Bharati Vidyapeeths Institute of Management Studies & Research A PROJECT REPORT ON

Monorail Project Planning

Summer Internship Report submitted to the University of Mumbai In Partial Fulfillment for the award of Degree of

Post Graduate Diploma In Business Management

By Shrikant Laxman Mengudle (Roll No.10 IT)

Batch: 2012 -14

For The Summer Internship at

Larsen & Toubro Limited (L&T)A project report on

WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIRCONDITIONING AND REFRIGERATION WAREHOUSE

TOWARDS FULFILLMENT OF THE REQUIREMENTSOF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT SUBMITTED BYRAHUL IYER PGDBM IMSR - ROLL NO: 15BATCH 2012-14

UNDER THE GUIDANCE OF

PROF. Raman k. SailyBHARATI VIDYAPEETH INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, BELAPURCERTIFICATE

This is to certify that the project report titled WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIRCONDITIONING AND REFRIGERATION WAREHOUSE is a successfully done by Rahul Iyer in partial fulfillment of Post Graduate Diploma Business Management under the Bharati Vidyapeeths during the academic year 2012-2014 through Bharati Vidyapeeths Institute of Management & Information Technology, Navi Muumbai.

Date:- Place:-

Prof. Raman K Saily Dr. D. Y. Patil (Project Guide) (Director)

ACKNOWLEDGEMENT

I express my sincere thanks and gratitude to my project guide Prof. Raman K Saily, Bharti Vidyapeeths Institute of Management Studies and Research for his invaluable suggestions and guidance.

I m grateful to my project guide Mr. Mihir Pai , Assistant HR Executive at VOLTAS LTD and to all staff members of the Plant. The project could not have been completed without their kind hearted help.

Also, I would like to express my sincere thanks to the computer lab and library staff for the help extended in completion of this project.

I had a wonderful learning experience while preparing this project on WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIRCONDITIONING AND REFRIGERATION WAREHOUSE I am grateful to all the people who spared their valuable time; without which this report would have not been possible.

RAHUL IYER

DECLARATION

I hereby declare that the project titled WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIRCONDITIONING AND REFRIGERATION WAREHOUSE is an original piece of research work carried out by me under the guidance and supervision of Prof. Raman k Saily. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of post graduate diploma in business management of Mumbai University.

Place: Navi mumbai

Date: RAHUL IYER

EXECUTIVE SUMMARYThe summer internship program was completed at VOLTAS Limited, under the UPBG (unitary products business group department). During the internship the project WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIT CONDITIONING AND REFRIGERATION WAREHOUSE was taken up.The first part of the project deals with the introduction of the FMCD (fast moving consumer durables industry).The next chapter deals with the research methodology used for doing the research followed by the researcher.From this study I would be able to know whether the labor laws with respect to working conditions, welfare and contract labor management have been actually implemented or not.

LITERATURE REVIEW Contract labor act CHAPTER V WELFARE AND HEALTH OF CONTRACT LABOUR 16. Canteens.- (1) The appropriate Government may make rules requiring that in every establishment-- (a) To which this Act applies, (b) Wherein work requiring employment of contract labor is likely to continue for such period as may be prescribed, and (c) Wherein contract labor numbering one hundred or more is ordinarily employed by a contractor, one or more canteens shall be provided and maintained by the contractor for the use of such contract labor. (2) Without prejudice to the generality of the foregoing power, such rules may provide For-- (a) The date by which the canteens shall be provided; (b) The number of canteens that shall be provided, and the standards in respect of Construction, accommodation, furniture and other equipment of the canteens; and (c) The foodstuffs which may be served therein and the charges which may be made thereof. 17. Rest-rooms.- (1) In every place wherein contract labor is required to halt at night in connection with the work of an establishment-- (a) To which this Act applies, and (b) In which work requiring employment of contract labor is likely to continue for such period as may be prescribed, there shall be provided and maintained by the contractor for the use of the contract labor such number of rest-rooms or such other suitable alternative accommodation within such time as may be prescribed. (2) The rest rooms or the alternative accommodation to be provided under subsection (1) shall be sufficiently lighted and ventilated and shall be maintained in a clean and comfortable condition.

18. Other facilities.- It shall be the duty of every contractor employing contract labor in connection with the work of an establishment to which this Act applies, to provide and maintain-- (a) A sufficient supply of wholesome drinking water for the contract labor at convenient places; (b) A sufficient number of latrines and urinals of the prescribed types so situated as to be convenient and accessible to the contract labor in the establishment; and (c) Washing facilities. 19. First-aid facilities.- There shall be provided and maintained by the contractor so as to be readily accessible during all working hours a first-aid box equipped with the prescribed contents at every place where contract labor is employed by him. 20. Liability of principal employer in certain cases.- (1) If any amenity required to be provided under section 16, section 17, section 18 or section 19 for the benefit of the contract labor employed in an establishment is not provided by the contractor within the time prescribed thereof, such amenity shall be provided by the principal employer within such time as may be prescribed. (2) All expenses incurred by the principal employer in providing the amenity may be recovered by the principal employer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. 21. Responsibility for payment of wages.- (1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labor and such wages shall be paid before the expiry of such period as may be prescribed. (2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. (3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer.

The Bombay shops and establishment act CHAPTER VIII Health and Safety 39. Cleanliness.-The premises of every establishment shall be kept clean and free from effluvia arising from any drain or privy or other nuisance and shall be cleaned at such times and by such methods as may be prescribed. These methods may include lime washing, color washing, painting, varnishing, disinfection and deodorising. 40. Ventilation.-The premises of every establishment shall be ventilated in accordance with such standards and by such methods as may be prescribed. 41. Lighting.-(l) The premises of every establishment shall be sufficiently lighted during all working hours. (2) If it appears to an Inspector that the premises of any establishment within his jurisdiction are not sufficiently lighted, he may serve on the employer an order in writing specifying the measures which in his opinion should be adopted and requiring them to be carried out before a specified date. 42. Precautions against fire.-In every establishment except such establishment or class of establishments as may be prescribed, such precautions against fire shall be taken as may be prescribed. ^[42-A. First-Aid.-In every establishment wherein a manufacturing process as defined in clause (k) of section 2 of the Factories Act, 1948, (LXIII of 1948) is carried on, there shall be provided and maintained a first-aid box containing such articles as may be prescribed.]

Chapter-1 Introduction to the Project

1.1 Title of the project:WORKING CONDITIONS, WELFARE AND CONTRACT LABOR MANAGEMENT AT AIRCONDITIONING AND REFRIGERATION WAREHOUSE

1.2 Objectives of the Study: To study and create the working conditions.

To study and create the welfare practices.

1.3 Scope of the study The study is limited to the warehouse no. 165 located at MANKOLI NAKA, BHIWANDI. The study is applicable to all refrigeration warehouses with similar conditions.

CHAPTER 1- INTRODUCTION TO INDUSTRY

Indian Consumer durables market used to be dominated by few domestic players like Godrej,Voltas,AllwynandKelvinator.Butpostliberalizationmanyforeign companieshaveenteredintoIndianmarketdethroningtheIndianplayerand dominating Indian market the major categories in the market REFRIGRATOR, AIRCONDTIONERS AND WATER COOLERS. IndiabeingthesecondlargestgrowingeconomywithhugeConsumer classhas resultedinconsumerdurablesasthefastestgrowingindustriesinIndia.LG&SAMSUNGthetwoKoreancompanieshavebeenmaintainingtheleadinthe industries with LG being leader in almost allthe categories. Consumer durables major Voltas Limited will invest nearly Rs 500 crore in India this year in research and development, brand-building and other marketing initiatives. The company, having a turnover of Rs 500 crore and market share of 17 per cent, is investing Rs500 croreonbrand-building andother marketinginitiativesand around Rs500 croreonresearchanddevelopment,besideslaunching newplatformsin information technology and related areas, Today, these players control the majorshare of the consumerdurables market.Consumer durables market is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as manyforeign players are entering in the market. With the increase in income levels, easy availability of finance, increase in consumerawareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longerconsidered luxury items. Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. MNC'smajortarget isthe growing middleclassofIndia. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brand name, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India & there is a yet a huge untapped rural market waiting to be exploited.

Air Conditioner IndustryThanks to the fabled Indian middle-class, the air-conditioner market is hooting up. An inordinately hot summer has convinced the people the comfort of an air-conditioner and a large number appears to have decided to take one home this year. Indeed, in the last few the years, the demand for air-conditioners from the household sector has been growing rapidly. Still, the demand growth is particularly noticeable, and was also the most significant change in the industry during this period.According to some industry estimates, growth in volume terms has been 45-50 per cent this fiscal. But official statistics underestimate this and even report a decline in production. Nevertheless, by all accounts, including a study by the Confederation of Indian Industry (CII), there has been a noticeable jump in the demand for air-conditioners from the household segment. After several years of relatively modest growth, which was totally at variance with the latent potential of the product, the sharp growth in demand the summer past was very welcome for air-conditioner companies in many respects. One, it relatively reduced their dependence on the corporate sector which is still the major demand driver. Corporate traditionally accounted for about 60 per cent of the total demand for air-conditioners. But the burgeoning demand from the household segment could level the ratio in the near future.One of the significant factors influencing the fortunes of the industry is the taxation structure. The industry has come a long way from the time when the excise duty structure favored only the unorganized sector. The steady fall in the excise rate in the 1990s helped the organized sector cope with the competition from the unorganized sector on more favorable terms. Still, the unorganized sector continues to meet a sizeable proportion of the demand for non-ducted products.There was a significant change in the excise duty structure in 2000. The rate was raised from 30 per cent to 32 per cent and this was expected to adversely impact the industry. However, the shift to a maximum retail price based system for the levy of excise appears to have helped the manufacturers. In the MRP-based system, an abatement of around 40 per cent was provided. This ensured that the impact of the increase in excise was minimal if not positive. Another major fiscal change is the removal of quantitative restrictions on imports. Imports are, however, not all that competitive considering the Customs duty structure. An import duty of 44 per cent along with a countervailing duty, which is equivalent to the excise duty, is a large enough protection for the domestic companies.

1) ProductThere are mainly five types of air conditioner:Window mountedThese are air conditioners that are usually fixed through the windows, which havebeen designed typically for double hung windows. And it is one of the most commonly used air conditioners as this is best for cooling a single room for the simple reason that these are easy to install, cheaper and works with almost all the wiring system of your home. The price range varies from Rs. 12,000 to Rs. 27, 000 on an average for room size the range varies from 10 meter square- 84 meter square

Split Air conditionerIs best suited for rooms whose area is up to 60 meter square and might cost you (approx) around Rs.16,000 to Rs.35,000 on an average (multi-split system). It consists of two parts: the indoor unit which is also called as the evaporator unit and the outdoor unit which is known as the external condenser box and is installed outside the room or the building. And this is one main reason why most people opt for split ACs, as during the operation, it doesnt make any noise which might distract your attention or annoy you. Split ACs are permanent systems which can either be installed at the floor level or on the walls or on the ceiling.

Cassette Air ConditionerThese are usually fixed into the sealing. This ultra thin air conditioner can be installed in any narrow ceiling. These are usually fit in places where it is not possible to fit either a Window or Split Air conditioner. The price range varies from Rs. 68,500 to Rs. 86,500on an average

Slimline Air ConditionerIt has been one of the most popular types for certain reasons. One major reason is that they can be easily moved from one room to the other and is often referred to as a mobile air conditioner. Being portable, it is easier to store when the summer season wears off. It is best suited for smaller rooms and for those people who moves their houses very frequently. The only minus point is that they are quite expensive and the exhaust tube needs to be fitted each time. It has a separate indoor and outdoor section. It is recommended for rooms whose area is up to 35 meter square.

Ductable Split Air ConditionersDuctable air conditioners are those that are used to condition more than one room, in the same building. These kind of air conditioners are usually seen in institutions, big organizations, hotels etc. Ductables comes in different tonnages depending upon the space needed to be cooled. The prices of ductables vary depending upon the tonnage. Out of all the above mentioned air conditions the maximum selling would be the Split air conditioners .Though window a/c will cost less and is easier to install. The downside is you will lose your view through the window and you will have more air leakage than a split unit. A window unit will be less efficient than the split also a slit a/c is much quieter than a window a/c. The split unit will add more value to the home and will be quieter.

Chapter 2-INTRODUCTION TO THE COMPANY

Voltas Limited is a Public Limited Rs 2500 cr. multi divisional company, engaged in the air conditioning and engineering business. It was incorporated on 6th September1954. Tata Sons Ltd and Volkart Brothers, a Swiss Company operating in India since1851, promoted this company and hence the name VOLTAS. Voltas, A Tata Group Company is India's premier air conditioning and engineering services provider. It provides engineering solutions for a wide spectrum of industries inareas suchasheating,ventilationandairconditioning,refrigeration,climatecontrol,electromechanicalprojects,textilemachinery,machinetools,miningand construction, materials handling, water management, building management systems,pollutioncontrolandchemicals.Voltashavecapabilityinthemanufactureofroom/split air conditioners, industrial air conditioning and refrigeration equipment,watercoolers, refrigerators,freezers,forklifttrucksandlarge watersupplypumps.Alltheseproductsbearthestampofstate-of-the artautomated manufacturing plantsresultinginconsistentlyhighquality inconsistentlyhighqualityandreducedcosts.CompanyispartneredwithinternationalcompaniessuchasLGElectronicsand Samsung of Korea and Fedders International of USA for'manufacture only'alliancesproducing low cost, high quality refrigerators and room airconditioners. The companys promoters, Tata Sons hold around 28 per cent of the shares in the company. Foreign investors and the public hold around 21 per cent share each, while domestic financial institutions and non-promoter corporates hold the balance. Voltas has recently gone through a comprehensive restructuring exercise, aimed atbringing the core to thefore. This exercise, conducted between 1997-1998 and 2001-2002, comprised of redefining the business focus ofVoltas as being an engineering services company. Accordingly it involved reorganizing thecompanysbusinessportfolio, exiting non-core businesses and exploiting unproductive assets to generate revenues, right sizing the organization through focused voluntary retirement schemes, aggressive cost cutting and financial re-engineering

4.2 Mission: Voltas is determined to strengthen our position in exiting geographical locations and focus to rapidly expand our business into selected new overseas markets in the field of Electrical and Mechanical and related projects by offering high quality, cost effective project management and engineering services to meet the requirements of our valuable customer. Their mission also includes: Minimizing wasteful energy consumption in their branded products Forming representations and alliances with global technology leaders who also follow a Green path Offering and encouraging the use of technologies that purify the air, lower energy costs, and purify polluted water and industrial/urban effluents. Following the most stringent practices of eco-friendliness, sustainability and safety in their manufacturing operations.

4.3 Megavol Voltas Vision :

In 2006, Voltas went through a major envisioning exercise facilitated by the Boston Consultancy Group (BCG), which involved participation of Voltasites across the board. The resultant Megavol Voltas Vision of 10 k @ 10 by 10 (turnover of Rs. 10,000Cr. at 10% profit by 2010-11) expired in 2010-11. (UPBG was the only division in Voltas to achieve its Vision Rs. 1,600 Cr.).The Company then formulated a new vision Engineering solutions for a greener tomorrow for growth over the next 5 years.The new vision, unveiled in Nov 2010, underscores the commitment of the Company to a sustainable future. The UPBG VMV aim at market leadership and are aligned to ESGT. In addition, a detailed brand extension study was carried out to determine possible extensions of the Voltas brand in the consumer space that emphasized the pre-eminence of the brand in the coolingspace. A fresh Brand Equity research is now in progress to study possible makeover of the brand and identify product segments in adjacent cooling/heating space. Even as these initiatives evolve, UPBG continues on its journey to grow its market place position and market share in its current business through a series of aligned strategic initiatives and objectives.Long-term projections are currently based on the industry outlook, projected competitor performance and internal aspirations.

COMPANY PROFILE

1) Organization

UNITARY PRODUCTS BUSINESS GROUP

Voltas Limited was incorporated in 1954 by its joint promoters TATA Group and Volkart Brothers, a Swiss trading company.It has its registered and corporate offices in Mumbai, and is organized into three business clusters:

1. Unitary Products Business Group (UPBG)

2. Electro-Mechanical Projects & Services

3. Engineering Products

These clusters are supported by common services comprising Finance, Commercial & Risk management, HR, Administration, Legal, Corporate Planning, Corporate Communication, Business Improvement Group, Property Development Cell, Company Secretariat, Internal Audit and IT (outsourced to TCS). This Application is for the assessment of UPBG and includes Universal Comforts Products Limited (UCPL) a 100% subsidiary of Voltas Ltd. in existence exclusively for the manufacturing of air Conditioners for the Unitary Products Business Group (UPBG).

AIR CONDITIONING BUSINESS:

UPBG has been in business since the inception of Voltas, under various names. It started by selling and servicing imported air conditioners. In 1966 it commenced manufacturing of ACs in its Thane Plant with technology acquired from CarrierTBEM 2011 Corporation, Syracuse, USA. Voltas Crystal was one of the few indigenous AC brands available at that time, and its technological superiority coupled with UPBGs marketing savvy team ensured a virtual monopoly in the organized sector.The Voltas brand became synonymous with air conditioning. However, punitive rates of excise duty (which peaked at 131.25% in the mid-eighties) attracted a large number of excise-exempt small-scale assemblers to jump into the fray and challenge UPBGs market dominance. UPBGs pioneering role in Indian AC&R Market is explained below. In the late eighties, Carrier started its own Indian operations through Carrier Aircon, which overtook Voltas as the market leader in 1993. In the late nineties, liberalization and excise duty rationalization brought in more than a dozen multinationals and eventually drove out the small-scale assemblers. In a highly competitive market and fast-changing environment, UPBGs inability to reinvent itself took its inevitable toll, and Voltas slid to No. 6 position in market share. At the turn of the century, with the imminent explosion of the air conditioner market, Voltas decided to revitalize UPBG. A Big Bang strategy was executed with the objective of being among the Top 3 Players, in line with Group guidelines. People, processes, brand, product and distribution saw major investments and went through a total revamp. By 2003-04, the target of being among Top 3 had been surpassed with UPBG reaching the No. 2 slot, which it has maintained till date. During the SBP workshop for 2007-11, it was decided to change gears from market position to profitability. Subsequent results are apt testimony to this change of focus to bottom line, while maintaining the market position. A new wave of innovation saw the development of a unique low cost and flexible business model. This asset light, people light, pocket heavy model won the Tata Innovista 2011 Award in the Promising Innovation category. As the division aims to scale even greater heights, the vision for market leadership was also agreed upon in the SBP workshop for 2012-16. UPBG is also a consistent winner of Gold Award from Readers Digest.

WATER COOLING BUSINESS Water Coolers were developed in the Thane plant in the sixties, and are now manufactured at PU. This product category is used principally in India and the Middle East. UPBG entered the water dispenser business in 1999-2000, by importing from China which has a large manufacturing base for WDs, and establishing a distribution network in India. Voltas is the market leader and dominant player in the Indian market with its well-entrenched Minimagic brand.

COMMERCIAL REFRIGERATION BUSINESS UPBG entered this business, hitherto dominated by small-scale manufacturers, in 2003 when HU commenced manufacture of freezers and coolers, now being manufactured at PU. Voltas is the market leader in this category.2. Projects Over the years, Voltas has built up a substantial reputation and is actively engaged in turnkey projects in fields such as Electro-mechanical works comprising HVAC, electrical systems for buildings, plumbing, fire fighting, ELV and specialized systems, building security and other utilities Electrical power projects Environmental and water pollution control, pumping stations and water supply, and water and waste water treatment projects.The Company has ISO 9001 - 2000 standards certification in its projects businesses, andhas successfully undertaken and executed prestigious high-value projects in the Middle East, Far East and South East Asia, CIS countries, Africa and India.

3. ManufacturingWith manufacturing units at Thane, Dadra and Pantnagar, Voltas possesses total capability in the manufacture of room/split air conditioners, industrial air conditioning and refrigeration equipment, water coolers, commercial refrigerators, visicoolers and freezers, cranes, and construction equipment. All these products bear the stamp of state-of-the-art plant, machinery and processes, resulting in consistently high quality and reduced costs.

4. Sales & service Voltas' sales and service operations cover: In-house manufactured products, including air conditioning equipment, materials handling and warehousing solutions, and unitary cooling products Products of principals represented, including textile machinery, warehousing and cargo handling equipment, and mining and construction equipment In all these sectors, the company demonstrates its specialized engineering expertise, as well as its extensive network for global sourcing

5. Awards 2008-09Top industry honors at UAE Voltas' overseas MEP business achieved professional recognition at the highest levels, at the MEP Middle East Awards 2008. The award is one of the most prestigious in the Middle East, and its honors are highly coveted. Voltas (UAE) held its own against the most daunting competition to walk away with two key awards: for 'MEP Project Manager of the Year' and 'Health & Safety'.'MEP Project Manager of the Year' rewards outstanding individual talent and commitment, as seen in actual project outcomes achieved through extraordinary skills and efforts.The 'Health and Safety' award is conferred on the firm that has made special efforts to improve health and safety standards on projects through focused initiatives, such as in training, methodology employed to reduce risk and accidents at site, or manpower utilization. Silver LEED certification The Rajiv Gandhi International Airport, Hyderabad, for which Voltas has executed world-class MEP (Mechanical, Electrical & Public Health) engineering, has been awarded the Silver LEED (Leadership in Energy and Environmental Design) certification by the US Green Building Council (USGBC). It is the first airport in Asia and the second in the world to gain this certification.

2006-07Export Excellence Award Voltas very recently won the Export Excellence Award, as 'Star Performer (Medium Enterprise)' in the product group of Project Exports - for its outstanding contribution in engineering exports in 2006-07. The award was received from the Engineering Export Promotion Council (EEPC) India - Western Region. Project Export Promotion Council (PEPC)

2005-2006'Maximum foreign exchange earned and repatriated to India from overseas construction and engineering projects' 'Maximum foreign business attempted' Second place in the category of 'maximum turnover in overseas construction and engineering projects'2004-2005'Maximum foreign business attempted'

2003-2004'Maximum foreign works secured in new areas' Second-best performance in the category of 'maximum turnover from overseas construction contracts'

2002-2003'Maximum foreign exchange earned & repatriated to India from overseas construction contracts'Maximum foreign business attemptedSecond-best performance in the category of 'maximum turnover from overseas construction contracts'.

2001-2002'Maximum overseas construction contracts secured'Second-best performance in the category of 'maximum foreign exchange earned and repatriated to India from overseas construction contracts'.'Maximum foreign works secured in new areas'

1999-2000Second-best performance in the category of 'maximum foreign exchange earned and repatriated to India from overseas construction projects'

1998-1999Maximum turnover in overseas construction projectsMaximum foreign exchange earned and repatriated to India from overseas construction Contracts

1997-1998Second-best performance in the category of 'foreign exchange earned and repatriated to India from overseas construction contracts'Engineering Export Promotion Council (EEPC)

2003-2004Top exports in the category of 'project exporters (regional award)'Highest exports in the category of 'industrial project exports (national award)'

2002-2003 Top exports in category of 'project exporters (regional award)'

2001-2002 Highest exports in the category of 'services (national award)'

2000-2001 Highest exports in the category of 'services (regional award)'

Others Mumbai Chamber of Commerce and Industry's Good Corporate Citizenship Award, 1995-96International Public Relations Associations' Golden Trophy for Excellence in Customer Service, 1994-95United Nations' Grand Award for Excellence in Public Service Worldwide, 1993-94.

Joint venture and tie-ups 1. The Voltas Board, at the meeting held on 10th April 2001, has approved the proposal for the merger of Voltas International Limited (VIL), - a wholly owned subsidiary of Voltas Limited with Voltas Limited, effective 1st April, 2001. The merger is subject to required statutory formalities and Sanction of the High Court.2. Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto Aircon (India).3. Company had also earlier decision of Tata-Merlin & Gerin Ltd. (TMG), and the National Electrical Industries Ltd. (NEI), were amalgamated with the Company.4. Tie Up with Hitachi & LG for distribution & Operations etc.

CHAPTER-3 RESEARCH METHODOLOGY

3.1 The research methodology used is DESCRIPTIVE. The researcher has made an attempt to describe the existing situation in the warehouses of Bhiwandi. The main focus has been given upon the existing working conditions, welfare practices being carried out and the contract labor management.

3.2 Sources of Data Collection:

a) Primary Data: (i) OBSERVATION The method of observation was used to collect the data from the contract labors and the management staff of the warehouses

b) Secondary Data: (i) LABOR LAWS The warehouse at bhiwandi is registered under the BOMBAY SHOPS AND ESTABLISHMENT ACT 1948, so this act is applicable to the warehouse and since more than 25 contract laborers work there THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 is applicable

CHAPTER-5 REFLECTING UPON THE WORKING CONDITIONS

TEMPERATUREThe temperature in the warehouse is intolerable i.e. mere standing in the warehouse will make you sweat. The temperature is approximately 40 degree Celsius. So mere standing for 15 minutes will make you sweat. And in these conditions the laborers and the warehouse employees have to work. The exhaust fans are there but they dont seem to fulfill their purpose.

HUMIDITYSince the temperature is very high there to work, the humidity level Is too high. This makes unfavorable environment to work. And in these conditions the laborers have to load and unload the stocks which make it even worse.

SANITATION There are only two toilets available within the whole warehouse. Also the condition of the warehouse is far worse i.e. there isnt any hygiene maintained in the toilets and there arent even proper locks to close the door. From the look of the toilets only one would give up the thought of going their.

REST ROOMSThere should be rest rooms for the contract laborers, so that they can take adequate rest and work with their full potential. There isnt any rest room available so, they cant take rest and also there arent any sitting facility made available for the laborers so that they can relax.

CHAPTER-6 REFLECTING UPON WELFARE

TRANSPORT FACILTIESThe warehouse is located in almost 1 and half kilometers away from the main entrance. There is no transport facility provided to the laborers. Not only the laborers, but there is no transport facility provided to the people working there. They have to either walk or have their own vehicle to travel to the warehouse.

CANTEEN FACILTIESThere is no lunch facility provided to the laborers working in the warehouse. They are expected to bring their own lunch for this purpose. Also theres no canteen facility either in the warehouse or in the area which serves this purpose.

LANUAGEThe language used by the supervisor for handling the laborers is rather pathetic. Actually the supervisor is also not responsible for this purpose, it is necessary for him to use this language so as to make them work.

MOTIVATION SCHEMESMotivational schemes are something which is missing as in case of welfare activities of the laborers. The laborers arent motivated by any means may it be monetary or non monetary. The fact is that they arent considered human enough to enjoy these welfare schemes.

CHAPTER-7 REFLECTING UPON THE CONTRACT LABOR PROBLEMS

SON OF SOIL CONCEPTThe SON OF SOIL concept is followed i.e. the contact should be first offered to the laborers who are SON OF SOIL. The warehouse is constructed on the land on laborers land i.e. it belonged to them before the developer bought the land from them. So the preference has to be given to those laborers otherwise it would result in a serious issue like a strike

HIKING RATEThe contract laborers hike the rate as and when they like. This is a serious issue since the rate has been previously negotiated between the contractor and the management.

LABOR INTENSIVE TECHNOLOGYThe technology usually used in this warehouse is of labor intensive i.e. the laborers have to work very hard to do the desired work. This is a time taking process and also a lot of effort on the part of the laborers. Also theres a risk to the product since the laborers have to load and unload the products, and theres a risk of product being damaged and laborers being hurt.

TIME TAKING NEGOTIATIONSThis is a major task between the management of the warehouse and the laborers i.e. to settle the strike as soon as possible and come to a win-win situation. But it is easier said than done. The contractor of the laborers is called for negotiations and then the negotiations start and to achieve at an acceptable point for the management is a tough job.

HANDLING OF LABORThe supervisors have a tough job handling the unskilled labor. It is very tough to make them understand what has to be done and how it has to be done. Also even after making them understand they repeat the same mistakes very often.

SAFFETY The safety measures at the warehouse are also not adequate. For example the fire exits are very limited, which can cause a serious problem in time of emergency. There are fire extinguishers attached at every pillar but due to lack of fire exits it would be very dangerous to use them.

WAREHOUSE Bhiwandi - the prime industrial locationA not-so explored real estate venue, Bhiwandi as a location for warehouse for rent, has several advantages. This is a strategic spot because of the ease of transportation of goods to various other cities including Mumbai. The Mumbai- Agra highway passes through this city and it has over 10 Million Square feet of warehousing and distribution networks around western India. The increasing real estate prices in this city explain the slow rising of demand by business entities for Bhiwandi sites to establish their storage spaces. At present it is the best time to get into contract for a warehouse in Bhiwandi due to the aforesaid factors.The warehouse no.165 is located at Mankoli naka, Bhiwandi. The warehouse is approximately 18-20000 square feet wide, with a height of 10 to 15 foot. Labor intensive technique is being used currently at the warehouse. Also there is a problem with the materials handling at the warehouse. The warehouse is located at a distance of approximately 1 km away from the mankoli naka.

SWOT ANALYSIS STRENGTHS The warehouse has a large capacity to store goods. It is associated with the brand Tata The company has been ranked no.1 for its logistics practices. Security advantage

WEAKNESS Poor relation between the management and labor. Labor intensive technique is used, so company largely depends upon labor. The goods are arranged spontaneously wherever there is space, this leads to haphazard during loading and unloading of goods.

OPPORTUNITIES Development of existing infrastructure. Automation will speed up the process of material handling

THREATS Location of warehouses at other sites with better facilities Residential setups at bhiwandi

FINDINGS AND INTERPRETATIONFrom the above observation the following can be interpreted.1) The temperature within the warehouse is too hot to work. This can be quoted with an example which was observed there. While loading and unloading of goods the platform where the activities were to be conducted had to be cooled down by pouring water. So that labors could walk there and do the required.2) The climate within the warehouse is too humid. I.e. just standing in the warehouse alone will result in sweating so much that your whole clothes would just get wet.3) The condition of toilets is by far worse; it is unhygienic and cannot be used because of its poor condition. There arent even locks to lock the doors, which makes it even worse4) The warehouse lacks restrooms, so the labors dont have any place to take rest from their work.5) There isnt any transport facilities made available. The warehouse is located at a distance of 1km away from the entrance.6) The labors and the staff have to arrange for their own lunches and snacks. Also there are a very few outlets in the vicinity which provide lunch and snacks.7) The strikes happen there every now and then, because of the concept of son of soil or either because of hiking of the rate.8) The negotiation process is a time taking and mostly the desired result is not obtained in the interest of the management.

SUGGESTIONS AND RECOMMENDATIONS

1) The temperature of the warehouse should be controlled, so that it is not too high for the labors and management staff to work. The exhaust fans which have been installed should work in a proper condition so that the temperature is controlled.2) The toilets should be kept in proper hygienic conditions and the doors should have a lock. And it should be taken care that the stringent odor doesnt exist.3) There should be a kind of seat like structure made available at the warehouse, so that the warehouse can take rest and work with the full capacity again.4) The laborers should be motivated by the supervisor, not only in the monetary sense but also in the non monetary sense. So that the labors are motivated and dont have any grudge against the management resulting in a low strike rate.5) The negotiation process is a time taking process, instead the deal must be made with the contractor that sudden change such as sudden hiking of rate will not be tolerated and action will be taken against him.

Table of contentsSr no.TopicsPage no.

1EXECUTIVE SUMMARY 1

2LITERATURE REVIEW 2

3INTRODUCTION TO THE PROJECT 4

4INTRODUCTION TO THE INDUSTRY-FMCD

5INTRODUCTION TO THE COMPANY-VOLTAS LIMITED

6RESEARCH METHODOLOGY

7Data collection 7.1 REFLECTING UPON THE WORKING CONDTIONS7.2 REFLECTING UPON THE WELFARE PRACTICES7.3 REFLECTING UPON THE CONTRACT LABOR PROBLEMS

8Findings and INTERPRETATION

9SUGGESTION AND RECOMMENDATIONS

10BIBLIOGRAPHY