A STUDY ON

EMPLOYEE WELFARE FACILITIES

IN

ZUARI CEMENT LTD

DONDAPADU
A project report Submitted in Partial Fulfillment of
The Required for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF
ANDHRA UNIVERSITY
Submitted by
K.YELLAJI
(H.T.No.20854100021)

Under the Esteemed Guidance of

Mrs.G.SUBHA, M.B.A.,
Lecturer in Management

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

ADITYA INSTITUTE OF P.G STUDIES
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437
2008-10

ADITYA INSTITUTE OF P.G.STUDIES

DEPARTMENT OF BUSINESS MANAGEMENT
( Affiliated To Andhra University)
Aditya Nagar, ADB Road, SURAMPALEM-533437,E.G.Dt
Phones:(08852)252243,252250,cell:9866576662
-----------------------------------------------------------------------------------------------------------------------

CERTIFICATE

This is to certify that the project entitled EMPLOYEE WELFARE FACILITIES

with reference to ZUARI CEMENT LTD, DONDAPADU is the bonefide work done
by K.YELLAJI with Regd.no:20854100021 during the period 2008-10 in partial
fulfillment of the requirement for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION in Aditya institute of P.G studies affiliated to
Andhra University is a record of benefited work carried out by under my guidance
and supervision.

Project Guide

Head of the dept.

Mrs, G.Subha

Mr. J.Nagendra Kumar

External Guide

DECLARATION

I hereby declare that the project report entitled A STUDY ON EMPLOYEE

WELFARE FACILITIES with reference to ZUARI CEMENT LTD, DONDAPADU
submitted for the degree of Master of Business Administration is my original work and has
not formed the basis for the award of any degree, diploma, associate ship, fellowship (or)
similar other titles. It has not been submitted to any other University or Institution for the
award of M.B.A.

Date:
Place :
(K.YELLAJI)

ACKNOWLEDGEMENT
I should take the responsibility to acknowledge the following distinguished
personalities who graciously allowed me to carry out this project work successively.
I am also thankful to all other members of the staff for their kind
cooperation in this behalf. Mainly I am very much thankful to Mr. J.Nagendra Kumar,
M.B.A, and Head of the department of management studies.
I am highly thankful to my guide Mrs. G.Subha madam, M.B.A, Lecturer in
Management for her valuable advices and encouragement throughout the course.
It gives me great pleasure for doing this project in ZUARI CEMENT LTD. My sincere
thanks to P.PHANI KUMAR AND MADAN MOHAN HR for the matchless
motivation.

Finally I am thankful to my parents and all my friends who have made this project a
success.

(K.YELLAJI)

CONTENTS
CHAPTER I
INTRODUCTION
NEED FOR THE STUDY
SCOPE OF THE STUDY
OBJECTIVES OF STUDY
METHODOLOGY
LIMITATIONS

CHAPTER II
INDUSTRY PROFILE

CHAPTER III
COMPANY PROFILE

CHAPTER IV
THEORETICAL FRAME WORK

CHAPTER V
DATA ANALYSIS AND INTERPRETATION

CHAPTER VI
FINDINGS
SUGGESTIONS
CONCLUSION

APPENDIX
QUESTIONNAIRE
BIBLIOGRAPHY

Chapter I
INTRODUCTION

INTRODUCTION
Welfare means faring or doing well. it is a comprehensive term , and refers to the
physical, mental, moral and emotional well-being of an individual. Further, the welfare is a
relative concept, relative in time and Space, it, therefore varies from time to time and from
country to country.

Employee welfare, also referred to as betterment work for employees, relates to

taking care of the well-being of workers by employers, trade unionsand government and
non government agencies. It is rather difficult to define

the term employee welfare

precisely because of the relatively of the concept. Reported the Royal commission on
Employee. Employee welfare is comprehensive terms including various sources Facilities
and amenities provided to employee for their betterment. These facilities generally do not
result in monetary to the employees. Welfare facilities may be provided not only by
employees but also by the government trade unions and other agencies too.

The central government has taken special interest in employee welfare activities
after the emergence of India as a republic. The government has enacted various laws from
time to time to promote the welfare activities.

CEMENT INDUSTRY

INTRODUCTION

Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st March, 1989 and deli censed on 25th July, 1991.

However, the

performance of the industry and prices of cement are monitored regularly. The constraints
faced by the industry are reviewed in the Infrastructure Coordination Committee meetings
held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination).

Its

performance is also reviewed by the Cabinet Committee on Infrastructure.

Capacity and Production

The cement industry comprises of 125 large cement plants with an installed capacity of
148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of
11.10 million tonnes per annum.

The Cement Corporation of India, which is a Central

Public Sector Undertaking, has 10 units.

various State Governments.
159.38 million tones.

There are 10 large cement plants owned by

The total installed capacity in the country as a whole is

Actual cement production in 2002-03 was 116.35 million tones as

against a production of 106.90 million tones in 2001-02, registering a growth rate of

8.84%. Keeping in view the trend of growth of the industry in previous years, a production
target of 126 million tones has been fixed for the year 2003-04. During the period AprilJune 2003, a production (provisional) was 31.30 million tones. The industry has achieved a
growth rate of 4.86 per cent during this period.

Exports
Apart from meeting the entire domestic demand, the industry is also exporting cement and
clinker.

The export of cement during 2001-02 and 2003-04 was 5.14 million tones and

6.92 million tones respectively. Export during April-May, 2003 was 1.35 million tones.
Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

For the development of the cement industry Working Group on Cement Industry
was constituted by the Planning Commission for the formulation of X Five Year Plan.
The Working Group has projected a growth rate of 10% for the cement industry during the
plan period and has projected creation of additional capacity of 40-62 million tones mainly
through expansion of existing plants. The Working Group has identified following thrust
areas for improving demand for cement;
(i)

Further push to housing development programmers;

(ii)

Promotion of concrete Highways and roads; and

(iii)

Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the
Department of Industrial Policy & Promotion commissioned a study on the global
competitiveness of the Indian Industry through an organization of international repute, viz.
KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several
recommendations for making the Indian Cement Industry more competitive in the
international market. The recommendations are under consideration.

Technological change
Cement industry has made tremendous strides in technological up gradation and
assimilation of latest technology. At present ninety three per cent of the total capacity in
the industry is based on modern and environment-friendly dry process technology and only
seven per cent of the capacity is based on old wet and semi-dry process technology. There
is tremendous scope for waste heat recovery in cement plants and thereby reduction in
emission level. One project for co-generation of power utilizing waste heat in an Indian
cement plant is being implemented with Japanese assistance under Green Aid Plan. The
induction of advanced technology has helped the industry immensely to conserve energy
and fuel and to save materials substantially. India is also producing different varieties of
cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland
Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement,
Sulphate Resisting Portland Cement, White Cement etc. Production of these varieties of
cement conform to the BIS Specifications. It is worth mentioning that some cement plants
have set up dedicated jetties for promoting bulk transportation and export.

NEED FOR STUDY :

Cement industry has to play important role in the structural changes of the country.
It helps welfare activities in Vishnu cements Ltd., in order to motivating employees of the
form through the study.

Management is the art of getting the work done by the people, therefore ift is necessary to
seek the co-operation of the employee for a in order to increase the production and to
higher profits. The co-operation of employees is possible only when they are satisfied with
employees and the workers on the job.

Good welfare and welfare facilities measures enables the employees and his family
to a good welfare facilities like housing medical and children education, recreation etc.,
helps to improve the conditions of the employees. Employees welfare measures leads to
high morals and high productivity and help to raise the standards of the industry in the
county. I have selected this topic because it very challengeable topic to go through various
employees felling on depth about diffcuties of employees and various activites in the
welfare department

THE SCOPES OF EMPLOYEE WELFARE IS :

To enrich better quality of wok life.

To improve the efficiency of work

To enhance the productivity.

To enrich industrial relation and industrial peace

To raise the physical standards of the workforce.

To enhance the purchasing and serving capacity of the employees.

To make employee work contribute systematically to the nations economy.

To reduce absenteeism.

To minimize the employee force.

Employee welfare is having a wider scope and may have indifferent countries

depending upon the socio-economic conditions, political outlook and social philosophy.

OBJECTIVES OF THE STUDY :

The objective of the present study are :

To examine various welfare activities in VISHNU CEMENTS LTD,.

To evaluate the effectiveness of the welfare measures that are presently being

implemented in realizing the objective of employee about the welfare facilities.

To evaluate and analyzed the options and views of the employees about the welfare

facilities.
To study the importance of welfare measures and policies in the organisation

METHODOLGY :

The relevant Data information was collected from two sources primary data and
secondary data.

Primary data was collected through questionnaire and by observations. The study is
done by conservation with various employees of various departments and specially welfare
department. Secondary data was collected through various sources such as published
annual reports, magazines and journals, records of the company.

LIMITATIONS OF THE STUDY :

They were no significant limitations while conducting the survey but

1.

Duration of the project study is very limited which is not sufficient

2.

For detailed study, hence time is the limiting factor.

3.

The re ports presented by the firm, which forms a basis for analysis, may be core

limitation to the study.

4.

Many of the respondents were not interested to express their views.

5.

Some employees had problem in under standing the questions were I have to

Explain them, which took a lot of time.

Chapter II
Industry Profile

CEMENT INDUSTRY
Manufacturing of the cement was first started in madras in 1904. A real
beginning was, however, made in 1912-1930 when three companies were formed. By the
time the plant started, there were 21 factories with an annually capacity of 3.28 million
tones.
The government had a complete control on the production, distribution and price of
cement and this damped the growth of the cement industry. In 1997, the government
announced that 12 percent post tax returned on net worth was fairy enough and retention
prices would be fixed to ensure it.
This provided an initial momentum for investment in the industry.

The real

impetus was provided when partial decontrol was announced in 1982. Under this policy,
all existing cement units were required to give up to 66.6 percent of there installed capacity
as levy at controlled price. The balance production was treated non levy cement and was
allowed to be sold in the market at the ruling prices.
An event of significant importance from the long term point of view has been the
process of consolidation and measures and acquisitions witnessed in the cement industry
during recent period. The leaders are now finding economical to accrue an existing under
ill-managed company rather than to float a new company.

The demand for cement is expected to reach 109 million tones during the terminal year of
the ninth plan based on 8.5 percent annual average growth rate.

The capacity and

production targets for the year 2005-06 are placed at 135 million tones and 113 million
tones respectively.

CEMENT INDUSTRY IN INDIA

India cement industry the fourth largest in the world, with a turnover of Rs.18,000
crores comprising 59 companies with 117large companies and above 311 mini companies.
Enjoying the status of being the first industry to be liberalized 16 years ago. The cement
industry was one of the few industries liberalized in 1980s. The generated tremendous
interests and within a decade nearly forty million tones capacity was added.
improved the availability of the cement, which checked price raise.

This

Also in the

competition among the players improved the quality of cement.

After observing the healthy development occurred because of the partial decontrol,
the government of India announced total decontrol of cement companies were free to sell
there production at what ever the price the market would bear July 1991, the government
of India announced delicensing of cement industry its impact can be seen from rapid
changes in cement industry. Strain of getting cement permit had disappeared. Before
1982, when construction was planned the consumer had to prepare to get cement, even 6
to 8 months in advance and therefore he had to apply and wait for the permit. But now, the
situation has tremendously changed, cement is available at the country. In short, consumer
today do not have to run, from pillar to post to get cement.

CEMENT INDUSTRY IN ANDHRA PRADESH

Cement industry is the most important and the largest expending industry in
Andhra Pradesh. It plays a vital role in development of state. Andhra Pradesh is having all

the necessary natural resources required to produce cement in large quantities. The state
stands first in the country so far as limestone deposits are concerned. Out of approximate
90000 about 30000 million tones are available in Andhra Pradesh which account for 34
percent in the total limestone deposits.
Andhra Pradesh cement industry started in 1939. There were two cement plants
opened, one was at Vijayawada and the another was associated cement companys plant in
Tadepally, Guntur district in 1939. As on 31 st march 1998, there are 8 large scale cement
units with an installed capacity of 16 million tones and 24 mini cement ad grinding units
with an installed capacity of three million tones producing various types of cement in
Andhra Pradesh. In these 18 large cement plants, only two cement units under public
sector corporation i.e., cement corporation of India plants situated in Adilabad and Tandur
in Ranga reddy districts.
The entire Andhra Pradesh cement industry concentrated in the districts of
Adilabad, Nalgonda, Cuddappah which are having total lime stone reserves. Andhra
Pradesh is having two lime stone deposits clusters viz., yerraguntala and Nalgonda. There
are major and 11 mini cement plants situated in Nalgonda districts. As on 31st March,
1998, the Andhra Pradesh total major cement units installed capacity was only 12.60
million tones and this figure increased to 16 million tones at the end of this year because
two major units Larsen and Turbo, Visakha cement plants started there operations with
installed capacities of 2 and 1 million tones and the existent market leader Raasi cements
limited. Expanding there capacity with another 20 million tones. The mini cement plants
sector also having an installed capacity of 2.5 million tones. By the end of this year the

total Andhra Pradesh cement industries installed capacity has reached to 18.5 million
tones.
The total production of entire Andhra Pradesh cement industry is approximate 12
million tones. In this the major cement plants contribution was 10.5 million tones where as
the mini cement plants only producing the approximate 1.58 million tones. The cement
consumption of Andhra Pradesh is only 6 million tones. In 1997-98 and this figure has
increased to 7 million tones by the end of 1998 because of the various developmental
program taken up by the state government and the industrys dynamic promotional
activities. The cement configuration in the state has been observing steady growth.
In 1996-97 the cement consumption was only 4.87 million tones and further the
consumption increased to 5.87 million tones. As far as production and consumption is
concurrent, Andhra Pradesh cement industrys performance increase its 5.29% and 8%
respectively in the year 1996-97. This percentage increase is very low when compared to
the national average i.e., 8.5% because in this period there is no production activity from
the newly erected plants as well as the existing plants which are increased there installed
capacity. One more reason for this type of low growth rate was number of new plants and
the existing plants, which were increasing their capacities started there production in
various parts of the country the cement exports from Andhra Pradesh observing on
extraordinary fluctuations. After staring the exports in the year 1992-93, the first two
years observed some significant growth, after that a steady decreasing situation observed in
the exports.

In 1992-93, 36,200 tones exported to the Bangladesh and some other

countries and this exports figure increased to 1,35000 tones in 1993-94. In 1997-98, there
is only 10,000 tones of cement exported to Burma from Visakhapatnam.

PROBLEMS OF CEMENT INDUSTRY

The above brief discussion shows that the cement scenario has undergone a sea
change- from that of shortages and premiums just few years ago to that of surplus
production now. However this surplus production has brought in its wake new problems
like cut throat competition, unremunarative prices and deepening financial crisis. The
main problems of the cement industry are outlined below.

1. BURDEN OF HIGH TARIFFS

The cement industry is facing high tariffs, high excise duty, sales tax, royalty lime
stone and coal etc the excise duty on cement has been steadily rising. In 1995 - 1996 the
excise collection from the cement industry amounted to Rs. 2,242 core which was 5.5% of
the total excise in that year according to the development council to the cement industry,
the total levies on cement per tone amount to as much as 66.8 per tones. The effective
burden on cement amounts to as much as Rs. 35% of the retail price of cement and 47% of
the ex. Factory price excluding excise sales tax and freight. This is much higher as
compared to the burden in the other countries making the Indian cement industry
internationally uncompetitive.

2. POOR QUALITY OF COAL

Coal is an important input in the cement industry and accounts for 15 20 % of
cash expenses in the manufacture of cement. On an average 250kg of coal is required to
produce 1 tone of cement. Coal in India has to be moved over long distances of 1000 to
12000 km to some plants in north, south and west India. There is a severe shortage of coal
in the cement industry. The quality of coal supplied to cement units is also highly
unsatisfactory as only D , E & F grades of coal are supplied to these units. The ash cement
in Indian coal is very high and this restricts production. To meet the twin problems of
shortage of coal and poor quality of coal (due to high ash contents), the emphasis on
imports of coal is now increasing.

However this option in addition to involving

expenditure of foreign exchange resources, also places those cement plants disadvantage
which are located far from ports as they have to incur extra costs for doubling handling and
freight.

3. THE POWER SHORTAGE

Power is another important requirement and along with coal forms 40 percent of
the total cost. Power cuts, unsteady and inadequate power supply from state electricity
boards have created serious problems for cement units. This is all the more so as the
production of cement is a continues process requiring uninterrupted power supply to
operate efficiently. To cope with the problem of power shortage, cement companies have
been obliged is to make heavy investments in captive power generation and also auxiliary
generation in wind forms, particularly in plants located in coastal areas.

4. TRANSPORTATION PROBLEMS
Transportation costs make up around 20 percent of the total cement price. The
industry predominately depends on railways, but due to shortage of wagons, cement
dispatches by railway declined over the years. The Indian railway has introduced Own
your wagon scheme where in cement companies have been allowed to purchase wagons.
This has lead to some marginal improvement and has enabled the cement companies to
tide over distribution bottlenecks.

However the increase distribution cost is forcing

companies to pass costs to the customers.

5. DEMAND CONSTRAINTS
Till the year 1990-91, the demand for cement was mainly dependent on
government spending as the government with a 40 percent off take was the single largest
consumer of cement. However, due to financial constraints, the government was forced to
cut down on a wide range of developmental activities.
constraint.

This resulted in a demand

In recent years the quality of liberalization and the opening up of the

infrastructure sector to the private sector and the foreign sector, have given new hopes of
substantial expansion in demand of cement.

UNDER UTILIZATION OF CAPACITY

Under utilization of capacity is a recurrent future of cement industry. A study
conducted by economic times bureau on capacity utilization of cement plants in the
northern region was 72.9 percent, in the eastern region 64.8 percent, in western region 91.2
percent and in the southern region 80.3 percent. This shows that under utilization of
capacity is particularly marked in the cement plants located in the eastern region. One of

the main factors according for low capacity utilization in this region has been the demand
constraint.

CEMENT TECHNOLOGY
In 1986, 56 percent of the cement plants were employing the uneconomical wet
processing. Due to the high labor and maintenance costs and smaller size, these plants had
a high cost of production not only this? On the basis of the cement production of 33
million tones achieved in 1985-86, there obsolete technology resulted in wastage of over
2.5 million tones of coal, and 800 million tones of electricity every year. In recent year
there has been a gradual shift from wet to modern, fuel efficient dry process plants.

CEMENT MANUFACTURING ASSOCIATION (C.M.A):

Cement Manufacturing Association is the apex body of Cement manufactures in
India, established in 1961 with 17 member companies, now it has 57 cement companies as
members having 115 cement plants. Both the Private and Public Sector cement units its
members. It is registered under the Societies Registration Act with its registered office in
New Delhi and branch office Mumbai. The following are the main objectives and Services
of the CMA.
Main Objectives of CMA:

To promote the growth of the Cement Industry.

To protect the Consumer interest

To identify newer applications of cement usage.

To establish contacts with similar bodies abroad for exchange of information, data

and publications.

SERVICES:
1.

Government

2.

Industry

3.

Exports

4.

Seminars / Workshops

5.

Publications

Chapter III
Company Profile

CEMENT INDUSTRY AN INTRODUCTION

The objective to establishment a company provides so many benefits. It provides

benefit not only to the owner of the company but also society and nation. Besides, the main
objective of earning profits, it creators employment to the unemployed, become a source
on Income to the Government which in turn be utilized for the benefit of the nation and
provides Suppliers and service to the consumers.
The basic raw material for the manufacture of cement is limestone. Besides
limestone, laterlite, iron ore, gypsum are used as additives. Power, coal forms major
portion in the total cost of the production. It pay taxes ti the government in the form of
Royalty, Cess of limestone, Central Excise duty, Sales tax, Cess on cement dispatches,
making fee and railway freight. The cement industry in India witnessed a growth of 5.5%
during 2003-2004 against 8.7% during 2002-2003.

INTERNATIONAL LEADING CEMENT PRODUCERS

LAFARGE

HOLCIM

CEMEX

HEIDEL BERG

COUNTRY WISE ITAL CEMENTI PLANTS

INDIA: STATE WISE CEMENT PLANTS & CAPACITY.
S.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21

State
Andhra Pradesh
Rajasthan
Madhya Pradesh
Gujarat
Tamil Nadu
Maharastra
Chatisgarh
Karnataka
Uttar Pradesh
Jharkhand
Punjab
Himachal Pradesh
West Bengal
Orissa
Bihar
Kerala
Delhi
Jammu & Kashmir
Assam
Meghalaya
Hariyana
TOTAL

No. of plants
21
14
10
11
13
8
9
8
8
5
3
3
4
3
1
2
1
1
1
1
1
128

LEADING CEMENT PRODUCING GROUPS IN INDIA

Capacity(mn.t)
21.83
18.52
17.69
17.58
14.56
11.8
10.82
10.09
7.31
4.57
4.25
4.09
3.13
3.04
1
0.62
0.5
0.2
0.2
0.2
0.12
152.12

ACC & GUJARAT AMBUJA GROUP

GRASIM & ULTRA TECH GROUP

INDIA CEMENT GROUP (ICL) D

REGION WISE CEMENT PRODUCTION

Region

Mn.t / Anm

Northern

27.65

Eastern

22.96

Southern

47.10 (Ultratech, Pipavan, Gujarat 5.3)

( Ultratech, Chandrapur, Maha 3.3)

Western
Central

29.38
25.00

Southern Region:

Andhra Pradesh

21.83

Tamil Nadu

14.56

Karnataka

10.09

Kerala

00.62

Andhra Pradesh

Plant

Location

Capacity

ULTRATECH

Tadipatri

2.3 Min.T

RAASI

Wadapalli

2.3 Min.T

ZUARI

Yerraguntala

VARIETY WISE, CEMENT PRODUCTION

OPC

43%

PPC

48%

SLAG

8%

OTHER -

1%

PLANT CAPACITY UTILIZATION

SLAG -

OTHER - 1%

INFRASTRUCTURE;

8%

2.2 Min.T

Cement industry depends heavily on coal, power and railways for its smooth and
efficient operation. In fact its productivity, efficiency and out put depend mainly on the
proper and adequate support from all these sectors. In this light, cement Manufactures
Association maintained close interaction with all the three government organization to
secure their support and cooperation.

POWER:

Production of cement is a continuous process and therefore needs interrupted power

supply. A majority of cement production operations depend exclusively on power. During
the year under review, cement units did not face much power problems. Most of the
cement units have installed captive power plants to get uninterrupted and quality power.
As on 31st march 2004, the total captive power generating capacity installed in cement
industry was1748.63 MW. Of this 65% is based on diesel and 35% on thermal. In addition,
wind forms of capacity around 78 MW have been installed. During the year 2003-04,
45.04 million tones (38.33% of total production in India) of cement was manufactured
using captive power as against 44.33 Million tones (39.81 of the total production) in 200203.

TRANSPORTATION:

It was very critical for certain cement plants owing to acute shortages of wagons
for movement not only of cement and clinker but also coal and gypsum. This problem was
mainly due to railways giving topmost priority for coal movement to al the thermal power
stations in the country and PDS movement. The transportation problems of these cements
plants were compounded in the wake of the sudden restrictions imposed by various State
Governments on the carrying of capacity of trucks. The availability of wagons to cement
plants in other parts of the country was more or less satisfactory. For resolving the wagon
shortage problem, which could affect supply of cement to important ongoing construction
projects and they causes series repercussions in the overall economy, cement
manufacturers Association, as well as the affected individual cements plants, made various
representations and also met the Chairman, member (Traffic), additional member (Traffic),
executive Directors and other senior officials of the railway board and Zonal Railway.

PROFILE OF THE ORGANIZATION:

The project appraisal was completed in April 1984 at an estimated cost of Rs.
65.00 cores. The letter of indent for manufacture of one million come Portland cement per
annum was transferred in the name of the company are converted into industrial license
vide industrial license No.469(84) dated 31.12.1984 by the government of India, ministry
of industries. Although the license was for the one million tones capacity, considering the
high capital cost, the company was installed at 6 lakh tones capacity per annum.
Size of cement plant, it take about six months to stabilize the main plant namely
Rotary Kiln was lighted up on 31st October 1986. the central production was commenced
and entered in the market from 14th January 1987.normally for this the operations and to
solve all the initial teething troubles unfortunately when the plant was in the process of

stabilization, there had been frequent moves, interruptions, tripping and stoppages and
finally A.P State Electricity Board imposed 60% power-cut and gradually increased up to
90%. As a result stabilization of the plant operations had taken an abnormal period and
finally the management of the company decided to install four numbers of diesel
generating sets of 2,270 KVA capacities each. Therefore, the final project cost had been
increased to Rs. 75.20 cores. Finally, the project had been completed by 31 st august 1987.
The plant was established with a consistent production 24000 M.T.s per day during 1990
of Rs. 250.38 lakhs from 2600M>T>s per day by

Increasing pre-calciner height from 5.15 meters to 6.17 meters.,

modification in R.S.P. fan impeller diameter

The production was enhanced from 2850M.T.s per day.

UPGRADATIONS:
I)

various modifications taken place during the period 1990 to 1993 to enhance

the production capacity of the plant with accost of Rs. 101.56 lakhs and as a result the
production was increased from 2400 M.T.s per day to 2600 M.T.s per day

Retrofitting of cooler ID fan impeller diameter

Reduction of cooler ID fan impeller diameter

Installation of desecration system for kiln feed V.P pump

Reduction of cooler I.D. fan impeller

II)

In order to meet the power requirements and avoid power restrictions from

A.P.S.E.B., two numbers of Wartsilla power generators sets of 4MW capacity have been
installed at a cost of Rs. 1331.00 lakh during 1996-97.
III)

The production capacity of the plants was further upgraded during 1997-1998

with and 2,000,000 cumulative convertible preference shares of Rs.100/- each.

The issued, subscribed and called up capital of the company investamentary to 3400
M.T.s per day due to 48

Installation of low pressure twin cyclones

Installation of high efficiency R.S.P fan

Retrofitting of cooler and kiln E.S.P

CAPITAL STRUCTURE:
The Authorized capital of the company is Rs. 2800.00 lakh in the form of 2,6,00,000
equity shares of Rs.10/- each any is Rs.2485.49 lakh . the paid up capital of the company is
Rs.2485.42 lakhs.
The company is having the reserves & Surplus in the capital structure by Rs.1573.22
lakhs. Besides the share holding and reserves & Surplus, the company is having the loans
as.
Secured Loans:
1)

Cash credit including demand loans from banks by Rs.1392.67 lakhs

2)

Term loans from banks by Rs.3150.00 lakhs.

Unsecured Loans:
1)

Trade deposits from dealers/ stockiest by Rs.503.01 lakhs.

OPERATIONS OF THE COMPANY:

The company operations viz., production, sales and profit are tabulated below:

Cement Production

Cement Sales

Profit/Loss

(in M.T.S.)

(in M.T.S.)

(Rs.in lakhs)

2000-2001

7,74,822

7,56,681

-723.01

2001-2002

6,23,198

6,30,549

719.36

2002-2003

5,95,535

6,03,198

34.65

2003-2004

6,84,408

6,87,015

-1,292.15

2004-2005

7,16,556

7,04,291

-795.69

2005-2006

8,31,200

8,42,149

-449.93

2006-2007

10,68,212

10,66,747

Year

AWARDS:
In recognition to the high standards of quality maintained for the cement
manufactured by the company, if won the Arch of Europe 1987 Gpd; ward, awarded by
M/s. J ban, Madrid, Spain and also it won the award industrial promotion selection
Award, 1988 from the council for industrial & trade Development, [resented by her
excellence Smt. Kumudhen Joshi, then the Governor of Andhra Pradesh on 9 th February,
1989.

QUALITY POLICY

we are committed to supply of cement of consistent quality for

enhancement of customers satisfaction and for continual improvement of the quality

management system
CHANGE IN THE MANAGEMENT:

The India cement limited and its subsidiary namely ICL Securities Limited have
acquired over 94% of the share capital of the company from the old management and also
by way of open offers made to the share holders of the company, it acquires a the share
holding control with effect from 27.12.1999.
Zuari Cement Limited entered into a share Purchase Agreement on 10 th January,
2002 with The India Cements Limited and ICL securities Limited to acquire approximately
94.70% of the paid up equity share capital and also made on open offer to acquire
remaining approximately 5.30% of the paid share capital. As a result, the new management
has taken over the share holding control with from 18th, may 2002.
THE MANAGAMENT OF THE ORGANIZATION:
The board of directors under the leadership of the chairman is managing the
company. The directors and seniors executives are highly experienced and selected from
various fields of specialization and are highly experienced.
The board enjoys a maximum possible operational autonomy consistent with
the overall corporate objectives, polices, goals and strategies. The executives of the
company discharge their duties with a team spirit on delegation of authority and individual
accountability basis to achieve and targets as specified. As such, it is obvious that the
responsibility and authority to take decisions on the organization structure of the company
below:

70
Management staff
167
Staff & workmen
Casual labor

460

The company maintains almost industrial peace and gives duties importance to the
employees emoluments. To keep the same to continue, the company had entered into wage
revision agreement with the Union of staff & workers during January 2004 for a period of
three and half years and registered the same with the labor commissioner.
In order to make the management staff to be more competitive and to update their
skills, the company had introduced a self-appraisal form. This form is become a powerful
tool and being used in decision making of giving promotions and increments.
SUGGESTIONS SCHEME:

In order to bring out the skill of the individual employees, the company had
introduced a suggestion scheme and implementing continuously. The salient features of
this scheme are furnished below.

Any employee can give a suggestion, in writing and should drop it

in the

suggestion box meant for this purpose.

A team of professionals examinees the feasibility for implementing the suggestion

gives fed back to the employees concerned.

The selected suggestion will be implemented.

The selected suggestions will be award.

The employee, who suggested selected the suggestion will made the coordinator to

implement the same.

The photograph of the employee of the selected suggestion will be exhibited at the

public place within the plant premises.

SAFETY:
.

The company is dedicated for the safety of the employees. As apart of this, the

company provides safety tools viz., Helmets, Shoes, Nose filters, Safety belts to the
employees. It made all the employees to observe safety pledge, every day, before
commencement of the working hours. It takes utmost care for the safety day on 4 th march
and mines safety meek every year. It also observes World environmental day on 5th juke
and productivity day on 12th February, every year.
THE GROUPS SAFETY POLICY

Constant attention to the idea of safety, both of the environment and of health in
the work place has always characterized out group. This has become even more strategic in
the current phase of international development.
In the unmediated future particularly, the efforts of all those who work within the
group must be aimed at creating around themselves and others the appropriate conditions
of operative security.
To support this common aim, I consider it important to formalize the safety policy
guidelines that must direct our work.

This can be summarized as follows:

1)

Italcement group undertakes to make the Safety Policy an integral part of our

general company policy.

2)

The safety policy will be considered on an equal basis with productivity, efficiency,

quality improvement, environment issues and other policies developed the Group.

3)

The safety policy will be put into operation at each of the groups workplace, and

will accompanied by the appropriate auditing, in order to eliminate dangerous behavior

thats the cause of most industrial accidents.

4)

Italcementi group firmly believes that all accidents can be prevented. And

undertakes to apply the best safety standards in each workplace, and above all, to train
people at every level and to ensure that they are competent to assume the responsibility
given, and that their training is suitable.
5)

All italcementi Group employees are responsible for applying the safety policy and

must work in a safe manner, so as not to have or cause accident.

6)

The final goal of the safety policy is to arrive at ZERO ACCIDENT in the

workplace. with the conviction that people are the key element regarding individual safety,
all employees, at whatever hierarchical, are requested to conduct themselves in such a way
to avoid causing any accidents whatsoever both of themselves and to their colleagues.
7)

Italcementi Group undertakes to provide its employees and the appropriate public

bodies with the information regarding the results obtain from applying this policy.
8)

The Italcementi Groups policy shall be continually updated.

In order to implement these guidelines in a practical, concrete and fast way, the
project Zero Accident has launched. Expect a lively participation and collaboration from
everyone, in order to re-affirm the values of industrial ethics we must all constantly keep in
mind.

Is a key element of the Italcementi Group corporate policy

Is an important as productivity, efficiency, quality & environment

must be applied everywhere and constantly monitored

Is training an informing personnel at every level prevent accidents.

Is the responsibility of every one for themselves and for others.

Is an mission and need possible through every bodies contribution to the Zero
Accidents project. Is a policy that will continuously evolve.
TAKE CARE THINK SAFE
EVERY DAY CLEAN
PLEDGE
QUALITY POLICY

TRAINING TO THE EMPLOYEES:

The company is providing the training to employees in different areas of
operations on continuous basis both by in house and by external sources. Some examples
of the training are mentioned below.

Utilization of alternate fuels including pet coke in cement industry.

Labor laws and recent changes in the application of the contract labor.

Awareness on VAT

Effective utilization of petroleum conservation.

ECO Fighting

First Aid

Effective Communication

Cost Control measures

Enquiring multi-skills

Initive attitude

EMPLOYEE WELFARE:

The company is striving to employee welfare and it provides the following to its

employees.

Two pairs of uniform, one pair of safety shoes and PPE are provoding to all the

employees.

Dinner for the employees with their facilites and a cultural programme on every

31st December.

Dinner for the employees with their families and a cultural programme on every 1 st

January.

Celebrates independence day and republic day.

Provides family planning camp within the plant premises, every year.

Provided AIDS awareness classes to the employees by the District Medical &

Health Department.

Provided the Art of Living classes to the employees within the plant premises.

Provided the SSY classes to the employees within the plant premises

. All the statutory obligations of the employees like P.F., L.I.C.etc. within the

work schedule.

Provides different loans to the employees to meet their financial requirments.

The company maintained temples of Sri Venkateswara Swami, Anjaneya Swami

and Vinayak Temples located at Towmship.

Chapter IV
Theoretical frame work

THESE LAWS ARE:

The factories Act 1948: the mines Act 1952: the plantation employee Act 1951: the
central employees (regulation & abolition) Act 1970: these Act provides for facilities such
as canteen crches shelters rest rooms , lunch rooms , washing facilities etc.
They also regulate the age of employment, hours of work and more provisions for the
appointment of employees welfare officers sickness, Maternity and medical benefits are
provided under the employee state Insurance Act 1948 and also the government has
chalked out comprehensive Programmers for housing facilities, social security schemes
provident funds and such other facilities & seize able has been allotted in each five years
for employee welfare activities.
ACCORDING TO THE FACTORIES ACT 1948:
The welfare facilities provided under this act are as follows:
1.

Adequately suitable and clean washing facilities separately for male and

female workers.
2.

Facilities for storing and drying clothes.

3.

Setting facilities for occasional rest for workers who are obliged to work in

a standing position.
4.

First aid boxes one for every 150 workers and ambulance facilities if there

are more than 500 workers.

5.

Canteens if more than 250 workers are employees.

6.

Shelters rest rooms and lunch rooms if there are more than 150 workers.

7.

Creche if more than 30 women are employees.

8.

Welfare officer wherever more than 500 workers are employees.

The oxford dictionary refers employee welfare as efforts to man life worth
living for women. The committee on employee welfare (1969) has defined employee
welfare as such services facilities and amenities as adequate canteen rest recreation
facilities and sanitary and medical facilities arrangements for travel to and from work for
the accommodation of workers employed at a distance from there homes and such other
services amenities

and facilities including social security measures

as contribute to

improve the conditions under which workers are employee.

According to the employee investigation committee (1946) employee welfare
means anything done for intellectual, physical more and economic betterment of the
workers, whether by employee by government or by otheragencies over and above what is
laid down by low or normally expected on the part of its contracted benefit for which
workers may have bargaining

MERTIS AND DEMERITS OF WELFARE MEASURES:

Employee welfare is justified for several reasons. It is desirable to recollect the
services of a typical worker in this context. His/Her employee helps dig and haul coal from
the depths of the earth to fetch and refine oil , to build dams and reservoirs, to lay pipes,
canals, railway lines

and roads. His/Her employee creates and transmits power, and

through various phases of manufacturing, patterns raw material into finished products of
necessity as well as luxury.
Welfare may help minimize social evils, such as alcoholism, gambling,
prostitution, drug addiction and the like. A worker is likely to fall a victim to any of these
if he /she is dissatisfied or frustrated. Welfare facilities tend to make the worker happy,
cheerful and confident looking.

WELFARE FACILITIES CAN BE CLASSIFIED AS:

(1) Intra Mural Activities

(2)

Extra Mural Activities

1. INTRA MURAL ACTIVITIES :

Intra Mural Activities consists of facilities provided within the factory or
establishment they include medical facilities, compensation for accidents
provision for creches & canteens, supply of drinking water, washing and bathing facilities
provision of safety measures, activities relating to improvement conditions of employment,
free or subsidies food and their interest.

2.

EXTRA MURAL ACTIVITIES:

Extra Mural activities covers the services and facilities provided outside the factory

or establishment these consists of housing accommodations , indoor and outdoor ,

recreation of facilities amusement

and sports, educational facilities for actual and

childrens Thus employee welfare is a comprehensive terms including various services,

facilities and amenities providing to employees for the betterment. Various benefits
provided by an organization may be classified under two groups, employee welfare and
social security
EMPLOYEE WELFARE:
Committee on employee welfare (1969) has defined employees welfare as such
facilities as adequate canteen, rest and recreational facilities, sanitary and medical facilities
arrangement for travel to and from work and for the accommodation of workers employed
at a distance from their homes and such other services amenities and facilities including

social security measures as contribute to improve the conditions which workers are
employed.

SOCIAL SERCUITY:
Social security is essential related to the high ideals of human dignity and social
justice. According to ILO social security is the protection which society for its members
through a series of public measures against the economic and distress otherwise would be
caused by the stoppage or substantial reduction of earnings resulting from , sickness
maternity , employment injury, unemployment, invalidity , old age and health.

IN INDIA MAJOR BENEFITS ARE AS FOLLOWS:

PAYMENT FOR TIME NOT WORKED:
There are provisions for payments to employee not worked these include the
payments for the days:
1. Weekly off-day
2. Gazette holiday: 14 days at present which include Independence day, Republic Day,
and various festivals like Diwali, Dassara, Christmas day, etc.
3. Personnel leave, casual leave, sick leave, privilege leave and maternity leave personnel
leave may vary from organazatio9n to organization.

WELFARE AND RECREATION FACILITIES:

Welfare and recreation benefits include : Canteen, consumer Societies, Credit
societies, housing, legal aid ,employee counseling, welfare organization, holiday homes,
educational facilities, transport, parties and picnics and miscellaneous.
CANTEENS :
Perhaps no employee benefits have received as much attention in recent years as
that of canteens. Some organization have statutory obligation to provide such facilities as
section 46 of the factories act, 1948 imposes statutory obligation to employees to provide
canteens in factories employing more than 250 workers other have provided such facilities
voluntarily food stuffs are supplied at

subsidized prices in these canteens. Some

companies provides lunchrooms, when canteen facilities are not available.

CONSUMER SOCIETIES :
Most of the large organizations located far from towns and which provide housing
facilities near the organization set-up the consumers stores in the employees colonies and
supply all the necessary goods at far priceless.

CREDIT SOCIETIES :
The objective of setting of these societies is to encourage thrift and provide loan
facilities at reasonable terms and conditions, primarily to employees, some organization
encourage employee to form cooperative credit societies with a view of fostering self help
rather than depending upon money lenders, whereas someorganizations provide loans to
employees directly.

HOUSING :
Of all the requirements of the workers decent and cheap housing accommodation is
of great significance. The problem of housing is one of the
main causes for fatigue and worry among employees and this comes in the way of
discharging their duties effectively, most of the organizations are located very far from
towns where housing facilities are not available. Hence most of the organizations built
quarters nearer to factory and provided cheap and decent housing facilities to their
employees, while a few organization provide or arrange for housing loans to employees
and encourage them to construct houses.

LEGAL AID ;
Organization also provide assistance or aid regarding legal matters to
employees as and when necessary through company lawyers or other lawyers.

EMPLOYEE COUNSELING :
Organization also provide counseling services to the employee regarding their
personal problems through professional counselors. Employee counseling reduces
absenteeism, turnover, tardiness, etc

WELFARE ORGANIZATIONS AND WELFARE OFFICERS :

Some large organization set up welfare organization with a view to provide all types
of welfare facilities at one centre and appointed welfare officer to provide welfare benefits
continuously and effectively to all employee fairly.

HOLIDAY HOMES :
As measures of staff welfare and in pursuance of governments policy, a few large
organizations established holiday homes at a number of hill stations, health resorts and
other centre with a low charge of accommodation , so as to encourage employees use this
facility for rest and recuperation in pleasant environment

EDUCATIONAL FACILIOTIES :
Organization provide educational facilities include reimbursement of fees, setting up
of colleges, hostels, providing-in-aid to the other schools where a considerable number of
students are from the children of employees. Further the organization provides reading
rooms and libraries for the benefit of employees.

TRANSPORTATION :
Companies provide conveyance facilities to their employees from the place of their
residence to the place of work as most of the industries are located outside town and all
employees may not get quarter facility.

PARTIES AND PICNICS :

Companies provide these facilities with a view to including a sense of association,
belongingness, openness, and freedom among employee. These activities help employees
to understand other better.

MISCELLANEOUS :
Organization provide other benefits like organizing games, sports with awards,
setting up of clubs, community service activities, Christmas gifts, Deewali and Pongal
gifts, LTC and awards, Productivity award etc.

FRINGE BENEFITS :
Beside base compensation and incentives employees are provided various types of
benefits and services by the organization, these benefits and services are not linked to
employee productivity buy are provided to different classes of employees either as a matter
of statutory requirement or on voluntary basis or a combination of both such benefits are
called by various names such as fringe benefits, employee welfare, sub wages, social
security, etc. International employee organization has defined fringe benefits as follows,
Wages are often supplemented by special cash benefits, by the provision of medical and
other services or expenditure on the goods services, in addition workers commonly receive
such benefits as holiday with of low cost meals, low rent housing, etc. such addition to the
wages proper are referred to as fringe benefits.

Fringe benefits include payment for non working times, profit and bonus, legally
sanctioned payments on social security schemes workmens compensation welfare and
contribution made by the employee under such voluntary schemes as care for the post
retirement, medical, educational, cultural, and recreational needs workmen the tern also
includes the monetary equivalent of free lighting, water, fuel etc, which are provided for
workers and subsidized housing and related services.

THE FEATURES OF FRINGE BENEFITS ARE :

1)

Fringe benefits are provided to the employees in addition to their wages

/salary and other performance related incentives. These may be provided either required
statutory or on voluntary basis.
2)

These benefits are given to the employees irrespective of the ir work

efficiency however, differences in benefits may exist on the basis of

classes of

employees.

3)

Fringe benefits are provided to all the employees irrespective of the work

efficiency however; differences in benefit s may exist on the basis of classes of employees.

4)

Benefits that have relation to employment or wages are not regarded as

fringe benefits even though they may constitute a significant part of the workers, total
income. This is fairly obvious in the case of public parks, sanitation services and fire
protection.
5) The expenses of benefits incurred on fringe benefits and other services
are charged as workmen and staff welfare expenses or employees
benefits expenses on incentives are charges under wages and salaries

TYPES OF BENEFITS:
There may be numerous types of benefits which may be provided to employees, and
there may be different ways in which theses can be classified, one may in terms of
statutory and voluntary benefits. Statutory benefits are mandatory and are provided under
various acts such as paid holiday and leave insurance, pension, gratuity, retrenchment
Compensation etc. All the organization covered by different act has to make the provision
for these. Voluntary benefits are determined by7 he individual organization on their own.
Such benefits may include transportation facilities, educational facilities, subsidized, etc.
U.S chamber of commerce has categorized various benefits into five groups.

1)

Legally required payments, old age pension, survivor benefits, disability,

pension, health insurance, and unemployment insurance.

Separation pay and the

payments made under the workmans compensation.

2)

Pension, group insurance and welfare payments.

3)

Paid rest periods, waste up time, lunch periods.

4)

Payments for time not worked, vacations and holidays.

5)

Christmas bonus.

RETIREMENT BENEFITS:

PROVIDED FUND SCHEME:

Under the provision of employees P.F. and miscellaneous provision
act 1952, the employer has to contribute 8.33 percent of wages/salaries of employees every
month the employees make equal contribution through they are permitted to contribute
more if they so desire . the basis Objectives of provident fund is schemes to make
payments of total accumulated amount standing in the account of an employee when he
retires though in certain circumstances, part of the money can be withdrawn earlier.

PENSION SCHEME:
A pension represents the payments of fixed amount to a retired employee or
surviving dependents every month provided the employee has fulfilled certain specific
conditions of employment. One of the conditions is the minimum number foyers of
services which an employee should put to become eligible for pension, sometimes pension
is provided in line of the employers contribution to provident fund.

GRATUITY:
The payment of gratuity is regulated by the payment of gratuity act 2972, under this
act is payable to all employees after the termination of their

services by way of their retirement or resignation provided they have completed five years
of continuous services, the gratuity is payable at the 15 days wages/salaries for each year
completed services subject to a maximum of Rs.3.5 lacs

COMPENSATION BENEFITS:
Compensation benefits are payable under two conditions, under compensation act
the compensation act 1923, and under contractual obligations, under the act the
compensation is payable in the case of injuries. Fatal or otherwise, to workers during
course of his job performance, the compensation is payable according to nature of the
injuries, under contractual obligation an employer i9s liable to pay equivalent to three
months wage/salaries or any other sum specified under the terms of employment.

INSURANCE BENEFITS:
Insurance benefits are payable to employee covered under, employees state
insurance Act 1948, the employee covered under this act have to continue to the scheme
and the employees have also to contribute, various types of benefits that are available in
this act are medical, sickness, maternity, disablement, dependents and funnel benefits,
besides many organization offer benefits for life insurance either on individual or group
basis.

In the past the industrialist and the manager believed that there only job towards
their employees was to pay them satisfactory wages. In course of time it has change s.
psychological researchers convinced them that the workers required security more
important, than wages i.e. human treatment which is very essential to seek the co-operation

between employees and employer. For this it is essential for the management to create an
atmosphere in which the employees work effectively and efficiently by creating better
condition of work place, suitable temperature , adequate lighting and pleasant atmosphere,
such welfare facilities benefits not only the workers but also the management in the form
of greater productivity efficiency Management should realize that these welfare facilities
pay a good dividend in the long run for this they have to contribute in a large degree
towards the health and efficiency of the workers and towards a high morale.
The present study is a carried in ZAURI CEMNTS LTD., DONDAPADU a profit
making is known for a sensation atmosphere among the employee forces in the study effort
have been to find out various statutory & welfare measures implemented in the ZAURI
CEMENTS LTD.,
Employee welfare is an important fact of industrial relations, the extra dimensions,
giving satisfaction to the worker in any way which even good wage cannot. With the
growth of industrialization and mechanization, it has acquired added important. The
worker, both in industries and agriculture, cannot cope with the pace of modern life with
minimum sustenance amenities. He needs an added stimulus to keep body and soul
together. Employees have also realized the importance of their role in providing these extra
amenities. And yet they are not always able to fulfill workers demand however reasonable
they might be. they are primarily concerned the availability of the enterprise.
Employee welfare thought it has been proved to contribute it efficiency production is
expensive. Each employer depending on his priorities gives varying degrees of importance
to employee welfare. It is because the government is not sure that all employers are
progressive minded and will basic welfare measures that it introduces statutory legislation
from time to time to bring about some measures of uniformity in the basic amenities

available to industrial workers. Today, employers have generally accepted welfare. The
state only intervenes to widen the area of applicability. It is now accepted that it is a
social right. The Committee on Employee Welfare (CLW), formed in 1969 to review the
employee welfare scheme, described, I as social security that contribute to improve the
conditions under which workers are employed in India. Valid considers it as an
expression of the assumption by industry of its responsibility for its employees.

Though industrial workers are generally better paid, their conditions of

work and work often poorer living conditions necessity more than minimum amenities,
and hence most statutory legislation applies to them. In a resolution in 1947, the ILO
defined employee welfares as such services, facilities, arrangements, at a distance from
their houses, and such other services, amenities and facilities as to contribute to improve
the conditions under which workers are employed, Employee welfare and social security
will be dealt with separately. We shall first take up employee welfare.

OBJECTIVES:
1.

Partly humanization to enable the employee to enjoy a good quality

of work life.
2.
liven increase the
3.

Partly economic to improve the efficiency of the work which in

production.
Partly civic to develop among them a sense of responsibility and

dignity make them working citizens of the nations.

4.

TO fulfill future needs and aspirations of employee.

5.

To increase productivity and efficiency of the employee.

SCOPE:
Employee welfare by its very nature must necessarily be elastic and differs from
time to region, industry to industry, country to country depending upon the value, system
level to education, social customs degree of industrialization and the general standards of
the social economic development of the people.
The International Labor Organization (ILO) observes the term is one which tends
itself to various interpretations and it has not always the same significance in different
countries. Sometimes the concept is very wide one is more or less, synonymous with
conditions of work as a whole. It may include not only the minimum standards of hygienic
and safety yards chosen general employee legislation but also such aspects of working life
as social insurance schemes, measures for the protection of worker and young work as a
limitation of hours of work, paid vacations etc.

The scope of employee welfare is their family wide and is not limited to any one
country, one region, one industry as occupation. The scope of employee welfare has been
described by writers and institutions of different shades in different ways and from
different angles. The time of demarcation cannot be very precise, but what should be the
common characteristic in that welfare measures should ameliorate the workers and living

conditions of the workers and their families and make their lives meaningful. In the final
analysis, labor services should enable workers to live a richer and move satisfactory life.

Contribute to the productivity of employee and efficiency.

Retire the standard of living of workers by indirectly reducing the burden on

the

purse.

Be in time and harmony with similar services obtaining as a neighboring

community where as enterprise is situated.

Be administratively viable and essentially development outlook

The scope of employee welfare however cannot be limited to facilities within or near

the undertaking. Nor can it be so comprehensive as to Embrace the whole range of social
welfare as social services.

Chief Characteristic Of Employee Work:

(i)

It is the work which is usually undertaken within the premises or in the

vicinity of the undertaking for the benefit of the employee and the members of his amily.

(ii)

The work generally includes those items of welfare which are over and

above what is provided by statutory provisions or required by the custom

industry or what the employee expect as a result of a contract or

of the
service from the

employers.

(iii)

The purpose of providing welfare amenities is to bring about the

development of the whole personality of the workers of his Social,

Psychological,

Economic, Moral, Cultural and intellectual development to

make him good worker

citizen and a good number to a family.

(iv)

These facilities may be provided voluntarily by the progressive and

enlightened

entrepreneur

of

their

own

accord

out

of

their

realization

responsibility towards employee or the statutory laws may compute them

provision for these facilities or these may be taken up by the

of

to make

government or the trade

unions if they have the necessary funds with them.

(v)
such

Employee welfare is a very broad term, covering from social security to

activities

as

medical

aid,

crches,

canteen,

recreation,

housing,

adult,

education arrangement for transport of employee to and from workplace to residence.

(vi)

It may be noted that not only the intramurals but also extramural, statutory

as well as non statutory activities

under by any of the three agencies the

employers, trade union or the government for the physical and mental
of a worker, both as compensation for wear and tear that the
production process and also to enable him to sustain
capacity for contribution to the process of

development

under goes as a part of

and improve upon the basis

production which are all the species of

the longer family encompassed by the term Employee welfare.

Employee Welfare:
It is useful to consider welfare benefits under two basic categories, via intramural and extra-mural. The following categorization is used by.

INDAIN EMPLOYEE ORGANIZATION

Intra-mural
Drinking Water

Extra-mural
Social insurance (gratuity, pension, PF etc.)

Toilets

Benevolent Fund

Crche

Maternity Benefits

Washing Facilities

Occupation Safety

Uniforms and protective

Health and Medical Facilities

Education facilities

Housing Facilities

Clothing

Shift Allowance

Recreation facilities

Canteen

Leave travel Facilities

Workers Co-operative

Vocational Training

These facilities and benefits can be further classified into those provided by
legislation and those provided voluntarily by management or as a result of bipartite
settlements between management and the trade unions.

Classification of Employee Welfare:

Statutory

Voluntary

Mutual

Statutory Welfare amenities:

Those which have to be provided irrespective of size of establishment, e.g. drinking

water
Those to be provided subject to employment of a specified number of

persons, e.g. crche. Again, in the case of certain amenities, there are no minimum
standards laid down in the sphere of housing, medical treatment, recreation transport and
educational facilities. This left to the discretion of the employer.

Employee Welfare: Intra-Mural:

Health and Medical Facilities: Through E.S .I A health workforce is
of utmost importance to industry. the ILO in its conventions and recommendations has laid
down standards, which have as laid a contributory effect on legislation in India. The ILO
convention 25 concernssickness insurance and medical facilities to be provided to an
insurance person while convention 103 deals with maternity protection. In its
recommendation No.69 it set certain norms for medical care. It also emphasized the need
for preventive care. It made recommendations in respect of workers involved in jobs with
special risks No.97 and for occupational healthy services No.112. The royal commission in
the pre-independence period stressed the importance of health facilities and a unified
scheme of social insurance. We not consider the several employee welfare benefits both
intra-mural and extra-mural, voluntary and statutory. The statutory is provided by the
Factories Act.

The factories Act 1948:

The broad areas of coverage under, the Act are health, welfare, safety, working
hours, annual leave, Bonus 8.33% with wages and employment. The Act applies to

premises including the predicts there of where ten or more workers are employed, with the
aid of power or where 20 or more workers are employed without power.
Before starting a factory and periodically thereafter, the chief inspector of factories
and his staff measure in the plant, including proper ventilation of noxious fumes and
protective equipment for eyes where necessary. A maximum work day of 8 hours is
prescribed for adults. A work week of 48 hours is also prescribed. A weekly holiday is also
specified as also eligibility of annual leave with pay after 240 days of employment.
Canteen if there are 250 or more workers, crches if 50 or more women workers are
employed, rest rooms and lunch rooms, shelters in case of 150 or more workers, and
ambulance rooms with a qualified doctors and staff if there are 500 or more workers.
Basic amenities like lighting and ventilation are to be provided whatever the size of the
establishment.
Family Planning:
The-five year plans have laid great emphasis on this programme which has acquired
a sense of urgency, specially in the Fourth Year Plan. The CLW recommended that it
should be made part and parcel of employee welfare activities.

The CLW has suggested that in view of the enormity of the population problem,
central and state Government schemes should given recognition to fully equipped and
properly staffed hospitals run by employers. Many employers have already taken the
initiative, especially in plantations and provide incentive such as priority for housing etc.
for participation in family planning schemes.

Canteens:

The ILO, in its Recommendations 102, mentioned this facility and felt that a
competent authority in each country should guide establishments, with regard to nutrition,
hygiene, finance etc. in India the Factories Act places the responsibility on State
Government to make rules that in any specified factory with more than 250 workers, a
canteens should provided and certain standards should have representation in the
management of the canteens. Each state Government has framed its own rules.

The NCL does not think there is need for the statutory limit in respect of canteens to
be raised, unless there is an establishment demand. Also, canteens should be run on a
contracting help with subsidies. Canteen, if feels should cry provide at least one balanced
meal ti worker and allow them credit purchases so that they make good use of the facility.

Rest Facilities:
This amenity provides & prescribed number of seats on the shop floor and in rest
rooms or shelter. This facility helps to reduce fatigue, it enable a worker to sit down
occasionally without only break in his work, and contributes to his comfort and Efficiency
Rest rooms are provided so that works may relax during their breaks for rest or meal. The
can also wait in comfort till time they start work particularly before or after like shifter.

Housing :
Recommendation 115 of the ILO states that housing be a matter of national policy.
Both the Indian Industrial Commission (1918) and the Royal Commission realized the
importance and necessity of improving housing conditions of industrial workers and
suggested various measures. In 1944 the employee Investigation Committee reviewed

housing conditions in principal urban areas and found industrial housing far from
satisfactory. They felt a clear long-term housing policy was essential. In 1948, the
government of India put forth the industrial housing Scheme. The Central Government
subsidized the state Government to the extent of 12 122% on a maximum of Rs. 200 per
house, provided the state Government contributed an equal amount.

The response to the scheme was poor. The first Five Year Plan (1951) suggested it
the Central Government should take major responsibility for financing housing schemes.
The sub seized housing scheme for industrial workers was extended to weaker sections of
the community also. It applied to workers under section 2(1) of the Factories Act, whose
wages did not exceed Rs.300 per month and still they reached a maximum of RS 500 per
month. The scheme provided that in addition to puce houses, -e state could also provide
developments plots, skeleton houses, hostels, dormitories, - building at subsidized rates to
eligible industrial workers.

Transport Facilities:
The growth of industrial states and workshops outside the city has made commuting
a problem for workers. In India, since the public transport system is not only fully eloped
and hardly efficient, fatigue of travel to and from work has a detrimental tect on the
attendance pattern of workers. The CLW after studying the situation:- commended that
transport on a large scale is best provided by the state; that the local dies should
streamline their operations, increase their fleet and the frequency of buses especially to
employee colonies, industrial estates and townships, and for carrying to and night shifts.
They feel that employers could help by giving conveyance allowance, loans to purchase

bicycles, provide parking facilities, etc. in metropolitan cities, NCL and CLW have
suggested that work hours be staggered, so as not burden the transport system. In the case
of smaller units they suggested that transported be provided on a joint basis.

Educational Facilities:
The literate worker is naturally more receptive. Educating the workers family, his
children, is essential, since in a sense, it is an investment in training the workforce of the
future. Surveys on employee conditions indicate that no tangible efforts have been made to
eradicate illiteracy among workers. Though the government employers and workers are
aware of the importance of developing adult education among workers, there has been to
sustained effort. There have been various suggestions on how to educate workers-one is
the provision of night schools, for those who are inclined. Workers in reply to the CLW
questionnaire felt that if sufficient incentives are provided, like promotions, they would be
motivated.social welfare bodies can also help to educate workers families.

The Central Workers Education Board conducts classes for industrial workers,
employers and workers organization have suggested that personnel trained by the Board
should subsequently

take up the work of educating industrial workers with the

governments are of the opinion that the Central Board is already overburdened and not
capable of taking on an added burden. A panel of experts on literacy set up by the planning
commission expressed the need for a autonomous Central Board to promote literacy
among industrial workers.

Evolution of social security measures :

Social security forms an important part of employee welfare providing the security is
of great importance to the workers and his familys wellbeing.

The ILO definition is basically that it can be taken to mean the protection which
society provides for its members, through a series of public measures, against the
economic and social distress that otherwise would be caused by the stoppage or substantial
reduction of earnings resulting from sickness, maternity, employment injury,
unemployment, invalidity, old:- e and death; the provision of medical care; and the
provision of subsidies for families with children.

Extent of injury or death, but the employer is nit responsible if a workman sustains
his injuries under the influence of drugs, drinks etc. length of the service is not
consideration for equality of compensation or eligibility except for >::- national diseases,
where it is six month, and within two years of termination in the case of an employee
whose services had been terminated . the act also provides for half-monthly payment for
temporary disablement, but the compensation cannot exceed half the monthly wages. A

workman cannot claim damages in a civil court and still expect to benefit from the Act. It
is admistered by a commissioner, appointed by the Government.

Chapter IV
DATA ANALYSIS
&
INTER PRETATION

1.RECREATIONAL FACILITIES
Table: 1
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total

No. of respondents

Percentage

44

59%

16

21%

10

13%

7%

75

100%

Graph: 1

INTERPRETATION:
From the above figure it shows that most of the employees agree that all necessary
safety equipments are provided to the employees while some of the employees commented
that the safety equipments provided by the company are not provided in time.

2.TRANSPORTATION
Table: 2

Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total

No. of respondents

Percentage

11

15%

37

49%

23

31%

5%

75

100%

Graph: 2

INTERPRETATION:
From the above figure it shows that most of the employees agree that all necessary safety
equipments are provided to the employees while some of the employees commented that
the safety equipments provided by the company are not provided in time

3.INFRASTRUCTURE
Table: 3
Opinion
Strongly Agreed

No. of respondents
10

Percentage
13%

Agreed
Neutral
Disagreed
Total

37
26
2

49%
35%
3%

75

100%

Graph: 3

INTERPRETATION:
From the above figure it shows that most of the employees agree that all necessary safety
equipments are provided to the employees while some of the employees commented that
the safety equipments provided by the company are not provided in time.

4.PROVISIONS FOR FIRST-AID BOXES WHERE EVER THEY ARE

NECESSARY
Table: 4
Opinion
Strongly Agreed
Agreed
Neutral

No. Of respondents

Percentage

49

65%

14

19%

9%

Disagreed
Total

7%

75

100%

Graph: 4

INTERPRETATION:
From the above figure it shows that most of the employees strongly agreed that the
company is providing provisions for first aid boxes however some are not in a position to
comment about this as a first aid facility are provided to the workers, and moreover first
aid equipment are not provided in time.
5.MANAGEMENT TAKES GOOD CARE ABOUT THE SAFETYMEASURES OF THE
EMPLOYEES

Table: 5
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
total

No. Of respondents

Percentage

12%

43

57%

21

28%

3%

75

100%

Graph: 5

INTERPRETATION:
From the above graph it shows that most of the employees agreed that the
management is taking care about the safety measures of the employees. While some have
natural opinion as safety measures taken by the company are not up to satisfaction of the
employees.
6. NECESSARY MEASURES ARE TAKEN TO PREVENT THE ACCIDENTS

Table: 6
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 6

No. Of respondents

Percentage

13

17%

52

69%

11%

3%

75

100%

INTERPRETATION:
From the above figure it shows that most of the employees agree that all necessary safety
equipments are provided to the employees while some of the employees commented that
the safety equipments provided by the company are not provided in time.
7. ALL NECESSARY SAFETY EQUIPMENTS ARE PROVIDED BY COMPANY
(BELTS, SHOES, UNIFORMS, AND HELMETS)

Table: 7
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 7

No. Of respondents

Percentage

14

19%

56

75%

7%

0%

75

100%

INTERPRETATION:
From the above figure it shows that most of the employees agree that all necessary safety
equipments are provided to the employees while some of the employees commented that
the safety equipments provided by the company are not provided in time.

9.

PAYMENT

OF

COMPENSATION

TO

ALL

EMPLOYEES IN CASE OF ACCIDENTS

Table: 8
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 8

No. Of respondents

Percentage

10

13%

32

43%

25

33%

11%

75

100%

THE

INTERPRETATION:
From the above figure it shows that most of the employees agree with the compensation
facilities and some disagree with these facilities and also commented that the
compensation paid is not sufficient for the employees and are very low when compared
with other companies.
9. STATUTORY BENEFITS PROVIDED BY THE MANAGEMENT

Table: 9
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
total
Graph: 9

No. Of respondents

Percentage

5%

19

25%

36

48%

16

22%

75

100%

INTERPRETATION:
From the above figure that most of the employees are not in a position to
comment about the statutory benefits provided by the company and only some agree that
the all statutory benefits are provided by the company and some commented that there is
no wage revision.

10.

INTEREST OF ORGANISATION REGARDING THE WELFARE OF THE

EMPLOYEES

Table: 10
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 10

No. Of respondents

Percentage

5%

34

46%

31

41%

8%

75

100%

INTERPRETATION:
From the graph it shows that the organization is very much interested in welfare of
the employees. However some are not in apposition to comment, as the welfare facilities
provided by the company are not up their satisfaction..

11. MANAGEMENT WELCOMES SUGGESTIONS ON THE WELFARE ACTVITIES

Table: 11
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 11

No. Of respondents

Percentage

70

93%

7%

0%

0%

75

100%

INTERPRETATION:
From the above graph most of the employees strongly agreed with the suggestions on the
welfare activities. There were no comments on the neutral and disagreed options
12 DETERMINATION OF EMPLOYEES REGARDING THE MANAGEMENT
CONSUITANCIES

Table: 12
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 12

No. Of respondents
5
38
25
7
75

Percentage
7%
51%
33%
9%
100%

INTERPRETATION:
From the above figures it shows that most of the employees agree with the management
consults the employees to determine the welfare needs and very low are disagree with their
options , many of the employees were not ready to comment on the issue

13. VOLUNTARY BENEFITS ARE PROVIDED BY THE COMPANY (

LOANS,

HOUSING AND EDUCATION LOANS ETC)

Table: 13
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 13

No. Of respondents

Percentage

17%

59

69%

11%

3%
75

100%

INTERPRETATION:
From the above figure it shows that most of the employees agree that the voluntary
benefits are provided to the employees while some of the employees commented that the
voluntary benefits are not provided in time
14. WHETHER THE CANTEEN FOOD IS HYGENIC OR NOT

Table: 14
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 14

No. Of respondents

Percentage

0%

31

41%

15

20%

29

39%

75

100%

INTERPRETATION:
From the above figure it shows that most of the employees agree that the canteens food
is hygienic while some are not availing these canteen facilities as their house are nearer to
the company and some are disagreed with the canteens food is hygienic.

15. NUMBER OF SHELTERS AND REST ROOMS PROVIDED BY THE COMPANY

Table: 15
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
total
Graph: 15

No. Of respondents

Percentage

4%

55

73%

14

19%

4%

75

100%

INTERPRETATION:
From the above figure it shows that the most of the employees agreed while some are not
in a position comment about the company providing good number of shelters and rest
rooms of the employees and very few are disagreed &strongly agreed
16.AWARENESS OF MANAGEMNT REGARDING WORKING CONDITIONS OF
THE EMPLOYEES

Table: 16
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
Total
Graph: 16

No. Of respondents
8
51
12
4
75

Percentage
11%
68%
16%
5%
100%

INTERPRETATION:
From the above figure it shows that the most of the employees agreed while some are not
in a position comment about the aware working of conditions of the employees and very
few are disagreed &strongly agreed
17. PROVIDING PROPER VENTILATION AND LIGHTING

Table: 17
Opinion
Strongly Agreed
Agreed
Neutral
Disagreed
total
Graph: 17

No. of respondents

Percentage

67%

58

16%

13

17%

0%

75

100%

INTERPRETATION:
From the above the graph it shows that most of the employees agreed that the company is
providing proper ventilation and lighting in time, however some are not in a position to
comment about the facilities are provided to the workers

CHAPTER V
FINDINGS
&
SUGGESTIONS

FINDINGS:

While doing my project about the welfare facilities in ZUARI CEMENT LTD,.
Some of the employees have expressed many of their problems, in which some of the
welfare problems are:

1)

Employees are satisfied with canteen facilities provided in ZUARI CEMENTS

LTD,.
2)

The welfare facilities like transportation, housing and medical up to satisfaction of

the employees.
3)

Welfare committees are not formed as per employees choice.

4)

Welfare committees are not consulting the employees to take the suggestions.

5)

Many of the employees had expressed that medical facilities should be extended to

the retired employees and to their wives.

6)

Medicals bills, claims should be cleared immediately and the dues should be paid

immediately.
7)

Recreational facilities are not maintained properly.

8)

Loans for homes, children education and LIC are not provided to the employees.

10)

Safety houses, helmets, safety equipments, are not provided in time

SUGGESTIONS:

In the light of the above findings of the study of the following suggestions are given for
the welfare facility department in ZUARI CEMENT LTD.,
1)

Welfare committees should be reformed by consulting the employees at their

interest.
2)

Medical facilities should be extended to the retired employees and to their wives.

3)

Medicals claims should be cleared immediately.

4)

Loans, housing loans, education loans should be provided o the employees.

5)

Wages should be paid in time.

6)

Wage revision should be done.

7)

Safety equipment should be given to the employees in proper time.

8)

Offices and workshop maintenance should be improved.

9)

Wage division should be done immediately and wages should be paid on time.

Conclusion:
India is the world's second largest producer of cement after China, with cement
companies adding nearly eight million tons (MT) capacity in April 2009, taking the
total installed capacity to 219 MT.
According to Jyotiraditya Scandia, Minister of State, Ministry of Commerce and
Industry, cement production could rise to 236.16 MT in FY11 and touch 262.61
MT in FY12.
Profits are essential for the survival of any Organization. In the long
run

profits

reflects

the

performance

and

efficiency

of

the

management. An organization which is getting profits is regarded as

healthy and it alone can boost up the morale and commitment of the
employees.
As it is a joint venture the Government as a partner can't be blind to
the happenings in the organizations. Especially in this firm, the main
reason for the losses is accumulated debts and interest there on from
the very beginning. The Government has to give subsidy to waive
some of the debts and interest. It must also see that the organization
comes out of the loss zone and achieves the break-even point.
If the Government and the management executives work hand in
hand for the prosperity of the organization, no doubt Zuari Cement
Ltd occupies a prominent position in the cement industry in India.

APPENDIX

QUESTIONNAIRE

Name:
Age :
Gender:
Occupation:
Income:

Ph:

Tick from the following facilities, which are provided in the organization and your
satisfaction towards each facility.

1) Recreational Facility
Highly satisfied

Neutral

Satisfied

Dissatisfied

2) Transportation facility
Highly satisfied

Neutral

Satisfied

Dissatisfied

3) Infrastructure
Highly satisfied

Neutral

Satisfied

Dissatisfied

4) Are the provisions for the first aid boxes where ever they are necessary
Strongly Agreed [

Agreed

Neutral

Disagreed

5) Whether management takes good care about the safety of the employees

Strongly Agreed [

Agreed

Neutral

Disagreed

6) Are there necessary measure are taken to prevent the accidents

Strongly Agreed [

Agreed

Neutral

Disagreed

7) Whether all necessary safety equipment are provided (belt, shoes, uniforms)

Strongly Agreed [

Agreed

Neutral

Disagreed

8) Is compensation paid approximately to all the employees in case if accidents

Strongly Agreed [

Agreed

Neutral

Disagreed

9) Whether all statutory benefits are provided by the management

Strongly Agreed [

Agreed

Neutral

Disagreed

10) Is the organization interested for the welfare o f the employees

Strongly Agreed [

Agreed

Neutral

Disagreed

11) Whether the management welcomes suggestions on the welfare activities

Strongly agreed [

Agreed

Neutral

Disagreed

12) Is the management consults the employees to determine the welfare needs

Strongly agreed [

Agreed

Neutral

Disagreed

13) Whether the voluntary benefits are provided (loans, housing, and education & etc)

Strongly agreed [

Agreed

Neutral

Disagreed

14) Whether canteens food is hygienic

Strongly agreed [

Agreed

Neutral

Disagreed

15) Is the company providing good no. of shelters and rest rooms

Strongly agreed [

Agreed

Neutral

Disagreed

16) Is the management aware of working condition of the employees

Strongly agreed [

Agreed

Neutral

Disagreed

17) Whether proper ventilation and lighting is provided

Strongly agreed [

Agreed

Neutral

Disagreed

18) Any problems to welfare facilities

[ no

19) Any suggestion relating to welfare activities

no

BIBLIOGRAPHY

1)

PERSONNEL MANAGEMENT
---

2)

C.B. MEMORIA

HUMAN RESOURCES MANAGEMENT

& INDUSTRAIL RELATION

---

3)

4)

E.SUBBA RAO

HUMAN RESOURCE MANAGENT

---

WENDELL FRENCH

---

TATA Mc GRAW HILL,

PERSONNEL MANAGEMENT

DR.U.N.MONAPPA &
MIRZAS. SIYADDEN

5)

D.S.F.L. JOURNALS & RECORDS

Website
www.zuaricement.com
www.google.com