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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
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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.

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1.1 HISTORY OF GODREJ COMPANY

History of The Company: Established in 1897, the Godrej group has grown in India from the days of the charkha to nights at the call centers. The founder, Ardeshir Godrej, 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

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1991 - Foods business started 1991 - Godrej Agrovet Limited incorporated 1994 - Transelektra Domestic Products acquired 1995 - Transelektra forged a strategic alliance with Sara Lee USA 1999- Transelektra renamed Godrej Sara lee Limited and incorporated Godrej Infotech Ltd. 2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps Limited. Godrej Soaps renamed Godrej Industries Limited 2002 - Godrej Tea Limited set up 2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited 2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by providing professional pest management services 2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages & Foods Limited 2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North America and the company was renamed Godrej Hershey Foods & Beverages Limited 2008 - Godrej relaunched itself with new colourful logo and a fresh identity

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

1. 6. They shall strive for excellence by nurturing. Godrej Industries Limited is in the business of oleo chemicals and surfactants. 6 . 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. 3. Their objectives are: 1. 2. development and empowering our employees. 7. To constantly improve our economic value addition. Their objective is to delight our customer‟s both in India and Abroad. To maintain leadership in their business in India. 4. The company will achieve these objectives through excellence in areas of: Customer satisfaction Quality Cost reduction 5.2 OBJECTIVES OF COMPANY. To keep increasing their exports. Cost and customer service 8.

We shall strive for excellence by nurturing.” 7 .  We shall encourage an open atmosphere. 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. sanitation.  Training 1 million rural and urban youth in skilled employment  Achieving zero waste. conducive to learning and team work.g.  They will achieve this through enduring trust & relentless innovation delivered with passion & entrepreneurial spirit. health.1.VISION AND VALUES OF GODREJ.. carbon neutrality.3 MISSION. 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. 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. cost and customer service.  We shall achieve this objective through continuous improvement in quality. MISSION  Our Mission is to operate in existing and new businesses. developing and empowering our employees and suppliers.

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.

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

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

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

It aims to prevent deforestation and to encourage sustainable oil palm plantations. becoming carbon neutral and water positive and eliminating solid waste sent to landfills. when engaged in influencing public and regulatory policy. As part of the Good & Green vision there is a specific commitment to create a "Greener India". Godrej Industries has put initiatives in place at its factories in order to meet the codes. 12 . Godrej Industries was the first Indian entity to become a member of the Roundtable on Sustainable Palm Oil (RSPO). No violations in this regard have occurred. Principle 7: Businesses. utilizing a higher proportion of renewable energy sources. increasing the use of variable frequency drives in cooling air blowers and water pumps. The CII has outlined ten codes under the mission for attaining ecologically sustained growth which include reduction in specific consumption of water and energy. These include debottlenecking some processes and increasing throughput. 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. Our business is striving towards reducing specific energy consumption. 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. 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. a worldwide alliance of stake holders in the palm oil industry. which proposes to promote and champion conservation of natural resources in Indian industry without compromising on high and accelerated growth. should do so in a responsible manner For any policy advocacy. Godrej Industries ensures that it does so with the highest degree of responsible and ethical behaviour and also works with collective platforms such as trade and industry chambers and associations. Godrej Industries participates actively at the RSPO and sources palm products from suppliers who are themselves active members of the Roundtable.Principle 5: Businesses should respect and promote human rights Godrej Industries respects and promotes human rights for all individuals. Principle 6: Businesses should respect.

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

but includes internal customers as well. 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. We strive to ensure that customer needs are satisfied and that our products and services offer value to the customer.At the Godrej Group. 14 . 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. Our primary focus is delighting our customers. Our customer focus does not only extend to external customers alone. both external and internal. satisfaction and loyalty of our customers across the world. 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.

Increase in India‟s GDP/capita has led to a strong growth in the personal and home care market.5% as compared to 8. At a disaggregated level. but the opportunity for India remains tremendous. enhancing investor confidence and reviving growth. by funding enablers for facilitating productivity increase. this is attributable to a 2. home care (laundry detergents) and pharmaceuticals. In the past years. strengthening agri-distribution and storage as well as providing additional access to credit for farmers.8 per cent in services as compared to a growth of 7. Oleo chemicals are used in a variety of applications including personal care ( hair care. the government has provided the agriculture sector a boost.e. increased volatility in commodity prices and equity markets combined with slow progress on reforms has impacted economic growth.4% in FY 2011. benefitted from favourable monsoons in FY 2012. palm and vegetable oil)which impact the oleo chemicals businesses. Additionally. 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 2012.0 per cent. 6. The current environment has however.1.5 INDUSTRY STRUCTURE AND DEVELOPMENTS With several developed nations struggling to come out of the economic crisis. as per the advance estimate by Central Statistical Organization (CSO). the significant size of the global personal and home care ingredients markets also represents a potential opportunity. which is the largest employer in India. the center of gravity has been shifting towards developing economies.6 per cent in industry and 8. oral care.5 per cent growth in agriculture and allied activities. seen fluctuating raw material costs (i. skin care. 15 . The agriculture sector. While the overall economic outlook for India continues to be strong.2 per cent respectively during 2010-11.8 per cent and 9. The animal feed industry in India is evolving towards being a more organized sector with multinational feed millers also entering the market. 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. GDP growth rate has moderated in recent quarters with FY 2012 growth projected at 6. Global uncertainties. cosmetics). 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.

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

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

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

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

Best Eco-Friendly industry in Gwalior from MPPCB 2nd Runner-up award in state level competition on fromCII. Excellence in safety promotion in M. Workers were not able to express their views extensively as they had limitedtime to spare. Winner of the the year2001 ta Praman of the NSCI safety awards for Management 20 .P Best Safety from NSC for safety performance.7 LIMITATIONS OF STUDY A major limitation is that in program pertaining attitudinal changes. During the interview the limitation of the worker understands the perception of interviewer.     Limited number of workers was used as sample figure to generalize the analysis. CERTIFICATE & AWARDS       ISO-14001 for environment management system since 1999. Bhopal. The response got very subjective.1. 205 of the participants had to consult their colleagues for filling up thequestionnaire.

8 RESEARCH METHODOLOGY. 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.

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

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

This breaks maintenance down into 4 "families" or groups which were defined earlier.Plant maintenance: It is aimed to have trouble free machines and equipments producing defect free products for total customer satisfaction. Pillar-5 Quality maintenance: It is aimed towards customer delight through highest quality through defect free manufacturing. We gain understanding of what parts of the equipment affect product quality and begin to eliminate current quality concerns. thus freeing up the skilled maintenance people to spend time on more value added activity and technical repairs. Basically kaizen is for small improvements. Focus is on eliminating non-conformances in a systematic manner. Kaizen requires no or little investment. and then move topotential quality concerns. The operators are responsible for upkeep of their equipment to prevent it from deteriorating. Kaizen is opposite to big spectacular innovations. This pillar is aimed at reducing losses in the workplace that affect our efficiencies.Pillar 2 – Jishu hozen (Autonomous maintenance):This pillar is geared towards developing operators to be able to take care of small maintenance tasks. 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. but carried out on a continual basis and involve all people in the organization.Pillar 4. and "Zen" means good ( for the better ). Transition is from reactive to proactive (Quality Control toQuality Assurance). These activities are not limited to production areas and can be implemented in administrative areas as well .Kaizen "Kai" means change. much like Focused Improvement. By using a detailed and thorough procedure we eliminate losses in a systematic method using various Kaizen tools. 24 . Pillar 3.

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

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

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

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

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

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

Vocational guidance etc. 3. Interest free loans.These are provided within the organization like: 1. Rest rooms. Uniform etc. 7. Workers cooperative stores. Crèches. 3. 4. 2. 6. Canteen. Child welfare. 4. Housing. * Extramural: .3. Education. Leave travel facilities. 2. 31 . 5. like: - 1.3 Types of welfare services * Intramural: .These are provided outside the organization.

Utmost importance to Safety is given in the plant. Safety. Posters. A committee is constituted for this pillar which comprises representative of officers as well as workers.4 EMPLOYEES HEALTH AND SAFETY BY GODREJ. GI facilitates health and well-being through ergonomic design of products and careful use of raw materials which aid in creating comfortable. related to safety can be organized at regular intervals. The committee is headed by senior vice President (Technical). this element of urban living has become a significant contributor to health and well-being in the current scenario. Manager (Safety) is looking after functions related to safety. 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 it is a key performance area for all employees of Godrej Interio. “Employees spend more than 70% of their non-sleep time in offices. & are un-knowingly spending almost all the time in badly designed / utilized offices spaces which are in-turn very dangerous to health. Environment: Target: 1. Zero accident. Research conducted by Godrej Interio Ergonomic Cell has shown that today close to 71% of employees complain about discomfort at work. Majority of these problems are 32 .3. GI also uses its expertise in these areas to create a healthy and positive work environment for its own employees. Zero health damage 3. 2. and healthy work environments for consumers. Drama. safe. etc. To create awareness among employees various competitions like safety slogans. GI has made health and well-being an essential deliverable for all products and services. Zero fires. Hence. Given the amount of contact time consumers spend with their furniture at offices and homes. Quiz. This pillar will play an active role in each of the other pillars on a regular basis. Health.

and organizations they make contact with. which helps the customer choose the chair that is most suitable to their body dimensions and the task being performed. These tips are being emailed to more than 20. GI conducted Wellness Camps for 72 organizations and Ergo Audits for 9 different organizations.000 people weekly. GI‟s 'Wellness Tips' cover a vast range of topics. assess the current Ergonomic level of office spaces and suggest corrections in terms of workspace layout.” GI strongly believes that the best way to stay healthy is to know your health risks and work towards preventing them.000 people every week for the past 2 years. GI hopes to bring Wellness to the forefront for all the individuals. GI plans to reach out to more than 100.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.Wellness Camps & Ergo Audits Last year.due to un-ergonomic office furniture design and more importantly. The program's mission is to develop a culture of wellness at the workplace. The Human Resources and EHS departments of various customer organizations found excellent value in this initiative. GI launched the unique. wherein the team of Ergonomists create awareness about Musculoskeletal Disorders amongst employees. to optimal use of office gadgets and accessories. The three main initiatives of this program are listed below: i. In fiscal year 2011-12. The team has designed a product selection tool. ii. and consumer-focussed communication on the right way to use products. 33 . in the near future. workgroups. from good posture. due to non-application of basic Office Ergonomics principles. to office exercises. the Ergometer. value-added service of Wellness Camps & Ergo Audits. iii. These tools are currently used at all GI knowledge centers and at 37 company showrooms.Wellness Tips With this initiative. 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. With strategic linkages in the coming years.

GI will hold different competitions to create awareness and engage employees on OHS related aspects at the divisional and corporate level. and aims to go beyond this compliance with certification to OHSAS 18001 guidelines. and OHSAS reportable frequency rate was 0. Occupational Health & Safety Godrej Interio Health and Safety PolicyWhatever Godrej Interio (GI) does. and winners shall be suitably recognized. 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. employees will assume defined responsibilities and accountability. incentives are offered to report near miss incidences. whose responsibility it is to ensure that injuries are prevented. In line with this philosophy. Therefore.79 (refer HS03). GI is committed to maintaining compliance with local and national Occupational Health and Safety (OHS) laws that govern performance. 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. not only because they believe workplace health and safety is essential to respect human life.Occupational Health & Safety Trends at a Glance 34 . safety performance for the last few years is enumerated below. In efforts to build and support a culture that fosters and nurtures a safety mindset in the organization. refer HS-02). GI believes that all accidents are preventable. In that respect. On the path to the organizational mission of ZERO ACCIDENTS. GI operates in this manner. In 2011-2012.3. recorded 3 reportable and 25 non-reportable accidents (for 3 year trend. it shall be done safely. To sensitize and promote safety issues amongst employees. near miss reporting. as all hazards can be safeguarded either physically or through safe working procedures. focused on key indicators like hazard identification. To incentivize this. but also because it promotes good business practices and pays high dividends. there were no fatalities. safety trainings. working safely is a condition of employment at all its facilities. safety kaizens. etc.

* First aid boxes are provided. * Facilities for storing and drying clothes . 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 . if more than 250 workers are employed. suitable and clean washing facilities separately for men and women workers. wherever more than 500 workers are employed. * Welfare officer.5 Provisions which Factories Act 1948 provides for welfare * Adequate.3.* Canteens.

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

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. taxes. 37 . products.

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

. 39 .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.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. 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.

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.

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