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Tata Group andAffirmative Action for

SC/ST communities

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Presentation sections

Introduction

Employment

Employability Entrepreneurship

Education

Conclusions

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Overview

Group initiative nearly 3 years old thoughcompany CSR activities and trusts workpredates this initiative Tata Steel tribal welfare/Tata Coffee staffing Trusts touch 3 million SC/ST population

Data in this review refers to India-based

operations of 56 Tata companies Incorporates almost all India operations

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Context

Starting point: PM call at 2006 CII session forvoluntary AA by Industry to ward off legislation

Today: No visible threat of legislation in this

Congress-led government but Nationally, renewed focus on tribal well-being in

context of land acquisition agitations and Maoist-led insurgency

Real reasons for AA remain: Inclusive growthand right thing to do

Last 12 months have been tough for business

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Three years of AA

Of 56 Tata companies, 47 have activeagendas on four Es

Slides following provide an overview ofbest practices among companies

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EMPLOYMENT

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Employment

Employee data from 49 companies

Mostly as of Sep 30 2009

Total employees: 245,342

Total SC+ST employees: 20,714 (8.4%) Did not declare: 50,517 (20.5%)

TCS 43,790 (45%), TTSL-M 1,165 (58%)

SC employees: 8,810 (3.6%) Steel 2,588, NDPL 675, IHCL 565, TBSS 522, TataAutoComp+ 519, Chemicals 454*, Trent 390

ST employees: 11,904 (4.8%) Coffee 7,444*, Steel 2,860, TACO+ 155, Ref. 148

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Employment

GCC-sanctioned AA policy: Positivediscrimination, merit being equal

Companies most engaged with AA have:

Boosted numbers by embedding AA into strategy forgrowth

Notably Trent and Tata Business Support Services

Embedded spirit of positive discrimination into

recruitment policies Incentivized recruiters to boost SC/ST numbers

Made voluntary quantified commitment to increasenumbers at recruitment and even promotions

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Employment: Notable examples

Trent: Steady increase through itsinvestment in training

246 last February/487 this Sept

Employing youth in large numbers from NGOstrained in retail trade by Trent

Tata Chemicals: Employment for 84 SC/ST

youth at Rural BPOs through UdayFoundation

Many more in training

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Employment

Tata Business Support Services

Increase from 374 in September 08 to 522a year later through opening 6 BPOs innon-metros in partnership with:

Tata Power Khopoli

Tata Steel Jamshedpur

Tata Chemicals Mithapur and Babrala

Also at Munnar with Kannan Devan and inEthakota with Byraju Foundation

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Employment

Tata Ryerson

Induction after training with contractor: 15taken last year, 15 in training

5 ITI-pass candidates taken in forcustomized training for Pantnagar

Providing 18 youth employment withcontractors after training as ambulancedrivers, first aid assistants

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Employment

Tata Capital

5 of 28 GTs recruited (18%) are from theSC/ST communities

Offered placement consultants apreferential rate of 3% extra for placingSC/ST candidates

Employed over 10% employees fromSC/ST communities for Housekeeping &Security Department

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Employment

TTSL initiatives:

Campus recruitment: 66 in last two years

Recruitment at entry level

Preference at COCO outlets Target 5%; Achievement as of November: 7.5%

NDPL initiatives:

5% relaxation for SC/ST candidates at recruitment

Preference for SC/ST candidates in departmentalcompetitive examinations

Total promotions in last 18 months 274; SC/ST 46 (17%)

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Employment

Tata Refractories:

Selection criteria relaxed for SC/ST candidates inrecruitment of fresh Graduate Engineers / Diploma

Engineers / ITI pass etc. Relaxation in minimum marks and height

requirement for eligibility for interview: but norelaxation in merit criteria for selection

Of 11 SC/ST candidates recruited this year, 6 werebeneficiaries of this relaxation

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Employment

Tata Power: Steady accretion in officerranks through trainees from campusrecruitment:

08-09: 10/137; all absorbed

09-10: 11/144

Tata Motors: 30 trainees from Sakwar

training school employed with dealers

Titan: Tie-up with CAP Foundation to trainyouth: first batch joined this year

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Employment

TTML: Sharp jump in SC/ST candidatesrecruited:

2008-09: 19/287 6.6%

April 09 Sept 09: 17/82 21%

Tinplate: 31 hires in 2008-09; 6 SC/ST

20% of all hires against SC/ST share of 8%

TCE: 700 trainees from campuses for FY 10 ofwhich 40 SC/ST

Tata Sky: 23 candidates recruited either on rollsor in third party from ITIs

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Employment

Challenges

More companies weaving AA into growthstrategy

Implementing spirit of positivediscrimination

Incentivizing recruitmentAddressing asymmetry of information

through website

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EMPLOYABILITY

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Employability

Partnering ITIs to make them Centres of

Excellence (Illustrative list): Tata Motors Nine 2 Pune, Jamshedpur, Lucknow,

Karnataka, 2 Uttarakhand, (Alreadyoperational) Delhi & Gujarat (Under consideration)

Tata International Tonkhurd, MP, near Dewas

Tata Power -- Two, in Thane & Mulund

NDPL- Dr CV Raman ITI in Delhi

Tata Chemicals Dwarka Indian Hotels Three ongoing -- in Delhi, Sindhudurg

& Hassan; three on the anvil Tata Steel Gopalpur and two others proposed Tata Metaliks Rangamati and Jhargram

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Employability

Tata Refractories

Self Employment Skill Development Institute(SESDI) set up April 09 (Cost Rs. 1.6 Cr) for

vocational training in in-demand trades likeMasonry, Carpentry, Bar Bending, Plumbing,House Wiring & Motor Rewinding, Welding, TV &Electronics repairing, Mobile repairing etc.

Residential course entirely free

95 trained till date, 47 SC/ST

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Employability

Tata Steel:

6-month course for entry into trade apprenticeschemes in various companies

260 trained since 2001, 103 placed in Steel, Motors etc 6-month scheme for coaching for competitive

exams

42 trained in two batches; 5 Govt jobs, 5 contractual

1 year course for community health providers 212 women trained since 2004; 50 employed

10 best CHP trainees trained for one year more to becomeOperation Theatre assistants

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Employability

Tata Steel:

Nurses training at XITE to prepare foradmission into nursing

Started 08; 24 coached, 20 selected

Vocational training in six trades

Started 2001; 325 trained

Vocational training in 4 trades atGreenfield project sites in Kalinganagar

Also at Chhatisgarh and Manoharpur

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Employability

JUSCO: Training school drop-outs inassociation with CAP Foundation forcareers in five trades: IT-enabled services,

Hospitality Management, CustomerRelations and Sales, AutomobileMaintenance and White Goods Services

Total trainees 823; SC/ST 221 (26%) Eight batches completed till date

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Employability

Tinplate vocational training initiatives:

11 students in CNC at RD Tata Institute

16 students in plumbing at SarojiniTechnical Institute

One year training for 181 ITI candidates

Midwifery training for tribal women Training for tribal women at SalboniVillage

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Employability

Tata Sponge

Training for Fitter, Welder, Mechanical &wiremen trade for 7 SC/ST students

6-month tailoring classes

Sponsorship for two-year course in

Electrician trade for 4 ST students at threenearby ITIs

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Employability

Trent: One-year diploma customized course in retail

management for graduates at Mumbai

University (Garware Institute) Ist batch; 67/18 SC-ST, all employed

2nd batch; 60/ 10 SC-ST, all employed

3rd batch: 25/7 SC-ST

Pact with 6 major NGOs --Don Bosco,Kherwadi Social Welfare Association, Dr.Reddys Foundation, Yuva Pratisthan,

Aarambh and Kotak Labs -- to train 200

underprivileged youth in Retail Operations

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Employability

Tata Chemicals:

Babrala unit recognised as training providerby DGET; has trained 236 youth in 5 trades

Training 550 SC/ST youth to man rural BPOexpansion in Mithapur & Babrala

Tata Projects: Training to create welders

and fitters: 261 trained in last three years Tata Communications: Skill training in IT-

related fields for 105 SC/ST youth

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Employability

Telcon: Coaching classes for competitiveexams 85 trained in three batches since 2007

Also: Setting up 3 training schools foroperators and mechanics at units 50% reservation for SC/ST candidates

Tata Motors: Mechanic Motor VehicleTrade Course at Sakwar, Thane Batch of around 15 each year

Tata International: Over 200 SC/ST tradeapprentices in last two years

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Employability

TCS: 57 trained in three batches in SkillDevelopment Programme in partnershipwith CII in Kolkata

Indian Hotels: Taj-Pratham tie-up for HotelOperations Training Center set up in Khultabad,near Aurangabad (SC/ST pop. 35%) 160 youth to be trained per year, currently 40 youth

in training One batch of 20 students has passed out and is

placed in various western region Taj hotels

Rallis: Training youth to join rural BPOs

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Employability

Advinus: To address quality gap, hasstarted a Finishing School for life sciencesgraduates. 25 students (5 SC) being

trained for 6 months.

Mjunction: Ejunction to spread computerand internet literacy

13 batches since March 07

580 trained, including 81 SC/ST youth

14% SC/ST against target of 25%

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Employability

Challenges

Increase SC/ST numbers within vocationaltraining programmes

Scale up numbers and trades

Synergise company initiatives

Aggregate numbers and spend Monitor and improve placement

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ENTREPRENEURSHIP

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Entrepreneurship:

Notable examples

NDPL :Sustained effort to develop vendorsfrom Dalit Vyapar Association4 vendors included in vendors listOf 4, one showed interest and metbasic requirements and has beengiven order

Training neighbourhood electricians34 trained over two years

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Entrepreneurship

Tata Communications: 183 trained inentrepreneurship in partnership with EDI,

Ahmedabad

Batches of 30 each in courses held in Mumbai,Pune, Ahmedabad, Nashik, Surat & Lonavla

Of 161 candidates who have completed

training, 58 have already started their ownventures

Among candidates in first three modules,~60% are already entrepreneurs

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Entrepreneurship

Tata Chemicals

224 SC candidates trained in year-longtraining in Rural EntrepreneurshipDevelopment Programme on trades likecreating leather and Rexene bags, makingsoft toys, paper items and lamination 100 trained in making Rexene bags; 50 created

cluster fund from stipend to create TCSRD-REDPsfirst business enterprise named Dr.BhimraoAmbedkar Cluster and got its first order for 1700

school bags

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Entrepreneurship

Tata Sponge 2 SC/ST entrepreneurs nurtured through

contracts since April 07 Both partnerships one with 4 ST members and

other with 2 SC members Now getting orders from other industrial units 1 more entrepreneur being developed

SHG for farming with power tiller

SHG for supplying notebooks Training for income-generating schemes in

pisciculture, soap-making etc

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Entrepreneurship

TTSL: Objective: 200 SC/ST PCO owners peryear, starting 2008 Status: 317 given in 2008-09; 83 in 2009-10 till now

Tata International: Support for 120 women

SHGs for training on SOW (Stitch onWood)/Leather Articles and Leather FootwearComponents to make them self employed

TTML: 18 youth provided with PCO booths

Voltas: 7 SC/ST youth trained as entrepreneursin house-keeping/gardening

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Entrepreneurship

Tinplate: Two ex-employees made intovendors; Trust set up to create ST makersof brick from fly ash

Tata Power: Contracts to ST contractors inMaithon

Tata Ryerson: Two SC/ST candidatesengaged as suppliers for packaging andother miscellaneous jobs

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EDUCATION

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Education: FAEA scholarships

150 scholarships from 32 Groupcompanies for college-level scholarshipsadministered by Foundation for Academic

Access and Excellence (FAEA) 10 each: TTSL, NDPL, TACO+, Tata Tea

5 each: Tata Power, TCS, Tata Sky, Tata

Projects and TAL Started with 100 last year; increased to 150

this year when corpus was found in surplus

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Education

34 companies have 2,000+ scholarshipsfor SC/ST students at school/college level

Tata Steel: Scholarships for ~600 SC/ST

students in 4 categoriesAlso 100% scholarship for SC/ST employees

children studying in in IIT

Trainees in Archery and other sports Tata Motors: 150+ scholarships

Most in new scheme, Vidyadhanam, in Pune

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Education

NDPL initiatives

Scholarships of Rs 25,000 p.a. for students ofDelhi College of Engineering

Scholarships for Rs 2,600 p.a. for students atfour ITIs

Supporting 150+ SC/ST students in

government schools with books, careercounselling etc

Of 2008-09 batch nobody failed; 30% got >70 %

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Education

Tata Chemicals: 100 scholarships for SCgirls from villages around Mithapur forcourses in SNDT University, Mumbai

TTSL: Several initiatives including:

6 scholarships of Rs 75,000 per annum forstudents at Symbiosis Institute of Telecom

Management 1 scholarship of Rs 25,000 pa for student at

National Law College, Bhopal

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Education

Tata Sponge: Several initiatives including:

Sponsorship of fees for teachers takingspecial classes for SC/ST students

Support for students studying engineering,computer science

TTSL (M): 8 scholarships worth Rs.10,000

per SC/ST student of B.E. (Electronics &Telecommunication) course

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Conclusion: Way ahead

Greater need for appreciating why AAneeds to be done in companies own long-term interest of sustained (inclusive)

growthAlternative: Legislation for reservations in

private sector

More CEOs need to take leadership role;more HR departments to own AA

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Conclusion: Way ahead

Incorporation into company strategies

Alignment/incorporation into TBEM

Evolve system of recognition forcompanies demonstrating leadership

Greater traction by companies intranslating the GCCs AA Policy into actual

practices in recruitment and in appointingvendors/suppliers

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Conclusion: Way ahead

Leverage Chairmans views on voluntarycommitment to sourcing certainpercentage of products and services from

SC/ST-owned companies, on lines of USAA practices

Overall: Robust start within Group but

long way to go