EMPLOYEE WELFARE

INTRODUCTION:

The study on welfare measures is more relevant in today’s business scenario

characterized by very tough competition. This situation had led to a stage where organizations

are more worried about survival; this led welfare to take a back seat. The employees themselves

are looking for the bare minimum and not making any demands for welfare. In such a situation, a

study on welfare measures and their effectiveness goes a long way in determining how relevant

these concepts are in the changed scenario. Therefore a study is required.

The study was also required because implementation of welfare measures in India has

become nominal. It has been so neglected in the implementation part that there are very few

takers for welfare because of which the basic objective of having welfare measures being

implemented is lost. This study was therefore aimed at telling the management areas where they

need to tighten up to make welfare really meaningful in the organization. Keeping in view the

importance of fertilizers, the following integrated polymers plants with foreign collaborations

were set up.

The real need for welfare arises from the two basic conditions generally known as the

long arm of the job and the ‘social invasion of the factory’. The working environment of any job

in a factory or mine or a workshop imposes some adverse effect on the workers because of the

heat, noise, and order, fumes etc. involved in the manufacturing process.

EMPLOYEE WELFARE

Employee is the important factor of Industrial Production. Management seeks to

cooperation of work force by providing welfare in terms of provisions for better working

conditions, adequate lighting and ventilation etc., Employee Welfare work aim at providing such

service facilities and amenities which enable the Employee employed in industrial to perform

their work in healthy congenial surrounding conducive to good health and high morale.

OBJECTIVES OF THE STUDY

Primary Objective: To study the level of satisfaction of employees regarding welfare measures

at C.I.L.

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Secondary Objective: To study the perception of the employees regarding the welfare measures

provided to them.

To analyze if the level of satisfaction is different among the various categories of

employees and departments.

To suggest provision of more welfare measures to improve the performance of

the employees.

HYPOTHESIS:

Employee welfare measures provided by the plant influences the productivity

Employee welfare measures provided by the plant leads to job satisfaction of the

employees

PROBLEM OF THE STUDY:

A Project titled “A Study On Employee welfares Measure With Special Reference to

COROMANDEL INTERNATIONAL LIMITED,VISAKAPATNAM “.This project is for to

know the labour welfare measures provide in the coromandel international limited, and to study

the various dimensions of employee welfare measures that perceived by the worker and the

perception of the respondents regarding the various labour welfare provided to them and to

suggest suitable measures to enhance HRD intervention used in improve the welfare facilities.

SCOPE OF THE STUDY:

During the World War II certain non-monetary benefits were extended to employee as

means of neutralizing the effect of inflationary condition. These benefits, which include housing,

health, education, recreation, credit, canteen etc., have been increased from time to time as a

result of the demands and pressures from trade union, it has been recognized that these benefits

help employee in meeting some of their life’s contingencies and to meet the social obligation of

employee.

1. Employee demands:

Employees demands more and varied types of welfare measure rather than pay hike

because of reduction in tax burden on their part of employees and in view of the galloping price

index and cost of living:

2

2. Trade union demands:

Trade union competes with each other for getting more and a new variety of welfare

measure to their members such as life insurance, beauty clinics. If one union succeeds in getting

one benefit, the other union persuades management to provide a new model fringe. Thus, the

competition among trade union within an organization results in more and varied benefits.

3. Employee’s preference:

Employee also prefers welfare measure to pay-hike, as welfare measure motivate the

employee for better contribution to the organization. It improves morale and works as an

effective advertisement.

4. As a social security.

Social security that society furnishes through appropriate organization against certain

risks to which it members are exposed These risks are contingencies of life like accidents and

occupational diseases. Employee has to provide various benefits like safety measure,

compensation in case of involvement of workers in accidents, medical facilities etc

RESEARCH METHODOLOGY:

The information pertaining to various labour welfare philosophies has been collected

mainly from various books however the information pertaining to Coromandel International

Limited has been obtained from the following two sources.

PRIMARY DATA:

This is done by personal discussion with various officials in employee relation

department and human resource development. Questionnaires were prepared by keeping in view

of the objective of the study. The first one is being management questionnaire covering

management data on participation of workers in welfare work. The second one was the canvass

among the sampled employers to find out their opinion on welfare measures. The questionnaire

was distributed to 150 and the response were limited to 100. The study is confined to a sample of

100 only.

3

SECONDARY DATA:

The secondary data is from various publications on personal management labour welfare

and annual reports of Coromandel International Limited.

LIMITATIONS OF THE STUDY

Every study is conducted under some limitations. Some of the limitations of the study are

as follows.

During the project period most of the staff members are busy with auditing and other

works. So they could not afford give full information.

Some of the information was not available due to the confidential matters.

Since officials, executives and others were busy the study was primarily focused on

secondary data.

Time was a constraint for the study.

4

CHAPTER-II

REVIEW OF LITERATURE

5

REVIEW OF LITERATURE

Human Resource Management is the process of procuring, developing, maintaining, and

controlling human resources for effective achievement of organizational goals. This project is focused on

employee welfare measure and employee morale.

2.1 EMPLOYEE WELFARE – DEFINITION

Employee welfare means “the effort to make life worth living for workmen”. When all

basic facilities are provided and employees obtain satisfaction then the productivity can be increased

and development of the organization will be possible

CONDITIONS OF WORK ENVIRONMENT

1) Working conditions

Temperature

Ventilation

Lighting

Dust

Smoke

Fumes and gases

Noise

Humidity

Posture – simple

Hazard and safety complex devices

2) Factory Sanitation and Cleanliness:

Provision of urinals in factories

Provision of spittoons

Provision for the disposal of waste and rubbish

Provision for water disposal (drainage)

Provision of proper bathing and washing facilities

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Cleanliness, white- washing and repair of buildings and workshops

Care and maintenance of open spaces, gardens, roads, etc

3) Welfare Amenities

Provision and care of drinking water

Canteen services

Lunch

Rest room

Crèches

Cloak rooms

Other amenities

2.1.1 EMPLOYEES’ HEALTH SERVICES

1) Factory health services

Medical examination of employees

Factory dispensary and clinic treatment

First aid and ambulance room

Treatment of accidents and

Health education and research

2) Recreation

Playgrounds for physical recreation (athletics, games, gymnastics, etc)

Social and cultural recreation (music, singing, dancing, drama, etc)

3) Workers education

Education to improve skills and earning capacity

Literacy

Library, audio visual education, lecture programmes and

Workers educational scheme and its working

4) Economic Services

Employees’ co-operative societies

Grain shops and fair price shops and

Housing co-operatives

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5) Housing for employees and community services

8

6) Study of the working of welfare Acts

Factories Act

Employees state insurance act

Minimum wages act

7) Social Work in industrial Setting

Family Planning

Employee counseling

2.1.2 EMPLOYEE SERVICES AND BENEFITS

These are concerned with the process of sustaining and maintaining the work force in an

organization. They include

1) Safety provision inside the workshop

2) Employee counseling

3) The medical services

4) The recreational and other welfare facilities

5) Fringe benefits and supplementary items

2.1.3 EMPLOYEE MORALE - DEFINITION

According to Yoder “morale is a feeling, somewhat related to esprit de corps, enthusiasm

or zeal.Fippo has described morale “As a mental condition or attitude of individuals and groups which

determines their willingness to co-operate. Good morale is evidenced by employee enthusiasm,

voluntary conformance with regulations and orders, and a willingness to co-operate with others in the

accomplishment of an organization’s objectives.

2.1.4 FACTORS AFFECTING MORALE

According to McFarland, the important factors which have a bearing on morale are

The attitude of the executives and managers towards their subordinates.

working conditions, including pay, hours of work, and safety rules

effective leadership and an intelligent distribution of authority and responsibility in the

organization

the design of the organization’s structure which facilities the flow of work and

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The size of the organization.

2.1.5 CRITERIA THAT DETERMINES MORALE

Several criteria seem important in the determination of levels of workers morale, such as

The organization itself

The nature of the work

The level of satisfaction

The supervision received

The perception of the self

Workers perception of the past awards and future opportunities for rewards

The employees age

The employee’s educational level and occupational level.

2.1.6 TYPES OF MORALE

Morale is generally referred to as high morale. According to McFarland, “high morale exists

when employee attitudes are favorable to the total situation of a group and to the attainment of its

objectives low morale exists when attitudes inhibit the willingness and ability of an organization to attain

its objectives

High morale is represented by the use of such term spirit, zest, enthusiasm, loyalty,

dependability and resistance to frustration. Low morale, on the other hand, is described by such words

and phrases as apathy, bickering, jealously, pessimism, fighting, disloyalty to the organization,

disobedience of the orders of the leaders, dislike of, or lack of interest in, one’s job, and laziness.

2.1.7 MORALE AND PERFORMANCE

It has been pointed that “there is a little evidence in the available literature that employee

attitudes bear any relationship to performance on the job.

First, there are some who assert that high satisfaction leads to high performance. The

“Hawthorne” studies of 1930s seem to support this view, as do findings of other studies.

Second, others take an opposite view. For example, Lyman Porter and Lawler say that

satisfaction results from high performance, because most people experience satisfaction by

accomplishing more tasks, like building a radio, or clinching a sale.

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Third, still others claim that there is no consistent relationship between morale and

performance. Vroom found significant relationship between morale and performance in only 5 out of 22

studies undertaken by him.

2.1.8 WARNING SIGNS OF LOW MORALE

Among the more significant of the warning signals of low morale are

High rate absenteeism

Tardiness

High Labour turnover

Strike and sabotage

Lack of pride in work and

Wastage and spoilage.

2.1.9 IMPROVING MORALE

A three-fold action may be initiated. In the first place, it is essential to change the policy or

to correct it immediately. Employees do not lose their respect for the boss who admits his mistakes but

they cannot respect one who makes too many, and they may have contempt for one who refuses to

admit his mistakes.

Second, misconceptions should be removed, and the correct position should be explained

to the employees.

Third, a reasonable attempt should be made to educate and convince the employees.

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2.2 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES

Preserving Employee Morale during DownsizingKaren E. Mishra, Gretchen M. Spreitzer and Aneil K. Mishra

Topic: Human Resource Management and Industrial Relations

Reprint 3927; winter 1998, Vol. 39, No. 2, pp. 83–95

Mishra propose a four-stage approach to downsizing, gleaned from interviews and surveys that

will retain workers' trust and sense of empowerment. The company should consider all stakeholders'

needs — survivors, laid-off employees, the community, local and national press, and any affected

government agencies. The implementation of all the above, is the most important. Management

should communicate frequently and be open and honest.

How to Boost Employee Morale

By Betsy GallupApril 9, 2006

The following are the ways to boost the employee morale.

Treat employees with respect

Show interest in your employees' personal lives

Allow your employees to gain ownership of their jobs by being part of the decision-making

process

Create a pleasant work environment

Establish an employee recognition program

Give clear direction and set priorities.

Stand behind your employees. Be their greatest advocate.

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Boost Employee Morale with an Employee Incentive Program

By: Trevor Marshall

Good managers know from their own observations that employee attitude affects their work

and eventually the company’s output.

It is essential that your incentive program will actually inspire and motivate them to work

efficiently and not just be competitive with each other. Healthy competition among the company’s

employees is good but too much of it may also cause the company to disintegrate.

The company should still be very much hands-on with the whole employee incentive program to

ensure that the outcome of the employee incentive program will be good.

Employee Welfare

By Regina Barr

Employee Welfare program is based on the management policy which is aimed shaping perfect

employees. Therefore the concept of employee welfare includes to aspects namely physical and mental

welfares

1. Applications of merit system or work performance system as the basis for employee rewarding.

2. Providing the retired employees with the old age allowance.

3. Employee insurance program to provide the employee with better security.

4. Improvement in health security for the employees and their families so that they can work confidently

and productively.

5. Increase in basic salaries and pension as adjustment to the needs providing all work units and their

officials with vehicles to help support smooth mobility.

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2.3 DIAGRAMATIC REPRESENTATION OF THE STUDY

EMPLOYEE MORALE

WELFARE MEASURES

MEDICAL FACILITY

CANTEEN FACILITY

INFRA

STRUCTURE

CREDIT FACILITY

SAFETY

MOTIVATION

JOB SATISFACTION

INTER RELATIOSHIP

WORK ENVIRONMENT

Effect of welfare

measure on morale

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CHAPTER-III

INDUSTRY PROFILE AND COMPANY PROFILE

Coromandel Internationals Limited

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INDIAN FERTILIZER INDUSTRY PROFILE

India is primarily an agriculture based economy. The agricultural sector and its other associated spheres provide employment to a large section of the country's population and contribute about 25% to the GDP.

The Indian Fertilizer Industry is one of the allied sectors of the agricultural sphere. India has emerged as the third largest producer of nitrogenous fertilizers. The adoption of back to back Five Year plans has paved the way for self sufficiency in the production of food grains. In fact production has gone up to an extent that there is scope for the export of food grains. This surplus has been facilitated by the use of chemical fertilizers.

The large scale use of chemical fertilizers has been instrumental in bringing about the green revolution in India. The fertilizer industry in India began its journey way back in 1906. During this period the first Single Super Phosphate (SSP) factory was established in Ranipet in Chennai. It had a capacity of producing 6000 MT annually. In the pre and post independence era a couple of large scale fertilizer units were established namely the Fertilizer Corporation of India in Sindri, Bihar and the Fertilizer & Chemicals Travancore of India Ltd in Cochin, Kerala.

The Indian government has devised policies conducive to the manufacture and consumption of fertilizers. Numerous committees have been formed by the Indian government to formulate and determine fertilizer policies. The dramatic development of the fertilizer industry and the rise in its production capacity has largely been attributed to the favorable policies. This has resulted in large scale investments in all three sectors viz. public, private and co-operative.

At present there are 57 large scale fertilizer units. These manufacture an extensive range of phosphatic, nitrogenous and complex fertilizers. 29 of these 57 units are engaged in the manufacturing of urea, while 13 of them produce Calcium Ammonium Nitrate and Ammonium Sulphate. The remaining 20 fertilizer plants manufacture complex fertilizers and DAP. There are also a number of medium and small scale industries in operation, about 72 of them. The following table elucidates the installed capacity of each sector.

Sl. No Sector Capacity (LMT) Percentage Share

N P N P

1 Private Sector 53.94 35.13 44.73 62.08

2 Public Sector 34.98 4.33 29.0 7.65

3 Cooperative Sector 31.69 17.13 26.27 30.27

  Total 120.61 56.59 100.0 100.0

The Department of Fertilizers is responsible for the planning, promotion and development of the Fertilizer industry. It also takes into account the import and distribution of fertilizers and also the financial aspect. There are four main divisions of the department. These include Fertilizer

16

Imports, Movement and Distribution, Finance and Accounts, Fertilizers Projects and Planning and Administration and Vigilance. It makes an assessment of the individual requirements of the states and union territories and then lays out an elaborate supply plan.

Though the soil in India is rich in silt, it lacks chief plant nutrients like potassium, nitrogen and phosphate. The increase in the production of fertilizers and its consumption acts as a major contributor to overall agricultural development.

The Indian fertilizer industry has come a long way since the setting up of the manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of Indian Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) in Bihar. This was during the forties and the fifties.

The aim was to create an industrial base that would provide India with self reliability in food grains.

India witnessed significant growth of the fertilizer industry during the sixties and the seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer in the world. One of the major factors that have led to the rapid increase in the production capacity of fertilizers in India is the policy environment. With the formulation and implementation of investor friendly policies, large investments poured into the private, public and co-operative sectors and this propelled the growth of the Indian fertilizer industry.

As per Government of India records on 31.01.2007, the Indian fertilizer industry has made a production of 120.61 LMT of nitrogen (N) and 56.59 LMT of phosphatic (P) nutrient. The installed capacity of urea in India is estimated to be 207.52 LMT. These successes in the production by the fertilizer companies of India have crowned India the 3rd largest fertilizer producer in the world.

17

18

19

GROWTH OF INDIAN FERTILIZER INDUSTRY

The Indian fertilizer industry has come a long way since the setting up of the manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of Indian Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) in Bihar. This was during the forties and the fifties.

The aim was to create an industrial base that would provide India with self reliability in food grains.

India witnessed significant growth of the fertilizer industry during the sixties and the seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer in the world. One of the major factors that have led to the rapid increase in the production capacity of fertilizers in India is the policy environment. With the formulation and implementation of investor friendly policies, large investments poured into the private, public and co-operative sectors and this propelled the growth of the Indian fertilizer industry.

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COMPANY PROFILE

INTRODUCTION:

Coromandel International Limited is in the business segments of Fertilisers, Specialty Nutrients,

Crop Protection and Retail. Coromandel manufactures a wide range of fertilisers and markets around 2.9

million tons making it a leader in its addressable markets and the second largest phosphatic fertiliser

player in India. In its endeavour to be a complete plant nutrition solutions company, Coromandel has

also introduced a range of Specialty Nutrient products including Organic Fertilisers. The Crop Protection

business produces insecticides, fungicides and herbicides and markets these products in India and across

the globe. Coromandel is the second largest manufacturer of Malathion and only the second

manufacturer of Phenthoate.

Coromandel has also ventured into the retail business setting up more than 425 rural retail

centers in the agri and lifestyle segments. The Company clocked a turnover of Rs.9668 crores (USD 2.2

billion) in 2008-09. Coromandel was ranked among the top 20 best companies to work for by Business

Today and was also voted as one of the ten greenest companies in India by TERI, reflecting its

commitment to the environment and society. Coromandel is a part of the Rs.15,907 crore (USD 3.14

billion) Murugappa Group.

It should have:

1. High quality products and brand image 2. Modern, cost effective and energy efficient manufacturing facility

3. Profitable operations

4. High level of satisfaction to stake holders.

Adhere-

To ethical norms in all dealings with shareholders, employees, customers, suppliers, financial institutions and government.

Provide-

Value for money to customers through quality products and services.

Treat-

Our people with respect and concern provide opportunities to learn, contribute and advance, recognize and reward initiative, innovativeness and creativity.

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Maintain-

An organizational climate conducive to trust, open communication and team spirit a style of operation, benefiting our size, but reflecting moderation and humility.

Manage-

Environment effectively for harnessing opportunities.

Discharge-

Responsibilities to various sections of society thereby preserve environment.

Grow-

In an accelerated manner, consistent with values and benefits, by continuous organization renewal.

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THE SPIRIT OF THE MURUGAPPA GROUP:

23

24

INTEGRITY: We value professional and personal integrity above all else. We achieve our goals by being

honest and straightforward with all our stakeholders. We earn trust with every action, every minute of

every day.

PASSION: We play to win. We have a healthy desire to stretch, achieve personal goals and accelerate

business growth. We strive constantly to improve and be energetic in everything that we do.

QUALITY: We take ownership of our work. We unfailingly meet high standard of quality in both what

we do and the way we do it. We take pride in excellence.

RESPECT: We respect the dignity of every individual. We are open and transparent with each other. We

inspired and enable people to achieve high standard and challenging goals. We provide everyone equal

opportunities to progress and grow.

RESPONSIBILITY: We are responsible corporate citizens. We believe we can help make a difference to

our environment and change lives for the better. We will do this in a manner that befits our size and also

reflects our humidity.

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OBJECTIVES OF COROMANDEL

To enable the farmers “grow more” by producing and supplying highly nutritious complex

fertilizers at minimum cost.

To maximize, the efficiency of both the men and machinery through continuous up gradation of

technology and providing training investment.

To satisfy shareholders by giving them handsome returns on their investment.

SWOT ANALYSIS

STRENGTHS:

Very long experience in the field of producing and selling fertilizers.

Up-to-date technology and continuous up gradation.

Optimum capacity utilization

Enjoying great brand and corporate image

Dealer and farmer loyalty.

Financially strong and firm.

Niche Marketing

Strong promotional attractive

Widespread sales network

Minimum Labour problem

Well-trained employees and good work culture.

WEAKNESS

o Neglecting study based on sales promotion of retail outlets.

o Marketing by intermediaries

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o Poor availability of product.

o Import of major raw materials

OPPORTUNITIES

Increasing trend in using complex fertilizer areas.

Large areas under each and oil seed crops

Growling awareness and education among farmer’s community

Modern farming practices

Government subsidy reduction on urea for facilitating the use of complex fertilizer.

THREATS

The heavy competition in fertilizer market.

Frequent/subsequent changes in government policies.

Shifting of demand from the company’s products to competitor’s DAP

Huge consumption of urea cover complex that is offered at lessor cost in the market.

Temperance of the Agricultural sector by the present government.

27

Over the years, Coromandel has received a number of awards and recognitions including the British Council 'Five Star' rating for Safety Management Systems and being adjudged one of the 'Ten Greenest Companies in India' by a joint survey of TERI and Business Today magazine.

Some of the recent awards and recognitions received by Coromandel include:

Coromandel was awarded

"Significant Achievement in HR

Excellence" by the

Confederation of Indian

Industries (CII). This

recognition was conferred at

the CII HR Conclave 2010 by

Mr Hari S Bhartia, President of

CII on 23rd July,2010 at New

Delhi. The process involved a

rigorous assessment of

Coromandel's HR processes

and practices including site

visits by a team of CII

assessors. Coromandel in the

past has achieved "Strong

Commitment to HR

Excellence"

CII EXIM-BANK

Business

Excellence

Award for

'Strong

Commitment to

Excel' for Vizag

& Kakinada

Plants.

CNBC Award for

Most Engaged

Workforce.

DMA - Erehwon National Award for

Innovation in HR.

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Public Relations Society of

India National Award (1st

Prize) for The VOICE,

Coromandel's in-house

magazine, received for the 4th

time.

International

Award for The

VOICE

magazine.

FAI Best

Production

Performance

Award for the

Phosphoric Acid

Plant at Vizag

received for the

9th time.

FAI Best Production Performance

Award for Complex

(P2O2)Fertilisers for Kakinada Plant.

FAI Environment Protection

Award for Complex (P2O2)

Plant, Vizag.

FAI Best Video

Film Award

received for the

6th time.

National Energy

Conservation

Award for efforts

in Energy

Conservation from

Ministry of Power,

New Delhi, for

Kakinada Plant.

Ranked among the Top 20 Best

Employers to work for by Business

Today.

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COMPANY HISTORY

1959: Independent India realized that its largely agrarian economy needed a thrust in the right

direction for its people to benefit and prosper. Prime Minister Jawaharlal Nehru invited the Ford

Foundation to carry out a comprehensive study of Indian agriculture and give its recommendations. The

study revealed a crucial need to produce indigenous chemical fertilizers to increase agricultural output

to meet the country’s ever-increasing food demand.

1961 : An industrial license was granted to three companies – IMC (the world’s largest

producer of fertilizers then), Chevron Chemical Company (a major American player in fertilizers /

industrial chemicals) and E.I.D.Parry (India) Limited (India’s largest private fertilizer producer with 60

years’ standing) – to set up a giant chemical fertilizer complex.

The first Board of Directors was constituted on October 16, with H V R Iengar as its Chairman.

Others on the Board included J Q Cope, Charles Dennison, J K John, Dr L Bharat Ram, A W Horton, J T

Gibson, S C Dholakia, V K Rao and Raja Rameswar Rao. L L Powell and P J Davies were the first Managing

Director and Dy. Managing Direct respectively. Donald I Meikle was the first Company Secretary.

1962 Market development commence in the form of a “seeding programme”. E.I.D. Parry was

appointed COROMANDEL principal sales agent in India for our product aptly name “GROMOR”

epitomizing the idea of Growing More food for the nation.

A 483.5 acres site was identified at Visakhapatnam along the “Coromandel” coast (India’s east

coast), from where the Company derived its name. The land, taken under a 50-year lease from

Visakhapatnam Port Trust, has a private jetty just 5 km from the plant site. With a capital investment of

Rs.50 crores, Lumus Company undertook construction of the plant.

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1967: On December 10, Mr. Korari Desai, the then Deputy Prime Minister of India, dedicated the

fertilizer plant to the nation, in the presence of Mr. Kasu Brahmananda Reddy, the Chief Minister of

Andhra Pradesh. Grandhi Ramamurthy, a local farmer, was given the honour of cutting the ribbon.

The 245 ft high Urea prill tower was one of the tallest industrial structures in India then. Though

not operational today, it still presents a formidable sight, towering against the skyline, recalling old

memories for those who were associated with its operation.

1970: The “GROMOR farmer” was developed as a marketing symbol and introduced on our

bags to spread the message of “higher yields, bigger profits”. Today, farmer households across our

addressable markets identify COROMANDEL brand by this symbol.

1971: The “Coromandel Lecture” was instituted to provide a forum for thinkers, economists, social

and agricultural research scientists around the world to share their thoughts on issues of global concern

such as food security, environment and extension activity.

The “Borlaug Award”, instituted in honor of Nobel Laureate Dr Norman Borlaug (father of the

wheat revolution), honors eminent men of science and industry for their distinctive contribution to the

cause of agriculture. This reflects COROMENDEL concern to develop a symbiotic interaction between

agriculture, industry and academia.

1976: Our fertilizer retail outlet at Secunderabad got a boost with garden lovers fervently seeking

small quantities of fertilizers for bigger and richer blooms and fruit.

1977 : COROMANDEL completed a decade of participation in augmenting agricultural production

for the nation. Its vital role covered soil nourishment, sharing agronomic expertise, supporting

agricultural education and rewarding research – all of which had progressively grown in width and depth

during the decade.

1980 – 90: Plans to diversify were afoot. A “groundbreaking” ceremony was performed in

November 1980 at Chilamkur (Andhra Pradesh), which is rich in limestone deposits, to set up a one

million tonne cement plant. The fully computerized plant (designed by world-renowned cement

manufacturer Krupp Polysius of West Germany) was commissioned in 1984. It was later sold to India

Cements in 19903

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1995 – 99 Chevron Chemical Company divested its stake in favour of E.I.D.Parry (I) Limited in 1995,

followed by IMC in 1999. E.I.D. Parry (I) Limited acquired majority shareholding in COROMANDEL making

it a part of the Murugappa Group, a highly reputed industrial conglomerate.

2000 COROMANDEL growth over the years has been punctuated with several path-breaking

modernisation / upgradation programmes. Begun in 1975, the programme gathered momentum in

1992-95, when the Sulphuric Acid, Phosphoric Acid and Complex Granulation plants were

debottlenecked. Production capacity wend up from the original 247,000 MT to 400,000 MT. On

September 29, Mr. N Chandrababu Naidu, the then Chief Minister of Andhra Pradesh, inaugurated a

new complex granulation train. This further augmented capacity to 600,000 MT, a boon to the entire

farming community.

2003: On July 12, COROMANDEL consolidated its business by acquiring controlling stake in

Godavari Fertilisers & Chemicals Limited (GFCL). To optimise synergy of operations in the Group, the

Farm Inputs Division of E.I.D Parry (I) Limited was merged with COROMANDEL on December 1.

2004 :Mr. V. Ravichandran took over as President & WTD on January 22. Mr. A.Vellayan took

over as Chairman on September 1. Other Directors on the Board are Mr. J.Jayaraman,

Mr.M.M.Murugappan, Mr. T.M.M Nambiar , Mr. M.K.Tandon, Mr. D.E.Udwadia, Mr. S.Viswanathan and

Mr. K.A.Nair.

The first post-merger AGM of the Company was held on July 15.

2005: COROMANDEL signs a Business Assistance Agreement with Foskor Limited, South Africa.

Organizational Structure:

The supervisory board of Murugappa group supervises the organization of Coromandel

International Limited. The top most authority of the whole Coromandel International Limited is

administered and controlled by the president and managing director. The main registered office of

Coromandel International Limited is located at Hyderabad. The Present Managing Director of

Coromandel International Limited is Mr.V.Ravichandran. The Visakhapatnam Plant is headed by the vice

president who at present is Mr. N. Seetharam who undertakes the in charge of all the levels of

departments in the organization.

32

Functions:

The vice president manufacturing and projects is overall in charge of manufacturing Fertilizers at

plant and in implementation of all the projects in time with a workforce of around 175 officers and 425

technicians.

The vice president finance is in charge of overall fund management, internal audit secretarial functions.

A work force of around 30 Executives and 35 officers are under his control.

The Sr. Vice President marketing is in charge of overall marketing of Coromandel International Limited

finished products as well as the by-products like gypsum, fluorine etc.

The functions of other executives are:

General Manager – Operations:

General Manager – Operations is responsible for smooth running of all process plants including

operations. One AGM & other process plant Heads will directly report to him.

AGM Operations:

Asst. General Manager of operations is responsible for efficient running of Bagging & Product Handling

Plants in addition to Management Information System of all Operations Department about 8 Executives

and 100 workmen report to him.

Sr. Manager – Accounts:-

Sr. Manager of accounts is responsible for maintaining statutory accounts and other fund records, 10

officers and 36 office assistants assist him.

AGM – IT:

Asst. General Manager of IT is responsible in building skill gap of all the human resources of the

organization by requisite training and development. 3 officers assist him and 2 workmen who execute all

HR philosophies and administer officers wage administration.

33

AGM – Purchase and Stores:

Asst. General Manager – Purchase & Stores is responsible for all purchase activities, raw material

purchases and maintenance of stores at an optimum level. 5 officers and 20 assistants who look after

the effective distribution of finished products and by-products assist him.

AGM – Maintenance:

Asst. General Manager – Maintenance is responsible for preventive maintenance of plant and machinery

and buildings. He looks after the timely executives of all the capital projects at the plant. 30 officers and

165 technicians assist him.

AGM & RH – HR

AGM & RH – HR is responsible for recruitment of technicians and office assistants. He is also responsible

for execution of all welfare measures and for security arrangement of plant and machinery. 8 officers

and 40 workmen assist him.

Asst. General Manager – Safety, health and environment:

AGM – safety, health and environment is responsible for identification of hazardous areas and in

suggesting remedial safety measures and its effective compliance. He also arranges medical checkups

etc. 4 officers and 3 assistants assist him.

The employees of the organization are divided into three grades. They are:

1. Technical—the technical employees are again sub divided into highly skilled, semi skilled and unskilled

people. The labour comes under unskilled workmen. Technical staff is graded into S1 to S7 ranks.

2. Clerical- The clerical staff is graded into C1 to C3 ranks where C1 grade is for assistant, C2 for junior

assistant and C3 for senior assistant. The clerical staff mainly looks after the office work.

3. Managerial – The management staff is graded into CI1 to CI 3 and from MG3 to MG 10 grades.

34

Thus according to the ranks the employees of Coromandel Fertilizers limited are graded and the

company runs round the clock. The employees work in shift timings. The timings of the three shifts are.

0700 hrs to 1500 hrs

1500 hrs to 2300 hrs

2300 hrs to 0700 hrs

The general shift is from 0800 hrs to 1630 hrs. Thus the employees working under all the shift timings

receive all the welfare facilities like canteen, transport, drinking water etc.

Location:

The plant is situated in 500 acres of site about 5 km from the harbour. The site is located on the east

coast of Visakhapatnam and has been leased from Visakhapatnam port trust for a period of 50 years

with renewal options, at the port; Coromandel International Limited operates its own bulk freight raw

material unloading berth, which is an added advantage as they import many for Coromandel

International Limited Company.

The plant uses a lot of seawater in the process for cooling purpose Vizag being a seacoast provides the

facility. Coromandel International Limited is serving the farming community of India for the past 3

decades by producing around 1 million tonnes of complex Fertilizers per annum and catering to the

needs of agricultural society.

Plants:

Coromandel International limited has mainly three plants. They are:

1. Sulphuric acid plant-This plant is designed and constructed by M/s. Simon Carves India Limited. It has

a rated capacity of 1200 million tonnes per day. Sulphur is the raw material, which is imported from

abroad from countries like USA, Japan and Gulf.

2. Phosphoric acid plant-This plant is designed and constructed by M/s. Darr Oliver of USA is used in

manufacturing of cement. It has a rated capacity of 400 million tonnes per day. Rock phosphate a

mineral from foreign countries such as USA, Africa and Australia and is still looking for other sources.

Rock phosphate and sulphuric acid are reacted to give phosphoric acid

35

and gypsum. Filtering separates gypsum and it is a by-product, which is a good source of income by

sales.

3. Complex Fertilizer plant-Complex Fertilizer plant has rated capacity of 1400 million tonnes per day.

Ammonia and phosphoric acid are reacted in a reactor to form ammonium phosphate and urea is added

to this mixture. The urea prill is coated with ammonia phosphate to form the urea ammonia phosphate,

which is a Fertilizer.

Achievements:

Coromandel International limited a reputed Fertilizer company in India stood first in achieving the

following:

1. First in India achieved to commercially manufacture high analysis complex fertilizer, which is

urea ammonium phosphate 28:28:0 with high nitrogen and phosphate content in 1:1 ratio.

2. First in India achieved to install a large sulphuric acid plant based on DCDA technology to control

sulphur dioxide emission.

3. First in India achieved successfully to implement total recycling of seawater for its effluent

recirculation system attached to phosphoric acid plant.

Functional Areas

Coromandel International limited comprises of four functional areas. They are:

1. Manufacturing and production

2. Marketing

3. Finance

4. Human Resources

36

1. Manufacturing and Production:

The main objectives of manufacturing unit of Coromandel International Limited are

1 To be a low cost Fertilizer manufacturer

2 Emphasis on safety and environment improvement

3 Trust on energy conservation

The plant has planned to undertake manufacturing of single super phosphate with estimated production

volume of 0.7 lakh tones per annum. The basic raw materials used for manufacturing are phosphoric

acid, urea and ammonia. They buy naphtha to make ammonia from HPCL. Rock phosphate is imported

from USA and Sulphur is imported from USA and gulf countries.

Products:

1. Coromandel International Limited sells its product under the brand name “GROMOR’. 1. Gromor

(28:28:0) urea ammonium phosphate is one of the best products of Coromandel International Limited .

2. Gromor (14:35:14) ammonium phosphate potash, Npk is a scientific Fertilizer with the highest nutrient content of 63% among NPK complex available in India.

3. Gromor (20:20:0) and parampos (16:20:0) ammonium phosphate sulphate gives 15% sulphur for the soil apart from their ammonia and phosphate content.

The products of Coromandel International limited are sold in Andhra Pradesh, Orissa, west Bengal and Madhya Pradesh.

RANGE OF PRODUCTS & CUSTOMERS:

Product/

service

Segment

Top Key Customers

28-28-0 High Analysis Complex

Farmers by Government Institution in AP, Orissa, and West Bengal use these products

14-35-14

37

Fertilizers for soil application.

20-20-0

10-26-26

Gypsum

By-products

Cement Industries –As a Retarder in Cement manufacture. Farmers in AP,Orissa,West Bengal,MadyaPradesh use this product as a neutralizer for Acidic Soils

Hydrofluosilistic

Acid

By-products

M/s Alufluoride Ltd-use this product for the manufcture of Aluminium Fluoride which in turn is used for the manufacture of Aluminium.

Gromor Bentonite Sulphur

Speciality

Nutrients

Farmers in AP, Orissa, West Bengal, and MadyaPradesh use this product as a soil conditioner in lowering PH of soils and to bring down alkalinity in Saline/calcareous soils.

Gromor Spray

19:19:19

Farmers in AP, Orissa, West Bengal, and MadyaPradesh use this product for foliar application, for better absorption of nutrient from leaves and to counteract adverse soil conditions.

Gromor Power

19:19:19

Farmers in AP, Orissa, West Bengal, and MadyaPradesh use this product for Drip irrigation.

Power:

Since the plant functions continuously the company consumes 24 mg watts of electric power each day. It

has its own source of generating power through its two thermal power stations and one diesel power,

which altogether produces 7.5 mg watts; rest is taken from APSEB, the state electricity board

Marketing:

Relating to the field of marketing the objectives are:

38

1. Explore new markets and crop areas

2. Minimum distribution cost and lead time

3. Provide meaningful information to management in time.

4. Ensure quality and timely positioning of products as per market needs.

The major products of CIL are complex Fertilizers marketed in the trade in brand name of "GROMOR"

where most of the trade is done through railways. Its marketing centers are mainly Andhra Pradesh,

Orissa and West Bengal. In Andhra Pradesh the Secunderabad branch concentrates on marketing. The

raw materials like rock phosphate and sulphur, which are useful for the production, are imported from

US and Gulf. The best product of Coromandel International Limited GROMOR 28:28:0 which is urea

ammonium phosphate is marked in 50kg bags and stored in a tank area known as tank bund area. They

have a canal from sea to salt water, which is used for cooling purposes.

Quality Policy:

Coromandel International Limited is committed in supplying phosphoric Fertilizers and related

products, which satisfy the requirements of customers and comply with applicable specifications.

Further it is committed to continual improvement of quality management systems and processes with

the objectives of improving the product quality.

They strive to achieve the quality objectives and customer satisfaction by

1. Developing, implementing and maintaining quality management systems to international standards.

2. Imparting requisite knowledge, skills and competency to employees and

3. Ensuring employee’s participation in continuous improvement measures.

Non-Fertilizer Activities:

1. Sale of intermediate such as sulphuric acid, phosphoric acid.

2. Sale of Fertilizer raw material such as sulphur, rock phosphate, potash etc.

39

3. Sale of by-products like gypsum and fluorine.

3. Finance:

Coromandel International limited laid its foundation stone in 1964 with an investment of 50 crore and

leading presently with a turnover of about 613 crores and yields 10% growth rate on turnover and 27-

30% of returns per year and spends around 20 to 30 lakh per month as salaries to the employees.

The main objectives of finance department are:

1. Effective funds and foreign exchange management

2. Controls cost including reduction in interest cost

3. Tax planning

As per the balance sheet stated on 31st March 2001 the fixed assets of the company cost around 250

crores and, has gained a net profit of around 46.87 crores for the year 1998-99. Except for a couple of

years Coromandel International Limited is being continuously a profit based company.

The company is of vital importance to the economy as it supplies Fertilizers to agriculture, which is the

backbone of the Indian economy. Thus the company's emphasis has been on extension and

development involving constant updating of improved agricultural practices. These activities have

helped Gromor to establish itself as a leader and pioneer beard. It is titled as the farness friend.

PLANTS OF COROMANDAL INTERNATIONAL LIMITED:

Ammonia Plant:

Ammonia plant of 357 tones per day capacity was designed and constructed by M/S Kellogg of USA. The

basic raw material is Naphtha which is obtained from Hindustan Petroleum refinery, Visakhapatnam.

Urea plant:

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Urea plant which has an operating capacity of 400 tones per day, based on the CPJ - Allied, the process,

the design and construction were done by M/s Nucamin, Nunmate of USA.

The urea pills then send to complex plant for manufacture of urea. Ammonia phosphate 28:28:0.

The Urea plant has been shut down due to the shutdown of Ammonia plant.

Sulphuric Acid Plant:

Sulphuric Acid plant of CFL has an operating capacity of 1300 tones per day. This was designed and

constructed by M/s Simon Carves (India).

Phosphoric Acid Plant:

The plant was designed and constructed by M/s DorrOliver, USA. The original designed capacity

of the plant was 255 tones per day, which was increased to 325 tones per day during revamp in 1975.

The plant is now producing on an average above 350 tones of phosphate.

Complex plant:

The complex plant utilizes ammonia, phosphoric acid, urea to make Ammonia phosphate

28:28:0. Whereas for manufacturing complex NPK 14:35: 14, ammonia and phosphoric acid are used

along with Potash, which is a bought out raw material, mixed with the outer feed stocks in the complex

plant. In case of manufacture of 16:10:0, 20:20:0 Ammonia phosphoric acid and sulphuric acid are used

as feeds.

Due to increase in prices of Hydrocarbons, Operations of Urea and Ammonia production facilities have

been suspended. Alternate arrangements are in place. Ammonia and liquid sulphur are being imported

at an economical rate. Urea too is being imported.

The production material is bagged in 50 kg and dispatched by rail/road.

PERSONNEL DEPARTMENT OF COROMANDAL INTERNATIONAL LIMITED:

Coromandel International limited gives importance to human resources and it lays emphasis on

human safety and welfare. Presently the company comprises of about 600 employees among whom

about 425 employees are non managerial and about 175 employees are managerial.

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Objectives:

The main objectives of personnel department in Coromandel International Limited are:

1. Organizational restructure through re-skilling and re-deployment

2. Training in core competency areas

3. Employee cost reduction through manpower rationalization and optimum utilization.

Personnel department at Coromandel International Limited is classified into two departments. They

are:

1. Human Resource Department:

This department deals with the matters pertaining to managerial staff and is headed by Asst. General

Manager & Regional Head - HR who looks after the matters like recruitment, career planning, training

and development, performance appraisal and smooth administration of remuneration and policies of all

categories of employees of Visakhapatnam Plant as well as Marketing Branches of in the States Le.,

Andhra Pradesh, Assam, West Bengal, Orissa, Madhya Pradesh, and Chattisgarh.

A total of 40 non-managerial staff is working in this Department. Vice president in consultation with

HRD and ERD reviews carefully and finalizes the manpower planning.

HR Policy:

This human resource policy was drafted in the year 2000 in May and it IS considered to be the corporate

commitment.

1. To create and nurture an organization culture committed to multi disciplined teamwork in order to

meet the customer's needs with high quality products and services.

2. To facilitate and provide an environment congenial for continual learning aimed at increasing

proactively, creativity and adaptability.

3. To devise and sustain an appraisal and reward system based on performance and merit.

42

Recruitment:

The company has a policy that the new employee should be carefully chosen as he has to handle the job

not only for his ability but also for his suitability of future advancement. The requirements of the job

shall be the determining factor in the selection and placement of the applicants and employees who

satisfy the required qualifications and requirements of the job shall be preferred.

The main manpower sources of the organization are:

1. Resumes or the applications received in personal or by mail.

2. Local employment exchange.

3. Advertisements in local press.

4. Direct interviews from colleges, universities and poly technical colleges.

Coromandel International Limited also complies with the statutory requirement of informing

employment exchange vide form ER-1 under the Employment Exchange Act 1959.

Selection:

The received applications will be reviewed by the ERD and HRD in consultation with the concerned head

of the department and suitable applicants will be invited to meet the preliminary evaluation panel at

employee relations department or the human resource department.

The process of selection at Coromandel International Limited is done as follows:

1. Conducting written examination and its critical evaluation

2. Personal interview by the selection panel and its appraisal

3. Appointment order will be issued to the candidate and it contains the placement, commencement of

service, remuneration, benefits, compensation review, age of retirement, notice of termination etc.

Thus when the person is selected for a particular job he is sent for training to know the work correctly so

that he performs the job effectively.

Training and Development:

43

Training and Development at CIL is being given much importance. It is a systematic approach and its

objectives are to:

1. Upgrade and maintain the technical and functional skill levels of employees

2. To match the company's present as well as envisaged requirements.

3. Improve the understanding commitment and general effectiveness of employees through appropriate

workers education, supervisory development and management development programmes.

Normally organization will try to achieve the training man days up to a maximum of 7 days that is

considered to be the best. As against the normal standard, CIL already achieved 9.28 and 5.57

man days for their managerial and non-managerial staff. Presently training is being done at the rate of

6.75mandays/employee/year.

The training policy of Coromandel International Limited is to facilitate and provide an environment

congenial for continual learning aimed at increasing proactivity, creativity and adaptability.

THE MAIN FUNCTIONS OF TRAINING DEPARTMENT ARE:

1. Effective coordination with various departments aiming at alignment of training needs and

training activity.

2. Preparation of training calendars and obtaining sufficient budget from the top management.

3. Organizing the training effectively in line with the training calendar.

4. Collection of feedback from the participant about the effectiveness.

Thus training and development at Coromandel International Limited is playing an important role on the

employees by upgrading their skills and knowledge.

PERFORMANCE APPRAISAL:

When an employee's performance is excellent it is the result of a number of

circumstances that work together to make his excellence possible. The level of performance of an

employee is influenced by six factors. They are:

44

o Aptitude

o Degree of effort

o Level of skill

o Motivation

o Understanding the task

o Other factors

Performance appraisal systems at Coromandel International Limited are at 180° and 90° in cases of

managerial staff and non-managerial staff. Performance appraisal is mainly used as tools to access the

individual's competency, potential and performance and based on these factors increments;

compensation reviews and promotions are affected. It improves the performance of the employee so

that he performs well in future. Coromandel International Limited has a very good performance

appraisal system through which their performance is evaluated and compensation is awarded.

MANPOWER PROFILE

Grade / Band Fertilizers

Mg08 ( VP ) 1

BAND – 1 1

Mg06 (AGMs) 11

Mg05 ( Sr.Mgrs) 10

Mg04 (Mgrs) 34

BAND – 2 55

Mg039( Dy. Mgrs) 53

CF3 ( Asst. Mgrs) 33

45

CF2 (Sr. Officers) 6

Cf1 ( Officers) 4

BAND - 3 96

Total MS 152

MT / FT’S 1

Exec Tr 1

NMS / SS 424

Total 578

WELFARE FACILITIES:

Management makes the welfare policies at the plant and the welfare programmes are executed to

the workers through their union. The union nominates its members and negotiates about modalities of

execution of welfare programmes.

The following are some of the welfare facilities provided to the employees:

1. Drinking Water:

Drinking water facilities is provided to the employees in and around the plant. There are about 20

drinking water points at suitable places for supply of wholesome cool drinking water.

2. Canteen:

Canteen facility is also provided and in each shift at a time 60 to 70 persons can be accommodated.

Mobile and non-mobile canteen services are provided round the clock. Every month company spends

4.5 lacks approximately on canteen and the food is ordered on subsidized rates.

46

3. Recreational facilities:

Recreational facilities at Coromandel International Limited are organized through two clubs, which are

Coromandel recreation centre for non-managerial staff, and Coromandel club for managerial staff. The

clubs organize various cultural and entertainment programmes for recreation of its members and their

members. The subscriptions of the clubs are Rs. 5/- for CRC and RS. 40/- for CC per month.

4. Transport:

Coromandel International Limited provides subsidized home transport to the employees. Rs. 15/- is

recovered by the management per month from the employees salary. Company operates almost 6

routes of Vizag in all the shift timings.

5. First aid:

Coromandel International Limited provides first aid and medical facilities to the employees. 30 first aid

boxes are located at various locations and around 33 numbers of managerial and non-managerial

employees are trained in first aid in the factory during the year. Ambulance rooms' works around the

clock and a full pledged medical officer is provided by the management.

The company also provides facility for house loan, consumer stores, educational allowance for employee

children, maternity leave, and sick leave and bathroom facilities. These are some other important

welfare facilities provided by the company.

SAFETY AND ENVIRONMENTAL FACTORS:

Coromandel International Limited has given safety as the prime importance. Senior manager takes care

of the implementation of safety measures in the plant. He imparts safety education through posters,

slogans, and safety training on continual basis.

The company has so far achieved one million safe working man hours record 28 times, two consecutive

safe million man hours 8 times, three consecutive safe million man hours 4 times. The company

maintains an excellent safety records and achieved many national and international awards. All the

employees at Coromandel International Limited are provided with personal protective equipment like

safety shoes, helmet, mask, fire protective clothing etc. The company spends nearly Rs. 40 lacks per year

for providing safety measures. Coromandel International Limited adopted a policy of "safety to take

47

precedence over expediency of jobs". The following is the safety policy at Coromandel International

Limited

Safety policy:

It is the policy of the company to achieve high standards for professional safety and create healthy work

environment for its employees, contractors and neighboring communities.

It is the obligation of every employee to

KNOW safety rules;

FOLLOW safety procedure;

WARN others of unsafe conditions;

REACT positively to emergency property;

PERFORM his or her task to

ENSURE total safety.

Management has the responsibility to conduct its activities in a manner to ensure the above objectives

and maintain a safe and healthy work environment. The company has formed a separate department for

safety, health and environment and is named as SHE department.

Coromandel International Limited has also exhibited a keen concern towards the control of

environmental pollution. The total money spent on pollution control related to equipment till recent

times amount to 28 Crores approximately. Nearly 60,000 trees have been planted so far covering an

area of 20 hectares at a cost of 20 lacks approximately.

The following is the environment policy of Coromandel International limited.

Environment policy:

It is committed to optimizing the interests of the stakeholders in our business while simultaneously

protecting the environment by prevention of pollution and by.

48

Establishing and maintaining an environmental management system in compliance with good

business practices and legislative requirements.

Achieving a high degree of efficiency in consumption of inputs and energy.

Reducing dust emission into atmosphere.

Increasing greenery in and around the plan

Conserving resources through minimized waste generation and through promoting recovery

recycle and reuse.

Creating employee awareness for making environmental protection an integral part of work

culture and

Continually improving our environmental performance.

Thus the company provides safety and environmental factors to the employees and it also maintains

good relations with the workers hence there is no union problem in the company. Coromandel

International Limited has only one trade union, which is CITU, and it has no political interference but

the leader of the union is a political party member who is an outsider and others are the employees of

the company. 90% of the non-managerial staff is the members of the union.

SR activities:

Coromandel International Limited’s business interest is not limited to commercial profit alone. Its

corporate responsibility does not stop with merely increasing shareholder value. The company has a

stakeholder base that goes far beyond its shareholders. Displaying conspicuous social responsibility, it

associates with various community development activities in the villages around its facilities.

The company constantly seeks out avenues where it can help the community, and has contributed

generously to several social causes, such as providing drinking water to villages, scholarships to

meritorious students, free notebooks, fans and computers to government schools, construction of

additional classrooms for poor schools, veterinary camps for cattle, free health / blood donation camps

for villagers, pulse polio programmes for children, helping in the government's mid-day meal scheme,

etc.

ACCOUNTING POLICIES

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The accounts have been prepared primarily on the historical cost convention and in accordance with the

mandatory accounting standards. The significant accounting polities followed by the company are

stated below.

1. Fixed Assets: Fixed Assets are shown at cost or valuation less depreciation. Cost comprises

the purchases price and other attribute expenses. Fixed assets other than leasehold

land/improvement. Office equipment, furniture fitting, certain vehicles and roads had been

revalued on 31st March 1991, based on a valuation by an approved value. The indices, if any

used are not stated in the valuation.

2. Depreciation on Fixed Assets: Depreciation has been provided on straight-line method.

Depreciation on assets revalued as at 31st March 1991 is provided on the basis of the residual

technical life as ascertained by the value. Leasehold hold is being amortized over the lease

period.

3. Foreign Currency Transactions: Transactions made during the years in foreign currency are

recorded at the exchange rate prevailing at the time of transactions. Assets and Liabilities

related to foreign currency transactions remaining unsettled at the year end are translated at

contract rates, when covered by foreign exchange contracts and at year end rates in other

assets.

4. Investments: Investments are valued at cost of acquisition and related expenses.

5. Inventories: Stores and spares are valued at monthly weighed average cost. Other

inventories are valued at lower of cost and net realized value. The method of determination of

cost of various categories of inventory is as follows:

Raw Material – First in first out method. Cost includes purchase cost and attributable

expenses.

Finished goods and work – in – process – Weighted average cost of production which

comprises of direct material costs, direct wages and appropriate overheads. Goods for resale

– Weighted average cost.

6. Sundry Debtors and Advances: Specific debts and advances identified as irrecoverable and

doubtful are written off or provided for respectively.

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7. Revenue Recognition:

Sale of goods recognized at the point dispatch to customers. Sales exclude amount recovered

excise duty and sales tax.

Dividend income from investments is accounted for when declared.

Subsidies: Credit for Government subsidies has been taken on the basis actual sales made by

the company.

RECORDS

Coromandel has constantly taken up modernization and up gradation programs. The modern

programs undertaken by the company during the year '75, '80, and '92 has helped to increase the

volume of production form the original level of 2,50,000 Mt per annum to the current level of 3,38,000

Mt per annum with a considerable gain in energy and material usage efficiently over the years. The

various projects include primary reformer revamp phosphoric acid plant de bottle - necking molten

sulphur for loading facilities at berth and atmospheric storage tank ammonia handling etc.,

Coromandel has enjoyed excellent track records in production and industrial relations, energy and

environment since inception largely due to progressive policies of the company with regard to Labour

management.

Ever since the production commenced in 1967, Coromandel has been an active partner of the Indian

farmer in the field, helping him in his efforts to produce more from small land holdings and played a

crucial role in assisting India achieve self-sufficiency in food grain production.

ROLE OF CIL IN INDIAN AGRICULTURE:

From the very beginning Coromandel proved to be a boon to the Indian farmers. It brought to India the

world-class production facilities with a new generation of fertilizer products. Coromandel vision had

started playing a vital role in the resurgence of Indian Agriculture.

Coromandel introduced a branded product Gromor, which is a high analysis NP complex fertilizer. It is

the first in the world to produce high analysis NP complex fertilizers in the highest 1: 1 ratio. This was

51

implemented when most of the fertilizer products available in India were not balanced in nutrient

contents.

Gromor in a short span of time established itself as a popular brand where and entire generation of

farmers has grown up with it in a number of sates using it wide variety of crops.

Gromor 28:28:0 is one of the best of its kind in the world. It has unique granule configuration where in a

urea prill at the centre is coated with ammonia phosphate, which ensure nitrogen availability to the crop

over a longer duration of time.

Coromandel International limited gives importance to human resources and it lays emphasis on human

safety and welfare. Presently the company comprises of about 600 employees among whom about 425

employees are non managerial and about 175 employees are managerial.

FINANCIAL STATEMENTS

COROMANDEL MAJOR COMPETITORS

o The Fertilizers and Chemicals Travancore Ltd (FACT).

o Godavari Fertilizers and Chemicals Ltd., (GFCL).

o Gujarat Narmada Valleys Fertilizers & Chemicals Ltd., (GNFCL)

o Gujarat State Fertilizers Company Ltd., (GSFCL)

o Hindustan Lever Ltd., (HLL)

o Indian Farmers Fertilizers Co-operation Ltd (IFFCO)

o Madras Fertilizers Ltd., (MFL)

o Pyrites and Phosphates Ltd., (PPL)

o Rastriya Chemical and Fertilizers ltd., (RCF)

o Southern Petrochemical Industries Corp Ltd., (SPIC)

o Zuari Agrochemicals Ltd., (ZAL)

o Osklal Chemicals and Fertilizers Ltd., (OCFL)

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Awards & Accolades:

The FAI Best Production Performance Award – 2006 for the Phosphoric Acid Plant at Vizag,

Award for 2005-06 Best Energy Conservation in the Fertiliser sector received by Vizag Plant on

December 14 2006, National Energy Conservation Day.

The FAI Best Video Film Award – 2006 for the film on ‘Gromor Sulphur’ for the 5th time.

National Award (1st Prize) for House Journal – 2006 from The Public Relations Society of India,

New Delhi, received for ‘The Voice’ ( house journal ) for the 2nd consecutive year.

National Award (2nd Prize) for Video Film – 2006 from The Public Relations Society of India, New

Delhi received by Marketing Department (Fertilizers ) for the film “Cheetah” (Helping Hand)

British Council ‘Five Star’ rating for Safety Management System in 1998.

First prize for safety, among the 162 fertilizer companies in the International Fertilizer Industries

Sectional Contest.

Andhra Pradesh Pollution Control Board’s award for ‘Waste Minimization at Source and

Adopting Cleaner Technologies’ for 2001-02.

FAI award for ‘Environmental Protection in NP/NPK Fertiliser Plant Category’ for 1995-96.

Adjudged one of the ‘Ten Greenest Companies in India’ by a joint survey of Tata Energy

Research Institute and Business Today magazine.

Several other awards from the Central and State Government and other institutions like AP

Pollution Control Board, Jawaharlal Nehru Award for Pollution Control and Energy

Conservation.

Received a Commendation Certificate for "Strong Commitment to HR Excellence" from the

Confederation of Indian Industries (CII).

MURUGAPPA GROUP

53

The Murugappa Group is one of the largest family-promoted, professionally managed conglomerates

in India. The group has, over the decades, maintained its salience with leadership in its chosen lines of

business. The group has always been discharging its responsibilities to the satisfaction of all its

stakeholders as summed up in its guiding philosophy.

"The fundamental principle of economic activity is that

no man you transact with will lose; then you shall not."

- Arthashastra

54

CHAPTER-IV

THEORETICAL FRAME WORK

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DEFINITION:

Employee welfare has been defined in various ways, though unfortunately no single definition

has found universal acceptance. The Oxford Dictionary defines labour welfare as “efforts to make life

worth living for worker” Chamber’s Dictionary defines welfare as “a state of faring or doing well;

freedom from calamity, enjoyment of health, prosperity.” The ILO report refers to labour welfare as

“such services, facilities, and amenities, which may be established in, or in the vicinity of undertakings to

enable persons employed therein to perform their work in healthy and congenial surroundings and

provided with amenities conducive to good health and high morale”.

FEATURES OF EMPLOYEE WELFARE MEASURES:

Employee welfare includes various facilities, services and amenities provided to

workers for improving their health, efficiency, economic betterment and social status.

Welfare measures are in addition to regular wages and other economic benefits

available to workers due to legal provisions and collective bargaining

Employee welfare schemes are flexible and ever-changing. New welfare measures are

added to the existing ones from time to time.

Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

The purpose of Employee welfare is to bring about the development of the whole

personality of the workers to make a better workforce.

OBJECTIVES OF EMPLOYEE WELFARE:

To provide better life and health to the workers

To make the workers happy and satisfied

To relieve workers from industrial fatigue and to improve intellectual, cultural and

material conditions of living of the workers.

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BENEFITS OF EMPLOYEE WELFARE:

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and

satisfied labor force for the organization. The purpose of providing such facilities is to make their work

life better and also to raise their standard of living. The important benefits of welfare measures can be

summarized as follows:

They provide better physical and mental health to workers and thus promote a healthy

work environment

Facilities like housing schemes, medical benefits, and education and recreation

facilities for workers’ families help in raising their standards of living. This makes

workers to pay more attention towards work and thus increases their productivity.

Employers get stable employee force by providing welfare facilities. Workers take

active interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent

by the welfare policies.

EMPLOYEE WELFARE FACILITIES

Benevolent fund society

The coromandel employees benevolent fund society was formed with the representation of

both employees and employer.

Initially each employee used to contribute an amount of rs.5/-per month and now the

contributions enhanced to rs.30/-.management also grants a matching grant to this fund every

month.

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The funds were utililsed to meet the funeral expenses in case of an employee’s death while in

service

The management also giving matching grant of rs.10,000/- to the nominee of the employee who

dies while in service towards financial assistance.

This society was restricted with effect from 01.01.2001 with the objectives of promoting mutual

help among the members, to render financial assistance to the bereaved family in the event of

death of any member and to sanction loans towards educational expenses to members children

who are pursuing certain specified courses to the tune of rs.25,000/-each for two children per

member recoverable in 24 installments.

The society is being administered by a managing committee consisting of President, Vice-

president, Secretary, Joint secretaries – 2 no‘s, Treasurer

The president, vice-resident and treasurer of the society are nominated by the company and the

secretary and joint secretaries (2nos) are nominated by the employees’ union.

The total members of this society are around 350.The term of the managing committee is for 2

years.

In the event of death, the society pays an amount of rs.15,000/- towards financial assistance to

the nominee of the deceases along with funeral expenses of rs.1000/-

The management makes a matching grant of rs.10,000/- towards financial assistance to the

nominee of the deceased along with funeral expenses of rs.1000/-

The society also extends financial assistance to the nominee of the member who dies while in

service by way of a monthly of Rs. 2, 500/- per month.

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In case of retirement of a member, the society pays rs.3000/- as retirement gift to the member.

The turnover of the society at present is rs.11.00lakhs and the total members availed loans are

72 members.

Financial assistance to 4 death cases, 15 retirement cases are provided during 2007-2008.

C.I.L EMPLOYEES CO-OPERATIVE CREDIT SOCIETY:

The executive body of the co-operative society consists of representatives from both nm and m-

employees

Society executive body consists of president, vice-president, secretary, treasurer, 3 directors.

Company provided all infrastructures with computer within the premises of the company.

Society started in the year 1971and the total members at present is 416

The admission fee of any employee ( member) is Rs. 10/-

The minimum shares of any member is rs.50/- @ Rs.10/-

The total turnover is Rs 1.crore

Society grants the following loans

Medium term loans of rs.1,50,000/- recovery in 72 installments

Short term loan of 2 basics recoverable in 18 monthly installments

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The recovery of the loans is effected through salary deduction

Society pays 8% of interest on thrift amount and dividends every year to its members

From April, 2007 onwards, the society sanctioned 335 (short term and medium term) loans to its

members amounting to rs.60.0 lakhs.

FESTIVAL ADVANCE – NON MANAGEMENT STAFF:

The scheme was introduced during 1983.

This scheme was introduced mainly to meet the expenses in connection with any festival falling

during the calendar year.

The advance is free of interest and will be recoverable in 10 monthly installments.

From time to time under various long term settlements the advance was being revised as

follows:

Amount year

Rs. 300/- per annum - 1983

Rs. 500/- per annum - 1986

Rs.1000/- per annum - 1989

Rs.1500/- per annum - 1995

Rs.2000/- per annum - 1998

Rs.5000/- per annum - 2001 to as of now

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Festival advances given to the employees during the year 2007-2008 are 219

Total expenditure incurred during the year 2007-2008 is rs.10.10lakhs.

GROUP PERSONAL ACCIDENT POLICY:

Employees who have been excluded by virtue of their salary are eligible under this policy.

Covers accidents round the clock whether on duty or off-duty.

Entire premium (0.04% of employee salary) borne by the company.

Policy coverage

Leave salary during accident period

24 months salary in case of accidental death

Employee who met with an accident outside has to submit a intimation form to hr p & w section

under intimation to factory medical officer for. Onward transmission of the same to insurance

company.

After resuming the duty, employee has to submit claim which will be forwarded through

accounts department to insurance company.

On settlement of the claim by the insurance company, employee leave will be credited back to

his account. The no. of gap claims settled during the year 2007-2008 is 15.

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NON MANAGEMENT EMPLOYEES-MATERNITY BENEFIT SCHEME

The scheme was introduced during 1991with the special discounts obtained from insurance

policy.

The scheme is applicable to nm employees only.

The membership fee is rs.120/- per year, which will be deducted from the salaries of the

members every year during April or as and when application is submitted to.hr department. The

total members covered under this scheme are 90.

The member can avail this facility only after 10 months from the date of admission into the

scheme.

A member can avail this facility two times in his service.

The amount payable to the member as under:

o For normal delivery : rs.3900/-

o For cesarean : rs.4800/-

The settlements during the year-08 – 12 nos.

The expenditure on this account will be around Rs.45,000/- per annum

WELFARE AMENITIES –UNIFORMS & SHOES:

Common uniform to all employees of the plant.

3 pairs of uniforms being issued to all employees every year during march/april.

For welders and wharf employee’s full slaves cloth will be provided.

For waiters and drivers an addition white uniform of 2 pairs will be provide.

Aprons 3 nos.and one soft towel per year will be provided to all employees of cafeteria.

Reimbursement of stitching charges in line with market rates. For the year 2008, an amount of

rs.700/- per 3 pairs was reimbursed.

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Total cost per employee on uniforms & reimbursement of stitching charges to around rs.2100/-.

Total expenditure during the year2007-08 is rs.11.50 lakhs.

SHOES:

Employees working in administration will be provided one pair of executive shoe worth

rs.1000/-. Per pair.

Total no. of pairs issued during the year2007-08 are 96 pairs.

All other employees working in field/process plants will be provided with two pairs of safety

shoes which costs around rs.1000/-.

Total expenditure during the year2007-08 are rs.4.00 lakhs

GROUP SAVINGS LINKED INSURANCE SCHEME:

The scheme was introduced in 1991 for coverage of nm employees under an insurance policy

with life insurance Corporation of India, Visakhapatnam branch.

Initially the monthly premium per employee was rs.25/- and it was revised to rs.27.50 during

1995

The entire premium is borne by the company

From the premium of rs.27.50- rs.15/- will be for savings and rs.10/- for life policy. In case of

withdrawal from the policy due to resignations and retirements, the savings amount with

interest thereon will be paid to the employees.

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In case of death of the employee while in service, an amount of rs.25, 000/- + savings + interest

thereon will be paid to the nominee of the deceased.

All the confirmed non-management employees are covered under the policy.

The new joining will be added during December of every year into the policy.

Company will prefer claim with LIC for those who have completed five years of service and the

proceedings of the claims will be given to the employees.

During the year 2007-08, life insurance Corporation of India settled 29 claims in respect of

retirements / resignations / death.

PRODUCTION INCENTIVE SCHEME:

The production gift was introduced during 1989 for achieving 3,30,000 tones of production.

Subsequently the scheme was modified and the amount was paid based on the phosphoric acid

production.

During the year 2003, management entered into an agreement with the union for a period of 5

years. The main features are as follows:

o 5 year settlement , Prospective settlement

o Tripartite settlement

o Direct linkage to business plans

o Directly proportional to attendance

o Accelerated attendance incentive

o Ineligibility for individual & collective disciplinary record

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o Predetermined pay dates

The percentage of incentive will be linked to attendance of the employee in the preceding

calendar year as follows:

o 149 and below days - nil

o 150 to 230 days - prorate

o 231 to 240 days - 100%

o 241 to 250 days - 105%

o 251 to 260 days - 110%

o 261 to 270 days - 115%

o 271 & above days - 120%

For the year ending 2007-08 the incentive was paid on 25th April, 2008.

The total amount paid towards production incentive is rs.91.10 lakhs.

WELFARE AMENITY – STAFF BUS TRANSPORT:

Company is running 8 buses with a seating capacity of 260 in all viz., four buses in general shift

and four buses in rotating shifts through contractor. In addition to this one trucker with a

seating capacity of 12 seats used for transshipment of employees.

All put together these buses travel around 1200 km per day. The farthest pickup / dropping

point is around 35 kms away from the plant.

Total expenditure is around rs.72.00 lakhs per annum

About 330 employees are utilizing bus transport facility.

Management staff - 70

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Non-management staff - 260

Company charges Rs.15/- per month only from employees who are utilizing company bus

transport.

Bus inspection committee (comprising of safety officer, welfare officer and one engineer from

garage section) inspects these buses once in three months for suggesting improvements /

rectifications if any.

The buses also being utilized for schools/ market trips/ movie trips for residents of the colony as

well as for other company organized functions such as picnic, get-togethers, Independence Day

celebrations, dedication day celebrations etc.

FAMILY PLANNING INCENTIVE:

The scheme was introduced in 1985.

All employees of the company are eligible

Employees with one child will be given a lump sum amount of rs.1000/-

Employees with two children will be given a lump sum of rs.750/-

Apart from the above 4 days special leave will be granted to the employee who under goes the

family planning operation.

The average expenditure per annum will be around rs. 7000/-

Total employees availed during the year 2007-08 – 12 nos.

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Welfare amenities – Health insurance:

Mediclaim facility is provided by the company to all NM employees as per its terms.

The maximum policies allowed per employee are 5 ( self, spouse and dependent children up to 3

nos)

Total no.of persons covered ( employees & their family members) during the policy period 2007

–08 are 2063

Total premium was directly paid by the company on behalf of the employees to the new India

assurance company during the year 2007-08 is 18.00 lakhs and any excess coverage’s will be

deducted through salaries in four monthly installments.

Married son / daughter is not entitled to avail this facility but they cannot include their

dependent parents subject to overall premium eligibility and premium in respect of parents will

be borne by the concerned employee..

This scheme is renewed during December every year

The premium eligibilities are as under:

For employees below the age of 45 years the Premium eligibility is rs.600/-.

For employee’s spouses below the age of 45Years, and dependent children ( maximum of

3)there is no restriction towards minimum Policy coverage and the premium eligibility is

Rs.600/- each.

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However, in the above two cases, the employee should take a higher coverage of mediclaim for

Self than his spouse/children.

For employees and their spouses above the age Of 45 years, but below 55 years, the premium

Eligibility is rs.1110/- each and they have to take Policies equivalent to premium.

For employees and their spouses who are 56 and above years of age, the premium eligibility is

rs.1260/- each and they have to take policies equivalent to premium.

The above premier eligibilities are calculated after 10% family discount and adding 5%

surcharges.

All management staff members are covered under group mediclaim policy.

Management at its sole discretion may reimburse medical assistance to employees undergoing

treatment for major ailments such as heart surgery, kidney transplantation, cancer etc., in terms

of clause 12(b) of lts-1995.

This year (2008), the management extended financial assistance to the following members.

o Mr.j.rambabu, - heart surgery

o Mr.g.yesudas - heart treatment

o Mr.p.sanjay - kidney transplantation

SERVICE EMBLEMS FOR NON MANAGEMENT-STAFF:

The company introduced a scheme during 1981 with a view to recognize and appreciate the

long service with the company.

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3 grams gold coin will be presented to an employee on completion of every 5 years of service.

The gold coins will be procured from Tanishq. However, for employees who have joined on or

after 1st January, 1996 the first gold coin will be presented only after completion of ten years.

A relaxation of 6 months period for below 30 years service and one year service for above 30

years service will be given in case of retirements.

During the financial year 80 gold coins were presented to the employees through their head of

departments.

LONG SERVICE AWARDS FOR MANAGEMENT-STAFF:

Effective 10th December 2003, long service awards were introduced for management staff.

Completed service will be reckoned as on 30th June every year,

Silver item will be presented to the management staff as per the following:

o On completion of 25 years - 250 grams silver item

o On completion of 30 years - 375 grams silver item

o On completion of 35 years - 500 grams silver item

WORKMEN’S FURTHER EDUCATION:

The company introduced a scheme in April 1998 to encourage the employees to equip

themselves with a professional degree/post-graduation to improve their knowledge further.

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According to this, if any employee pursues a professional course in engineering, i.e., BE/

B.TECH / AMIE after joining the company, he will be awarded two additional, increments in his

grade, after submitting the necessary pass certificate from the university.

While continuing to grant two additional increments in the respective grade, the company made

certain improvements in the above scheme in February 2002. They are:

SPORTS ENCOURAGEMENT

Apart from granting special leave to the employees who represent the company in the state level

tournaments or murugappa group tournaments, the company introduced cash awards as a sort of

encouragement to the talented sports personnel of the company during February 2002. The winners

are given cash awards as follows.

Single/

Double events - Rs.1, 000/- per each title

Team events - Rs.250/- per each participant

Championship

Winners - Rs. 250/- each to all participants

Similarly, the employees who participated in cultural events and represent the company are given

special leave for the days of his absence from duty.

SPECIAL LEAVE FOR THE ACTUAL EXAMINATION DAYS:

Reimbursement of examination fee and tuition fee up to a maximum of rs.2,500/- for each

academic year after production of fee receipt after passing the examination.

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Total employees availed under the above scheme from April, 2007 onwards, 8 employees

availed the grant @ rs.2500/- each.

MEDICAL REIMBURSEMENT:

Medical reimbursement facility is provided by the company to all the non management

employees per year as under:

S1 to s4 and c1 - Rs.12,500/-

S5 and c2 - Rs.13,150/-

S6 to s7 and c3 - Rs.13,500/-

Cf1 to mg6 - Rs.15,000/-

HOUSING LOAN:

An amount of rs.2,25,000/- is provided to nm staff.

For rs.1,00,000/- @ 5% and rs.1,25,000/- @ 6% will be provide by the company to the nm

employees.

Any employee who wishes to obtain a loan of rs.75,000/- from any financial institution, the

company will provide a differential rate of interest.

3 employees availed this scheme from april-2007 (amount sanctioned rs.6.75 lakhs)

VEHICLE LOAN:

Vehicle loan of rs.30,000/- will be given to all nm employees.

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The second time vehicle loan of rs.25,000/- will also be given to all the nm employees between

the gap of 6 years.

26 employees availed this scheme from april-2007 (amount sanctioned rs.6.60 lakhs)

Up to rs.16,000/- interest chargeable is 4.25% and above rs.16,000/- interest chargeable is 6%.

CAFETERIA:

Highly subsidized canteen facility to all employees.

22 permanent employees are working in cafeteria.

Good dining hall with a seating capacity of 224 with music system and centrally air conditioned.

350 to 400 employees are availing lunch / dinner facility at cafeteria.

Dining hall timings are 11.15 to 12.15 & 12.30 to 1.00 for lunch and 7.00 pm to 7.30 pm for

dinner.

Idly / vada / semiya bath are being served in breakfast.

Pakoda / mixture & biscuits are being served in evening shift.

Mutton / chicken / fish / egg curries are served throughout the week except Saturday.

Rice, chapatti, one fry curry, one gravy curry or dall sambar / rasam, chutney / pickle, salad,

butter milk, curd and pappad, will be served in lunch and dinner.

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Canteen managing committee consists of 4 persons from management side and 4 persons from

employee’s side meet once in a month to review the quality, hygiene, menu, etc., from time to

time.

Sweet will be served (except holidays and Sundays) to all employees with lunch @ rs.1/- with

prior reservation. Management contribution on sweet is rs.8/- and total cost per sweet is rs.9/-.

Lunch benefit allowance @ rs.13/- for nm staff and @rs.10/- for m staff and rs.20/- to those

employees who don’t avail lunch with sweet thought the month.

Biryani (veg + nv) with ice-cream is being served on monthly once.

Total expenditure on food to the employee’s approx rs.6.50 lakhs per month.

Employer share of subsidy is rs.6.37 lakhs per month (98%) and employees share is rs.0.13 lakhs

per month (2%).

Employees staying for overtime work will be served break-fast / snacks / meals / coffee / tea

without any charges.

Employees working in the process plants, all cafeteria items will be served at the work places

SL.NO. ITEM ITEM COST CHARGED TO

EMPLOYEE

COST TO

COMPANY

SUBSIDY %

1. COFFEE / TEA 2.50 0.10 2.40 96%

2. IDLY (2 NOS) 4.00 0.15 3.85 96.25%

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3. VADA (2 NOS) 6.00 0.15 5.85 97.5%

4. UPMA 5.00 0.15 4.85 97%

5. SNACKS 3.50 0.15 3.35 95.70%

6. BISCUITS 6.00 0.15 5.85 97.50%

7. SWEET 9.00 1.00 8.00 88.88%

8. ICE-CREAM 8.50 1.00 7.50 88.25%

9. VEG.MEAL 25.00 0.65 24.35 97.40%

10. NON-VEG MEAL 46.00 0.75 45.25 98.40%

11 OT BREAK FAST 12.00 0.00 12.00 100%

CONTRACT WORKMEN CANTEEN:

Highly subsidized canteen facility to the contract workmen.

Act workmen canteen shares: 50% subsidy borne by the company, 40% share born by the

contract workmen and remaining 10% share borne by the contractor.

Contract canteen run thru a private vendor. Presently we are receiving services from M/S

BALAJEE CATERERS.

Good dining hall with a seating capacity of 100 nos maximum.

450 to 500 contract workmen are availing lunch / dinner facility at cafeteria only bagging

contract workmen are availing dinner facility.

Dining hall timings are 11.30 to 12.15 for 1st shift workmen & 12.30 to 1.00 for general shift

workmen lunch and 7.15 pm ti 7.45 pm for dinner (only bagging contract workmen).

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Idly / poori are being serviced in breakfast menu. Rice, one gravy curry or dall sambar / rasam,

chutney / pickle, and curd will be served in lunch and dinner.

Contractors / management visit time to time for check the quality of food and hygiene.

Total expenditure on contract workmen canteen approx rs.2.50 lakhs per month.

Power, water, shed for cooking food and stocking of vegetables and gas will be provided to the

vendor.

CANTEEN BUDGET VS. ACTUAL (CAFETERIA + CONTRACT CANTEEN)

Year Cafeteria

Contract

canteen

Total

expenditure

Budget

sanctioned Actual

2003-04 5007618 646294.7 5653913 73.50 56.54

2004-05 4875274 640071.3 5515345 60.00 55.16

2005-06 5341233 784659.4 6125892 51.48 61.26

2006-07 5710061 830780.5 6540842 68.95 65.41

2007-08 6283420 1201456.16 7484876 60.60 74.85

2008-09 (upto aug-08) 2094473 368887.46 2463361 78.45 24.64

CIL PENSION PLANS

There are two pension fund trusts managed by C.I.L.

CIL pension fund no.1

Under this C.I.L. pf no.1, the employees whose basic salary is below Rs.18,000/- will be

covered.

The trustees under PF no.1 are

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Mr. G.v.r.k.raju – chairman

Mr. G.sreedhar- trustee

Mr. K.M.vamshi-trustee

Mr. K.Jagadish-trustee

Mr. P.srinivasau-trustee

The above trustees are responsible to government pf authorities and also responsible in

maintaining day to day transactions. The above trustees adhere to the rules framed by rpfc

authorities.

CIL PF

Under this CIL pf, the employees whose basic salary is above rs.18,000/- will be covered.

The trustees under pf are:

Mr. A l george – chairman, Mr. N.Seetaram- trustee,

Mr.Gv. Bhadram-trustee, Mr. P.L.N. murty –trustee

The above trustees are responsible to government pf authorities and also responsible in

maintaining day to day transactions.

The above trustees adhere to the rules framed by rpfc authorities. A member can

contribute 12 % on basic salary to provident fund.

Company will also contribute matching grant 12% to the members account. Out of 12 % ,

8.33% will be contributed to fpf and remaining 3.67% will be contributed members

provident fund.

CIL pension fund for M –staff

Under this pension fund 15% of the basic salary of m-staff will be deposited in the

pension fund by the company.

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The total fund amount of m-staff will be deposited in LIC.

On superannuation of the employee,1/3 commutation will be given to the retired

employee.

Remaining amount will be paid as pension to the retired employee every month up to 10

years through LIC. And there after, option will be given to the retired employee to

continue the pension/return of the capital.

The trustees under M-staff pension fund are :

Mr. P.Nagarajan - chairman

Mr. A.l.george - trustee

Mr. Shanker subramanyam - trustee

Mr. H.s.prasad - trustee,

Mr. K. Kumar - trustee

CIL PENSION FUND FOR NM –STAFF :

Under this pension fund 10% of the basic salary of nm-staff will be deposited in the

pension fund by the company.

The total fund amount of nm-staff will be deposited in lic.

On superannuation of the employee,1/3 commutation will be given to the retired

employee.

Remaining amount will be paid as pension to the retired employee every month up to 10

years through LIC. And there after, option will be given to the retired employee/nominee

to continue the pension or return of capital.

The trustees under nm-staff pension fund are

Mr.G.sreedhar - chairman

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Mr.M.R.V.sharma - trustee

Mr.T.K.Raghavan - trustee

Mr.N.Ganesh - trustee

The total members covered under provident fund scheme are 613 employees.

welfare amenity – staff bus transport :

Company is running 8 buses with a seating capacity of 260 in all viz., four buses in general shift

and four buses in rotating shifts through contractor. In addition to this one trucker with a

seating capacity of 12 seats used for transshipment of employees.

All put together these buses travel around 1200 km per day. The farthest pickup / dropping

point is around 35 kms away from the plant.

Total expenditure is around rs.72.00 lakhs per annum

About 330 employees are utilizing bus transport facility.

management staff - 70 nos

non-management staff - 260 nos

Company charges rs.15/- per month only from employees who are utilizing company bus

transport.

Bus inspection committee (comprising of safety officer, welfare officer and one engineer from

garage section) inspects these buses once in three months for suggesting improvements /

rectifications if any.

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CHAPTER-V

DATE ANALYSIS AND INTERPRETATION

79

CHAPTER-VI

FINDINGS, SUGGESTIONS AND CONCLUSION

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FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

1. The organization is maintain appropriate working conditions

2. Most of the employees (90%) are happy with the safety measures in the organization.

3. Drinking water is not a problem in the organization.

4. 90 percent of the respondents are happy with their transport facilities.

5. Employees are happy with their washing facilities

6. Employees full happy with their leave facility in the organization.

7. The organization has good communication system.

8. Among 90 percent of the employers are happy with the welfare facilities in the organization.

9. The organization provides the suitable shelters, restrooms and lunch rooms for the employees.

10. Employees are happy with the educational facilities provided by the organization.

11. The organization provides health insurance schemes to the employees.

12. 80 percent of the respondents felt happy with their hygienic food facilities

13. The welfare officer is taking lot of interest on employees

14. The doctors and medical staff are timely attended for their duties during the emergencies

15. Majority of the respondents felt happy with their canteen facility

16. The organization provides sufficient urinals and toilets to the employers

17. Appropriate sanitary facilities are provided by the organization

18. The working conditions and work timings are according to the statutory provisions

19. Most of the employees are happy with the hygienic environment at the work place

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SUGGESTIONS:

1. The management can provide water purifier of with every water cooler and common drinking water

taps. Employee can have better water

2. There is need for improvement in the safety measures, especially the employees are not willing to

wear to safety measures

3. There is need for improvement in the canteen facilities for workmen

CONCLUSION:

Having studied the organizational set up and functioning of various in general and working of

the personnel department in particular I am pleased to place on record that the Coromandal is well

organized, better administered and well managed organization with properly defined policies, aim and

objectives and also time-tested procedures and practices managed by variable competent and

enlightened leadership of top executive and other officers assisted by sincere delighted and honest staff

work force.

The process of study includes a detailed study on the welfare activities in Coromandal. The

Study was conducted to find out the welfare facilities provided in the organization, which influents the

satisfaction of employees towards welfare facilities.

I have used a well-structured questionary comprising 20 questions. The sample size consisted of

99 respondents, simple random sampling was a technique used for drawing sampling.

In Coromandal, Visakhapatnam the employees are provided with many welfare benefits. It

includes both statutory and non-statutory measures. Over all from the survey it is found that most of

the employees in the organization are satisfied with the welfare facilities provided by the management.

The welfare facilities such as canteen facility, washing facility, uniform, nose guards and ear clips also

medical expense reimbursement has been appreciated by most of the employees in the organization.

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The organization has provided an excellent medical, transport, recreation, co-operative and

housing facilities to motivate the employees and improve their performance. The drinking water facility,

canteen facility and washing facility provided by the organization are good.

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ANNEXURE – I

BIBLIOGRAPHY

BIBLIOGRAPHY

1. Boley, J.W., A guide to Effective Industrial Safety, Gulf Pub Publishing

2. Chatterjee, N.N., Management of Personnel in India Enterprisers, Allied Book Agency, Calcutta,

1980.

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3. Gore, M.S., Social Work and Social Work Education, Asia Publishing House, Bombay, 1965

4. Hallen, G.C., Dynamics of Social Security, Rastogi Publications, Delhi, 1967

5. Mamoria, G.B., Labour Problems and Social Welfare in India, Kitab Mahal, Allahabad, 1966

6. P.Subba Rao, Essential of Human Resources Management & Industrial Relations, Himalaya

Publishing House, Mumbai, 1996

7. Sarma, A.M., Aspects of Labour Welfare and Social Security, Himalaya Publishing House,

Mumbai, 1997

8. Saxena, R.C., Labour Problems and Social Welfare, Gupta Printing Press, Meerut, 1974.

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ANNEXURE – II

QUESTIONNAIRES

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QUESTIONNAIRE ON LABOUR WELFARE MEASURES AT CIL

NAME :

GENDER :

AGE :

EDUCATIONAL QUALIFICATIONS :

DESIGNATION :

1. Are you satisfied with the working facilities provided by the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

2. Adequate drinking water facilities are provided by the management.

(a)Strongly agree (b)Agree (c) Some what agree (d) Disagree [ ]

3. How do you feel about the Sanitary facilities in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

4. Are you satisfied about the Hygienic conditions of working place

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

5. Opinion about the Medical facilities in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

6. Your opinion on the Transport facilities in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

7. Are you happy with the canteen facilities

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

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8. The canteen items are provided to the employees with subsidy price.

(a)Agree (b) Some what agree (c) Disagree (d) Can’t say [ ]

9. Opinion about the washing facilities in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

10. Adequate importance given to first-aid facilities in the Coromandel.

(a) Strongly agree (b) Agree (c) Some what agree (d) Disagree [ ]

11. The medical facilities provides good services to the employees during emergences

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

12. The Doctors and the nursing staff are available at medical center for service to the employees at

any point of time and during emergency

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

13. Are you satisfied with Shelters, rest rooms and lunch rooms provided by the management

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

14. The Educational allowance provided to the employees are adequate.

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

15. Are you satisfied about the work timings of the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

16. Adequate importance given to provide the safety measures at the work place

(a)Strongly agree (b) Agree (c) Some what agree (d) Disagree. [ ]

17. The Management provides health insurance and accidents benefits to the employees

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

18. The Coromandel provides leave facility according to statutory provisions.

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(a) Agree (b)Some what agree (c) Disagree (d) Can’t Say [ ]

19. Are you satisfied the pattern of attendance followed in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

20. Opinion about the communication process followed in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

21. How Effectively welfare officer taking care of your welfare

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

22. Are there provided with adequate urinals and toilets for the employees?

a) Strongly agree b) Agree c) Disagreed d) Strongly disagree [ ]

23. Your perception on the total welfare amenities in the Coromandel.

(a) Satisfied (b) Average (c) Dissatisfied (d) Can’t Say [ ]

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