Minimized social evils

Better Job satisfaction

Cuts down labor turnoverDemerits:

Huge investment

Employees being dissatisfied


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OBJECTIVES OF THE STUDY-

To know the effectiveness of welfare measures. How many people actually know about the welfare measures?

What suggestive measures must be taken regarding welfare? To study the satisfaction level of employees with respect to their welfare in Godrej To know the working condition and what are things that affect them not to work

properly.

To find out the suggestions.


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CHAPTER-4

DATA ANALYSIS

SWOT Analysis of the Company:

Strengths

Cost advantage Asset leverage Effective communication Online growth Loyal customers Market share leadership Strong management team Strong brand equity Strong financial position Supply chain Pricing Reputation management

Weaknesses

Lack of capital invrestent r &d Lack of innovation Lack of MNC culture Hierarchial structure

Opportunities

Acquisitions Asset leverage Emerging markets and expansion

abroad

Online Product and services expansion Takeovers

Threats

Competition Cheaper technology Economic slowdown External changes (government,

politics,

taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories, products, or

services

Price wars


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CHAPTER-5

SUGGESTIONS

Although GCPL, is always committed towards their employees and their families but

than also I would like to give some suggestions.

It is must and necessary there should be proper coordination and understanding amongexecutives and non- executives groups.

It is also necessary that the non-executives groups must be motivated time to time byproviding them some incentives, benefits or doing some extra works for them.

Quality of food must be improved to satisfy the employees.

The feelings of satisfaction can be made better by making more employees friendlyespecially for non-executives population.

Educational assistance is not up to the mark there is need to improvement.

RECOMMENDATIONS

The company should review and make some more proper arrangement for employees.

Proper training should be provided to all employees to avoid any unwanted accidents.

Employees must be motivated and encouraged. Management must understand employees problem and try to solve and not just

discourage them.


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CONCLUSION

Godrej Consumer Product Limited is one of the largest fast moving consumer goods company

which is having 10-15% market share with 5 industrial plants. Where as I have under gone tosummer training I have found that GCPL, . The job satisfaction level of employees is in its

satisfactory level it never leg behind in putting the optimum input through various means to

motivate the employees for the maximum best output.Godrej is well aware about its social and

environmental responsibility but along with must consider its employees problems and its health

and safety measures and try to encourage them.


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FINDINGS

The findings show that the employees are quite satisfied with the policies, rules and regulations

of GCPL. The compensation and the welfare dimension of GCPL are at a higher acceptability

position among the employees. More health and safety measures must be taken by Godrej

company and of course the employees are satisfied by the treatment of management towards its

employees.

godrej nisha project

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