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Corporate Social ResponsibilityCSR Practice of Ballarpur Industry Limited

(BILT)

Submitted To:Dr. Rajni Jain

Associate Professor

DFT

NIFT, Hyderabad

Submitted By:Amar Nath Prasad (04)

Md Jawed Akhtar (15)

DFT, Sem-VI

24thJan, 2013

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Executive Summary

As globalization gathers pace around the world, business are increasingly under the spotlight, to

not only perform on social and environmental bottom lines but to report their CSR activities in

an honest and comprehensive manner. At BILT too, over the last couple of years, they havemade a modest beginning in developing a holistic Social Responsibility Programme.

Our document elaborates on triple-bottom-line performance, i.e. economic, social and

environmental performance.

On the economic performance they havepresented information on supplier breakdown, non-core

business expenses, employee benefits, expenses incurred in community initiative, net sales and

the geographic breakdown of market.

With respect to the environmental parameters the report presents information on critical

parameters like waste generated and recycled, energy consumed, air emissions, biodiversity and

impact on biodiversity and the compliance status.

The information social performance includes their approach towards stakeholders engagement,

progress on their existing projects and a brief overview on some new initiatives. We have also

highlighted their symbiotic partnership with various NGOs and surrounding communities.

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Company Profile

Ballarpur Industries Limited (BILT) is Indias largest manufacturer of writing and printing

(W&P) paper. BILTs subsidiaries include Ballarpur International Graphic Paper Holdings B.V.

(BIGPH); BILT Graphic Paper Products Limited (BGPPL); Sabah Forest Industries (SFI),

Malaysias largest pulp and paper company; and Bilt Tree Tech Limited (BTTL), which runs

BILTs farm forestry programme in several states in India. Mr. R.R. Vederah is the Managing

Director and Executive Vice Chairman.

In India, the company has six manufacturing units, giving it geographic coverage over most of

the domestic market. The company has a dominant share of the high-end coated paper segment

in India. It accounts for over 53% of the coated wood-free paper market, an impressive 80% of

the bond paper market and nearly 35% of the hi-bright Maplitho market, besides being India's

largest exporter of coated and uncoated paper.

Building on its unmatched paper quality, BILT ventured into the paper-based office stationery

segment. The company markets its stationery through a well-established network of 350 retail

distributors spread over 270 locations. BILT has mega brands such as BILT Royal Executive

Bond, BILT Copy Power, BILT Image Copier and BILT Matrix that have now become an

integral part of office stationery. BILT Ten on Ten notebooks are targeted at students and are

also available with licensed characters such as Barbie, Spiderman, Winnie the Pooh, Hotwheels,

Jungle King and Hannah Montana. BILT Student Stationery has won Product of the Year

award for the last three consecutive years. In 2008, BILT forayed into organised retail through

P3Paper, Print and Pensserving both B2C and B2B clients across India.

In 2005, BILT entered into the tissue and hygiene business with two brands: Etiquette and

Spruce-up. Since then, the company has acquired Premier Tissues India Limited, the leading

player in hygiene tissue products in the domestic retail market.

BILTs acquisition of SFI, Malaysia, in 2007 was a watershed event it was the first overseas

acquisition by an Indian paper company, it transformed BILT into a major regional player, and

elevated BILTs ranking among the global top 100.

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CSR Policy

BILT Corporate Social Responsibility Policy

"While BILT is responsible to continuously enhance shareholders wealth, it is also committed to

its other stakeholders to conduct its business in a responsible manner that creates a sustained

positive impact on society".

For BILT being a Socially Responsible Corporate means:

Using environment friendly and safe processes in production. Making sustained effort in preserving the environment. Promoting the well being and development of employees and their families through an

inspiring corporate culture that engenders good values.

Building active and long term partnerships with the communities in which we operate tosignificantly improve the condition of the most disadvantaged amongst them.

Observe good business practices with all our stakeholders like business partners,suppliers and contractors.

BILT considers the following stakeholders, and the policy outlines our commitment towards

them

Using the policy as the guideline, BILT is committed to all its

stakeholders to develop concrete programmes and processes to

insure that the essence of the policy spreads to every manufacturing

location in a phased manner. This year the concentration has been onthe environment and community initiatives at the manufacturing and

corporate locations.

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Policy On Economic Upliftment

Communities- Making a difference

BILTs manufacturing units are located in some of the remote areas and surrounding

communities have traditionally been the most marginalized stakeholders. In some of these

locations, BILT provides the only known source of industrial employment. In these areas there is

widespread poverty, low development indicators on education and health, and very few avenues

for income generation.

Realizing that sporadic inputs are inadequate to address issues brought about by decades of

marginalization, BILT has developed a long-term community development programmne in

partnership with local NGOs. Specific engagement strategies have been drawn up to empower

these communities, and help them mainstream of society. Corporate Social Responsibility

(CSR) programmes are focused on livelihood creation, education, health, and natural resource

management.

BILT has an on-going partnership with 13 NGOs operating at 7 of its manufacturing sites.

BILT reaches out to more than 250,000 people living in 270 villages and 20 urban slums. Annual

stakeholder dialogues serve as an effective tool to incorporate feedback from communities and

modify the strategy of involvement.

Livelihood creation & Income Augmentation

BILTs livelihood interventions provide platform for entrepreneurship, and are built around

existing resources like land, or executed through capacity and skill building exercises. In

addition, services like basic curative health care, community based education classes and

libraries, veterinary services and agriculture inputs are at a small cost.

More than 2,000 youth and women have been trained in various skills and helped with loans to

start their own micro enterprises at village level. Around 3,000 farmers are now able to realize

the full potential from their land through better and more abundant crop. Training a dedicated

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group of service providers at the village level has ensured that skills ranging from agriculture and

livestock management to healthcare and education are available at the doorstep. So far, over600

youth have been trained by BILT. In the last five years, BILT's focused livelihood interventios

have brought 7,500 families out of object poverty.

Pragati Womens Co-operativeAn institution of Enabling Management of Micro Finance

in the Remote Tribal Area

BILTs initiatives for the community development programmes are based on the Empowerment

Model. For empowering the community & women in particular, their economic self reliance &

self employment promotion is essential. It is established beyond doubt that women have potential

and capacities to become successful entrepreneurs and generate employment for self and for

others too. Accordingly, BILT provided training as well as financial resources and need based

support to the Co-operative as there were no other services available.

As availability of financial resources is a crucial factor for any kind of entrepreneurial activities,

absence of them becomes a major bottle neck for the area and its people. Though banks and other

financial institutions are available, many women, with whom we are working, did not have any

access to these institutions. Therefore, it was felt necessary to promote an alternative financial

institution that could provide easy access for these enthusiastic women.

In this backdrop, The Pragati Womens Credit Cooperative Society was promoted. In a short

span of six to seven years, it has grown in size, efficiency and transparency. Today, it is a force

to reckon with in the area that had never any experience of such activities.

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The present status:

Details Total

Total Members 447

Total Shares 1431

Share Capital Rs. 1.40 Lakhs

Loans given to Depositors & Shareholders Rs. 597 Lakhs

Deposits mobilized Rs. 313 Lakhs

Employment generated 125

Loan limit for shares holder : Rs. 30000

Loan limit for SHGs : Rs. 70000

Recovery percentage : 97%

Auditors grade : B

The Pragati Mahila Credit Cooperative Society is recognized as one of the leading credit

cooperative operated successfully by women in the district of Gadchiroli. Government auditors

have given a B grade to the Society.

As. forming new credit cooperative is banned by Government of Maharashtra, the Society is

being approached by many people from the neighbouring blocks and district (Chadrapur) to

expand the area of operation.

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Community Mobilization & Women Empowerment

Women and children, who have traditionally been neglected and excluded from the development,

have been brought into the centre stage ofthe decision-making process by BILT. More than

80% of BILT's CSR projects focus on the development of women and children. As a result, more

than 15,000 women have been empowered through the Self Help Group (SHG) movement.

These SHG manages micro finance programmes that disburse loans up to Rs. 30,000 (US$ 750)

and manages a total fund of Rs. 50 mn (US$ 1.25 mn) in transaction. BILT has established more

than 400 such SHGs around the country.

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Policy On Social Upliftment

Education for the Underprivileged

Education is an extremely important component of any development programme and BILT lays

special emphasis an education initiatives. With a focused goal, best summed up in the motto,

"Each child in school and learning well", BILT has reached out to over 100,000 underprivileged

children annually.

BILT's education initiatives have evolved from being typical sponsored activities to adding

value, including community involvement and ownership. The programmes are designed to not

only encourage children to join school, but to also retain their interest in education. A prime

example is BILT's computer literacy programme, which imparts computer education to children

in remote and far flung areras. This programme, which has covered 5,000 children

to date, has been successful in improving school attendance across age groups.

Community-Based Health Intervention

BILT's collaborative health intervention programme involves both awareness and prevention.

Given the remoteness of BILT's manufacturing locations, BILT helps augment government

medical services at the grass-root through village health workers. These volunteers are trained to

provide basic preventive and creative healthcare in each village, and act as a critical link to the

secondary healthcare systems of the government. BILT also organizes a regular programme for

them to update their knowledge and skills.

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HIV/AIDS prevention

BILT has established an HIV/AIDS awareness and prevention pragramme that covers

employees, their families, community members, and, more importantly, high-risk truckers and

transporters who work with BILT and the surrounding communities. Around 300 BILT

employees and over 500 community volunteers are actively involved in spreading awareness

about the disease. An Anti-Retroviral Therapy (ART) centre set up at Ballarpur, Maharashtra

provides care and treatment to persons living with HIV.

The centre is equipped wi1h a state-of-the-art laboratory and is run by qualified medical

practitioners and counselors. It is one of the first centre to be set up under the Public Private

partnership model. Encouraged the success of its ART centre at Ballarpur, BILT is working

towards establishing a similar centre in the state of Orissa. The HIV/AIDS programme has

impacted over 60,000 people, and is nationally and internationally recognized as a pioneering

effort of tackling the threat of HIV/AIDS at the community level.

The key elements of this policy are:

They will not undertake HIV screening for the purpose of exclusion from employment. They will not discriminate against any employee for advancement in employment

because of his/her real or perceived HIV status.

They will conduct periodic awareness and training programmes within the company forthe employees, their families, contractual workers as well as for truck drivers to reduce

the stigma and discrimination associated with the disease.

They will support and promote Voluntary Counseling and Testing to employees with

regards to HIV/AIDS

They will provide Antiretroviral (ARV) treatment to the employees for the managementof HIV as and when necessary.

They will revisit the policy periodically to incorporate the developments that may take place in

management and treatment of HIV/AIDS.

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Universal Primary Education

Universalization of primary education remains one of the foremost goals of BILT's CSR

programme. The company has partnered with a prominent national level NGO and has been

relentlessly working towards furthering education in Government schools, arresting the dropout

rate and mainstreaming children. Nationwide, this programme impacts over 1,00,000 children

annually.

Rehabilitation Centre for the Disabled

Sobah Forest Industries in Malaysia has set up one of the first rehabilitation centres for children

with disabilities in the district. Thecentre enrolls children with all disabilities and provides them

with education and rehabilitation facilities. This centre has been set up in collaboration with

Sabah state government to cater the needs of the entire district.

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'""

Policy On Environmental Protection

Sustainable forest management

Besides being involved in farm forestry operations in India, BILT and its Malaysian subsidiary

Sabah forest Industries (SFI) manage nearly 300,000 hectares of forest - including a large tract of

industrial plantation - in Malaysia. Sustainable forest management practices include reduced

impact logging techniques to help protect the soil and samplings, thus ensuring natural

regeneration. Biodiversity-rich areas are demarcated as protected forests and left untouched.

Critical water catchment areas are set aside for clean fresh water supply.

SFI has achieved a recovery rate of96% for each cubic meter of log delivered to the mills. This

translates into near zero wastage of resources. Trimmings and waste are used for pulping fine

saw dust, barks and splinters and are burnt to produce steam for generating power. Residual

ashes are mixed with effluents to produce compost to raise seedlings. Micro management of the

entire process ensures continuous production of timber, while maintaining ecological balance.

Certain areas have been demarcated for community forestry, wi1h 1,600 hectares planted to date.

Additionally, trial plantings of medical trees have been initiated with seedlings collected from

the forest concession areas. Areas in the virgin forests are maintained as eco tourism sites.

Participatory Water Management

Water is a scarce natural resource needed equally by the community and the industry. There is

heavy demand of water for irrigating agriculture fields. The manufacturing processes like paper

making consume water and therefore mutual co-existence of industry and the community can

only be achieved with judicious usage, reuse after treatment, recycling, conservation and

recharge of water and efficient agricultural practices. Participatory water management is the

most effective tool to address water crisis.

In Bhigwan, they observed conflicts between the community and the paper mill. There were

cases of breaking effluent water pipeline too. To address this crisis, participatory water

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management program was initiated in Bhigwan. A total area of 15,476 ha area and more than

5000 farmers are being covered under the project. Formation of community-based institutions

like Water User Association (WUA) and Water User Group (WUG) has been initiated for

equitable sharing of water. Four water user associations (WUAs) have already been registered

and fifty WUGs with a total of 1170 farmers have been formed till now. The project activities are

geared to helpsave, reuse and recycle water, and develop methodologies to improve water

resource management. It is envisaged that there will be equitable water distribution, with

ownership of the whole programme with the local community. A net increase of around 1500

Acres irrigated area is expected as an impact of this programme.

Farmers have also been trained in improved agricultural practices through exposure visits,

demonstration plots, classroom/field trainings on crop/variety selection, crop rotation, agronomic

practices (fertilizer, pesticide, irrigation, inter-cultural operations, etc) and organic farming

(vermi-composting, cow urine application, etc). Farmers have been educated about tapping

marketing opportunities. There has been an increase of 150 per cent in the overall production of

different crops due to the adoption of improved agriculture practices.

Harnessing Rain -Water on Uplands Vermin Composting Stake holder dialogue A tool for conflict resolution

Farm PondAn effective tool for harnessing rain- water on uplands

The land holding patterns of a typical tribal farmer is 05 to 1 acre of low land which has the

potential to grow paddy and between 1 to 2 acres of upland which is utilized for taking dry land

crops like Pearl Millet (Ragi) or linseed (Alsi). These crops are generally taken on throw and

grow basis, with high level of uncertainty of any return. However, these uplands have also the

potential of water harvesting during the monsoon period. These can be effectively done with a

low cost technique of making small farm ponds, which can be done along the natural gullies

passing through the uplands.

These typical farm ponds cost between Rs. 3000 to Rs. 4500 for a typical size of 15 feet X 20

feet size pond with a depth of 5 feet. These ponds help in retaining water during the winter

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season much after the monsoon period is over. The water stored in these farm ponds can be

effectively be used for irrigating the crops especially during flowering and fruit bearing stage of

crops.

This year we have taken rising of farm ponds as a pilot initiative in Bagraguda village in the

Jeypore unit. The purpose was to support for paddy cultivation in winter and summer season.

Looking at the ground water table in the low land we explored this possibility to exploit these

sources for paddy cultivation as well as for horticulture (mango plantation). Bilts support was

75% of the total cost and the farmers have contributed 25% of the total cost of the farm ponds.

This time we have planted 500 mango grafts with 8 farmers in Bagraguda village. The water

requirement of mango grafts can easily be met from the farm ponds. Besides mango plantation,

these farm ponds can also support the water requirement of the summer paddy in small quantity.

Excavation work of 3 ponds have already been completed the work on one more pond is under

progress. This initiative has really brought a new color to our project in the villages, as the tribal

farmers had never thought off this kind of water availability in their uplands.

We are already getting requests from other farmers of the village to help them raise farm ponds

in their fields. Hence, now we are linking them to the government schemes so that they can also

avail the benefits of water harvesting. Through these measures, we are able to increase the food

sufficiency of farmers up to 4 to 5 months. In the initial phase itself, each farm pond has been

able to support irrigation for paddy crop up to one acre during winter & summer season.

Forestry Experts in silviculture

BILT has nearly two decades of experience in managing clonal plantations. Operations are

managed by BILTs subsidiaries, Sabah Forest Industries (Malaysia) and BILT TreeTech (India).

These forestry operations provide their factories with a sustainable supply of fibre. Malaysia In

Sabah, BILT manages nearly 300,000 hectares of forests, which includes a large tract of

industrial plantation. A team of international plant geneticists, entomologists, plant pathologists

and soil scientists is in a constant quest to improve yields through development of better breeds

and research into silviculture and tree nutrition. Reduced impact logging techniques used in the

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sustainable management of natural forests protect the soil and saplings, thus ensuring natural

regeneration. Biodiversity-rich areas are demarcated as protected forests and left untouched.

Critical water catchment areas are set aside for clean freshwater supply. Nothing is wasted.

Trimmings and waste are used for pulping. Fine saw dust, barks and wood fragments are used to

produce steam for generating power.

The company has achieved a recovery rate of 96% for each cubic metre of log delivered to the

mills. This translates into near zero wastage of resources. Micromanagement of the entire

process ensures continuous production of wood-based products, with concomitant social and

ecological benefits. India As industrial plantations are not allowed in India, BILT has initiated

farm forestry operations in several states. This programme is manned by experienced forestry

professionals, and specifically focuses on marginal farmers with unproductive lands. These

farmers are provided with high-yielding clones of pulpwood species, and are offered extension

services and expert advice. In addition, the company facilitates long-term, tailor-made bank

loans to needy farmers. The company also assures purchase of their pulpwood produce at a

declared support price or market price, whichever is higher. Besides securing a sustainable

supply of raw material for BILTs paper plants, the farm forestry programme has several social,

economical and ecological benefits. It generates employment for the rural communities, converts

non-performing assets into performing assets, and reduces the pressure on natural forests. Apart

from bringing about a sea change in the socio-economic fabric of these rural areas through

productive use of marginal lands, the farm forestry programme has resulted in:

soil and water conservation, increased soil fertility due to addition of organic matter, cleaner air, and protection against natural calamities like storms and floods To date, the company has

brought over 30,000 hectares of fallow and wasteland under tree plantations, benefitting

around 32,000-35,000 farmers.

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Bibliography

http://en.wikipedia.org/wiki/Ballarpur_Industries_Limited http://www.avanthagroup.com/companies-ballarpur.asp http://www.biltcsr.com/

http://en.wikipedia.org/wiki/Ballarpur_Industries_Limitedhttp://en.wikipedia.org/wiki/Ballarpur_Industries_Limitedhttp://www.avanthagroup.com/companies-ballarpur.asphttp://www.avanthagroup.com/companies-ballarpur.asphttp://www.biltcsr.com/http://www.biltcsr.com/http://www.biltcsr.com/http://www.avanthagroup.com/companies-ballarpur.asphttp://en.wikipedia.org/wiki/Ballarpur_Industries_Limited