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 today‟s Godrej empire. One of India‟s 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 a delighted 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, we‟re at a point in Godrej‟s 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 India‟s 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
1

the most trusted household care brand in the country in Brand Equity‟s 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 superiorquality 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 Mumbai, India‟s commercial capital. Traditionally, this location has been their manufacturing base, but increasingly they have moved significant production facilities inland in search of cheaper pastures.

2

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, lawyerturnedlocksmith, 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 today‟s Godrej empire. One of India‟s 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 care – to name a few – their 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 Godrej‟s 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

3

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

4

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 products at competitive costs. As part of Good & Green.000 tonnes per annum for making natural fatty alcohols from feedstock such as palm stearine and palm kerneloil. companies goals at the Group level for 2020 as part of this vision are: 5 . The division has a modern factory in the Indian state of Gujarat. Good & Green is founded on shared value initiatives. to create a more employable Indian workforce. a greener India and innovate for good and green products. and it received export awards from Chemexcil in 1998-99. This vision has been named "Godrej Good & Green". India's leading manufacturer of oleo chemicals and makes more than a hundred chemicals for use in over two dozen industries. The chemical division's export turnover in 2001-02 was more than Rs 100crore. Specifically. The company operates a second plant at Vikhroli in suburbanMumbai. The plant has an installed capacity of 30. Godrej Good & Green In conjunction with companies vision for "brighter living" for all stakeholders. glycerine. company have developed a long-term vision for playing an active part in creating a more inclusive and greener India. fatty alcohols. 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.1999-00 and 2000-01. the Group aspires by 2020. through its chemicals division.Overview Godrej Industries Limited is.Products from this division are exported to developed and developing countries. alpha olefins and alpha olefin sulphonates. both renewable. where vegetable oils are converted into fatty acids. vegetable-based raw materials.

development and empowering our employees. 6. The company will achieve these objectives through excellence in areas of: Customer satisfaction Quality Cost reduction 5. Their objective is to delight our customer‟s both in India and Abroad. They will operate in existing and new business which profitability capitalizes on Godrej brand and our corporate image of reliability and integrity. They shall achieve this objective through continues improvement in quality. 6 .2 OBJECTIVES OF COMPANY. Godrej Industries Limited is in the business of oleo chemicals and surfactants. Cost and customer service 8. To keep increasing their exports. 3. Their objectives are: 1. To maintain leadership in their business in India. To constantly improve our economic value addition. 7. 4. 2.1. They shall strive for excellence by nurturing.

disease prevention) for consumers at the bottom of the income pyramid VISION  Godrej is dedicated to deliver superior stakeholder value by providing solutions to existing and emerging consumer needs in the Household & Personal Care business.  They will achieve this through enduring trust & relentless innovation delivered with passion & entrepreneurial spirit.1. We shall strive for excellence by nurturing.3 MISSION.g. MISSION  Our Mission is to operate in existing and new businesses.” 7 .  We shall achieve this objective through continuous improvement in quality. carbon neutrality. sanitation. health. cost and customer service. which capitalize on the Godrej brand and our corporate image of reliability and integrity. Our objective is to delight our customer both in India and abroad. 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 and services – defined as products that are environmentally superior or address acritical social issue (e.  We shall encourage an open atmosphere. conducive to learning and team work. developing and empowering our employees and suppliers..VISION AND VALUES OF GODREJ.  Training 1 million rural and urban youth in skilled employment  Achieving zero waste.

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 8 .VALUES Commitment to quality Customer orientation Dedication and commitment Discipline Honesty and integrity Learning organisation Openness and transparency Respect.

regulatory authorities and general public. equipment and systems of work for all employees. fatty alcohols and surfactants. GIL aspires to develop products which consume fewer resources (energy. Its aim is to prevented forestation and to encourage sustainable oil palm plantations. and/ or natural materials. employees. renewable. risk management systems. Additionally. As part of the vision. Transparency and Accountability GIL pursues good Corporate Governance by ensuring regulatory compliance.4 PRINCIPLES OF GODREJ COMPANY Principle 1: Businesses should conduct and govern themselves with Ethics. emit fewer greenhouse gases and include a hundred percent of recyclable. a worldwide alliance of stake holders in the palm oil industry. Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Godrej Group‟s Good & Green vision supports the development of goods which are environmentally sustainable. 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. customers. Examples of a few of these codes are listed below. Godrej Industries participates actively at the RSPO and sources palm products from suppliers who are themselves active members of the Roundtable. water). 9 . transparency in disclosures. Principle 3: Businesses should promote the wellbeing of all employees Godrej Industries focuses on ensuring wellbeing of all employees. and by engaging and operating with fairness and integrity with all its stakeholders namely shareholders. glycerin. efficient operational practices. biodegradable vegetable oils are used as the raw material for the manufacture of fatty acids. suppliers.1. zero discrimination. Ensuring diversity. safety and health and other attributes essential to a healthy and good working environment are part of GIL‟s Code of Conduct and employees in the organization are committed to this code. strong internal controls. Godrej Industries was the first Indian entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO).

Constant communication during and after the event. Various other Human Resource policies – flexible working hours. Prevention of sexual harassment: The Company is committed to creating and maintaining an atmosphere in which our team members can work together. leave and benefits. correct and if necessary. colour. sexual orientation. race. adoption leave and benefits. age. gender identity/expression. gender. work from home arrangements. Diversity and equal opportunities: We value diversity within the Godrej Group and are committed to offering equal opportunities in employment. raised the awareness of environmental issues among the employees and also equipped them with ways to make sustainable choices in their lives. caste." 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. 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. part-time work. religion. We do not tolerate any form of discrimination on the basis of colour. discipline behaviour which violates this policy. gender. Godrej Industries also subscribes to the CII-ASSOCHAM Code of Conduct for Affirmative Action. marital status. disability. 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‟."Diversity and Anti-discrimination: We recognize merit and perseverance and encourage diversity in our company.or marital status. age. The Good & Green office also conducted a „Children‟s Day‟ event in November 2011 for the children of employees. sexual orientation or disability and will allow for equal opportunities for all team members. 10 . caste. We will not discriminate against any team member or applicant for employment on the basis of nationality. We will take all necessary action(s) required to prevent. paternity leave and benefits – to name a few – go a long way in ensuring that the employees successfully strike a work-life balance. without fear of sexual harassment. nationality. race. exploitation or intimidation. maternity leave and benefits. The participating children learnt how to make their homes and classrooms „good & green‟.

referrals of Scheduled Class/Scheduled Tribe/Physically Challenged candidates are offered higher referral amounts than that offered to the general category candidates. The Valia factory supports 35 Scheduled Caste/Scheduled Tribe children in the Kanerao village with annual scholarships and other educational material. Measures to support physically challenged employees. In its effort to support education for all. 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. GIL also provides apprentice opportunities to students who have completed some form of technical education. GIL distributed scholarships and uniforms to scheduled caste and scheduled tribe primary school children in a number of underdeveloped communities. The Vikhroli factory also supported 15 Scheduled Caste/ Scheduled Tribe students with scholarships in the neighbouring community. 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. towards all stakeholders. In the past fiscal year. it offered job specific training to 14Scheduled Caste/Scheduled Tribe trainees making them employable. Furthermore. GIL has also partnered with NGOs to provide employment opportunities and counselling to people that fall in one of those categories. 11 . such as lower deck buses. As part of the employee referral policy. remote controlled access doors.Principle 4: Businesses should respect the interests of. especially those who are disadvantaged. 20 per cent of GIL‟s domestic manpower belongs to the Scheduled Caste/Scheduled Tribe and Physically Challenged categories. Industrial visits and raining of ITI students to the Valia factory also helped them understand the chemical industry. and be responsive. career advancement and development of individuals from within the affirmative category is also an area of focus. and hardship allowances have also been put in place.

Principle 5: Businesses should respect and promote human rights Godrej Industries respects and promotes human rights for all individuals. The CII has outlined ten codes under the mission for attaining ecologically sustained growth which include reduction in specific consumption of water and energy. 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. Godrej Industries was the first Indian entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO). which proposes to promote and champion conservation of natural resources in Indian industry without compromising on high and accelerated growth. No violations in this regard have occurred. protect and make efforts to restore the environment Godrej Industries is a signatory to the Confederation of Indian Industry‟s (CII)Mission of Sustainable Growth. 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. 12 . Principle 6: Businesses should respect. should do so in a responsible manner For any policy advocacy. A number of initiatives have been undertaken by Godrej Industries to reduce energy consumption. reduction in specific generation of waste and green house gas emissions and increased use of renewable energy and other recyclables. a worldwide alliance of stake holders in the palm oil industry. utilizing a higher proportion of renewable energy sources. It aims to prevent deforestation and to encourage sustainable oil palm plantations. when engaged in influencing public and regulatory policy. These include debottlenecking some processes and increasing throughput. Principle 7: Businesses. Godrej Industries participates actively at the RSPO and sources palm products from suppliers who are themselves active members of the Roundtable. becoming carbon neutral and water positive and eliminating solid waste sent to landfills. 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. increasing the use of variable frequency drives in cooling air blowers and water pumps.

90% of employment opportunities require vocational skills whereas 90% of school / college output is not relevant to these opportunities. Apprentices are actively recruited from these institutes and later converted to employees. 13 . Youth un-employability is recognized to be a bigger crisis than unemployment. maintain such employment and upgrade oneself while in a job. common sense. it continues to endeavour to provide opportunities to socially and economically underprivileged persons. As a result. On the one hand.) or subject and occupation specific knowledge at different levels. the Godrej group has committed to skill 1 million rural and urban youth by 2020. The responsibility to address this mismatch is as much of the education system as it of the industry which needs the skilled manpower. These skills alone however do not result in an increase in employability.g.which focus on skills based education in order to improve overall levels of employability. Recruitment drives for prospective employees from each of the above mentioned categories were conducted in the last year. 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. GIL has partnerships with institutes such as the Industrial Training Institutes (ITI). Employability has to do with knowledge and skills. Personal attributes and attitudes. Scheduled Tribes and other physically challenged individuals. With this idea of shared commitment and benefit of shared value. be they in terms of basic skills(e. employers are complaining of lack of skilled manpower. Through factory visits for ITI students it aims to improve the overall understanding and application of their knowledge. ranging from basic levels of reliability. including those belonging to Scheduled Castes.Principle 8: Businesses should support inclusive growth and equitable development The Godrej Group recognizes the importance and value of diversity in the workplace. attitude to work and integrity etc. literacy etc. there is higher unemployment amongst the educated and on the other. are just as important to seek employment. numeracy. 57% of India‟s youth suffers from some degree of un-employability.

Our customer focus does not only extend to external customers alone. but includes internal customers as well. Our primary focus is delighting our customers. We strive to ensure that customer needs are satisfied and that our products and services offer value to the customer. 14 . 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. 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. satisfaction and loyalty of our customers across the world.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. both external and internal. Customer centricity is part of GIL‟s „Code of Conduct‟.

The industry‟s 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. the center of gravity has been shifting towards developing economies.4% in FY 2011. enhancing investor confidence and reviving growth. this is attributable to a 2. Increase in India‟s GDP/capita has led to a strong growth in the personal and home care market.5 per cent growth in agriculture and allied activities. the government has provided the agriculture sector a boost. a growth of 3. Restoring growth through reforms and good governance will be a key imperative and will create a virtuous cycle of boosting production and consumption. by funding enablers for facilitating productivity increase.0 per cent.8 per cent in services as compared to a growth of 7. While the overall economic outlook for India continues to be strong. skin care.5 INDUSTRY STRUCTURE AND DEVELOPMENTS With several developed nations struggling to come out of the economic crisis. 6.2 per cent respectively during 2010-11. The current environment has however. Oleo chemicals are used in a variety of applications including personal care ( hair care. but the opportunity for India remains tremendous. The animal feed industry in India is evolving towards being a more organized sector with multinational feed millers also entering the market. home care (laundry detergents) and pharmaceuticals. as per the advance estimate by Central Statistical Organization (CSO). strengthening agri-distribution and storage as well as providing additional access to credit for farmers.1. benefitted from favourable monsoons in FY 2012.5% as compared to 8.8 per cent and 9. cosmetics). seen fluctuating raw material costs (i. oral care. 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. palm and vegetable oil)which impact the oleo chemicals businesses. increased volatility in commodity prices and equity markets combined with slow progress on reforms has impacted economic growth. GDP growth rate has moderated in recent quarters with FY 2012 growth projected at 6. In the past years. Global uncertainties. which is the largest employer in India. 15 . At a disaggregated level. the significant size of the global personal and home care ingredients markets also represents a potential opportunity.6 per cent in industry and 8. Additionally. The agriculture sector.e.

Godrej produced India‟s first indigenous typewriter • In 1989. After reaching a peak in prices as a result of increased construction costs and anticipated demand. GODREJ’S INNOVATIONS Some of Godrej‟s firsts: . 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.The real estate sector witnessed a tough year in FY 2012. Godrej made soap using vegetable oil. Godrej became the first company to introduce PUF ( Polyurethane Foam) • Introduced India‟s first and only 100% CFC. HCFC. while rentals for commercial projects remained stagnant. HFC free refrigerators 16 . Regulatory changes also resulted in project delays across the real estate sector. Going forward. • In 1897. residential absorption rates fell significantly across many cities. overall demand and need for housing in India continues to be strong particularly due to rapid urbanization and migration. • In 1920. • In 1902. Godrej introduced the first lock with lever technology in India. Godrej made the first Indian safe. which was a huge hit with the vegetarian community in India • In 1955.

) GCPL. 17 . 1 GCPL. • Rexona (Hindustan Lever Ltd.Introduction with Godrej Consumer Products Limited Brands of soaps manufactured at GCPL: • Godrej Lime • Godrej Fresh • Cinthol Deodorant • New Gnaga • Godrej Shikakai • Godrej No.) • Breeze (Hindustan Lever Ltd.) • Jai (Hindustan Lever Ltd. also renders its production facilities for the production of other company products. Malanpur through the alpha olefin sulphate( AOS) which is biodegradable makes soaps at GCPL a shade part from others.) • Dettol(Reclitt and Coleman(I) Ltd.

to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that transaction are authorized. external audits and periodic review by the management. facilitated a review of your company‟s risk management programme. during the year. if new capacity additionsannounced earlier go on stream.6 RESEARCH PROBLEM FOR COMPANY PROBLEM 1: Internal Control Systems and their Adequacy Your Company has a proper and adequate system of Internal Controls. The risks and mitigation measures were reviewed by your company‟s Risk Committee and corrective measures initiated. 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. all the procedures and practices that are in line with theISO Security Standards. Your company is now ISO 27001 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. At the same time.1. is entrusted with thetask of ensuring that your Company has the requisite security posture. process and internal controls. Toensure that this gets desired focus and attention.who is attached to the Corporate Audit and Assurance Department. Your Company‟s Corporate Audit and Assurance Department which is ISO 9001 certified. recorded and reported correctly. Your Company has in place. The internal control is supplemented by an extensive programme of internal. PROBLEM 2:Information Security Your Company accords great importance to the security of its information assets. a Chief Information Security Officer. 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 18 . there could be an over-supply situation in the marketwhich can put pressure on margins. During the year the Corporate Audit & Assurance Dept carried out various reviews and provided assurance on compliances to laid down policies. Corporate Audit & Assurance Dept. PROBLEM 3: Opportunities and Threats Specialty products are expected to improve margin and strengthen your company‟sposition in the oleo chemicals space.

The over supplysituation for commercial space in the Real Estate market continues to put pressure on therentals and the margins. Macro economic factors including economic and political developments. Actualresults might differ substantially or materially from those expressed or implied.demand for edible oil. PROBLEM 5: Cautionary Statement Some of the statements in this management discussion and analysis describing theCompany‟s objectives. whether local or central. detergent. 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. duties andlevies. your Companymaintains strict safety. The Chemicals business growth will alsodepend on the growth of end user industries like polymer. Legislative changes resulting in a change in the taxes. The Commodity based businesses are likely to be affected by vagaries of the weather. production safety. oilseed production. The review involved understanding the existing riskmanagement initiatives. and environmental protection. to ensure occupational safety. environmental protection and quality control programs tomonitor and control these operational risks. estimates and expectations may be „forwardlooking statements‟ within the meaning of applicable laws and regulations. import duties. also impact business performance and relativecompetitiveness of the businesses. cosmetic and personalcare. The Risk Committee hasperiodically reviewed the risks in the various businesses and recommended appropriate riskmitigating actions. better connectivity and infrastructural benefits. 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. significant changes in political and economic environment in India andabroad. health. projections.employment standards. tax laws. naturalcalamities which affect the industrial sector generally would also affect the businessesof your Company. As a significant employer and chemicals producer.supply. 19 . PROBLEM 4: Risks and Concerns Your Company has put a risk management framework in place post a comprehensive reviewof its risk management process. litigation and labour relations. The increase in bio-diesel manufacturingcapacity is expected to impact vegetable oil prices. etc.Important developments that could affect the Company‟s operations include a downtrendin industry.

Winner of the the year2001 ta Praman of the NSCI safety awards for Management 20 . Workers were not able to express their views extensively as they had limitedtime to spare. 205 of the participants had to consult their colleagues for filling up thequestionnaire.     Limited number of workers was used as sample figure to generalize the analysis. Excellence in safety promotion in M. During the interview the limitation of the worker understands the perception of interviewer.P Best Safety from NSC for safety performance.1.7 LIMITATIONS OF STUDY A major limitation is that in program pertaining attitudinal changes. Bhopal. CERTIFICATE & AWARDS       ISO-14001 for environment management system since 1999. Best Eco-Friendly industry in Gwalior from MPPCB 2nd Runner-up award in state level competition on fromCII. The response got very subjective.

THE SOURCES OF THE DATA PRIMARY DATA SECONDARY DATA The primary data and Secomdary data consists of : PRIMARYDATA: •Questionnaire •Observation and interview technique SECONDARYDATA •Information is collected through internet •From various text books •Journals and magazines •Book •Periodicals 21 .1.8 RESEARCH METHODOLOGY.

22 .   Employees‟ family visit  . Development of contract workmen through quality circle.  Health promotion scheme.2 Rural development activities GCPL perform some of the rural development activities for the people of Malanpur.   Career counseling for employees children. Hamid Ali is that we must fulfill or develop the local people because we are taking water. 2.   Focus on technical training through “vikaspath” projects. air and the support from them.  Merit award.  Before working hours training.  Basic computer training to workmen.   Assessment centre. Form theperspective of P&A executive of GCPL. This activity fulfills the corporate social responsibility towards local public.1 Human Resources initiatives in GCPL:  Revised suggestion scheme up to superintendent cadre.  Hindi literacy program for illiterate workmen.   English learning classes for quality circle members. Malanpur Mr.CHAPTER-2 INITIATIVES TAKEN BY GODREJ IN DEVELOPMENT 2.  Scholarship to SC/ST school children  E-learning.  Training need identification and preparation of competency profile of our workmen.

The rural development activities which GCPL perform are as follows:  Organised eye contract operations.  Running of Gwalior action center. chapter. Cleaning and organizing the workplace helps the team to uncover problems.  Helping in upgrading the village from primary to middle school.  Distribution of award of meritorious students.P.  Organized pollution checking of vehicles.  Running of dispensary & organize distribution of medicines.  Organized awareness training program on various health & environment related topic for villagers.  Organized speech competition & quiz for students on importance of saving of environment. Making problems visible is the first step of improvement. & environment). M.  Took initiative to improve the infrastructure beautification in Malanpur area. Problems cannot be clearly seen when the work place is unorganized. under national safety council.  Organized enter school & cultural events.  Helped industries in fire accidents.  Organized medical health check-up. 2. Pillar 1. 23 .  Organized various training program on SHE (safety.  Distribution of posters on environment friendly on diwali festival in all school.  Promoted entrepreneurship among the youth.3 TPM (Total productivity management) in GCPL:- .  Organized inter-industry safety posters & slogans competition. health.5S: TPM starts with 5S.

Pillar 3. These activities are not limited to production areas and can be implemented in administrative areas as well . By using a detailed and thorough procedure we eliminate losses in a systematic method using various Kaizen tools. thus freeing up the skilled maintenance people to spend time on more value added activity and technical repairs.Kaizen "Kai" means change. but carried out on a continual basis and involve all people in the organization. Focus is on eliminating non-conformances in a systematic manner. Basically kaizen is for small improvements. Pillar-5 Quality maintenance: It is aimed towards customer delight through highest quality through defect free manufacturing. This pillar is aimed at reducing losses in the workplace that affect our efficiencies. and then move topotential quality concerns. Kaizen is opposite to big spectacular innovations.Plant maintenance: It is aimed to have trouble free machines and equipments producing defect free products for total customer satisfaction. 24 . 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.Pillar 2 – Jishu hozen (Autonomous maintenance):This pillar is geared towards developing operators to be able to take care of small maintenance tasks. The operators are responsible for upkeep of their equipment to prevent it from deteriorating.Pillar 4. We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns. This breaks maintenance down into 4 "families" or groups which were defined earlier. much like Focused Improvement. and "Zen" means good ( for the better ). Transition is from reactive to proactive (Quality Control toQuality Assurance).

Hence it become necessary to train them on knowing "Know-why". This includes analyzing processes and procedures towards increased office automation. "KnowHow" to overcome a problem what to be done.Pillar -6 Training 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. Office TPM addresses twelve major losses.Pillar – 7 Offices TPM: Office TPM should be started after activating four other pillars of TPM (JH. The goal is to create a factory full of experts. The employees should be trained to achieve the four phases of skill. By experience they gain. QM. KK. efficiency in the administrative functions and identify and eliminate losses. 25 . Education is given to operators to upgrade their skill. Office TPM must be followed to improve productivity. and PM). . This they do without knowing the root cause of the problem and why they are doing so. It is not sufficient know only "Know-How" by they should also learn "Know-why".

* Employee welfare is a dynamic concept. * Welfare measures help to improve the goodwill and public image of the enterprise.CHAPTER -3 3. * Employee welfare measures are also known as fringe benefits and services. * It reduces labor turnover and absenteeism. Objectives behind employee welfare Employee welfare is in the interest of the employee. * The basic purpose in to improve the lot of the working class. the employer and the society as a whole. The objectives of employee welfare are: - * It helps to improve. What are the features of employee welfare: Employee welfare is a comprehensive term including various services. * It improves the loyalty and morale of the employees. * Welfare measures may be both voluntary and statutory.1 EMPLOYEES HEALTH AND SAFETY MEASURES. facilities and amenities provided to employees for their betterment. 26 .

Name of the agencies of employee welfare 1. These acts provide for canteens.C. State government prescribes rules for the welfare of the workers and ensures compliance with the provisions under various labor laws. Other agencies: . shelters etc. charitable d social service organizations like: .Employers in India in general looked upon welfare work as fruitless and barren though some of them indeed had done pioneering work. Employers: . etc. Central government: .Some philanthropic. the Ahmedabad textiles labor association and the Mazdoorsabha. But few sound and strong unions have been the pioneering in this respect.A. 2. E. trade unions have done little for the welfare of workers.g. Y.Government in different states and Union Territories provide welfare facilities to workers.* It helps to improve employee productivity. and Mines Act 1952. 5. Kanpur.Seva Sadan society. Trade unions: . safety and welfare under Factories Act 1948. crèches.M.The central government has made elaborate provisions for the health. rest rooms. 4.In India.* It helps to improve industrial relations and industrial peace. State government: . 3.. 27 .

• To make recruitment more effective (because these benefits add to job appeal). 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”. Inflation has made their lot poor and they find it difficult to maintain their standard of life. • To reduce the threat of further government intervention. 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 employer‟s own initiative.3. • To win over employee‟s loyalty and increase their morale. • To build up stable labor force. • To combat trade unionism and socialist ideas. • To save oneself from heavy taxes on surplus profits. • To earn goodwill and enhance public image. 28 . • To develop efficiency and productivity among workers. to reduce labor turnover and absenteeism. • To give expression to philanthropic and paternalistic feelings.2 INTRODUCTION WITH THE CONCEPT OF “EMPLOYEES WELFARE” Rapid industrialization and urbanization have made employees dependent on capitalists.

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). it‟s meaning and components can be differ in different countries & different places. The features of welfare may also be varying depending on the nation in all fields. Worker has a fund of knowledge and experience to 29 . not only effects on the farreaching workforce but it also effects on various aspects of human resources. a person may act in its best. Within economic aspects of welfare. The theories of Labor welfare activities firmly believe in that. As welfare progressive and dynamic and keep pace with the changing times as a result. Therefore. and to additional means. meanings. Various welfare facilities are provided by the organization keep not only employees motivated and committed even their family members also. his family and his community. These three aspects inter-relate. happiness. is involved promotion of economic growth by increasing production and productivity. With complete satisfaction and be committed on any cause. The concept of welfare is also concerned with time and space. and work together. Term "welfare" expresses many ideas.Philosophy and Perceptive of Labor Welfare Activities In an industrial society labor welfare activities. including in labor welfare. The welfare of both social and economic aspects is also included. The social concept of welfare implies the welfare of a man. The changes have similar effects on the welfare system. the material of welfare remains potentially volatile. behind any machine. the man is only responsible for achieving the organizations mission. All such activities which are not only secure existential necessities but also ensures improved spiritual and emotional quotient. such as well status. The short and long term vision to build a humane society is centered in labor welfare activities. health. prosperity and development of human resource etc.

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. From this perspective. trade associations or unions. should labor welfare activities be regulated by law or social organization? • If voluntary. 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. their cooperation will be wholehearted. work to maximum efficiency and attitude will be fair and friendly towards them. they are gradually increasing information about the potential of labor welfare activities and even putting vision on labor welfare activities in future prospects. The concerning law prescribes the minimum standard. The main stakeholders are the investor of enterprises. that would associated with healthcare of workers and it would ensure their minimum health hazardous. and government etc.perform his job. In return. Therefore. It is part of the facilities provided by the employer. If his ability and skill to be properly utilized with the right direction. some basic questions as follows: • Should Labor welfare activities be compulsory for enterprises? • If mandatory. And it can be achieve by work satisfaction of the worker. but a progressive employer to expand its activities must protect the health of workers and their dependents.level? 30 . the worker can be a working good contributor in the prosperity of the organization. . employees. how to secure the interests of the employees at the enterprise. His staffs to be healthy are a basic need of an organization.

Vocational guidance etc. 7.3. 4. Canteen. 2. 3. Leave travel facilities.3 Types of welfare services * Intramural: . Education. 3. Child welfare. 6. Interest free loans. Rest rooms. 5. 2. Crèches. like: - 1. Uniform etc. * Extramural: . Workers cooperative stores. Housing. 31 .These are provided outside the organization. 4.These are provided within the organization like: 1.

and it is a key performance area for all employees of Godrej Interio. GI has made health and well-being an essential deliverable for all products and services. Posters. etc. Manager (Safety) is looking after functions related to safety. This pillar will play an active role in each of the other pillars on a regular basis. Hence. Majority of these problems are 32 . Environment: Target: 1. this element of urban living has become a significant contributor to health and well-being in the current scenario. 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). GI also uses its expertise in these areas to create a healthy and positive work environment for its own employees. To create awareness among employees various competitions like safety slogans. Safety. Research conducted by Godrej Interio Ergonomic Cell has shown that today close to 71% of employees complain about discomfort at work. Quiz. 2.4 EMPLOYEES HEALTH AND SAFETY BY GODREJ. related to safety can be organized at regular intervals. safe. Zero fires. Drama. Utmost importance to Safety is given in the plant. and healthy work environments for consumers. Given the amount of contact time consumers spend with their furniture at offices and homes. Health. In this area focus is on to create a safe workplace and a surrounding area that is not damaged by our process or procedures. “Employees spend more than 70% of their non-sleep time in offices. GI facilitates health and well-being through ergonomic design of products and careful use of raw materials which aid in creating comfortable. & are un-knowingly spending almost all the time in badly designed / utilized offices spaces which are in-turn very dangerous to health. Zero accident.3. Zero health damage 3.

The team has designed a product selection tool.Wellness Camps & Ergo Audits Last year. The three main initiatives of this program are listed below: i. to optimal use of office gadgets and accessories. 33 . The program's mission is to develop a culture of wellness at the workplace.000 people weekly. With strategic linkages in the coming years. to office exercises. GI conducted Wellness Camps for 72 organizations and Ergo Audits for 9 different organizations. value-added service of Wellness Camps & Ergo Audits. wherein the team of Ergonomists create awareness about Musculoskeletal Disorders amongst employees. and organizations they make contact with. ii. GI hopes to bring Wellness to the forefront for all the individuals. workgroups. GI plans to reach out to more than 100. The Human Resources and EHS departments of various customer organizations found excellent value in this initiative. from good posture.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. 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.Wellness Tips With this initiative. GI‟s 'Wellness Tips' cover a vast range of topics. These tips are being emailed to more than 20.000 people every week for the past 2 years. GI launched the unique. due to non-application of basic Office Ergonomics principles.due to un-ergonomic office furniture design and more importantly. in the near future.” GI strongly believes that the best way to stay healthy is to know your health risks and work towards preventing them. which helps the customer choose the chair that is most suitable to their body dimensions and the task being performed. and consumer-focussed communication on the right way to use products. assess the current Ergonomic level of office spaces and suggest corrections in terms of workspace layout. the Ergometer. In fiscal year 2011-12. These tools are currently used at all GI knowledge centers and at 37 company showrooms. iii.

safety trainings. but also because it promotes good business practices and pays high dividends. refer HS-02). incentives are offered to report near miss incidences. In that respect. not only because they believe workplace health and safety is essential to respect human life. GI believes that all accidents are preventable.3. In line with this philosophy. recorded 3 reportable and 25 non-reportable accidents (for 3 year trend. safety kaizens. as all hazards can be safeguarded either physically or through safe working procedures. working safely is a condition of employment at all its facilities.Occupational Health & Safety Trends at a Glance 34 . and OHSAS reportable frequency rate was 0. it shall be done safely. Occupational Health & Safety Godrej Interio Health and Safety PolicyWhatever Godrej Interio (GI) does. and aims to go beyond this compliance with certification to OHSAS 18001 guidelines. whose responsibility it is to ensure that injuries are prevented. 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. GI operates in this manner. and winners shall be suitably recognized. safety performance for the last few years is enumerated below. GI will hold different competitions to create awareness and engage employees on OHS related aspects at the divisional and corporate level. In 2011-2012. On the path to the organizational mission of ZERO ACCIDENTS. To sensitize and promote safety issues amongst employees. focused on key indicators like hazard identification. employees will assume defined responsibilities and accountability. etc. there were no fatalities. GI is committed to maintaining compliance with local and national Occupational Health and Safety (OHS) laws that govern performance.79 (refer HS03). 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. In efforts to build and support a culture that fosters and nurtures a safety mindset in the organization. Therefore. near miss reporting. To incentivize this.

3. wherever more than 500 workers are employed. 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 35 .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 . * Welfare officer. * First aid boxes are provided. if more than 250 workers are employed.* Canteens.

 To find out the suggestions. 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. 36 .OBJECTIVES OF THE STUDY      How many people actually know about the welfare measures? To know the effectiveness of welfare measures.

37 . or services Price wars changes (government. products.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 politics. etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories. taxes.

executives groups. The feelings of satisfaction can be made better by making more employees friendly especially for non-executives population.   Quality of food must be improved to satisfy the employees. Management must understand employees problem and try to solve and not just discourage them.  It is must and necessary there should be proper coordination and understanding among executives and non. Proper training should be provided to all employees to avoid any unwanted accidents.  It is also necessary that the non-executives groups must be motivated time to time by providing them some incentives. is always committed towards their employees and their families but than also I would like to give some suggestions. 38 .  Educational assistance is not up to the mark there is need to improvement. Employees must be motivated and encouraged. benefits or doing some extra works for them. RECOMMENDATIONS     The company should review and make some more proper arrangement for employees.CHAPTER-5 SUGGESTIONS Although 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. Where as I have under gone to summer training I have found that GCPL.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. .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. 39 .

rules and regulations of GCPL.FINDINGS The findings show that the employees are quite satisfied with the policies. 40 . 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. The compensation and the welfare dimension of GCPL are at a higher acceptability position among the employees.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.