1

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.
 2

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:
 3

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.
 4

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.
 5

CHAPTER-II

REVIEW OF LITERATURE

REVIEW OF LITERATURE
 6

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
 7

• 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
 8

• Housing co-operatives

5) Housing for employees and community services

 9

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
 10

• the design of the organization’s structure which facilities the flow of work and
• 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.
 11

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.

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.
 12

2.2 REVIEW OF LITERATURE FROM JOURNALS AND ARTICLES

Preserving Employee Morale during Downsizing

Karen 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 Gallup
April 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.
 13

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.
 14

2.3 DIAGRAMATIC REPRESENTATION OF THE STUDY

CANTEEN MEDICAL JOB

FACILITY FACILITY MOTIVATION SATISFACTION

Effect
of
welfare
WELFARE EMPLOYEE
SAFETY MEASURES MORALE
measure
on
morale
INFRA CREDIT INTER WORK
FACILITY RELATIOSHIP ENVIRONMENT
STRUCTURE
 15

CHAPTER-III

INDUSTRY PROFILE AND COMPANY

PROFILE
Coromandel Internationals Limited
 16

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
 17

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
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.
18
19
 20

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.

COMPANY PROFILE
 21

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.
 22

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.
 23

THE SPIRIT OF THE MURUGAPPA GROUP:

24
25
 26

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.
 27

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
o Poor availability of product.
o Import of major raw materials
 28

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.

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.
 29

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

Coromandel was awarded CII EXIM-BANK CNBC Award for DMA - Erehwon National Award for
"Significant Achievement in HR Business Most Engaged Innovation in HR.
Excellence" by the Excellence Workforce.
Confederation of Indian Award for
Industries (CII). This 'Strong
recognition was conferred at Commitment to
the CII HR Conclave 2010 by Excel' for Vizag
Mr Hari S Bhartia, President of & Kakinada
CII on 23rd July,2010 at New Plants.
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"
 30

Public Relations Society of International FAI Best FAI Best Production Performance
India National Award (1st Award for The Production Award for Complex
Prize) for The VOICE, VOICE Performance (P2O2)Fertilisers for Kakinada
Coromandel's in-house magazine. Award for the Plant.
magazine, received for the 4th Phosphoric Acid
time. Plant at Vizag
received for the
9th time.

FAI Environment Protection FAI Best Video National Energy Ranked among the Top 20 Best
Award for Complex (P2O2) Film Award Conservation Employers to work for by Business
Plant, Vizag. received for the Award for efforts Today.
6th time. in Energy
Conservation from
Ministry of Power,
New Delhi, for
Kakinada Plant.
 31

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.
 32

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
 33

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

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
 34

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.

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:-

 35

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.

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:

 36

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.

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.
 37

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

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:
 38

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

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.
 39

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:

Top Key Customers

Product/ Segment

service
28-28-0 Farmers by Government Institution
High Analysis in AP, Orissa, and West Bengal use
14-35-14 Complex Fertilizers these products for soil application.

20-20-0

10-26-26

Cement Industries –As a Retarder in

Cement manufacture. Farmers in
Gypsum By-products AP,Orissa,West
Bengal,MadyaPradesh use this
product as a neutralizer for Acidic
Soils

M/s Alufluoride Ltd-use this product

Hydrofluosilistic for the manufcture of Aluminium
By-products Fluoride which in turn is used for
Acid the manufacture of Aluminium.

Farmers in AP, Orissa, West Bengal,

and MadyaPradesh use this product
Gromor as a soil conditioner in lowering PH
Bentonite Sulphur of soils and to bring down alkalinity
 40

in Saline/calcareous soils.
Speciality

Nutrients
Farmers in AP, Orissa, West Bengal,
and MadyaPradesh use this product
Gromor Spray for foliar application, for better
absorption of nutrient from leaves
19:19:19 and to counteract adverse soil
conditions.

Gromor Power Farmers in AP, Orissa, West Bengal,

and MadyaPradesh use this product
19:19:19 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:

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
 41

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.

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.
 42

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:

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.
 43

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.

Objectives:

The main objectives of personnel department in Coromandel International Limited

are:
 44

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.
 45

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

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

 46

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:

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.
 47

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:

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
 48

Mg06 (AGMs) 11

Mg05 ( Sr.Mgrs) 10

Mg04 (Mgrs) 34

BAND – 2 55

Mg039( Dy. Mgrs) 53

CF3 ( Asst. Mgrs) 33

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.
 49

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.

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
 50

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 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.
 51

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.

• 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
 52

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

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.
 53

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.

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.,
 54

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 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

 55

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)

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.
 56

• 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

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
 57

CHAPTER-IV

THEORETICAL FRAME WORK

 58

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.
 59

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.

 The funds were utililsed to meet the funeral expenses in case of an

employee’s death while in service
 60

 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.
 61

 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

 62

 Short term loan of 2 basics recoverable in 18 monthly installments

 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
 63

 Rs.1500/- per annum - 1995

 Rs.2000/- per annum - 1998
 Rs.5000/- per annum - 2001 to as of now

 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.
 64

 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.

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.
 65

 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.

 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.
 66

 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.

 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.
 67

 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
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.
 68

 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
 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/-
 69

 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.

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:

 70

 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.

 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.
 71

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.

 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:
 72

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.

 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

 73

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.

 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:
 74

 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.

 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.
 75

 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.

 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.

 76

 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 CHARGED COST SUBSIDY

. COST TO TO %
EMPLOYEE COMPA
NY

1. COFFEE / TEA 2.50 0.10 2.40 96%

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

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:

 77

 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).

 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.
 78

CANTEEN BUDGET VS. ACTUAL (CAFETERIA + CONTRACT

CANTEEN)

Total
Contract expenditur Budget
Year Cafeteria canteen e 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

1201456.1
2007-08 6283420 6 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

 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.
 79

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.

 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.
 80

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
 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 :

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 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.
 82

CHAPTER-V
DATE ANALYSIS AND INTERPRETATION
 83

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
 86

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

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.
 87

ANNEXURE – I

BIBLIOGRAPHY

BIBLIOGRAPHY

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

 88

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

Agency, Calcutta, 1980.

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.
 89

ANNEXURE – II

QUESTIONNAIRES
 90

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 [ ]