INDUSTRY PROFILE

Aluminum is the third most abundant element in the Earth's crust and constitutes 7.3% by mass. In nature however it only exists in very stable combinations with other materials (particularly as silicates and oxides) and it was first until 1808 that its existence was first established. It took many years of painstaking research to "unlock" the metal from its ore and many more to produce a viable, commercial production process. 1888 - The first Aluminum companies founded in France, Switzerland and USA.

1889 - Karl Joseph Bayer (Austrian), son of the founder of the Bayer chemical company, invented the Bayer Process for the large-scale production of alumina from bauxite. Aluminum has only been produced commercially for 146 years and is still a very young metal. Humankind has been using copper, led and tin for thousands of years and yet today more Aluminum is produced that all other non-ferrous metals combined. Growth rate CMIE (Centre for Monitoring Indian Economy) revises GDP growth forecast for FY 2009-10 from 5.8% to 6% Impact of weak monsoon withering away with higher than expected growth in industrial Production. The Aluminum industry in India comprises two main segments

Primary producers manufacture Primary Aluminum Metal in the form of ingots &

slabs. Secondary producers manufacture semi-fabricated items like rolled products, extrusions, rods & foils from the primary metals. Entry barriers to the industry are high mainly because of the large capital costs of an integrated plant. In addition, the industry is very power and technology intensive. In fact the need for a capital power facility increases the capital costs. Production costs and product mix are the basis of competition in the industry. Companies

that have highly integrated production facilities including captive mines and power plants as well as product mix that leans towards value added and semi fabricated products have an advantage over other manufacturers. In fact, integrated aluminum manufacturers who use aluminum ingots produced in house to manufacture value added products derive the maximum benefits from forward integration since they can take advantage of variations prices. High levels of operating efficiencies and capacity utilization coupled with captive power sources are the key determinants of profitability. These factors have helped make India one of the lowest cost Aluminum producers in the world.

COMPANY PROFILE a. Background and inception of the company

Hindalco Aluminium Company was originally Indal Aluminium Company, Limited (INDAL) which was established in 1938. In the year 1944, it was renamed as Indian Aluminium Company Ltd. and in 1945, the company became Public Ltd. Indian Aluminium Company, Limited (Indal), an Aditya Birla Group Company, has been a part of India's aluminium industry for over six decades. As a member of the Aditya Birla Group and a wholly owned subsidiary of Hindalco Industries (holding 96% equity), Indal is a part of one of India's largest business houses. With technological expertise of over 60 years of experience in the aluminium industry in India, INDAL is a market leader in the upstream range of standard and specialty alumina products in India, providing applications for refractories, ceramics and electrical industries. It manufactures alumina and hydrates of aluminium and primary aluminium metal. Recently Aditya Birla Group took over the company and changed its name to Hindalco. HINDALCO is today vertically integrated through all stages of the aluminium business from bauxite mining to Alumina refining, power generation, aluminium smelting, to semifabricated products of sheet, foil and extrusions as well as aluminium scrap recycling.

Hindalco commissioned its aluminium facility at Renukoot in eastern U.P. in 1962 and has today grown to become the country's largest integrated aluminium producer and ranks among the top quartile of low cost producers in the world. With a strategic intent to achieve vertical integration in the copper business, Hindalco acquired two captive copper mines in Australia Nifty and Mt. Gordon through h Aditya Birla Minerals Limited. Recently in 2007 HINDALCO Industries Ltd acquired NOVELIS INC. to boost its presence in downstream products worldwide. It is among the most cost-efficient aluminium and copper producers. The fourth largest aluminium producer in Asia and the largest single location custom copper smelter. Overview of Hindalco Industries Belgaum Overview of plant

The HINDALCO plant at Belgaum was established in 1968 and started operations on 7 th November 1971. It is situated about 12 kms from Belgaum city, beside the national highway. It has a total area of 1400 acres.

HINDALCO industries Ltd. a flag ship company of the Aditya Birla Group is structure into two strategic businesses - aluminium and copper and is an industry leader in both segments. A non ferrous metals powerhouse, close to global scale, it ranks among Indias top 10 companies in terms of market capitalization. For FY 2005 HINDALCO recorded a turnover of Rs.9523crore. In 2009 it was 7791.5 millions. HINDALCO in FY 2000 acquired a majority stake in Indian Aluminium Company Limited (Indal) having a major presence in downstream aluminium products & a leader in special alumina from Alcan of Canada. And changed its name to HINDALCO in 2006. This was the only unit of HINDALCO, which started with both the facilities Alumina plant and Smelter plant. The main products of this unit are Alumina Hydrate, Calcined metallurgical grade alumina and Special grades of alumina and Hydrate. The alumina plant was set up with a capacity of 1,60,000 tonnes of alumina powder per year and smelter plant had a capacity of 73,000 tonnes of metal per year. Now due to the hike in the power rates the plotlines in the smelter had to be de-energized in 1995. The subsidiary of Smelter plant Carbon Paste and Block Plant is still in operations. Owing to increased demand of hydrate, alumina and speciality chemicals in the export market, the Alumina Plant was expanded in several stages and currently operates at about 3,40,000 T of Hydrate (as Alumina) per annum. The Specials plant - a small branch of Alumina plant manufacturing speciality grade of hydrate and Alumina is being operated at 60 KT per annum. The raw material Bauxite is brought from Durgamawadi mines 120kms from Belgaum. About 70% of the total production is exported. The Carbon Paste and Block Plant are operated by the imported raw materials like Calcined Petroleum Coke, Coal Tar Pitch, and Electrically Calcined Anthracite Coal from Korea. Marketing of hydrates and alumina is a major business objective both at the domestic and International levels. The Non-Metallurgical grade Alumina also termed as Special Alumina Chemicals find wide usage in diverse industries such as high-grade refractors, zeolite, alum, plastics, paper, industrial ceramics and high-tension insulators. 5

The Belgaum Works is divided into the following Departments: Alumina Operation and Productions, Specials, Alumina R&D alumina mech, boiler house, machine shop, garage, PPC, CPBP, civil and pump house, EPD, Alumina E&I Smelter R&D, Smelter mech, Smelter elect, Smelter sales, GM office, HR, Accounts, Purchase, Traffic, Stores, Dispatch, Systems, W.C.M, BRDC.

b. Nature of Business carried

A market leader in the Aluminium Rolled Product segment. HINDALCO's Sheet business has its rolling mills located in Belur (near Calcutta), West Bengal and Taloja (near Mumbai), Maharashtra. With state-of-the-art equipment and customized product development, HINDALCO produces a variety of sheet products for applications in: Transport (Bus body sheet, flooring sheet) Building (Corrugated sheet, false ceilings) Consumer Durables (Circles, fan blade sheet, Refrigeration sheet etc.) Packaging (Foil stock, Closure stock) Electronics (PCB sheet) Electrical (Lamp cap) Printing (Litho stock) Heat transfer equipment (Fin stock for AC's, Auto Fin stock, Spiral fin stock) Miscellaneous The company is a major manufacturer of Aluminum. It is not only a major player in national market but also at international level. Already an established supplier to various customers in the Middle East, South East Asia and neighboring Bangladesh and Sri Lanka, further export opportunities are being explored in regional markets around the Indian Ocean Rim. 6

c. Vision, Mission and Quality Policy VISION

To be a premium Metals major, global in size and reach, with a passion for excellence.

MISSION
To relentlessly pursue the creation of superior shareholder value by exceeding customer expectations profitably, unleashing employee potential and being a responsible corporate citizen adhering to our values.

Quality Policy
At Hindalco Industries Limited, are committed to pursue and sustain excellence through continual improvement in all our activities. To achieve these goals, we shall: 7

Meet and exceed the expectations of customers with speed, ensuring reliable and consistent customer service. Associate with suppliers to ensure high quality of inputs through proactive partnership. Improve effectiveness of Quality Management System which emphasis on in-process control. Foster teamwork, educate, train, motivate and involve employees in achieving the Quality objectives. Establish viable modernization of manufacturing facilities and encourage technological innovations. Provide value for money and be globally competitive.

d. Product / Service Profile

Products of Hindalco Belgaum: Chemicals The chemicals units comprise bauxite mining at Lohardaga (Jharkand), Durgmanwadi (Maharashtra), the alumina refineries at Muri (Jharkand) and Belgaum (Karnataka), including facilities for specialty grade alumina chemicals. Alumina Products: Mining and refining are an integral part of HINDALCOs chemicals business. They cover captive bauxite mines in western and eastern India while alumina refineries are located at Belgaum in southern India, Muri in eastern India and Renukoot in central India with a combined capacity of 1,500,000 TPA. Metal and Power: Metal and Power (Metal capacity 1,10,10,000 TPA captive powers 67.5 MW) Hindalcos smelters are located at Hirakud (Orissa) and Alupuram (Kerala)

Sheet: Hindalcos sheet rolling mills are located at Bellur (West Bengal) and Taloja (Maharashtra). This continues caster at Hirakud (Orissa) provides Comcast coils for cold rolling at Bellur. Foil and Packaging: The foil plant is located at Kalwa (Maharashtra) is equipped with the latest microprocessor based gauge control system to ensure world class rolling of foil and state-of-the-art converting equipment. Extrusions: Hindalcos extrusions unit based at Alupuram (Kerala) offers the widest range of alloys and shapes in India. Products The main products of Alumina plant, special prouducts and Carbon paste and block Plant are as under.

Aluminium Hydrate Calcined Alumina Vanadium Sludge Various grades of Alumina and Hydrate produced as Special products Carbon paste and blocks

Special Products Alumina can be broadly divided into two types Metallurgical and NonMetallurgical grades. Metallurgical grade alumina is being used for the production of aluminium. While speciality grade hydrate and alumina is used for various other applications like fusion, grinding media, tiles, refractory, high tech ceramics, filler in SMC/DMC compound, Alum, glass, etc. Key Customers HYDRATES: 9

 Asian Bentonite, Indonesia, Malaysia, Phillipines, Korea Oman chemicals IOSK Singapore Thai Acids, Bankok and Thailand Ta-shain, Taiwan KEL chemicals, Kenya ALUMINA New Co. Ag. Switzerland Hydro Aluminium Stabekk (Norway) Gerald Metals, Switzerland Glencore A.G Zurich (Switzerland)

e. Area Of Operation
The company is not only a major manufacture for India but also a major exporter to other countries. These countries include various customers in the Middle East, South East Asia and neighboring Bangladesh and Sri Lanka. Further export opportunities are being explored in regional markets around the Indian Ocean Rim. Head office deals with the customers and issues a work order to this department. The order consists of a detailed description & specification of product, quantity, schedule and mode of export, what is to be specified on the bags etc. Depending on this order letter of credit is issued and documented. Then the department will inform to the production section to make ready the required quantity of product. And traffic department sends material to corresponding ports (Mumbai, Karwar, Goa) and unloaded in presence of excise officer.

Operation in India

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At the national level it has many factories all over India the list is given below: Dahej Kolhapur Renusagar Belur Kollur Silvassa Belgaum Hirakud Nagpur Kalwa Alupuram Talabira Samri Region Taloja Renukoot Muri Maliparbat

Lohardaga/Gumla Region

Ownership Pattern
The Aditya Birla Management Corporation Limited Founders / Founding Fathers - Mr. G. D. Birla and Mr. Aditya Birla

Board of Directors: Dr. Kumar Mangalam Birla Mrs. Rajashree Birla Mr. C.M. Maniyar Mr. E. B. Desai Mr. S.S. Kothari Mr. M.M. Bhangal Mr. K.M. Bhandari Chairman Managing Director Managing Director Managing Director Managing Director Managing Director Managing Director

Mr. A.K. Agarwal

Managing Director 11

Mr. D. Bhattacharya Mr. Anil. Malik

Managing Director Company Secretary

Sighhi and Company Kolkata R.Nanaboli & Company Mumbai Mavi & Company Kolkata Sandersons and Morgans

Auditors Cost Auditors

Advocates and Solicitors

f. Competitors Information
The industry is oligopolistic in nature with three players in the sector National Aluminum Co Ltd (NALCO) Bharat Aluminum Co Ltd (BALCO) The Madras Aluminum Co Ltd (MALCO) The market is oligopolistic in nature, as there are very few competitors. Compared to its competitors like NALCO, HIDALCO experiences a certain drawbacks such as logistical drawbacks. NALCO which is a competitor is located at Vishakapattanam, where there is a sea port so NALCO has a logistical advantage. Though places like Goa, Mumbai and Mangalore are near to Belgaum but still HINDALCO unit at Belgaum does not enjoy the greater comparative advantage than NALCO, so this affects the pricing decision of a company.

Company NALCO BALCO MALCO

Quantity 800,000* 200,000 50,000

Location Damanjodi Korba Chennai Orissa

State 12 Madhya Pradesh Tamil Nadu

g. Infrastructure Facility
Hindalco offers industry leading technology and operating expertise to a large global customer base. Its network of technology centers around the world has over 200 employees dedicated to R&D and encompasses the full spectrum of research and development, applied technology, market-led innovation and customer technical services. The infrastructural facilities available at HINDALCO are:
1. Quarters: The quarters facilities where quarters are provided for the permanent

employees who work In Hindalco, They are A, B, C, D, E, F, G, J and S types of quarters being provided to the employees on seniority basis.
2. Medical facilities: The Company has well equipped occupational health care center

in the colony premises. Specialists consultation and treatment will be allowed only with the prior approval/referral by the company Medical Officer.
3. Club: For the general recreation and the overall development of employees and

family members company has club facilities with variety of facilities. Games like badminton, billiards, table tennis, carom, chess, cards, internet, gym etc.
4. School: A school building has been constructed in the colony and handed over to

the State Education Department for running the Kannada Primary School. Maintenance of the school building and repairs/requirement of furniture and electrical fittings is carried out by the company.
5. Transport Facilities: The employees are provided with bus facility in all. There 6

buses, which pick up people, scattered in the Belgaum city and after the duty hours they are dropped back at same fixed points.

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h. Achievements
2001: National energy conservation award for Belgaum. First prize for energy 2003 & 2008: Greentech Gold award for environment management. 2004 & 2008: Greentech Gold award for safety. The Prestigious National Energy Conservation Award 2006 was awarded The IT department of Hindalco received prestigious IT certificates BS15000

conservation in Al sector given by government of India, Ministry of power.

to Hindalco. (IT services), ISO 9001 (Software development) and BS7799 (Information security). Hindalco Renukoot IT department is the first in our group as well as in India to be recommended for all these certifications in an integrated manner. The Golden Peacock Award 2007 by the World Environment Foundation for The National Energy Conservation award 2007, second prize, awarded by its remarkable achievements in occupational health & safety. Ministry of power and Energy, Government of India.

The Greentech Environment Excellence Silver Award 2007 by the

Greentech Foundation.

Awards
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Belur Sheet Plant received the National Award for excellence in energy management 2005 from CII- Sohrabji Godrej Green business center. Hindalco was awarded by the Institute of Cost and Works Accountants of India (ICWAI) as ICWAI National award for excellence in cost management 2005. National Award for Excellence in Water Management 2005. Mr. Kumar Mangalam Birla, Chairman, has been named as Ernst & Young entrepreneur of the year 2005. Hindalco, Renukoot has won the National Award for Excellence in Water Management 2006 organized by CII. Hindalco won the prestigious D.L. Shah National Award for Economics of Quality given by Quality Council of India. Hindalco was awarded as Best Employers award for 2007, rank 1 in India and rank 16 in Asia. Hindalco was awarded the Third prize Best Safe Industrial Bailer 2006 by Karnataka State Safety Institute, Department of Factories and Bailer, Karnataka. 2009: State Export Excellence Award for 2005-06 and 2006-07 by Department of Industries and Commerce, VITC.

i. Work Flow Model (End To End)

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Bauxite receipt

Screening /crushing

Wet Grinding

Precipitation

Filtration

Mud Thickening & Washing

Digestion

Spent Liquor Fines Classification Coarser Used for seeding

Washing

Hydrated Filtration

Calcinations

Alumina

Silos

Dispatch

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j. Future Growth and prospects

To install a 18 MW co-generation power plant (steam and power production) in Hindalco, along with railway siding facility for handling coal and bauxite. It will reduce the cost of production substantially. This is expected to be completed by end 2011.

To expand special alumina capacity from present capacity of 138 ktpa to 316 ktpa. On completion, this project will catapult Hindalco to one of the largest specials producer in the world.

MCKINSEYs 7s MODEL
Mc Kinsey Company, a very well known management consultancy firm developed the 7-S framework. It aimed to diagnose the cause of the company problem and to formulate program for improvement.The model starts on the premise that an organization is not just Structure, but consists seven elements with a complex relationship between them.

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For successful implementation of a strategy-large or small the management needs to take account of all seven factors. They are all interdependent, if one element changes then this will affect all the rest.

Structure
It is the skeleton of the whole company edifice. It prescribes the formal relationship among various positions and activities. It includes about reporting relationship, how the company member is to communicate with other members, what roles to perform and what rule and procedure exist to guide the various activities performed by company members, are all parts of the company structure. Organization Structure

VICE PRESIDENT (WORKS)

Head of Production Special Product

Asst. Vice President Operations (Alumina)

Head of Special Projects 18

Head of Account

Head of CP & BP

Head of R&D

Head of Systems

Head of Material

Head of HR

Head of Production Bayer Process

Head of Engg. Al. mech., I&E Boiler House, EPD

Human Resource Department

Human resource department is one, which provides services that are used by all the departments. It is a department, which looks after all the activity of the organization and acts as the head of all departments. It is department, which sets out the objectives of each department and gives order s to perform the individual activities. There are about 200 employees working in this department. Functions: Recruiting of employees and workers. Replacement / Transfer / Promotion of employees. Induction of employees. Probation / Training of the workers Increment / bonus to employees. Information management. Safety management. Welfare management. 19

 Canteen and Transport management. Labor management.

Legal Cell Department Functions: Legal cell department works with the personal department. This department concerned with the solving of industrial disputes. This department legally solves the industrial disputes like civil and criminal cases, also deals with the statutory comprises and maintains public relations.

Safety Department The employees are given the safety gears such as goggles, helmets, hand gloves and safety shoes when they are working in the factory and special first aid medical facilities are also available in health care. The records of accidents, which have taken place and accidents not taken place are maintained. To see that the people work safety there are special safety awards given. There is a training programs conducted as regarding safety. Functions: Conducting periodic safety training programs On the job training Liberating on use of raw materials Conducting periodic tests and essay programs on safety
They conduct SAFETY DAY ON THE 4th OF MARCH every year and on this day some

experienced experts are invited to guide the employees on safety aspects. 20

Security Department Total strength of this department is 85. The function of this department is to provide total security to the industry and also looks after the colonies. Their duty is to see that no material gas out of the company unauthorized and no material comes in month unauthorized there are many guard who look after the security of the company premises. The guards work in shifts. There are 73 contract security guards and 12 permanent employees. They conduct training programs every month. Finance Department Main activity of the finance department is to keep all the accounts of the financial matters. It is responsible for maintaining up to date accounts. The various activities are allocated to different sections. The costing section determines the cost incurred on various items of management, information system is adopted in this section, which is clearly financed by the various banks. Excise section files periodic returns under various acts like PF. Act, Employee state, insurance Act, sales tax, central tax etc. It issues sales tax. This section carries out all the activities concerned with the excise. Pay roll section prepares the pay sheet. They keep account of the raise in pay, bonus, deductions in salary, if any etc of each employee. The net salary of each employee is tabulated in this section. Cash in bank section regulates the day bank and cash transactions. This section issues cheques to suppliers after the instruction frauds the bill payable section. It prepares the bank reconciliation statement and also reconciles the suppliers and customer accounts. It also provides all records to the auditor, internal and external. Bills payable section verifies the purchases bills and receives the debit notes and credit notes as per the instruction of the purchase department. 21

Research and Development (R&D) Department The Belgaum Research and development center (BRDC), which celebrated its silver jubilee on 26 March 2004, was started in 1979 with the assistance of Alcan, Canada. The center now has a team of 23 professionals consisting of doctorates, post graduates and graduates in engineering, ceramics, material science and chemistry. The R&D dept essentially is made up of an analytical section and process and product development section. The main areas of work are all related to Bayer process and special grade alumina and hydrates. The assistant vice president is the head staff. There are a total of 23 employees and 2 trainees. The analysis is done for all the plants of Hindalco.

Functions: New product development Improvement in productivity Improvement in quality Energy saving Technology absorption Cost reduction Improvement in environment, occupational and safety standards.

Systems Department Systems department looks after all the departments in the company. This department was started in the year 1993. In 1994 95 they built the network in Belgaum works which is known as LOCAL AREA NETWORK it consists of 170 personal computers. Functions:

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Upkeep of the Infrastructure. Software development and implementation. Maintenance of application software. The department manages maintains 5 servers; 2 database servers; 1 main server; and 1

application server. The various applications developed by the systems department are Accounting Software, Payroll and resource allocation, Purchasing Software, Inventory Management, Finished Goods Management, Excise Management.

Purchase Department Procedures Involved In Purchase: 1. Getting purchase requisition order. 2. Selection of sub contractors. 3. Vendor rating and performance evaluation. 4. Purchase order. 5. Follow up. 6. Purchase local or cash purchase. 7. Scrap scale sale. 8. Emergency purchase. 9. Bearing procurement. 10. Verification of purchase of product. Functions: This material are received by purchase department is a paper taken from the purchase department is delivered to stores. The departments Material Receiving Receipt (MRR) is sent to 23

the bill section where they will arrange for the payments accept once the material. The purchase department will load into the market for new, drapery, better and latest products. The material is machinery spare parts, chemicals, computers and new invented chemicals. Stores Department Stores department is one which stores all the materials equipments and spares parts etc. Which are needed in this organization for its smooth running? This store department divided into two sub departments Material stores and General stores. Material stores: It is sub department of the stores, which maintain the stock of raw materials needed in the pant like Bauxite, Furnace Oil and caustic soda. This department mainly concerned with the storage of 10 days stock of raw materials in the plant. Before this department use to maintain about 8 months storage but it was reduced to only 10 days storage. But in the rainy season it uses to maintain about 4 months storage of raw materials. General stores: It is also a sub department of stores which maintains the stock of general materials like uniform of workers, shoes, goggles, glows, cups, spare part of machines etc. These all materials are stored under Bin system in this department and each material or item will be assigned a number to which is called a Bin number. There are about 30,000 items are maintained in this department and all have been assigned in Bin numbers. Bin number is 9 digits number which will help in recognize the item very quickly. The first 3 numbers in Bin number will be given information about which section, the second 3 digits give information about which equipment and last 3 digits give information about which item it is. Functions:

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They store spares and other material other than raw materials. The raw materials are stored in the material in the production department. The main goal of this department is to receive the material and store them as and where the department demands the materials where received first are inspected. After the materials are issued the material receiving receipt goes for closing only after they physical checks in the stock is valued. The department directly takes by receiving material receipts codes are given alphabetically and numerically (alphanumeric). Export Department The standard alumina, standard hydrates and special alumina are exported. The quantities exported are as follows. Standard alumina - 150000 tonnes. Standard hydrates - 40000 tonnes. Special alumina - 70000 tonnes. The exports go to 36 countries, touching 80 ports. The transshipment point is at Dubai, Singapore and Srilanka. Hindalcos way of export Sales departments negotiate with various buyers at the price that is prevalent at particular time and intimates the works order to the plant. Plant gets letter of credit specifying the payment term, buyers requirements, material specification and testing of materials. The production planning and arrangement of the logistics dispatch and invoice is carried out. Clearing and forwarding agents ensure that the material received stored and denomination is made at the customs. Excise department ensure proper sealing of the material and prepares pre-shipment documents. Sends the document to the head office of the inspection. 1. If the documents are proper the money is credited. 2. All the required documents are presented before the customs.

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Imports Imports are carried out with the same reasonable care and direction as the exports are made. The major exports and their quantities and the countries from which it is imported are as follows:

Sl no Major Imports 1. 2. 3. Furnace oil Caustic soda Special Chemicals

Quantity 50000-60000 Tonnes 2 0000 Tonnes 60-80 Tonnes

Countries Middle East i.e. U.A.E & Iran Indonasia, China, Singapore U.S.A, U.K & Australia.

Strategy
The strategy refers to short term or long term policies. It means the set of actions that you start with and must maintain the direction and scope of the company over the long term. The strict implementation of the World Class Manufacturing (WMC) policies is the strategy of the company which has managed to get the Company its global recognition. WCM is a competitive strategy that aims for shareholder's value creation enough focus on sustainable and superior QCDIP performance and other parameters. Stratergic Initiatives at Various Plants of Hindalco: 1. Enhancing value added products capabilities 2. Land mark move to strengthen copper mining portfolio 3. Cost reduction initiatives 4. Brown field expansion 5. Green field expansion 6. Dry Mud Stacking 26

Bauxite is transported for 8 months and during other four months of the rainy session stored bauxite is used because there are chances of bauxite getting exposed in rain. On exposing bauxite in rain it becomes heavy and affects productivity.

System
It includes all the processes and information flows that link the organization together, consisting of Production Planning and Control Systems, Cost Accounting Procedures, Capital Budgeting Systems, Recruitment, Training and Development Systems, Planning and Budgeting systems, Performance Evaluation Systems. The flow of authority in system department System Manager

System Executive

System Analyst

System officer

System department looks after the system related issues of all departments in the company. This department has started in the year 1993. The company adopts Quality Management System (QMS). Each and every section / department / shop has to maintain a QMS manual in which all the rules, regulation, procedure etc. is mentioned. Right from major to minor activities details is explained in those manuals for assisting the new and existing workers.

Staff
Staffing is the process of acquiring human resources for the company and ensuring that they have the potential to contribute the achievement of the companys goals. It is selecting people 27

for specific company position and developing in them the ability and skill that they would need to be effective in this and subsequent assignments. The staffing function applies to the whole company. The Company follows a careful recruitment, training, and appraisal for both the operatives and management cadre through its able HR Department. The Company employs 800 employees and about 300 operatives and other contact workers. In Hindalco totally there are 747 employees, in that 501 workmen (unionized), 45 staff (unionized), 119 are local management and 82 head of roll.

Style
Style is one of the seven levels, which top management can use to bring about company change. Companies differ from each other in their style of working. The style of company becomes evident through the pattern of action taken by member of the top management scheme over a period of time. As stated earlier the company is known for its product and style follow. The company emphasises on quality and maximum utilization of resources. The company adopts QUALITY MANAGEMENT POLICY which helps to increase efficiency and cost reduction. Management of Hindalco is Participative in nature. Decision is taken with involvement of subordinates and other staffs. Requirements and ideas of the subordinates are taken into consideration when the decisions are taken. "Management means attracting talented people, nurturing them, developing them, and giving them space," asserts Birla, "decisions need to be made at every level and decisions need to be quick. So, they have to spot, incubate and groom talent at every level of the organization, because more people need to be making high quality decisions." A 360 degree feedback program that allows managers to question even Birlas own leadership style. 28

Skills
The skills refer to the dominant capabilities that exist in an individual. The term skills include those characteristics, which most people use to describe the Company. Companies have strengths in number of areas. These are developed over a period of time. The company 5-S System, which was first originated in China, Quality assurance, KAIZEN etc are some of the disciplinary skills of the company. The entire Country knows the capabilities and competencies that exist within the company. Because of the well polished skills the company stands to be NUMBER ONE POWER HOUSE IN NON FERROUS METALS.

Shared Values
This may be considered to company purpose. The Shared values refers to a set of values and aspiration, of them unwritten that goes beyond the convectional formal statement of corporate objectives. Super ordinate goals are the fundamental ideas around which a business is build. They are its main values. They are the board notions of future directions that the top management team infuse throughout the company they are way in which the team wants express its self to live its own mark.

SWOT ANALYSIS
Strengths Integrated Operations from Bauxite Mining, alumina Refining & Specials Dominant Player in Domestic Market in specialty Alumina & Hydrates Established Export Presence in 30 Countries Among the Best in Specific Energy Consumption in Alumina Industry Highly competent, committed and skilled operative and technical personnel 29

 Specialization in the production of alumina for over 30 years. Weakness High Exposure to Furnace Oil as major Source of Energy Input High Cost of State Grid Electrical Energy & supply interruptions Higher Cost of Logistics & Inward and Outward Material movement 100% by Road Non-global Scale of Operations Alumina Quality more suited to HSS Technology, which is getting phased out. Opportunities Growing Specialty Alumina and Hydrate Market Changes In Specialty Market Structure with 2 Major Global Players Vacating the Market Growing Metallurgical Alumina Demand Lower Investment cost for Brownfeild expansion

Threats Inadequate Bauxite Reserves for operations Both at Current Level & for Expansion Cyclical Metallurgical Alumina Prices Causing Wide Fluctuations in Profitability Cyclical & Rising Furnace Oil Prices Social and Environmental issues related to Red Mud Disposal and storage.

ANALYSIS OF FINANCIAL STATEMENT Growth in the Asian region led by China and India will continue to drive the demand for metals. However, in short term, alumina prices may see a downfall due to higher production from China but the aluminium price will remain stable due to higher demand and shortage of supply. Besides, global refined copper consumption by the Asian region will remain higher due to increasing demand by electrical equipments.

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Hindalcos capacity expansion plan and continued focus on maximizing free cash flow will be the major driver for the growth of the company in the long run. Year EBIT Margin (%) NPM (%) RONW (%) ROCE (%) EPS(Rs) DPS(Rs) BV/Share(Rs) Inventory Turnover Ratio P/E(x) FY06 17.35 14.29 17.23 15.37 14.28 2.20 82.86 2.83 13.3 FY07 18.55 13.76 20.65 19.07 22.12 1.70 107.11 4.32 8.3 FY08 13.64 14.56 16.54 12.44 23.31 1.85 140.94 4.32 5.6 FY09 12.07 11.87 9.38 9.00 13.11 1.35 139.67 5.16 4.7

At the current market price of Rs.212.8, the stock is trading at a P/E of 5.6x on FY08 earning of Rs.13.11 and at a P/E of 4.7x on FY09 earning of Rs.23.31. Considering the strong fundamental and growth prospects of the company, we recommend, BUY on the stock with a price target of Rs.270, providing an upside around 27%. Further at our price target of Rs.270, the stock is quoting at a P/E of 7.1x on FY08 E and 5.9x on FY earnings.

Income Statement Year(Rs cores) Sales turnover Gross Profit Operating Income Other Income Total Income Total Expenses EBITDA FY06 11,396.50 2,849.00 2605.10 243.10 11,640.40 8,791.40 2,852.00 FY07 18,313.00 4,385.10 4015.00 370.10 18,683.10 14,298.00 4,385.10 FY08 19,201.00 3,894.00 3401.10 492.90 19,693.90 15,799.90 3,894.00 31 FY09 18,219.65 3,672.52 3035.87 636.65 18856.30 15,183.78 3672.52

Interest Depreciation Ext ordinary item PBT Tax Net Profit

225.20 521.10

242.40 638.10

280.60 587.80

336.93 645.27

2,105.70 450.20 1,655.50

3,504.60 940.30 2,564.30

3,025.60 705.40 2,320.20

2,690.32 610.88 2,079.44

Balance sheet Year(Rs cores) Equity Capital Pref Capital Share Capital Reserve& Surplus Net Worth Total Debt Current Liabilities Capital Employed Working Capital Capital Assets Investments FY06 98.6 0.00 98.6 9,507.69 9,606.26 4903.44 3445.24 14509.69 2146.40 3520.63 3971.31 FY07 104.3 0.00 104.3 12,313.71 12418.04 7368.60 3937.01 19786.65 2070.25 4167.83 8675.32 FY08 122.7 0.00 122.7 17,173.67 17434.82 8328.58 4293.04 25764.41 2500.94 3831.3 14107.99 32 FY09 170.05 0.41 170.46 23,584.69 23758.32 8324.29 3363.91 32082.61 2120.93 5188.46 19148.84

Inventories Net Current Assets Misc exp Capital Deployed

4095.09 2916.66 6.00 14509.69

4315.31 2625.02 3.17 19786.65

5097.91 2727.21 0 25764.41

4070.14 3675.17 0 32082.61

LEARNING EXPERIENCE

It has been a great opportunity for me to carry out my Inplant and summer project in HINDALCO. The completion of the project has given me a great sense of satisfaction. The corporate exposure has enabled me integrate the theoretical and practical aspects of the study. I am very fortunate in having completed my training at such an esteemed company. As a result of which I got to learn a lot of different things that will help me in future. It has also helped me to a great extent to have an insight into the practical realities of the subjects. As a person we tend to become more disciplined when we are in an actual plant working under our superior. I got to know about the basic skills that we could require for making better decision. It also helped me to get some basic essence of the organization culture and its work environment. 33

In the end I would once again sincerely express my gratitude to all the people who have helped in making my training such a wonderful learning experience.

Thank You

PART - B
34

TITLE OF THE PROJECT

Employee Welfare with reference to Hindalco Industries Ltd., Belgaum Works

STATEMENT OF THE PROBLEM

The study and analysis of the Employee Welfare facilities provided and the level of satisfaction of employees towards the existing welfare facilities used in Hindalco Industries Ltd.

OBJECTIVES OF THE STUDY

To study the various statutory and non-statutory welfare facilities provided by the organization.

Awareness among employees w.r.t the welfare facilities provided. To know the employees expectations about the welfare facilities.

35

SCOPE OF THE STUDY

The study is concerned with the analysis of employee welfare facilities. It will facilitate the management to review its present facilities and adopt further modification.

METHODOLOGY Data collection

Types of data collection involved are primary data and secondary data.

Primary sources of data

It involves data collected as descriptive and qualitative nature. The following methods are used to collect the primary data.

Questionnaire method This research work makes use of structured questionnaire to elicit information from various employees. Some information is also collected by unstructured questions.

Interview method This research work makes use of personal interviews of various employees and management staff. The main soul of the information of the company I have collected is from the HR Manager.

Secondary sources of data

The secondary data is collected with reference of manuals, books, journals and Hindalco website. The information regarding various welfare facilities provided under different acts. Especially under Factory Act and facilities provided by the organization was collected from magazines and reference books.

Sampling Plan
The method chosen for the research is questionnaire method and the respondents for the survey had been selected through random sampling. With the help of questionnaire the study was done through personal interaction with the respondents. 36

Sample size
A sample of 30 employees was chosen from the total workforce of 500 employees.

LIMITATIONS OF THE STUDY

Time was one of the limitations during the project work because of the lack of time the sample size was restricted to employees.

The study was limited to some departments only as well as number of employees. Since this a very large unit, the sample size is restricted to 30.

LITERATURE SURVEY
Origin of Labour Welfare Activities The origin of welfare work in India may be traced from the First World War of 1914-1918. Since the First World War, it has been expanding steadily, mostly on voluntary basis. The economic depression also did much to temper the interest, which the war had kindled. The governments as well as industrialist were prompted to take active interest in welfare work due to the discontent and industrial unrest that prevailed in the country, and to some extent due to moral pressure brought to bear on them by the work of the International Labour Organization. The Second World War received and strengthened welfare movement, and the benefits resulting from a proper regard for the healthy and well being of the employees were gradually recognized, and employers co-operated with the government in the provision of improved amenities. Active interest in welfare facilities has survived the impetus of the war and though the welfare work in India is still considerably below the standards set up in other countries, it has come to stay and is bound to make rapid progress in the years to come, especially when the Indian republic is wedded to the ideal of a Welfare State and a socialist pattern of the society.

Definition
37

According to a report of the International Labour Organization, Workers welfare should be understood as such services, facilities and amenities which may be established in the vicinity of an undertaking to enable the persons employed in them to perform their work in healthy, congenial to good health and high morale. Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. 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. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living.

Purpose
Labour welfare work thus serves the following purposes:

Enables workers to have a richer and more satisfying life. Raises the standard of living of the workers by indirectly reducing the burden on

their pocket.

Absorbs the shocks injected by industrialization and urbanization on workers Promotes a sense of belonging among workers, preventing them from resorting to

unhealthy practices like absenteeism, labour turnover, strike etc. To bring about the development of the whole personality of the workers to make a

better workforce. 38

The important benefits of welfare measures can be summarized as follows:

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

environment. Facilities like housing schemes, medical benefits, and education and recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.

Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration.

Welfare measures provided by Hindalco :

1.

Statutory and Non statutory provisions

2.

Statutory welfare
The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act, the Employees State Insurance Act, the Minimum Wages Act, the Payment of Wages Act, and the Industrial Dispute Act to ensure a fair deal to employees in various aspects of their jobs. 39

a)

The Factories Act, 1948

The Factories Act, 1948 lays down basic minimum requirements for the safety,

health and welfare of factory workers. The Primary provisions in connection with welfare of the workman as contained in the Factories Act are concerning facilities like Washing facilities, Storing and drying of clothes, Sitting facilities, Canteen, Rest Rooms, Drinking Water, Creches, Welfare officers First Aid / Medical facilities etc.

Hindalco has provided sufficient washing facilities in the premises. The company has provided the employees four washing cakes, two bathing soaps and half kg of washing powder is provided to each employee per month. There are latrines and urinals with proper sewage system and sanitary condition provided both for workers.

Canteen facilities are provided exclusively for all permanent and casual employees of the company, trainees, apprentices, and representatives of other company who are on job in the company. There are totally three canteens located at different places. Canteen is outsourced and administered by the Personnel Department. Canteen services are made against coupons printed and supplied by the company for meals and snacks. Two free cups of tea is served to each employee, while on duty for an entire shift. Cost of coupons purchased by an employee in the given month is recovered from the wages/salaries of the employee.

Rest rooms and locker room are provided to the employees. Sufficient numbers of drinking water points supplying treated water are also provided in strategic locations in the each department. Each department is provided with one first aid box. Safety Facilities Hindalco has provided safety equipments to the employees like shoes, goggles, helmet, hand gloves, and gumboots. All equipments are in good condition. And in addition management has also provided uniforms, socks, raincoats, sweaters etc. The company also arranges safety training programs regularly. The safety measures taken by the company are appreciable. 40

b) Workmens Compensation Act, 1923

In case of an employee who sustains injury of work free medical treatment is provided by the company in the referred hospitals & in deserving cases referral at the companys expenses is made to the specialized hospitals within the country. In case of employee dies or attains permanent total disablement due to accident arising out of and in course of employment, compassionate employment is also extended to the dependant. Further, monetary compensation is also paid in such cases, including partial disablement cases, as per the Workmens Compensation Act. All the above benefits are also extended to an employee who sustains injury/dies on route to his residence from his place of work & vice-versa.

c) Maternity Benefit Act, 1961

Maternity Benefits as under the Maternity Benefit Act are extended to the women employees. This includes maternity benefits like cash and non-cash benefits before and after child birth. Leave with average pay for six weeks before and after the delivery. A medical bonus of Rs.25 if the employer does not provide free medical care to the woman. An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth. In case of miscarriage, six weeks leave with average pay from the date of miscarriage.

d) Payment Of Wages Act, 1936

The management of Hindalco ensures payment of wages for all its employees as per the stipulations. A sophisticated computerized pay roll systems enables payment of right wages and due recoveries from the salaries. In order to facilitate the employees, salary is being remitted to the bank account of all the employees.

e) Payment of Bonus Act, 1965

41

Hindalco has been providing bonus as per the Payment of Bonus Act to its eligible employees. The company also rewards the permanent employees Monthly Incentive bonus when the production of hydrate and carbon paste is increased from a base level. It agrees to pay Annual Productivity bonus on the annual production of hydrate (alumina). This bonus is guaranteed at 20%. In order to promote productivity and efficiency a Variable Pay Linked Annual Performance Incentive is given. The payment of this scheme will be made to all the eligible employees in the month of May of the year following.
f)

Payment of Gratuity Act, 1972

Gratuity is a payment made by the employer to an employee in appreciation of the past services rendered by the employee. Completed years of service are taken. More than 6 months shall be taken as a completed year. A period of 6 months or less than 6 months shall be ignored. Gratuity is calculated by the formula Gratuity = Last Drawn Salary x 15/26 x No. of years of service

g)

Employees Provident Fund & Miscellaneous Provision Act, 1952

Employees covered under the Act enjoy a benefit of Social Security in the form of an unattachable and unwithdrawable (except in severely restricted circumstances like buying house, marriage/education, etc.) financial nest egg to which employees and employers contribute equally throughout the covered persons employment. This sum is payable normally on retirement or death.

Provident fund is calculated @ 12% on the basic salary, which indeed

is deducted from Employee's salary and the same plus 12% on the basic is contributed by the employer. So the aggregate 12% + 12% is remitted to the Provident fund Department and along with includes Administrative charges like EDLIS + Admin works contribution is 1.61% (1.11%+0.5%) 42

I.e.; 12% + 12% + 1.61% = 25.61% Where as in Employer contribution 12% is divided into 8.33% (PS) + 3.67% (EPF)

PS: Pension Scheme EPF: Employee PF EDLIS: Employee Direct Link Insurance Scheme

h) The Employees State Insurance Act, 1948

This Act aims at bringing at labour welfare. It provides the following benefits to the insured persons on their dependants like sickness benefit, maternity, disablement, dependents benefit, and medical, funeral expenses benefits. ESI: Employee State Insurance is calculated at 1.75% on the gross salary of the employees whose salary is below Rs. 10000/-per month (w.e.f 2008) and Employer contributes 4.75% on the gross salary of the employee and the aggregate 1.75% + 4.75% is remitted to the ESI Department. 4.75% of gross salary (Employers contribution) + 1.75% of gross salary (Employees Contribution)

NonStatutory Welfare
Non statutory welfare activities will result in a sense of gratitude and loyalty among employees and motivate them to work hard. Generous benefits might, create a sense of overdependence among workers; they may not leave the organisation, causing large workforce stagnation. The non statutory schemes differ from organization to organization and from industry to industry.
a)

Transport Facility
Hindalco has provided bus facilities to the employees (who dont stay in colony) to and from the place of work. Management has also provided bus facilities for school going students (who stay in colony), for medical trips, incase of emergencies and for out station 43

official trips also. Practice of deducting Rs 85 per month from those employees who utilize transport provided by the company.

b) Housing Facility
The company has provided quarters to employees in the premises at the organization and some employees not getting quarters are getting House Rent Allowance. Types of quarters, eligibility
1. Employees in A, B, C Grade 33 and above 2. Employees in D Grade 31 and 32 3. Grade E Type Grossed-up supervisors and above 4. Grade F Type Clerks and supervisors (Grossed-up or not) and above 5. G and J Type for wage roll employees and salary roll employees,including

Staff Gr.III and below supervisors (unionized)

6. S Type Hindalco Guest House staff

Occupants are also entitled for free electricity quota to 140 units per month for J,G and S type quarters. All unionized employees in F type quarters will have free electricity quota of 205 units. When a quarter is allotted depending on the condition white washing/colour washing will be decided. Occupants are entitled for free electricity quota per month as follows: 1. A-2300 units (5) E-250 units 2. B-1300 units (6) F-165 units
3. C-900 units (7) G,J, S 140 units

4. D-600 units The entire quota is subject to power cut imposed by K.E. B. Any consumption above this quota will be charged at the rate fixed from time to time. 44

c) Co-Operative Society
Hindalco has its Employees Co-operative Credit Society Ltd. The society has now completed 32 years and has a membership of 700 members with a total turnover of Rs. 1.1 crore. Apart from providing food grains, the society has also introduced number of schemes by which the members could benefit. It has various loans like House Construction loan, Security loan, Surety loan, the Cummulative Deposit (C.D.) loan, hire purchase loan and mini hire purchase loan.
d)

Hindalco Club
Hindalco has a club for general recreation and overall development of employees and family members. Games like badminton, billiards, table tennis, carrom, chess, cards are played. Facilities like internet, gym, newspapers, periodicals and a good collection of books are available for those who interested. The club celebrates the eve of the Independence Day, New Year and Annual Club Day with variety entertainment programmes by in-house talents. In addition competitions are held annually. Annual picnic
to any of the beautiful spot. All employees are eligible to become a member of the club. The fee payable to be the member is Rs. 25. It is deducted from the salary every month.

e) Community Centre
The Hindalco Community Centre is administered by a committee consisting of a President, 3 Vice-Presidents, a General Secretary, 3 Sectional Secretaries and a Treasurer. The Head HR is ex-officio President who in turn, nominates one Vice-President and a Treasurer. The other members are elected. Apart from being used for functions, the Community Centre hall is hired out to employees for a nominal fee for marriages, reception and other ceremonies of their children or for any religious function. Utensils are also provided on chargeable basis for marriages conducted in community centre.

45

f) Recreational Facilities
In this facility company has provided various competitions for employees and their family members like sports, rangoli, dance, singing, dramas, durga puja etc. Management provides auditorium to conduct such events and competitions. Management also provides scholarship for school going and college going students.

g) Employee Welfare Fund

The purpose of the scheme is to provide financial aid subject to the availability of Fund. All permanent employees are members of the scheme. An entrance fee of Rs. 1 is deducted from his salary at the time of joining the scheme. Monthly contribution is Rs. 3.

h) Medical Facility
The company has a well equipped Occupational Health Centre in the colony premises. Workmen covered under the ESI Scheme and their family members will receive medical facilities under the ESI Scheme. The other employees not covered under ESI Scheme cease to receive benefits under the company health centre. The company will make arrangement for Medical check-up once a year which includes blood checkup, spirometry and ECG.

Other welfare facilities provided at Hindalco Industries Ltd.

a)

House Construction and House Repair Assistance

The company has introduced these schemes for all permanent bargainable employees. House Construction Assistance Loan to maximum of 30 employees is provided in a year. The quantum of loan will be limited to Rs. 1,50,000 per workmen. Interest at 5% will be charged on a monthly basis. Repayment in 96 equal monthly installments. The loan is admissible to those workmen who have put in at least five years of permanent service before retirement.

46

The company will provide House Repair Assistance Loan to a maximum of 40 employees in a year. The quantum of loan will be limited to Rs. 40,000 per workmen. Repayment in 36 equal monthly installments. Interest at 5% will be charged on a monthly basis. There should not be any balance of House Construction Loan for eligibility. The company will provide Marriage and Education Assistance Loan to a maximum of 40 (20 for marriage and 20 for education) employees in a year. The quantum of loan will be limited to Rs. 25,000 per workmen per year. Repayment in 36 equal monthly installments. Interest at 5% will be charged on a monthly basis. The loan is admissible to only those workmen who have put in at least 3 years of permanent service and whose house construction loan outstanding balance is nil.

b) Incentive For Family Planning

The company provides incentives to all employees for family planning operations undergone for self or their spouses as follows: Incentive Not more than two children Three children More than three children Rs. 800.00 600.00 400.00

Irrespective of the number of children if the husband is 50 years or more or the wife is 45 years or more, no benefits will be given. The company shall also reimburse to the employee concerned, cost of recuperative medicine like Iron and B-complex tonic subject 47

to a maximum of Rs.100. If the employee himself undergoes the above operation, a special leave of 7 days is given in addition.

c) Workers Education
Workers Education Centre, Hubli organizes the workers teachers training programs for which the company nominates workmen/bargainable staff in consultation with the Unions, from time to time. The candidates sponsored by the company are given the following facilities.

Wages for the period of training (normally 3 months). Rs. 300 per month towards out-of-pocket expenses Hubli (including boarding and lodging). Bus/train fare to and from Hubli to attend the course. Rs. 750 for the educational tour organized by the centre after completion of training.

d) Farewell for Retirement Or Transfer

When an employee retires from the service of the company, a function is organized departmentally to felicitate the employee with the assistance and coordination of the HR department. The following are provided by the Company. One garland/bouquet for retiring person. Photographs A gift worth amount as per eligibility is given to the retiring person. The company provides free snacks and tea which will be arranged by the HR department. In case of transfer, a farewell function may be arranged at the concerned departments initiative. In such functions photographs and tea are arranged by the company and they

48

may be held in the company premises. Snacks, gifts etc may be arranged only from the contribution made by interested persons.

e) 25 Years Service Award

25 years service award for recipients in the category of Deputy Manager and below will be presented at a function organized by the concerned department. The recipients along with the concerned colleagues will be invited to the function. HR head/Dept. Head/ Jt. President is to attend the function.

f) Kannada Primary School

A school building has been constructed in the colony and handed over to the State Education Department for running the Kannada Primary School. Maintenance of the school building and repairs/replacement of furniture and electrical fittings is carried out by the company. For eligibility the students parent should be a permanent employee of Belgaum Works for one year.

g) Scholarships

Three scholarships of a lump sum payment for Rs. 600 each to three students studying in seventh standard.

Three scholarships of a lump sum of Rs. 900 each to three students studying in PUC/ITI/Diploma in Engineering.

One scholarship of a lump sum payment of Rs. 1200 for a student in Degree Course/Diploma Course (B.A., B.Com., B.Sc. etc) and Rs.1500 for two students studying in Professional Degree Course B.Sc. (Engineering) B.E., MBBS etc.

Two scholarships for passing SSLC 1st and 2nd as per merit Rs. 1200 and Rs. 800 respectively, lump sum one time payment only. Two scholarships for passing PUC-II year

49

1st and 2nd as per merit Rs.1800 and Rs. 1200 respectively, lump sum one time payment only.

Two post-matric scholarships of lump sum one time payment of Rs. 250 and Rs. 150 on the basis of the marks scored in the Tenth Std. Examination held in March/April.

Hindalco Kannada Medium School Scholarship for seven students at Rs. 15 each. Apart from this Hindalco encourages excellence among school children by providing scholarships to eight schools in Belgaum. This amount is given in the form of scholarship to the best performing students.

h) Nischint Policy
All management staff in Grade 31 & Above can avail life term policy from Birla Sun Life. It is a contributory scheme where employee contribution is 40% and employer contribution is 60% of the premium.

i) Working Hours
For all workmen including clerical staff working inside the factory premises or elsewhere like BRDC Administrative building, the hours of work will continue to be as follows: Shift A B C General Timings 10.00 p.m. to 06.00 a.m. 06.00 a.m. to 02.00 p.m. 02.00 p.m. to 10.00 p.m. 08.00 a.m. to 05.00 p.m. 50

However, timing for workmen in the Administrative Bldg. and BRDC only will be as follows: No No of years Respondents 1 0-10 14 2 10-20 08 3 20-30 04 4 30-40 04 Weekdays : 08.00 a.m. to 12.00 noon 01.00p.m. to 05.00 p.m. Saturday : 08.00 a.m. to 12.00 noon for Administrative Bldg. Staff. Leave taken on Saturdays will continue to be accounted as one day. Percentage (%) 47 27 13 13

j) Uniform
The Company issues uniform which employees are expected to wear during regular work. Three pairs of terry cot uniforms will be provided to all permanent employees.

DATA ANALYSIS AND INTERPRETATION

Experience:

51

Interpretation: It is observed from the above that 47% of the respondents are in this company from 0-10 years, 27% of the respondents are from 10-20 years, 13% are from 20-30 years and 13% of the remaining from 40-50 years. From this we can find that most of the employees are in the company from years and are familiar with the welfare facilities provided by the organization.

Name of the department

Alumina Production Special products Alumina Mechanical Boiler house Pump house Alumina E & I C.P.B.P Smelter Mechanical Smelter Electrical

No of respondents
5 5 5 3 1 3 4 2 2 52

Department:

Interpretation: Out of 38 departments, 9 departments were being surveyed.

I. Statutory Welfare Facilities A. Lighting

1. Is there sufficient light in your work area? No 1 2 Criteria Yes No Respondents 30 0 Percentage (%) 100 0

53

Interpretation: The employees find 100% lighting facility in their work area. 2. During night shift is there sufficient lighting in your work area? No 1 2 Criteria Yes No Respondents 30 0 Percentage (%) 100 0

54

Interpretation : The employees find 100% lighting facility during night shifts in their work area.

B. Drinking Water :
1. Is there sufficient number of drinking water taps in your work area?

No 1 2

Criteria Yes No

Respondents 28 02

Percentage (%) 93 7

Interpretation: Almost all the employees find sufficient number of drinking water taps in their work area.

2. Are you provided with cold drinking water in summer season? No 1 2 Criteria Yes No Respondents 18 12 Percentage (%) 55 60 40

Interpretation: More than half of the employees appreciated the availability of cold drinking water in summer season.
3. Is the drinking water easily accessible?

No 1 2

Criteria Yes No

Respondents 20 10

Percentage (%) 67 33

56

Interpretation: More than half of the employees said that drinking water was easily accessible.

C.

Washing Facility :
1. Is there separate hand washing and bathing facility provided? No 1 2 Criteria Yes No Respondents 19 11 Percentage (%) 63 37

57

Interpretation: More than half of the employees said there is a separate hand washing and bathing facility available.

2. Are you satisfied with the washing facility? No 1 2 3 4 Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied Respondents 09 06 03 12 Percentage(%) 30 20 10 40

58

Interpretation: Half of the employees are satisfied with the washing facility.

D. Rest Room :
1. Are you provided with rest room facility? No 1 2 Criteria Yes No Respondents 13 17 Percentage (%) 43 57

Interpretation: 59

Nearly half of the employees said that there is rest room facility in their work area. 2. Are you satisfied with rest room facility? No 1 2 3 4 Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied Respondents 01 11 02 16 Percentage (%) 3 37 7 53

Interpretation: Satisfaction level of the employees regarding the rest room facility is quite low.

E. First Aid Appliances :

1. What is the frequency of replenishing the first aid box?

60

No 1 2 3 4

Criteria Weekly Fortnightly Monthly Quarterly

Respondents 00 14 16 00

Percentage (%) 0 47 53 0

Interpretation: Half of the employees said that the frequency rate of replenishing the first aid box is monthly. Nearly half of the employees said that the frequency rate is fortnightly. 2. What is the extent of satisfaction towards first aid appliances?

61

No Criteria 1 Fully satisfied 2 Moderately satisfied Neither satisfied nor 3 dissatisfied 4 Dissatisfied

Respondents 14 13 01 02

Percentage (%) 47 43 3 7

Interpretation: Almost all the employees are satisfied w.r.t first aid appliances.

F. Canteen :
1. Do you have a canteen in your premises? No 1 2 Criteria Yes No Respondents 30 0 Percentage (%) 100 0

62

Interpretation: Totally there are 3 canteens, 2 in two plants and one in administrative office.

2. What is your opinion regarding canteen? No 1 2 3 Criteria Better Good Bad Respondents 00 07 23 Percentage (%) 0 23 77

63

Interpretation : The opinion of the employees regarding canteen is not good. Hence, it needs improvement.

G. Safety :
1. For what period does the company arrange for training program on safety measures? No 1 2 3 4 Criteria Monthly Quarterly Half yearly Yearly Respondents 18 07 02 03 Percentage (%) 60 23 7 10

64

Interpretation : 60% of the employees say safety training programs are arranged monthly, 23% say quarterly, 7% say half yearly while 10% say yearly. 2. Do you regularly attend safety program whenever it is organized for you? No 1 2 Criteria Yes No Respondents 30 0 Percentage (%) 100 0

65

Interpretation : All the employees always attended the safety training program whenever it was organized for them. 3. Are you satisfied about safety measures given for you? No 1 2 3 4 Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied Respondents 20 06 04 00 Percentage (%) 67 20 13 0

66

Interpretation: Most of the employees are highly satisfied in regard to the safety measures given to them.

H. Health and Medical:

1. Are you satisfied with the ESI facilities?

No 1 2 3 4

Criteria Fully Satisfied Moderately Neither satisfied nor dissatisfied Dissatisfied

Respondent 00 03 03 12 67

Percentage (%) 00 5.55 16.67 77.77

Interpretation : Almost all the employees under ESI are dissatisfied with its facilities.
2. Are you satisfied with the Health and Medical facilities?

No 1 2 3 4

Criteria Fully satisfied Moderately Neither satisfied nor dissatisfied Dissatisfied

Respondents 9 1 2 0

Percentage (%) 75 8.33 16.67 00

68

Interpretation : The employees are highly satisfied with the company health and medical facilities.

II. Non Statutory Welfare Facilities A. Transport Facility For Employees :

1. Do you stay in colony or city?

No 1 2

Criteria Colony City

Respondents 15 15

Percentage (%) 50 50

69

Interpretation: From the survey it was found that 50% of the respondents stay in colony and other 50% in city.

2. To whom are the bus services provided by the organization?

No 1 2 3

Criteria School College Employees

Respondents 15 00 15

Percentage (%) 50 0 50

70

Interpretation: The organization provided the bus services to employees as well as school going children. 3. What is your opinion regarding transport facility provided by organization?
No 1 2 3 4 Criteria Excellent Good Average Fair Respondents 03 27 00 00 Percentage (%) 10 90 0 0

71

Interpretation: Nearly 100% of the employees are satisfied with the bus services provided by the organization.

B. Employee Welfare Fund :

1. Are you member of employee welfare fund scheme?

No 1 2

Criteria Yes No

Respondents 27 03

Percentage (%) 90 10

72

Interpretation : 90% of the employees are the member of employee welfare fund.

2. Are you aware of the benefits provided by the employee welfare fund scheme?

No 1 2

Criteria Yes No

Respondents 20 10

Percentage (%) 67 33

73

Interpretation: Awareness about the benefits of the employee welfare fund among the employees is quite high.

C. HOUSING FACILITY :
1. What housing facility is provided to you? No 1 2 Criteria Quarters House Rent Allowance Respondents 15 15 Percentage (%) 50 50

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Interpretation: 50% of the respondents stay in quarters while other 50% get the House Rent Allowance. 2. Are you satisfied with the housing facility provided to you? No 1 2 3 4 Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied Respondents 14 09 07 00 Percentage (%) 47 30 23 0

Interpretation: 75

Almost 75% of the employees are satisfied with the housing facility provided by the organization.

D. Co-Operative Society :
1. Are you a member of co-operative society? No 1 2 Criteria Yes No Respondents 30 00 Percentage (%) 100 0

Interpretation : All the employees are the member of co-operative society. 2. Are you satisfied with the services provided by co-operative society?

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No 1 2 3 4

Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied

Respondents 15 10 04 01

Percentage (%) 50 34 13 3

Interpretation : Nearly 85% of the employees are satisfied with the services provided by the co-operative society.
E.

Hindalco Club And Community Centre :

1. Are you a member of?

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No 1 2 3 4

Criteria Hindalco club Community centre Both None

Respondents 08 06 07 09

Percentage (%) 27 20 23 30

Interpretation : From the survey it was found that 27% of the employees are the member of Hindalco club, 20% of community centre and 23% employees are members of both. 2. Is there any fee payable to be the member of? For Hindalco club, Rs. 25 is deducted from the salary every month. For community centre, Rs. 2 is deducted from the salary every month. 78

3. Which games are available in the club? Various games like Carom, Table Tennis, Badminton, Chess, and Billiards etc are available in the club. 4. Are you satisfied with the community club and community centre? No 1 2 3 4 5 Criteria Fully satisfied Moderately satisfied Neither satisfied nor dissatisfied Dissatisfied None Respondents 07 07 03 04 09 Percentage (%) 23 23 10 13 31

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Interpretation: Nearly half of the employees are satisfied with the community club and community centre.

F. Recreational Facility :
1. What are the different competitions conducted for employees and family members? Various competitions are conducted like cricket, football, dance, running, rangoli, painting, flower decoration, cooking, quiz, slogan competition and festivals like diwali, birthdays, durga pooja, ayyapa pooja, safety day, environment day, club day, independence day, republic day, workers day are celebrated. 2. Do you participate in community festivals?

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No 1 2

Criteria Yes No

Respondents 16 14

Percentage (%) 53 47

Interpretation: Half of the respondents participate in community festivals.

3. Is there facility of scholarship for children?

No 1 2

Criteria Yes No

Respondents 30 00

Percentage (%) 100 0

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Interpretation : All the employees said that there is scholarship facility for children.

FINDINGS
Hindalco is providing welfare both inside work place & outside workplace to their employees. 82

 From the analysis it can be seen that majority of the employees dont feel that their place of

work is causing any inconvenience to them.

From the study I analyzed that the employee living in colony require a primary school for

their children in the premises.

From this analysis I also found that all the employees are highly satisfied with the safety

measures taken by the company. The study also finds that most of the employees are not satisfied with quality and quantity of food provided to them. Employees feel that the company provides the best transport service. As per the employees, Hindalco is providing the best housing facilities with free electricity units benefits, water supply, market store, entertainment facilities etc. Through the study, it is found that most of the departments are not satisfied with the Rest room facility provided. According to the study, the number of bathrooms and soaps are insufficient to the employees. Most of the employees under ESI scheme are not satisfied with the facilities provided to them. The study specifies that there is unavailability of games in community centre. Drinking water taps in some of the departments is not easily accessible. Welfare Policies are existing in the organization and are revised periodically. Awareness among employees is satisfactory. All the Welfare Facilities are employee oriented.

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SUGGESTIONS
On the basis of analysis and observation made I can conclude that the management should take certain effective measures to improve employee welfare facilities. The following are the few suggestions:

The canteen committee members should taste the food provided to the employees

as they are facing problems due to it, the committee members should take action on the caterer to improvise the quality of food or change the caterer. The canteen menu should be revised regularly so that the workers work enthusiastically. Daily one fruit should be provided which gives strength to them. Separate and well-facilitated rest rooms should be provided to each and every department so that the employees can relax for some time from their busy schedules.

As per the number of employees in each department, the number of washrooms should be increased for the convenience of the employees.

The company should provide 3 better quality washing soaps to the employees

instead of five 501 bars. The PF withdrawal times should be increased from 4 withdrawals to 6 withdrawals for the convenience of the employees.
The drinking water taps are not easily accessible in some departments. Hence the

company should verify and avail it.

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 I also suggest that games should be introduced in community centre so that the

employees who are not the member of Hindalco club can get the benefit through community centre.
The company should start English medium school for the children in neighboring

villages for their better future.

CONCLUSION

It was indeed a great pleasure and wonderful experience for me interacting with the employees of Hindalco during my study of ten weeks.

As per the survey conducted at Hindalco, it can be concluded that the employee welfare facilities is standardized and carried in a systematic manner by the supervisors. From the survey we were able to know the requirements of the employees. Almost all the employees are satisfied with the welfare measures taken at Hindalco.

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No 1 2 3 4

No of years 0-10 10-20 20-30 30-40

ANNEXURE

Questionnaire Individual data Name Experience : :

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Department

I. Statutory Welfare Facilities

A.

Lighting :
1. Is there sufficient light in your work area? Yes No

2. During night shift is there sufficient lighting in your work area? Yes No

B. Drinking Water :
1. Is there sufficient number of drinking water tap in your work area?

Yes

No

2.Are you provided with cool drinking water in summer? Yes

3.Is it easily accessible?

No

Yes

No

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C.

Washing Facility :
1. Is there separate hand washing and bathing facility?

Yes
2. Are you satisfied with the washing facility?

No

Fully NSND

Moderate Dissatisfied

D.

Rest Room :
1. Are you provided with rest room facility? Yes 2. Are you satisfied with rest room facility? Fully NSND Moderate Dissatisfied No

E. First-Aid Appliances :
1. What is the frequency of replenishing the first aid box? Weekly Monthly Fortnightly Quarterly

2. What is the extent of satisfaction towards first aid appliances?

Fully NSND

Moderate Dissatisfied

F. Canteen :
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1. Do u have a canteen in your premises?

Yes 2. What is your opinion regarding the canteen? Better Good

No

Bad

G. Safety :
1. For what period does the company arrange training programme on safety measures?

Monthly Half yearly

Quarterly Yearly

2. Do you regularly attend safety training program whenever it is organized for you?

Yes

No

3. Are you satisfied about safety measures? Fully NSND Moderate Dissatisfied

A. Health And Medical :

1. Are you satisfied with the ESI facilities?

Fully NSND

Moderate Dissatisfied

2. Are you satisfied with the health and medical facilities?

Fully

Moderate

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NSND

Dissatisfied

II. Non-Statutory Facilities: A. Transport Facility For Employee:

1. Do you stay in? Colony City

2. To whom are the bus services provided by the organization?

School

College

Employees

3. What is your opinion regarding the transport facilities provided by the organization?

Excellent Average

Good Fair

B. Employee Welfare Fund :

1. Are you member of this scheme?

Yes

No

2. Are you aware of the benefits under this scheme?

Yes

No

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C. Housing :
1. What are housing facilities provided to you by the organization?

Quarters

House Rent Allowance

2. Are you satisfied with the housing facility?

Fully NSND

Moderate Dissatisfied

D. Co-Operative Society :
1. Are you member of co-operative society? Yes No

2. Are you satisfied with the facilities provided by co-operative society? Fully NSND Moderate Dissatisfied

E.

Hindalco Club :
1. Are you the member of?

Hindalco club Both

Community centre None

2. Is there any fee payable to be the member?

3. Which games are available in the club?

4. Are you satisfied with the Hindalco club and community centre?

Fully NSND

Moderate Dissatisfied

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F. Recreational Facility :
1. What are the various competitions conducted for employees and family members?

2. Do you participate in community festivals? Yes 3. Is there facility of scholarship for children? Yes No No

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BIBLIOGRAPHY

Websites:

http://www.adityabirla.com/ http://www.hindalco.com/ http://www.citehr.com/

Books:

Labour Laws - Misra

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