Project Report HR Policies

8/12/2019 Project Report HR Policies

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CHAPTERI

INTERDUCTION


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INTRODUCTION

SUGAR INDUSTRUY IN INDIA

India industry has been undergoing a metamorphosis in the last

one decade, thanks to liberalization, globalization and privatization. It

has been facing much lower regulatory interference and hurdles and

enjoying a far greater autonomy in areas such as capacity and business

about the location of their production units, pricing and product mix,

funding and so on. On the one hand, Indian industry has been blessed

with a host of new areas of business, internationalization, divestment,

consolidation, mergers and acquisitions, accessing funds, technology and

other resources, forming strategic alliance and joint ventures, etc; on the

other hand, it has been subjected to intense pressure of competition from

domestic and foreign competitors and demanding and sophisticated

customers. The juggernaut of economic reforms has brought about an

irreversible and qualitative change, not only in the business

environment, but also in the managerial mindset, frame of reference and

approaches in India. With the diminishing influence of regulatory.

Authorities, the responsibility now lies with strategic managers, to

scan the environment, identify the opportunities and resources, and

understand the demand of customers, are alert to potential threat of

competition, and formulate and implement the right mix of strategies

expeditiously. There are clear indications those proactive companies

duvh sd Reliance, Ranbazy, Dr.Reddys Laboratory, Bharti, Hero Honda

and BPCL, which moved swiftly and acted strategically, have made early

gains and are poised to reap huge benefits in the future. IncreasinglyIndian mangers are realizing the importance of world-renowned strategy

gurus such as Tom peter, C.K. Prahalad and Michel porter to address

Indian managers provided the ample testimony that strategy and

strategic management are going to occupy the center stage of corporate

mindset in the coming years.


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The mind-boggling array of strategy pronouncement by companies,

as reported in business press, also signify the growing importance of the

concept. However, we observe that a woeful lack of clarity prevails among

the executives and the commentators alike about the concept of strategy,

its domain and applicability.

The concept of strategy has emerged as one of the broadest and

most complex concepts in management. It is also perhaps the most used

and abused word in the business lexicon. It is now fashionable to use

any business term with a prefix of strategic and a suffix of strategy. To

understand strategy in need to be aware of the basic tenets of strategic

management, a relatively young field of management. Strategy is the core

concept of strategic management deals with the issues, concepts,theories, approach and action choices related to an organizations

interaction with the external environment through formulation of goals

and strategies, i.e., the means to achieve goals and implementation of the

same by acquiring, deploying, leveraging and stretching different

resources and capabilities.


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NEED FOR THE STUDY

Hr policies define an organizations social responsibility and

attitude towards its people. It also reveals the values about how the

people should be treated. These policies from the basis of principles

which managers use in handling hr issues. They also provide a reference

point for evolving hr practices and making people- related decisions in

consistent ways. This gives rise to equity in people management. Thus hr

policies relate to area like probation policy, data card policy, medical

expenses reimbursement, annual health checkup, family retention,

transfer and relocation, marriage gift, team picnic, child education

assistance, education reimbursement programme, festival bonus, car

lease, personal loan, leave policy, time and attendance management,

talent review, job rotation, learning and development, communicationand co-ordination, grievance management.


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OBJECTIVES OF THE STUDY

Objectives are predetermined goals to which individual or group

activity in an organization is directed. Objectives of personalmanagement are influenced by organizational objectives and individual

and social goals. Organizations are not just satisfied with this goal.

Further the goal of most of the organizations is growth and/or profits.

Institutions procure and manage various resources including

human to attain the specified objectives. Thus, human resources are

managed to divert and utilize their resources towards and for the

accomplishment of organizational objectives.


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METHODOLOGY

METHODS OF DATA COLLECTION:

PRIMARY DATA SECONDARY DATA

The report study is related to the all hr policies. The hr policies arenecessary to the secondary data has been the main base of the

report.

The secondary data consists of various forms regarding the policiesadopted in PARRYS INDUSTRIES, SANKILI.

After observing various policies that were adopted in the companythey were discussed with my company and faculty guides. The

discussion helped in interpreting and drawing the conclusions

exactly.


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LIMITATIONS OF THE STUDY

As human resource policy deals with overall development of

employee in certain conditions. The procedure as it was too long becauseof which employee gets frustrated and feels boredom. The findings of the

present project work cannot be generalized as they are based purely

limiting to one unit of this singular organization without giving any

comparisons to the practices in similar industry.

Being a company spread all over India, for all practical reasons and

limitations, we may not be able to travel to all sugar industries. Thus,

this project work limits to the parrys sugar industries limited only. This

project work is more of workmen oriented.

Hence, it cannot be constructed to denote and/or to standardize as

a model for this project work. The project work is confined to parrys

sugar industries limited Sankili with specific reference to training and

development programs. In view of time the project work will be for a

shorter period. Information regarding the outcome of training and

development program will be evaluated on general terms but not on

scientific terms.

Sample size collected is not very large. Subjectivity on this part in interpretation and analysis.


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CHAPTERII

INDUSTRY PROFILE


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WORLD SUGAR PRODUCTION

Country wise sugar production:

Rank country production (100 MT)

1. Brazil 39,400.002. India 25,700.003. EU-27 14,800.004. China 12,670.005. United States 7,607.006. Thailand 6,870.007. Mexico 5,450.008. Australia 4,800.009. Pakistan 3,270.0010. Russian Federation 2,850.0011. Guatemala 2,474.0012.Turkey 2,400.0013. Argentina 2,290.0014. Colombia 2,200.0015. South Africa 2,140.00


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SUGAR INDUSTRIES IN INDIA

Sugar industry in India is well developed with a consumer base of

more than billions of people. It is also the second largest producer ofsugar in the world.


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INDIAN SUGAR INDUSTRY- ANALYSIS

Indian sugar industry has entered the strongest up cycle (lowest

stock to use ratio) in the history of 50 years after witnessing supply glutin previous tow sugar seasons in a row (SS 2006-08). In SS2006-07,

sugar production reached all-time high of 28.3 mn tones, registering a

growth of 46.6% on year by year basis and it declined marginally by 7.1%

to 26.3 mn tones in SS2007-08. Sugar production reached an all-time

low of 14.7 mn tones during SS2008-09 due to sharp fall in the

sugarcane acreage. However, sugar consumption continued to grow at a

steady pace.

In SS2008-09, on account of a steep fall in sugar production and

fall in the stock to use ratio, the average wholesale prices incteassed byalmost 50% on year by year basis. This had a positive impact on the

margins of sugar companies in quarterly for the year 2009.

The production of sugar is spread across the county. Maharashtra,

Uttar Pradesh, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh are

the major sugar producing states in the country. In SS2007-08, the State


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of Maharashtra produced the highest sugar at 9.1 mn tones followed by

UP with 7.3 mn tones. These two states together account for almost 62%

of the total sugar produced in India.

Sugarcane is the primary raw material for the sugar industry. It

accounts for almost 75%-80% the total operating cost of the sugar

industry. UP is the largest sugar-producing state in the country and

accounted for about 37% of the total sugarcane output in SS 2007-08

followed by Maharashtra with 24%. Even though, UP is the largest

sugarcane-producing state in the country it is the second-largest

producer in India as drawl and recovery rates in UP are one of the lowest

in India.

We except sugar deficit situation in India to continue in SS2009-10

and SS2010-11. We believe that India will bridge the gap betweendemand and supply through imports. We except that sugar prices will

continue to rise till SS2009-10 on account of tight demand and supply

situation in country.

Indian sugar Industryconcept & Terminologies in India:

It is classified under essential commodities which makes it

vulnerable to regulatory policies by the regime the quantum of sugar

produced by a mil is determined by the factors like daily crushingcapacity, duration of crushing season and percentage of sugar recovery.

[Tones Crushed Per Day (TCD), 180 days and 10-12%]. The Sugar

Year (SY) is from October to September At present, sugar mills are

required to provide 10 percent of their total production as levy sugar ( Rs

13/- kg) for the Public Distribution System (PDS) Sugar is a cyclic

industry which follows a three year cycle. SMP is the Govt. determined

price at which sugar manufacturers purchase cane from farmers

whereas SAP is the price at which sugar manufacturers sell sugar in the

free market.


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Indian Sugar IndustryAn Overview:

India is the second largest producer of sugar cane after Brazil. On

the domestic front, the Indian sugar industry has a turnover of Rs. 700

billion per annum (US $ 14.6 billion). There are 553 installed sugar mills

in the country with a production capacity of 180 lakh MT of sugar.

These mills are located in 18 states of the country, with

Maharashtra contributing over one-third of it. About 60% of these mills

are in the co-operative sector, 35% of the total are in the private sector

and rest in the public sector. Until the mid 50s, the sugar industry was

almost wholly confined to the states of Uttar Pradesh and Bihar. After

late fifties or early sixties the industry dispersed into Southern India,

Western India and other parts of Northern India.

Almost 75% of the sugar available in the open market is consumed

by bulk consumers like bakeries, candy makers, sweet makers and soft

drink manufacturers.

The crushing season in the country stats from October and reaches

its peak in January before finally ending in March or April of the next

year. Mr. Samir S Somaiya is the current President of Indian Sugar Mills

Association (ISMA)and Managing Director of Godavari Sugar Mills Ltd.

Raw Material:

In India, sugarcane is the key raw material, planted once a year

during January to March. It being an agricultural crop is subject to the

unpredictable vagaries of nature, yielding either a bumper crop or a

massive shortfall in its cultivation from year to year.

The sugarcane growing areas may be broadly classified into two

agro-climate regions: Tropical Maharashtra, AP, Tamil Nadu

Subtropical UP, Bihar, Punjab, Haryana, Gujarat, Karnataka,

Maharashtra and UP are the main cane producing states. Sugar cane

prices comprise more than 70% of the total costs of Sugar Production.


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DemandSupply:

Mismatch 30% of the total consumption is used Reduction in

cultivation area by about directly by households, while 70% is used 17%

during SY 2008-09, would result in indirectly. Reduction in production of

sugarcane to Sugar consumption is expected to grow approx, 280.5 MT.

at the rate of 4-4.5% because of Farmers are shifting to alternate crops

Steady growth in population by 1.3-1.4% p.a. like wheat, jowar, sweet

corn, bajra, etc.

Growth of per capita income by 6.5-7.5% p.a. which are more

profitable. Sugar Prices over last 5 years the lack of intervention from

government is having potential to push sugar prices to new high in

Indian markets. The market will remain well above Rs.2000/qtl during

the sugar year 2009-10.

Government Policies and Interventions Statutory Minimum Price

(SMP) and State Administrated Price (SAP):

As sugar falls under essential commodities, it is being regulated by

the state government in coordination with the Center.

For the season 2009-10, the regime is under tremendous pressurefor declaring SMP as this crop has fallen from surplus to deficit category.

Subsidies The Govt. has given transportation subsidy to sugar

exporters in order to release excess stocks piled up at millers end, but

this has ended last September.

Huge Capex During 2004-05 (Mulayam Singh) government had

flooded sops for inviting investments in UP which have seen

overwhelming response. The state was able to garner around Rs 30,000

crores in form of various investments. The sugar millers have alsoundergone huge debt lead expansion based on the investment slabs

dictated by regime. It is these debts only which the millers are still

tacking. Levy sugar The govt. is planning to increase levy quota (for

BPL under PDS) from current 10% to 20-25% due to concern of

increasing sugar price.


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Integrated Sugar Manufacturing Model:

100 kgs of Sugarcane gives approx.10 kgs of sugar, 5-6 kgs of

Molasses, 33 kgs of Bagasse and around 4 kgs of press mud. 100 kgs of

Molasses gives approx. 22-25 liters of Alcohol. 100 kgs of Bagasse can

generate approx. 35 units of power.

Indian Sugar IndustryFive Forces Analysis

a. New entrants:- Medium Incentives given by the Govt. beenwithdrawn and new sugar units are required to comply with levy

quota regulations from 1styear of operations.

b. Competitorsc. High Bargaining power of Buyersd.Bargaining power of Suppliers:-

High with around 500 units engaged in production of Govt.

influences distribution, As Govt. announces the purchase sugar,

Industry is highly purchase price of levy sugar price (SMP), it

protects the fragmented and the free sale quota releases interest of

the sugar cane farmers for sugar.

e. Threat of Substitutes:-Low Alternate sweeteners to sugar are gur and khandsari,whose use is declining.

Indian Sugar IndustrySWOT Analysis

STRENGTH & WEAKNESSES

Higher End Product Prices:-

Sugar is the main product of Fall in derivatives. The fall in prices of

derivatives like sugar mills, which is most likely to fetch record prices

this ethanol, baggase, waste or manure etc. will also have year. The mills

that are able to secure cane supply will be the adverse impact on almost

all the companies, biggest beneficiaries.

In recent past the mills have Currency Risk, most of the companies

which have exposure undergone capacity expansion, which will increase


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their in form of overseas loans, imports etc. will be vulnerable to

processing capacity leading to higher productivity. The forex losses in

advent of rupee depreciation.

Favorable policy:-

Like any other industry, sugar companies too have liquidity crunch

which can be meet through Sugar Development Fund of the Government

of India under special case schemes.

OPPORTUNITITES & THREATS

Seasonality:- Sugar follows 3-5 years cycle.

Low Cane Availability:-

Limited or non-availability of cane function or prices. We have

already witnessed the bearish will eventually lead to early closure of

mills. Phase following excess supply.

Lower Unfavorable Policy:-

The call for change in policy will now production and higher

consumption, which calls for higher be via inflation route only, since for

securing supplies remuneration to the farmers for attracting higher

government has already relaxed norms for imports, which acreage under

sugarcane. Are acceptable at zero duty.

Crude Oil Revival:-

The revival in crude oil prices will throw.

Higher debt:-

The fund was raising capabilities of most of the industry intolimelight again. The derivative products of existing companies in this

sector are under serious threat cane would be in demand and supply

constraints are amid ongoing tight liquidity. Clearly visible to push prices

higher.


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Alternate Crops:-

Alternate crops to sugarcane are more profitable.

SUGAR INDUSTRY CYCLE

Like any other agricultural product, cane production follows a

cycle. This impacts the sugar industry which has a typical of 3-5 year

cycle. Higher sugarcane production results in a fall in sugar prices and

non-payment of dues to framers. This compels the farmers to switch to

other crops causing a shortage, which in turn results in increase in

sugarcane prices and extraordinary profit. Taking into account thehigher prices of cane, the farmers switch back to sugarcane, which

completes the cycle.


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SUGAR PRODUCTIN IN STATES

The following table shows level of sugar production (In Lakh

Tonnes) in Indian states.

State 2007-08 2008-09 2009-10 2010-11 2011-12

Uttar Pradesh 73.20 41.53 51.67 57.58 69.58

Maharashtra 90.75 46.00 70.36 90.65 89.96

Karnataka 28.39 16.75 25.12 36.44 37.57

Tamil Nadu 21.41 15.95 12.69 18.42 17.94

Andhra Pradesh 13.35 5.92 5.10 10.05 11.30

Gujarat 13.66 10.22 11.91 11.91 10.02

The sugar production in the states largely depends upon monsoon.

From 1998-05 good monsoon resulted a larger production of sugar in the

country.

UP

26%

Bihar

2%

Mahrastra

36%Gujara

5%

A.P

4%

Kar

14%

TN

7%

Others

6%Sugar production


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Cane Area, Yield, Sugar Production and Sugar Recovery Percent

It can be noted from the above table that through the recovery

percentage has remained stable during the last 5 years, the yield of

sugarcane during the same period has reduced from 70 T/ha in the year

1999-00 to 59.1 T/ha in the year 2003-04. The low yield of sugarcane is

a matter of great concern to the industry. Cane development activity with

specific target is necessary to achieve improvements both in yield and

quality of sugarcane.

MAJOR REASONS FOR LOW PRODUCTIVITY

Recently there has been a major educing in area under sugarcane

cultivation and is yield mainly due to drought in almost the whole of

tropical and sub-tropical regions. The effect of drought, delayed of cane

price and low sugar prices in the recent past have led to fall in sugarcane

production and closure of some sugar mills.

The incidence of woolly aphid as a new PEST on sugarcane to light

in August 2002 in Belgium district and moved swiftly to Bhadra canal

areas and Cauvery basin in southern Karnataka. The incidence and

alarming rate of spread and severity has created panic among the cane

Year

Area

000 ha.

Yield

Kg/ha.

Production of

Sugar cane(000 ton) Recovery%

No. of factories in

Operation

2006-07 5151 69022.2 355520 10.16 501

2007-08 5055 68877.2 348188 10.30 516

2008-09 4415 64553.4 285029 10.05 488

2009-10 4175 70019.2 292302 10.20 490

2010-11 4885 70091.2 342382 10.17 527

2011-12 5087 70310.0 357667 10.17 529


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growers in Cauvery basin who have already suffered substantial losses

due to drought during the previous years.

The Following Interventions on the various issues are required for

the purpose:

1. Sugarcane variety

Various experiments conducted under All India Coordinated

Research Project (AICRP) has shown that the newly developed varieties

are suitable to be grown under specific climatic conditions. Therefore

only the recommended varieties are to be cultivated suitable to the

regions.

Bihar records the lowest sugar recovery % cane as compared to

other major sugar producing States of the country. Against an all India

average recovery of 10.36% in 2002-03, Bihars recovery was only 9%,

some factories have even recorded recovery as low as 7.0-8.23%. This is

against an average recovery of 10.93% which was achieved by the Bihar

factories in 1942-43.

Special attention is therefore required to be given to varietal

composition in regions recording low sugar in cane. It was suggested by

the stake holders that the Sugarcane Research Institute, Pusa which is

the only Research Institute in Bihar should be allocated adequate fundsby the Central and State Government for developing suitable varieties of

sugarcane which are high yielding and have high sugar content. It was

noted that in some regions like Uttar Pradesh a number of low sugared

cane varieties continue to occupy large areas in spite of being rejected by

the State Government. Therefore, there is an urgent need for replacement

of such rejected varieties through extension services.

2. Water Conservation

Out of the total irrigated area in the country, nearly 58% is

irrigated by Tube wells and other wells, 32% by canals, 5% by tanks and

remaining 5% by other sources. For conserving water, all the under well

irrigation in sugarcane needs to be brought under drip irrigation. Drip


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irrigation will facilitate improvements in production and optimize use of

fertilizer and other nutrients.

Lack of sufficient knowledge about the PEST in the ecosystem and

preparation to gear up to situation among the technologies has been a

major concern to suggest effective management practices. The PEST

occurring mostly in tropical Asiatic region, cool and cloudy weather (19-

35 C) in conjunction with high relative humidity (85%) favored faster

infestation of the PEST. Therefore, keeping in view the bio-econlogy of the

PEST some of the agronomic practices to mitigate the spread and ill

effect has to be developed. VSI has extended its services to control the

diseases by developing and providing the natural enemies, viz.

Trichgramma, Chrysopera, Encarsia, Isotima, Dipha etc.

3. Alternate Feed Stocks

Sugarcane has been conventionally used as raw material for

manufacture of sugar in India. The sugarcane yield has remained

stagnant for the past many years and the sugar content also has not

shown any significant increase despite efforts by the industry. The moot

point is whether the sugar industry should remain solely dependent on

one crop, viz. sugarcane or explore the use of various other alternate rawmaterials.

Recent studies have shown that it is possible to cultivate sugar

been under tropical conditions and that this can effect economics of the

industry in many ways. Sugar beet can be used as a co-crop to

sugarcane to extend the duration of the crushing and also to enhance

the sugar yields. It can also be used as a standalone crop.

Another crop that can have a good potential in improving the

economics of the sugar industry is Sweet Sorghum. Sweet Sorghum canbe processed alongside sugarcane or sugar beet to produce ethanol.

Therefore a combination of cultivation of sugarcane, sugar beet and

sweet sorghum can facilitate the sugar industry to have a right product

mix and achieve commercial sustainability on a global basis. A

comparison of the features of the three crops clearly indicate that each


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of the three crops have their own merits and demerits and a combination

of these can effectively solve the problems of adequate availability of raw

material for the success of a sugar complex.

The committee recommends that the use of alternate feed stock like

sugar beet and sweet sorghum may be encouraged and projects for seed

development, cultivation and processing of such crops may be provided

loans from SDF.

4. Purchases through Intermediaries

The committee observed that the Uttar Pradesh, the sugarcane is

purchased by the factory through cooperative societies, whereas, the

factories deal directly with the sugarcane growers in all the other major

sugarcane producing States including Maharashtra, Andhra Pradesh,

Tamil Nadu, Karnataka and Punjab. The committee noted that the Lok

Sabha Standing committee on Civil Supplies and Public Distribution

(1995-96) has recommended a direct link between the factories and the

farmers. In U.P. most of the sugar factories have already computerized

the following operation.

Preparation of cane supply calendars.

Issuance of supply tickets to the farmers.

Making can price payment through the banks.

Maintenance of grower-wise records etc.

The above functions were previously being done by the canesocieties. Therefore the Committee observed that the factories in UP

should enter into a direct contract with the growers like in other States

and execute tri-partite agreement with banks and farmers for

procurement of sugarcane to facilitate use of Kisan Credit Cards and

availability of soft loans to farmers.


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5. Taxes on Sugarcane

The stakeholders expressed concern on the impact of the incidence

of various taxes including purchase tax on the profitability of the

industry in the various States. The quantum of taxes on sugarcane

affects the capacity of the sugar mills to pay cane price. It was suggested

that if these taxes could be uniform through the country, level playing

field could be established.

The committee felt that it was not possible to achieve uniformity as

these taxes are in the purview of the respective States.

An alternate suggestion, namely that these taxes might be credited

against VAT, which is to be brought into operation from April 01, 2005

was discussed. It was brought to the notice of the committee that someStates are not agreeable to the crediting of such taxes against VAT and in

any case, matters of this kind are to be finalized by the Empowered

Committee of State Finance Ministers.

6. Infrastructure

The committee after discussions with the representatives of

industry and stake holders of major sugar producing States observedthat infrastructure required for sugarcane cultivation and transportation

is poor in many parts of the country.

Sugar industry in many States need better infrastructure like good

irrigation facilities, availability of power, properly maintained road for

transportation of sugarcane from field to sugar mills etc. The sugarcane

cultivation in many parts of the country suffer from flood and water

logging. The causes for the frequent flooding in Bihar is due to release of

excessive water from Nepal. In states like Maharashtra and Karnatakasugarcane growers require basic facilities for irrigation, power etc.

Inadequate Infrastructure has adversely affected the yield and quality of

sugarcane.

The Committee therefore felt that the State government

should pay special attention to provide and maintain necessary


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infrastructure like irrigation, power, roads and drainage etc. for

sugarcane cultivation and transportation.

7. Alternate Usages

Vacuum pan sugar factories are bound to produce plantation white

sugar only. Some presentations made before the Committee suggested

that this restriction could be lifted and sugar factories might be left free

to produce other sweeteners like gur and Khandsari, if they wished.

The committee discussed the idea of allowing sugar mills to

manufacture sweeteners other than sugar if required. The Committee

noted that the use of sugarcane for manufacturing products other than

white sugar should be commercially and legally examined.


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INDIAN GOVERNMETN ON SUGAR INDUSTRY

The following policy initiatives are taken to boost the Sugar Industry:

Government declare the new policy on August 20, 1998 withregards to licenses for new factories, which shows that there

will be no sugar factory in a radius of 15 Km.

Setting up of Indian Institute of Sugar Technology at Kanpuris meant for improving efficiency in the industry.

In the year 1982, the sugar development fund was set up witha view to avail loans for modernization of the industry.

Sugar has historically been classified as an essential commodity

and has been regulated across the value chain. The heavy regulations in

the sector artificially impact the demand-supply forces resulting in

market imbalance.

Sensing this problem, since 1993 the regulations have been

progressively eased. The key regulatory milestones include de-licensing of

the industry in 1998 and the removal of control on storage and

distribution in 2002.


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SUGAR INDUSTRY IN ANDHRA PRADESH


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About Andhra Pradesh Sugar Industry:

Andhra Pradesh (AP) abounds in maximum number of private

sector sugar companies in India along with Tamil Nadu and Karnataka.

In the year 1933-34, vacuum process was adopted for sugar

manufacturing in the state. Previously, the state government was

planning to support Cooperative sector as against other sectors.

However, with passing time, a considerable change in the policy was

noticed. Letters of Internet (L.O.I) were given to the deserving

entrepreneurs including 20 LOIs to the private sector companies.

This gradually resulted in major benefits for the state government

as well as for India as a whole. Today, Andhra Pradesh sugar industry

ranks 3rdin terms of recovery and 5thin terms of cane crushing. As per

production capacity is concerned, Andhra Pradesh stands at the position5 in India.

The agricultural laborers who do sugarcane harvesting and

cultivation are employed in the sugar industry in Andhra Pradesh.

Today, the unprecedented growth of this industry in the state has led to

the consolidation of village resources and has facilitated communication,

employment and transport system here.

Types of Sugar Industry in Andhra Pradesh

Andhra Pradesh sugar industry can be classified into two parts

such as organized sector including sugar mills and unorganized sector

including manufacturers of gur (jaggery) and khandsari. The unorganized

sector is often referred to as the rural industry. The rural industry plays

major role in the level of population.


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ANDHRA PRADESH TOTAL SUGAR INDUSTRIES

FACTORY NAME VILLAGE NEARSET CITY

Empee-Sugar& chemicals ltd

NAYUDUPET

Ganapati-SugarIndustries Ltd..

Fasalwadi/kulbugoor

Sangareddy

Gayatri Sugars Limited ALDOORYELLAREDDY

Kamareddy

PARRY Industries Limited

(PARRYS-SUGARINDUSTRIES LTD)

Sankili, Regidi

GSR Sugars Limited MAAGI Nizamabad

K.C.P. Sugar & Industriescorporation Ltd Vuyyuru

K.C.P. Sugar & Industries

corporation Ltd LAKSHMIPURAM

Kakatiya Cement Sugar &Industries Ltd

PERUVANCHA Khammam

KBD Sugars & DistilleriesLtd

Mudipapanapalli PUNGANUR517247

Madhucon sugars Ltd RAJESWARAPURAM

Navabharat Venture Ltd SAMARLAKOT Visakhapatnam

NCS Deccan Sugars Ltd Latchyyapeta

Nizam Deccan Sugar Ltd MOMBAJIPALLY Deccan

Nizam Deccan Sugar Ltd Muthyampet Muthyam


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Nizam Deccan SugarsLtd

Shakkarnagar Metpally

Prudentail Sugar

Corporation Ltd

KOPPEDU POST

Sagar Sugar & AlliedProducts Ltd

Nelavoy Village

Sarita Sugars Ltd Prabhagriripatnam

Sree Rayalseema Sugar &Energy Ltd

Ponnapuram Nandyal

Sri Sarvaraya Sugars Ltd CHELLURE Chelluru

Sri Venkateswara Co-op,sugar Fct. Ltd

GAJULAMANDYAM Tirupati

Sri Vijayarama GajapathiCo-op, Sugars Ltd

BHIMSINGHI Vijayarama

Sudalagunta Sugars LtdBUCHINAIDUKANDRIGA Mayuranagar

The Amadalavalasa Co-opSugars Ltd

AMADALAVALASA Amadalavalasa

The Anakapalli Co-opSugars Ltd

Thummapala Anakapalli

The Andhra Sugars LtdUnit- I

TANUKU Tanuku

The Andhra Sugars Ltd.Unit- III BHIMADOLE Bhemadole

The Andhra Sugars LtdUnit- II

TADUVAI Taduvai


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The Chittoor Co-OperativeSugars Ltd

Chittoor

The Chodavaram Co-opSugars Ltd

GOVADA Chodavaram

The Cuddaph Co-opSugars Ltd

Doulathapuram Cuddaph

The Etikoppaka Co-opAgri & Indi Society Ltd

Etikoppaka Etikoppaka

The Jeypore Sugar Co. Ltd CHAGALLU Chagallu

The Kovur Co-op SugarFactory Ltd

POTHIREDDIPURAM Kovur

The Nannapaneni VenkatRao Coop Sugars Ltd

JAMPANI JAMPANI

The Nizamabad Co-opSugar Factory Ltd

SARANGAPUR Nizamabad

The Thandava Co-op.Sugars Ltd

PAYAKARAOPETA Thandava

Trident Sugars Ltd MADHUNAGAR Zaheerabad


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In Andhra Pradesh there are 34 sugar factories of which are under

co operative sector (including the new mills constructed in Tenali,

Gurajala, Kurnool, Hanuman Junction, Kovvur and Nadyala) 8 are under

the public sector and private sector. Presently 39 factories are

participated in sugarcane crushing.

Sugar industry continues to play a dominant role in the economy of

other states as sugarcane is one the important commercial crops. The

installed capacity of the 42 sugar factories in the state is 54000 tones of

cane crushing per day (TCD). During 1986-87 season the sugar factories

in the state crushed 56 lakh tones of sugarcane with an average recovery

of 9.43% about 5028 lakh tones sugar was produced by these factories.

Directorate of Sugar and Commissionerate of Cane Andhra Pradesh

Belonging to Industries and Commerce Department, the Directorate

of Sugar and Commissionerate of Cane has been vested with the power

to guide and deal with the sugar factories in Andhra Pradesh. It is the

responsibility of the department to encourage sugarcane farmers and to

help this developing industry contribute effectively towards Gross State

Domestic Product (GSDP). The department also takes care of thetechnological advancement of the industry.


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CHAPTERIII

COMPANY PROFILE


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PROFILE OF PARRYS INDUSTRIES

INTRODUCTION:

EID Parry (India) Ltd is one of the largest business groups in the

country. The company is engaged in the manufacture and marketing of

a wide-range of products than includes Sugar, Bio-Pesticides and

Nutraceuticals. The company made their presence felt across the globe

by developing and nurturing tie-ups with various organizations such as

Sugarcane Research Institute in Australia, Sugar Processing Research

Institute in Louisiana, Tate and Lyle International in UK and Mitr Phol

Sugar Corporation Ltd in Thailand.

EID Parry (India) Ltd is a pioneer in the manufacture of plantation

white sugar from sugarcane. The British trader, Thomas Parry

established the House of Parry in the year 1788. Parry set up the first

Sugar Factory in 1842 at Nellikuppam in Tamilnadu. In the year 1952,

the company factory at Ranipet launched Parry ware, their gleaming

vitreous sanitary ware collection that makes bathrooms decorative. In

the year 1975, the company was converted into an Indian company.

The company became the member of the Murugappa group in the

year 1981. In November 1992, the company acquired the sugar unit atPugalur in Tamilnadu. The electronics divisions of Murugappa

Electronics merged with the company with effect from April 1991. In

December 1995, they acquired the pesticides business of Bharat

Pulverising Mills and in March 1996, the wall tiles project of the

company at Karaikal commenced their production.

During the year 1988-99, the seeds division of the company was

sold as an undertaking to Parry Monsanto Seeds Pvt Ltd, in which

Monsanto India Ltd holds 51% and the company holds 49% of theequity. The company along with Santhanalakshmi Investments Ltd

95.96% of the paid up capital of Cauvery Sugars and Chemicals Ltd.

In April 1999, the magnetic Media Unit at Mysore has been sold as

a going concern to Meltrack India Pvt Ltd. During the year 1999-2000,

the company acquired Johnson Pedder Ltd with sanitary ware unit at


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Dewas in Madhya Pradesh. Thus, the company became a wholly owned

subsidiary company. The company increased their capacity at Pugaur

plant to 4000 TCD. In March 2000, they commissioned 2500 TCD green

field plant at Pudukottai.

Coromandel fertilizers Ltd and Santhanalakshmi Investment Pvt

Ltd became the subsidiary of the company with effect from December

14, 2001 and January 31, 2002. Also, Parry America Inc commerced

their operation form January 2002. The farm inputs Division of the

company was de-merged and transferred to Coromandel Fertilizers Ltd

with effect from April 1, 2003.

Also, Parry & Company Ltd and The Mofussil Warehouse & Trading

Company Ltd amalgamated with the company. During the financial year

2003-04, the company acquired 95% stake in East India Sugars PvtLTd, Chennai that is engaged in sugar trading. During the year 2005-

06, the company incorporated Parrys Sugar Ltd with an initaial capital

of Rs.1.50 crore.

Parrys Investment Ltd became a wholly owned subsidiary of

company during the year, Santhalakshmi Investments Pvt Ltd was

amalgamated with the company with effect from May 1, 2005 and

subsequently Coromandel Bathware Ltd became a subsidiary. In March

2006, the company transferred their Parryware division on a goingconcern basis by way of slump sale to Parryware Glamourooms Pvt Ltd,

a wholly owned subsidiary of the company for Rs. 16.66crore. Also, they

commissioned 18 MW co-generation plant at Pudukottai. The company

transferred 432580 equity share of Rs. 10 each held by the company in

Parry ware Glamourooms Pvt Ltd in favour of Roca Sanitario SA of Spain

for the consideration of about Rs. 118.55 crore. Consequent to this,

PGPL ceased to be a subsidiary of EID with effect from June 1, 2006 and

became a joint venture company.

In December 8, 2006 the company entered into a joint venture

agreement with Cargil Asia Pacific Holding Pvt Ltd, a wholly owned

subsidiary of Cargill International. In March 2007, the company

commissioned 22 MW co-generation power plants at Pugalur. During

the year 2007-08, the company invested Rs. 45.92 crore in the equity of


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the Joint Venture entity, Silkroad Sugar Private Ltd. In February 2008,

the company acquired 51% stake in Phytoremedies Bio-labs Private Ltd,

a company engaged in the business of Nutraceuticals the said company

became a subsidiary company.

The company approved to sale 47% equity holding in Parryware

Roca Private Ltd to Roca Bathroom Investments SP, an affiliate of Roca

Sanitario SA, Spain for a consideration of Euro 11,11,49,111. In

November 2008, the company acquired 48% stake in a leading US

Nutraceuticals company. The company proposes to set up Green Field

Distilleries at Pudukottai and Sivaganga entailing an overall investment

of about Rs. 165 crores. Also there are in the process of setting up a

Sugar refinery in Food Processing Special Economic Zone of Parry

Infrastructure Company Pvt Ltd at Vakalapudi, Kakinada rural mandal,Kakinada.

SUGAR DIVISION:

Nellikuppam has been recognized as a Zero-waste plant with a

strict adherence to quality and high productivity. They have been the

recipients of several awards and certifications with the course of time.

Some of the most significant achievements by the company are:

ISO 14001 certification in Pudukottai & Nellikuppam.The recipients of the Green Tech Award on Safety. Instrumental in organizing SHE events at the

Murugappa Group level.

EID Parry has 5 plants in the country situated at Nellikuppam in

Cuddalore district, Pugalur in Karur district, Pudukottai in Pudukottai

district, Pettavaithallai in Trichy district and Puducherry. The combined

crushing capacity of all the five plants is 15800 (TCD) Metric Tons of

cane per day.


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The Pudukottai unit of EID, Parry bears testimony to the

phenomenal instinct, the company has, of honing onto potential

possibilities and turning them into resounding successes. The

Pudukottai site had continuously been rejected as a prospective site for

building a factory. After several futile attempts to lure companies intobuilding their units, the Government of India approached Parrys

requesting them to start a venture at Pudukottai.

Although there was a lot of speculation and skepticism about the

venture, Parrys took on the project with their usual indomitable will and

enthusiasm determined to achieve at least a modicum of success.

Currently, the Pudukottai factory is one of the largest revenue generators

of the organization clearly accentuating the determination and hard work

invested in it by the employees and management of Parrys.

NEW PLANTS IN ANDHRA PRADESH:

Indian sugar producer EID Parry is renaming GMR Industries Ltd

as Parrys Sugar Industries Ltd after acquiring a majority stake in the

company. Early this year, EID Parry struck a deal to acquire 51% in

GMR Holdings that marked the exit of GMR group from the sugar

business. Rothschild was the sole financial advisor to GMR Group on thetransaction.

Thereafter E.I.D made an open offer and as of end September owns

65% stake. GMR Holdings continues to hold 22% in the loss-making

small-sized sugar firm.

The deal was in fine with GMR groups overall strategy to divest

non-core assets and focus on infrastructure and energy business in the

future.

GMR Industries, with reported a net loss of Rs 30 crore for the

quarter ended September 30, currently operators there fully-integrated

sugar complexes in Andhra Pradesh and Karnataka with a combined

installed crushing capacity of 11,000 TCD (Tonne crushing capacity per

day), 46 MW of co-generation and 95 KLPD (kilo liter per day) of

distillery.


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Net loss of the company was Rs 30 crore for the July-September

quarter as against a loss of Rs 18.3 crore during the same period of

2009-10, the filing added.

Net sale of the company during the second quarter jumped to Rs

19.89 crore, slightly up from Rs 16.65 crore reported last year for the

same quarter.

Share of the company were traded today at Rs 147 apiece on the

BSE, up 0.38% from the previous close.

The company also holds a license to set up and operate an

integrated sugar complex of 3,500 TCD sugar mill at Raibagh in

Karnataka. It also owns land and license to set up another plant in

Andhra Pradesh.

Sugar is a cyclical industry and is one of the heavily regulated. The

industry that follows a four year business cycle saw prices peaking out in

January this year and has retracted sharply since then with almost a

third decline in price.

EID PARRY Launches Branded Sugar

18 November 2004 marks yet another milestone in the 216 year old

history of EID Parry. The day marks the first-ever launch of branded

refined sugar by a South Indian company. The day marks the launch of

Parrys pure refined sugar.

Sugar making E.I.D Parrys history dates back to 1842. It was then

that the company pioneered the production of sugar by establishing the

countrys first sugar factory at Nellikuppam. This factory also holds the

distinction of being the first ever integrated sugar complex in India.

Today, like in the past, the company continues to set standards in

the sugar industry. Parrys sugar has been initially launched in Tamil

Nadu in one-kg refill packs and pet bottles. Every grain of Parrys pure

refined sugar is a product of a superior refining process and is processed

hygienically from first grade cane.


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In addition, Parrys pure refined sugar has a longer shelf life of over

18 months and is absolutely pure and free of all impurities.

Over the last to months since its launch, the brand has received

good response. Not just from consumers but also from the channel

members. Over the next few months the company also plans to expand

its availability across the country. The success of Parrys pure refined

sugar marks just the first step in EID Parrys foray into this business.

The companys ambitious plans for the future include sugar variants

such as, brown sugar, a range of flavored sugar apart from sachets,

cubes, etc.

PARRYS SUGAR INDUSTRYSANKILI DIVISION

PARRYS Industry ISO 9001:2000 accredited Sugar division started

production in 1997. It has a cane crushing capacity of 5000 tones per

day, Co-generation capacity of 16 Megawatt (MW) and a Distillery unit

capacity of 45 Kilo Liters per day (KLPD). More significantly, this plant

has brought rapid economic development to Srikakulam district, a

remote area in Andhra Pradesh. Livelihood generated through it has

helped to improve the economic & social standard of living of the

farmers.The company uses the most advanced technology to produce two

grades of superior quality sugar, namely M30 and S30. It is the first

fully fledged co-generation plant in Andhra Pradesh with an installed

capacity of 16 MW. The molasses produced from sugar is utilized as a

feed stock in the distillery and the Bagasse produced from cane is used

as fuel for the boilers.

The Sugar Plant has adopted several cost-effective and steam-

conservative technologies such as Falling Film Evaporator, VerticalContinuous Pans and Short Retention Time Clarifier; through these

measures it has been able to reduce the existing steam consumption

from 35%, thereby earning the distinction of being the lowest steam

consuming plant in the sugar industry.


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Financial Structure:

The original cost of the project was Rs. 75 crores. The project was

appraised by industrial finance corporation of India (IFCI) for evaluating

and the availability.

The project founding was as given below:-

Authorized capital : 75 crores. Issued and subscribed : 60,46,00,00. Opening Capital : 59,29,00,000.

1997Commissioning of the sugar factory installed capacity of 2500

TCD

1997Launching of the intensive Cane Development Programme resulting in increased availability of sugarcane from 70,000 Metric

Tonnes to 600,000 Metric Tonnes by 2004.

1999dditional co-generation plant added to the existing facility.

2001Full-fledged 16 MW co-generation facilities installed.

2002Enhanced crushing capacity to 3125 TCD.

2005Installed distillery plant to produce Ethanol and Rectified Spirit attained status of full-fledged integrated sugar complex.

2006Increased total crushing capacity to 5000 TCD, highest by Sugarindustry standards.

Fully automated, the plant uses Bagasse during season and other

biomass products such as jute sticks, cotton stems, cane trash,

groundnut shells etc. as feel in off season.


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Fact sheet:

Product Electricity.

Date Of Commencement August 2001.

Capacity 16 MW.

Fuel Bagasse, cane trash and other biomass

fuels.

Location Sugar complex, Sankili.

Distillery Modern distillery with zero pollution

discharge and reverse osmosis to

reduce effluent generation by 50%.

An ISO 9001 certified Sugar Factory with latest state of the art

technology including provision for carbon-di-oxide recovery and zero

pollution discharge. Uses advanced technology like Falling Film

Evaporator, Vertical Continuous Pans and Short Retention Time Clarifier

to reduce steam consumption from 35% to 32%.

Fact Sheet

Location Sankili, Srikakulam District, close to

Visakhapatnam Port, Andhra Pradesh

Crushing Capacity 5000 TCD

Number of surrounding villagers

Supported 500

Accreditation 9001:2000 American Quality Assessors


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BOARD OF DIRECTORS:

The board of directors of the company has an optimum

combination of executives and non executive directors. The board

consists of eight members, of whom 4 directors are independent and 5

directors are non - executive, Mr. K.V.K. Seshavataram is non - executive

chairman.

NAEM OF THEDIRECTOR

DESIGNATION CATEGORY

Mr. S. Sndilya Chairman Independent & Non-Executive

Mr. D. Kumaraswamy Managing Director Promoter &Executive

Mr. V. Ravi chandran Director Promoter &Non - Executive

Mr. N. Srinivasan Director Promoter &Non - Executive

Mr.K. Balasubramanyan Director Promoter &Non - Executive

Mr. K. Ramadoss Director Promoter &Non - Executive

BOARD MEETINGS

Normally, the board meetings are held at least once in a quarter to

review and discuss the operating results and other items of the agenda.

In addition, the Board Meetings are held whenever required. The

maximum time gap between any two meetings is not more than three


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calendar months. Generally, the Board Meetings are held at the

Corporate Office of the company at Hyderabad. During the financial year

the board met 27 times.

PARRYS (GMR) Products and Technological Achievements

The company mainly producing two grades of superior qualitysugar, namely M30 and S30 through the adoption of the

latest technology.

Several innovative Energy Conservation Measures have beenadopted to bring down the energy consumption levels. Steam

consumption has been reduced from 32% to 35%, the loweststeam consumption figure in the Sugar industry.

As a part of Total Quality Management, the Group hasintroduced Quality Circle concept for the first time in the

Sugar Industry of Andhra Pradesh through voluntary

participation of the employees.

The plant is the first Sugar industry of Andhra Pradesh toreceive the ISO 9001-2000 certificate.

The Sankili plant is the first fully fledged co-generation plantin Andhra Pradesh, with an installed capacity of 16 MW.

The plant has 100% DCS controls generating power for both -in house consumption and export to the grid.

The plant is the first in Andhra Pradesh to undertake full fledged cane trash procurement and utilization as fuel in theboilers.


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The plant also has the most modern distillery of 45 KLPDcapacity with Molecular Sieve Dehydration system to produce

best quality Ethanol and Rectified Spirit.

Managements commitment towards environmental protectionis exhibited through a massive investment of Rs. 6.50 crores

on Effluent Treatment Unit, incorporating Reverse Osmosis

Technology for the first time in Andhra Pradesh.

The plant has also installed an Anaerobic Digester and RCCbio compost yards to achieve zero discharge of effluents.

The plant has been recognized by the Pollution ControlAuthorities as being a model Effluent Treatment Factory. The

pollution Control Board has also rated it is a benchmark

plant for other distilleries to emulate.

Major Awards

Received SISTA Awards for The Best Cane Development Factoryfor the year 2002-03.

Received the S.V. Pathasarathy Memorial Award from SISTA for TheBest Performance Sugar Factory for the year 2003-04.

PARRYS (GMR) Sankili Sugar plants, Sr. Manager (Cane) wasawarded the Best Cane Development Officer by the Regional

Agriculture Research Station, Anakapalli for the year 2002.

Best Organization Award for supporting Quality Circles receivedExcellent Awards at Regional and National Level Competitions.

First Sugar Factory in Andhra Pradesh to be accredited with ISO9001:200 in the year 2003.


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Future Plans

Addition of Extra Neutral Alcohol (E.N.A) facility in the distillery toproduce 45 KLPD ENA.

Additional facility for production of Refined Sugar. Full Plant Automation. Milk Chilling Plant for the benefit of the farmers. Bio-fertilizer Plant.

Implementation of Total Quality Management through various

initiatives in the next few years for achieving Business Excellence. Some

initiatives include International Organization for Standardization (ISO)

14000, Safety, Health, Environment (SHE) and Occupational Health &

Safety Assessment Series (OHSAS), 5 S and KAIZEN.


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Sugar Extraction Process

s

Sugar- A Sweet Business


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Raw Sugarcane Process



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Raw Sugarcane Process



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CHAPTERIV

HR POLICIES ADPTOED IN

PARRYS SUGAR INDUSTRIES


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PARRYS SUGAR INDUSTRIES

HUMAN RESOURCE POLICIES

SANKILI SUGAR FACTORY SRIKAKULAM

PARRYS VALUES & BELIEFS:

HUMILITY:We value intellectual modesty and dislike false pride and

arrogance.

ENTREPRENERUSHIP:We seek opportunitiesthey are every where

TEAMWORK AND RELETAIONSHIPS: Going beyond the individual

encourage boundary less behavior.

DELIVER THE PROMISE:We value a deep sense of responsibility and

self discipline, to meet and surpass on commitments made.

LEARNING:Nurturing active curiosity to a question, share, and improve.

SOCIAL RESPOSIBILITY: Anticipating and meeting relevant and

emerging needs of society.

RESPECT FOR INDIVIDUAL: We will treat others with dignity,sensitivity and honor.

PROBATION POLICY

PURPOSE:

To provide a detailed procedure for conformation after completion

of your Probation period & also to provide joint learning to you as well as

the Organization by sharing ideas, suggestions and observations.

ELIGIBILITY & APPLICABILITY:

Probation is applicable, if you are in the level of M5 S10 & below

(i.e. AGMs & below).


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REVIEW:

You will be on probation for a period of 6 months. Induction

program will be organized to make you familiar with the Organization

culture. On successful completion of the probation period you will be

confirmed in the services of the organization as per the offer letter given

at the time of Appointment.

Your probation can be extended for a period of 3 months, in case of

unsatisfactory performance and if there is a mismatch between roles and

required skills etc.

Note:

Performance of employees in the job Responsibility Level of GM &

Above will be reviewed at the end of 6 months from the date of joining

and based on the performance review; there will be a formal written re-

affirmation of your appointment.

DATA CARD POLICY

PURPOSE:

To provide wireless internet access to you for official purpose whiletravelling on a business trip or on leave, to provide guidelines for the

usage of the data card provided for official purpose.


If you are on regular rolls of the company & in the JRL of M5-S10

& above you are eligible for policy.

POLICY & PROCEDURE

You should submit the form, in a prescribed format, to FMS with

the approval of HOD and inform the BHR. If you are in the JRL of M6-

S11 and below you can avail this facility subject to the approval of

CEO/GCXO through HOD.


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All the bills will be paid directly by you and reimbursement can be

claimed based on the eligibility.

Upper limits of reimbursement for Data Card expenses for India indifferent JRL are given below.

Cost incurred on the replacement of data card in case ofloss/broken will be borne by you and there shall be no

reimbursement for the same.

Head of the department (Not below the level of GM) can improve anexcess amount up to 25% of the eligibility. Any amount exceeding

25% of the eligibility shall require the approval of the respective

CEOs/GCXOs.

If you are travelling on an overseas trip you should apply fortemporary Global data card in a prescribed format with approval of

HOD at least 3 working days prior to the date of journey. FMS

department will be responsible for providing the Global data card

within 2 working days from the receipt of the request.

You should submit the Global data card back to FMS afterreturning from overseas trip. Domestic data card cannot be usedabroad; using domestic data card international roaming will not be

reimbursed.

You have to submit the data card to FMS on separation from thecompany and take clearance on the NOC provided by HR

department without which full & final settlement process will not

be completed.

Lead time for procuring & issuing new domestic data card is 10working days. Lead time for issuing new global data card is 2

working days from the date of receipt of request LEARNING &

DEVELOPMENT.


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INTRODUCTION

GMR Group believes that the employees are the most valuable

resource and will invest significant money, time and attention on

Learning and self-development for all employees to maintain and develop

the high standard of service that employees must deliver.

PURPOSE:

.The purpose of the Learning policy is to:

. Ensure organizational growth through continuous development of its

people.

.Ensure that you have the knowledge & skills to perform in their jobs

effectively now and in the future.

.Enable and encourage you to work to their full potential to support the

organization.

.Encourage each one of you to develop yourselves, to achieve full.

.Potential and to meet the needs of the organization.

.Support you in a time of External and Internal change.

APPLICABILITY:

This policy is applicable to you (including advisors, consultants and

expatriates wherever necessary).

PROCESS OWNER & RASCI:

The process owner for Learning and development policy is Head

CHR Development Group.THE RANGE OF LEARNING AND DEVELOPMENT OPPORTUNITIES

The range of opportunities is mainly classified into Learning and

Development.


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Learning:

It is a process that focuses on the acquisition of knowledge,

sharpening of skills, concepts, rules or changing of attitudes and

behaviors to enhance your performance in the current role.

Development:

Focus of development is long term; it is about preparing people for

future roles. It is linked to career path and succession planning.

.Regular Learning ProgramsIn house and External Programs

.Behavioral Learning

.Business (function related) Learning.

.Technical Learning.

.Development Programs.

.Leadership Development Programme (LDP) for M3/M4.

.Management Development Programme (MDP) for GMs.

.Other Categories.

.Business Driven Programs.

.Mandatory Programs like Values and Beliefs, Emotional Intelligence.

.Certification Programs like HR Operational Excellence.

.Technology of Participation, Train the Trainer.

.E - Learning courses through PARRY Virtual University.

PARTICIPATION

In Learning:

.Each one of you has to undergo a minimum of five days of Learning in

year as per the Learning needs identified for you.


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.Each manday to be covered will include CRTs, E Learning and other

mode of program which would be circulated for the calendar year.

.Engaging in E Learning courses offered by the GMR virtual University

will also be treated as participation in learning programs.

.3 completed courses will be equivalent to 1 man day of Learning.

PERFORMANCE MANAGEMENT PROCESS (PMP)

PURPOSE:

. Continuously monitor and evaluate your performance as a

feedback mechanism.

.Develop your skills through Training & Development programs

.Reward you at different levels based on your performance.

ELIGIBILITY AND APPLICABILITY:

If you have joined on or before 30th September, then you are

eligible for annual PMP.

If you have joined after 30thSept but before 31stMarch, you will begiven annual increment on pro-rata basis considering your performance

as MET EXPECTATIONS.

POLICY & PROCEDURE:

.You will make your goal sheet in line with the AOP through a formal

dialogue with your superior.

.You will be given Training for the goal setting process.

.You shall formalize your goal-sheet duly signed-off by your supervisor

within 45 days from the date of your joining the Organization.

. The performance will be reviewed twice a year, i.e., half yearly &

annual.


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.Half yearly dialogue is a pre-requisite to become eligible for a rating at

EE or FEE in the annual appraisal.

.You will be provided with opportunity to address your performance gaps

which would be identified during PMP. Your performance will be

assessed on a four level rating as shown below.

Rating Scale

FEE- Far Exceeds Expectations.

EE- Exceeds Expectations.

ME- Meets Expectations.

BE*- Below Expectations.

*Individuals rated BE will be on 6 months Performance Improvement

Plan (PIP).

WORK ENVIRONMENT POLICY

PURPOSE:

To create a healthy and secure work environment for you at alltimes in accordance with the technical and social advancement of the

society.


You are covered under this policy (excludes workman at

manufacturing unit).

POLICY & PROCEDURE:

. You will be provided with Workstation, PC, Access Card, ID card,Stationary, extension, etc. based on your Job Responsibility Level (JRL).

. Facilities are provided to you as per set Time Lines and Availability,

depending on JRL.

.You will be having 24/7 network connectivity.


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.You can avail first aid and ambulance facility, in case on any medical

problem.

. Lunch room and cafeteria is there for you, where you can have your

lunch and snacks.

COMMUNICATION AND COORDINATION

PURPOSE:

To establish a process for you to effectively communicate and

coordinate across the group.


You are covered under the communication & process under this

policy.

POLICY & PROCEDURE:

. You will be communicated on business matters for your better

understanding of the organization performance related to business,

competition, business strategies and future plans.

. You will get the communication regarding new policies, OD initiatives,training initiatives, etc.

. You will receive communication about the financial performance of the

company.

. You will be provided with the procedure for grievance resolution.

. Your interpersonal conflicts will be resolved by your HOD, provided you

communicate your problems to him/her.

. You will have different intradepartmental and interdepartmental

meetings.


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GRIEVANCE MANAGEMENT POLICY

PURPOSE:

The objectives of the grievances process will be to settle: Your grievances in the shortest possible time. At the lowest possible management level. With appellate stages so that it is fair, transparent and

reasonable.

SCOPE AND COVERAGE:

.You are covered under this policy if you are in the JRL of M4 & below

including full time advisors and consultants (applicable to all the

business excluding RAXA & Aviation)

.Vice President (M3) & above can take their grievances directly to their

reporting manager.

. Grievance, for the purpose of this policy will mean dissatisfaction

arising out of the decision of the Management concerning the employee.

.Grievance for the purpose of this procedure will only cover individual

grievance such as:

.Payment of Salary.

.Recovery of dues etc.

.Increment/promotion/Performance management Process (PMP).

.Compensation & Benefits*

.Working conditions/Health & Safety.

.Leave/LTA.

.Medical Insurance / facilities/Insurance Premium.

.Non-extension of benefits under rules.


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.Transfer.

.FMS related issues (telephone, mobile, transport, food etc).

.HR Policy administration.

.Income Tax deduction at source.

.Loan administration.

.Reimbursements.

.Interpersonal Conflicts/Issues with the Superior or team members.

.Productivity, work load imbalances and engagement.

.Role fit.

.Separation/Retention.

Note:

. Grievance can be raised within 2 weeks from the date of issue of

an increment/promotion letter.

.The grievance arising out of the following will not be come under

the purview of the grievance procedure.

.Terms of appointment settled prior to joining.

.Matters relating to disciplinary enquiry/action.

.Where the grievance does not relate to an individual employee.

MEDICAL EXPENSE REIMBURSMENT

PURPOSE:

To take care of your health and to assist you regularly to meet

unforeseen expenses that may arise due to medical emergency.


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You are eligible under this policy, if you are not covered under

Employee State Insurance Scheme (Including Probationers).

This policy is also applicable to your family Family membersinclude spouse, dependent children as well as dependent parents,

unmarried or widowed sisters.

POLICY & PROCEDURE:

Annual entitlement of medical expense reimbursement will be as

per your offer letter.

.If you have joined/resigned during the year, the medical reimbursement

will be paid on pro-rata basis.

.Medical bills submitted by you should be of current fiscal year.

.You can consult any registered medical practitioner.

.This scheme covers all medical expenses include the following:

.Medical insurance premium (domestic & overseas). IT Exemption can be

claimed either under Medical Reimbursement or Med claim Insurance

but cannot be claimed under both.

.Medicines, including tonics.

.Dental treatment.

.Ophthalmic treatment, including spectacles & contact lenses.

.Orthopedic appliances.

.Physiotherapy.

.Diagnostic tests.

.Nutritional supplements for adults & children.

.Doctors consultancy charges.

.Homeopathy treatment charges.


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.Ayurvedic treatment charges.

ANNUAL HEALTH CHECKUP

PURPOSE:

To ensure preventive health care for you.


. You are eligible for the annual health checkup at PARRYs specified

hospital as per the age given below:

.Below 45 years: Once in two years @ JRL M5 & above.

.Above 45 years: Once in a year.

.Employees spouse above 50 years of age is also covered under annual

health checkup.

.Medical check-up twice in a year for Drivers, Security Guards, Cooks

and Office Boys.

POLICY & PROCEDURE:

You should contact your business HR department for finalizingdate and time who will in turn arrange the same with hospital Bills for

the above will be settled directly by the Company with the hospital.

FAMILY PENSION THROUGH GROUP INSURANCE SCHEME

PURPOSE:

To extend financial aid to your family in case of natural deaththrough Insurance Coverage.


You are covered under this scheme from the date of your joining

(includes full time Advisors/Consultants, probationers and trainees).


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The Relocation benefits are as under:

. Policy

.Eligibility

.Procedure

.Coordinator

.Temporary stay @ new location

Employees on regular rolls Accommodation will be provided in Co.

guest house for 15 days. In case of non availability of guest house,

accommodation in hotel will be provided as per the eligibility under the

domestic travel policy.

Employees on regular rolls Interest free advance up to a max. of 10

months* actual or 10 months. Her/is actual HRA whichever is lower.

In case of employee opting for tented house on lease basis, where

monthly rent is not payable, maximum of One Lakh Rupees can be

availed as House Deposit Advance.

Employees to produce a proof of the management.

MARRIAGE GIFT

OBJECTIVE:

To congratulate and greet you on your marriage and in turn instill

a feeling of belonging to the company.


You are eligible under this policy.


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POLICY & PROCEDURE:

Gift cheque of Rs. 10000/- (subject to deduction of tax at source) is

given you only if you marrying for the first time.

HR will coordinate with the Accounts Department to arrange for thegift cheque.

HR representative along with HOD will present the gift cheque toyou preferably on the day of marriage.

In the absence of HOD, HR will present the gift to you.

TEAM PICNIC

OBJECTIVE:

To encourage team spirit among the group and create a sense of

belongingness.


You and your family members (Spouse and Children), including

employees on contractual assignments.

POLICY & PROCEDURE:

The Team Picnic will be permitted once in a financial year & there

will be no carry forward or accumulation on this account. The word

Team for the purpose of this policy is defined as follows:

a) Business TeamsLocation wiseb) Plant TeamsLocation wisec) Functional TeamsSector wise and Corporate office

For the outing to be classified as a Picnic a Quorum of at least

90% of the team members (eligible employees) should be involved.


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The company will contribute Rs. 2,500 per employee(including the family members), attending the Picnic and the

total expenses towards the Team Picnic is to be met from this

allocationdepending on the number of people in the Team.

Expenditure over and above the limit will be shared by theteam, in any manner decided by them collectively.

The responsibility for all arrangements lies with the Team.The Team Picnic should be planned in such a way the days

coincide with holidays or weekly offs. Picnic organized with

leave or absence from duty shall not be permitted.

CHILD EDUCATIONAL ASSISTANCE POLICY

PURPOSE:

To provide monetary incentive to you (only JRL A1 and below)

based on the eligibility factor.


If you are on the regular rolls of the company & your take home

salary is below Rs. 10,000/-, (Rupees Ten thousand only) per month i.e,net of all taxes and statutory deductions excluding any recovery towards

loans and advances. The assistance will be given to any two children only

and the support will be extended up-to X in case of syllabus and up-to

class XII in case of central syllabus.

The educational assistance will be given to the children studying

anywhere in India.

POLICY & PROCEDURE:

The company shall reimburse the expenses incurred towards

School Fee, Hostel Fee, Uniform (Maximum three sets), cost of Text

Books, Note Books, Computer learning conducted by the school, if any

each eligible child. A maximum amount of Rs. 6000/- per annum per


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child will be reimbursed towards the above-mentioned expenses and the

same is applicable to not more than TWO children per employee.

EDUCATION REIMBURSEMENT PROGRAM

PURPOSE:

To encourage you to acquire educational qualification for your self-

development.


You are eligible for this policy (A4 & above), on completion of one

year regular service in the company.

POLICY & PROCEDURE:

Eligible Course:

. You can pursue Degree/Master degree/PG diploma/PhD

programs conducted by recognized universities.

.You can enroll yourself in Correspondence Course conducted by

Universities, recognized institutes, including AICTE approved institutes

and all India recognized bodies such as NPC, ICA, ICWA, AIMA, NIPM,ISTD, NITIE, and/or other courses recommended by the business.

Limits of Eligible Expenses:

. On successful completion of the authorized course in first

attempt, you will be reimbursed 90% of enrolment/tuition/examination

fees on production of relevant degree/diploma certificates etc. together

with the fee receipts subject to a maximum of Rs. 50,000 per course.

.Costs of books/regarding material will not be reimbursed exceptwhere it forms a part of the course fee, as in the case of some

correspondence courses.


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Rules & Restrictions:

.Only one course you can enroll at a time under this scheme.

.After enrolling for a recognized educational course, you should submit

the educational reimbursement declaration from to the Business HR withthe approval of HOD. The Educational Expense Declaration Form can be

obtained from your Business HR.

. In case an employee is transferred at the companys instance and

cannot the course due to the transfer, he will be reimbursed 100% of the

expenses incurred by him prior to the date of transfer, on production of

relevant fee receipts subject to the ceiling limit mentioned above. On

cessation of your relationship with the Company within 2 years of

completion of course, the Company will recover the entire amountreimbursed to you.

.On successful completion of the course, you need to submit original fee

receipts and copies of marks sheet along with the claim form to your

Business HR.

.You must ensure that the course timings, including any project work,

etc, should not conflict with your working hours/work requirement.

. You will not get any relaxation on leave rules for the purpose ofpreparation appearing for the examination.

.Completion of the course under the scheme does not make you eligible

for any increment, promotion, etc, merely on the strength of the

additional qualification.


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FESTIVAL BONUS / EX-GRATIA

OBJECTIVE:

To provide guidelines to employees on payment of Ex-gratia/Bonus.


All employees on regular rolls of the company.

POLICY & PROCEDURE:

. All employees will be given Ex-gratia / bonus @ 10% of annual

basic salary and will be paid every year in line with the Payment of

Bonus Act i.e. in the month of November.

. An employee who has left the Company voluntarily during thecourse of the year will be paid Ex-gratia / bonus on pro-rata. However,

the same will not be paid to an employee who has left the Company

including employees who were asked to leave the Company on issues of

non-performance.

PERSONAL LOAN

PURPOSE:

To assist you to meet unforeseen personal expenditure towards

purchase of household goods, emergency medical expenses, children

education and marriage.


You are eligible for personal loan, but only after completion of one

year of regular service in the organization.

POLICY & PROCEDURE:

. Personal loan is sanctioned to you as per the following.

.Employees in Grade M5 & above: 1 month Gross Salary.

.Employees in Grade M6 & below: 2 months Gross Salary.


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Interest rates for the above loan are as follows:

.Employees in Grade M5 & above: 8% per annum (on reducing balance)

recoverable in 18 equated monthly installments.

.Employees in Grade M6 & below: 0% (Interest free) recoverable in 12equated monthly installments.

.You can avail of only one loan, at any time, during the year with the

approval of your HOD.

LEAVE POLICY

PURPOSE:

To provide guidelines to you on leave including Privilege Leave,

Casual Leave, Sick Leave, Maternity Leave, Paternity Leave,

Extraordinary Leave, Leave Without Pay & Compensatory off.


You are covered under this policy (Excludes those covered or

governed by other agreements or settlements).

POLICY & PROCEDURE:

Type of Leave:

.Casual Leave

. Employees on regular rolls. 12 days per year; will lapse at the end of the

year Trainees are only eligible for CL.

.Sick Leave

Employees on regular rolls. 6 days per year; Medical Proof of leaveexceeding 2 days to be submitted by the employees; No limit on

accumulation; Cannot be en-cashed.


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.Privilege Leave

Employees on regular rolls. 24 days per year; Maximum Accumulation is

up to 90 days. (Probationers are not eligible to avail PL during Probation

Period).

.Maternity Leave

Female Employees on regular rolls. 6 weeks before confinement and 6

weeks after confinement Eligibility subject to a minimum of 80 days of

working in 12 months immediately preceding the date of confinement.

.Paternity Leave

Male Employees on regular rolls. 3days on 2 occasions during the

confinement of spouse.

.Extraordinary Leave

Regular Employees Up to 180 days of leave with pay in the entire service,

if there is no other leave in credit, applicable only in case of

extraordinary circumstances like accident while coming to office, Critical

illness, operations etc, which takes time for recovery.

.Leave without pay

.Regular Employees

.A maximum of 90 days leave without pay in a year, in case all types of

leave is exhausted.

.Compensatory Off (C- Off) Employees in JRL A1toA4 Eligible for C-Off, if

you work on weekly off national holiday.

.C-Off shall have to be availed within 2 months following the month in

which it accrued. Else it will lapse.

Note:

Un-availed PL leave will be reimbursed on Basic Salary only at the

time of separation.


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TIME & ATTENDANCE MANAGEMENT POLICY

PURPOSE:

Set guidelines for time and attendance recording in the Group.

APPLICABILITY:

If you are on the regular rolls of the company/subsidiaries/joint

ventures, etc., then you are covered under this policy. The policy will be

implemented progressively at each location depending on installation of

time attendance system.

PROCESS OWNER (S)

CHR/BHR/HOD/IT dept

POLICY & PROCEDURE

.BHR will issue Access card to you (regular employee only) at the

time of their joining.

.In case you lose your Access Card you should intimate BHR & get

a duplicate Access card.

.Grace Period:

Up to 15 minutes after the designated starting time is considered

as grace period. The marking of attendance beyond grace period is

permissible only 4 times in a month and on the fifth instance, half day

casual leave will be debited from your leave account. If there is no causal

leave in your credit, half day of any other type of leave to the credit will

be debited. In case there is no leave available at credit, then your half

day salary will be debited from the monthly salary.

. Recording of Out Station duties:

You are expected to register out station duty like tours, training

etc, either in advance or immediately after resuming the work through

Employee Self Service (ESS) in the PARRYS Portal.


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. Regularization of absence:

If you have not recorded the attendance in the system, it will be

shown as absent. It is your responsibility to regularize the absence with

your HOD.

. Operating/working away from designated place of work:

Head of the Department may permit you (from JRL of M4 and

above) to work from home/away from the designated place of work,

depending upon the circumstances. Such employees can regularize their

attendance through ESS facility in PARRYS portal.

. Working beyond designated time/hours:

In the event of working beyond two hours of the designated closingworking time or when called for duty two hours in advance of the

designated working time, Sub staff/Supporting staff, up to the Job

Responsibility Level (JRL) A1, may be reimbursed the following with the

approval of the immediate supervisor/manager.

.Expenditure incurred by three wheeler to reach office, from the normal

place of residence.

.Expenditure incurred by three wheeler to reach home, from the work

place.

.The reasonable expenditure incurred on refreshments/snacks.

. Facilities for women employees working beyond the normal working

hours:

Women employees, working beyond 2 hrs of closing time, will be

provided with conveyance, with security escort, to the declared place of

residence subject to the approval of immediate supervisor/manager.

This Policy is subject to additions/modifications from time to time

depending on the Business Requirement.


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TALENT REVIEW POLICY

PURPOSE:

.Deliverables of Talent Review.

.The outcome of Talent Review will enable the Group to understand the

.Talent requirement in terms of:

.What it has Develop and Retain

.What it does not have Acquire and/or Develop

.What it does not need Coach/Performance Improvement/ Weed out

Eligibility:

Levels of Talent Review:

The TR will be carried out at the following levels once in a year:

Group Level (GHB)

Project Report HR Policies

Documents