A STUDY ON EMPLOYEE WELFARE MEASURES AND ITS

INFLUENCE ON PERFORMANCE OF HINDUSTAN LATEX

LTD ( HLL)

PROJECT REPORT

Submitted to Mahatma Gandhi University in partial fulfillment

of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

NEETHU TERESSA THOMAS

Reg. No. 190031000673

Under the guidance of

MS.JERLY AKKU CHERIAN

Faculty Guide

Accredited by NAAC with ‘A’ Grade

DEPARTMENT OF MANAGEMENT STUDIESMAR ATHANASIOS

COLLEGE FOR ADVANCED STUDIES TIRUVALLA

2021

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 MAR ATHANASIOS COLLEGE
FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323 Fax: 0469 2730317 macfast@macfast.org

www.macfast.org

CERTIFICATE

This is to certify that the project report entitled “A Study on employee welfare
and its influence on performance of Hindustan Latex Ltd (HLl)”is a bonafide
report of the project work undertaken by MS. Neethu Teressa Thomas, fourth
semester MBA student of our college during a period of 8 weeks commencing
from 1st April to 30th May,2021.

Mrs. Jerly Akku Cherian Dr. Sudeep B. Chandramana

Faculty Guide Head, Dept. of management Studies

Rev. Dr. Cherian J. Kottayil - Principal University Examiner

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 DECLARATION

I hereby declare that this project report on study on employee wlfare and its influence on
performance of Hindustan Latex ltd( HLL)” is a bonafide report of the study undertaken by
NEETHU TERESSA THOMAS, under the guidance of MS JERLY AKKU CHERIAN,
Department of Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other University or Institute
for the award of any degree or diploma.

Place : Thiruvalla

Date : 31.05.2021 Neethu Teressa Thomas

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 ACKNOWLEDGEMENTS

First and foremost, I thank the Lord Almighty, for his perpetual shower of
blessings, which led to the successful completion of my project.

I take this opportunity to express my deep sense of gratitude to all those who have
helped me throughout this project. It gives me immense pleasure to acknowledge
all those who have rented encouragement and support for the successful
completion of this work.

I express my profound gratitude and sincere thanks to

Rev.Dr.CherianJ.Kottayil, Principal of MACFAST, Tiruvalla.

I express my heartfelt thanks to Dr. Sudeep B. Chandramana, Head of

Department of Management Studies, MACFAST, Tiruvalla for giving the
inspiration and valuable suggestions for carrying out this endeavour.

I express my deep sense of gratitude to Ms Jerly Akku Cherian, the faculty

member of department of management studies, MACFAST, for encouraging and
inspiring me for developing the project.

My project work involves many people at different stages. I would like to thank
all those who have directly or indirectly contributed to the success of the project.

I also take this opportunity to express profound gratitude to my parents, family

members, friends and several people who have contributed for the successful
completion of the project. It is my duty and pleasure to acknowledge them.

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 LIST OF FIGURES

Fig.No Title PageNo

1 Employee welfare objectives 63

2 Employee welfare activities 65

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 ABBREVIATIONS

HLL: Hindustan Latex Ltd

HSCC : Hospital Service Consultancy Services

HCD : HiCare Division

GBD : Governmant Business Division

RBD : Retail Business Division

WHD : Women’s Health Care Division

VBD : Vending Business Division

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 CONTENTS
Page No.

ACKNOWLEDGEMENT (i-ii)

LIST OF TABLES (iii- iv)

LIST OF FIGURES (v)

ABBREVIATIONS (vi)

S
l CHAPTERS
.
N
o
.
01. Introduction – Statement of the Problem

1.1 Background of the Study 11-12

1.2 Statement of the Problem 12-13

1.3 Relevance & Scope of the Study 13-14

1.4 Objectives of the Study 14-15

02. Industry Profile

2.1 Business Process of the Industry 16-30

2.2 Market Demand & Supply – Contribution to GDP – Revenue Generation 34-31
2.3 Level and Type of Competition – Firms Operating in the Industry 34-39
2.4 Pricing Strategies in the Industry

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 2.5 Prospects and Challenges of the Industry 40-41

2.6 Key Drivers of the Industry 42-45

45-47

03. Review of Literature

3.1Brief Theoretical Construct related to the Problem 49-52

3.2 An Overview of Earlier Studies 52-55
3.3 Uniqueness of Research Study 55-57

04. Methodology of the Study

4.1 Research Approach and design 59-60

4.2 Sources of Online Data 60
4.5 Report Structure 60
4.6 Limitations of the Study 61-62

05. Discussion

5.1 Observations by the Candidate from Literature Review –Comparisons 63-65

5.2 Logical Conclusions related to the Business Problem 65-71

06. Findings of the Study 73

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 07. Conclusions 75

76
Bibliography

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 CHAPTER – 1
INTRODUCTION –STATEMENT OF THE PROBLEM

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Background of the study
Employees welfare includes various facilities, services and amenities provided for improving
their health, efficiency, economic betterment and social status of the workers.The Welfare
measures will improve the physique intelligence, morality and standard of living of the workers,
which in turn will improve their efficiency and productivity. Employees 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's welfare is to develop personality of the
workers to make a better workforce. Welfare schemes it create efficient, healthy, loyal and
satisfied labor force for the organization. Providing such facilities make their work life better and
leads to good standard of living. The present study focus on employees welfare measures and
what are the various statutory provisions and agencies protecting the welfare of employees

Industrial progress of a country depends on its committed labour force. In this regard the
importance of labour welfare was recognized as early as 1931 when the Royal commission on
Labour stated that the benefits which undergo this nomenclature are of great importance to the
worker who is unable to secure by themselves. The schemes of labour welfare may be regarded
as a wise investment which usually brings a profitable return in the form of greater efficiency.

Employee welfare means “the efforts to make life worth living for workmen.” According to
Todd “employee welfare means anything done for the comfort and improvement, intellectual or
social, of the employees over and above the wages paid which is not a necessity of the
industry.”Employee welfare facilities in the organization affects on the behavior of the
employees as well as on the productivity of the organization. While getting work done through
employees the management must provide required good facilities to all employees.The
management should provide required good facilities to allemployees in such way that employees
become satisfied and theywork harder and more efficiently and more effectively

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Welfare is a broad concept referring to a state of living of an individual or a group, in a desirable
relationship with the total environment – ecological economic and social. It aims at social
development by such means as social legislation, social reform social service, social work, social
action. The object of economics welfare is to promote economic production and productivity and
through development by increasing equitable distribution. Labour welfare is an area of social
welfare conceptually and operationally. It covers a broad field and connotes a state of well being,
happiness, satisfaction, conservation and development of human resources.

1.1 Statement of the problem

If the employees are satisfied with the provided welfare measures. The welfare measures of the
employees are essential because of the nature of the industrial system. Today workers are an
essential contributing to the growth of the organization. Several HR aspects controls an
organization and where the employee’s welfare measures is major factor stabbing the employees
life who are working in the organization. Once the employees are satisfied with the facilities
offered by the organization, gradually the output will increased. This study analyses the various
dimensions of labour welfare measures that are perceived by the employees. It highlights the
perception of the employees regarding the various welfare measures provided to them.

1.2 Relevance & Scope of the Study

The purpose of employee's welfare is to develope personality of the workers to make a better
workforce. Welfare schemes it create efficient, healthy, loyal and satisfied labor force for the
organization. Providing such facilities make their work life better and leads to good standard of
living.

The quality of well-being that employees of a specific company enjoy is a reliable measure of the
health of that company as a whole. To keep a workforce mentally and physically healthy comes

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down to several types of services, as well as benefits. There are a few things an employer can do
to be mindful of employee welfare.

Scope of Labour Welfare

Conditions of Work Environment: These comprise of the situations that the workers face while
working such as hygiene and cleanliness, aeration, humidity, removal of dust, gases, smoke and
fumes, illumination, comfort and ease while working, posture while working, sitting
arrangement, time allocation of work, provision for breaks and rest and worker’s security
measures.

Health Services for Workers: They comprise of medical examination of workmen, health centre,
dispensary or clinics in the factory for treatment of the workmen, child welfare, education for
women, fun activities for workmen and education, etc.

Labour Welfare Programme: These include factory council made up of worker’s and employee’s
spokespersons, vocational testing and interview, departments taking care of social welfare,
hiring, follow-up, worker’s arbitration council and research bureau.

Economic Welfare Programme for Labours: These consist of cooperative stores for customer
needs; cooperative societies for credit, banking facilities, health cover, employment agency, etc.

General Welfare Work: This comprises relief and fun activities, safeguarding homes for older
people, legal and medical help to the deprived for free, social casework to handle the unlawful
activity and child care.

1.3 Objectives of the study

The main objectives of this research are to highlight the benefit ofemployee welfare
implementation in theHindustan Latex limited by are:

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 To identify the relationship between laboue welfare measure and employees commitment

 To analyse the labour welfare measure and its relationship with employees commitment
to Hindustan Latex Ltd.

 To study the opinion about the various welfare measures provided to the employees

 To study the employees opinion about awareness of saftet measures in the organization

 To study the effectiveness of welfare facilities among employees•

 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 condition of living of the workers.

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

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CHAPTER – II
INDUSTRY PROFILE

2.1 Business Process Of The Industry

A company aimed at realizing the government’s family planning programme, HLL Lifecare
Limited started as a manufacturer of natural rubber latex . The foundation paved the way for a
big dream that was in a nascent stage, aimed at changing the lives of a number of people. And as
HLL metamorphosed into a nation’s brand, the dream grew by leaps and bounds. The company
spread its wings to diversify into a healthcare major, with great emphasis over healthcare

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services. As the company successfully completes 50 years of consistent quality performance,
HLL is entrusted with greater responsibilities – the affordable pharmacy network across the
nation, healthcare services outlets, vaccine security of the nation, the medical devices park and
much more. It’s no wonder that, at HLL, work is really about ‘innovating for healthy
generations’, each day.

HLL commenced its commercial operations on April 5, 1969 at Peroorkada in

Thiruvananthapuram in the state of Kerala. HLL today has seven state-of-the-art manufacturing
plants which are Peroorkada in Thiruvananthapuram, Kerala for contraceptives, Kanagala near
Belgaum in Karnataka (1985) for contraceptives and pharmaceutical products, Akkulam in
Thiruvananthapuram, Kerala (1994) for hospital products, Kakkanad in the Cochin Special
Economic Zone, Kerala (2004) for female condoms and male condoms (export), Manesar in
Gurgaon, Haryana (2007) for rapid in-vitro diagnostic test kits,Indore in Madhya Pradesh
(2010) for pharma and women’s healthcare products and Gajwel in Medak, Andhra Pradesh
(2012) for condoms. All these units have ISO 9001, ISO 14001 - quality and environmental
management system certifications. HLL’s Peroorkada, Akkulam and Kanagala plants have
OHSAS 18001 certification for efficient occupational health and safety management system. The
testing laboratory for finished products at Peroorkada Factory has NABL accreditation under
ISO/EC 17025.

Production facilities :

1. Peroorkada Factory, Trivandrum ( PFT )

2. Akkulam Factory, Trivandrum ( AFT)
3. Kanagala Factory, Belgaum( KFB )
4. Kakkanad Factory, Cochin( KFC )
5. Manesar Factory, Gurgaon( MFG )
6. Pharma Factory, Indore (PFI)
7. Irapuram Factory, Cochin (IFC)

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Business Divisions

Marketing
HLL’s large marketing network has been delighting its customers over the last two decades.
Servicing 200000 retail outlets, covering 3500 hospitals, reaching over 30000 medical
professionals, it has over 2800 stock points, 700 frontline team members placed in every town,
with offices in all metros and mini metros, and reaches over 400000 villages in India. HLL is
also one of the leading social marketing organisations in the country in the area of contraceptives
- with a market share of over 70 percent in the rural and semi-urban markets. On the global front,
HLL brands today reach more than 115 countries.

With two decades of dedicated efforts in brand building and market development, HLL has
developed a sound marketing infrastructure and introduced an extensive range of its
contraceptive, hospital and healthcare products in the domestic and global markets.

Consumer Business Division (CBD)

CBD product mix includes a range of world-class products reaching its customers through a
network of 5000 stockists and over 500,000 retail outlets, comparable to any of the leading
FMCG companies in India. HLL is also one of the largest Social Marketing Organisations
(SMO) for the Ministry of Health and Family Welfare (MoHFW), ensuring sales of over 70
percent of the Government of India brands - Deluxe Nirodh and Mala-D nationally, and FC2 -
nitrile female condoms, to the vulnerable and high-risk groups of women, under the programme
initiated by National Aids Control Organisation (NACO).

HiCARE Division (HCD)

HiCARE Division offers a wide range of critical hospital products and services to healthcare
professionals in the field of transfusion services and advanced patient care. The product range
includes Blood Collection Bags, Surgical Sutures, Hydrocephalus Shunts, Tissue Expanders,
Surgical and Examination Gloves, Blood Transfusion Sets, Intravenous Sets and Blood Banking

17
equipment. HCD has a strong team servicing over 20000 medical professionals directly as well
as reaching to over 3500 hospitals in India.

Women’s Healthcare Division (WHD)

WHD offers a whole range of women’s healthcare products with a promise to provide total
healthcare for women of all ages addressing their social, mental and physical well-being. WHD’s
product basket includes - Contraceptives, Ovulation Inducers, Antiemetics, Menstrual Cycle
Regulators, Antifibrinolytics, MTP Pills, Pregnancy Test Kits, Natural Products and Vaccines. It
has a strong distribution network, reaching out to over 13000 gynaecologists across India.

Our flagship brand Novex-DS is being promoted for the long-term management of Dysfunctional
Uterine Bleeding (DUB) which, as a novel non-steroidal drug, has gained acceptance among
gynaecologists. A post-marketing surveillance study is being conducted at multiple centres
across the country to make it into a INR.2.23 crore brand during the financial year 2010-11.

HLL has also entered in to a tie-up with Arya Vaidya Sala Kottakal, a renowned company in the
field of Ayurveda, and through their association launched an innovative product for the secretion
of milk in lactating mothers at All India Congress of Obstetrics and Gynaecology (AICOG)
conference at Jaipur in Januray 2009. A range of ayurvedic products for the health of women are
in the pipeline.

International Business Division (IBD)

HLL is aiming to be a global leader in the area of contraceptives and healthcare products. The
IBD manages the distribution of HLL's products to over 115 countries. HLL has also made
inroads into Peru in South America for its Non-steroidal Contraceptive Pill marketed under the

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brand name Ivy femme. HLL supplies its products to world bodies such as the UNFPA, PSI,
Mission Pharma, IPPF and IDA, in addition to various governmental procurement organizations.

Government Business Division (GBD)

The Government Business Division (GBD) partners with the Union and State Governments in
India for their requirements of contraceptives and hospital products under the National Family
Welfare Programme (NFWP) and the National Rural Health Mission (NRHM).

Vending Business Division (VBD)

HLL Vending Business Division is offering solution for retailing and making available range of
HLL’s - quality healthcare products / Sanitary Napkins / Condoms etc., products through state-
of-art Vending machines. HLL is developing franchisee based operations across the country to
promote female Sanitation, promote family planning and control HIV/AIDS.

Retail Business Division (RBD)

The Retail Business Division (RBD) of HLL is the youngest business division of HLL and is into
the Retail Pharmacy business. The Retail Pharmacy Chains- AMRIT, AMRIT Deendayal
Pharmacies, HLL Pharmacies & Surgicals, HLL Opticals, Free Generic Pharmacies (FGP) and
Janasanjeevani stores etc. are a few of their brands to name. Through their various outlets RBD
dispense all kinds of medicines, surgical implants and consumables, Opticals and ophthalmic
products, Generic drugs etc. at significant discount to MRP.

SERVICES

HLL Lifecare Limited (HLL) provides a range of services viz. Infrastructure Development,
Procurement Consultancy, Facility Management and Health Care Services.

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Infrastructure development service offered by Infrastructure Development Division specialises in
healthcare infrastructure and facility management while Healthcare Services division offers
outsourcing partnerships to partnering institutions in the areas of diagnostic services, pharmacy
and other specialist services. Procurement and Consultancy Division which provides
procurement and consultancy services is in charge of acquiring drugs, chemicals, medical
equipment and other health sector goods for its service-users. Procurement and Consultancy
Division also procures goods for central government agencies and several medical colleges in
India on behalf of the Ministry of Health and Family Welfare. The business of HLL Lifecare Ltd.
is organized under three strategic Business units namely Contraceptives & Pharmaceuticals,
Hospital Products and Services.

Healthcare Services

HINDLABS
Hindlabs a novel initiative delivers high-end diagnostic services adding value to partner hospitals
by deploying the latest diagnostic technology and operational support. The objective is to deliver
quality services at affordable costs for the common people. Hindlabs provides professional lab
management services for both in vitro diagnostics and radio diagnosis centres in hospitals.
Pathology
Clinical pathology is a medical specialty that is concerned with the diagnosis of disease based on
the laboratory analysis of bodily fluids, such as blood, urine, and tissues using the tools of
chemistry, microbiology, hematology and molecular pathology. Our pathologists and
technologists provide laboratory result that is reliable and accurate in a timely manner.

Hindlabs Diagnostic Centres are designed to deliver reliable and quality testing services.This is
ensured by effective systems, procedures and technology right from sample collection to sample
handling, testing, quality control and reporting.
Full spectrum of laboratory test menus, both routine and specialty

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 Facility designed to comply with NABL

Latest laboratory instrumentation and techniques

Preventive Healthcare Services

Radio Diagnosis and Imaging Centres

Imaging for medical purposes involves the services of radiologists, radiographers, medical
physicists and biomedical engineers working together as a team for maximum output. This
ensures the production of high quality of radiological service with consequent improvement of
health care service delivery.
Imaging for medical purposes involves the services of radiologists, radiographers, medical
physicists and biomedical engineers working together as a team for maximum output. This
ensures the production of high quality of radiological service with consequent improvement of
health care service delivery. Medical imaging comprises different imaging modalities and
processes to image human body for diagnostic and treatment purposes and therefore has an
important role in the improvement of public health in all population groups. Hindlabs Radio
Diagnosis/ Imaging Centres deploy the latest radio diagnosis tools as per the requirements of the
hospital. Operation and maintenance of the equipment are done by Hindlabs.
Some of the equipment that can be deployed by Hindlabs are:
MRI Scanners
X Ray & CT Scanners
Ultrasound Scanners & Colour Doppler
Bone Densitometry
Mammography Systems

Tele Radiology Reporting

Healthcare facilities in the country have been battling a severe shortage of radiologists for more
than a decade now. Indeed, the demand for radiology services is skyrocketing. The rapid
evolution of faster imaging technologies such as multi-slice CT, faster MRI scanners and

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sequences, coupled with an ageing population has led to a consistent per year increase in imaging
volumes in recent years. This trend will certainly continue.

Today Teleradiology has become both global and online solution for this situation, which paves
the way for radiologists to read images from remote locations, round-the -clock. This technique
of imaging has allowed healthcare providers to tackle technology to provide quick, high-quality
and widely accessible specialist care.
With arobust network of radiologists, HLL’s Teleradiology facility is providing a comprehensive
reporting and technical solutions to various public and private healthcare organisations in India.
Through a synergy of patient focus, great people and modern technology, we can provide
Hospital and Healthcare managers flexible tailored solutions that can help to deliver shorter
waiting lists and cost savings.
The mission of HLL Lifecare is to provide world class radio diagnostic services even to rural
hospitals and diagnostic centres across the country. This is being done through its Teleradiology
centres by cutting edge technologies and with highly qualified panel of Radiologists.

Innovating for healthy generations

As a condom-manufacturing company, HLL Lifecare started small, but dreamed big. That dream
changed lives in ways unimaginable. Soon, HLL became the go-to brand for various
contraceptives. It was only a matter of time before diversification followed, bettering the brand
with healthcare products and services. After more than 30 years of consistent quality
performance, HLL Lifecare now takes on an even bigger responsibility – the vaccine security Of
the nation. No wonder then, at HLL work is about ‘innovating for healthy generations’, every
day.

As a condom-manufacturing company, HLL Lifecare started small, but dreamed big. That dream
changed lives in ways unimaginable. Soon, HLL became the go-to brand for various
contraceptives. It was only a matter of time before diversification followed, bettering the brand
with healthcare products and services. After more than 30 years of consistent quality
performance, HLL Lifecare now takes on an even bigger responsibility – the vaccine security of

22
the nation. No wonder then, at HLL work is about ‘innovating for healthy generations’, every
day.

HLL Lifecare Ltd is a Mini Ratna Public Sector Enterprise having its registered and Corporate
office is at Thiruvananthapuram, Kerala. HLL was established in 1966 with the objective of
providing quality condoms for the National Family Planning Programme. Over the last 2
decades, HLL, has transformed – from a Condom company to a Contraceptive company, then to
a Healthcare products company and now to a Healthcare delivery company. At present HLL has
7 state-of-the art manufacturing facilities and 22 regional offices across India. HLL also has
presence in more than 115 countries across the world.

Retail business division and healthcare services division (HCS)

Hindlabs

A parallel world of services exists under HLL Lifecare apart from its products.Through a chain
of Healthcare Diagnostic centres, called HINDLABS, HLL offers:

Clinical Pathology Lab services

Radio diagnostic imaging services

HINDLABS uses state-of-the-art technology to provide the most comprehensive and advanced
imaging services. The facilities are designed to comply with National Accreditation Board for
Testing and Calibration Laboratories (NABL) standards. HLL started its first Hindlabs in 2008
with pathology lab, X-Ray and ultrasound facilities at R.K.Puram in New Delhi primarily for
Central Government Health Scheme (CGHS) beneficiaries. To make the service more accessible,
HINDLABS is expanding its network by establishing collection centres around its pathology labs
in a franchisee model. HINLABS has also established Speciality clinics which are open for 24
hours and top doctors come under one roof for its super-specialty outpatient department services.
Through its various ventures, Healthcare Services Division targets market intervention to bring
down the cost of various services and products to make them affordable for common man.

23
Retail business division (RBD)

The retail business division of HLL was conceived to provide quality healthcare products at
affordable rates by setting up a network of retail pharma outlets. The retail business division
operates the following 4 models:

AMRIT

AMRIT stands for Affordable Medicines and Reliable Implants for Treatment, representing a
cost effective model of chain pharmacies. It’s a flagship programme by the Union Ministry of
Health & Family Welfare implemented by HLL, displaying a strong commitment to reduce the
cost of treatment or out-of-pocket expenditure. Lakhs of patients have been getting benefitted
from this initiative

HLL Pharmacy & Surgicals /HLL Opticals

HLL Pharmacy and HLL Opticals are comprehensive medical retail outlets, started in
partnership with State Governments / Medical Institutions, wherein all type of essential
medicines, surgical disposables, implants and ophthalmic products are provided at a discount
from the prevailing market price. It is a successful PPP (public- public partnership) model
implemented by HLL.

Free Generic Pharmacy

Free generic Pharmacy (FGP) is a delivery model of dispensing generic medicines free-of-cost in
partnership with Medical institution.

Generic Drug Stores(GDS)

24
This is a chain of drug stores established near a Government Hospital in a PPP model.
Reasonably priced quality generic medicines are made easily accessible and available through
these stores.

The purpose of business at HLL is “to provide high quality products and services at affordable
price”.

HLL’s range of products includes Contraceptives, Hospital products, Pharmaceuticals,

Ayurvedic products, Vaccines, personal hygiene products and diagnostic kits. Its range of
services includes Infrastructure Development, Procurement Consultancy and Facility
Management. HLL is positioned as a total healthcare solution provider catering to the well-being
of the society at large.

In its search for becoming a truly world-class provider of healthcare products and services, HLL
has been seeking to adapt knowledge from its partners. HLL has over the years been networking
with various corporate organizations, development agencies and NGOs by combining strengths
and capabilities of several world leaders. Some of them are listed below:

Okamoto Industries Inc. for male condoms.Female Health Company (FHC) for manufacture of
Female Condoms and its promotion.Finishing Enterprises, USA for Copper T IUD. AryaVaidya
Sala (AVS), Kottakkal, Kerala, for Natural Ayurvedic productsBharat Biotech International Ltd.,
Hyderabad for Hepatitis B and Typhoid VaccinesChengdu Institute of Biological Products,
China for supply of JE Vaccines to Government of IndiaCheng Da Biotechnology (CDBIO),
China for marketing of Human Anti-Rabies Vaccine in IndiaCycle Technologies Inc., USA for
manufacture and distribution of Cycle Beads in India and abroadMore than 300 NGOs for
implementing population stabilisation and HIV/AIDS prevention and control programmes

HLL Biotech Ltd.(HBL) is partnering with Ministry of Health and Family Welfare, Government
of India to set up a premium facility for production of vaccines for the National Immunization
Programme and other new generation vaccines. HBL has been established at Chengalpattu near
Chennai (Tamil Nadu) in Southern India. The main objective of HBL is to ensure safe and
effective vaccines at affordable prices.

25
With the Rs 5940 million project, spread over 100 acres, HBL aims to promote the vaccine
security of India.

HBL, with an annual capacity of 585 million doses, will manufacture Pentavalent combination
(DPT plus Hep B plus Hib), BCG, Measles, Hepatitis B, Human Rabies, Hib and Japanese
Encephalitis (JE) vaccines in the first phase. HBL also seeks to develop a strong R&D base for
development of futuristic vaccines, apart from manufacturing and supplying vaccines required
for the Universal Immunization Programme (UIP) of India.

HBL is a project of national importance which will ensure the uninterrupted supply of vaccines
for the UIP at affordable prices.

The state-of-the-art WHO-pre-qualified facility, the first of its kind in the public sector, will also
have the capacity to manufacture vaccines for Meningococcal, Rotaviral, Dengue and
Pneumococcal diseases in its multi-bacterial and multi-viral facilities to meet any epidemic or
pandemic situations.

HLL Management Academy

HLL Management Academy (HMA) is the Knowledge Centre of HLL and helps in building
capacities of its own employees and the society at large through well developed training and
MDP programmes. In the long run, the Academy's vision is to become an autonomous
university offering highly specialized courses in Social Marketing & Franchising, Latex
technology, Procurement Management, Clinical engineering, Reproductive Health etc.

HLL Medipark Limited (HML)

Medipark, a national level initiative of Ministry of Health & Family Welfare, Government of
India is the collaborative effort of HLL Lifecare Limited and Government of Tamil Nadu
through Tamil Nadu Industrial Development Corporation (TIDCO) to substantially enhance
domestic manufacturing of Medical devices and Equipments as part of its commitment to
provide affordable healthcare services to all its citizens. The integrated state-of-the-art

26
infrastructure facility shall strengthen the Make in India drive of the government and is aimed to
make India a “Hub” for Medical Technology products and hi-tech manufacturing.

Spanning 330 acres, Medipark is visioned as a self- contained “one stop” hi-tech manufacturing
cluster for Medical Devices and Medical Instruments integrating with industrial, commercial and
business facilities interspersed with landscaped areas.

HLL lifespring Hospital

HLL aims to provide dignified maternal healthcare at affordable costs to low-income mothers
across India through LifeSpring - constrained government hospitals and expensive private
hospital care. LifeSpring seeks to lessen the burden of rising health costs on the nation’s low-
income communities thereby increasing their disposable income.

LifeSpring is a 50-50 joint venture owned by HLL Lifecare Ltd. and Acumen Fund (a US-based
social venture capital fund). The board consists of 6 directors (including HLL's Chairman &
Managing Director), with 2 directors each from HLL Lifecare and Acumen Fund, and 2
independent directors with extensive industry experience.

The hospital’s management team consists of professionals recruited from India and the US. The
company’s corporate headquarters is located in Hyderabad in the state of Andhra Pradesh.

The mandate of the company is to operate small-sized (20 bed) maternity hospitals in the
proximity of urban slums, catering to pregnant women whose husbands work in the informal
sector and who have no health coverage. LifeSpring also provides paediatric care (including
immunisations), diagnostic and pharmacy services, and health care education to the communities
in which its hospitals are located.

The hospital currently operates 12 hospitals in the city of Hyderabad. LifeSpring plans to set up
100 hospitals across India in the next 5 years.

27
LifeSpring received the World and Business Development award recognised by United Nations
Development Programme (UNDP) in 2010. The hospital also received the Mother and Child
Healthcare Provider of the Year award from Frost & Sullivan and Leap of Faith award from ET
Now under the healthcare category.

LifeSpring chain of hospitals has been written about extensively in some of the leading national
and international magazines and journals like The Economist, Harvard Business Review, Forbes,
Outlook, India Today, etc.

HLL Infratech service Ltd

Ltd (HITES), is a company specialised for infrastructure development and procurement of

medical equipment and devices in healthcare sector.

HITES provides services in design, engineering and execution of construction projects. With
expertise in varied fields such as project and construction management, procurement,
engineering (civil, electrical, electronics, instrumentation, mechanical and bio-medical), financial
management, contract management and legal services, the team steers customers’ need of
creating state-of-the-art healthcare facilities. The major clients include Government of India,
State Governments, Government departments, Public sector undertakings and corporations and
institutions such as Employees’ State Insurance Corporation of India (ESIC), National Rural
Health Mission (NRHM), Cancer Centre, Jawaharlal Institute of Postgraduate Medical Education
& Research (JIPMER) etc.

Apart from infrastructure development services, HITES also offers facility management services.
This niche area of specialisation provides both hard and soft services including operation and
maintenance, integrated building management, housekeeping, security services, horticulture
services, warehouse management, hospitality services and other support services.

HITES also provides procurement and consultancy services to Government of India, State
Governments and other institutions for procuring a range of healthcare and hospital products,
equipment and devices. It is designated as a National Procurement Support Agency (NPSA).
With a team of highly qualified and experienced professionals it has proven expertise to

28
undertake consultancy assignments including bid process management, procurement of goods, as
well as project planning and monitoring. HITES has widened its gamut of operations to provide
wide range of procurement services with accuracy, speed and utmost transparency. Today it
extends its expertise to clients in building qualitative and reliable healthcare facilities in India
and other developing countries.

Major Expansion in the last decade

During the last decade, the company successfully forayed into many new businesses and started
new factories and offices to meet the growing needs:

 Opened new regional offices in New Delhi and Mumbai

 Rapid Diagnostic kits manufacturing unit at Manesar.
 Started LIFESPRING mother & childcare Hospital Chain for the low income population
 Opened new manufacturing facility for male and female condoms in Kochi.
 Forayed into retail marketing and opened exclusive condom shops at three locations
under the name MOODS Planet.
 Investment in Pharma. Opened pharma manufacturing facilities in Kanagala and Indore
and acquired GAPL.
 Investment in diagnostic services – Hindlabs MRI Scan Centres.
 Investment in retail outlets in pharmaceuticals and ophthalmic products- HLL Pharmacy
& Surgicals, HLL Opticals and AMRIT outlets.
 Marked entry into infra-structure development and procurement consultancy in
healthcare industry and floated HITES.
 Forayed into vaccine production, floated HBL which is constructing India’s first Vaccine
Complex
 Forayed into R&D and opened a 60,000 sq.ft state-of-the- art world class Corporate R&D
centre (HLL CRDC) at Akkulam, Thiruvananthapuram.

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  Forayed into education sector and floated HLL Management Academy.
 Set up India’s first med-tech manufacturing hub-MEDIPARK in Tamil Nadu and started
the 7th subsidiary HLL Medipark Ltd. Floated its eighth subsidiary HLL Mother and
Child Hospital (HMC)

2.2 Market Demand & Supply – contribution to GDP- revenue Generation

HLL’s large marketing network has been delighting its customers over the last two decades.
Servicing 200000 retail outlets, covering 3500 hospitals, reaching over 30000 medical
professionals, it has over 2800 stock points, 700 frontline team members placed in every town,
with offices in all metros and mini metros, and reaches over 400000 villages in India. HLL is
also one of the leading social marketing organisations in the country in the area of contraceptives
- with a market share of over 70 percent in the rural and semi-urban markets. On the global front,
HLL brands today reach more than 115 countries.

Market Size

The overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to
US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent.
Healthcare delivery, which includes hospitals, nursing homes and diagnostics centers, and
pharmaceuticals, constitutes 65 per cent of the overall market.
Deloitte Touche Tohmatsu India has predicted that with increased digital adoption, the Indian
healthcare market, which is worth US$ 100 billion, will likely to grow at a CAGR of 23 per cent
to US$ 280 billion by 2020.
There is a significant scope for enhancing healthcare services considering that healthcare
spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which
accounts for over 70 per cent of the population, is set to emerge as a potential demand source.

30
India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an
investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of
transactions in the healthcare space is expected to witness an increase in near future. The average
investment size by private equity funds in healthcare chains has already increased to US$ 20-30
million from US$ 5-15 million, as per Price, Water, House and Coopers.
A total of 3,598 hospitals and 25,723 dispensaries across the country offer AYUSH (Ayurveda,
Yoga & Naturopathy, Unani, Siddha and Homoeopathy) treatment, thus ensuring availability of
alternative medicine and treatment to the people.
The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals
estimated at 230,000. The Indian medical tourism industry is expected to reach US$ 6 billion by
2018, with the number of people arriving in the country for medical treatment set to double over
the next four years. With greater number of hospitals getting accredited and receiving
recognition, and greater awareness on the need to develop their quality to meet international
standards, Kerala aims to become India's healthcare hub in five years.

With two decades of dedicated efforts in brand building and market development, HLL has
developed a sound marketing infrastructure and introduced an extensive range of its
contraceptive, hospital and healthcare products in the domestic and global markets.

HLL Lifecare Limited is a Union Govt company, incorporated on 01 Mar, 1966. It's a public
unlisted company and is classified as'company limited by shares'.

Company's authorized capital stands at Rs 30000.0 lakhs and has 96.805% paid-up capital which
is Rs 29041.5 lakhs. HLL Lifecare Limited last annual general meet (AGM) happened on 28
Sep, 2019. The company last updated its financials on 31 Mar, 2020 as per Ministry of Corporate
Affairs . HLL Lifecare Limited is majorly in Manufacturing (Metals & Chemicals, and products
thereof) business from last 55 years and currently, company operations are active.

INVESTMENTS

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The hospital and diagnostic centers attracted Foreign Direct Investment (FDI) worth US$ 3.41
billion between April 2000 and December 2015, according to data released by the Department of
Industrial Policy and Promotion (DIPP).

Some of the major investments in the Indian healthcare industry are as follows:

Versante Software Technologies, an Indian subsidiary of US-based IT consulting and software

engineering services company Versante Technologies LLC, is in the process of raising US$ 1
million in its first round of external funding by March 2016, the proceeds of which would be
used for initial promotion, and pan-India marketing and distribution of hand-held and portable
patient care devices.

Abraaj Group, a Dubai based Private Equity (PE) investor, has planned to buy a majority stake
in an Indian firm Quality CARE India Ltd, which runs CARE Hospitals.

Qatar-based Non-resident Indian’s (NRI) including medical professionals and businessmen,

are planning to set up a huge world-class healthcare project in Kochi worth Rs 1,300 crore (US$
190.74 million)

American multinational technology and consulting corporation, IBM has announced that
Manipal Hospitals’ corporate and teaching facilities will adopt ‘Watson for Oncology’, a

cognitive computing platform trained by Memorial Sloan-Kettering that analyses data to identify
evidence-based treatment options, helping oncologists to provide cancer patients with
individualized healthcare.

Apollo Hospitals Enterprise (AHEL) plans to add another 2,000 beds over the next two
financial years, at a cost of around Rs 1,500 crore (US$ 220.08 million).

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 Malaysia-based IHH Healthcare Berhad has agreed to buy 73.4 per cent stake in Global
Hospitals Group, India's fourth-largest healthcare network, for Rs 1,284 crore US$ 192.84
million.

Temasek Holdings Pte Limited acquired the entire 17.74 per cent stake of Punj Lloyd Limited
in Global Health Private Limited, which owns and operates the Medanta Super Specialty
Hospital in Gurgaon.

CDC, a UK based development finance institution, invested US$ 48 million in Narayana

Hrudayalaya, a multi-specialty healthcare provider. With this investment, Narayana Health will
expand affordable treatment in eastern, central and western India.

Revenue of HLL Life care has been $681 Million

2.3 Level and Type Of Competition – Firms operating in the Industry

HSCC

HSCC (India) Limited earlier known as Hospital Services Consultancy Corporation Limited is a
"Mini Ratna" Government of India Enterprise under the Ministry of Health & Family Welfare,
Government of India. HSCC is a multi-disciplinary consultancy and procurement management
service organisation working in the healthcare and other social infrastructure development
sectors, one of the few in the World. The company offers services in feasibility studies, design
engineering, detailed tender documentation, construction, supervision, comprehensive project
management, procurement support services in all areas of civil, mechanical, information
technology and auxiliary medical service areas. HSCC has its registered office in Delhi and its
corporate office in Noida, Uttar Pradesh. The company is world's one of the leading Healthcare
Consultancy.

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HSCC (India) Limited earlier known as Hospital Services Consultancy Corporation Limited is a
"Mini Ratna" Government of India Enterprise under the Ministry of Health & Family Welfare,
Government of India. HSCC is a multi-disciplinary consultancy and procurement management
service organisation working in the healthcare and other social infrastructure development
sectors, one of the few in the World. The company offers services in feasibility studies, design
engineering, detailed tender documentation, construction, supervision, comprehensive project
management, procurement support services in all areas of civil, mechanical, information
technology and auxiliary medical service areas. HSCC has its registered office in Delhi and its
corporate office in Noida, Uttar Pradesh. The company is world's one of the leading Healthcare
Consultancy.

Main activities of the company encompass conceptual studies, facilities design, project
management procurement and supply, logistics and installation & commissioning, skill
enhancement through training & re-training. Having made substantial investment in state-of-the
art technology and computerisation, HSCC has positioned the corporation as a leader in design
and implementation of institutional buildings, new hospitals, medical colleges & research
campuses, teaching institutions and rehabilitation/up-gradation of existing institutions.

HSCC is an ISO: 9001:2008 accredited company, which adopts an integrated approach to

projects, drawing on its pool of resources/ expertise to provide the best combination to evolve
client-specific, cost-effective innovative solutions

Over the years, HSCC has designed & engineered a number of institutional & healthcare
infrastructure projects and other infrastructure including Residential townships/ housing
complex, hostels, Guest houses facilities, Sports facilities, Convention centres, Auditoriums,
shopping complex etc. for staff as per client requirement. The healthcare consultancy is being
provided for hospitals of bed strength ranging from 30 to 750 beds, both general / multi-
speciality and super-speciality & medical education infrastructure – Medical colleges, Nursing
Schools/ College other training institutions etc across the country & overseas in diverse terrain
conditions. HSCC also provides consultancy services for setting up of laboratories corresponding
to with clean room facilities norms and Bio Safety Levels ranging from BSL-2 to BSL-4

34
standards. It is a repository of knowledge for creating infrastructure meeting client-specific
needs.

Durex

Durex is a brand of condoms and personal lubricants owned by Reckitt Benckiser. It was initially
developed in London under the purview of the London Rubber Company and British Latex
Products Ltd, where it was manufactured between 1932 and 1994. The London Rubber Company
was formed in 1915, and the Durex brand name ("Durability, reliability, and excellence") was
launched in 1929 although London Rubber did not begin manufacturing own-brand condoms
until 1932, in collaboration with a rubber technology student from Poland named Lucian Landau.
The first book on The London Rubber Company and the history of Durex condoms, written by
Jessica Borge, was published in September 2020 by McGill-Queen's University Press.

The London Rubber Company later merged with SSL International, since 2010 which has been
owned by the British company Reckitt. It is one of the best-selling condom brands across the
world, with 30% of the global market. In 2006, Durex condoms were the second best-selling
brand of condoms in the United States, with Trojan condoms being the first. It is supplied by,
among others, the company Karex.

In 2007 the last factory making Durex condoms in the UK stopped manufacturing and
production has since moved to China, India and Thailand. The modern range includes a wide
variety of latex condom, including the Sheik and Ramses brands in North America, and the
Avanti condom. Durex also provides a range of lubricants

Although Durex was not an official sponsor of the Olympic Games, Durex provided 150,000 free
condoms to more than 10,000 athletes that competed in the 2012 Summer Olympics in London.

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Gerolymatos group of company

For over nine decades, the name Gerolymatos has been associated with the health care & beauty
industry worldwide. The company’s history dates back to 1923 when pharmacist, Nikos
Gerolymatos, opened a pharmacy in the center of Athens, Greece that soon became one of the
largest in the country.

Guided by the values and philosophical convictions of the founder, the small family pharmacy
business became one of the leading Greek companies in the health and beauty sector under the
inspiring leadership of the charismatic founder’s son, Panagiotis Gerolymatos (1936 – 2009).

In 2009, Nicholas Gerolymatos representing the 3rd generation, took over the leadership of the
family business, determined not only to re-organize its structure, but to expand the business
locally and internationally despite the very challenging economic environment.

Today, Gerolymatos International S.A., is one of the most traditional, historical and well-
esteemed family businesses in the Greek healthcare industry and has a prominent global presence
with its own brand portfolio, namely, Sinomarin®, Tamarine® and Foltene®, through an
extensive network of more than 50 distributors.

In Greece, Gerolymatos International S.A. is present in the OTC / pharmacy market (own &
distribution products), in the Veterinary (Boehringer Ingelheim portfolio) and in the Optical
market (Alcon portfolio).

The company’s sales turnover is 36.5 mil € (ex-works & wholesale prices) (2018).

Ajanta pharama

Ajanta Pharma Limited (APL) is a multinational company based in India engaged in

development, manufacturing, and marketing of pharmaceutical formulations. It has a presence in
India, the United States, and about 30 other countries in Africa, Asia, Middle East, and CIS. It
was established in 1973.

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Ajanta Pharma has over 1,400 products registered currently in various countries and an equal
number of products are under approval. In India, the company is a branded generic company
focused on a few high growth specialty therapies in ophthalmology, dermatology, cardiology,
and pain management.

Ajanta Pharma exports products to over 30 countries in Asia and Africa. In these markets, the
company serves a wide range of therapeutic products in the areas of antimalarial, cardiovascular,
gastrointestinal, antibiotic, dermatology, antihistamine, multivitamin, gynecology, and pain
management.

Ajanta Pharma has recently stepped up its presence in the United States with a select product
portfolio, which includes niche and complex technology products. Currently, the company has
27 products in the US market

Versus pharmaceutical

Verus Pharmaceuticals was a privately held pharmaceutical company based in San Diego,
California, USA. It was founded in November 2002 by three former Dura Pharmaceuticals
executives, Bob Keith, Peter Schineller and Cam Garner, with an initial focus on the treatment of
asthma, allergies and related diseases and conditions, specifically in children.

Verus is best known for its development and manufacturing of Twinject, the first (and currently
only) two-dose epinephrine autoinjector. The Twinject was later licensed to Paladin Labs for
manufacturing and distribution in Canada (released in September 2006.) The licence for
manufacturing and distribution in Europe (and option for worldwide distribution) was sold to
UCB.

Verus Pharmaceuticals was dissolved in March 2008 after selling its Twinject product to Sciele
Pharma for $29 million.

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In 2009, Verus filed a lawsuit against AstraZeneca and Tika Lakemedel, "seeking $1.3 billion on
claims of fraud, breach of contract, and conversion."

Cipla

Cipla Limited is an Indian multinational pharmaceutical company, headquartered in Mumbai,

India. Cipla primarily develops medicines to treat respiratory, cardiovascular disease, arthritis,
diabetes, weight control and depression; other medical conditions.

Cipla sells active pharmaceutical ingredients to other manufacturers as well as pharmaceutical

and personal care products, including Escitalopram (anti-depressant), Lamivudine and
Fluticasone propionate. They are the world's largest manufacturer of antiretroviral drugs

In July 2020, the company announced the introduction of Gilead Sciences' Remdesivir under the
brand name CIPREMI in India after reaching a voluntary licensing agreement with parent
company and DCGI approval for "restricted emergency use" in COVID-19 treatment of critical
confirmed patients

2.4 PRICING STRATEGIES IN THE INDUSTRY

Pricing the product is one of the important areas in marketing decision making. Of all the
marketing variable price is probably the most flexible, price is also the marketing mix variable
that relates most directly to revenue.

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Price means the exchange value of product or services in terms of money. Price is the valuation
place upon the products offered. It has to cover pricing discounts, allowances and terms of credit
it deals with price competition. Price may be defined as the value of product attribute in
monitory terms which a consumer pays or is expected to pay in exchange. Price is often used to
enhance the image of the product to increase sales through discount price or un combination with
promotion to build future sales.

Objective of pricing

1. Proper return on investment: A firm may price its product to achieve a target return on its
investment.

2. Maximum profit through maximum sales: in both economic theory and practice there is
nothing wrong with profit maximization. Sometimes government brings down the prices.

3. Raise the sales volume: pricing may be used as tool to increase the sales volume.

E.g.; by giving discounts and allowance or by cutting.

4. Market share: one of the major objectives of pricing is to maintain the market share or to
increase the existing share. .

5. status quo goals: two closely related goals – stabilizing prices and meeting competition are the
least aggressive of all pricing goals.

5. product quality relationship: a company might aim to be product quality leader in the market.

Methods of price determination

1. Cost-oriented pricing methods

a. Cost plus or markup pricing: under this method, the price covers entire cost
incurred and so it assure that there will not be any loss to theproduct.

b. Marginal cost or incremental pricing: under this method, the price of a product is
determined on the basis of its marginal cost only.

39
 c. Break-even point or B.E.P pricing: the interrelationship of cost and sales volume
determine the amount(or loss); break-even analysis helps in estimating the different
prices on profit.

d. Target pricing: target pricing invariably followed by manufacturers who fix a target
return on the total cost.

2.Competition based pricing

Many concerns fix prices only after having considered the competitive price structure. As
per this methods this cannot be any rigid relation between the price of a product and
firm’s own cost or demand. The firm will change its price only when the competitors
change.

3. Demand based pricing

Under this method of pricing, price is fixed by simply adjusting it to the market
condition. A high price is charged when the demand is low. The demand is reflected in
the sales volume/revenue which a product may generate at a given price.

2.5 Prospects and Challenges of the Industry

The increasing accessibility to healthcare services has opened the doors for the pharmaceutical
industry players to a broader their target market. Such emerging markets are becoming crucial
for pharmaceutical companies. One of the biggest challenges in the pharmaceutical industry now
is to shift from a sales and marketing-based model to an access driven commercial model. The
commercial atmosphere in the pharmaceutical industry is only getting harder and ruthless. Also,
in recent times, healthcare analytics is facing a data evolution.

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Three Key Challenges in Pharmaceutical Industry

1: Demand forecasting

The biggest challenge in the pharmaceutical industry players is to devise market forecasts and
enhance their customer service levels. Demand forecasting is an essential component for the
pharmaceutical companies to stay ahead in the competition and match the supply to demand.
Ensuring that all the goods are produced at the desired time and delivered seamlessly poses a big
challenge to the pharma companies.

2: Price fluctuation assessment

Recent analysis of the pharmaceutical industry shows that many big players in the industry are
poised to witness tough times if they fail to adapt with healthcare analytics and other data
analytics in healthcare industry trends. Recently the pharmaceutical industry is in need of proper
techniques to analyze pricing structures to boost profit margins. Analyzing the shifting customer
behavior and fluctuating prices is one of the biggest challenges in pharmaceutical industry.

3: Risk management

Managing risks in the drug manufacturing process and quality systems is of great importance.
For pharmaceutical industry players, it becomes very important to maintain product quality.
Hence, it becomes challenging for the pharma companies to identify possible risks associated
with a product or processes involved in manufacturing, development, and distribution of the
product.

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Challenges and opportunities for Indian pharma industry

Dr Swarnlata Saraf, Professor – Pharmaceutics, University Institute of Pharmacy, and Dean,

Faculty of Technology, Pt. Ravishankar Shukla University, Raipur, Chhattisgarh elaborates on
the need to create a pool skilled workforce, ramp up research and build better industry-academia
synergies to optimise the growth potential in India’s pharma industry

As we all know, India is the largest provider of generic drugs globally. The Indian pharma
industry supplies over half of the global demand for vaccines, one third of the demand for
generics in the US and one fourth per cent of all medicines in the UK. The nation enjoys an
important position in the global pharma sector. Therefore, the future of Indian pharma industry is
quite bright, but there are a few dark clouds on the horizon as well. Let’s examine them.

Challenges

The Indian pharma industry faces lack of research components and real time good manufacturing
practices. This has always been a difficulty for the pharma industry. Pharma companies should
built in such a way that they are equipped with better operational facilities and abilities.

Indian pharma companies are not getting proper profits, their earnings are basically very low as
compared to their counterparts in other countries such as the US. Their income is not sufficient
enough to invest money on research component.The pharma industry is dependent on China for
the supply of raw material for generic medicines production.

India needs user friendly government policy for the common man to establish small scale, raw
material manufacturing units/ incubators in all states of the country to improve availability of
raw materials to manufacture generic drugs at affordable rates.The government and industry
should facilitate the pharmacist community to become entrepreneurs and promote incubators’
establishment.

Raw material produced from small scale units should be properly validated in the testing
laboratory of the state to ascertain their quality specifications.There is a need for a functional
testing laboratory in every state to fasten the work of specification of raw materials.

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Small scale produces may be re-processed in another industry or via a chain of industry for
quality products that can be used for parenteral/tailor-made formulations.Skilled manpower from
academic institutions can be achieved through continuing education programmes.

Opportunities

Research schemes should be initiated by the industry via direct contact with identified
researcher/faculty.Incentives should be paid to students contributing towards development of any
research formula for the industry.Industry should explore the availability of qualified students
beyond metro cities.

Every industry has its own protocol to serve the society. Therefore, the pharma industry should
train students as per their need. Only a few industries are thinking in this line. Industries should
contact Indian academic institutions to get qualified students who have the knowledge and
aptitude for research and development in pharma.

Adoption of user-friendly policies will help establish small scale industry and encourage students
and middle class business owners with ambitions in this line. This will also help overcome the
problem of unemployment for pharmacists and promote entrepreneurship in the nation.

With changing times, students are getting exposure through internet about research/ technology
around them.Indian academic institutions are full of ideas born from the young, creative brains of
students.Indian pharma industry can explore these ideas for future progress.There are ample
opportunities for industries to represent their data via academic pharma institutions.

Pharmacy students are highly qualified persons in handling of instruments with having good
knowledge of data interpretation and data mining. The important part is that there is no
significance of instrumental data without interpretation. Therefore, such knowledge of students
can be explored by the industry at the cost of living wedges.

The industry can hire a team from academic institutions to participate in healthcare activities
across the country for their promotional activities.Industry can get support from academic

43
institutions to serve the society in healthcare activities. They can provide financial expenses done
by the institutions. It should be a routine activity that will connect the students to the industry.

2.6 Key Drivers Of The Industry

Government Initiatives

India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's
population will cost an estimated Rs 1.6 trillion (US$ 23.48 billion) over the next four years.
Some of the major initiatives taken by the Government of India to promote Indian healthcare
industry are as follows:

o Provisions made in the Union budget 2016-17:

o National Dialysis Services Program to be initiated to provide dialysis services in all

district hospitals to accommodate the increasing demand for dialysis session

o A new health protection scheme for health covers up to Rs 1 lakh (US$ 1,470) per family.

o Setting up 3,000 medical stores across the country to provide quality medicines at
affordable prices.
o Senior citizens will get additional healthcare cover of Rs 30,000 (US$ 441) under the
new scheme
o Pradhan Mantri Jan Aushadhi Yojana to be strengthened, 3000 generic drug store to be
opened

o Government of West Bengal has introduced G1 Digital Dispensary, which aims to

provide people from rural areas access to primary healthcare services.

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 o A unique initiative for healthcare 'Sehat' (Social Endeavour for Health and Telemedicine)
has been launched at a government run Common Service Centre (CSC) to empower rural
citizens by providing access to information, knowledge, skills and other services in
various sectors through the intervention of digital technologies and fulfilling the vision of
a ‘Digital India’.

o India and Sweden celebrated five years of Memorandum of Understanding (MoU). The
cooperation in healthcare between India and Sweden will help in filling gaps in research
and innovative technology to aid provisioning of quality healthcare.

o Mr. J P Nadda, Union Minister for Health & Family Welfare, Government of India has
launched the National De-worming initiative aimed to protect more than 24 crore
children in the ages of 1-19 years from intestinal worms, on the eve of the National De-
worming Day.

o Under the National Health Assurance Mission, Prime Minister Mr. Narendra Modi's
government would provide all citizens with free drugs and diagnostic treatment, as well
as insurance cover to treat serious ailments.

GoaI-owned enterprise with captive unit status - HLL is a 100% GoI-owned enterprise with
an experienced management and has a considerable track record of nearly five decades in the
contraceptives space having been in operation since 1969. HLL is the largest supplier of
contraceptives to the GoI for distribution under the free distribution and social marketing
schemes of the National Family Welfare Programme (NFWP). HLL enjoys captive status for
such supplies that ensures offtake of the minimum of 75% of its production or the GoI’s
requirement in a given year, which mitigates the demand and marketability risks to an extent.
HLL also markets its products to the international market and has witnessed healthy sales for
exports in the recent fiscals. However, ICRA notes that in FY2019, the GOI orders for condoms
witnessed moderation, leading to adverse impact on revenue from the segment.

45
 Diversified business segment and product portfolio - HLL has significantly diversified
its business and at present operates in the contraceptives, retail pharmacy chain,
healthcare services, healthcare products and trading, consultancy and contracts segments.
HLL has witnessed healthy sales from its retail pharmacy chain segment, wherein the
network is still being expanded. HLL is also focussing on its healthcare services business
and had won tenders to provide pathology

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 CHAPTER – III

REVIEW OF LITERATURE

47
REVIEW OF LITERATURE

Survey of literature is considered necessary to the research activity. Literature review gives
background knowledge of the research topic. Researcher should conduct an extensive literature
survey connected with the problem. For this purpose, the abstracting and indexing journals and
published or unpublished bibliographies should be considered. Academic journals, conferences
proceedings; government reports must be tapped depending upon the nature of the problem. The
earlier studies, if any, which are similar to the study in hand, should be carefully studied.

3.1 BRIEF THOERETICAL CONSTRUCT RELATED TO THE PROBLEM

Labour welfare relates to taking care of the well-being of workers by employers, trade unions,
governmental and non-governmental institutions and agencies. Welfare includes anything that is
done for the comfort and improvement of employees and is provided over and above the wages.
Welfare helps in keeping the morale and motivation of the employees high so as to retain the
employees for longer duration. Employee welfare includes monitoring of working conditions,
creation of industrial harmony through infrastructure for health, industrial relations and insurance
against disease, accident and unemployment for the workers and their families.

Seven Theories constituting the conceptual frame work of labour welfare activities are the
following:

1. The Policing Theory of Labour Welfare:

The policing theory is based on assumption that Human Being is so much selfish and always tries for
own benefits whether on the cost of others welfare. Any of the employers will not work for the

48
welfare of employees until he is forced to do so. This theory is based on the contention that a
minimum standard of welfare is necessary for workers.

The assumption on which the theory is based is the without compulsion, supervision and fear of
punishment, no employer will provide even the barest minimum of welfare facilities for workers this
theory is based on the assumption that man is selfish and self-centered, and always tries to achieve
his own ends, even at the cost of the welfare of others. This is based on the contention that a
minimum standard of welfare is necessary for labourers. Here the assumption is that without
policing, that is, without compulsion, employers do not provide even the minimum facilities for
workers.

According to this theory, owners and managers of industrial undertakings get many opportunities
for exploitation of labour. Hence, the state has to intervene to provide minimum standard of
welfare to the working class.

2. The Religious Theory of Labour Welfare:

This is based on the concept that man is essentially “a religious animal.” Even today, many acts
of man are related to religious sentiments and beliefs. These religious feelings sometimes prompt
an employer to take up welfare activities in the expectation of future emancipation either in this
life or after it. The theory views were an essentially religious. Religious feelings are what
sometimes prompt employers to take up welfare activities in the belief of benefits either in his
life or in support after life.
Any good work is considered an investment, because both the benefactor and the beneficiary are
benefited by the good work done by the benefactor. This theory does not take into consideration
that the workers are not beneficiaries but rightful claimants to a part of the gains derived by their
labour.

3. The Philanthropic Theory of Labour Welfare:

Philanthropy is the inclination to do or practice of doing well to ones fellow men. Man is
basically self- centered and acts of these kinds stem from personal motivation, when some
employers take compassion on their fellowmen, they may undertake labor welfare measures for
their workers.

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This theory is based on man’s love for mankind. Philanthropy means “Loving mankind.” Man is
believed to have an instinctive urge by which he strives to remove the suffering of others and
promote their well-being. In fact, the labour welfare movement began in the early years of the
industrial revolution with the support of philanthropists.

4. The Paternalistic or Trusteeship Theory of Labour Welfare:

In this theory it is held that the industrialists or employers hold the total industrial estate,
properties and profits accruing form them in trust for the workmen, for him, and for society. It
assumes that the workmen are like minors and are not able to look after their own interests that
they are ignorant because of lack of education. Employers therefore have the moral responsibility
to look after the interests of their wards, who are the workers.
In other words, the employer should hold the industrial assets for himself, for the benefit of his
workers, and also for society. The main emphasis of this theory is that employers should provide
funds on an ongoing basis for the well-being of their employees.

5. The Placating Theory of Labour Welfare:

As labour groups are becoming better organized and are becoming demanding and militant, being
more conscious of their rights and privileges that even before, their demand for higher wages and
better standards increases. The placing theory advocates timely and periodical acts of labour welfare
to appease the workers.

This theory is based on the fact that the labour groups are becoming demanding and militant and are
more conscious of their rights and privileges than ever before. Their demand for higher wages and
better standards of living cannot be ignored. According to this theory, timely and periodical acts of
labour welfare can appease the workers. They are some kind of pacifiers which come with a friendly
gesture.

5. The Public Relations Theory of Labour Welfare:

This theory provides the basis for an atmosphere of goodwill between labour and management,
and also between management and the public, labour welfare programmes under this theory,

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work as a sort of an advertisement and help an organization to project its good image and build
up and promote good and healthy public relations.

The labour welfare movements may be utilized to improve relations between management and
labour. An advertisement or an exhibition of a labour welfare programme may help the
management projects a good image of the company.

7. The Functional Theory of Labour Welfare:

The concept behind this theory is that a happy and healthy person is a better, more productive
worker. Here, welfare is used as a means to secure, preserve and develop the efficiency and
productivity of labour. The approach to any solutions, especially as that as between the workers and
the management should be dialogue and an understanding of one another’s viewpoint

3.2 AN OVERVIEW OF EARLIER STUDIES

Anand (2010) stated in his research work that employees of IT sector in Chennai district are
satisfiedwith the welfare measures provided by the company. But researcher also suggested some
recommendation pertaining to periodic audit of welfare programs by management, personality &
tressmanagement etc. Modifications are requiring in the field of safety consciousness, grievance
handling&sexual harassment especially for women employees.

Balaji (2013) explored the influence of rewards & welfare on job satisfaction & productivity of
bothpublic & private sector employees in measure Industrial cities of Tamilnadu. The working
environment was faire in terms of office accommodation & furniture, working material, health &
safety facilities buton the other side he recommended salary increment, allowances, bonus, fringe
benefit &compensation onregular & specific periods to keep their moral high & make them
productive.

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Bhagat (2015) revealed that cleanliness is the big issue in Nashik MIDC. She suggested that
cleanlinessshould be improved, clean & adequate latrines &urinals at the work place improve
indirect motivation toemployees.

Bhati p. (2013) identified in her research work that the different provisions provided to the
employeesunder factories Act 1948 are showing positive relation with the employee’s
satisfaction. Company shouldknow the requirement of employees in term of different non-
financial motivational tools. This study canbe useful for identifying the factories which needs to
employee satisfaction & company can use thosefactors retention tool for retaining employees in
the organization.

Bosibori (2012) suggested that govt. through national police service in Kenya(KISII central
district )should improve the provision of health services, welfare amenities& social services
provided to the policeofficers so has to improve service delivery & also recommended that govt.
should be well formulatedpolicies on each areas of welfare services in the national police service
in KISII central district

Chahal (2013) inferred from her research work that some factors like working environment,
performance appraisal techniques , relationship other employees etc. are contributing towards job
satisfaction in bank employees, while job dissatisfaction caused by working hours(lack of
training &development) of frequent transfers of the employees . He suggested that employee
welfaremeasures/facilities of job security should be given at most importance so that the
employee turnover may be restricted.

Gope (2013 ) studied the employee per section on quality of work life in sugar mills of Uttar
Pradesh(UP)found that private sugar mill employees enjoys better QWL practices in comparison
to cooperative sectoror employees. On lighting facilities (LF), safety measure (SF), health
facilities (HF), welfare facility(WF), etc. but cooperative sugar mill employees enjoys better
employee welfare facilities &supervisorinterference (SI) to private sugar mill employees. He

52
suggested that to improve QWL is first to identify &then try to satisfy employees important
needs in through their experience in their working environment.

Hangarki (2014) revealed the relationship between employee satisfaction level & welfare
measures inselected national bank in Hyderabad Karnataka region. It is clear that welfare
facilitated employment bybank are not equally satisfactory to all employees. Most of the
employees are dissatisfied with the clarityand transparency in communication, training&
development, lunch rooms & rest rooms, health checkupcamp etc. He recommended some
measures but separate lunch room & rest rooms are most important inthose amenities because
employees are very inconvenient to have their lunch in front of the customer.

Jain (2012) implied by her research work that public sector bank employees are more satisfied
with hisjobs rather than private bank employees the main cause of dissatisfaction among private
bank employeesare job in security their jobs are highly competitive. Also welfare facilities and
clearly defined & legallyenforced in public sector banks while there is neither well planned nor
well executed welfare facilities inprivate banks. This is other reason of dissatisfaction among
private bank employees. Employee’s turnoverhigh & job security low in private bank employees.

Okereke (2010) revealed that there complete absence of welfare measures in patani local govt.
council,Delta state Nigeria. There is general awareness about staff welfare among employees.
Staffs were totallyneglected by council. The working environment was poor or path. He informs
of office accommodation &furniture working materials, monetary incentives & unreliable health
of safety facilities etc. Jobsatisfaction among employees are very low which leads to poor
productivity or performance .Okereke suggested that significant efforts should be made to
improve employee job capabilities through training,improve working condition & general
welfare , which leads to increase productivity or enhanced moral &
performance.

Upadhaya (2006) studied an awareness and implementation of labour welfare measures in

Garment andhosiery industry of Noida depicted a pathetic or quite deplorable picture of this

53
area.52% respondentsbelonging to the unskilled category and they are mobile in nature or
contractual and piece rate workers.There is no general awareness among employees.30%

workers were not being provided paid weeklyholidays in case of piece rate worker and casual
workers. Only 10& of the units were providing foodfacility to its workers on a subsidized basis.
No other non –statutory facility being provided to workers.

Tatareddy M (2014) implied by research work that majority of the respondents of Secundarabad
divisionof railway are satisfied with the welfare measures which they are provided. Employees
aresatisfied withboth Intra-murale.g.medical, canteen, water, washing and bathing, safety
measures etc. And extra-murale.g. housing, recreational, educational, holiday homes, retirement
benefits etc. Researcher furthersuggested recommendation in the areas of housing societies for
railway men, better equipped hospitalsand clinics, educational facilities in the technical
education etc.

3.2 Uniqueness Of Research Study

In the era of Globalization, market economy, hyper competition and rapid changing
environment, the success of an organization depends on the employees’ performance.
Employees’ performance is an essential requirement if an organization is to maintain its efforts
towards the realization of predesigned goals. According to Human Resource Philosophy
employees are an important business resource that must be managed carefully in order to
maximise return on investment and achieve business objectives. Organisations have to provide
various benefits to ensure employees welfare is taken care off. In fact in this age and era it is
almost impossible to operate an organization without offering a basic set of benefits for
employees’ welfare. Organizations should understand that a healthy and stress free worker is a
major asset to the organization and should therefore provide welfare services and programmes.

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Welfare is concerned with the total wellbeing of employees both at work and at home.
Armstrong (2004) states that employee welfare programs rest mainly on the abstract ground of

social responsibility on organisations for those who work for them. Organizations need highly
performing employees in order to meet their goals to deliver the products and services they
specialize in and hence achieve competitive advantage.

According to Gayle and Brock (2004) Organizations provide welfare facilities to their employees
to keep their motivation levels high. The employee welfare programs can be classified into two
categories viz. statutory and non-statutory welfare schemes .As a total concept of welfare, it is a
desirable state of existence involving physical, mental, moral and emotional well- being. Stratton
(2005) defines employee welfare programmes as the good fortune, health, happiness, prosperity,
etc., of a person ,group, or organization; well-being: to look after a child's welfare; the physical
or moral welfare of society. This is the financial or other assistance to an individual or family
from an organization, city, state, or national government. Employee Welfare isa comprehensive
term including various services, benefits and facilities offered to employees by employers. The
welfare measure need not be monetary but in any kind/forms. This includes items such as
allowances, housing, transport medical insuranceand food. Employee welfare also includes
monitoring of working conditions, creationof industrial harmony through infrastructure for
health industrial relations and insurance against diseases accidents’ and unemployment for
workers and their families. Through such benefits services and facilities the employer makes life
worth living for employees hence improved employee performance .Employee welfare may be
viewed as a total concept, as a social concept, and as a relative concept .The total concept is
desirable state of existence involving the physical, mental, moral and emotional well-being.
These four elements together

constitute the structure of welfare, on which its totally is based, the social concept ofwelfare
implies the welfare of man, his family, community. Al those aspects areinterrelated and worked
together is three dimensional approaches. The relativeconcept of welfare implies that welfare is
relative in time and place. It is dynamic andflexible concept and hence it its meaning and concept
differ from time to time, regionto region, industry to industry and country to country,

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depending upon the valuesystem level of education social customs and degree of
industrialization and general standard of the social economic development of the
people.Employee welfare implies the sitting of the minimum desirable standards and provisions
of facilities like health, food, housing, medical assistance, education, jobsecurity, recreation such
facilities enable the workers and his family to lead good worksocial life.

Employee welfare also operates to neutralize the harmful of large

scaleindustrialization.Employee welfare is a term including various services, benefits and
facilities offeredto employees by the employers. The welfare measures need not be monetary but
inany kind/forms. This includes items such as allowances, housing, transportation,medical
insurance and food. Employee welfare also includes monitoring of workingconditions, creation
of industrial harmony through infrastructure for health, industrial relations and insurance against
disease, accident and unemployment for the workers and their families. Through such generous
benefits the employer makes life worth living for employees. Welfare includes anything that is
done for the comfort and improvement of employees and is provided over and above the wages.
Welfare helps in keeping the morale and motivation of the employees high so as to retain the
employees for longer duration. The welfare measures need not be in monetary terms only but in
any kind/forms. Employee welfare includes monitoring of working conditions, creation of
industrial harmony through infrastructure for health, industrial relations and insurance against
disease, accident and unemployment for the workers and their families.

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 CHAPTER 4
METHODOLOGY OF THE STUDY

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4.1 Research Approach and Design

METHODOLOGY OF THE STUDY

It is a science. It is a method that can be used to solve the research problems it helps in studying
how research is done scientifically. Research methodology provides various steps that can be
adopted by the researcher in studying his research problems.

4.1 RESEARCH APPROACH AND DESIGN

Research means search for knowledge. According to Clifford Woody “Research comprises of
defining and redefining problems, formulating hypothesis, collecting, organizing and evaluating
data, making deductions and research conclusions and at last carefully testing conclusions to
determine whether they fit the formulating of hypothesis”.

Research is necessary to examine the extent of the validity of the old conclusions or to find out
some new facts and generating new ideas in connection with the existing ones. The very purpose
of research is to unfold the truth by systematic methods. It may involve the manipulation of
concepts in order to correct or verify the existing knowledge. As a result, it may establish new
empirical generalizations and falsify the old ones. Thus new theories are constructed. The main
objective of research is to find out the truth which is hidden and which has not been discovered
so far.So the primary object of research is to get true and intimate knowledge of human society
and its functioning, to know and understand the laws that are operating behind various activities
of man.

Research helps in solving various operational and planning problems of business and industry:
Operations Research, Market Research and Motivational Research are very useful in taking
business decisions. It also helps in solving social problems. On the other hand Research
methodology not only includes research but also the logic behind those methods. It explains why
a research has been undertaken, how the research problem has been defined, in what way and
why the hypothesis has been formulated, what data have been collected, how to calculate various
statistical measures like mean, median ,mode, standard deviation etc.

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 Research Design

Research design constitutes data collection and analysis of data. Research design facilitates
smooth sailing of various research operations, thereby making research as efficient as possible
yielding maximum expenditure of effort, time and money. Research design used here is
descriptive research design.

The research period was 44 days commencing from April 27 to June 10

4.2 Source of online data

The sufficient data for this project was collected from various websites, online text
books, reports of earlier studies conducted and journals

.
The secondary data was obtained through the annual reports of corporation, booklets, and
profile of the company, company website manuals and also from records available in the
organization. Some other data also collected from reports, registers, and books and from the files
available in the organization.

4.5REPORT STRUCTURE

 CHAPTER 1: INTRODUCTION
Introduction chapter includes background of the study, statement of the problem, relevance and
scope of the study and also the objectives of the study.

 CHAPTER 2: INDUSTRY PROFILE

This chapter includes industrial profile, business process of the industry, market demand and
supply, contribution to GDP, revenue generation, pricing strategies in the industries, prospects
and challenges of the industries, key drivers of the industries and product profile.

 CHAPTER 3: REVIEW OF LITERATURE

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 A detailed review of literature has been done by reviewing the previous studies relating
to the core area of the research. This chapter includes brief theoretical. construct related
to the problem, An overview of earlier studies and uniqueness of research study

 CHAPTER 4: METHODOLOGY OF THE STUDY

This chapter deals with the Research approach and design, Sources of online data, Sampling
design, Data analysis tools, Report structure and Limitations of the study.

 CHAPTER 5: DISCUSSION

 CHAPTER 6: FINDINGS OF THE STUDY

 CHAPTER 7: CONCLUSION

4.6Limitation of the Study

Eventhougheveryefforthasbeenmadetoachieveperfection,therearestillcertainlimitations.T
heyareasfollows:

 Duetotimeconstrainttheresearcherwasnotabletocompletetheproject
 It was difficult to study of this nature and to study all that aspects of problem
with in short period
 Likeintelligencemeasuringofemployee welfare facillities isdifficult

 Thereisalackofavailabilityofprimarydata.

 Therewasnoopportunitytointeractwiththeemployeesandrecorddata
directlyfromthem.

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CHAPTER 5

DISCUSSION

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5.1 Observation by the candidate from Literature Review – Comparisons

Employee welfare is justified for several reasons. A typical worker does a lot of work like
digging coal from earth, fetching and refining oil, to build dams for society. They look after
necessities as well as luxuries of people in society. Thus, welfare measures are a must for them.

Welfare measures are going to have a great impact on workers’ pro­ductivity. Thus, a worker
show safeguards economic and social factors of the industrial economy needs a boost with
welfare activities.

Welfare may help retain the employee. Most welfare facilities are hygiene factors according to
Frederick Herzberg, they create dissatis-faction if not provided. Replace dissatisfaction, place an
employee in favourable mood, provide satisfiers, and then motivation will take place. Welfare
facilities, besides removing dissatisfaction, help develop loy-alty in workers towards the
organization Welfare may also help minimize social evils, such as alcoholism, gam-bling, drug
addiction etc. A dissatisfied worker falls prey to these abuses. Welfare facilities tend to make
him happy, satisfied and confident.

Another argument in favour of welfare is that it gives a good image to the company. At the time
of recruitment, people see the organization as a good employer. This gives many benefits to the
company. It is able to recruit and retain the best employee.

After employees have been hired, trained and remunerated, they need to be retained and
maintained to serve the organization better. Welfare activities are designed to take care of the
well-being of the employees. They do not generally result in any monetary benefit to the
employees nor are these facilities provided by employers alone. Government and non-
government agencies, and trade unions too, contribute towards employee welfare. The welfare
facilities together contribute to better work.

Welfare implies doing good. Many personnel managers find these activities redundant
afterspending on them for many years. The argu-ment that these facilities improve loyalty of

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employees has been exploded. If the welfare facilities are used at all, they are taken for granted
by employees.

Managers also argue the usefulness of erecting huge play grounds and recreation centres for
employees which would be used by a handful of employees for a limited time. Instead, such
facilities could be better used by community.

The purpose of employee's welfare is to develope personality of the workers to make a better
workforce. Welfare schemes it create efficient, healthy, loyal and satisfied labor force for the
organization. Providing such facilities make their work life better and leads to good standard of
living.

Staff welfare is important for two major reasons:

Boosts staff morale: No employee wants to leave a job worse than when they got it. Staff welfare
boosts Staff morale and confidence that the employer is interested in their overall well-being and
not just profit. Staff morale is usually transmitted to clients leading to better client relations
which is a plus to any business.

Increases productivity: Productivity on the job will be improved because there is a reduction in
sick calls and job injury. This leads to focus on the job for optimal performance. It also helps
businesses save money that would have been spent on the fallouts of accidents and incidents.

Good welfare plans at work should address the following areas:

Work environment

This has to be well planned to ensure that the Health and Safety of employees does not
deteriorate due work. It is therefore important to ensure that there is adequate ventilation using
natural and artificial means. There must be adequate lighting to prevent eye strain. Extremes of
temperature must be avoided to prevent risk of illness associated with that. Workspace must be
well planned and spaced to give room to each employee. It is also important to keep the work
environment safe with appropriate signage. Walkways should be properly lit and free from
obstruction to reduce risk of collision.

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Welfare facilities

Access to good drinking water, sanitary facilities, eating areas, recreational facilities, child care
facilities are great additions to the workplace as they make employees more comfortable. When
staff are more relaxed, they can focus on work activities.

Housekeeping

The workplace has to be kept clean at all times to avoid fall and trip hazards. Dirty toilet
facilities should not be heard of as they constitute a health risk. An unclean workplace could
compromise the Health and Safety of employees.

Right equipment

The right equipment should be provided for work activities. When faulty, they should be fixed or
replaced to ensure they do not become a source of injury to staff.

Discussions & Implications

There is a significant difference between department and impact of welfare measures towards the
improvement of physical and mental health. Each department has a different form of workload
and work stress and creates an impact on employees’ physical and mental health. Welfare
measures like seating arrangements, medical facilities, and recreation facilities should be offered
effectively to the employees.

There is a significant difference between the opinions of employees towards welfare measures
with their experience of the employees. The opinions of employees towards welfare measures
differ based on their experiences. New employees may have one kind of expectations and
employees who have more experience may expect a different set of welfare measures. Therefore
the experiences of the employees should be considered as a factor while improvising the welfare
measures.

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5.2 Logical Conclusions related to the business problem

The logic behind providing welfare facilities is to create efficient, healthy, loyal and satisfied
labour force for the organisation and also for the nation. In India, industrial workers get the
benefit of various welfare facilities. The purpose is to provide them better life and also to make
them happy and efficient.

The other equally important purpose is to raise their productivity. Welfare services are not a
charity, they are essential to get higher productivity from the workers by satisfying their needs.

The important benefits of welfare services are given below:

(i) Welfare facilities provide better physical and mental health to the workers and make them
happy.

(ii) Such service facilities like housing scheme, medical benefits, and education recreation
facilities for the workers’ families help create contented workers’ families. This will help them to
devote greater attention towards their work. The gain in terms of productivity and quality of
work will be large indeed.

(iii) Employees services serve to maintain some degree of peace with the employees’ unions in
as much as these constitute a considerable part of the bargaining package. The harmony and the
good relations that result are the kingpin of higher productivity.

(iv) Employers get stable labour force due to the provision of welfare facilities. Workers take
active interest in their jobs and work with a feeling of involvement and satisfaction. They also
find their work interesting.

(v) Employers secure the benefits of high efficiency, cordial industrial relations and low labour
absenteeism and turnover.

(vi) Labour welfare measures raise labour productivity and bring industrial peace and cordial
labour-management relations.

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(vii) An employer is able to attract talented workers from the labour market by providing
attractive welfare facilities.

(viii) The social evils prevalent in the labour-force such as gambling, drinking, etc., are reduced.
Welfare activities by the employer bring improvement in the health of the workers and keep
them cheerful.

Labour Welfare – 8 Main Objectives

1) To provide better and safe life and health to the employee.

2) To relieve employees from frustration, fatigue, depression.

3) To improve intellectual, culture and material conditions of lying of the employees.

4) To make the employees happy and fully satisfied.

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To provide them safety while working. Welfare services may broadly be classified into:

 Economic
 Recreational, and
 Facilitative.

67
These are discussed below:

1. Economic Services:

These provide some additional economic security over and above wages or salaries, such as
pension, life assurance, credit facilities, etc. Establishing a proper pension program will reduce
dissatisfaction in the area of economic security. Pension is a kind of deferred payment to meet
the needs of the employees in their old age.

Generally, the amount of pension is related to the last pay drawn and the total number of years of
service put in by the employee. Some organisations have a scheme of family pension which
provides for payment of pension to family members, in case of demise of employee.

Similarly, the employer may contribute towards the premium of life insurance of each employee.
Some organisations also help the employees to start co-operative credit societies to meet the

68
urgent financial needs of the employees or consumers’ co-operative stores to provide the workers
with consumers’ goods at ‘no profit-no-loss’ basis.

The employees often need money for purchase of cycle, scooter, T.V., sewing machine, fan, etc.
to raise their standard of living. In such cases and at other times (e.g., marriage and other
religious activities), there should be some provision to meet their requirements.

The employer may advance them the money which is paid back by the employees in the form of
monthly instalments to be deducted from their salaries. The employees may also be induced to
build up their own funds for future contingencies.

2. Recreational Services:

The employees are in need of occasional diversion. Their attitude improves when the routine of
everyday living is broken occasionally. For this purpose, management may provide for
recreational facilities. More agreeable informal atmosphere is promoted through the contacts and
relationships built up in the recreational events. The management may provide for indoor games
like Table Tennis in the common room for employees.

In case of big organisations, management may also arrange for playgrounds for outdoor games
and induce the workers to prepare a team to play matches with other similar teams. Co-operation
and understanding among the employees will increase. Management may also provide for
reading rooms, libraries, radios, TV, etc., for the recreation of the employees.

3. Facilitative Services:

These are conveniences which the employees ordinarily require such as:

(i) Canteen, rest rooms and lunch room – Eating is naturally a very important thing for an
employee to maintain his health and efficiency. Unless proper facilities for food, tea and rest
rooms are available. Health and consequential efficiency of the workers will go down. Hence,

69
almost all factories are required to provide canteens where food can be obtained either at a fair
price or at subsidised rates.

Similarly, lunch rooms may be provided where workers may take their food which they bring
from their homes. Workers also need some place or shelter for taking rest during leisure hours.
This is also a necessity for proper upkeep of health and efficiency.

(ii) Housing facilities – Some organisations construct flats for their employees and provide the
same either rent free or at a nominal rent. In some cases, cash compensations are given while in
other cases, loans at cheaper rates of interest are advanced to the employees to enable them to
construct or purchase their own houses or flats.

(iii) Transportation facilities – Many employers provide transportation facilities to and from their
establishments. Such facilities reduce the stress and strains of commuting to and from the place
of work. It reduces their fatigue in travelling and help to increase their productivity.

(iv) Medical facilities – Health is one of the foremost things for the employees and it is but
natural that there may be injuries because of accidents while working. So first-aid facilities must
be provided for within the factory premises. In addition, medical scheme is generally in
operation under which reimbursement of medical expenses actually incurred is allowed. The
organisation may also prescribe doctors from whom the employees may get services in case of
need.

(v) Washing facilities – It is necessary to provide for wash basins and washing facilities to be
conveniently accessible to all workers which should be clean, properly separated and screened
for the use of male and female employees.

(vi) Educational facilities – Educational facilities may be provided by the organisation to the
employees’ children by starting a school for them.

(vii) Consumers’ cooperative stores – Many employees help their employees to establish and run
consumers’ cooperative stores to make them items of necessity available at cheaper rates. They
provide free space and infrastructure for the store within the establishment.

70
(viii) Leave travel concession – Many organisations reimburse actual fares incurred by the
employee in undertaking a tour along with his or her spouse and dependent children once during
a specified number of years.

The concept of labour welfare embraces a multitude of activities including all extra – mural ,
intra-mural activities to help workers and their families in the context of their industrial life, it is,
therefore, concluded that labour welfare is convenient term to cover all those aspectsof industrial
life which contribute to the well being of a worker.

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 CHAPTER - 6
FINDINGS OF THE STUDY

72
FINDINGS

 The welfare facilities are provided to the employees to keep the motivation
levels high.

 Measures that offered in the welfare facilities of the intramural and extramural
welfare measures of the employees have improved their rate of satisfaction
towards jobs.

 It helps to improve industrial relations and industrial peace

 Welfare measures helps to improve the goodwill and public image of the
enterprise.

 It creates a culture of work commitment in organization and society which

ensure higher of productivity and greater job satisfaction to the employees

 The employees work with full enthusiasm and energetic behavior which results
in the increase in production and ultimately the increased profit.

 It helps us to improve employees the loyalty and morale of the employees

 organization provide welfare facilities to their employees to keep their

motivation levels high.

 To provide security to the employees against social risks like oldage benefits and
maternity benefits and to provide safety against accidents.

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CHAPTER – 6

CONCLUSION

74
 CONCLUSION

Labour welfare services is an important personnel function in a business . Effective utilization of

other factors of production depends on the efficiency of human factor . The worker spends more
than a quarter of his life in his working place. Therefore, the worker has every right to demand
that the condition under which he works should be reasonable and provides proper safeguarads
for life and health. Today, welfare has been generally accepted by the employer depending on its
priorities gives varies degrees of importance to labour welfare. Human resaource plays an
important role in any organization. Employees welfare facilities are concern to this department ,
if the employees happy with welfare facilities then only the productivity of that organization can
be increased.

Employee welfare means “the efforts to make life worth living for workmen.” .The
labour/employee welfare work aims at providing such service facilities and amenities as would
enable the workers employed in the industries/factories to perform their work in a healthy and
pleasant surroundings favorable to good health and high morale. Employee welfare measures
increase the productivity of organization and promote healthy industrial relations thereby
maintaining industrial peace.

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 BIBLIOGRAPHY

 Balakumar R., A Study on Employee Welfare In Mas LineaLeather Company, Chennai,

and Report Submitted to the SRM School of Management (2010)

 Maheswara Reddy, Human resource management practices inorganized retailing - a study

of select retailers, InternationalJournal of Multidisciplinary Research. December (2011)

 Personnel and Human resource management – P. Subha Rao.

 Research Methodology : C R Kothari

 Aspects of Labour Welfare and social security : A M SARMA

WEBSITES

 www.hlllifecare.com
 www.google.com
 www.hindletex.com

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