Triple Bottom Line Analysis-

Shree Abhay Group of Industries, SHEGAON

Brief Introdution of the Group
The group is a family run business, with the following business activities:
1. Manufacturing Activity ( Material Handling ndustry!
". nvestment (#$uities!%&rimarily 'ong Term
(. nvestments ()eal #state!%'ong Term
*. Agriculture
+. ,arehousing
-esides the business the group is also connected with various non.profit organi/ations and
social organi/ations:
1. S! S! G! "! En## $olle#e, SHEGAON. &ost of 0ice &resident and are also the
founder member of the college.
t is one of the reputed colleges for #ngineering in Maharashtra, providing +11
students #ngineering and2 or M-A degree each year. The college is also dedicated
towards solar power development and providing s3ills to the young less privileged people
in modern technology li3e 454 machines etc.
". She#aon Gaura%shan Sansthan. &ost of #6. &resident and the permanent member.
The organi/ation wor3s for protection and breeding of cows, as per the principal
of ndian culture. &resently organi/ation ta3es care of "11."+1 4ows.
(. A#ra&al Sama' Samiti. 7ounder member of Agrasen -havan and body member of
8hree Agrasen 5agar 8amiti
The organi/ation loo3s after welfare activities of community, management of
community hall and also distributes scholarship to the meritorious students. t also
manages cultural fest which brings society closer.
*. Bala'i"andir, "ar%andaySanyas Ashram. &ost of Trustee
-ala9i Mandir is one of the oldest temples in the locality.
Mar3anday 8anyas Ashram, :m3areshwar is a school for preserving and
promoting the traditional ndian 3nowledge of 0edas, ;ita and <panishad. t also
provides free food to the travelers, :perate hospitals and schools.
+. Harlal%a Shool, SHEGAON. &ost of Trustee
Harlal3a 8chool is the cheapest private #nglish school in 8hegaon. t provides
education till 1"th standard.
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=. ITI She#aon. &ost in Advisory -oard
T is the government initiated school for s3ills development which is re$uired by
industries. ,e represent industries on the board. ,e also provide apprenticeship to the
students over there.
"anufaturin#(
Among all the business activities, ma9or involvement with people and planet comes in
manufacturing> hence considering the same manufacturing was chosen for Triple -ottom 'ine
Analysis.
The industrial activity was started in 1?@" by 8hri Ainesh &aldiwal and 8hri )a9esh &aldiwal.
The group is into manufacturing of Material Handling #$uipments, which reduces the human
efforts and increases the efficiency of the customers. ,e are into manufacturing of 4rane
(:verhead #:T, H:T 4ranes, Bib, <nderslung, ;antry, 8teel Mill, 8par3 &roof and )adio
7re$uency controlled 4ranes!, 4hain, 4hain &ulley -loc3 and Hoists. These e$uipments are
re$uired in various types of industries for handling heavy goods during manufacturing,
maintenance etc. and are generally procured while moderni/ing, e6pansion or at the launch of
new pro9ects.
"aterial Handlin# Industry O)er)ie&(
The material handling industry depends upon the macroeconomic strategy of the country 2
world. As per the new 5ational Manufacturing &olicy, ndian government is targeting to
increase the contribution of manufacturing to national ;A& from 1=C to "+C. This coupled with
@C growth per annum translates to the fact that ndian manufacturing sector will add double its
e6isting capacity (to ma3e it thrice the e6isting! in ne6t 11 years.
Also the further e6pansion will be much more Dmaterial handling e$uipmentE intensive than
e6isting. 8o the sector will see good growth in the coming years.
*hat is Triple Bottom Line Analysis+
The T-' is an accounting framewor3 that incorporates three dimensions of performance: social,
environmental and financial. This differs from traditional reporting framewor3s as it includes
ecological (or environmental! and social measures that can be difficult to assign appropriate
means of measurement. The T-' dimensions are also commonly called the three &s: people,
planet and profits. ,e will refer to these as the (&s.
$alulatin# the TBL
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The (&s do not have a common unit of measure. &rofits are measured in dollars. ,hat is social
capital measured inF ,hat about environmental or ecological healthF 7inding a common unit of
measurement is one challenge
1. 8ome advocate moneti/ing all the dimensions of the T-', including social welfare or
environmental damage.
,hile that would have the benefit of having a common unit%dollars%many ob9ect to
putting a dollar value on wetlands or endangered species on strictly philosophical grounds.
:thers $uestion the method of finding the right price for lost wetlands or endangered species.
2. Another solution would be to calculate the T-' in terms of an inde6.
There remains some sub9ectivity even when using an inde6 however. 7or e6ample, how
are the inde6 components weightedF ,ould each G&G get e$ual weightingF ,hat about the sub.
components within each G&GF Ao they each get e$ual weightingF s the people category more
important than the planetF ,ho decidesF
Thus, there is no universal standard method for calculating the T-'. 5either is there a
universally accepted standard for the measures that comprise each of the three T-'
categories.Additionally, the T-' is able to be case (or pro9ect! specific or allow a broad scope%
measuring impacts across large geographic boundaries%or a narrow geographic scope li3e a
small town. A case (or pro9ect! specific T-' would measure the effects of a particular pro9ect in a
specific location. The level of the entity, type of pro9ect and the geographic scope will drive many
of the decisions about what measures to include.
Many of the traditional sustainability measures, measures vetted through academic discourse,
are presented below.
Eonomi "easures
#conomic variables ought to be variables that deal with the bottom line and the flow of money.
,! -e)enue(n business, revenue or turnover is income that a company receives from its
normal business activities, usually from the sale of goods and services to customers
$urrent re)enue:"1 4rore
.erenta#e Gro&th: 1+C (7rom last year!
/! Net .rofit "ar#in( t is calculated by finding the net profit as a percentage of the
revenue.
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$urrent N."( 01
2! In)estment in Human $apital and -esearh and 3e)elopment: Human capital
is the stoc3 of competencies, 3nowledge, social and personality attributes, including
creativity, cognitive abilities, embodied in the ability to perform labor so as to produce
economic value.
t is an aggregate economic view of the human being acting within economies, which is an
attempt to capture the social, biological, cultural and psychological comple6ity as they
interact in e6plicit and2or economic transactions.
"easures ta%en: ,e provide additional incentives to the wor3er based on theproduction.
,e also provide training to our employees to adopt new technology, as we are bringing in
new technology so as to gain efficiency in wor3ing.
4! *a#es and Benefit: ,ages are paid on Monthly basis with additional one month
bonus at Aiwali. Health and 'ife nsurance cover of all employees, )ent free
accommodation for outstation bachelor employees are some of the other benefits.
Annual Salary .ayment: 1 4rore
En)ironmental "easures
#nvironmental variables should represent measurements of natural resources and reflect
potential influences to its viability. t could incorporate air and water $uality, energy
consumption, natural resources, solid and to6ic waste, and land use2land cover. deally, having
long.range trends available for each of the environmental variables would help organi/ations
identify the impacts a pro9ect or policy would have on the area. 8pecific e6amples include:
,! Ener#y $onsumption:t is the consumption of energy or power, e6ample electricity
Annual Eletriity Bill: H1 'a3hs
Ener#y onser)ation refers to reducing energy through using less of an energy service.
#nergy conservation measures such as semi transparent sheet in.place of galvani/ed sheets are
used in the roof of the shed, which help us reduce the lighting load in daytime.
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/! -a& "aterial 5sa#e: 4omplete material is used, scrap generated in process is sold
and it does not cause any harm to the environment.
8teel: =.+1.H.11 4rore
8tores and 4onsumables: 1 4rore
-rought outs: + 4rore
2! Emissions, Effluents and &aste: The processes do not release any gases or waste.
,ater treatment plant where the acids used in galvani/ing plant are neutrali/ed before
releasing are installed, 4ooling towers to provide reuse of hot water are installed.
4! Land 5se: Land use is the human use of land. t also has been defined as Gthe
arrangements, activities and inputs people underta3e in a certain land cover type to
produce, change or maintain itG
Surplus Land is used for: Tree &lantation, ,ater Harvesting, Agriculture etc.
Soial "easures
8ocial variables refer to social dimensions of a community or region and could include
measurements of education, e$uity and access to social resources, health and well.being, $uality
of life, and social capital. The e6amples listed below are a small snippet of potential variables:
,! Employee -elations: Today #mployees are one of the most important resource that
need to be managed. ,e have around 111.1"+ employees, fewer gaps between the
employer and employees provide good relations, anyone can directly tal3 with owners,
and :wners 3now each of them personally.
Labor Turno)er -atio: Appro6imately 11C
/! Health and Safety(Health and 8afety measures need to be provided to the employees
who wor3 for us. #ar &lugs, 8hoes, Hand ;loves, Medical Treatment, 8afety -elts etc are
provided to the employees.
Number of Aidents( 8afety of people is of utmost importance.
2! *a#es to ost of li)in#( Minimum ":1 (<ns3illed 'abour!. Appro6 )s. "112. per day
is the salary for uns3illed labour, with living cost of "+11.(1112. per month.

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4! Non-3isrimination( Aiscrimination is done on the basis of gender, 4ompany does
not hire female employee as the industry deals with heavy e$uipments and being factory
and office both are at same place, and because of safety issues we donIt have female staff.
6! $onsumer Satisfation( There is lac3 of office staff than re$uired, this sometimes
affect the services or put e6tra pressure on e6isting employees.
$onlusion(
Eonomi(
The industry of operations i.e. Material Handling ndustry have good future. The company is
seeing handsome growth in revenue and eventually &rofits and thus provides stability and 9ob
security to the employees.
The wages paid are as per the industry standards, the s3illed wor3er are paid e$uivalent to the
s3illed wor3ers being paid in &une, 5agpur region of the state.
&roper training to the wor3ers is provided to the local2 old employees of the organi/ation to get
adapted with the new technology coming in. This helps them by reducing the cost of ac$uiring
new and costly employee.
En)ironmental(
The old e$uipments being getting replaced by the new machinesbring efficiency and reduce the
power consumption. Also the possible energy consumption measures li3e replacing some of the
galvani/ed sheets of the shed roofs with the semi transparent plastic sheets reduces the lighting
re$uirement in the day time.
The ma9or raw material re$uired is steel, which is used completely and the left over non usable
is sold as scrap to the rolling mills, which uses it in ma3ing new fresh steel.
The processes to reuse the hot water after cooling and water treatment plants are installed,
which reduces the water re$uirement.
The surplus land is used in Tree &lantation, specifically fruit trees li3e Mangoes, 4hi3u, Aawla,
8itafal, 'emon, &omegranate etc and others li3eTea3 wood etc.
The organi/ation also have 1+1 4ubic meters i.e. 1+1111 litter of ,ater Harvesting Tan3, which
harvest the rain water of = 'a3hs 8$uare 7eet area, and helps a lot in increasing the ground
water level. -ecause of this huge storage the water is available at 11feet from the ground even in
month of 7eb in an area of 0idarbha, Maharashtra
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The company has a lot of stoc3 of raw material, hence reducing the inventory turnover ratios. t
is ma9orly because of the remote location of the plant and eventually non.availability of raw
material in very short time.
The company produces lot of noise and causes noise pollution, but being situated in big premise
it donIt disturb any neighbor.
Soial(
-eing small number of labors and that too of the same small town, owners 3now each of them
personally. They can easily come and tal3 with the owners> this also helps them in reducing the
labor turnover ratio.
&roper care is being ta3en up by the company for the employees, the basic safety products li3e
#ar &lugs, 8hoes, Hand ;loves, 8afety -elts, 7irst Aid 4are are made available and provided. All
the Medical e6penses in case of any in9ury are born by the company.
There is shortage or lac3 of the s3illed staff. The lac3 of staff results into delayed communication
and services, which disappoints the consumer.
The company also discriminates among the applicants while hiring on the basis of gender. The
industry deals with heavy goods and also being office and production department at the same
place, the company does not employee any female staff, being safety cautious.
-eommendations(
The company should try to optimi/e the procurement method to improve the inventory turnover
ratio.
The company should try to reduce the noise pollution, in various stages.
The company should hire well.trained staff, which will help them improve customer satisfaction
and also will increase the business opportunities.
The company can consider subsidi/ing the education of the children of employees.
The company should focus on using renewable source of electricity, #6. 8olar energy
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