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From the MD’s Desk

About the Company


4

Environ- Heath
ment
Areas
Objective, Vision, Mission of
Focus
Community Education

CSR Policy
c o n t e n t S

Areas of Focus
10

Health
12

The Social Responsibility


Report is an important Education
document as it enlists
Kansai Nerolac’s Social
19
initiatives. This is the
way to be transparent
about the company’s
Community Development
activities.
22

About this Report


Environment Preservation
25

From the Vice President’s Desk


27
From the M.D.’s Desk…

Our constant endeavor must be to spread


the message of goodwill, bring a smile to
the face of the deprived, be committed to
the welfare of the society and show care
and concern.

K
ansai Nerolac Paints, as an organization, has always been committed to integrity and
living the core values of Responsiveness, Innovation, Team orientation, Execution
and Simplicity. While conducting business, we have been conscious about engaging
all our stakeholders and operating in an ethical manner. This reiterates our commitment
to promoting the environment of Corporate Social Responsibility (CSR). To begin with,
when we talk about CSR, we maintain the standards of following regulations of human
rights, environmental policies, and safe working conditions for all stakeholders. This goes
hand in hand with contributing to the society under four verticals of Environment, Health,
Education and Community Development.
As a good samaritan, Nerolac has imbibed coexistence with the community around it and
the saying that ‘what we give to society, it gives back to us’, really holds true. Investments have been made in
establishing health centers, organizing health camps, financial donation to educational institutions for creating
infrastructure with respect to technology, books, and periodicals, working with NGOs for upliftment of the poor and
needy, setting up basic amenities for regions around our establishments, besides taking measures for safeguarding
the environment. The CSR report gives a detailed presentation of the initiatives taken up. This is also indicative
that KNP is transparent about its proceedings as it highlights the achievements and further course of improvement
in some areas. It is my belief that if we are aware of our environment around us and we contribute to their social
causes, we will go a long way in running our business effectively and profitably. There are sections of society
which need assistance from corporate like us. I feel that it is not only financial contribution which they seek. The
time, we as employees spend with the needy, meet them periodically or lend them a patient ear will also make a
difference. Thus, we must volunteer to participate in several activities and initiatives undertaken.
There has to be constant urge to come up with interventions that will bring long term benefits, inclusive growth
and sustainability. Our constant endeavor must be to spread the message of goodwill, bring a smile to the face of
the deprived, and be committed to the welfare of the society and show care and concern.
This participation will definitely go a long way in branding the organization and creating an awareness about the
significance of Corporate Social Responsibility !

H. M. Bharuka
Managing Director
Kansai Nerolac | Social Responsibility Report 2009-10 3
About the Company

K
ansai Nerolac Paints Limited (KNPL), formerly known as Goodlass Nerolac Paints
Ltd. with headquarters in Mumbai, was established in 1920. With 90 years of strong
presence in the paint industry, KNPL offers a comprehensive range of products both in
Industrial and Decorative businesses. Over the years, company has enjoyed market leadership
in industrial and powder coatings with a clear dominance in automobile segment and good
standing in architectural coating business. Decorative segment comprises of products like fillers,
primers and topcoats both for interiors and exteriors. Industrial segment comprises of products
like primers (including CED), topcoats (solids and metallic), clear coats, thinners, fillers and
powder coatings.

KNPL operates through 70 sales locations, over 11000 dealers and 5 factories. The manufacturing
operations are extended across the country with state of the art factories located in Bawal in
Haryana, Lote in Maharashtra, Jainpur in UP, Chennai in Tamil Nadu and a new one at Hosur
in Tamil Nadu.
Kansai Paint Co. Ltd. of Japan, one of the top ten paint companies in the world holds 69.27%
equity of KNPL. With technical tie-ups with reputed foreign collaborations, KNPL leverages
their technical expertise for high performance and sophisticated coatings.
The total strength of employees is over 2000, spread across the corporate office, manufacturing
plants, divisional and area offices. KNPL is a professionally managed company with a young
and vibrant team with an average age of employees as 34 years. Several people related
initiatives like Talent Management Process, Competency Framework, Operator Development,
have been implemented for developing the people as future managers and leaders in the
organization.

4 Kansai Nerolac | Social Responsibility Report 2009-10


The company enjoys market leadership
in industrial and powder coatings with a
clear dominance in automobile segment
and good standing in architectural coating
business.

At KNPL, a series of IT related initiatives have been embarked upon in all functional domains,
covering aspects of Customer interaction, Sales Team Interaction, Product development,
financial supply chain, Manufacturing, vendor management, Supply Chain, Warehousing
and distribution, Knowledge Management, Document management, Process Monitoring
and Control and Governance.
The organization has always been at the forefront in introducing new products and
technologies in the paint industry. Several initiatives have been taken in eliminating use of
hazardous materials in paints and making the products environment friendly through the
Lead Free (no lead added) Campaigns and launch of Eco friendly products. In fact, KNPL
has been the pioneer in introducing lead free (no lead added) paint.
With wide diversity related to multi plant and multi-locational presence in India, KNPL has
a set of corporate values across the organization and is committed to the Environmental,
Health, Social and Ethical causes.
The CSR activities are executed through a Charitable Trust, which was formerly established
to ensure accessibility of funds for various projects and activities undertaken.
During the year 2009-10, several initiatives have been taken across different locations. KNPL
releases the CSR report every year and this one is for the year 2009-10. For any clarification
on the report or its contents, please write to press@nerolac.com.

Kansai Nerolac | Social Responsibility Report 2009-10 5


Objectives, Vision, Mission
Statement

CSR Objectives
“To position Kansai Nerolac as a socially active Corporate Citizen and leverage the activities
in media, to gain maximum visibility for the cause and company, involving employees
through volunteering, wherever possible.”

Vision
KNP is gaining from the positive changes triggered by the fast growing economy in
India. The ‘India shining’ story is likely to continue in the years to come. Conscious of
our responsibility towards the society, we stand committed to invest in neighborhood
communities, more and more and improve the quality of life and inculcate a sense of
well-being amongst the people, settled around.
The Corporate Vision of CSR goes like this, “To behave fairly & responsibly contributing to
sustainable economic development and improving the quality of life in the neighborhood,
in the process maximizing stakeholders’ value.”
• Accountable for impact on stakeholders – work force, their family, the local community
and society at large
• Improving the quality of life of the neighborhood in ways good for development for
impact on stakeholders – work force, their family, the local community and society at
large

Mission Statement
“To contribute positively to the development of the society, by acting as a good neighbor,
considerate of others, playing the role of a good corporate citizen with passion and
compassion.”

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CSR Policy

KNP will make a positive contribution


to society by targeting social and
cultural issues, maintaining a
humanitarian approach, focus on
areas in and around our factories and
areas of operations.

K
NP, is a socially responsible organization, while transacting business, will adopt
fair and just means, that meet the norms of Corporate Governance.

KNP will make a positive contribution to society by targeting social and cultural
issues, maintaining a humanitarian approach, focus on areas in and around our factories
and areas of operations.

KNP will lend a helping hand to the society in which it operates, covering areas of health,
education, preservation of environment and community development.

KNP believes that good neighbors are considerate of each other, are inter-dependent and
believe in partnering in times of trouble.

As far as possible, KNP will encourage its employees to render support in the areas of
social activities, make them participate in the CSR initiatives at the Company level and
recognize their work and contribution to the society.

Most of the activities will be carried out


through the GNP Charitable Trust. KNP will
contribute 0.4 - 0.5% of its net profit annually,
to the corpus of the Trust, in order to carry out
its activities from the interest earned of the
accumulated fund.

H. M. Bharuka
Managing Director

Kansai Nerolac | Social Responsibility Report 2009-10 7


Triple Bottom Line

T
he concept of “Triple Bottom line” (TBL) is catching up fast in the corporate sector,
which measures overall performance of the company based on its combined
contribution to economic prosperity, environmental quality and social capital. TBL
focuses, not just on the economic value added, but also on the environmental and social
value impacted-positively or negatively. Such reporting for the corporate will increasingly
become essential in coming times. At Kansai Nerolac, our effort to publish Annual reports
on CSR & Environment (ER) is a positive step taken in this direction.

The CSR covers four core areas like social responsibility, business responsibility,
environmental responsibility & stakeholder involvement.

Social responsibility
Kansai Nerolac has imbibed the importance of human rights, and has taken several
initiatives towards employee welfare, protection of consumers’ interest, and socio-
economic progress for the stakeholders around us.

Business responsibility
KNPL has a strong Corporate Governance focus, and meets the statutory & legal
compliances. With a Customer centric approach, the organization has made huge
investments in R&D, and works towards meeting the needs and requirements of customers
across all segments.

8 Kansai Nerolac | Social Responsibility Report 2009-10


CSR covers four core areas like social
responsibility, business responsibility,
environmental responsibility and
stakeholder involvement.

Environmental Responsibility
The agenda for KNPL has been to manufacture environmental friendly products. We
have been proactively involved in eliminating use of hazardous materials in paints and
making the products Environment friendly through the Lead Free (no lead added) and
Eco friendly products.
All our automotive coatings meant for passenger cars and decorative product formulations
are free of lead. The factory locations work for safe disposal of hazardous solid waste
& reduce the same every year. Measures for preventive & precautionary control of
environment pollution are taken to minimize the pollution load. Waste reduction is strictly
followed & demonstrated.

Stakeholder Involvement
We propagate principles and ethical values enshrined in the organization to the
stakeholders. Wherever possible, we do encourage employees to volunteer for carrying
out CSR activities.

The organization has embarked upon the path of CSR in order to broaden the corporate
goals of profitability by adopting social trusteeship as a desirable objective. Set of policies,
vision, mission is integrated in business operations & decision making processes to
achieve this objective.

The CSR report presented here covers Community & Social Responsibility activities &
investments.

Kansai Nerolac | Social Responsibility Report 2009-10 9


Areas of Focus

Environment Heath
Preservation

Areas
of
Focus
Community Education
Development

E ssentially, CSR focuses on four core areas of Health, Education, Community


Development and Environment Presentation.

Activities 2009-10

The CSR concerns taken up by KNPL are pertinent in the current scenario and have
been supported by employee volunteers at different locations wherever viable.
Employee involvement in these initiatives is beneficial as it builds up a positive
image for the company, and creates a sense of pride amongst them.
The report has a coverage of activities undertaken. The distribution of expense in
areas of focus is given below in the pie chart.

% OF EXPENSE HEAD WISE % OF EXPENSE HEAD WISE


(2008-09) (2009-10)

4 1
10

23
22
48

25 67

Health Community Development Health Community Development

Education Environment Preservation Education Environment Preservation

10 Kansai Nerolac | Social Responsibility Report 2009-10


How we operate

How
we
operate

I
n the beginning of the financial year, the Annual plan of the CSR initiatives is
finalized. The plan covers details of all the activities to be carried out in the four
domains of Environment, Health, Education and Community Development.

The activities are evaluated for its relevance and a budget/ schedule is assigned. The
locations, and Corporate office carry out the planned programs in the scheduled quarter
by involving external agencies or on their own. Wherever required, volunteers are
deployed for conducting the activity.

The activity once completed is documented and reviewed periodically. The CSR
team also gets proposals or identifies activities at local level and on merit decides to
participate, once approved by the Trustees.

Focus Objective Process


I Identify CSR Activity I Establish process I Collect details & assign
responsibility
II Define scope of II Align with core area
activity II Review details
III Assess & review
III Look at alternatives approaches/ III Team briefing
deployment
IV Identify resource IV Consensus on action
requirements/ Allocate IV Plan & develop plan
budget Approach
V Direction to volunteers
V Execute the activity V Deploy approaches

Kansai Nerolac | Social Responsibility Report 2009-10 11


Health

Program Vision

T
he objective is to support various activities towards improving and generating
awareness about general health & primary health care to the general masses, and
the people residing within the vicinity of our plants.

Activities
It is important to create general awareness about health issues, especially in the rural
areas. We have been focusing on ways to address various health issues faced by the
people in areas where our manufacturing units are located. Various activities are carried
out to address the health related issues faced by all segments of society. This is done

Activities
• Medical Camps
• Provide support for Eye care centre
• Supporting institutions/hospitals caring for patients
• Medical care facilities

12 Kansai Nerolac | Social Responsibility Report 2009-10


We have been focusing on ways to
address various health issues faced
by the people in areas where our
manufacturing units are located.

through the support of doctors/ NGOs within the vicinity of our plants and coordinated
by our employees.

Key Activities

Free Medical Health Check Up Camp at Jainpur


The main aim of Medical Health Check Up Camp was to provide Medical consultation
& advice by specialist doctors and conduct pathology tests for the villagers of Mati
village, and poor people who were not able to afford Medical Services and also were
not aware of the diseases.

Free Medical Health Check up Camp in Mati Medical Camp inaugurated by local
Village Administrative Authorities

Kansai Nerolac | Social Responsibility Report 2009-10 13


Eye Camp organised by Perungudi Factory
Kansai Nerolac Paints Ltd, Perungudi Factory organised a “Free Eye Screening Camp”
at Bharath Dass Matriculation Higher Secondary School, Perungudi with the support of
Dr. Agarwal Eye Hospital & Lions Club of Chennai Eden Dist 324 A-1.
The camp was well attended by the local residents and around 350 persons were
screened. The beneficiaries were extremely satisfied with the “personal care” each one
of them experienced & thanked the
organisers for the arrangements.

Interview with the Press:


Mr. P. Prakash, Works Manager
of the Kansai Nerolac Perungudi
factory in an exclusive interview
with the press said “It gives us
immense satisfaction to provide
such Healthcare benefits to our Beneficaries at the camp
neighbouring residents. At Kansai
Nerolac, we operate with the
concept of a “Triple Bottom Line”
- meaning company’s focus will
be towards Economic Prosperity
(Profit), Environmental Quality
(Planet) & also Social Capital
(People). We believe in carrying
out activities ourselves rather than Employee Volunteers at the camp

14 Kansai Nerolac | Social Responsibility Report 2009-10


We believe in carrying out activities
rather than being just a mere funding
agency.

being just a mere funding agency. The active part taken by our employees in organising
this camp is proof enough”.

Mr. S. Rajasekaran, HR Manager Kansai Nerolac added “we are comitted to the
Society we operate in... we have more plans in the coming year & will conduct similar
programs for the betterment of our local residents. As a part of our Corporate Social
Responsibility (CSR) plan, our company is regularly engaged in carrying out such
activities at various locations across our country….we touch people’s lives “not only
through our Paints”..”.

Participation in AIDS Awareness Camp by Bawal


KNPL,in association with one of the NGOs in Rewari, Bawal unit participated in a
Rally flaged off by the DC. Slogan and Poster competition was also organized on this
day.

Letter of Appreciation AIDS clipping in


given to KNPL Bawal factory the newspaper

Kansai Nerolac | Social Responsibility Report 2009-10 15


KNPL provided financial assistance
to the Lions Club of Parshuram by
sponsoring the Health Camp at Lote /
Awashi areas.

Support for Health Camp for Senior Citizens by Lote Factory


Lions Club of Parshuram (a branch of well known NGO Lions Club International) had
requested for financial assistance for sponsoring the Health Camp at Lote / Awashi
areas. The camp comprised of various tests like blood sugar, eye check up and bone
marrow. The camp was aimed at Senior Citizens.

Health Camp organised by Bawal Factory

Health Camp at Bawal

Participation by local residents at the camp

16 Kansai Nerolac | Social Responsibility Report 2009-10


Free Medical Camps were organized
between December’09 and March’10
at 22 depots. A total no. of about
1000 people participated in this camp
through 268 dealers.

Health check-up by the Specialists Camp at one of the Depots

Medical Camps at Depots


Free Medical Camps were organized between December’09 and March’10 at 22
depots. A total no. of 1000 people
participated in this camp through 268
dealers. The check ups included eye
test, height and weight measurement,
blood sugar tests and were conducted
through certified medical specialists.

Sri Shanmukhananda Fine Arts


& Sangeetha Sabha requested for

Kansai Nerolac | Social Responsibility Report 2009-10 17


Kansai Nerolac Paints Ltd. provided
financial assistance for facilitating
complete treatment to Thalassaemics
so that they can lead a normal life.

financial assistance to provide proper


medical treatment and facilities for
poor and needy patients who visit
the ‘Nerolac Dialysis Center’ and
‘Nerolac Eye Care Center’. Financial
help was provided so that free /
subsidized medical assistance can
be provided to the low income
groups.

Financial Assistance was given to


Nerolac Team with Shanmukhananda Members
Shri Ram Krishna Sewa Sadan Trust
for treatment of cancer patients.

Thalassaemic Children Welfare Association, is an organization affiliated to Federation of


Indian Thalassemics, New Delhi and Thalassemia International Federation – Nicosia(Cyprus)
which works towards fighting against culminating this disease. Kansai Nerolac Paints Ltd.
provided financial assistance for facilitating complete treatment to Thalassaemics so that
they can lead a normal life.

Udaipur based Narayan Seva Sansthan Trust received donations from the organization
towards surgery of handicapped children affected by Polio. This has enabled the affected
patients to get treated and make them physically capable to walk on their feet.

Financial assistance was provided to ENT Charitable Trust towards treatment of ailments.

18 Kansai Nerolac | Social Responsibility Report 2009-10


Education

Program Vision

K
NPL has been supporting education related projects in the neighbouring villages
around our factories. There has been a focus on educating girl child & children
residing at these locations.

Activities
KNPL understands the significance of education and has been working with educational
institutions to impart education to children particularly residing in backward areas. The
goal is to work towards socio- economic development of the weaker sections of the
society.

Key Activities

Financial Assistance was provided to the Bombay Community Public Trust for e- teaching
aid projects for vernacular schools in Maharashtra. This aims at training the teachers in
English language through the means of technology. The contribution made will help in
the cause of improving literacy of the poorer sections of the society.

Donation was provided to Kherwadi Social Welfare Association(KESWA). One of the


main activities of KESWA is Yuva Parivartan which provides vocational training and
assists students for self employment. This focuses more on school drop outs from high
schools who may not get the opportunity for joining any training institute.

Kansai Nerolac | Social Responsibility Report 2009-10 19


Distribution of 100 School Bags to
School Children was done at Nabipur
Primary School in Kanpur Dehat area.

Snehalay Trust
The organization provided support to
Snehalaya Trust which provides shelter
and education to ensure rehabilitation
of children from red light areas.

Financial Assistance was provided


to the United Educational & Social
Welfare Trust which runs special
school for the severely disabled
orphaned children and provides School bags distribution to the needy school
going children
education and vocational training to
them.

Distribution of School Bags at Jainpur


Distribution of 100 School Bags to
School Children was done at Nabipur
Primary School, in Kanpur Dehat area.
The main idea was to support and
promote the importance of education
and to motivate the school children,
who were deprived of the basic
amenities. School children at the Program

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Representatives from KNPL in
association with Local Tahsildar
and Proj. Director of NHAI took up
the initiative of provision of basic
infrastructure at P.U.M school.

Activities at Hosur
P.U.M. School is a small corporation school situated in Moranapalli village of Hosur
approx.1.5 kms from the Hosur factory premises. The school lacked basic amenities.
In this regard, representatives from KNPL in association with Local Tahsildar and
Proj. Director of NHAI (National Highway Authority of India) took up the initiative of
provision of basic infrastructure at the school.
• A water tank of 1000 litres was provided for the school kitchen along with a water
pipleline with 4 water taps.
• A 500 litres water tank has been fixed for providing toilet facility for children.
• Floor leveling of the main gate of the school has been done, thus helping to lock the
gate properly and there by improving safety.

Pipeline work & Overhead Tank (500Ltr) & Taps fixed at the School to Our Employees with the Area
provide water facility Education Officer, handing over
chocolates & sweets

Kansai Nerolac | Social Responsibility Report 2009-10 21


Community Development

A
s a responsible corporate citizen, KNPL has been supporting programs for the
upliftment of the society as a whole. Through our initiatives, we aim to provide
basic facilities to the community around our manufacturing locations so that
there can be a sustained improvement in their living standards.

Key Activities

Financial assistance was given to Mumbai based Our Lady’s home, an orphanage for boys.
The residential institutition works towards helping the needy in the field of education and
self employment.

Financial help was given to Jeevan Sandhya Mangalya Sansthan Trust for providing basic
facilities to old age home residents.

Contribution rendered by KNPL to Jeevan Sandhya Mangalya Sansthan Trust

22 Kansai Nerolac | Social Responsibility Report 2009-10


Distribution of 200 blankets to the
underprivileged and poorer section of
the society was carried out at Bewan
Village, near Jainpur.

Distribution of Blankets to
Underprivileged
CSR activity of ‘Distribution of 200
Blankets’ to the underprivileged
and poorer section of the society
was carried out at Bewan Village,
near Jainpur in the wake of
unprecendented cold waves hitting
the Northern region of India.
The main objective was to extend a
helping hand to the needy persons, Distribution of blankets to old and needy

Activities

• Self employment to the needy


• Drinking water facility to villages
• Public facilities
• Support old age homes

Kansai Nerolac | Social Responsibility Report 2009-10 23


Two hand pumps were installed in
Nabipur and Jainpur. The aim was to
provide solution to persistent water
scarcity issues at villages.

who were deprived of the basic warm wear to protect themselves from the severe
cold.
The Chief Guest of the event was Mr. S. P. Anand ( ADM ), who appreciated the
efforts of the organization in providing the basic needs of the society, under such
severe conditions.

Installation of hand pumps in villages of Jainpur Dehat

Two Hand Pumps were installed in Nabipur and Jainpur, nearby villages of Jainpur
factory .

The aim was to provide solution to persistent ‘ water scarcity’ issues at villages.
The valuable contribution from our Operators towards allocating a suitable place
for installation was appreciable.

Hand Pumps installed at Nabipur & Jainpur

24 Kansai Nerolac | Social Responsibility Report 2009-10


Environment Preservation

Program Vision

T
he organization is well aware of the environmental concerns and through CSR
initiatives, works towards initiatives for conservation of water resources and
provide clean and green environment.

Key Activities

Vireshwar Mitra Mandal Seva Sanstha had approached us for helping them in their
social cause of increasing awareness about environment by displaying Environment
related boards to make people aware of environment aspects such as hazards of using
plastic, waste management.

Chiplun’s Navkonkan Education Society had requested for providing financial


assistance for creating awareness on environmental aspects by displaying the board
on Mumbai Goa Highway for indicating temperature, humidity ,slogans on road safety.

Kansai Nerolac | Social Responsibility Report 2009-10 25


Summary of CSR expense

The summary of expenses for the year 2009-10 is provided below (Figs in Lac):

Health Education Community Environment Total


Development Preservation Expenses

Share of Expense 27.31 4.23 8.81 0.50 40.85

Health Community
27.31 Development
8.81

+ =
Total
Expenses
40.85
Environment
Education
Preservation
4.23
0.50

26 Kansai Nerolac | Social Responsibility Report 2009-10


From the Vice President’s Desk

Our endeavor is to inspire maximum


involvement in the process by which
we carry out the activities for social and
environmental causes.

C
onsidering the social environment that
we work in, it makes social, political,
commercial, moral, in fact all kinds of sense
for organizations to imbibe CSR as part of their
everyday agenda. Through CSR we touch the core
issue of value systems towards the society we operate in.

Our endeavor is to inspire maximum involvement in the


process by which we carry out the activities for social and environmental causes. We
have made all efforts to first communicate and inform organization members about the
CSR activities carried out and to convincing them to participate in the same. Last year
has seen a significant increase in the involvement of employees across all levels in the
CSR initiatives and will help our objective of a wide impact on a sustainable basis.

S.S.Dikhale
Vice President - HR

Kansai Nerolac | Social Responsibility Report 2009-10 27


NEROLAC HOUSE, GANPATRAO KADAM MARG, LOWER PAREL, MUMBAI - 400 013