CHAPTER-1

CORPORATE PROFILE - ASIAN PAINTS

The company is having presently four paint manufacturing locations in India.

Ankaleshwar, Bhandup, Patancheru, Kasna. The company is setting up a new facility in

Sriperumbadur, Chennai where these new positions will be based. An Asian paint is the India’s

largest paint company and ranks among the top 10 decorative coating companies.

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As we move towards becoming the one company and ranks among the top ten

decorative coatings companies in the world today, with a turnover of Rs 20.67 billion (USD 435

million) and an enviable reputation in the Indian corporate world for Professionalism, Fast Track

Growth, and Building Shareholder Equity.

The October’ 2002 issue of Forbes Global magazine USA ranked Asian Paints among

the 200th Best Small Companies in the World for 2002 and presented the ‘Best under a Billion’

award, to the company. One of the country’s leading business magazines “Business Today” in

1 From Google Images

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Feb 2001 ranked Asian Paints as the Ninth Best Employer in India. A survey carried out by

‘Economic Times’ in January 2000, ranked Asian Paints as the Fourth most admired company

across industries in India. Among its various other achievements, Asian Paints is the only

company in India to have won the prestigious Economic Times - Harvard Business School

Association of India award on two separate occasions, once in the category of “Mini-Giants” and

the other in “Private sector Giants”

The company has come a long way since its small beginnings in 1942. Four friends who

were willing to take on one of the worlds biggest,

Most famous paint companies operating in India at that time set it up as a partnership firm.

Over the course of 25 years Asian Paints became a corporate force and India’s leading

Paints Company. Driven by its strong consumer-focus and innovative spirit, the company has

been the market leader in paints since 1968. Today it is double the size of any other paint

company in India.

Asian Paints manufactures a wide range of paints for Decorative and Industrial use.

Vertical integration has seen it diversify into Specialty products such as Phthalic Anhydride and

Pentaerythritol. Not only does Asian Paints offer customers a wide range of Decorative and

Industrial paints, it even Custom-creates products to meet specific requirements.

To keep abreast of world technology and to protect its competitive edge, Asian Paints

has from time to time entered into technology alliances with world leaders in the paint industry. It

has a 50:50 joint venture with Pittsburgh Paints & Glass Industries (PPG) of USA, the world

leader in automotive coatings, to meet the increasing demand of the Indian automotive industry.

It has also drawn on the world’s latest technology for its manufacturing capabilities in

areas like powder coatings and high-tech resins - thus ensuring that its product quality lives up

to exacting international standards, even in the most sophisticated product categories.

The company places strong emphasis on its own in-house R&D, creating new

opportunities by effectively harnessing indigenous creativity. The Asian Paints Research &

Development Center in Mumbai has acquired the reputation of being one of the finest in South

Asia. With its team of over 125 qualified scientists, it has been responsible for pioneering a

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number of new products and creating new categories of paints. The R&D team has developed

the entire decorative range of the company.

The company boasts of state-of-the-art manufacturing plants at Bhandup in the state of

Maharashtra; at Ankleshwar in the state of Gujarat; at Patancheru in the state of Andhra

Pradesh; and at Kasna in the state of Uttar Pradesh. All the company’s plants have been

certified for ISO 9001 - the quality accreditation. All the company’s plants have also received the

ISO 14001 certificate for Environment Management Standard. The Phthalic Anhydride plant has

been certified for ISO 9002 and ISO 14001 whereas the Penta plant has been certified for ISO

14001. The Penta plant will shortly receive its ISO 9002 certification.

In June 2002, Asian Paints plant in Patancheru was conferred “The Golden Peacock”

award by the World Environment Foundation and the award for ‘Excellence in Environment

Management’ by the Government of Andhra Pradesh.

Asian Paints was one of the first companies in India to extensively computerize its

operations. In addition to computerized manufacturing, computers are used widely in the areas

of distribution, inventory control and sophisticated MIS to derive benefits of faster market

analysis for better decision making. It is a continuously evolving company deriving its cutting

edge from the use of innovative IT solutions. All the locations of the company are integrated

through the ERP solution.

Highlights:

Net Sales and Operating Income of Asian Paint (India)Ltd. grew by 14.4% from

Rs.16,966 million in 2003-04 to Rs. 19,415 million in 2004-05.

Net Profit increased by 17.4% from Rs. 1,478 million in 2003-04 to Rs. 1735 million in

2004-05

The Board of Directors have recommended dividend of 95% for the year 2004-05 with a

payout ratio of 60%

State of the art emulsion paint manufacturing facility commissioned at Sriperumbudur

near Chennai.

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BOARD OF DIRECTORS:

Ashwin C Choksi Non-Executive Chairman

Ashwin S Dani Non-Executive Vice Chairman

Murthy P M Managing Director & CEO

Abhay Vakil Director

Mahendra Choksi Director

Amar A Vakil Director

Ina Dani Director

Tarjani Vakil Chairperson of Audit Committee

Dipankar Basu Director

Deepak M Satwalekar Director

Rajendra Shah Director

Dr. S Sivaram Director

Mahendra M Shah Director

Ramadorai S Director

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ORGANIZATION CHART

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Mr. Ashwin Choksi Chairman

Mr. Ashwin Choksi VC & Managing Director

Director Corporate CenterMr. Abhay Vakil

Managing Director DBU

Mr. Jalaj Dani President IBU

Mr. Manish Choksi Chief Corporate strategy and CIO

Dr. Mosongo Moukwa VP -Technology

Mr. Vivek Subramanian VP –

Growth BU

Mr. vivek S. Patwardhan VP HR Mr. Jayesh Merchant CFO

& Company Secretary

Mr. I.K Jaiswal Regional VP Mr. Warren

McDonald Regional MD

Mr. KBS Anand President DBU

Mr. S.S. Kini VP Supply chain

Mr. Amit Syngle VP Sales & Marketing

CORPORATE SOCIAL RESPONSIBILITY

Asian Paints approaches Corporate Social Responsibility (CSR) from the perspective of

being a responsible corporate citizen. There has been a continued effort to take up initiatives in

various quarters and ensure sufficient resources for the sustenance and continuity of the same.

The Company has identified projects across all its manufacturing locations in the country

primarily in the areas of education, health care, and rain water harvesting.

In the area of education, the Company has been involved in supporting various schools

around its plants including the setting up of the “Gattu” school at Ankleshwar which provides

eduction to around 2,500 students from various strata of society. In the area of health care, the

Company continued operating Mobile Medicare Units (MMU) around Patancheru (Andhra

Pradesh) and Kasna(UP) plants collaborating with HelpAge India, an NGO. The Company also

took the initiative of treating people with cataract and successfully got around 460 patients

operated at recognized eye- hospitals.

RESEARCH AND DEVELOPMENT

Research and Development (R&D) plays an important role in developing new products

and reducing cost by re-engineering formulations. R&D operates in tandem with the Company’s

long term strategy and demands of the market place. In the last few years, the R&D efforts have

been focused on developing new exterior finishes, economy emulsions, distempers and wood

finishes.

INTERNATIONAL OPERATIONS:

Asian Paints operates in 23 countries across the world. It has manufacturing facilities in

each of these countries and is the largest paint company in nine overseas markets. It is also

India’s largest exporter of paints, exporting to over 15 markets in the Asia-Pacific region, the

Middle East and Africa. In 12 markets, it operates through its subsidiary, Berger International

Limited and in Egypt through SCIB Chemical SAE.

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CORPORAT VISION:

“Asian Paints aims to become one of the top five Decorative coatings companies world-

wide by leveraging its expertise in the higher growth emerging markets. Simultaneously, the

company intends to build long term value in the Industrial coatings business through alliances

with established global partners.”

“Finishes that give you great looking interiors, with the choice of every shade of the

spectrum”

HISTORY

1942

During the Second World War, it was hardly a promising time to set up a new company

in India, but that is exactly what four young men did in Bombay.

The name “Asian Paints” was picked randomly from the telephone directory.

And the four young men started manufacturing paint in a garage rented for Rs. 75 a

month, equipped with little more than a traditional Gujarati rhyme that reminded them that you

can make any colour by mixing the right proportions of red, blue and yellow.

1945

The company had touched a modest turnover of Rs. 350,000, way beyond the wildest

dreams of the partners. Up against the giant international paint companies, Asian Paints hit on

the innovative marketing strategy of “going where the consumer is”, reaching out to the remotest

corners of the country to give consumers products the way he wanted them-in conveniently-

sized packs. It was also around this time that the company created its mascot, Gattu, which has

grown into one of India’s most recognizable advertising symbols and representative of Asian

Paints’ strong Indian identity.

1957

It was the beginning of a decade of dramatic growth. The company’s R&D department

figured out a way to produce international quality Phenolic and Maleic resins on its simple coal-

fumace, with a hand-stirring process. This led Balmer Lawrie to reject the products offered by a

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leading giant UK-owned paint company, despite the latter is perceived technological advantage

and switch to Asian Paints products. Simultaneously the company embarked on an ambitious

marketing campaign, forming close bonds with thousands of dealers in small towns all over

India. These bonds in true Asian Paints style were so close that it developed a very strong link

between the organization and dealers these efforts paid off handsomely as the story of the

subsequent years’ shows.

1968

By 1968 the company surprised its big-name multinational competitors by emerging as

India’s No. 1 paint company. Ever since 1968, the company has been a leader in this industry.

The company presently has 27 % market share of the total paint market Even though being a

leader in this industry, it has realized that it can further consolidate its position.

1998

In 1998, the company embarked on a major restructuring strategy under the guidance of

management consultants, Booz Allen & Hamilton. The restructuring was done to bring greater

focus to its business, improve efficiencies, control cost and strengthen its leadership position.

After the completion of the restructuring, the vision for the company was stated. The company is

committed to realizing its vision and has chartered a complete plan of action for realizing its

vision.

Today

Asian Paints becomes the 10th largest decorative paint company in the world

Asian Paints is more than twice the size of its nearest competitor

It is one of the most admired companies in India

Present in 22 countries with 27 manufacturing locations, over 2500 SKU's, Integrated SAP -

ERP & i2 - SCM solution

Rated Best Employer by BT-Hewitt survey, 2000 Bluest of the blue chips by Hindu Business

Line; Most admired company to work for by ET-BT survey, 2000

On the recommendations of Booz, Allen and Hamilton, Asian Paints restructured itself into

Growth, Decorative and International business units and adopted SCM and ERP technology

Asian Paints aims to become the 5th largest decorative paint company in the world

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NEW CAPACITY

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NEW PAINT PLANT AT SRIPERUMBUDUR

Asian Paints, new paint plant at Sriperumbudur, near Chennai in the State of Tamil Nadu

commenced production on January 20, 2005. It is located at SIPCOT (State Industrial

Promotion Corporation of Tamil Nadu) Industrial Park, Sriperumbudur. This state – of – the – art

plant, erected in record time, has been established to manufacture emulsion paints alone with

an initial capacity of 30,000 KL per annum. This is Asian Paints fifth paint plant in India.

2 From www.asianpaints.com

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3

PAINT PRODUCTION PLANT

The plant is presently equipped with:

Modern material handling facilities including storage of raw material in silos.

Capability to handle batch sizes upto 20 KL, High speed packing lines.

The latest automated process control system.

Pollution abatement, waste usage in a closed loop manufacturing system and advanced

pollution treatment facilities.

These facilities will enable the company to implement “Right First Time and Zero

Defect” concepts. The plant is Zero Discharge plant and has Environment, Health, and

Safety features of the highest standard.

3 From www.asianpaints.com

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Global Presence of Asian Paints:

Asian Paints has had international presence right since the 1960’s. It set up its first

overseas unit in 1977 at Fiji. Asian Paints now has a strong presence in the Indian

subcontinents, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and

Europe. Along with Asian Paints, the group consists of sub Chemicals, Berger International and

Apco Coatings. Together, the group has 27 manufacturing locations globally.

Having established a position as one of the top ten decorative coatings companies in the

world, our constant endeavor is to give you the best in paints which stems form the motto: ‘Any

surface that needs painting needs Asian Paints’.

REGIONS COUNTRIES OPERATING

COMPANY

South Pacific Australia, Fiji, Solomon

Islands, Samoa, Tonga,

Vanuatu

Asian Paints and its

subsidiaries

South East Asia China, Malaysia,

Myanmar, Singapore,

Thailand

Berger International

and its subsidiaries

South Asia India, Bangladesh,

Nepal, Srilank

Asian Paints and its

subsidiaries

Middle East Bahrain, UAE Berger international

and its subsidiaries

Caribbean Barbados, Jamaica,

Trinidad & Tobago

Berger International

and its subsidiaries

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PRODUCT RANGE IN A COMPANY:

The company produces different rang of paints in interiors decoration as well as exterior

decoration, to satisfy the consumers.

INTERIORS:

Company product ranges are……

1. ROYAL LUXURY EMULSION: is an acrylic emulsion that gives a wall a silky shine that stays

for years to come.

2. PREMIUSM EMULSION: PE is a good choice for great looking walls. It gives a smooth finish

to the walls and is completely washable.

3. INTERIOR WALL FINISH - LUSTER gives a glass like finish, best suited for kitchens and

washrooms where there is a lot of moisture and dirt.

4. INTERIOR WASS FINISH-MATT: give a matt look to your walls and can be used to create

interesting effects.

5. TRACTOR EMULSION: TE is a good choice for people who are looking for value for their

money. It promises smoothness along with the legendary qualities of tractor.

6. TRACTOR ACRYLIC DISTEMPER: TAD gives a superio9r finish and comes in the range of

over 200 shades.

7. TRACTOR SYNTHETIC DISTEMPER: TSD is India is largest selling distemper. This wall

finish comes in beautiful shades and is washable.

8. APCOLITE PREMIUM GLASS ENAMEL: APGE is a premium product used for metals and

wood. It can withstand rigged condition sunlight and dust.

EXTERIOR:

1 APEX: Apex creates beautiful exterior. It withstands extreme typical conditions of high rainfall,

humidity and heat. It protects against, sunlight, fungus and algae.

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2 ACE: provides production from the elements of nature. It is suitable for non - coastal areas

and places with dry to moderate climate.

PRIMERS & ANCILLARIES:

1. DECOPRIME WALL PRIMER (solvent thinnable): DWP is an application for interior surfaces.

It has good sealing properties and strong resistance to alkalinity, moisture & fungus.

2. DECOPRIME WALL PRIMER (water thinnable): DWP is used on plastered walls, asbestos,

cement and concrete. It is also fortified with fungicides.

3. WOOD PRIMER: WP has excellent sealing and filling properties, which protect wood from

swelling due to absorption of moisture.

4. METAL PRIMER: MP has good adhesion and prevents metal from rusting, by forming a hard

tough coating.

5. ACRLIC WALL PUTTY: AWP is a smooth, easy to use under coat with excellent adhesive

properties.

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4

PRODUCTS OF ASIAN PAINTS

“Come rain or shine, this range

keeps the pristine beauty of your

home untouched for years”.

4 From www.asianpaints.com

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MARKETING STRATEGY OF ASIAN PAINTS:

Product Mix:

Asian Paint Company manufactures and markets, a wide arrange of products such as

surface coatings and ancillaries, which include Architectural and Heavy Duty Coating for

maintenance purpose. Asian paints provide wide range of color shades (about 1400) for

different kinds of surface. All the shades are created by All India Institute of Fashion

Technology. They create colors according to the Indian Taste.

Distribution Mix:

In India, the distribution network of the company consists of 56 sales offices and 6

Regional Distribution centers each with its own warehouse distributing products to cater over

15,000 retail outlets and industrial users spread across the country.

In every place where there is a population of around 20,000 there is an Asian paint

dealer. There is no middle men or sub stockiest. When an order placed to the company the

company distributes the goods to the dealer directly from its own godowns.

As there are no middle men, the service is fast. It reaches to the end user i.e., the

consumers in a very short time. In Davangere the company has got 18 dealers.

Promotion Mix:

The company promotes the products through advertisement in Television, maga- zines

etc. The ads are created bearing in mind, the culture, people, area etc. The ads are seasonal in

nature. The advertisers for Asian paints is O and M (Oglive and Mother). Most of the ads are

created on the basis of the family as the members of the family who decides the type of paint,

shade of paint etc.

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Price Mix:

The prices of the products of the company are on par when compared with the other

companies in the organized sector.

The price of Asian Paints, compared to the paints of other companies is same. But

slightly higher that the prices of unbranded products. It does not mean that the products of

Asian Paints are inferior. Asian Paints have succeeded in reducing the process and supplying

the quality products at a reasonable rate because of huge investment in Research and

Development. Through Research and Development, the company has improved the quality of

paints and increased the life of paints. From the above table it is clear that even middle class

people buy paying a slightly higher price (compared to prices of unbranded paints) they can get

quality products of Asian Paints Ltd.,

ABOUT SERVICES:

The company starts services by the name called Home Solutions. Home solutions

means the company provides technical information on process of painting. It gives complete

information about how the customer selects the paints from different range. Which color, range

of paints suits to home, how to paint a home, etc., This facilities available only big cities, like

Bangalore, Bombay, Kolkata, Delhi, Chennai etc.,

“Perfect applications that work in unison with every wall finish. Giving surfaces the best

results”

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CHAPTER 2

INTRODUCTION OF CORPORATE SOCIAL

RESPONSIBILITIES

1.1 Meaning

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Corporate social responsibilities, also known as corporate responsibilities, corporate

performance, responsibilities business, sustainable business, or corporate social

performance is a form of corporate self regulation integrated into a business model.

Ideally, CSR policy would function as built in, self regulating mechanism whereby

business would monitor and ensure its support to low ethical standards, and

international norms. Consequently, business would embrace responsibilities for the

impact of its activities on the environment, consumers, employees, community,

stakeholders and all other members of the public interest of the public sphere.

5 From Google Images

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Furthermore, CSR focused business would proactively promote the public interest by

encouraging community growth and development and voluntarily eliminating practices

that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate

inclusion of public interest into corporate decision making, and the honoring of triple

bottom line,

People

Planet

Profit

The practice of CSR is subject to much debate and criticism. Proponents argue that

there is a strong business case for CSR, in that corporation benefits in multiple ways by

operating with a perspective broader and longer than their own immediate, short term

profits. Critics argue that CSR distracts from the fundamental economic role of

business; others argue that it is nothing more than superficial window dressing; other

yet argue that it is attempt to preempt the role of government as a watchdog over

powerful Multinational Corporation. Corporate social responsibilities have been

redefined guide to what the company stands for and will uphold to its consumers.

Business ethics is one of the forms of applied ethics that examines ethical principle and

moral or ethical problems that can arise in a business environment.

In the increasingly conscience focused marketplace of the 21st century, the demand for

more ethical processes and actions is increasing simultaneously, pressure is applied on

industry to improve business ethics.

1.2 Definition

The World business council for sustainable development in its publication that “CSR is

the continuing commitment by business to behave ethically and contribute to economic

development while improving the quality of life of the workforce and their families as well

as of the local community and society at large”. (By Lord Holme and Richard Watts)

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“CSR is about capacity building for sustainable live hoods. It respects cultural

differences and finds the business opportunities in building the skills of employees the

community and the government”. (From Ghana)

The same report gave some evidence of the different perception of what this should

mean from a number of different societies across the world, which the CSR is about

cultural building for sustainable and finds the business opportunities in building the skills

of employees, the community and the government.

By the European model is much more focused on operating the core business in a

socially responsible way, complemented by investment in communities, this model more

sustainable because the two things mostly affect this;

Social responsibilities become an integral part of the wealth creation process

which if managed properly should enhance the competitiveness of business and

maximize the value of wealth to society.

When time get hard, there is the incentive to practice CSR more and better if it is

a philanthropic exercise which is peripheral to the main business, it will always be

the first thing to go when push comes to thrust.

1.3 Why to develop CSR

The term is often used interchangeably for other terms such as corporate citizenship

and is also linked to the concept of triple bottom line reporting (TBL), which is used as

framework for measuring an organization performance against economic, social and

environmental parameters.

The rationale for CSR has been articulated in a number of ways. In essence it is about

building sustainable businesses, which need healthy economics,, markets and

communities.

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Key drivers for CSR are:

Enlightened self-interest – creating a synergy of ethics, a cohesive society

and sustainable global economy where markets, labor and communities are

able to function well together.

Social investment – Contributing to physical infrastructure and social capital in

increasingly seen as a necessary part of doing business.

Transparency and trust- Business has low rating of trust in public perception.

There is increasing expectation that companies will be more open, more

accountable and be prepared to report publicly on their performance in social

and environment areas.

Increased public expectations of business- Globally companies are

expected to do more than merely provide jobs and contribute to the economy

through taxes and employment.

World Economic Forum &CSR

The World Economic forum has recognized the importance of corporate social

responsibly by establishing the global corporate citizenship initiative. The initiative

hopes to increase business engagement in and support for corporate social

responsibility as a business strategy with long term benefits both for the companies

themselves as well as society in general.

At the forum’s Annual Meeting 2002 the initiative launched a joint CEO statement,

Global Citizenship: the leadership challenges for CEOs and Boards. This joint statement

recommends a framework for action that business executives can use to develop

strategy for managing their company impact on society and its relationships with

stakeholders. This statement was endorsed by the CEOs of over 40 multinational

companies, including the CEOs of Accentor Deloitte Touché Thomas, Deutsche Bank,

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Rio Tin to, Siemens, Renault, McDonald, Infosys, Technologies, Coca-Cola, DHL and

price.

Case Studies

The case studies below demonstrate how diverse company activities can be for

businesses of all sizes:

SAP

Here for life is a not for profit public benevolent organization focusing on education,

awareness and research aimed at the prevention of youth suicide. The organization

provides resources, education and school based life skills programs to help prevent

suicide amongst young people. Through it charity sponsorship program SAP Australia

supports her for Life with monetary contributions, volunteering and staff involvement in

the agency’s programs.

IBM

Japan e-older initiative is a national program using training materials and other support

from IBM Japan which will hire and train seniors as instructors for other seniors in an

effort to help elder citizenship (expected to make up one fifth of Japan population by

2008) more fully participate in a Web based society.

MICROSOFT

Microsoft works closely with international organizations such as the World food

programmed, save the Children, and Corps to provide technology based development

assistance through the HEART (Humanitarian Empowerment and Response through

Technology) program. More and more, global organizations rely on technology to

improve the effectiveness of their humanitarian efforts around the world.

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Should ASOCIO have a role?

Increasingly, for many organizations, CSR is an integral part of the way they operate

and a key element in productivity and competitiveness, particularly through managing

their impaction society and engaging stakeholders. Many business leaders wish to have

a beneficial impact on the societies in which they operate, and offer some accountability

to their stakeholders. CSR takes place at the level of the individual company, which has

to take decisions on priorities, purpose and values strategy and engagement with its

stakeholders. By engaging in dialogue with industry and government, ASOCIO can

assist in;

Supporting and stimulating association and greater understanding between the

corporate, Government and community sectors regionally.

Raising awareness of the positive contributions that ICT industry makes towards

key social and environmental issues relevant to the ICT industry, and

Developing a network of representatives across the ASOCIO memberships to

shape and drive this program on CSR.

1.4 OBJECTIVES

To understand the foundational element that need to be in place to foster a high

performance CSR organizational and develop a framework or roadmap for firms

wishing to become a high performing CSR organization.

Human resources professionals have a key role to play to help a company

achieve its CSR objectives. Employee involvement is a critical success factor for

CSR performance. Human resources managers have the tools and the

opportunity to leverage employee committeemen to, and engagement in the

firm’s CSR activities.

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High performing CSR organization fosters a culture of CSR and fully integrates

CSR throughout their operations, rewarding and incentivizing CSR decisions and

initiatives.

Employees prefer to work for organizations aligned with their values,

incorporating CSR into the employee brand can enhance recruitment and

retention, particularly in tight labor markets.

CSR can be applied to the HR toolkit, resulting in a roadmap or pathway for

human resource practitioners to follow who wish to contribute to the achievement

of their organization’s sustainability.

1.5 Positive outcomes when business adopt policy which include in CSR

1.5.1 Company benefits:-

Improvement finance performance.

Lower operating cost

Enhanced brand image and reputation

Increase sales and customer loyalty

Greater productivity and quality

More ability to attract and retain employees.

Reduced regulatory oversight

Access to capital

Product safety and decrease liabilities.

1.5.2 Environmental benefits: -

Greater material recyclability’s

Better product durability and functionality

Greater use of renewable resources

Integrations of environmental management tools into business plans.

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1.5.3 Benefits to public: -

Charitable contribution

Employee volunteer program

Corporate involvement in community, education, employment and homelessness

programmed

Product safety and quality.

1.5.4 Driver pushing and necessity of CSR

1. The shrinking role of Government

2. Demand for greater disclosure

3. Increased customers interest

4. Growing investor pressure

5. Competitive labor markets.

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CHAPTER 3

DEVELOPMENT OF CSR

2.1 HR DEVELOPMENT AND CSR

As markets become increasingly competitive and the competition for talent grows more

intense, human resources become a corselet of corporate competitiveness which can

greatly influence a company’s present and future development. The group a

consistently subscribed to utmost to attract, develop and motivate its employees; to

seize the initiative in this competitive marketplace through the continuous enhancement

and reform of its human resources management mechanisms. The employees actively

participate in team building exercises. Through their personal involvement and

experience, employees develop a spirit of teamwork and co-operation, thereby

enhancing the overall corporate culture. An initiative in its daily operations, the group

emphasizes teamwork and the importance of Internal/External customers to achieve

and efficient delivery mechanism centered on the strategic objectives of the business.

Through effective teamwork and the implementation of comprehensive customer

service management, the group seeks to provide the most economical and highest

possible quality services to satisfy its customers’ needs.

2.2 The basic integrating CSR into HR management

Human resources professionals are highly tuned to considering CSR from both a values

based and a business case perspective. They work in business function that readily

indentifies both the business benefits and the people benefits of fostering CSR

alignment and integration. However, there is little guidance available to human

resources leaders and HR management issue brief and roadmap who wish to advance

CSR within the firm. This section provides a starting point for managers mapping out

their strategic approach. It can serve as checklist for advanced managers who are

committed to make a difference in this way and are at the beginning of their journey.

Ideally these steps would be followed more or in practice this is often not possible and

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indeed, some managers may have already implemented certain components. It is

therefore entirely feasible to start from the middle of this list and work in all directions

towards the end goal a CSR integrated company that is reaping the employee and

business case benefits, while leveraging community sustainability.

This guide has been developed recognizing the constrained economic environment of

our times; the tools and tactics proposed in this roadmap are those which can readily

before going business.

Case analysis partly demonstrates, a CSR program can add significant business value.

There are other business case benefits of CSR – For example, operational cost savings

from reduced materials use that can be significant, pointing to a financial rationale for

the development of a strong CSR strategy and integration.

2.3 Role of CSR

Increasingly, for many organizations, CSR is an integral part of the way they operate

and an element in productivity and competitiveness, particularly through managing their

impact many business leaders wish to have a beneficial impact on the societies in which

they operate, and offer some accountability to their stakeholders. CSR takes place at

the level of the individual company, which has to take decisions on priorities, purpose

and values, strategy and engagement with its stakeholders. By engaging in dialogue

with industry and government, ASOCIO can assist in:

Supporting and stimulating collaboration and greater understanding between the

corporate, Government and community sectors regionally.

Raising awareness of positive contribution that ICT industry makes towards key

social and environmental issues relevant to the ICT industry.

Developing a network of representatives across the ASOCIO membership to

shape and drive this program on CSR.

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I AM COMMITTED TO ACT

I BELIEVE

(Employee are familiar with the CSR strategy and how it

helps the company meet it objectives)

I UNDERSTAND THE MESSAGE

(Employees learn the reason behind the company CSR objectives

and begins to understand their role in making the company

successfully)

~ 27 ~

I AM AWARE OF THE MESSAGE

(Employee are familiar with the CSR strategy and how it helps the

company meet its objectives)

2.3 (EMPLOYEE ENGAGEMENT)

CSR

2.4 MANAGEMENT OF CSR IN CORPORATE

2.4.1 How is CSR organized?

CSR starts with a commitment to “integrated decision making” systemic thinking that

sees the interrelationship between top global stakeholders corporate department and

previously segregated roles of individuals obliterating prior boundaries that blocked

alignment with society, CSR can expand corporate vision, transform the corporate

mission, inform strategy and motivate employees and all stakeholders to take the

enterprise to the next level in ways that sustain resources for present and future

generations. Stakeholder’s engagement is key procedural plank for CSR, with greater

transparency within the corporation and outwards towards driving progress, enhanced

risk management and accountability for results.

2.4.5 How is CSR managed?

Sometimes companies segregate the CSR or sustainability or corporate citizenship

function in a separate department and expect that department to handle CSR issues is

isolation a recipe for CSR failure and enhanced rather than reduced risk. Other

companies still consider CSR mainly a “public relation” exercise and relegate it to the

PR or communication function- also a red flag that the company may not truly

understand CSR. Indeed, while reaping brand benefits is a major driver for CSR, and

critics are wrong to say that CSR is PR, overemphasizing above substance remains one

of the common traps to be avoided by companies attempting to implement CSR. Real

~ 28 ~

CSR has resulted inn tangible benefits in terms of enhanced attention to human right by

extractive industries and reduced instances of child and forced labor in supply chains,

but those achievement take hard work and not glossy brochures. Because of the broad

purview and authority of the legal function in many leading global business, and the fact

that CSR begins with legal compliance, the legal department is often the focal point

for /CSR in many companies, working to ensure an integrated CSR approach

2.4.3 How is CSR evaluated?

CSR is evaluated both via internal audit and review mechanisms and a variety of

external review, audit and verification mechanisms, some of which are within the ambit

of company influence and some of which are less subject to company control. As an

example of internal audit team which goes far beyond the implication that the world

“audit” suggests, the audit function there has historically served as a source for future

corporate leaders as well as critical check to ensure compliance with the spirit as well

as the letter of the corporate code of conduct.

2.4.4 What are the roles of chair, board, CEO, CFO, shareholders, employees etc.

in making CSR a companywide practice?

The balance to be struck here is between an unmistakably honest and strong

commitment and accountability “from the top”- the CEO and board and other executives

and the distributed leadership necessary for CSR to truly permute the enterprise, while

the CEO is and should be ultimately accountable, and it usually makes sense to have

rigorous supporting mechanisms such as a top executive specifically charged and

focused on CSR issues, as well as a board level committee dealing with matters of

CSR, business ethics, and risks management, this should not be an excuse for avoiding

similarly accountable leadership by other core business functions including the heads of

business units and country leaders and the heads of critical functions such as

manufacturing, procurement, logistics, quality control, legal, human resources, finance

and the like. Indeed, within their own” sphere of influences and activity ” each employee

~ 29 ~

and each participant in the enterprise’s extended value chain should know and be

accountable for their CSR obligations.

2.4.5 How can we make CSR part of the corporate culture?

As with the question of human rights and environmental compliance in society at large,

this is in fact the most critical question. The law and market incentives are inherently

limited- they can only go so far without risking counterproductive legal, practical or

market failures. So even though (as discussed above) CSR involves compliance with

law and is also “enforced” through both positive and negative incentives, both practical

experience and academic research indicates that it can all is fruitless unless the culture

and values of the company support CSR. To hear some business leaders or business

school academic discuss the subject, we may come away with the impression that

virtually any values are acceptable and that a “values based” company is simply one

that has values- even if those values merely relate to short term shareholder and

management wealth maximization. This is wrong that genuine leadership is inherently

moral. So the values chosen matter tremendously and they must be values aligned with

society (including the most universal statement of human values in history).

~ 30 ~

2.5 PRIORITIES FOR CORPORATE SOCIAL RESPONSIBLITIES

37%

7%7%

7% 7% 5%

11%

19%

BusinessInvestorsUniversity sectorMediaGovernmentOtherEnvironmentalSocial NGO's

2.5.1 NGO’s

It is noticeable that the ranking of factors amongst of environmental NGO’s and

sociable NGOs are rather different when compared other stakeholders. Not surprisingly,

the environmental NFOs rank good environmental performance and sociable and

environmental policies as the most important two factors. There are also keen to see

more stakeholder dialogue and good health and safety.

The sociable NGOs tend to priorities human resources and labor rather more. This may

reflect the fact that a number of the response in this sector came from a range of labor

organizations. In that regard, human rights are ranked as a higher priority than any

other stakeholder group. Both NGOs groups see stakeholder dialogue and supply chain

management and factory inspections as important.

~ 31 ~

2.5.2 Investors

Investors seem most interested in factors that directly affect them and not surprisingly

rank governance and codes of conduct on bribery and corruption as their most

important elements. They are also keen to see companies report. Interestingly, these

top 3 ranking are shared by the media group perhaps indicating that these are elements

associated with information and transparency.

2.6 Areas of CSR

Given the broad definition of CSR they are many areas of business operations that are

affected by it. The most often elements of CSR are:

Governance: Sound governance, ethical conduct of staff, transparency of

operations, no conflicts of interest, compliance with listing rules, compliance with

corporate law.

Risk Management: Organizational health & safety, product safety, regulatory

compliance, reputation management, responsible business practices,

stakeholder engagement.

Value Chain: Responsible procurement, supplier management, externalization

of costs, supplier screening, supplier feedback, fair trade.

Social: Human rights, community engagement, philanthropic activities, charitable

donations, staff volunteering, social benefits, local capacity building, social

investment.

~ 32 ~

Employees; Turnover, moral, satisfaction, work life balance, internal culture

(transparency), labor practices, job security, remuneration, diversity, equal

opportunity, training.

Environmental: Environmental footprint, waste & pollution avoidance, eco-

efficiency, product recycling, sustainability, greenhouse gas emissions, resource

reduction, precautionary principle.

Measurement: GRI (Global Reporting Initiative) reporting, Internal & external

audits, verification statement, management targets.

2.7 The top five factors including in CSR

The distribution of responses is relatively similar there are some interesting

characteristics. In terms of good environmental performance, more businesses than non

businesses stakeholders consider it to be vital. Over fifty percent businesses see good

health and safety practices governance as very important or vital. More businesses than

non businesses see human resource management and good employment practices as

vital. But in terms of codes of conduct on bribery and corruption more non businesses

stakeholders see the issues as vital.

2.4.1 Allocation of response for good environment performance

2.4.2 Allocation of response for good health and safety practices

2.4.3 Allocation of responses in good human resources management and

employees practice

2.4.4 Allocation of response for codes of conduct on bribery and corruption

2.4.5 Allocation of responses on good corporate governance

~ 33 ~

CHAPTER 4

FINDINGS

3.1 FROM THE COMPANY’S

CSR plays a vital role in the society. Every organization set own CSR strategy to

develop their organization. Here many companies organized their own CSR policy:

3.1.1 Nestle India Ltd.

Product: Food manufacturing company

CSR Activities:-

Safe Drinking Water with the construction of facilities for drinking water and

laboratory in villages schools in the moga factory milk district.

Education and Training:

Purpose

The Nestle Ltd. creates awareness about the right education and encourages the

communities around its factories to send their children to school, so for that purpose

they developed a special program, “Let us go to school”

Nestle India support local school to help in the maintenance of public parks

and green belts.

They develop blood donation camp and health awareness program, the key

message of this program conservation, hygiene health and wellness are

progressively built into the community.

They established a “family day one a week” that day they play basketball or

walk around the zoo or family favoritism museum.

~ 34 ~

The Company provides assistance to farmers in the areas of cattle feed,

quality fodder seeds, veterinary medicines and mineral mixture.

They provide procurement of bank loan.

3.1.2 Procter and Gamble: -

Product: Beauty products, hare and care, home care product,

CSR Activities:-

P&G launched a program name is a UNIQUE ENVIRONMENTAL

EDUCATION PROGRAM for children in school across Bombay and Thane

representing a cross section of economic background.

Purpose

The multiplicity of Eco- system in India, Air around us, water, solid waste, and

adopting conservation in our life styles were the topics death with using

interesting media like, music, games, project work slides, video film, and group

discussion.

A another project of P&G is OPEN MIND IN 2000

Purpose

For this purpose it partnership with UNICEF and launched a project open mind to

support and educated children across the India and Australia. According to this

project 55% children’s can complete their primary education.

P&G is also launched a project DRISTI in 1993

~ 35 ~

Purpose

P&G also tie up with national association for the Blind (NAB) for restore eyesight

to 250 blind girls through corneal transplant operation. Till date 138 sight

restoring operation has been successful conducted across the country.

SECURE YOUR CHILD FUTURE IN 2003

For the continuous development of the community P&G is associated with SONY

entertainment television launched an education initiatives SHIKSHA- Secure your

child future across the country.

In order to ensure P&G reached the non Hindi speaking audience, a tie up with

three other channels in the south was undertaken

Purpose

By this decision those persons who have not able to speak and understood Hindi they can saw these channels.

GUJARAT EARTHQUAKE RELIEF

Purpose

P&G partnership with SWAYAM SHIKSHAN PRAYOG (SSP) opened four

community resources centre for the earthquake victims in Chaka sari, Paggivand,

Hanjiya and Jodhpur vands (Hamlets) in Gujarat.

This community centre educate children and gave training on building

earthquake resistant shelters and has supported the formation of 22 women

saving group which contributed towards an income generating funds. The

operation cost for each centre is RS. 25,000 per month met by P&G. And

currently working forming women micro credit group to ensure the sustainability

of these centre four to seven.

~ 36 ~

3.1.3 TATA STEEL LTD.:

Products: Chemical, pharmaceutical, Cement, automobiles, steel,

CSR Activities:

It develops social welfare department for the society.

Culture protection schemes and educational scholarships.

Organized training program to improve the employability of local youth.

TATA STEEL has undertaken several ventures on attain (EDUCATION FOR

ALL).

For development

TATA STEEL is continue to complete of this plan so it donate a building of 71

acre campus to XAVIOUR Institute to Tribal education in the effort. In the

Jamshedpur it creates Jamshedpur of arts.

In this program it support worth of RS.25 lakh, to more than 493 meritorious

students each year since 2004.

It identify every year for coaching that prepare them for higher studies. It make

camp school for underprivileged girls children with the help of Jharkhand

education project till 5th standard and qualifies for admission to class 6th in 2008-

09. In this program 200 girl children enroll in the two camp school.

For Health

The P&G LTD. is doing clinical outreach program and mobile medical facilities

and medicine distribute.

~ 37 ~

And it also gives eye care services

AIDS awareness program

Disabilities management program

Preventive Intervention:- Primary healthcare for protective illness.

3.1.4 Infosys Ltd.

Products: Computer components (PC, software, hardware)

CSR Activities:

Notebook distribution: The Infinite smiles CSR team has been distributing books and

stationery to underprivileged children across Karnataka since 2001. In 2009, the team

touched more than 45000 lives, including the tribal community. We collected donations

amounting to Rs. 10, 00,000. Our drive has been actively supported by the Dream

School Foundation, Ramana Clinic, Sri Vivekananda Youth Movement, Chrysalis and

other NGO’s.

Behavior and social skills development: Prayaas, Our local CSR team, organized a

program where 60 children from the Panchkula slum showcased their creativity in group

activities. The children were imparted training in social etiquette.

Medical camp and cleanliness drive: Prayaas has adopted Tanada village to drive

social transformation in the region. Our volunteers engaged residents in a cleanliness

drive to prevent malaria. A free camp for eye and general medical checkup was

organized. Medicines and spectacles prescribed by doctors at the camp were

distributed free of cost. The team collected data on health and sanitation related issues

to address them.

~ 38 ~

Educate: Sneham, our local CSR team, manages a dedicated internet portal to help

employees support education of the children of our housekeeping and security staff. In

2009, 1,500 members contributed approximately Rs. 14, 00,000 to support more than

370 students. Meritorious students were awarded for their performance. A special

award was presented to a girl child with exceptional recitation skills.

Summer camp: A month workshop was conducted in May 2009 at Karunaya Mane, a

child rehabilitation center, a child rehabilitation center. 30 children were taught art and

craft, dance, math, English, environment awareness, traffic rules, health and fitness,

and social etiquette. Quiz contests helped the children asses their general knowledge.

Play and Live (PAL): We use sports to boost the confidence of underprivileged

children, teach them various skills and change their outlook. We donated sports

equipment including carom and chess boards, and prizes such as watches, perfumes

and chocolates.

Language and computer education: Basic computer education was imparted to the

security and housekeeping staff of the DC. Our team also helped 10 guards improve

their English language skills.

~ 39 ~

3.2 RECOMMENDATION

For the education

The Asian Paints Ltd. Can offer a technical training camp for ITI’s or

polytechnics and other technical institutions

Benefits:

Because of this, local students and people can get some new ideas and they can

know as regards new technology which is using in the organization.

Students can also give suggestions for implement in support of good.

Asian paints can provide scholarship and basic computer education to

orphanage children.

Asian paints can improve infrastructure and health care facilities in schools

(dental camp, general check up camp for children’s)

Asian Paints can provide an ENT specialist for old age home.

For the better environment Asian Paints can plantation either side of road?

~ 40 ~

4.4 Recruitment process

Aptitude/ Technical written test- it consist of multiple choice questions based

on theoretical aspect for mechanical, chemical, electrical and instrumentation

subjects, those who score the requisite percentage in this test will move on the

next round.

Group discussion- This process is used only during mass recruitment. It serves

to indentify the few good candidates from amongst the many who have cleared

the first round and also as an effective filter.

HR Interview- This Interview is conducted by the HR Manager wherein the

attitude, communication skills, analytical skills and English speaking ability of the

candidates are tested.

Technical Interview- This interview is conducted by the senior manager of

senior manager maintenance as the case may be, the technical knowledge and

competence is tested here.

Plant Manager Interview- This is the round where the selected candidates are

interviewed directly by the plant manager himself. Here the plant manager

evaluated the technical competence again and also evaluate other aspects such

as confidence, energy level etc.

4.5 Production Scheduling

The asianpaints is the largest paint industry in India, asianpaints being divided in two

categories:

1. Decorative business unit

It is the largest business unit of the company contributing to over 70% to the

group revenue. Asianpaints operates in all segments- Interior wall finishes,

~ 41 ~

Exterior wall finishes, wood finishes and, metal paints. It has been market leader

for over years and leads every segments DBU is also known as:

Asian Paints home solutions

Predicting color trends

Kids World

2. Growth business unit

GBU is second business unit of the company which is used in the luxury, industry

paints and, road marking. The GBU is not the leader in the market but it hope

that in the earliest it will be leader in the market.

The asianpaints have six manufacturing plants in India and all over the World it has 28

plants. In India there are six plants:

1. Bhandup in Mumbai is the first plant of asianpaints in India, It can give the

production capacity p.a 30,000 KL

2. Ankleshwar in Gujarat plant can give the production capacity is p.a 1,00,000 KL

3. Patancheru in Andra Pradesh can give the production capacity is p.a 80,000 KL

4. Kasna In UP can give the production capacity is p.a 80,000 KL

5. Sriperumbdur in Tamilnadu can give the production capacity is p.a 50,000 KL

and,

6. The last and world biggest and fully automatic paints plant in Rohtak at Haryana

is currently set up which production capacity are 4, 00,000 KL which is more than

as compare to all five plants of asianpaints. The asianpaints Rohtak plant

produce only DBU paints.

~ 42 ~

4.6 Advertising

The asianpaints is the world largest paints company; company has advertised their

invention in several ways. The brand ambassador of asianpaints is “Saif Ali Khan” who

advertised the asianpaints products like “Apex ultima, ACE, Royale Play, Utsave and,

Tractor Emulsion”. Royale Play is the most costly brand product of asianpaints. The

latest advertisement is “Yeh Budget shadi hai, Yeh sirf dikhta mahanga hai”. In the

market it can further split into DBU and GBU Paints. DBU paints are highly price

sensitive and also cyclical. Monsoon is slack season while the peak business period is

Diwali festival time, when most people repaint their houses.

4.7 Sales figure of Asian Paints

Here the sales figure of asianpaints by profit and loss accounts and total income and

total expenditure of 5 years are showing:

Profit And Loss A/c of Asian Paints …….in Rs. CR……….

Income Mar05 Mar06 Mar07 Mar08 Mar09

Sales turnover 2366.15 2807.06 3389.79 4092.36 5042.40

Excise duty 313.87 359.28 436.42 496.83 532.28

Net sales 2052.28 2447.78 2953.37 3595.3 410.12

Other income 22.54 -9.40 34.38 52.29 23.86

Stock adjustment 74.92 -1.48 71.50 33.90 0.61

Total income 2149.74 2436.90 3059.25 3681.72 4536.59

Expenditure Mar05 Mar06 Mar07 Mar08 Mar09

Raw material 1200.33 1363.82 1733.28 2003.37 2641.09

Power and fuel 25.44 27.30 3.30 35.86 45.78

Other Manu. Exp. 118.35 129.43 155.60 195.54 239.77

Selling and admin exp. 23.90 25.75 31.53 39.26 40.45

Miss. Exp. 438.36 518.72 620.77 771.66 939.16

Preoperative expenses 0 0 0 0 0

~ 43 ~

Total exp 1822.47 2080.27 2588.59 3059.94 3916.80

Mar05 Mar06 Mar07 Mar08 Mar09

Operating exp 304.73 366.03 436.28 569.49 593.93

PBDIT 327.27 356.63 47.66 621.78 617.79

Interest 6.58 8.16 15.34 13.46 15.91

PBDT 320.69 348.47 45.32 608.32 601.88

Depreciation 47.61 45.33 45.42 43.7 57.15

Other written off 2.29 0 0 0 0

Profit before tax 270.79 302.94 409.90 564.55 544.73

Extra ordinary items -0.33 0.91 2.12 -2.69 3.60

PBT 270.46 303.85 412.02 561.86 548.3

Tax 96.98 117.08 139.99 186.66 185.97

Reported Net Profit 173.48 187.81 272.05 375.20 362.36

Total value addition 622.14 716.43 855.31 156.57 1275.71

Preference dividend 0 0 0 0

Equity dividend 91.13 119.90 124.70 163.06 167.86

Corporate Dividend tax 12.54 16.82 17.77 27.72 28.53

Per share data 0 0 0 0

Share in issue (lakh) 959.20 959.20 959.20 959.20 959.20

Earnings per share 18.09 19.58 28.36 39.12 37.78

Equity dividend% 95 125.00 130.00 170.00 175.00

Book Value 59.66 64.88 77.57 96.80 114.10

~ 44 ~

FINANCIAL RESULT

Balance sheet of Asian paints ………in Rs. Cr………..

Source of Funds Mar05 Mar06 Mar07 Mar08 Mar09

Total share of capital 95.92 95.92 95.92 95.92 95.92

Equity share capital 95.92 95.92 95.92 95.92 95.92

Share application funds 0 0 0 0 0

Preference share capital 0 0 0 0 0

Reserves 476.30 526.36 648.16 832.58 998.55

Revaluation reserves 0 0 0 0 0

Net worth 572.22 622.28 744.08 928.50 1094.47

Secured loans 28.37 31.88 66.90 36.70 24.59

Unsecured loans 36.68 40.70 40.70 40.70 40.70

Total debt 65.05 72.58 107.60 77.40 65.29

Total liabilities 637.27 694.80 851.68 1005.90 1159.76

Application of funds Mar05 Mar06 Mar07 Mar08 Mar09

Gross block 712.70 736.14 806.20 937.89 1116.393

Less: accumulated dep. 401.47 435.71 471.29 5.9.06 494.02

Net block 311.23 300.43 334.29 428.83 622.91

Capital work in progress 12.53 5.87 16.31 136.25 164.64

Investment 258.43 274.55 334.39 422.88 234.77

Inventories 330.79 348.79 434.07 538.97 546.71

Sundry debtors 148.96 185.11 235.96 251.91 311.02

Cash & bank 20.78 28.17 42.47 41.33 128.05

Total current asset 500.53 562.07 712.50 832.00 958.78

Loans and advances 96.67 123.78 156.69 203.00 186.37

Fixed deposits 0.26 0.21 0.02 0.02 0.21

Total CA, loans & advances 597.46 686.15 869.21 1035.22 1172.36

Deferred liabilities 0 0 0 0 0

Current liabilities 430.68 489.11 649.00 850.79 849.08

Provisions 111.70 107.29 54.15 166.49 185.84

Total CL & provisions 542.38 596.40 703.15 1017.28 1034.92

Net current assets 55.08 89.75 166.06 17.94 137.44

~ 45 ~

Miscellaneous expenses 0 24.26 0 0 0

Total assets 637.27 694.86 851.67 1005.90 1159.76

CHAPTER 6

RESEARCH METHODOLOGY

5.1 SAMPLE SIZE

The expectation level for each competency was calculated by means of a questionnaire

in which the plant manager, three senior managers, and the HR manager market their

market their expectation levels. Since the sample size is only 5, even one outlier could

impact the scores, but it assumed that this would be a serious defect since the five

managers mentioned above are very experienced and know everything with respect to

the Rohtak plant.

5.2UNIVERSE

~ 46 ~

The actual level was calculated by another questionnaire in which each

department manager had a rate of sample of their department subordinates

(Officers and technicians) on the desired competencies. It is assumed that the

rating was done fairly by the managers.

Recruitment tool pointed out some candidate as average but the company has

employed them due to shop floor pressure.

5.3TOOLS OF DATA COLLECTION

1. Interviews

This method consists of conduction interviews with the jobholders and

understanding their duties and functions. Further interviews could be conduct

with the superior in order to validate the inputs given by the job holder.

2. JOB OBSERVATION

This method is also known as shadowing. In this method, the person preparing

the job description would shadow or follow the job holder for a whole day or two

and understand the duties performed by time.

3. JOB QUESTIONNAIRE

In this method, the job holders complete a comprehensive questionnaire and

return it to the analyst. In case the management decides not to involve employee

in preparation of their own description, the questionnaire is completed by the

supervisor rather than the employee.

The methodology used in this project is the interview method. A series of

interview were conducted with the various job holders for whom the description

are being prepared. The similar interviews were conducted with their immediate

supervisor. Based on these inputs a rough draft was prepared and submitted to

the respective department manager for approval, reason behind this,

~ 47 ~

The observation or shadowing method is very time consuming and it

would take at least a week to complete one department exhaustively.

The questionnaire method was initially adopted but could not be continued

English and it did not seem feasible to translate the questionnaire into the

vernacular language.

~ 48 ~

CHAPTER 7

ANALYSIS

The asianpaints are biggest paints company and its 6 manufacturing plants in India here

only the Rohtak Plant observation and findings are showing by me. The above thins are

related to job observation and CSR are analyzed by from some interviews with job

holders and society members.

Interviews with employees

All the data which is collected by me is taken with the interviews with the employees. In

this analysis I interact with the every department employees and find their duties and

job areas. The data which is collected by me I show to whom and take the personal

suggestion and duties which is missed by me and do the corrections in that.

Interviews with the supervisor

In this analysis I meet to the supervisor of concern department and show the data and

activities which are collected by me and the employee gave me. The supervisor is look

up this and find his job observation and campantancies, and after that make a final

report of that observation and findings which is collected me and analyzed those and

take the permission and approval of that report for project matter.

Interviews with the society and companies

This project is on corporate social responsibilities so I collect the different data of

different companies. So for that the data which is collected by me I make that sure I

interact with the Two companies and call to other companies and find the necessity of

CSR in the society that the asianpaints what can do for them and give the final report to

the company.

~ 49 ~

Inputs from CSR net surfing’s and [MF] [MFG][10]

It is the master file of the company which is found on the “omnidocs”. It is the

company official software. In this software total 22 manual like production, training,

manufacturing, packing, HR, Accounts, administrative ……. , manuals.

Final consolidation

After analyzed all the data A final report prepare by me and show that to the function

manager and take the approval of that report and submitted this to whom.

Focus on CSR Knowledge

The number (And percentage) of papers by the categories of research focus are

presented in table 1 the data indicate that, confirming our expectations, articles focusing

on environmental and ethical subjects dominate CSR research in Management

accounting for 36 and 31 per cent of the articles respectively. The remaining categories-

Stakeholders and social, account for 18 and 15 percent of the papers respectively.

Arguably, this reflects the relatively more developed status of the environmental and

ethical subjects in their orientation to ecological science philosophy respectively, as well

as their status as management issues.

~ 50 ~

CHPTER 8

OBSERVATION AND RECOMMENDATION

7.1 OBSERVATION

1. Recruitment process is very lengthy. Candidates who are come for selection,

they pass a set of interviews. There are three round of interviews are taken in the

asianpaints selection process. One is HR interview, second is technical interview

which is taken by the department senior manager or manager, and the last

interview is taken by the plant head.

2. The question paper for interviews is very outdated and old, people who have

come for interview, many people witness that earlier than they reattempt the

paper yet again.

3. The asianpaints is largest paint company so the corporate social responsibilities

is show high and it follow so a lot of CSR activities, but the asianpaints Rohtak

plant are not put in order more CSR activities, it developed only environmental,

health and safety program and it reelection for future additional CSR activities for

the social order and atmosphere.

4. Competency Mapping

The gap between the technician and officer level is good. Here the standard level

and the actual scores are very high. All the technician and officers are high

skilled and they gives the better productivity. Gap between that is as like the

standard stability of the employee is 2.5 but the actual stability is 3.2. Here 2.5 of

standard level is keep by me and analyzed by fulfilling the questionnaire. Some

standard and actual competency is here are showing:

~ 51 ~

stabilit

y

flexibiity

technica

l exp

erien

ce

communica

tiion skills

0

0.5

1

1.5

2

2.5

3

3.5

4

standard levelactual score

Competency name Standard level Actual score

Stability 2.5 3.24

Flexibility 3.2 3.67

Technical experience 3 3.85

Communication skills 3.5 3.65

7.2 RECOMMENDATION

1. Interview procedure is completed in three rounds HR, Technician & plant

manager would be taken in order of (HR, Technical & Technical & plant head).

Because of the Rohtak plant is newly established plant and there are need of the

employees is immense. When plat is fully established and the production

capacity is maximum than it may be follow again.

2. The training program which is organized by the HR department is organized after

completing the work time of employees cause of this employees are not stand

and they can’t take the training and not developed his workability and skills.

3. The asianpaints can provide technical training for the local ITI and polytechnics

for increasing their self development and their abilities.

~ 52 ~

OBJECTIVES

1. Quality related

The asianpaints provide products and services that meet stated standard

on time, every time.

They shall continually improve processes to understand changing customer

needs and preferences and use the same as input for periodically

reviewing and revising performance standard of their products and

services.

They accept zero defects as a quality absolute, and shall design and

operate their quality system accordingly.

They shall organize their work practices to do a job right the first time,

every time.

They are committed to continual improvement in quality in all business

processes and shall track such improvement through measurable

indicators.

2. Health related

Comply with all applicable health safety statutory regulations.

Ensure zero accident and zero dangerous occurrences.

Accord the highest priority to health and safety of employees.

Adopt the asianpaints safety manual to achieve its health and safety

objectives.

Conduct risk assessment, safety audits/ inspections and take all remedial

measures to mitigate safety hazards, arising out of plant operations, within

and around the plant.

~ 53 ~

Maintain a comprehensive on site emergency plan and related facilities to

handle emergencies.

Ensure that all processes developed at the plant are safe to people plant

equipment and environment.

SCOPE

Asianpaints is the largest paint company.

Worldwide total /28 plant, including 6 manufacturing plant in India.

Asianpaints is leader in only DBU sector not in the GBU.

Asianpaints wants to become leader also in GBU sector. At present Kansai

Nerolac is market leader in the GBU sector.

Understand the overall performance and progress of the company.

It informs to customers about company progressive attitude towards customers.

~ 54 ~

JOB DESCRIPTION OF ASIAN PAINTS ROHTAK

1. POLYMER PRODUCTION BLOCK

Manager: Mr. Arjun Kumar

Designation: Production process officer – polymer block

Location: Polymer block

Reporting: Production Manager

Reportees: Production process technician – polymer block

General objectives: To ensure that the polymer batches are carried on as per

plan.

Duties

During the commissioning period inspecting the equipments installed by

the vendor ensure that it suits the production requirements.

During the commissioning period testing if the equipments is properly

functioning and the conformity exists between the equipments and the

DCS.

Producing the emulsion as per the production plan specified which must

confirm to the given quality norms.

Ensuring that adequate raw material is available for production.

Filling the issue slip and getting it approved by the admin, department to

receive the raw material.

Ensuring that raw material is stored at the appropriate temperature.

Verifying if the various utilities such a steam, cooled water and

compressed air are available for production.

Adopting quality check in process.

Producing the emulsion and transfer the product to the storage tanks.

~ 55 ~

Deciding the preventive maintenance and shut down period of the

machines.

Entering the appropriate SAP entries based on the production in case of

semi automated batches and monitoring process and material transaction

while running batches in auto mode through MES.

Planning the shift for the technicians.

Training and guiding the technicians.

Ensuring visual control in the premises.

2. PACKING DEPARTMENT

Manager: Mr. Bir Singh

Designation: Planning officer

Reporting to: Planning manager

Reportees: None

General objectives: Ensure that the plant production processes are in

conformity with the central plan.

Duties

Generate daily reports on the production process and

Analysis the reports and decide the production for that day and the next

day.

Forward these daily reports to the Head office.

Ensure that the physical production record is confirming to the SAP entries

generated by the production department.

Ensure that sufficient emulsion and packing materials are available.

Maintain quality records for audit purposes [QR PRD07- performance

report & QR PRD 022 - schedules].

Send fortnightly reports to the central planning department regarding the

accomplishment of production targets.

~ 56 ~

Periodically attend meetings to decide the inventory plan and the required

production for the next quarter.

Once the plan is decide;

Analysis the plan according to capacity.

Prepare production if machines are idle.

Recruit more man power if necessary.

Decide on the man days required.

Co-ordinate with the HR for the recruitment.

Circulate reports to all concerned people.

Verifying everyday whether the process is going on a planned.

Solve discrepancies.

State reasons for the discrepancies to the central planning

department.

Duties

For the Denester

Cutting the strips which bind the nested pails together.

Removing the separator (Cardboard sheet).

Placing the pails manually on the conveyor.

Ensuring that the handle sequence is appropriate.

Machine maintenance and trouble shooting.

Machine 5S.

For the Depalettiser

Cutting the strip manually.

Feeding the palettes into the machine.

Machine maintenance and trouble shooting.

Machine 5S.

Maintaining a detailed log book of daily activities.

~ 57 ~

Reading the shift report and understanding the current status of work.

Logging into the packing machine.

Ensuring that lids and containers are of the same vendor.

Ensuring that there are enough lids to continue packing without stoppage.

Logging in all problems encountered in the shift in the shit log book.

Ensuring that right stickers are picked and kept in the right pigeon hole.

Ensuring the shop floor stock of finished goods of minimum.

Ensuring return of excess packing material.

3. PRODUCTION DEPARTMENT

Manager: Mr. Rohit Mathur

Designation: Production technician

Location: WPB First floor (DCS control room)

Reporting to: Senior production officer

Reportees: None

General objectives: To ensure that the required raw material are transferred to

the processing stage and process is running smoothly

Shift activities

Logging into the DCS and MES system, reading the previous shifts reports

and understanding the problems logged in the DCS system for the

previous shift and keeping an eye on the problem for any report.

Releasing of the batches in MES in consultation with engineer to state the

batch as and when required.

Write the comments in the shift report and complete all ISO documents.

Monitoring the inventory level in silo, IBC pumping area, Day tanks, day

bins and inform it to the material technician.

~ 58 ~

Activities related to batch

Monitor the progress of bath an eye to alarms related to load cells and actuated

valves and take immediate against it.

Monitor raw material pigging cycle.

Acknowledge prompts from MES regarding in process checks and change of

status of TSD / Mixer/ Silo.

Take sample from TSD and check for proprieties like PH, finished etc. Do

necessary adjustment to adhere to the information. Ensure no batches goes for

extra grinding. Try to analyze the data and solve the problem.

Discharge the batch from TSD to mixers and complete pigging operation.

Check the cleaning of TSD after flushing / cleaning the TSD with retractable a

spraying gun. If it is not clean, use manual jet clean the TSD.

Transfer the TSD batch to respective mixer and then getting it thinned and

approved in coordination with quality technician.

Ensure samples from mixers and getting approved.

Ensure running of UV units, scrubber and dust collection system.

Develop TBT training material & give effective tool box talk.

Induct new content by planning & imparting on the job training.

4. ENVIORNMENTAL HEALTH AND SAFETY DEPARTMENT

Manager: Mr. Sandeep Srivastava

~ 59 ~

Designation: Officer – environment cell

Location: EHS block

Reporting to: Manager – environment cell

Reportees: Technician – environment cell

General objectives: Ensuring that effluents from all departments are analyzed

on various parameters and ensuring that the treated water is free of harmful

chemicals.

Duties:

Ensuring the implementation of good housekeeping practices in ETP and scrap

yard and implementing 5S practice.

Instructing the incinerator operators about the batches to be taken through the

incinerator.

Ensuring that the required equipment is available to all ETP and inclinators

operators and issuing proper PPE to contract workman employed in

ETP/Hazardous scrap yard barrel cleaning area.

Sending the ETP performance report to all concerned manger in the plant on a

daily basis.

Ensuring the regular updating of the scrap register, and ETP and incinerators log

sheets.

Issuing manifest to the scrap material lifted every day.

Ensuring the movement of the sludge barrels regularly to the incinerators without

spillage.

Monitoring and maintaining waste barrel yard & barrel cleaning operations.

Conducting monthly environment meeting with various departments.

Co-coordination with various departments for compliance of EMS.

Controlling effluent and waste generation throughout the plant.

Sending the following report to HO(head office).

5. SATANDARDIZATION DEPARMENT

~ 60 ~

Manager: Mr. Ankur Gupta

Designation: standardization officer

Locations: process engineering lab

Reporting to: standardization manager

Duties

Downloading the recipe from the optiva system and uploading into the PLM.

Transferring the recipe from PLM to SAP.

Deciding the different phases of raw materials and how the materials are to be

introduced into the process and deciding the process sequence.

Generating standardization process order.

Planning of the lab bathes.

Making arrangement fro the materials.

Calculating the recipe factor.

Ensuring that all material is weighted accurately and exactly.

Monitoring the batches and ensuring that all the parameters are uniformly

maintained.

Conducting the process checks (film test, coloring test, smoothness test etc.)

After completion making sure that all the equipments are cleaned.

Conducting the necessary minimum controls test in the lab.

If the batch fails, studying the causes of failure and troubleshooting.

If some adjustment can be made to salvage the failed bathes, carrying out the

same.

Preparing the batch records.

Maintaining the raw material status sheet order to replenish the raw materials

stocks.

Preparing the standardization report for purpose of gate meeting.

Coordinating with the MES team to Standardizes the MES system.

Planning the plant route assignment in the PLM.

~ 61 ~

Technician level

Bringing the raw material manually.

Weighting the raw materials according to the recipe and charging if into the

TSD/reactor.

Carrying out the batch as instructed by the standardization officer.

Conducting in the process checks and getting in verified by the standardization

officer.

After discharging the batch , cleaning of TSD.

Ensuring that any spillage on the work floor is cleaned.

Updating the raw material quantities in the raw material status sheet.

Autonomous maintenance pf the equipment and ensuring 5S.

Handling any other expectation that may arise.

Maintaining detailed log book of day activities.

6. QUALITY OF ASSURANCE DEPARTMENT

Manager: Mr. P. Sunil

Designation: RM and emulsion quality officer

Location: raw material lab

Report to: quality manger

Reportees: RM lab technicians

General objective: ensuring that raw material quality and conducting audits.

Duties

Preparing daily inspection status report.

~ 62 ~

Preparing pending material status report.

Supervising the sampling process and guidance the technicians wherever

necessary.

Conducting frequent audits in raw material Godown, Tank farm, barrel Godown I

and barrel Godown 2.

Making appropriate entries in SAP regarding material discharge.

Assigning inspection plan.

Training the technicians.

Auditing of emulsion batch processing.

In case the material rejected, supervising the joint testing process.

Maintaining a record of instrument calibration and maintenance.

Ensuring that appropriate safety measure are tested every week .

7. MATERIAL DEPARMENT

Manager: Mr. Alok Dhar

Designation: powder RM unloading & storage technician

Location: Raw material Godown

Reporting to: diploma officer RMG

Reportees: None

General objective: to ensure that the power raw material are properly unloaded and

stored.

Duties:

~ 63 ~

Affixing the good received stamp on the lorry receipt the unloading is done. In

case vehicle detention essential, It has to be brought to the notice of the officer

and the reasons conveyed.

Deciding location allocation (which material to be arrange where)

Forwarding a sample to QA to verify the quality and accept or reject the material

accordingly.

Tagging the power bags with identification levels containing the details as

follows:

Material code

Material name

Material description

Gate entry

Received date

Approval status sticker (green – approved, red – rejected, yellow – in

process).

Supervising of loading the rejected material and the empty bags on the Lorries.

Troubleshooting any issues which may with the hoist and the dock.

Assisting and overseeing the silo charging function, in case the technician in

charge is on leave.

Maintaining 5S in work place.

Training and supervising the contract labor in the operation of hoist and dock

leveler.

Physical counting of RM during quarterly stock taking.

~ 64 ~

8. MAINTENANCE DEPARMENT

All the technician and officer level

Designation: electrician maintenance technician

Reporting to: Senior officer – technician

Reportees: None

General objective: to manually troubleshooting any electrical problem which may arise

in the plant.

Duties

Switching on the DCS in the morning.

If DCS is not functioning, manually operating it.

If problem persist, taking it to the notice of the senior officer.

Verifying if any problem are pending in previous shift and rectifying them

Handling if any problem such as panel control problem, short circuits, control wire

problems, contactor overload, drive VFD etc.

Verifying if the entire instrument is in good condition and taking measure to

replace the faulty ones.

Monitoring and maintaining the power consumption.

Maintaining plant power factor.

Maintaining all utilities equipments from electrical aspect.

Taking care of equipment preventing maintenance.

Maintaining 5S.

~ 65 ~

QUESTIONAIRE

This questionnaire will help me to think on my project work efforts towards responsible

entrepreneurship be raising questions on the possible ways. I could improve my project

work successfully and sensible manner. The questionnaire will also help me to indentify

further actions which were taken by me to strengthen in completion of my project and its

performance.

In the questionnaire there are no rights or wrong answers rather the questions should

prompt consideration of actions which were taken. Here some types of questionnaire

are showing by me:-

1. WORKING QUESTIONNAIRE

2. ENVIRONMENTAL QUESTIONNAIRE

3. COMMUNITIES QUESTIONNAIRE

4. COMPANY QUESTIONNAIRE

~ 66 ~

1. WORKPLACE QUESTIONNAIRE

1. Do you encourage your employees to develop real skills and long term

carriers (e.g. via a performance appraisal process, training plan)?

Yes □ No □ In part □ Don’t know □ Not applicable □

2. Do you consult with employees on important issues?

Yes □ No □ In part □ Don’t know □ Not applicable □

3. Does your enterprise have suitable arrangements for health, safety and

welfare that provide sufficient protection for your employees?

Yes □ No □ In part □ Don’t know □ Not applicable □

4. Does your enterprise actively offer a good work life balance for its

employees, for example, by considering flexible working hours a allowing

employees to work from home?

Yes □ No □ In part □ Don’t know □ Not applicable □

2. ENVIORNMENTAL QUESTIONNAIRE

1. Have you tried to reduce your enterprise’s environmental impact in terms of energy conservation?Yes □ No □ In part □ Don’t know □ Not applicable □

2. Waste minimization and reclying?

Yes □ No □ In part □ Don’t know □ Not applicable □

~ 67 ~

3. Pollution prevention (e.g. emissions to air and water, efficient discharge, noise)?Yes □ No □ In part □ Don’t know □ Not applicable □

4. Protection of the natural environment?Yes □ No □ In part □ Don’t know □ Not applicable □

5. Sustainable transport options?Yes □ No □ In part □ Don’t know □ Not applicable □

6. Does your enterprise supply clear and accurate environmental information on its products, services and activities to customers, suppliers, local community, etc.?Yes □ No □ In part □ Don’t know □ Not applicable □

3. COMMUNITY QUESTIONNAIRE

1) Does your company offer training opportunities to people form the local community (e.g. apprenticeship of work experience for the young or for disadvantage groups)?Yes □ No □ In part □ Don’t know □ Not applicable □

2) Does your enterprise try to purchase locally?Yes □ No □ In part □ Don’t know □ Not applicable □

3) Are your employees encouraged to participate in local community activities (e.g. providing employee time and expertise, or other practical help)?Yes □ No □ In part □ Don’t know □ Not applicable □

4) Does your enterprise give regular financial support to local community activities and projects (e.g. charitable donations or sponsorship)?Yes □ No □ In part □ Don’t know □ Not applicable □

~ 68 ~

5) Do you have an dialogue with the local community on adverse, controversial or sensitive issues that involve your enterprise (e.g. accumulation of waste outside your premises, vehicles obstructing roads or footpath)?Yes □ No □ In part □ Don’t know □ Not applicable □

5. COMPANY QUESTIONNAIRE

I. Have you clearly defined your enterprise’s values and rules of conduct?Yes □ No □ In part □ Don’t know □ Not applicable □

II. Are your customers aware of your enterprise’s values of rules of conduct?

Yes □ No □ In part □ Don’t know □ Not applicable □

III. Are your employees aware of your enterprise’s values and rules of conduct?Yes □ No □ In part □ Don’t know □ Not applicable □

IV. Do you train employees on the importance of your enterprise’s values and rules of conduct?Yes □ No □ In part □ Don’t know □ Not applicable □

~ 69 ~

BIBILOGRAPHY

All the data and content which includes in this projects by is bring with a

small number of company website and company documents file name is

MASTER FILE in their all the data of the company and plan occupied.

www.mallenbaker.com [CONTENT OF CSR]

www.asianpaints.com

Master file of omnidocs

[MF] [MFG] [10] TRAINING MANUAL OF ASIAN PAINTS

[MF] [MFG] [15] HUMAN RESOURCE MANUAL OF ASIAN PAINTS

MAGAZINE OF ASIAN PAINTS

FINANCIAL REPORT OF ASIAN PAINTS

www.nestleindia.com

www.tatasteelindia.com

www.PGindia.com

All the departmental job description of asianpaints in this report is taken

by all the senior manager and employees of concern department, which is

strictly follows by me.

~ 70 ~

INDUSTRIAL PRODUCT PORTFOLIO

1. AUTOMATIVE COATINGS

A. OEM, Finishes (original equipment manufacturer)

Primer coat (Cathode electrode disposition ) Mostly polymer based (Intermediate coat) Acrylic or polyester based (Top cost)

B. Auto Refinishes

Deltron Range (Polyurethane based) Bilux Range (Polyurethane based) Apca Range (Nitro cellulose based) Aspa Range (Alkyd based)

2. POWER COATINGS

Apcoshield Range (Primary hybrid [epoxy polyester based products]) Hawcoplast Range (Primary hybrid [epoxy polyester based products])

3. PROTECTIVE COATINGS

Apcothane Range (PU based) Apcodur Range (Epoxy Based) Apcomin Range (Alkyd Range)

4. ROAD MARKING

Thermoline Range (BS 3262 specification [British standard]) Apcomark Range (MORT & H specification) [Ministry of Road transport and highways]

~ 71 ~