Post on 07-Apr-2015
AN ORGANISATION STUDY
AT
Kansai Nerolac Paints LtdChennai
A PROJECT REPORT SUBMITTED BY
Alex Asirvatham R
(Reg. No 2887024)
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATIONOF MANONMANIAM SUNDARANAR UNIVERSITY,
TIRUNELVELI
DEPARTMENT OF MANAGEMENT STUDIESNESAMONY MEMORIAL CHRISTIAN COLLEGE, MARTHANDAM,
KANYAKUMARI DISTRICT2008-2010
CERTIFICATE
This is to certify that the project study entitled “AN
ORGANISATIONAL STUDY AT KANSAI NEROLAC PAINTS LTD,
CHENNAI” is a bonafide work done by ALEX ASIRVATHAM R, Reg.
No.2887024 and submitted in partial fulfillment of the award of degree in
Master of business Administration, before Manonmaniam Sundaranar
University, Tirunelveli.
Faculty Guide Head of the Department
External Guide
1.
2.
DECLARATION
I Alex Asirvatham R hereby declare that the project “Organizational
Study at Kansai Nerolac Paints Ltd, Chennai” submitted in partial fulfillment of the
award of the Master of Business Administration Degree of the Manonmaniam
Sundaranar University, Tirunelveli, has been carried out by me under the guidance and
supervision of Prof. Shini MBA., faculty of MBA Department, Nesamony Memorial
Christian College, Marthandam.
It has also not being submitted by me or anybody for the award of any
other degree or diploma of this or any other institution earlier.
Marthandam
Date: ALEX ASIRVATHAM R
ACKNOWLEDGEMENT
First of all, I thank Lord Almighty for his abundant blessings bestowed
upon me for the successful completion of my organization study.
I am extremely grateful to my beloved parents for their excellent
encouragement and support without which I would be what I am today.
I extend my heartfelt thanks to Prof C.T.SAM LUTHER, Head of
the Department, for encouraging me to go for this organization study.
I would like to extend my heartfelt gratitude to Mr. Rajasekaran HR
Manager, Mr. Anandh Babu HR, and Mr. Sugumar HR, for guiding me
throughout the study and sharing his valuable time for providing information
and guidance for my endeavor. I would like to thank all the department heads
and management staff who helped me directly or indirectly for getting
information about each department.
I express my thanks to my friends for encouraging and supporting in
every part of my career.
ALEX ASIRVATHAM R
CONTENTCONTENT
S.No.S.No. TopicTopic Page No.Page No.
11 IntroductionIntroduction
22 Objectives of the studyObjectives of the study
33 Methodology Methodology
44 Scope of the studyScope of the study
55 Industry ProfileIndustry Profile
66 Company ProfileCompany Profile
77 Organization StructureOrganization Structure
88 Material ControlMaterial Control
99 Sales & Distribution ControlSales & Distribution Control
1010 Review of Annual AccountsReview of Annual Accounts
1111 SWOT AnalysisSWOT Analysis
1212 Corporate Social ResponsibilityCorporate Social Responsibility
1313 Future PlansFuture Plans
1414 ConclusionConclusion
INTRODUCTION
Colour has fascinated culture throughout history, every age
and every region has produced dyes and pigment depending on the
available resources. Colour has been with us for more than 20,000 years.
Evidence survives in early cave paintings and the ancient Chinese are
considered to have brought its manufacture and use to a state of
perfection tens of thousands of years ago.
OBJECTIVES OF THE STUDY
The objectives of the study are:
To familiarize with business organization.
Getting practical experience regarding the organizational function.
To learn about the policies and functions of the organization.
To understand the culture in the organization and its effect on employees.
To get industrial exposure and experience.
To understand the production and marketing methods.
METHODOLOGY
This study was undertaken by visiting the Plant location of Kansai
Nerolac Paints Limited, Perungudi, Chennai and spanned over a period of one
month. The information was collected by interacting and interviewing with the
concerned personnel of various functional departments.
The methodology used for the study is through the collection of
Primary data is collected through direct observation and live
discussion with the managers and the staff.
Secondary data is collected annual reports, business journals,
existing records and also from the website of the company.
SCOPE OF THE STUDY
The study is mainly based on the details collected from each department.
It provides a better understanding at functional level of each department i.e.
Purchase, materials, production, marketing, finance and human resource
management. Each and every activities of the company is studied very carefully
with the data available.
INDUSTRIAL PROFILE
The Indian paint industry is an Rs 49 billion sector. The demand for
paints is relatively price-elastic but is linked to the industrial and economical
growth. The per capita consumption of paints in India is very low at 0.5 kg per
annum if compared with 4 kgs in the South East Asian nations and 22 kgs in
developed countries. The global average per capita consumption is 15 kg.
In India the organised sector controls 70 percent of the total market with
the remaining 30 percent being in the hands of nearly 2000 small-scale units. In
India the industrial paint segment accounts for 30 percent of the paint market
while the decorative paint segment accounts for 70 per cent of paints sold in
India.
In most developed countries, the ratio of decorative paints vis-Ã -vis
industrial paints is around 50:50. All the industry majors have a vast dealership
network and are required to maintain high inventory levels. Most of the paint
leaders have technical tie-ups with global paint leaders.
Sector comments
Paint is a mixture of four elements - solvents, binders, pigments and
additives. Solvents give the paint a liquid flow while the binder binds it to the
surface. Pigments impart colour and opacity to the paint and the additives give it
special resistance properties.
Sector trends
The recession in the construction and automobile sector had thrown in shades of
grey across the Industry spectrum, but the revival in these sectors is cause for
cheer for the paint industry as well. The balance sheets of the industry majors
are now painted with bright colours.
Sector specifics
On product lines, paints can be differentiated into decorative or
architectural paints and industrial paints. While the former caters to the housing
sector, the automotive segment is a major consumer of the latter. Decorative
paints can further be classified into premium, medium and distemper segments.
Premium decorative paints are acrylic emulsions used mostly in the metros. The
medium range consists of enamels, popular in smaller cities and towns.
Distempers are economy products demanded in the suburban and rural markets.
Nearly 20 per cent of all decorative paints sold in India are distempers and it is
here that the unorganised sector has dominance. Industrial paints include
powder coatings, high performance coating and automotive and marine paints.
But two-thirds of the industrial paints produced in the country are automotive
paints.
COMPANY PROFILE
Kansai Nerolac Paints Limited embarked their journey in 1920 as
Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Bombay. In 1930, three
British companies merged to formulate Lead Industries Group Ltd. In 1933,
Lead Industries Group Ltd. acquired entire share capital of Gahagan Paints in
1933 and thus, Goodlass Wall (India) Ltd. was born.
Subsequently, by 1946, Goodlass Wall (India) Ltd. was known as
Goodlass Wall Pvt. Ltd. In 1957, Goodlass Wall Pvt. Ltd. grew popular as
Goodlass Nerolac Paints (Pvt.) Ltd. Also, it went public in the same year and
established itself as Goodlass Nerolac Paints Ltd.
In 1976, Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes
Group on acquisition of a part of the foreign shareholdings by Forbes Gokak.
In 1983, Goodlass Nerolac Paints Ltd. strengthened itself by entering in
technical collaboration agreements with Kansai Paint Co. Ltd., Japan and Nihon
Tokushu Toryo Co. Ltd., Japan.
In 1986, Goodlass Nerolac Paints Ltd. turned into a joint venture of the
Tata Forbes and the Kansai Paint Co. Ltd., with the latter acquiring 36% of its
share capital.
In 1999, Kansai Paint Company Ltd., Japan took over the entire stake of
Tata Forbes group and thus GNP became a wholly owned subsidiary of Kansai
Paint Company Ltd.
In 2006, on the 11th of July, Goodlass Nerolac Paints Ltd. name has been
changed to Kansai Nerolac Paints Ltd.
During the journey of continuous performance excellence, we have
entered in to many technical collaborations with other industry leaders such as
E.I. Du-Pont de Nemours & Company Inc., USA and Oshima Kogya Company
Ltd., Japan for our different products.
Our incessant journey of successes will go on backed by our present
human asset of over 2000 professionals and a sales turnover of Rs. 1484 crores
KNPL are the second largest coating company in India with a market
share of over 20%. We are the market leader in industrial / automotive segment
supplying over 90% of the OEM requirements. We are the leader in powder
coatings.
Vision
KNP is gaining from the positive changes triggered by the fast growing
economy in India. The ‘India shining’ story is likely to continue in the years to
come. Conscious of our responsibility towards the society, we stand committed
to invest in neighborhood communities, more and more and improve the quality
of life and inculcate a sense of well-being amongst the people, settled around.
The Corporate Vision of CSR goes like this, “To behave fairly &
responsibly contributing to sustainable economic development and improving
the quality of life in the neighborhood, in the process maximizing stakeholders’
value.”
• Accountable for impact on stakeholders – work force, their
family, the local community and society at large
• Improving the quality of life of the neighborhood in ways good
for development.
Mission
“To contribute positively to the development of the society, by acting as a
good neighbor, considerate of others, playing the role of a good corporate
citizen with passion and compassion.”
Milestones
During FY 2008, KNPL group has sustained Zero lost time injury. ISO
14001, OHSAS 18001 re-certification
HR DEPARTMENT
FUNCTION OF HR DEPARTMENT
To maintain good relationship with the employees.
To look into the welfare of the employees.
To maintain leave register.
Attendance making.
Overtime confirmation.
Recruiting new staff.
Giving training
PURCHASE DEPARTMENT
HR OFFICERS
HR MANAGER
OFFICE ASSISTANT
T&D OFFICER
FUNCTION OF PURCHASE DEPARTMENT
Placing order
Inviting quotation
Correspondents
COMMERCIAL MANAGER
MANAGER
PURCHASE
JUNIOR MANAGER
PURCHASE
OFFICE ASSISTANTSOFFICE ASSISTANTS
JUNIOR EXECUTIVE
OFFICER
FINANCE DEPARTMENT
FUNCTIONS OF FINANCE DEPARTMENT
UNIT HEAD
FINANANCE MANAGER
ACCOUNTANT
ASSISTANT
SUPERINDENTENT
OFFICE ASSISTANT
Financial forecasting and planning.
Acquisitions of funds.
Investment of funds.
Maintaining proper liquidity.
Assigning the chief accounts officer and others.
Accounting of all annual accounts and other periodical report and
statement.
Checking of wages and salaries.
Regular payment of stationary dues like provident fund, sales tax etc.
Furnishing necessary records relating to finance cash to managing
director or chief accountant officer.
STORES DEPARTMENT
FUNCTIONS OF STORES DEPARTMENT
To store the raw materials for the different departments.
To prepare the purchase order.
To prepare the stores records as Bin card and Karade – X card.
General store is the department for storing the raw materials. The
materials are collected as per the order made by the department, which is
known as the purchase order.
QUALITY CONTROL DEPARTMENT
FUNCTIONS OF QUALITY CONTROL DEPARTMENT
To test the quality of raw materials
To check whether the product involves the right proportion of raw
materials.
To maintain the quality of the products.
WELFARE FACILITIES PROVIDED BY THE COMPANY
MANAGER
CHEMIST
TESTER
HELPERS
SAMPLE BOYS
There were several welfare measures provided by the company. They
were provided with the following benefits:
Uniform
Footwear allowances
Washing soap & toilet soap
Turkey towel
Medical reimbursement
Company scholarship
Tour programs
Factory day complement
Special advances
MATERIAL CONTROL
Material control is done by a proper planning. Kansai Nerolac depends
mainly on the planning of the material planning. Another important aspect is
that the centralized purchase of the materials. Rather than buying the materials
for different sources, it is better to purchase from a single vendor, and it is
profitable. The packaging is done locally i.e. in the plant itself so as to reduce
the moving cost and less time.
Another aspect of the material control is done accurately by SAP. The
whole organization is familiar SAP and it accelerates the performance of the
whole unit. A report prepared by SAP is ZMSR report in which the current
stock, last month produced, moving average reports are produced. It helps in
foreseeing the planning and also useful to review the performance of the month.
Purchase policy
The materials to be purchased have to get the approval of the
Research & Development inorder to make a purchase order. And then the
materials are purchased.
In case of scarcity of raw materials substitute materials are also used to make
production. The substitute raw materials have two grades. The 1st material and
the 2nd material. The first material is considered as the low grade (2702) and the
second material is to be the high grade (2356).
Types of purchase
The purchase of raw materials is done only with the well reputed
organization. Everything which is purchased is made by only bulk ordering. The
important material to be purchased for Kansai Nerolac is the Mineral Turbine
oil. It is purchased bulk from BPL (Bharat Petroleum Corporation). In case a
purchase is done outside it should not exceed the period of time. And if it
exceeds the time limit the penalty certificate is issued. Nerolac has a strict
policy on these areas.
Credit Policy
Kansai Nerolac’s credit policy is based on its vendors. Materials are
purchased from different vendors. Normally Nerolac gives credit for the local
vendors for a period of 30days. And this policy differs to the outside vendors.
The main vendor for Nerolac is BPC. And the company has an agreement with
BPC i.e. if the purchase is done between 1-15 days the payment date is 20 and if
the purchase if done between 15-30 days the payment date is 3. Some other
payments for credit for the new vendors are done by negotiations.
Inventory Control
The inventory of Kansai Nerolac is playing an important role in the
organization. The inventory control is mainly based on the requirements of
materials. As it is mentioned above there are two premier products i.e. the
Industrial paints and the Decorative paints. These two raw materials has to be
controlled separately. Industrial paints are kept separately and the decorative
paints to be kept separately. The materials of decorative product can be used in
industrial products in case of scarcity and changes made accordingly. But the
materials of industrial cannot be used in decorative section.
Stores
Kansai Nerolac has 63 depots all over India and 9 factories. The sales
from the stores department are done by certain procedures. Sales request is
given to the stores and also the requirement is to be specified. Then the request
is consolidated by the Head Office. The order, request and consolidated is
updated in the systems and it acts according to the directions given by the Head
Office.
Purchase department asks the stores department about the moving items
and the non moving items in order to make the purchase order for the moving
item. The moving batch is the successful one in the market and the non moving
items are failure batch in the market. According to the information of the
moving and non moving items the purchase order is made for the material. So
there is a link between the purchase department and the stores department. By
having a link with such department the planning, production department focuses
on the business effectively. While making the purchase order the receipts are
maintained. The receipts consist of serial no, date, v.no, time in and time out.
While the materials are to be unloaded into the company, the materials
have to get the QC test certificate. If the QC test certificate is positive the
materials are accepted and it is unloaded from the trucks. And then the store
department gives the out pass receipt with reference to the entry pass.
If the QC test certificate is negative the materials are not accepted and it
is returned back in the initial stage itself. The entry pass and the out pass are
maintained clearly when a vehicle is in and out of the plant.
Each vendor’s material has its unique code number. And each order has
different code numbers. The orders are purchase order [4100], STO (Stock
Transfer Order) [700] and local purchase [460].
SALES AND DISTRIBUTION CONTROL
Kansai Nerolac has a unique indigenous export and sales. The sale is
mainly to the Industrial coatings i.e. the automobiles industry and some other
industry. The sales and the distribution controls are as follows.
Credit Policy
Kansai Nerolac’s credit policy is based on its vendors. Materials are
purchased from different vendors. Normally Nerolac gives credit for the local
vendors for a period of 30days. And this policy differs to the outside vendors.
The main vendor for Nerolac is BPC. And the company has an agreement with
BPC i.e. if the purchase is done between 1-15 days the payment date is 20 and if
the purchase if done between 15-30 days the payment date is 3. Some other
payments for credit for the new vendors are done by negotiations.
Distribution control
The distribution of Kansai Nerolac is playing an important role in the
organization. The distribution control is mainly based on the requirements of
products. As it is mentioned above there are two premier products i.e. the
Industrial paints and the Decorative paints. These two products have to be
controlled separately. Industrial paints are kept separately and the decorative
paints to be kept separately. The product of decorative product can be used in
industrial products in case of scarcity and changes made accordingly. But the
products of industrial cannot be used in decorative section.
Kansai Nerolac has 63 depots all over India and 9 factories. The sales
from the stores department are done by certain procedures. Sales request is
given to the stores and also the requirement is to be specified. Then the request
is consolidated by the Head Office. The order, request and consolidated is
updated in the systems and it acts according to the directions given by the Head
Office.
The sales target for the month period is allotted by the Head Office for
every month. And the marketing executives act accordingly.
POLLUTION CONTROL
Whether you're painting, plating, performing mechanical finishing
operations or doing something else, pollution control equipment is a necessary
part of most every metal finishing operation. Suppliers of pollution control
equipment are constantly working to upgrade the performance of their systems
in terms of both environmental control and energy efficiency.
For wastewater disposal, evaporators and similar types of equipment are
common. With natural gas costs high and showing no signs of a let-up,
suppliers of evaporator systems have focused their efforts on enabling their
equipment to provide the needed evaporation while using less energy.
Preventing air pollution and improving worker safety in some operations
such as hex chrome plating may require use of a ventilation system. Suppliers of
this type of equipment work to improve the extraction capability of the
equipment while minimizing maintenance. This means increasing use of
corrosion-resistant materials of construction ranging from stainless steel and
superalloys to a variety of polymer materials.
In many paint shops, thermal oxidizers are common to prevent volatile
organic compounds (VOCs) and other hazardous air pollutants (HAPs) from
reaching the atmosphere outside the plant. These systems operate at such high
temperatures that they can be one of the big consumers of natural gas in the
plant.
Some suppliers are reducing energy consumption by employing
regenerative thermal oxidizers that recover the vast majority of heat that would
normally exhaust out the stack to the atmosphere. The recovered heated air can
be used for warehouse or building comfort heating and process make-up air.
Energy consumption is not such a big issue with filter systems, but
system maintenance is. Back-flushing systems and other concepts that reduce
maintenance and extend media life are coming more common in filtration
applications.
REVIEW OF ANNUAL ACCOUNTS
Annual Accounts
Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Sources of funds
Owner's fund
Equity share capital 26.95 26.95 25.51 25.51 25.51
Share application money - - 1.44 - -
Preference share capital - - - - -
Reserves & surplus 627.50 566.74 484.78 380.55 297.89
Loan funds
Secured loans 16.08 19.18 30.02 38.56 32.59
Unsecured loans 77.54 78.77 79.98 71.22 54.55
Total 748.07 691.64 621.73 515.83 410.54
Uses of funds
Fixed assets
Gross block 541.98 480.15 424.41 354.62 294.34
Less : revaluation reserve - - - - -
Less : accumulated
depreciation
304.55 272.94 234.59 194.73 162.71
Net block 237.44 207.20 189.82 159.89 131.63
Capital work-in-progress 35.62 26.64 17.63 17.96 29.26
Investments 294.43 232.14 154.82 163.93 179.12
Net current assets
Current assets, loans &
advances
508.67 478.84 460.91 407.20 293.95
Less : current liabilities &
provisions
328.08 253.18 201.46 233.16 223.43
Total net current assets 180.59 225.66 259.45 174.04 70.53
Miscellaneous expenses not
written
- - - - -
Total 748.07 691.64 621.73 515.83 410.54
Notes:
Book value of unquoted
investments
273.70 224.78 147.46 157.92 173.11
Market value of quoted
investments
21.25 7.89 7.53 6.37 6.33
Contingent liabilities 2.85 5.91 2.88 6.90 14.36
Number of equity
sharesoutstanding (Lacs)
269.46 269.46 255.08 255.08 255.08
Ratio Analysis
Mar
'05
Mar
'06
Mar '07 Mar '08 Mar '09
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 11.50 20.00 11.50 12.00 12.00
Operating Profit Per
Share (Rs)
51.65 61.72 67.36 69.73 58.76
Net Operating Profit Per
Share (Rs)
363.01 416.08 504.74 489.68 513.14
Free Reserves Per Share
(Rs)
116.78 149.19 189.94 210.21 232.76
Bonus in Equity Capital 61.23 61.23 61.23 57.96 57.96
Profitability Ratios
Operating Profit
Margin(%)
14.22 14.83 13.34 14.24 11.45
Profit Before Interest
And Tax Margin(%)
11.80 11.67 10.62 11.15 8.62
Gross Profit Margin(%) 15.50 15.97 14.17 11.23 8.73
Cash Profit Margin(%) 11.97 15.83 10.85 10.95 9.43
Adjusted Cash
Margin(%)
10.66 10.30 10.04 10.95 9.43
Net Profit Margin(%) 9.77 12.88 8.27 9.00 7.04
Adjusted Net Profit
Margin(%)
8.46 7.35 7.46 9.00 7.04
SWOT ANALYSIS
Strengths
Asia’s no.1 in Industrial coatings.
80% share holder in Industrial coatings.
Supplying industrial coatings for major reputed companies.
Weakness
Lowest share market in Decorative Coatings.
Not using CNC machines.
Bad marketing techniques.
Opportunities
South Indian market shows opportunity.
Decorative segment can considered as an opportunity.
Threats
Growing competitors like Berger, Asian paints in Industrial coatings.
Rising crude oil prices and resultant change in derivatives prices is a big
concern.
CORPORATE SOCIAL RESPONSIBILITY AND REPORTING
CSR Policy
Kansai Nerolac Paints will make a positive contribution to
society by targeting social and cultural issues, maintaining a humanitarian
approach, focus on areas in and around our factories and areas of operations.
KNP, is a socially responsible organization, while transacting
business, will adopt fair and just means, that meet the norms of Corporate
Governance. KNP will make a positive contribution to society by targeting
social and cultural issues, maintaining a humanitarian approach, focus on areas
in and around our factories and areas of operations. KNP will lend a helping
hand to the society in which it operates, covering areas of health, education,
preservation of environment and community development.
KNP believes that good neighbors are considerate of each other,
are inter-dependent and believe in partnering at times in times of trouble. As far
as possible, KNP will encourage its employees to render support in the areas of
social activities, make them participate in the CSR initiatives at the Company
level and recognize their work and contribution to the society. Most of the
activities will be carried out through the GNP Charitable Trust. KNP will
contribute 0.4 - 0.5% of its net profit annually, to the corpus of the Trust, in
order to carry out its activities from the interest earned of the accumulated fund.
Triple Bottom Line
CSR covers four core areas like social responsibility,
business responsibility, environmental responsibility & stakeholder
involvement.
The concept of “Triple Bottom line” (TBL) is catching up fast
in the corporate sector, which measures overall performance of the company
based on its combined contribution to economic prosperity, environmental
quality and social capital. TBL focuses, not just on the economic value added,
but also on the environmental and social value impacted-positively or
negatively. Such reporting for the corporate will increasingly become essential
in coming times. At Kansai Nerolac, our effort to publish Annual reports on
CSR & Environment (ER) is a positive step taken in this direction.
The CSR covers four core areas like social responsibility,
business responsibility, environmental responsibility & stakeholder
involvement.
Social responsibility
We respect human rights, work on employee welfare, protect
consumers’ interest, and make community & socially responsible investments,
keeping the socioeconomic development in mind.
Business responsibility
We meet statutory & legal compliances, are conscious of
corporate governance obligations and invest in R&D, to offer best of the
products to our customers.
Environmental Responsibility
We believe in environmental friendly technology and practice
the same. All our automotive coatings meant for painting of passenger cars and
decorative product formulations are free of lead. All our factory locations work
for safe disposal of hazardous solid waste & reduce the same every year.
Measures for preventive & precautionary control of environment pollution are
taken to minimize the pollution load. Waste reduction is strictly followed &
demonstrated. We voluntarily publish Environment Report (ER), annually a
practice followed for the last six years.
Stakeholder Involvement
We propagate principles and ethical values enshrined in the
organization to the stakeholders. Wherever possible, we do encourage
employees to volunteer for carrying out social responsibility activities. Ours
therefore is an enlightened company which has chartered the journey of CSR in
order to broaden the traditional corporate goals of profitability by adopting
social trusteeship as a desirable objective. Set of policies, vision, mission is
integrated in business operations & decision making processes to achieve this
objective. The CSR report presented here covers Community & Socially
Responsibility activities & investments.
Karmayog Ratings
This year the rating for KNPL has improved and we have been
rated 4/5. There are only 10 companies in this bracket, out of 1000 assessed,
and we share this space with some top-notch companies.
www.karmayog.org is a unique free platform for concerned
citizens – for social and civic issues since June 2004.It provides a networking
platform for ordinary citizens and NGO’s to engage with each other and with
government ,media, corporates, institutions, etc. They had undertaken a study
and rating of the 1000 largest Indian companies in 2008. This is the second CSR
study and rating by them, the first one being done in 2007 for the largest 500
companies in India.
This was the first-of-its-kind rating in India and the world. In
their first year study for the year FY2007- 2008 KNP had been rated at 3, on a
scale of 1 to 5. There were only 40 Companies forming this elite class (roughly
8%).This year the rating for KNP has improved & we have been rated 4/5.There
are only 10 companies in this bracket, out of 1000 assessed & we share this
space with some top notch companies like Infosys Technologies, TCS, TATA
Steel, ACC to name a few. The Karmayog CSR Ratings are based on various
parameters and are from Level 0 to Level 5 with level 0 being the lowest on
CSR.
For 2008-2009
Karmayog
CSR Rating
(Highest)
5/5
4/5 3/5 2/5 1/5 0/5 TOTAL
No. of
Companies
0 10 45 221 231 493 1000
Percentage
(%)
0 1 5 22 23 49 100
KNPL’s FY09 rating
For 2007-2008
Karmayog
CSR Rating
(Highest)
5/5
4/5 3/5 2/5 1/5 0/5 TOTAL
No. of
Companies
0 4 40 138 89 229 500
Percentage
(%)
0 1 8 27 18 46 100
KNPL’s FY08 rating
Areas of Focus
From the time we started out on the CSR journey, the focus has
been on core work areas of Health, Education, Community Development &
Environment Preservation. In the current financial year, most of the activities
pursued have centered around these areas with a prime focus on Health and
Community Development.
Areas of Focus
Activities 2008-09
The CSR issues adopted for support by the company are relevant &
contemporary and well supported by staff volunteers, wherever feasible. Staff
volunteering is a good practice as it builds up a positive image encouraging
social involvement of employees, which in turn develops a sense of
loyaltytowards the organization, helping and creating a dedicated work force
proud of its company. The management acts as a facilitator in promoting the
activities. We have tried to cover variety of activities in the area chosen. The
distribution of expense in areas of focus is given below in the pie chart.
% OF EXPENSE HEAD WISE
(2008-09)
How we operate
For every unit of ours we prepare a detailed Annual plan of the CSR
activities to be carried out in respective areas. The activities are evaluated for its
relevance and a budget/ schedule is assigned. The plant in the scheduled month
rolls out the activity by involving an agency or plans to execute on its own.
Wherever required, volunteers are deployed for carrying out the activity.
The activity once completed is documented and reviewed on a quarterly
basis. CC & CSR team in HR also gets proposals or identifies activities at local
level and on merit decides to participate, once approved by the Trustees.
Health
Program Vision
The objective is to support various activities towards improving and
generating awareness about general health & primary health care to the general
masses, and the people residing with the vicinity of our plants. Activities It is a
challenge to create general awareness about health issues & improving public
health especially in the rural regions. It is our constant endeavor to address to
the various health issues faced by the people in areas where our manufacturing
units are located. Various activities are carried out to address the health related
issues faced by men, women, children, senior citizens and so on. This is carried
out with the help of supportive team of doctors/ NGO’s within the vicinity of
our plants and coordinated by our employees. Through the various activities we
aspire to educate & bring about health awareness amongst local community
which will address their ignorance towards general health care.
Activity Numbers No. of persons
Covered
Health
Camps
18 1865
Through the various activities, we aspire to educate and bring about
health awareness amongst the local community and address their ignorance
about general health care.
Key Activities
Health Check-up camp in Haryana
Two health camps were organized for the villagers in Rewari district,
where 495 patients were covered. The tests conducted at the health camp were
ECG, diabetes, general health check up & opthal. The camp was organized with
a team of 4 external doctors and our employees. Awareness about the camp was
created amongst the villagers through articles published in the local news
papers, distributing leaflets and announcements made on public address systems
Free Medical Check Up Camp in Uttar Pradesh
Free medical check up camp was organized on 12 th Dec 2008, at the
nearby Primary School at Nabipur, Kanpur Dehat. Local Villagers as well as
school children were covered for the programme. They were checked for Blood
Sugar, BP, Eyes, Teeth and general check up. The team of doctors comprised of
four specialist doctors from Ganga Ram Hospital, Kanpur. The programme was
inaugurated by the principal of the Primary School. She appreciated the
efforts taken by Nerolac in helping out the needy and in her address asked
nearby industries to follow the same so that overall development of the area can
take place at a faster pace.120 villagers benefited from the camp.
Medical Camp
Kansai Nerolac Paints conducted Free Health Checkup Camps in the
month of August’08 in 15 towns of India. The duration of each camp was 2
days per town. A total of 1250 people participated in this camp. The facilities
provided were general check up of blood pressure, pulse rate, sugar and skin
related diseases. Eye & blood sugar test were also performed. All the
Participants were given personal Health Check-up cards and informed about dos
and
don’ts to keep fit. The check-ups were conducted by certified MBBS Doctors
and Eye Specialist.
Indian Medical Association (IMA) Chiplun, Maharashtra
IMA is a well known association of Medical Practitioners which
undertakes various health activities in the form of medical check up camps,
health education campaigns and health education series to focus on health of
tribal women and children who are deprived of basic health
facilities. The association had planned to conduct at least two health camps for
tribal community
in the remote areas of Khed and Chiplun taluka. Kansai Nerolac participated in
this endeavor
of IMA by providing financial assistance towards this activity, and also
distributed Health Education Materials to the schools in the villages around
Khed & Chiplun.
Sri Shanmukhananda Fine Arts & Sangeetha Sabha, requested for financial
assistance to provide proper medical treatment to the poor & needy patients who
were visiting the ‘Nerolac Eye Care Centre’ and the same was met. The
free/subsidized medical activities, both diagnostic and operative, are targeted at
the poor and low income groups.
Medical Research Foundation, Chennai
Sankara Nethralaya, Chennai has been providing eye care surgeries and
assistance towards eye care free of cost to the economically backward segment
of the population. This year they also inaugurated Sankara Nethralay-Kolkata
and kick started the Tele-Opthalmology Project. This project would help
dispensing of glasses to the people in rural areas and the first 1000 cataract
surgeries free – of - cost program was also launched. Kansai Nerolac provided
financial assistance to this Foundation.
Shri Jalaram Arogya Seva Trust, Gujarat approached us with a request for
financial assistance towards purchase of a Laser Machine for their eye care
department. Kansai Nerolac supported this institution towards this activity.
Maharogi Sewa Samiti, Warora is a society working towards the
rehabilitation of leprosy patients & coordinated for some of India’s most daring
and prominent ecological and social programs. We provided assistance for
painting of the dormitory at Baba Amte’s Ashram.
Kewalram Chanrai Hospital, Mumbai
Is a private hospital in Ulhasnagar near Mumbai, which caters to the local
population under the management of Jaslok Hospital. As a part of the CSR
activity Kansai Nerolac got associated with KC hospital to decorate the walls of
the children ward and made them more playful with our Disney paint designs.
KNPL conducted Free Health Check-up Camps in the month of
August’08 in 15 towns of India. The duration of each camp was 2 days per
town.
Education
Program Vision
Education plays an important role in the progress and development of an
individual as well as of the nation. Our goal is encouraging & supporting
institutions imparting education. We also try to focus on educating girl child &
children residing in nearby villages in the vicinity of our manufacturing units.
The Right to Education Bill is the legislation to notify the 86th
Constitutional amendment, which gives every child between the age of 6 and 14
years the right to free and compulsory education.
We realise that a lot of work needs to be done in this area, especially in
rural India. Our objective is to support educational institutions and to impart
education to children particularly residing in smaller areas. The goal is to work
towards long term economic & social growth of the weaker sections of the
society.
Education plays an important role in the progress and development of an
individual as well as of the nation. Our goal is encouraging & supporting
institutions imparting education.
Key Activities
Shashi Mangalyam, Mumbai (School for children in need of special care)
imparts education to special children, mainly belonging to under privileged
section of our society and also works in multiple ways to support them. They
also provide Medical & Paramedical services, psychological
Testing/Counseling, psychiatric treatment as per need and many other facilities.
They were raising funds for extension of their Building to accommodate more
children and provide them better facilities. We provided financial support to this
institute towards the building extension.
OM Sairam Charitable foundation, Navi Mumbai
Is a foundation, which is tirelessly working towards providing for
education & education facilities to the children belonging to the economically
weaker strata of the society of the fishermen community. We pledged a
donation to support this institution in their cause.
Bharitiya Samaj Sewa Kendra,Chiplun
Is a non-political,non-profit making Organisation working in the field of
Child & family Welfare. Their scope of work has been tremendously growing
and hence to cater to the need for bigger space for their office & for conducting
education sponsorship activities they have started construction of a new
building at Chiplun. We provided them support to maintain their building.
Canossa special school, Mumbai for special children approached us with a
request for providing financial assistance towards the building fund. We
provided the same as it would go a long way in providing the much needed
accommodation facilities to the under privileged & disabled children.
The Akanksha Foundation, Mumbai is a non-profit organization with the
vision to equip all students with the education, skills and character they need to
lead empowered lives. Akanksha works primarily in the field of education,
addressing non formal education through the Akanksha centre and also formal
education through the Akanksha Schools. They approached us with a request for
donation towards maintenance and upkeep of the King George Memorial
Centre, at Mahalaxmi Mumbai, which is utilized by 120 kids for learning of
subjects. To make their environment conducive for learning, we extended our
support.
Bunyad School, Haryana is a reputed school in Bawal providing
primaryeducation. The institute had approached us with a request for a donation
towards purchase of a photocopier machine. They were facing problems in this
area since there was no photocopy facility available near the school. With this
assistance provided to them we eliminated the problems they faced towards
photocopying the exam question papers and various study & educational
material
Child development Centre, Haryana
The school aims at providing a playful & informal learning environment
to children from kindergarten to the 5th grade through early childhood
educational activity oriented plays, Audio-Visual Teaching aids, Music &
dance. We pledged our support by donating a Water Cooler and 29’’ Flat screen
colour television to this centre.
Primary Schools, Uttar Pradesh
We took up the initiative of distributing desks and chairs to various
Primary Schools in the areas around Kanpur Dehat. Local Villagers as well as
school children were present during the inaugural ceremony, which was
presided over by Village Pradhan, School Principal, Staff members and the
Works Manager at Jainpur. The school Principal appreciated the efforts taken
up by Nerolac towards providing the basic facilities for the students, which shall
go a long way in development of the students.
Deaf & Dumb School Akbarpur (Jainpur)
We distributed 7 Lunch Table Sets, 1 Daisy Player and 40 Tracksuits to
Deaf and Dumb School at Akbarpur on. Teachers, Staff members and Students
were present during the inaugural ceremony, which was presided over by the
Principal and our Works Manager, Jainpur .The Principal appreciated the efforts
taken up by KNPL in providing the basic amenities for the deaf and dumb
children, which motivates the morale of the students, and grooms them to
become responsible citizens of the nation.
Environment Preservation
Program Vision
It is our continuous endeavor to support preservation of resources like water
& the green cover and provide clean environment.
Key Activities
Tree plantation has been carried out in our plants on World Environment
day. We undertook the activity of renovating a park in Bawal.
Lead Free Paints- KNPL has been proactively working on eliminating
Lead and Mercury from paint formulations.
All Architectural paints & passengervehicle coatings have been made
lead & mercury free.
Community Development
Our goal is to provide basic facilities to the community settled in the
vicinity so as to support and improve their basic living and thus fulfill the role
of being a good Corporate Citizen.
We believe that supporting activities which focus towards development
of the society as a whole is essential towards building a strong & sound
community. A vital part of being a good corporate citizen is giving back to the
society & communities that we live & work in. Our goal is to provide basic
facilities to the community settled in the vicinity so as to support & improve
their basic living and thus fulfill the role of being a good Corporate citizen. Our
commitment towards sustainable development of communities reflects through
the various activities
that we undertake.
Key Activities
Armed Forces Flag Day
The Collector of Mumbai has been tirelessly working for the Welfare of
the ex servicemen & their families. We have pledged our support towards this
noble cause.
Concern India Foundation, Mumbai is a non profit, public charitable trust
that supports development-oriented oragnisations working with the most
vulnerable people of our society in the areas of education, health, community
development and the environment. We pledged a donation to this foundation &
this endeavor of ours will go a long way in our achieving their aim of helping
the underprivileged help themselves.
Kherwadi Social Welfare Association, Mumbai (KSWA) is a 80-year-old
NGO, founded in 1928. KSWA has been providing uninterrupted service to the
slum dwellers in the field of Education, Healthcare and Vocational Training.
We have provided donation to this foundation to support them in carrying out
the renovation of the Rural development & Vocational Centre situated at Wada
Taluka head quarters in Thane District of Maharashtra.
Senior Citizen’s Settlement Foundation, Mumbai works towards the cause of
Elders’ Home. We supported them in this cause by providing financial
assistance and villagers while waiting outside the Railway Station for city buses
& local transport.
Akbarpur Police Station, Uttar Pradesh
We distributed 4 computers at Akbarpur Police Station. The Local Police
Staff were present during the inaugural ceremony, which was presided over by
the Circle Officer and our Works Manager. The Circle Officer appreciated the
efforts taken up by Nerolac in providing the facilities for the authorities at the
police station, which shall help in maintaining database, relevant information
that can be accessed readily.
Old age Home, Haryana
To provide good quality potable water & good life to the inmates of the
old home, we donated a water filter & few chairs.
Pick Up Shed, Chiplun
A Pickup Shed was constructed outside the Chiplun Railway Station,
which is used by passengers and villagers while waiting out side the Railway
Station for city buses & local transport.
Summary of CSR expense
Health Education Community
Development
Environment
Preservation
Total
Expense
Share of
Expense
21.7 10.55 11.22 1.62 45.3
OUTSTANDING PERFORMANCE, AWARDS
Best Vendor Award from customers like Toyota Kirloskar Motors
(TKML) for Cost and from Maruti Udyog Limited (MUL) on overall
commendation.
Awards for marketing initiatives like Cannes 2007 Bronze for press Ad.
Emvies 2007 Gold & Silver for Best Media innovation, Best case study -
Media innovation (Impression Rang Jama De), Best Integrated
Campaign, Best Media strategy & People’s Choice Award.
Readers Digest Trusted Brands Gold Award for 2008.
Frost & Sullivan Market Leadership Award in Indian Industrial Paints
& Coating Market.
Hall of Fame from CTO Forum, PC Quest & Best Implementation-APO
in IT.
ICSI National Award for Excellence in Corporate Governance – 2007
from the Institute of Company Secretaries of India.
Greentech Environment Excellence Gold and Silver for Bawal and
Chennai units.
ABCI Silver for Annual Environment Report.
FUTURE PLANS
Kansai Nerolac plans 45 ‘impression style’ zones
Kansai Nerolac Paints, a leading paint manufacturer, has lined up a total
of 45 ‘Impression Style Zones’ in Chennai, Bangalore and Hyderabad in the
next six months. First of such zones was set up in Chennai recently. “We will
open 15 such zones in each of these cities in the pilot, catering to the whole
population there,” Mr C. Venugopal, General Manger (Marketing), told
Business Line. After studying the results of the pilot, the company would set up
a number of such outlets across major cities. “What we offer at these outlets is
unique. We help the customers visualise design and conceptualise their homes,”
he said. The concept showroom is equipped with a workstation where a trained
associate, using a specially designed software, would show the customer how
things would look like. “Upfront, the customers would know what colour would
fit into the scheme of things. They can try out other combinations, if they don’t
like a particular pattern,” Mr Venugopal explained. Each outlet would be
backed by 20-25 company-approved contractors. They, in turn, would employ
Nerolac-certified painters to take up the job.
CONCLUSION
The tremendous growth of automobile industry and construction activities
in the country has increased the demand for industrial/decorative materials,
especially paints and its allied products. With the implementation of new
technology, improving the marketing strategies and solving the existing
problems, the company is ensured of bright prospects.