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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
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.
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
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
The division has a modern factory in the Indian state of Gujarat. The plant has an installed capacity of 30. The company operates a second plant at Vikhroli in suburbanMumbai.Overview Godrej Industries Limited is. company have developed a long-term vision for playing an active part in creating a more inclusive and greener India. both renewable. a greener India and innovate for good and green products. The chemicals division has built a strong manufacturing base capable of delivering international quality products at competitive prices. Godrej Good & Green In conjunction with companies vision for "brighter living" for all stakeholders. the Group aspires by 2020. fatty alcohols. As part of Good & Green. and has implemented integrated systems which ensure quick delivery of products at competitive costs. through its chemicals division. 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. companies goals at the Group level for 2020 as part of this vision are: 5 . glycerine.000 tonnes per annum for making natural fatty alcohols from feedstock such as palm stearine and palm kerneloil. Specifically.Products from this division are exported to developed and developing countries. India's leading manufacturer of oleo chemicals and makes more than a hundred chemicals for use in over two dozen industries. and it received export awards from Chemexcil in 1998-99. where vegetable oils are converted into fatty acids. Good & Green is founded on shared value initiatives. to create a more employable Indian workforce.1999-00 and 2000-01. This vision has been named "Godrej Good & Green". alpha olefins and alpha olefin sulphonates. vegetable-based raw materials. The chemical division's export turnover in 2001-02 was more than Rs 100crore.
Their objectives are: 1. 3. They shall strive for excellence by nurturing. The company will achieve these objectives through excellence in areas of: Customer satisfaction Quality Cost reduction 5. Godrej Industries Limited is in the business of oleo chemicals and surfactants. 2. 6. They will operate in existing and new business which profitability capitalizes on Godrej brand and our corporate image of reliability and integrity. development and empowering our employees. To constantly improve our economic value addition. 4. To keep increasing their exports. Their objective is to delight our customer‟s both in India and Abroad. 7. They shall achieve this objective through continues improvement in quality.1. Cost and customer service 8.2 OBJECTIVES OF COMPANY. To maintain leadership in their business in India. 6 .
VISION AND VALUES OF GODREJ.g. MISSION Our Mission is to operate in existing and new businesses..” 7 .3 MISSION. 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 achieve this objective through continuous improvement in quality. carbon neutrality. cost and customer service. Our objective is to delight our customer both in India and abroad.1. 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. sanitation. Training 1 million rural and urban youth in skilled employment Achieving zero waste. We shall strive for excellence by nurturing. health. which capitalize on the Godrej brand and our corporate image of reliability and integrity. conducive to learning and team work. They will achieve this through enduring trust & relentless innovation delivered with passion & entrepreneurial spirit. developing and empowering our employees and suppliers. We shall encourage an open atmosphere.
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 8 .
Godrej Industries was the first Indian entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO). Examples of a few of these codes are listed below.4 PRINCIPLES OF GODREJ COMPANY Principle 1: Businesses should conduct and govern themselves with Ethics. Additionally. 9 . fatty alcohols and surfactants. employees. Ensuring diversity. renewable. transparency in disclosures. biodegradable vegetable oils are used as the raw material for the manufacture of fatty acids. equipment and systems of work for all employees.1. Its aim is to prevented forestation and to encourage sustainable oil palm plantations. glycerin. emit fewer greenhouse gases and include a hundred percent of recyclable. risk management systems. Godrej Industries participates actively at the RSPO and sources palm products from suppliers who are themselves active members of the Roundtable. zero discrimination. strong internal controls. As part of the vision. a worldwide alliance of stake holders in the palm oil industry. suppliers. and by engaging and operating with fairness and integrity with all its stakeholders namely shareholders. Transparency and Accountability GIL pursues good Corporate Governance by ensuring regulatory compliance. 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. and/ or natural materials. 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. efficient operational practices. 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. customers. GIL aspires to develop products which consume fewer resources (energy. regulatory authorities and general public. water).
age. We will not discriminate against any team member or applicant for employment on the basis of nationality. work from home arrangements. exploitation or intimidation. caste. religion. Diversity and equal opportunities: We value diversity within the Godrej Group and are committed to offering equal opportunities in employment. correct and if necessary. Prevention of sexual harassment: The Company is committed to creating and maintaining an atmosphere in which our team members can work together. part-time work. sexual orientation."Diversity and Anti-discrimination: We recognize merit and perseverance and encourage diversity in our company. leave and benefits. caste. nationality. gender. 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‟. gender. disability. We will take all necessary action(s) required to prevent. race. 10 ." 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. Godrej Industries also subscribes to the CII-ASSOCHAM Code of Conduct for Affirmative Action. maternity leave and benefits. raised the awareness of environmental issues among the employees and also equipped them with ways to make sustainable choices in their lives. marital status. discipline behaviour which violates this policy. adoption leave and benefits. We do not tolerate any form of discrimination on the basis of colour. without fear of sexual harassment.or marital status. The Good & Green office also conducted a „Children‟s Day‟ event in November 2011 for the children of employees. paternity leave and benefits – to name a few – go a long way in ensuring that the employees successfully strike a work-life balance. Various other Human Resource policies – flexible working hours. colour. sexual orientation or disability and will allow for equal opportunities for all team members. gender identity/expression. Constant communication during and after the event. 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. age. race. The participating children learnt how to make their homes and classrooms „good & green‟.
remote controlled access doors. it offered job specific training to 14Scheduled Caste/Scheduled Tribe trainees making them employable. Measures to support physically challenged employees. 20 per cent of GIL‟s domestic manpower belongs to the Scheduled Caste/Scheduled Tribe and Physically Challenged categories. GIL has also partnered with NGOs to provide employment opportunities and counselling to people that fall in one of those categories. As part of the employee referral policy. and be responsive. In its effort to support education for all. Furthermore. 11 . 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. especially those who are disadvantaged. career advancement and development of individuals from within the affirmative category is also an area of focus.Principle 4: Businesses should respect the interests of. GIL also provides apprentice opportunities to students who have completed some form of technical education. 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 distributed scholarships and uniforms to scheduled caste and scheduled tribe primary school children in a number of underdeveloped communities. and hardship allowances have also been put in place. Industrial visits and raining of ITI students to the Valia factory also helped them understand the chemical industry. The Vikhroli factory also supported 15 Scheduled Caste/ Scheduled Tribe students with scholarships in the neighbouring community. In the past fiscal year. The Valia factory supports 35 Scheduled Caste/Scheduled Tribe children in the Kanerao village with annual scholarships and other educational material. such as lower deck buses. referrals of Scheduled Class/Scheduled Tribe/Physically Challenged candidates are offered higher referral amounts than that offered to the general category candidates. towards all stakeholders.
Our business is striving towards reducing specific energy consumption. 12 . Principle 7: Businesses. when engaged in influencing public and regulatory policy. increasing the use of variable frequency drives in cooling air blowers and water pumps. Godrej Industries participates actively at the RSPO and sources palm products from suppliers who are themselves active members of the Roundtable. 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. 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. which proposes to promote and champion conservation of natural resources in Indian industry without compromising on high and accelerated growth. As part of the Good & Green vision there is a specific commitment to create a "Greener India".Principle 5: Businesses should respect and promote human rights Godrej Industries respects and promotes human rights for all individuals. 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. Principle 6: Businesses should respect. These include debottlenecking some processes and increasing throughput. Godrej Industries was the first Indian entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO). reduction in specific generation of waste and green house gas emissions and increased use of renewable energy and other recyclables. utilizing a higher proportion of renewable energy sources. should do so in a responsible manner For any policy advocacy. The CII has outlined ten codes under the mission for attaining ecologically sustained growth which include reduction in specific consumption of water and energy. No violations in this regard have occurred. a worldwide alliance of stake holders in the palm oil industry. 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. It aims to prevent deforestation and to encourage sustainable oil palm plantations. Godrej Industries has put initiatives in place at its factories in order to meet the codes.
are just as important to seek employment.Principle 8: Businesses should support inclusive growth and equitable development The Godrej Group recognizes the importance and value of diversity in the workplace.) or subject and occupation specific knowledge at different levels. maintain such employment and upgrade oneself while in a job. On the one hand. attitude to work and integrity etc. These skills alone however do not result in an increase in employability. With this idea of shared commitment and benefit of shared value. literacy etc. Apprentices are actively recruited from these institutes and later converted to employees. As a result.g. ranging from basic levels of reliability. Through factory visits for ITI students it aims to improve the overall understanding and application of their knowledge. Personal attributes and attitudes. 13 . there is higher unemployment amongst the educated and on the other. the Godrej group has committed to skill 1 million rural and urban youth by 2020. common sense. Youth un-employability is recognized to be a bigger crisis than unemployment. 57% of India‟s youth suffers from some degree of un-employability. it continues to endeavour to provide opportunities to socially and economically underprivileged persons. be they in terms of basic skills(e. 90% of employment opportunities require vocational skills whereas 90% of school / college output is not relevant to these opportunities. Recruitment drives for prospective employees from each of the above mentioned categories were conducted in the last year. numeracy. 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. Employability has to do with knowledge and skills. GIL has partnerships with institutes such as the Industrial Training Institutes (ITI). The responsibility to address this mismatch is as much of the education system as it of the industry which needs the skilled manpower. including those belonging to Scheduled Castes. employers are complaining of lack of skilled manpower. Scheduled Tribes and other physically challenged individuals.which focus on skills based education in order to improve overall levels of employability.
satisfaction and loyalty of our customers across the world. Our primary focus is delighting our customers.At the Godrej Group. 14 . both external and internal. Our customer focus does not only extend to external customers alone. 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. Customer centricity is part of GIL‟s „Code of Conduct‟. 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. but includes internal customers as well. 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 strive to ensure that customer needs are satisfied and that our products and services offer value to the customer.
the government has provided the agriculture sector a boost. a growth of 3.e.2 per cent respectively during 2010-11. The current environment has however. the center of gravity has been shifting towards developing economies. The agriculture sector. cosmetics). strengthening agri-distribution and storage as well as providing additional access to credit for farmers. home care (laundry detergents) and pharmaceuticals. GDP growth rate has moderated in recent quarters with FY 2012 growth projected at 6.1. Increase in India‟s GDP/capita has led to a strong growth in the personal and home care market.5% as compared to 8. seen fluctuating raw material costs (i.5 per cent growth in agriculture and allied activities. 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. 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. which is the largest employer in India. Additionally. 6. this is attributable to a 2. Restoring growth through reforms and good governance will be a key imperative and will create a virtuous cycle of boosting production and consumption. the significant size of the global personal and home care ingredients markets also represents a potential opportunity.0 per cent.8 per cent and 9. as per the advance estimate by Central Statistical Organization (CSO). 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.4% in FY 2011. In the past years. 15 . The animal feed industry in India is evolving towards being a more organized sector with multinational feed millers also entering the market. Oleo chemicals are used in a variety of applications including personal care ( hair care.5 INDUSTRY STRUCTURE AND DEVELOPMENTS With several developed nations struggling to come out of the economic crisis.6 per cent in industry and 8. palm and vegetable oil)which impact the oleo chemicals businesses.8 per cent in services as compared to a growth of 7. oral care. Global uncertainties. by funding enablers for facilitating productivity increase. skin care. At a disaggregated level. enhancing investor confidence and reviving growth. While the overall economic outlook for India continues to be strong.
Going forward. • In 1897. • In 1920. overall demand and need for housing in India continues to be strong particularly due to rapid urbanization and migration. residential absorption rates fell significantly across many cities. Godrej became the first company to introduce PUF ( Polyurethane Foam) • Introduced India‟s first and only 100% CFC. Godrej made soap using vegetable oil. Godrej made the first Indian safe. Godrej introduced the first lock with lever technology in India. • In 1902. 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. while rentals for commercial projects remained stagnant. HFC free refrigerators 16 . which was a huge hit with the vegetarian community in India • In 1955. GODREJ’S INNOVATIONS Some of Godrej‟s firsts: .The real estate sector witnessed a tough year in FY 2012. HCFC. 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. Regulatory changes also resulted in project delays across the real estate sector.
Introduction with Godrej Consumer Products Limited Brands of soaps manufactured at GCPL: • Godrej Lime • Godrej Fresh • Cinthol Deodorant • New Gnaga • Godrej Shikakai • Godrej No.) GCPL.) • Jai (Hindustan Lever Ltd.) • Dettol(Reclitt and Coleman(I) Ltd. • Rexona (Hindustan Lever Ltd. also renders its production facilities for the production of other company products.) • Breeze (Hindustan Lever Ltd. Malanpur through the alpha olefin sulphate( AOS) which is biodegradable makes soaps at GCPL a shade part from others. 1 GCPL. 17 .
Your Company‟s Corporate Audit and Assurance Department which is ISO 9001 certified. recorded and reported correctly.who is attached to the Corporate Audit and Assurance Department. external audits and periodic review by the management. PROBLEM 3: Opportunities and Threats Specialty products are expected to improve margin and strengthen your company‟sposition in the oleo chemicals space. to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal and that transaction are authorized. The internal control is supplemented by an extensive programme of internal. process and internal controls. Your company is now ISO 27001 certified.6 RESEARCH PROBLEM FOR COMPANY PROBLEM 1: Internal Control Systems and their Adequacy Your Company has a proper and adequate system of Internal Controls. all the procedures and practices that are in line with theISO Security Standards. 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. The risks and mitigation measures were reviewed by your company‟s Risk Committee and corrective measures initiated. 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 . During the year the Corporate Audit & Assurance Dept carried out various reviews and provided assurance on compliances to laid down policies. facilitated a review of your company‟s risk management programme. is entrusted with thetask of ensuring that your Company has the requisite security posture. if new capacity additionsannounced earlier go on stream.1. during the year. Corporate Audit & Assurance Dept. a Chief Information Security Officer. 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. Toensure that this gets desired focus and attention. PROBLEM 2:Information Security Your Company accords great importance to the security of its information assets. Your Company has in place. there could be an over-supply situation in the marketwhich can put pressure on margins.
The Risk Committee hasperiodically reviewed the risks in the various businesses and recommended appropriate riskmitigating actions. also impact business performance and relativecompetitiveness of the businesses. your Companymaintains strict safety. litigation and labour relations. import duties. 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. cosmetic and personalcare.employment standards.demand for edible oil. The Commodity based businesses are likely to be affected by vagaries of the weather. environmental protection and quality control programs tomonitor and control these operational risks. Macro economic factors including economic and political developments. tax laws. As a significant employer and chemicals producer. The increase in bio-diesel manufacturingcapacity is expected to impact vegetable oil prices.Important developments that could affect the Company‟s operations include a downtrendin industry. PROBLEM 4: Risks and Concerns Your Company has put a risk management framework in place post a comprehensive reviewof its risk management process. PROBLEM 5: Cautionary Statement Some of the statements in this management discussion and analysis describing theCompany‟s objectives. production safety. significant changes in political and economic environment in India andabroad. whether local or central. 19 . detergent. The review involved understanding the existing riskmanagement initiatives. Actualresults might differ substantially or materially from those expressed or implied. The over supplysituation for commercial space in the Real Estate market continues to put pressure on therentals and the margins. Legislative changes resulting in a change in the taxes. to ensure occupational safety. estimates and expectations may be „forwardlooking statements‟ within the meaning of applicable laws and regulations.supply. better connectivity and infrastructural benefits. The Chemicals business growth will alsodepend on the growth of end user industries like polymer. 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. naturalcalamities which affect the industrial sector generally would also affect the businessesof your Company. projections. health. oilseed production. etc. duties andlevies. and environmental protection.
P Best Safety from NSC for safety performance. Bhopal. Excellence in safety promotion in M. 205 of the participants had to consult their colleagues for filling up thequestionnaire.7 LIMITATIONS OF STUDY A major limitation is that in program pertaining attitudinal changes. Winner of the the year2001 ta Praman of the NSCI safety awards for Management 20 . During the interview the limitation of the worker understands the perception of interviewer. CERTIFICATE & AWARDS ISO-14001 for environment management system since 1999. Workers were not able to express their views extensively as they had limitedtime to spare. The response got very subjective.1. Best Eco-Friendly industry in Gwalior from MPPCB 2nd Runner-up award in state level competition on fromCII. Limited number of workers was used as sample figure to generalize the analysis.
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.
Career counseling for employees children. Employees‟ family visit .CHAPTER-2 INITIATIVES TAKEN BY GODREJ IN DEVELOPMENT 2. Scholarship to SC/ST school children E-learning. Merit award. 22 . Health promotion scheme. Malanpur Mr. Assessment centre. 2. Development of contract workmen through quality circle. Basic computer training to workmen. English learning classes for quality circle members. Before working hours training. Focus on technical training through “vikaspath” projects. Training need identification and preparation of competency profile of our workmen.1 Human Resources initiatives in GCPL: Revised suggestion scheme up to superintendent cadre. This activity fulfills the corporate social responsibility towards local public.2 Rural development activities GCPL perform some of the rural development activities for the people of Malanpur. Hindi literacy program for illiterate workmen. Form theperspective of P&A executive of GCPL. air and the support from them. Hamid Ali is that we must fulfill or develop the local people because we are taking water.
Problems cannot be clearly seen when the work place is unorganized. M. 23 .P. Running of Gwalior action center. Organized speech competition & quiz for students on importance of saving of environment. & environment). Promoted entrepreneurship among the youth. Running of dispensary & organize distribution of medicines. Cleaning and organizing the workplace helps the team to uncover problems. Distribution of posters on environment friendly on diwali festival in all school. Took initiative to improve the infrastructure beautification in Malanpur area. Organized pollution checking of vehicles.3 TPM (Total productivity management) in GCPL:- . chapter. Organized awareness training program on various health & environment related topic for villagers. Pillar 1. Helping in upgrading the village from primary to middle school. Organized enter school & cultural events. 2.The rural development activities which GCPL perform are as follows: Organised eye contract operations. health. Making problems visible is the first step of improvement. Organized inter-industry safety posters & slogans competition. Organized various training program on SHE (safety.5S: TPM starts with 5S. Organized medical health check-up. Distribution of award of meritorious students. Helped industries in fire accidents. under national safety council.
Transition is from reactive to proactive (Quality Control toQuality Assurance).Plant maintenance: It is aimed to have trouble free machines and equipments producing defect free products for total customer satisfaction. By using a detailed and thorough procedure we eliminate losses in a systematic method using various Kaizen tools. This breaks maintenance down into 4 "families" or groups which were defined earlier. but carried out on a continual basis and involve all people in the organization. We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns. Pillar-5 Quality maintenance: It is aimed towards customer delight through highest quality through defect free manufacturing. and "Zen" means good ( for the better ). and then move topotential quality concerns. Kaizen requires no or little investment. Focus is on eliminating non-conformances in a systematic manner.Kaizen "Kai" means change. much like Focused Improvement. These activities are not limited to production areas and can be implemented in administrative areas as well .Pillar 2 – Jishu hozen (Autonomous maintenance):This pillar is geared towards developing operators to be able to take care of small maintenance tasks. Basically kaizen is for small improvements.Pillar 4. Kaizen is opposite to big spectacular innovations. Pillar 3. thus freeing up the skilled maintenance people to spend time on more value added activity and technical repairs. 24 . The operators are responsible for upkeep of their equipment to prevent it from deteriorating. This pillar is aimed at reducing losses in the workplace that affect our efficiencies. 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.
KK. Office TPM addresses twelve major losses.Pillar – 7 Offices TPM: Office TPM should be started after activating four other pillars of TPM (JH. Education is given to operators to upgrade their skill. By experience they gain. and PM). . QM. Hence it become necessary to train them on knowing "Know-why". efficiency in the administrative functions and identify and eliminate losses. 25 . Office TPM must be followed to improve productivity. The employees should be trained to achieve the four phases of skill. "KnowHow" to overcome a problem what to be done. The goal is to create a factory full of experts. This includes analyzing processes and procedures towards increased office automation.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. It is not sufficient know only "Know-How" by they should also learn "Know-why". This they do without knowing the root cause of the problem and why they are doing so.
* Welfare measures help to improve the goodwill and public image of the enterprise. * The basic purpose in to improve the lot of the working class.1 EMPLOYEES HEALTH AND SAFETY MEASURES. Objectives behind employee welfare Employee welfare is in the interest of the employee. The objectives of employee welfare are: - * It helps to improve. * Employee welfare measures are also known as fringe benefits and services.CHAPTER -3 3. * Employee welfare is a dynamic concept. * Welfare measures may be both voluntary and statutory. * It reduces labor turnover and absenteeism. 26 . 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. * It improves the loyalty and morale of the employees. the employer and the society as a whole.
safety and welfare under Factories Act 1948.* It helps to improve employee productivity.The central government has made elaborate provisions for the health. Name of the agencies of employee welfare 1. Kanpur. 5. the Ahmedabad textiles labor association and the Mazdoorsabha. Central government: .g. 27 . 3. 4.A.Government in different states and Union Territories provide welfare facilities to workers. 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..* It helps to improve industrial relations and industrial peace. Other agencies: . State government prescribes rules for the welfare of the workers and ensures compliance with the provisions under various labor laws. These acts provide for canteens. Employers: .Some philanthropic. But few sound and strong unions have been the pioneering in this respect. crèches. E.M. and Mines Act 1952. trade unions have done little for the welfare of workers. 2. Y. shelters etc. Trade unions: . etc.C. State government: . rest rooms.In India.Seva Sadan society.
In such situation employee welfare facilities enable workers to live a richer and more satisfactory. • To give expression to philanthropic and paternalistic feelings. 28 . Inflation has made their lot poor and they find it difficult to maintain their standard of life. • To build up stable labor force. • To win over employee‟s loyalty and increase their morale. • To earn goodwill and enhance public image. • To make recruitment more effective (because these benefits add to job appeal). 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. • To save oneself from heavy taxes on surplus profits. • To develop efficiency and productivity among workers. • To reduce the threat of further government intervention. to reduce labor turnover and absenteeism.3.2 INTRODUCTION WITH THE CONCEPT OF “EMPLOYEES WELFARE” Rapid industrialization and urbanization have made employees dependent on capitalists. Employee welfare defines as “efforts to make life worth living for workmen”. • To combat trade unionism and socialist ideas.
happiness. The short and long term vision to build a humane society is centered in labor welfare activities. prosperity and development of human resource etc. Therefore. not only effects on the farreaching workforce but it also effects on various aspects of human resources. The features of welfare may also be varying depending on the nation in all fields. the material of welfare remains potentially volatile. With complete satisfaction and be committed on any cause. his family and his community. The concept of welfare is also concerned with time and space. the man is only responsible for achieving the organizations mission. including in labor welfare. 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). meanings. The social concept of welfare implies the welfare of a man. All such activities which are not only secure existential necessities but also ensures improved spiritual and emotional quotient. a person may act in its best. it‟s meaning and components can be differ in different countries & different places. Various welfare facilities are provided by the organization keep not only employees motivated and committed even their family members also. The changes have similar effects on the welfare system. health. is involved promotion of economic growth by increasing production and productivity. Within economic aspects of welfare. and work together. such as well status. and to additional means. behind any machine. As welfare progressive and dynamic and keep pace with the changing times as a result. Worker has a fund of knowledge and experience to 29 . The theories of Labor welfare activities firmly believe in that.Philosophy and Perceptive of Labor Welfare Activities In an industrial society labor welfare activities. These three aspects inter-relate. Term "welfare" expresses many ideas. The welfare of both social and economic aspects is also included.
perform his job. they are gradually increasing information about the potential of labor welfare activities and even putting vision on labor welfare activities in future prospects. In return. 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. From this perspective. and government etc. . trade associations or unions. but a progressive employer to expand its activities must protect the health of workers and their dependents. His staffs to be healthy are a basic need of an organization. work to maximum efficiency and attitude will be fair and friendly towards them. the worker can be a working good contributor in the prosperity of the organization. It is part of the facilities provided by the employer. Therefore.level? 30 . that would associated with healthcare of workers and it would ensure their minimum health hazardous. employees. If his ability and skill to be properly utilized with the right direction. 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. their cooperation will be wholehearted. The concerning law prescribes the minimum standard. And it can be achieve by work satisfaction of the worker. should labor welfare activities be regulated by law or social organization? • If voluntary. some basic questions as follows: • Should Labor welfare activities be compulsory for enterprises? • If mandatory. The main stakeholders are the investor of enterprises. how to secure the interests of the employees at the enterprise.
Uniform etc. 3. Crèches. like: - 1. 31 .3. 3. Housing. 5.These are provided within the organization like: 1. 2. 4. Leave travel facilities. Child welfare. Vocational guidance etc. Rest rooms. 7.These are provided outside the organization. 6. Education. Interest free loans. Canteen. 2.3 Types of welfare services * Intramural: . * Extramural: . Workers cooperative stores. 4.
Zero accident. Quiz. Research conducted by Godrej Interio Ergonomic Cell has shown that today close to 71% of employees complain about discomfort at work. related to safety can be organized at regular intervals.4 EMPLOYEES HEALTH AND SAFETY BY GODREJ. Majority of these problems are 32 . GI has made health and well-being an essential deliverable for all products and services. Safety. & are un-knowingly spending almost all the time in badly designed / utilized offices spaces which are in-turn very dangerous to health. Given the amount of contact time consumers spend with their furniture at offices and homes. GI facilitates health and well-being through ergonomic design of products and careful use of raw materials which aid in creating comfortable. Zero fires. To create awareness among employees various competitions like safety slogans. Posters. Environment: Target: 1. This pillar will play an active role in each of the other pillars on a regular basis. Hence. 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. In this area focus is on to create a safe workplace and a surrounding area that is not damaged by our process or procedures. and healthy work environments for consumers. Utmost importance to Safety is given in the plant. 2.3. and it is a key performance area for all employees of Godrej Interio. Manager (Safety) is looking after functions related to safety. etc. Zero health damage 3. GI also uses its expertise in these areas to create a healthy and positive work environment for its own employees. Health. Drama. “Employees spend more than 70% of their non-sleep time in offices. The committee is headed by senior vice President (Technical). safe.
The three main initiatives of this program are listed below: i. which helps the customer choose the chair that is most suitable to their body dimensions and the task being performed.000 people every week for the past 2 years. GI‟s 'Wellness Tips' cover a vast range of topics.Wellness Camps & Ergo Audits Last year. due to non-application of basic Office Ergonomics principles. 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. to optimal use of office gadgets and accessories. assess the current Ergonomic level of office spaces and suggest corrections in terms of workspace layout. value-added service of Wellness Camps & Ergo Audits. The Human Resources and EHS departments of various customer organizations found excellent value in this initiative. ii. the Ergometer.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. With strategic linkages in the coming years. The program's mission is to develop a culture of wellness at the workplace. 33 . to office exercises.due to un-ergonomic office furniture design and more importantly. In fiscal year 2011-12. The team has designed a product selection tool. GI hopes to bring Wellness to the forefront for all the individuals. These tips are being emailed to more than 20. iii. in the near future. wherein the team of Ergonomists create awareness about Musculoskeletal Disorders amongst employees.” GI strongly believes that the best way to stay healthy is to know your health risks and work towards preventing them.Wellness Tips With this initiative. from good posture. workgroups. GI launched the unique. These tools are currently used at all GI knowledge centers and at 37 company showrooms. and organizations they make contact with. GI conducted Wellness Camps for 72 organizations and Ergo Audits for 9 different organizations.000 people weekly. and consumer-focussed communication on the right way to use products. GI plans to reach out to more than 100.
working safely is a condition of employment at all its facilities. safety kaizens. Therefore. whose responsibility it is to ensure that injuries are prevented. safety performance for the last few years is enumerated below. and aims to go beyond this compliance with certification to OHSAS 18001 guidelines. etc. and OHSAS reportable frequency rate was 0. In line with this philosophy. recorded 3 reportable and 25 non-reportable accidents (for 3 year trend.79 (refer HS03). GI is committed to maintaining compliance with local and national Occupational Health and Safety (OHS) laws that govern performance. 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. focused on key indicators like hazard identification. 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. On the path to the organizational mission of ZERO ACCIDENTS. safety trainings. employees will assume defined responsibilities and accountability. To sensitize and promote safety issues amongst employees. 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. it shall be done safely. not only because they believe workplace health and safety is essential to respect human life. To incentivize this. In 2011-2012. there were no fatalities.3.Occupational Health & Safety Trends at a Glance 34 . Occupational Health & Safety Godrej Interio Health and Safety PolicyWhatever Godrej Interio (GI) does. GI believes that all accidents are preventable. In that respect. GI operates in this manner. near miss reporting. refer HS-02). incentives are offered to report near miss incidences. In efforts to build and support a culture that fosters and nurtures a safety mindset in the organization. but also because it promotes good business practices and pays high dividends. as all hazards can be safeguarded either physically or through safe working procedures.
* Welfare officer. 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 . suitable and clean washing facilities separately for men and women workers. wherever more than 500 workers are employed.3.5 Provisions which Factories Act 1948 provides for welfare * Adequate. * First aid boxes are provided. if more than 250 workers are employed. * Facilities for storing and drying clothes .* Canteens.
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. To find out the suggestions.
or services Price wars changes (government. etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories.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. products. 37 . taxes.
CHAPTER-5 SUGGESTIONS Although GCPL. Management must understand employees problem and try to solve and not just discourage them. Educational assistance is not up to the mark there is need to improvement. benefits or doing some extra works for them.executives groups. The feelings of satisfaction can be made better by making more employees friendly especially for non-executives population. RECOMMENDATIONS The company should review and make some more proper arrangement for employees. 38 . Quality of food must be improved to satisfy the employees. is always committed towards their employees and their families but than also I would like to give some suggestions. It is also necessary that the non-executives groups must be motivated time to time by providing them some incentives. Employees must be motivated and encouraged. 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.
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 . 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. .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 to summer training I have found that GCPL.
rules and regulations of GCPL. 40 . 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.FINDINGS The findings show that the employees are quite satisfied with the policies.