ON “BENCHMARKING ON HR PRACTICES & POLICIES” Submitted in the Partial Fulfillment of PGDBM
Submitted By: UDIT KAMTHANIA ACADEMIC SESSION 2005-07 Under the guidance of: External supervisor
Mr. Devendra Gupta Regional Manager HR, DABUR India Limited
Prof. Poonam Malik IMS Ghaziabad
INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD
DECLARATION I, Udit Kamthania student of Institute Of Management Studies Ghaziabad MBA (20052007) batch, hereby submitting my summer project on the topic.
“BENCHMARKING ON HR PRACTICES & POLICIES.”
Udit Kamthania Roll No. Enrollment No.
ACKNOWLEDGEMENT In my Endeavour to express my corest feeling of the heart towards Dabur India Ltd. words like thank fullness obliged sound hollow. Words fall short at time of need so articulation of my feelings now seems as if Herculean task. The learning experience I have gained from being part of Dabur India Ltd. for this small but enriched duration of two months can be described by,
“Ambition is the way to success Persistence if the vehicle you arrive in” In preparing this project, I would like to special acknowledgement to Mr. Devendra Gupta who suggested me with this project and also want to indebted to the people of Dabur India Ltd. I am truly confident that this project would help me in my career. I have tried my level best to focus and articulate my knowledge. Besides, I would like to thank my parents for their constant cooperation and help. I am also thankful to all the HR personal for the valuable insights provided by them.
Udit Kamthania PGDBM Final Year IMS-Ghaziabad(DC)
OBJECTIVES OF THE STUDY
The objective of the study is to find out the main HR practices & policies of the different leading FMCG’s in India, like Hindustan Liver Ltd. Nestle, ITC & Heinz India Pvt. Ltd. etc. they are not only dominating the Indian market but abroad too. I have collected the valuable information about these companies HR practices & policies.
In the end I am satisfied with my efforts which I make to achieve the objectives of the study.
“Benchmarking is a tool to help you improve your business process. Any business can be benchmarked.” “Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organization anywhere in the world to help your organization improve its performance.
“Benchmarking is simply about making comparisons with other organizations and then learning the lessons that those comparisons throw up.”
“Benchmarking is the continuous process of measuring products, services and practices against the toughest competitors or those companies recognized as industry leaders (best in class).”
For those approaching benchmarking for the first time the plethora of definitions can be confusing, so it can help to focus on the learning and sharing that goes on during the process. The benchmarking is made up of the following steps;
• Identify what is to be benchmarked • Create the goal of the benchmarking process somewhat better
(Quantify), best in class or best in all classes
• Identify comparative companies where these performance levels exist or the function in questions; • Determine data collection method and compare data; • Determine current performance gap; • Project future performance levels; • Communicate benchmark findings and gain acceptance; • Establish functional Goals; • Develop action plans; • Implement specific Excel and monitor progress; • If necessary recalibrate benchmarks. The case benchmarking is a compelling one. When used appropriately, it has proved to be one of the most effective tools for bringing about quantumleaps in performance.
Benchmarking provides: • An effective ‘wake-up call’ and helps to make a strong case for change; • Practical ways in which steps changes in performance can be achieved by learning from others who have already undertaken comparable changes; • The impetus for seeking new ways of doing things and promotes a culture that is receptive to fresh approaches and ideas; and • Opportunities for staff to learn new skills and be involved in the transformation process from the outset.
In the Private Sector In the private sector, the purpose of benchmarking is to gain a competitive edge. A benchmarking approach has become embedded in successful commercial organizations as a means of seeking innovation outside the industry paradigm-a way of keeping at the forefront of the competition. Recent surveys show that benchmarking is the third most used management tool. Benchmarking is also being recognized as a valuable tool for external learning strategies.
In the Public Sector Over recent years, public sector organizations across the world have gradually been turning to benchmarking their public services. It has also been recognized that efficient and effective public services play a vital part in improving private sector competitiveness by reducing the burden on business and compliance costs. Benchmarking is one way of providing the stimulus needed for change in the delivery of both core and non-core activities and for raising the standard of public services by spreading good practices. Encouraging the widespread and systematic use of benchmarking across the public sector can help with improving performance and can assist individual and organizational learning.
Types of Benchmarking Benchmarking is a very versatile tool that can be applied in a variety of ways to meet a range of requirements for improvement. Different terms are used to distinguish the various ways of applying benchmarking. The first word in each term relates to either the type of partner or the purpose of benchmarking. At the outset of benchmarking projects, it is vital to be clear on exactly what is to achieved through benchmarking and apply an appropriate methodology.
Standard benchmarking terms include; 1.
Performance Benchmarking or Competitive Benchmarking
Functional Benchmarking or Generic Benchmarking
Research Methodology A research methodology defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success. It focuses primarily on providing help with the tools and techniques used in the research process. These tools and techniques differ from discipline. Researchers also have specific biases. Some will prefer qualitative over quantitative approaches or vice – versa. Generally speaking, an integrated approach is advisable. A study that contains only qualitative data or solely quantitative data misses the rich texture of interpretation that an integrated approach makes possible.
To fulfill the objective, the research design was as follows: Collection of Primary Data: The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. a. A survey was conducted where from the HR Personals I asked about their views on various aspects of the recruitment & selection procedure. b. The sample size selected for the research was 10 FMCG’s. c. The tool used for the primary data collection was a detailed questionnaire.
The collection of primary data was done in two phases: a. Through individual interviews b. Through telephonic interviews
Collection of secondary data: The secondary data are those, that have already been collected by someone else and which have already been passed through the statistical process. Secondary data was collected through business magazines and from internet.
The research instruments used: 1.
For primary data: A detailed questionnaire to survey the HR departments Structured telephonic interviews
For secondary data: Internet (www.google.com) (www.altavista.com) Business Magazines (Business World) (Business India).
Research Design It is a conceptual structure within which the research is conducted; it comprises of the blueprint for the collection, measurement and analysis of data. The research design of this project in the former part is ‘Exploratory’ while the later part is ‘Conclusive’ i.e. where on the basis of the findings and analysis; suggestions have been given to improve the services in the concerned areas.
Objectives Of Research The objective of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad categories:-I.
To gain familiarity with a phenomenon or to achieve new insights into it.
To portray accurately the characteristics of a particular individual, situation or a group.
To determine the frequency with which something occurs or with which it is associated with something else.
To test a hypothesis of a casual relationship between variables.
POLICIES OF DIFFERENT FMCG’s IN INDIA.
Limitations In face-to-face interviews: The limitations in face to face interviews was that primarily people were hesitant in giving their views apart from this the HR personal did’nt give the answers to few of the questions saying that these things are confidential and we cannot disclose these policies.
In telephonic interviews: The limitations in telephonic interviews was that the interviewee were not very concentrated while responding to the questions, in many cases the respondents were short of time due to which they again could not answer the questions properly.
QUESTIONNAIRE Questionnaire is considered as the heart of a survey operation. So, it should be very carefully constructed. If it is not properly setup, then the survey is bound to fail. A questionnaire consist of a number of questions printed or typed in a definite order on a form or set of forms. The questionnaire is distributed to the respondents who are expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. The method of collecting data by mailing the questionnaires to the respondents is most exclusively employed in various economic and business surveys. Large samples can be made use of and thus the results can be made more dependable and reliable.
Construction of Questionnaire: A detailed questionnaire was prepared keeping in mind the various HR practices & policies of FMCG’s. Another thing that was kept in mind was that since people cannot spare much time to answer the questionnaire, it was made in such a way that even after covering the vast services, yet the questionnaire was short and precise as all the questions barring a couple of them were close ended.
Dabur India Ltd.
Kaushambi Corporate Office Corporate Office DABUR INDIA LTD. Kaushambi Ghaziabad - 201010 Uttar Pradesh, India Tel: +91 (0120) 3982000 (30 Lines) +91 (0120) 3001000 (30 Lines)
Registered Office 8/3, Asaf Ali Road, New Delhi – 110 002 Tel: +91 (011) 23253488
COMPANY PROFILE Founding Thoughts “What is that life worth which cannot bring comfort to others.” The doorstep ‘Daktar’ The story of Dabur began with a small but visionary endeavour by Dr.S.K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague. Soon the news of his medicines traveled and he came to be known as the trusted ‘Daktar’ or Doctor who came up with effective cures. And that is how his venture Dabur got its name – derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic Medicines. Reaching out to a wide mask of people who had no access to proper treatment. Dr. S.K. Burman’s commitment and ceaseless efforts resulted in the company growing from a fledgling medicines manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability. More than a century after Dr. S.K. Burman setup his company with the vision of good health for all, Dabur has grown many fold. It is now a leading nature base health and family care product company.
FOUNDER OF DABUR INDIA LIMITED DR. S. K. BURMAN (1856 - 1907)
NEW PARADIGMS Gearing towards a new system where the direct involvement of the family is limited, the Burmans have formulated a Family Council, which acts as an interface between the family and the Board and management of Dabur. The family members involvement has come in for a qualitative shift, with fresh members being encouraged to develop their own ventures. These proposed ventures are then presented to the Family Council for approval and funding.
DABUR AT A GLANCE Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods company in India with 4th largest turnover of Rs.1329 Crore (FY02)
2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer Health Division (CHD)
3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.
13 ultra-modern manufacturing units spread around the globe
Products marketed in over 50 countries
Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India
CCD, dealing with FMCG Products relating to Personal Care and Health Care
Dabur - The Health Care Brand
Vatika-Personal Care Brand
Anmol- Value for Money Brand
Hajmola- Tasty Digestive Brand
and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100 crore turnover each
Vatika Hair Oil & Shampoo the high growth brand
Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.
Leader in herbal digestives with 90% market share
Hajmola tablets in command with 75% market share of digestive tablets category
Dabur Lal Tail tops baby massage oil market with 35% of total share
CHD (Consumer Health Division) Dealing with classical Ayurvedic medicines
Has more than 250 products sold through prescriptions as well as over the counter
-AsavArishtas -RasRasayanas -Churnas - Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include: -NatureCareIsabgol -Madhuvaani - Trifgol
Vision “Dedicated to the Health & Well-Being of every Household”
PRINCIPLES Ownership This is our Company and we accept personal responsibility and accountability to meet business needs.
Passion for Winning We all are leaders in our area of responsibility with a deep commitment to deliver results. We are determined to be the best at doing what matters the most.
People Development People are our most important asset. We add value through result driven training, While encouraging and rewarding excellence.
Consumer Focus We have superior understanding of consumer needs and develop products to fulfill them.
Team Work We work together on the principle of mutual trust and transparency in a boundary-less organisation.
Innovation Continuous innovation in products and processes is the basis of our success.
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And it has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow. 1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early
Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science.
1930 - Automation and up gradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940
Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India. 1949
Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India. 1957 - Computerisation of operations initiated
1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses. 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet
1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country. 1998 - Burman family hands over management of the company to professionals 2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over 100 years,
Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses. 2001 - Super specialty drugs with the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business
Maintaining global standards As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification
Science for nature Reinforcing its commitment to nature this scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. 2005 - Dabur aquires Balsara 2006 - Dabur announces bonus after 12 years 2006 - Dabur crosses $2 bin market cap, adopts US GAAP. and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal.
Boards of Directors Dabur has an illustrious Board of Directors who is committed to take the company onto newer levels of human endeavour in the service of mankind. The Board comprises of: Chairman
Mr. V.C. Burman
Dr. Anand Burman
Whole Time Directors
Mr. P.D. Narang
Mr. Sunil Duggal
Mr. Pradip Burman
Non Whole Time Promoters, Directors
Mr. Amit Burman
His Highness Maharaja Gaj Singh
Mr. Stuart Purdy
Mr. P N Vijay
Mr. R C Bhargava
STRATEGIC INTENT We intend to significantly accelerate profitable growth. To do this, we will:
Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology
Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science
Provide our consumers with innovative products within easy reach
Build a platform to enable Dabur to become a global ayurvedic leader
Be a professionally managed employer of choice, attracting, developing and retaining quality personnel
Be responsible citizens with a commitment to environmental protection
Provide superior returns, relative to our peer group, to our shareholders
CORE VALUES Ownership: This is our company. We accept personal responsibility, and accountability to meet business needs Passion For Winning: We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most People Development: People are our most important asset. We add value through result driven training, and we encourage & reward excellence Consumer Focus: We have superior understanding of consumer needs and develop products to fulfill them better Team Work: We work together on the principle of mutual trust & transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks Innovation: Continuous innovation in products & processes is the basis of our success Integrity: We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other
WHY DABUR HAS CHANGE ITS LOGO The New Dabur Identity modernizes the 100-year old equity of the Dabur brand by subtly transforming the tree. While it retains the essence of the banyan tree, it now projects a contemporary image, in consonance with today's lifestyle. The tree, a symbol of nature, is indelibly regarded as a provider of shelter, food and protection. On a metaphysical plane, the tree is regarded as sacred, trustworthy and a symbol of fertility. The new Dabur identity retains these enduring and valuable attributes, while it adds a fresh, healthy and holistic dimension to the tree. In the new identity lock-up, distinct elements collaborate to tell a story, even as they work independently to achieve the delineated objectives. The new identity appropriates nature as the wellspring for Dabur. It conveys Dabur's heritage, commitment and stability through the form and colours of the tree; its branches and leaves. It also conveys that the brand stands for wellness across age groups The tree trunk mirrors the form for three people with their arms raised conveying exultation in achievement. The broad trunk represents stability and its multiple branches represent growth. Taken as a whole, the tree appears well rooted, implying stability; and its abundant canopy implies that it can provide amply for those who seek its produce and shade. Further, the entire image, being well proportioned, evokes a harmonious, well-balanced, wholesome and holistic brand.
In India, The tree is a symbol of life. It is a giver of fuel, food and protection. It is a heaven for creatures it generously harbors in its foliage, as well as in the shade of its canopy. The tree is held auspicious as it spreads through the three spheres with its roots meshing through the earth, its trunk rising through the terrestrial world and its branches reaching into the heavens. This symbolism also occurs in cultures across the world. Keeping these vital associations in mind, the tree in the new Dabur identity has been carefully created to communicate Dabur's invaluable 100-year old legacy as well as its future aspirations. It now takes on a younger avatar, in its form and colors, and strikes a rapport with the consumer as a proactive brand with a commitment to wellness and to nurturing an active lifestyle across age groups. The leaf is a vital part of a tree. Its functions include the manufacture of food for the plant, transpiration and respiration. A tree full of leaves represents growth, vitality, rejuvenation and renewal. The new Dabur identity of a tree with a full canopy, bursting with leaves, conveys youth and health. Its foliage captures the spirit of an evergreen tree that constantly replaces its leaves as they age and fall. The new Dabur logo, of a tree that is constantly renewing its leaf cover, thus signifies endurance, power and longevity. The leaves in dual colors reflect the combination of stability and freshness of thinking of the company & brand. The soft orange color selected for the trunk, rather than a dark brown, is redolent of warmth and energy. It suggests a young and youthful tree, thus tactfully breaking down the association of the brand with advanced years. It is a joyful, stimulating color that makes for a high-visual impact, yet does so with a friendly, inviting and soothing stance.
The green colour of the leaves instantly indicates nature's freshness, life and growth. The leaves are neatly divided into two colours: a fresh light green that implies a young leaf, and a darker green that represents an older and mature leaf. By juxtaposing these two colours in each leaf, the brand indicates that it seamlessly blends the old and the new, and also offers a product that is equally suited to the young and elderly. It indicates an ongoing process of growth, evolution and renewal. The Dabur front Dabur’s association with nature is evident in the simple yet unique logo. The Dabur font has been created as an echo of the earlier font to preserve its distinctive and established identity. Yet, it has moved on to a more contemporary style. The tip of the “D” emulates the apex of an aleaf thus infusing the alphabet with a form and flow that discreetly suggests the effect of a leaf. The defined yet gentle curve of “D” forms an arc of trust, caring and support. The identical look Dabur’s association with nature is evident in the simple yet unique logo. The Dabur font has been created as an echo of the earlier font to preserve its distinctive and established identity. Yet, it has moved on to a more contemporary style. The tip of the “D” emulates the apex of an aleaf thus infusing the alphabet with a form and flow that discreetly suggests the effect of a leaf. The defined yet gentle curve of “D” forms an arc of trust, caring and support.
PRODUCTS HEALTH CARE Dabur's Health Care range brings for you a wide selection of herbal products, to provide complete care for varying individual needs. We derive our products from the time-tested heritage of Ayurveda, backed by the most modern scientific test and trials. That ensure unfailing quality and safety in anything you pick. Dabur Health Care Product Range
Hajmola Yumstick -
Shilajit Gold -
Hajmola Mast Masala -
Nature Care -
Sat Isabgol -
Hajmola candy -
Ring Ring -
Hajmola Candy Fun2 -
Itch Care -
Pudin hara -
(Liquid and pearls)
Shankha Pushpi -
Dabur Lal tail-
Pudin hara G -
Dabur Balm -
Dabur Baby olive oil-
Dabur Hingoli -
Sarbyna Strong -
Dabur Janma Ghunti-
PERSONAL CARE Dabur presents its range of herbal personal care products, created to make you look and feel good deep down. Bringing together the gentle touch of nature and Ayurveda’s wisdom. Backed by the unfailing quality of Dabur Products.
Dabur Personal Care Product Range
Amla Hair Oil Amla Lite Hair Oil -
- Anmol Silky Black Shampoo - Vatika Henna Conditioning Shampoo
Vatika Hair Oil -
- Vatika Anti-Dandruff Shampoo
Anmol Sarson Amla -
- Anmol Natural Shine Shampoo
Gulabari Vatika Fairness Face Pack -
- Dabur Red Gel - Dabur Red Toothpaste - Babool Toothpaste - Dabur Lal Dant Manjan - Dabur Binaca Toothbrush
Fo r nearly 100 years, Dabur has specialised in developing and producing herbal Ayurvedic formulations. Today Dabur's Ayurvedic Specialties has over 260 medicines for treating a range of ailments and body conditions from common cold to chronic paralysis. This range is handled by Dabur Ayurvedic Specialties Limited division, which constitutes 8% in Dabur's total revenue of Rs.1899.57 crore.
FOODS Stay healthy, stay fit - and eat only nature’s best. With products from our Foods range that are pure and full of nutrition, taking care of your fitness while providing exciting flavours and tastes to your dishes. Dabur Food range
Tastes like eating a
100% Natural Fruit Juice
Pure natural Honey
Hommade - a range
Lemoneez is a Natural
Capsico - a fiery red-
culinary ingredients giving you 'The taste of Indian Kitchen'.
SWOT ANALYSIS OF DABUR STRENGTHS • A trusted, successful & globally known brand • Old brand recognition • Good R & D department
WEAKNESSES • Less Economies of Scale as compared to other big brands • Poor Advertising of Dabur Nature Care
OPPORTUNITIES • Increasing health consciousness among people • Increasing Market share • Brand Loyalty among people
THREATS • Well-established Competitors • Brands like Colgate, Pepsodent &Close up has • High brand image & Consumer Awareness • MNC’s can be a big threat to our Market share in terms of qualities like: o More Choice o Cheaper Price o More Margin to Distributors & Retailers
HINDUSTAN LEVER LIMITED
Corporate Communications Department Hindustan Lever Limited Hindustan Lever House 165/166, Backbay Reclamation Mumbai - 400020 Maharashtra India. Tel: +91-22-39830000 Fax: +91-22-22871970 Email: [email protected]
Introduction Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HLL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The mission that inspires HLL's 36,000 employees, including about 1,350 managers, is to "add vitality to life". With 35 Power Brands, HLL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HLL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.
MISSION Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.
The Vision Our vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of our operations. We will achieve this through an Integrated Environment Management approach, which focuses on People, Technology and Facilities, supported by Management Commitment as the prime driver.
PAST MILESTONES Over 100 years' link with India Chronology In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HLL in November 1956; HLL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is distributed among about 380,000 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HLL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory represents the largest manufacturing investment in the Himalayan kingdom. The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HLL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HLL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HLL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HLL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HLL acquired the government's remaining stake in Modern Foods. In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products exports.
PRESENT STATURE Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. HLL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India. The mission that inspires HLL's 36,000 employees, including over 1,350 managers, is to "add vitality to life." HLL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HLL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions. HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in close to 80 factories. The operations involve over 2,000 suppliers and associates.
redistribution stockists, directly covers the entire urban population, and about 250 million rural consumers.
HLL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (HLRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. HLL believes that an organisation's worth is also in the service it renders to the community. HLL is focusing on health & hygiene education, women empowerment, and water management. HLL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HLL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. Over the last three years the company has embarked on an ambitious programme, Shakti. The programme now covers about 50,000 villages in 12 states. HLL's vision is to take this programme to 100,000 villages impacting the lives of over a 100 million rural Indians. HLL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 70 million people in approximately 15000 villages of 8 states. The vision is to make a billion Indians feel safe and secure. If Hindustan Lever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.
Home & Personal
• Personal Wash
• Fabric Wash
• Home Care
• Oral Care
• Skin Care
• Hair Care
• Ice Creams
• Deodorants &
• Modern Foods
• Pureit water
• Colour Cosmetics
QUALITY POLICY Hindustan Lever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates. The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence, innovation and quality management across our businesses, and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value. The company recognises that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organisation at all levels. The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them. The company is committed to extend its quality standards to its contract manufacturers, key suppliers and service providers and by entering into alliances with them, to jointly improve the quality of its products and services. This policy is applicable to production from its own facilities as well as to production that is outsourced. The company will periodically review this quality policy for its effectiveness and consistency with business objectives. The company delegates authority and responsibility for dissemination and implementation of this policy to each Business and Unit Head.
Registered Office: ITC Limited, 37 J.L. Nehru Road, Kolkata- 700071 India. Tel: +91-33-22889371
HISTORY ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.
ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 65 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business Division (IBD) for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 7 states covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. The year 2006 witnessed the ramping up of the Company's rural retailing network with 10 'Choupal Saagars' being operational in three states of Madhya Pradesh, Maharashtra and Uttar Pradesh. Nine more 'Choupal Saagars' are in an advanced stage of construction and will be launched shortly. In 2000, ITC's Packaging & Printing business launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In December 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products, to select 'Wills Lifestyle' stores. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week that has gained recognition from buyers and retailers as the single largest B2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. In a short span of 5 years, ITC Infotech has already crossed over US$ 60 million in revenues. It also has a joint venture with ClientLogic, a top five global Business Process Outsourcing (BPO) provider. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In June 2002 ITC entered the confectionery, staples and snack foods segments. In just five
years, the Foods business has grown to a significant size with 100 differentiated products, five distinctive brands, an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, VaxLit, Delite and Aim. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
THE ITC PROFILE ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 13 billion and a turnover of US $ 3.5 billion. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by BusinessWorld, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practises this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to be rated for Corporate Governance by ICRA, an associate of Moody's Investors Service, which accorded it the second highest rating, signifying "a high level of assurance on the quality of corporate governance." ITC employs over 20,000 people at more than 60 locations across India. Ranked among India's most valuable companies by the 'Business Today' magazine, ITC continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,60,090 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."
FOODS ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bangalore. Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 90 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business. The Foods business is today represented in 4 categories in the market. These are: •
Ready To Eat Foods
In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 5 brands: •
Kitchens of India
LIFESTYLE RETAILING Over the last six years, ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Beginning with its initial offering of Wills Sport relaxed wear from the first store at South Extension, New Delhi in July 2000, it has expanded its basket of offerings to the premium consumer with Wills Classic work wear, Wills Clublife evening wear and a tempting range of designer accessories that complete the Look. With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the youth of today. With its brands, ITC aspires to build a dominant presence in the apparel market through a robust portfolio of offerings. ITC's Wills Lifestyle believes in the philosophy of 'Enjoying the Change' - the change
exploring one's own multifacetedness and stretching one's limits. This season, Wills Lifestyle presents a complete fashion wardrobe that complements every facet of your lifestyle - at work, when you're relaxed and while you party.
NESTLÉ INDIA LTD
Nestlé India Ltd.
Nestlé House, Jacaranda Marg M Block, DLF City Phase II Gurgaon 122 002 - Haryana India Phone : +91 124 238 93 00 Fax : +91 124 238 94 11
History: 1866 – 1905 In 1860s HENRI NESTLE, a Pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother’s milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestle’s new formula saved the child’s life, and soon, Farine Lactee Henri Nestle was being sold in much of Europe.
1905 – 1918 In 1905 Nestle merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. I World War created new demand for dairy products in the form of government contracts. By the end of the War, Nestle’s production had more than doubled.
1918 – 1938 After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestle’s management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestle’s first expansion into new products, with chocolate the Company’s second most important activity.
1938 – 1944 Nestle felt the effects of II World War immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company’s newest product, Nescafe, which was a staple drink of the US military. Nestle’s production and sales rose in the wartime economy.
1944 – 1975 The end of World War II was the beginning of a dynamic phase for Nestle. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby’s (1971) and Stouffer’s (1973). Diversification came with a shareholding in L’Oreal in 1974.
1975 – 1981 Nestle’s growth in the developing world partially offset a slowdown in the company’s traditional markets. Nestle made its second venture outside the food industry by acquiring Alcon Laboratories Inc..
1981 – 1996 Nestle divested a number of business 1980/1984. In 1984, Nestle’s improved bottom line allowed the company to launch a new round of acquisitions, the most important being American food giant Carnation.
1996 + The first half of the 1990’s proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002).There were two major acquisitions in North America, both in 2002: in July, Nestle merged its U.S. ice cream business into Dreyers, and in August, a USD 2.6bn acquisition was announced of Chef American Inc..
At a Glance Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2005 were CHF 91 bn, with a net profit of CHF 8 bn. We employ around 250,000 people and have factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.
Business Principles Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business based on sound human values and principles. While our Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices: •
Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained
consumers, and business partners. •
Nestlé does not favor short-term profit at the expense of successful long-term business development.
Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.
Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.
Main Brands Coffee • Nescafé • Taster’s Choice • Ricoré • Ricoffy • Nespresso • Bonka • Zoégas Loumidis
Water • Nestlé Pure Life • Nestlé Aquarel • Perrier • Vittel • Contrex • S.Pellegrino • Acqua Panna • Levissima • Arrowhead • Poland Spring • Deer Park • Ozarka • Hépar • Ice Mountain • Zephyrhills
Other beverages • Nestea, • Nesquik • Nescau • Milo • Carnation • Libby’s • Caro • Nestomalt • Nestlé
Shelf stable Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera, Moça, Klim, Gloria, Svelty, Molico, Nestlé Omega Plus, Bear Brand, CoffeeMate
ChilledNestlé • Sveltesse • La Laitière • La Lechera • Ski • Yoco • Svelty • Molico • LC1 • Chiquitin
Ice cream Nestlé • Antica Gelateria del Corso • Dreyer's/Edy's • Drumstick/Extrême • Maxibon/Tandem • Mega, Mövenpick • Sin Parar/Sem Parar/Non Stop
Infant nutrition • Nan • Lactogen • Beba • Nestogen • Cerelac • Neslac • Nestum • Guigoz • Good Start
HealthCare nutrition • Nutren • Clinutren • Peptamen • Modulen
HEINZ INDIA LIMITED
INTRODUCTION In 1869, HENRY JOHN HEINZ and a friend L. CLARENCE NOBLE launched HEINZ and NOBLE & delivered his products from a horse-drawn delivery wagon, now known as the “HEINZ HITCH.” His Ketchup (first sold in 1876), pickles, jams, jellies and condiments were made of the finest ingredients – picked when fresh, sorted for quality, packed in factories so clean he invented the public factory tour. In 1886, overseas operations were started. In 1920s, Heinz introduced two new product lines: a) Baby Food b) Ready-to-serve Soup In 1978, Heinz acquired –Weight Watchers International, now the largest weight-loss program in the US. In 1990, Heinz U.S.A. introduced the first fully recyclable plastic ketchup bottle. Today Heinz markets more than 5,700 varieties in over 200 countries and territories. Nearly half of company sales come for non U.S. operations, and nearly 70 percent of sales are from products without the Heinz brand name. Brands include Heinz, Weight Watchers, Starkist, Ore-Ida, 9-Lives, The Budget Gourmet, Ken-L ration, Kibbles’n Bits, Orlando, Wattie’s, Olivine, Plasmon, Farley’s and Guloso.
In India Heinz entered in liberalization wave and acquired brands like COMPLAN, FAREX, GLUCON-D to facilitate an easy entry. In India, its Farex brand is growing faster than 30 percent. Heinz launched its brand in Biscuit in Feb.2000 in India. In future, Heinz plans to make an aggressive entry in India its global brand in a phased manner. H. J. Heinz Company is one of the world's premier food companies. Heinz is dedicated to providing superior food products that enhance the lives and well being of people everywhere. Heinz strives to follow the advice of its founder, "To do a common thing uncommonly well brings success."
PURPOSE In order to continue to be one of the world's premier food companies, Heinz has developed these Global Operating Principles which will convey to its employees and to the public Heinz's values and commitments. Heinz respects its employees and these Global Operating Principles are intended to promote the safe and fair treatment of all of its employees. Heinz requires that its operating affiliates protect the environment and respect the cultural, ethnic, religious, political and philosophical differences of people around the world. We recognize that Heinz must be responsible for its Global Operating Principles and will review our performance with a view toward continued progress and improvement.
SCOPE: These Global Operating Principles apply to all of the facilities owned by, and all employees of, Heinz and its affiliates throughout the world. Heinz has also developed a set of guidelines for firms with whom Heinz and its affiliates worldwide have a contractual relationship, including contractors, suppliers of goods and services, co-packers and joint venture partners. These Supplier Guiding Principles are set forth separately in a statement of principles for such business partners.
VISION Our VISION, quite simply, is to be "THE WORLD'S PREMIER FOOD COMPANY, OFFERING NUTRITIOUS, SUPERIOR TASTING FOODS TO PEOPLE EVERYWHERE." Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth. We are well on our way to realizing this Vision but there is more we must do to fully achieve it.
VALUES Our vision will be supported by our VALUES, which define to the world and ourselves who we are and what we stand for. Heinz has a proud tradition of Pure Foods, Quality and Good Stewardship. To help you better understand these values, we are building on the articulation crafted by Heinz Europe, which has successfully incorporated these and other important values under the acronym of PREMIER.
PREMIER VALUES: •
Passion . . . to be passionate about winning and about our brands, products and people, thereby delivering superior value to our shareholders.
Risk Tolerance . . . to create a culture where entrepreneurship and prudent risk taking are encouraged and rewarded.
Excellence . . . to be the best in quality and in everything we do.
Motivation . . . to celebrate success, recognizing and rewarding the achievements of individuals and teams.
Innovation . . . to innovate in everything, from products to processes.
Empowerment . . . to empower our talented people to take the initiative and to do what's right.
Respect . . . to act with integrity and respect towards all.
HEINZ'S RELATIONSHIPS: Consumers The needs, health and well being of our consumers are paramount. Heinz is committed to providing high quality, safe and "pure food" products for all of our consumers, which include our own employees and their families.
Environment We value the environment and are dedicated to protecting it. We recognize the relationship of our food processing operations to the environment, and we aim to be efficient in the use of energy, raw materials, water and packaging.
Partners Our shareholders, customers and business partners expect that Heinz will conduct its operations ethically and responsibly. Heinz and its employees share these values. Heinz insists on honesty and integrity in all aspects of its business and expects the same in its relationships with its business partners. Heinz prohibits any illegal payments to any person, organization or government.
Employees All Heinz employees will be treated fairly and with respect. Heinz is committed to providing a safe and healthful workplace for its employees. Heinz will encourage pride in the workplace and in its products. Heinz employees are required to comply with all applicable laws and regulations and to avoid personal activities and financial interests which could conflict with their commitment to their job.
Communities Heinz believes in being a responsible corporate citizen in the communities in which it and its affiliates operate. Heinz values its contribution to the development of the communities where Heinz has operations.
HEINZ'S COMMITMENTS Heinz-owned factories and facilities will operate in compliance with applicable laws and regulations in every country in which Heinz operates. In countries where specific laws are not well defined, Heinz will implement standards that govern its operations which are consistent with these Global Operating Principles.
Conditions of Employment •
Minimum Age for Employment? Heinz and its affiliates will not knowingly hire anyone under the age of 16. If the local law requires a higher minimum age limit, Heinz will comply with that requirement.
Forced Labor? Heinz will not utilize forced labor or involuntary prison labor.
Abuse and Harassment? Heinz does not tolerate any form of physical or sexual harassment or abuse of its employees.
Equal Employment Opportunity/Diversity? No person or group of people should be made to feel unwanted or unwelcome in a Heinz workplace
because of discrimination
encourages and fosters a diverse global workforce. Heinz believes that people everywhere should be employed and advanced on the basis of their ability to do the job. It is therefore the continuing policy of Heinz to afford equal employment opportunities to all qualified employees and applicants. In accordance with this policy, all personnel decisions, including but not limited to those relating to recruitment, hiring, training, promotion, compensation and benefits, will continue to be made based solely upon an employee's or applicant's qualifications, skills and abilities and without regard to any condition or characteristic that is not job-related. In addition, every Heinz location is required to have a policy prohibiting illegal discrimination, including harassment, and an accompanying set of policies establishing a procedure for reporting and investigating complaints, prohibiting retaliation and providing for appropriate disciplinary action for violations. •
Freedom of Association? Heinz recognizes and respects each employee's right to associate with any legally sanctioned organization. The rights of labor unions must be respected.
Work Hours, Work Week and Payment of Wages? Heinz will comply with all applicable local laws.
Training? Reasonable efforts will be made to provide appropriate job training for every employee.
Promotion? Preference for any promotion opportunities will be given to employees based on merit and performance and other equitable standards.
Communications? Heinz will take appropriate steps to communicate these Global Operating Principles to its employees, including posting these Principles in the local language in an accessible place. All Heinz locations will encourage constructive communications among employees and management? Without fear of reprisal? Regarding issues that impact their jobs or the company in general.
Occupational Health and Safety •
Occupational health and safety must be managed as an integral part of all operational performance.
All Heinz facilities are required to comply with Heinz policies and national and local safety laws.
Each Heinz-owned manufacturing location is required to implement the Heinz Safety Process, and manage by its principles.
Management must measure performance against safety goals that are related to the Heinz Safety Process, and incorporate safety objectives into annual business plans for safety.
Each Heinz-owned manufacturing location must have access to a dedicated and trained safety professional accountable to the location's operational manager and must facilitate the implementation of the Heinz Safety Process.
All Heinz-owned locations will develop the capability to provide occupational health care, whether internally or externally.
Each occupational health care facility will comply with all applicable national or local laws, if more stringent than Heinz Occupational Health requirements.
All internal facilities for occupational health care will be managed and evaluated against the Heinz Occupational Health process.
Occupational health and safety performance will be reported through Heinz's global "Environmental, Health and Safety Report."
Emergency and Crisis Planning •
All Heinz locations and facilities will have in place a plan for handling crises, such as accidents, natural disasters or criminal acts.
All Heinz locations and facilities will have emergency plans for evacuations, spills and natural disasters.
Crisis plans and emergency plans will be well documented and rehearsed and all lists of key personnel and responsibilities will be up to date and accessible.
All emergency signals and plans must be understandable by all employees.
Accuracy of Communications •
Heinz is committed to accurate and truthful communications in its business, including financial reporting.
Products and Services: Heinz’s business is divided into six broad categories: Ketchup, Condiments and Sauces: e.g. celery sauce, pickled cucumbers, sauerkraut, jams, jellies vinegar, pickles. Convenience Meals: Soup, beans and pasta meals. Tuna: Starkist, John West, Petit Navire and Greenseas brands. Frozen Food: Ore-Ida(branded potato processor), Weight Watchers frozen entrees(weight loss program). Infant Foods: Farleys, Farex Pet Foods: 9 lives.
PROCTER & GAMBLE
HISTORY 1993, Procter & Gamble Home Products is incorporated as a 100% subsidiary of The Procter & Gamble Company, USA. Procter & Gamble Home Products launches Ariel Super Soaker. In 1993, Procter & Gamble India divests the Detergents business to Procter & Gamble Home Products. In 1995, Procter & Gamble Home Products enters the Haircare Category with the launch of Pantene Pro-V. In 1997, Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products introduced Tide Detergent Powder - the largest selling detergent in the world. In June 2000, Procter & Gamble Home Products Limited launched Pantene Lively Clean its unique Pro-Vitamin formula cleans oil-build up, dirt and grime in just one wash, delivering lively, free-flowing and sparkling-clean hair. In August 2000, Procter & Gamble Home Products Limited launched New Ariel Power Compact detergent with a new global technology that breathes new life into clothes, by removing dinginess from them and restoring the original colors of the fabric, by detecting and removing deposits which are left behind from successive washes. In November 2000, Procter & Gamble Home Products Limited presented India in the first International Hair Styling and Beauty Expert Contest- Hair
Asia Pacific 2000 in collaboration with Sri Lankan Association of Hairdressers and Beautician. During this period, Procter & Gamble Home Products also re-launched the international range of Head & Shoulders, best-ever Anti-dandruff shampoo with an improved formula, new pack-design and logo, in three variants Clean & Balanced, Smooth & Silky and Refreshing Menthol, which offers the fine combination of anti-dandruff efficacy and hair conditioning. In January 2001, Procter & Gamble Home Products Limited and Whirlpool India Ltd. launched a special 'Ariel - Whirlpool Superwash' offer, making washing machines more affordable to the people of Hyderabad. On purchase of either a 500gms, 1kg or 1.5kg economy pack of New Ariel Power Compact, consumers are automatically eligible to buy a Whirlpool Washing Machine for as low as Rs.238/- in Equal Monthly Installments for 24 months, by filling in the application form that comes with the Ariel pack and contacting any one of the Whirlpool dealers mentioned on the pack. In June 2001, Procter & Gamble in partnership with the Association of Beauty Therapy & Cosmetology (ABTC), India hosted the Pantene Artist 2001 a national stylist competition, which included categories such as Bridal Dressing, Hair Cutting and Body Painting. Present at the event was worldrenowned hairdresser and stylist Jun L. Encarnecion, who demonstrated the hottest international haircuts and styles in vogue via an interesting hairhsow. Mr. Encarnecion has trained students in leading hairdressing schools like Robert Fielding School of Hair Dressing (U.K), Pierre Alexander International Academy (U.K), Vidal Sassoon Academy, (U.S.A) among others and also enjoys the reputation of being the official hairdresser for the 1993 Miss Universe pageant.
In July 2001, Procter & Gamble Home Products Limited launched New Ariel Total Compact with Magicare a New System of Washing that completely removes stains without scrubbing, significantly reducing time spent on washing clothes. In September 2001, Procter & Gamble Home Products launched New Pantene Pro-V range of five shampoos in India which gave consumers the look they want Smooth & Silky for straighter hair, Volume & Fullness for thicker hair, Balanced Clean for shinier hair, Lively Clean for livelier hair and Anti-Dandruff for dandruff-free hair. In April 2002, Procter & Gamble Home Products Limited announced the launch of a special Ariel Bar Refund Offer along with its new Advanced Ariel Compact. Under the Ariel Bar Refund Offer, consumers could exchange their detergent bar on purchase of Advanced Ariel Compacts 1kg and 500gms packs, and avail of a Rs.15 and Rs.7 discount respectively on MRP. In August 2002, Pantene unveiled the launch of the Shine Morning to Night campaign that helps consumers get long lasting hair shine with regular use of Pantene. The Shine Morning to Night campaign had two exciting components to it The MTV Shine Your Soul contest where one could win diamonds worth Rs.12.5 lacs and the launch of the Pantene Shine Booths across the country to help achieve the shine that lasts from morning to night. During the same period, Pantene also hosted Hair Asia Pacific 2002 the biggest Hair Cutting & Styling event in Kuala Lumpur, Malaysia. Pantene Hair Asia Pacific is a prestigious international hair cutting & styling contest attracting expert hairdressers and beauty care advisors from more than 13 Asia Pacific countries.
Additionally, Pantene also hosted Pantene World Teen Queen contest in Goa. Contestants from UK, USA, South Africa, Kenya, Tanzania, Mauritius, Middle East and Hong Kong participated to win the coveted World Teen Queen crown. In January 2003, Procter & Gamble Home Products Limited reduced the prices of Pantene and Head & Shoulders 7.5ml sachets from Rs. 4/- to Rs. 3/-, with no change in its superior product-quality or packaging, improving affordability to a large number of Indian consumers. In June 2003, Procter & Gamble Home Products Limited launched Pampers - world’s number one selling diaper brand with sales of US$ 6 billion annually. Pampers provides superior dryness for uninterrupted overnight sleep, with just one pampers diaper. In India, Pampers Fresh & Dry is available in a variety of three sizes – 4s, 10s and 25s. In July 2003, Procter & Gamble Home Products Limited launched Pantene Long Black, the ultimate solution for achieving the Long and Black hair look, and Head & Shoulders Silky Black - the only shampoo in India to offer the dual benefits of 100% dandruff-free as well as silky black hair. In September 2003, Procter & Gamble Home Products Limited announced that its superior quality Tide sachet is now available at Re. 1 per sachet and its Ariel sachet at Rs. 2 per sachet, thus making the world’s best detergents available at lower prices. In January 2004, Procter & Gamble Home Products Limited announced the launch of Rejoice – Asia’s No. 1 shampoo, in India. Rejoice’s patented Micro-Silicone conditioning technology gives twice as smooth, and easy to
comb hair versus ordinary shampoos, at affordable prices in 100 ml bottles and 7.5 ml sachets. In March 2004, Procter & Gamble Home Products Limited reduced the prices of Ariel and Tide bags (large packs) by 20-50%, while maintaining the superior quality. The superior quality one kg pack of Tide now cleans a family’s one month laundry in just Rs.23/-, while a one kg pack of Ariel cleans a family’s one month laundry in just Rs.50/-. In August 2004, Procter & Gamble Home Products Limited signed Preity Zinta – Bollywood's #1 Actress, as Brand Ambassador for its Head & Shoulders anti-dandruff shampoo that gives 100% dandruff-free soft beautiful hair. In October 2004, Procter & Gamble Home Products Limited launched New Pantene Amino Pro-V Complex shampoos, which makes hair ten times stronger. In November 2004, Procter & Gamble Home Products Limited launched New Tide Bar. The New Tide Bar is unique as compared to the available detergent bars because of its three unique features: (i) It has green speckles called Whiteons, which release a unique whitening action on reacting with sunlight; (ii) Its technology also ensures that it lasts longer, does not dissolve easily and delivers a good balance between bar-hardness and ease of application on clothes and; (iii) It has a lemony & refreshing fragrance that lingers on clothes hours after wash.
OUR PURPOSE We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
OUR VALUES P&G is its people and the values by which we live. We attract and recruit the finest people in the world. We build our organization from within, promoting and rewarding people without regard to any difference unrelated to performance. We act on the conviction that the men and women of Procter & Gamble will always be our most important asset.
Leadership • We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results. • We have a clear vision of where we are going. • We focus our resources to achieve leadership objectives and strategies. • We develop the capability to deliver our strategies and eliminate organizational barriers.
Integrity • We always try to do the right thing. • We are honest and straightforward with each other. • We operate within the letter and spirit of the law. • We uphold the values and principles of P&G in every action and decision. • We are data-based and intellectually honest in advocating proposals, including recognizing risks.
Trust • We respect our P&G colleagues, customers, and consumers, and treat them as we want to be treated. • We have confidence in each other's capabilities and intentions. • We believe that people work best when there is a foundation of trust.
Passion for Winning • We are determined to be the best at doing what matters most. • We have a healthy dissatisfaction with the status quo. • We have a compelling desire to improve and to win in the marketplace.
OUR BRANDS Hair Care
Ariel Front-OMat Ariel 2 Fragrances Tide Detergent
• • • •
Pantene Pro V Head & Shoulders Rejoice Dandruff Control
Baby Care •
CORPORATE / REGISTERED OFFICE: Cavinkare Pvt. Ltd. Cavin Ville, No. 12, Cenotaph Road, Chennai – 600 018 Phone : 044 - 24317550 Fax : 044 - 24362879 Email : [email protected]
PROFILE Every journey begins with the first step. The journey called CavinKare began with a young mind taking the road less taken. In 1983 with a single product offering, CavinKare started out as a small partnership firm. More steps followed and with the innovative Entrepreneur C.K. Ranganathan at the helm, CavinKare emerged into a successful business enterprise. In line with the company’s progressive outlook,Beauty Cosmetics, the earlier name, was rechristened to CavinKare in November 1998. 'Cavin' a literary word in Tamil, symbolizes beauty and grace. The company logo signifies dynamism, modernity, and a positive attitude towards the future the spirit of the people behind the phenomenon called CavinKare. Smart marketing and a clear product positioning ensured CavinKare’s growth from strength to strength, broadening its product portfolio extensively. The company now markets ten major brands. The turnover from all the companies in the CavinKare group touched Rs. 400 crores in 2003-2004. Over the years, CavinKare has achieved significant milestones, and a competitive edge with sound understanding of mass marketing dynamics. The company offers quality hair care, skin care, personal care, food products and home essentials, borne out of a keen understanding of consumer needs. Today, CavinKare has established a firm foothold in the national market. Efforts towards self sufficiency with backward integration has allowed CavinKare, along with its Group Companies manage its own advertising & media buying, product packaging and research and development activities.
CORPORATE VISION "We shall achieve growth by continuously offering unique products and services that would give customers utmost satisfaction and thereby be a role model."
CavinKare is a brand that has taken on the Hindustan Levers and P&Gs of the world and survives impudently to tell the tale. The Chennai-based FMCG company is emerging as a strong contender in the Indian market and is quickly gaining market share in the haircare, personal care and skincare markets. The market share may be small, but it’s growing rapidly, driven by the company’s attempt to differentiate its brand from the competition. The secret of CavinKare’s success online and off seems to be in its aggressive approach to marketing. The website speaks to many different audiences, and promotes itself as a brand that’s enthusiastically ready to meet the needs of its consumers. Like a delighted host, CavinKare divides its attention across audiences and tries its best to be inclusive. There’s something for everyone – from consumers to prospective employees to members of the media. And the site speed is quick, unlike many Indian websites, so site visitors can easily look around without tediously waiting for pages to load.
The site doesn’t shirk from providing information, both on its products and the company. Although CavinKare has justified bragging rights, the brand portrays itself as confident, rather than cocky, when naming its many achievements and detailing its mission. But this information can be considered dry when compared to the exciting promo pieces and ad campaigns seen offline. Along with featuring its products, it supports its brand by offering engaging content. In Tips & FAQs, even those not intrigued by personal care will be pulled into the Q&A formatted page of beauty tips. From making face masks to getting smooth feet – many of the all natural remedies can be made with products kept in the house, which keeps the site from being a pushy online sales pitch. At the same time, this content retains and brings back users for repeat visits. The Contest Zone does this as well by offering rewards for participating the site’s online contests. After registering by coughing out the typical personal information (it’s not noted what it’s used for), users can log in and take part in contests. Although filling out the registration doesn’t promise that once you’re able to login there will even be a contest going on. The site is well thought out, even if at first glance it’s unspectacular in its overall look and feel. It steers away from the high-tech, scream-blast experience and presents a site that has a simple, clean, honest, and uncomplicated feel. Is it too plain and simple? Visitors used to high-tech pages could perceive it as dull, but after quickly navigating through the pages, finding ample information on the company and products, interactive sections, and a spot to get free personal care tips, it’s hard to complain about the experience. In
fact, CavinKare may be a good example of how the web, with its techno pyrotechnics, has dulled our appreciation for the simple and uncomplicated.
VALUES & BELIEFS
Integrity The company values honesty and truthfulness above everything else in all its interactions. Our thoughts, words, and actions shall be the same. We shall try our utmost to fulfill promises and honour commitments.
Fairness The company shall be fair in all its dealings with people inside and outside. We will follow rules, norms, and procedures, not only to the letter, but in spirit as well; we will show common decency in all our dealings with people; we will not exploit undue advantages; and we will respect the rights of others.
Excellence The company values highly all efforts that lead to high standards in everyday work and results. We shall attempt to be the best in class in anything we choose to work on. We shall encourage any individual, or collective effort in promoting excellence.
Innovation The company values innovative thinking, innovative approaches, and innovative solutions in our regular work life. We will always look for better ways of doing things; we will seek new ideas to solve problems; and we will experiment with new concepts, ideas and solutions.
Openness The company believes that openness to new ideas, thoughts and opinions makes relationships stronger and more productive, we shall listen to others; we shall openly discuss among colleagues all that is appropriate; and we shall welcome ideas from everywhere.
Trust The company believes that trust is an important ingredient for effective functioning within the organisation and with the outside world. While we shall protect our legitimate business interests, we would also approach the people, issues and associations with straightforwardness, optimism, and positive outlook.
Stretch The company believes that people have infinite potential. We have an extraordinary capability to exert and extent the limits of the possible. We shall aim for stretch goals, ambitious targets, and ever- receding horizons.
Ownership The company values the individual belief of ownership and accountability. All our employees are an integral part of the company and have a high stake in its well being, as well as in shaping its destiny. Individually and collectively we assume responsibility for all our actions and their consequences.
Speed The company strongly believes that time is an invaluable resource. We shall favour speedy decisions, actions and programs. Within the limits of all our values, we respect speed as a winning ingredient in this fast moving and fast changing world. We shall use speed to slash red tape and complacence.
Customer Delight Our customers and consumers deserve the best deal from us. We shall aim not to just satisfy them but deliver more than their expectations to delight them.
Leadership Our company believes that sustained progress and growth are achieved through leadership characterised by inexhaustible personal energy and exceptional ability to energise others. We shall promote leaders within the ranks who unleash latent energy within the organisation.
Adaptability Our Company believes that flexibility and adaptability are essential conditions to survive and thrive in a chaotic fast moving world. While we hold true to our basic beliefs and values, we shall continuously introspect and reassess the needs for change in the way we do business.
CORPORATE PRACTICES CavinKare's astute professionalism, innovative products, and consistent quality are results of its significant corporate practices. CavinKare is backed by 500 employees who are proficient in their respective fields. The company has a network of 1400 stockists and a distribution system that reaches out to 7 lakh outlets through out the country.
Work Culture The work culture at CavinKare features lots of freedom, immense responsibility and due credits in creating an ambitious and admirable Indian Company. CavinKare provides its employees an atmosphere of easy informality, and an
Communication is encouraged across levels and departments; cross functional teams flourish; the top management to the junior most employees participate in open house sessions; value based management is often a part of the agenda in many meetings; and innovations big and small are applauded. These are the factors that drive the corporate entity called CavinKare.
Human Resources A well thought out HR philosophy anchors all these diverse initiatives and activities. The company believes in grooming its managers for today and tomorrow. A detailed management trainee scheme ensures a reservoir of talent. The core functions of Human Resources Management, such as recruitment, training, and performance management are integrated through a comprehensive competency framework. All these efforts are enabled with the implementation of a world-class HR Information System.
FIELD WORK Field work includes selecting controlling and evaluating the members of the field force. The methods used in the field are very important for field work. The methods are dictated large by the method of collecting data, the sampling requirement and the kinds of information that must be obtained. In this process I have visited the FMCG’s throughout Delhi region and even outside Delhi too. My main mode of conduct was through the questionnaire, this was one of the most complicated and tough job of my research work though I thoroughly enjoyed it.
Findings & Interpretation Through my study on the topic, “Benchmarking on HR Practices & Policies”, conducted at Dabur India Ltd. Corporate Office, Kaushambi, Ghaziabad, under the guidance of Mr. Devendra Gupta, Regional Manager HR, I surveyed several companies, which include top FMCG’s in the Indian market are as, Hindustan Liver Ltd. Nestle India, ITC, Heinz India Ltd. CavinKare, Procter & Gamble etc. I came to following findings & interpretation, which are separated company wise in the following pages; • Dabur India Ltd. • Hindustan Liver Ltd. • ITC • Nestle India • Heinz India ltd. • Procter & Gamble • Cavin Kare
: Dabur India Ltd.
: Dabur India Ltd., Kaushambi, Ghaziabad (UP)
Contact Person Designation
: Mr. Devendra Gupta : Regional Manager HR
Subject: Benchmarking on HR Practices and Policies
Detail: I felt immense pleasure being a part of the esteemed organization like Dabur India Ltd, for duration of two months. I have been associated with Dabur, as a Trainee in HR department, for the fulfillment of the requirement of the Master of Business Administration course. During my tenure in Dabur, I was associated with Mr. Devendra Gupta. Mr. Gupta is working as Regional HR Manager in Dabur, for last 5 yrs. He is a HR expert and has deep understanding of HR practices. He had guided me at each step with his valuable suggestions, provided the best available literature and documentation of HR and helped me a lot in understating the real HR practice in practical.
Dabur is a giant in FMCG in India. Company has developed high standard practices in HR, for the betterment of the employee and growth of Business. Company is completely focusing to bring each and every resource of the organization into the main steam of successful business. Hence, all HR policies are employee orientated, which I described below. • Requirement Policy • Compensation Policy • Leave Policy • Exit Policy
Training in Dabur, I get to know about the structure of the HR department of the company, where Executive Vice President of HR is Mr. A. Sudhakar, following is the structure of the HR department;
Executive Vice President HR General Manager HR & IR
Factory HR Heads
Head Talent Management
Manager N & E Region
Manager S & W Region
HR itself controls the recruitment & administration. Company has versatile policy of recruitment, were there is a policy of Internal & External recruitment. Internal recruitment is generally through the transfers and promotions and also through job posting. For External recruitment company has two fixed criteria, either they go for Direct Recruitment or Third Party (Consultant Agencies). For direct recruitment Dabur visits India’s top business schools, like; • Indian Institute of Management (IIM’s) • XLRI Jamshedpur • FMS, Delhi • MDI, Gurgaon • IMT, Ghaziabad According to Mr. Devendra Gupta, for external recruitment through private consultants, the company is charged somewhere around 10% to 15% of CTC, where as for head hunting these consultants charge 25% to 30% of CTC. Company has different kinds of interviews, like, structured & unstructured interview, In-depth interview and Stress Interview etc. Candidate has to go through Group Discussion at the very first step & than the short listed candidates are called for face to face interview, where he/she is interviewed by HR Manager and Head of that particular department for which candidate has applied. Company gives more chance to the freshers but it depends on the level of position candidate is required, if the vacancy is for some senior level than experience holders are given more preference. Mr. Devendra Gupta also shared that, the pressure of filling the vacancies fast and search for the
talents are the major challenges that they face while administering selection procedure hence the consideration that are kept in mind while designing a selection procedure are that the highly talented candidate should be hired and it should be within the agreed lead time. There are few selection tests that are used to asses intelligence, abilities and personality trait, are; • Intelligence Test (which measures the IQ of a candidate) • Aptitude Test (which measures the potential of a candidate to learn a particular task) • Personality Test (which measures the type of personality of a o candidate) • Achievement Test (which measures the performance of the candidate on a particular job) As I asked about the skills, competencies and leadership needed in the organisation, Mr. Gupta told me that an employee should have the ability to motivate & manage the team, he/she should have good interpersonal as well as communication skills, and the most important thing is that the candidate must have the awareness of the latest trends in supply chain management, business intelligence and knowledge management.
: HLL, G.T. Road Etah (UP)
Contact Person Designation
: Mr. N.K. Khare : Manager HR
Subject: Benchmarking on HR Practices and Policies Detail: A very popular adage is, “First impression is the last impression”. And this maxim is 100% applicable for Hindustan Liver Ltd. I got an appointment to see Mr. N.K. Khare at HLL plant in Etah (U.P.) to discuss my questionnaire. I reach there by the time & contacted security person at the gate of the company. He asked my name & than gave me a shock as he welcomed me with my full name & he had adequate information about me & I was surprised to find that he was well aware of my purpose of advent. This was really a beautiful system. How exciting for you if you reach the gate of any company & you find they are expecting you. I enquired this all with the security chief & he gave me a brief idea about their security system. HLL have a very robust security system. They have an inbuilt IT system where everyone has to log the information of the visitors coming to visit them in the plant. This hole information automatically flows to the concern people those are part of the visiting guest & as well as to security department. Hence forth security department have always online
information of all the expected visitors for that day. It was really a nice experience. The security guard at the gate took me to the security chief’s room & I got another experience of the robust security system of HLL. The security chief is able to keep an eye on every nook n corner of the plant through hidden cameras placed at several critical locations in the plant. He gave me the brief overview of the plant, some of the locations were restricted for the outsiders and one can take entry into the plant only with a valid ID card which is supposed to be hanged in the neck during the visit. When I got in they took my instant photograph & instantly provided me an ID card with my photograph, which I was supposed to return at the time of exit from the plant. Finally security guard came and to take me to the Cluster Manager HR Mr. N.K. Khare’s cabin, after a small introduction I started with the help of my questionnaire.
Mr. Khare told me that the HR department of HLL is very well structured & I was told that each HR person is clear about his job profile & responsibilities in the company. Following is the structure of HR department;
Vice President HR General Manager HR Sr. Manager HR Regional Manager
Regional Manager Unit HR
HR has a great role to design the strategy & actions to enable the HR to deliver the business requirement. These strategies & actions are as follows; • Optimal utilization of HR • Training & development • Performance oriented culture They are also practicing a measurement method i.e. Dash Board Instrument (Score Card) to measure & scale employee contribution in the company growth. According to Mr. Khare, HR is responsible to improve the weakest or employee by imparting the training & implementing the best available methodologies & technology or by amending the policies & procedures. Referring to recruitment procedure in detail, he told me about the openness of the company as it has policy of recruitment through internal and external resources, company believes in young talent & always gives the opportunity to freshers as they are full of enthusiasm, dedication and hardworking & full of new ideas. To seek the highly qualified, target oriented professional company has contacts with several private placement agencies as source of external recruitment. Against these services placement agencies charge 12% of the annual salary of the employee from the company.
Mr. Khare also told me that in their organization Immediate Superiors evaluate the performance of the employee. They also have Family Friendly Polices, which are as; • Get together • Family Functions • Retirement Function • In House Magzines • Tours Further in my discussion Mr. Khare told me that in present scenario employees are very much concerned about his/her personal growth & it is very difficult for an organization to retain them. According to Mr. Khare the key elements of winning employee retention strategy are; • Compensation • Job Satisfaction • Recognition
: ITC Ltd.
: ITC Ltd. Bhilwada Bhawan, Friends Colony, New Delhi
Contact Person Designation
: Mr. Vinod Kumar : Assistant Manager HR
Subject: Benchmarking on HR Practices and Policies
Detail: During my visit to ITC Ltd., I got the opportunity to meet Mr. Vinod Kumar, who is working as an Assistant HR Manager in the company for the last 5(+) years.
Mr. Kumar has given me a broad overview of HR department & its hierarchical structure, which is as follows;
Vice President HR General Manager HR Business Manager HR
Central Officer HR
Branch Manager HR
Mr. Kumar had also shared the strategic goals of the company as follows; • To increase the volume of the business • Cost efficient production • Highly hygienic & competitive environment
Company has also decided the strategy & action plans to achieve these strategic goals. The action plan for the HR department to deliver the business requirement, are; • Optimal utilization of HR • Man power reduction through mechanization, and, • Training & development of the employees. For the successful implementation of action plans, to achieve the targets & to calibrate the involvement of each employee HR has decided to analyze each employee contribution in the business. In response of the understanding of recruitment & selection procedure Mr. Kumar had given the brief idea. The recruitment & selection procedure is administered by the head office along with HR department at plant level. Referring to recruitment procedure in detail, he told me about the openness of the company as it has policy of recruitment through internal and external resources, company believes in young talent & always gives the opportunity to freshers as they are full of enthusiasm, dedication, hardworking & full of new ideas. To seek the highly qualified, target oriented professional company has contacts with several private placement agencies as source of external recruitment. HR sends their request for competencies area & experience
required where these companies provide the eligible candidates and does the selection formalities before finally hiring the candidates. Against these services placement agencies charge 12% of the annual salary of the employee from the company. Administration department has several challenges in selection procedure like lack of potential & capable person, unavailability of the right person for the right job & poor IQ level of candidates. Company has strong rules & regulations to hire the services of any eligible candidate. Candidate has to go through several rounds of interviews, like, technical interview by the expert team, personal interview by HR and interview by the functional head etc. Once the candidate declared selected has to fill several forms to complete the statutory requirements like PF, ESI, Insurance etc. Now the new joinee has to go through a complete medical check up at contracted nursing home under the control of experienced doctors. Mr. Kumar who deals with the recruitment said that the current recruitment and selection procedure of the company is adequate enough to get the right kind of manpower.
: Nestle India
: Nestle India Nestle House, DLF City, Ph-2, Gurgaon
Contact Person Designation
: Mr. Anurag Patnayak : HR Executive
Subject: Benchmarking on HR Practices and Policies
Detail: The third company that I targeted for my project work was Nestle India. I met Mr. Anurag Patnayak working as HR Executive. Mr. Anurag Patnayak serving the company for the last 2years led me to understand best practices in HR department within Nestle. Mr. Anurag showed me the HR manuals, books of practices & also had provided the best of his knowledge about the HR functioning & polices, like recruitment & selection, retention, training & development.
HR itself controls the recruitment & administration. The structure of HR department of Nestle India is as follows;
Vice President HR General Manager HR Sr. Manager HR Regional Manager
Company has versatile policy of recruitment, were there is a policy of Internal & External recruitment. Internal recruitment is generally through the transfers or promotions. Promotion policies of the company are very standard and fixed; there are certain criteria’s to measure the performance of the employees for promotion & annual increment. An employee who is eligible for the promotion should have to qualify any of the following conditions; • Outstanding Performance • Very good appraisal for the consecutive two years • Finally on urgent demand For External recruitment company is connected with several renowned placement agencies, these agencies provide the best candidates on the demand against a genuine minimum charges. These companies provide resumes of the candidate after the confirmation from the candidate. They send the intimation along with the date and time of the interview & fix a tally conference for the client & candidate. Company has several SME’s (Subject Matter Expert) who takes the interview & than the short listed candidates are called for the final interview by HR heads & concerned department heads. There is also a policy & structure for grade and designation. A person having the experience of certain years can be selected for particular responsible post, while for the less responsible post a fresher can be selected. Selection procedure is very rigid & designed keeping in mind the market standards & availability of technology. Company is flexible & can mold the policies for the suitable candidates.
The focus of the interviewers is to check the communication skills of the candidate & his analytical power, influential skills & energy levels. They have structured and unstructured pattern of interview. To asses the intelligence and personality trait of the candidate they have an own made standard IQ test. After the selection candidate has to go through a medical test, in case of failure in medical test candidature get cancelled. Otherwise, candidate has to do some formalities on very first day on joining; these formalities include different type of information declaration, understanding of the code of conduct and guidelines of the company culture etc. Nestle has belief that his employees are assets of the company and it can grow up only when its employees are developing themselves upto the market requirement and to keep them upto the market level of competencies company has very strong training & development plans. An employee could have the training on the job or off the job on the basis of recommendation by his immediate senior & after an approval from department head. Mr. Anurag had given a brief introduction of Compensation Policy, Leave Policy & Exit Policy. Like recruitment, company’s exit policy is also robust; a candidate who is leaving the company has to fill an exit form & has to face an exit interview taken by the HR personal which helps them to understand the flows in the policy where they have to improve.
: Heinz India Ltd.
: Heinz India Ltd. Manzoor Garhi, Aligarh (UP)
Contact Person Designation
: Mr. Rajesh Sharma : Manager HR
Subject: Benchmarking on HR Practices and Policies
Detail: My visit to Heinz India Pvt. Ltd. is an experience for life. Heinz is leading FMCG having great popularity in the market. The things that attracted me in were the layout of the factory, greenery around & hygienity at the conveyer. Apart from this the Heinz impressed me when I visited their store, conveyer and various departments in the company plant. They have fully functioned and well arranged storing system for raw material & for final product before dispatching it.
I met Mr. Rajesh Sharma (Assistant Manager HR), working for the last four years in the company. According to Mr. Sharma, Heinz HR department is very well structured & I was told that each HR person is clear about his job profile & responsibilities in the company. Following is the structure of HR department;
Vice President HR Sr. Manager HR
Sr. I & R Administrator Assistant Manager
HR has a great role to design the strategy & actions to enable the HR to deliver the business requirement. These strategies & actions are as follows; • Optimal utilization of HR • Multiscaling, training & development • Manpower reduction through mechanization • Performance oriented culture They are also practicing a measurement method i.e. PMD (Performance Measurement & Development) to measure & scale employee contribution in the company growth. Apart from this they analyse each employee contribution in the business. Hr can identify weakest & strongest areas & employee individually. HR is responsible to improve the weakest or employee by imparting the training & implementing the best available methodologies & technology or by amending the policies & procedures. Organization have some strategic goals, these goals are as follows; • Expansion Plan • To create competitive environment • Maximize the production level Other than resource management HR is focused on expansion plan, so that the company could produce n number of varieties of product. HR believes in highly hygienic and competitive production to succeed in the market. HR has a great role to understand the global market strategies & after molding them as per their requirement & getting the approval from higher authorities to implement in the company.
Referring to recruitment procedure in detail, he told me about the openness of the company as it has policy of recruitment through internal and external resources, company believes in young talent & always gives the opportunity to freshers as they are full of enthusiasm, dedication, hardworking & full of new ideas. To seek the highly qualified, target oriented professional company has contacts with several private placement agencies as source of external recruitment. HR sends their request for competencies area & experience required where these companies provide the eligible candidates and does the selection formalities before finally hiring the candidates. Against these services placement agencies charge 12% of the annual salary of the employee from the company. New joinee has to go through a complete medical check up at contracted nursing home under the control of experienced doctors. Further in my discussion Mr. Sharma told my about the problem that every company is facing, according to him today’s market is very unstable and the competition is very high. Everyone is very much concerned about his/her personal growth & it is very difficult for an organization to retain a highly demanded candidate. HR has modified its policies to attract & motivate the high caliber person, so that they would not leave the organization. To reduce the attrition rate HR at Heinz is looking for personal development of each and every employee, redesigning their career plan, improving their working environment & culture, change policies to make them more employees oriented.
According to Mr. Sharma the key elements of winning employee retention strategy are; • Recreational Facilities • Sports Club • Get together Parties • Career Planning • Competitive Salary Packages • Training
: P&G, A-4, Industrial Area Ph-1, Mayapuri, New Delhi
Contact Person Designation
: Mrs. Shiva : Manager HR
Subject: Benchmarking on HR Practices and Policies
Detail: As I was getting into the thick of the things, with every new visit to different company my interest was developing and I was becoming more & more curious to visit more & more companies. Meeting different market leaders in HR department becomes my objectives, so I continuously worked enthusiastically & dedicatedly. The fourth company that I targeted for my project work was Procter & Gamble, which is one of the well known brands in the market. There I got the opportunity to meet Mrs. Shiva working as Manager HR for more seven years in the company. She provided me with all the information that I needed, except to those information which are confidential and cannot be disclosed to the outsiders.
Mrs. Shiva told that the HR department controls the recruitment & selection procedure. The structure of HR department of P&G is as follows;
General Manager HR Regional Manager HR Assistant Manager
Unit HR Manager
Regional Manager HR Assistant Manager
Branch HR Manager
Company has versatile policy of recruitment, were there is a policy of Internal & External recruitment. Internal recruitment is generally through the transfers or promotions. Where as for External recruitment company is connected with several renowned placement agencies, these agencies provide the best candidates on the demand against genuine minimum charges. These companies provide resumes of the candidate after the confirmation from the candidate. They send the intimation along with the date and time of the interview & fix a tally conference for the client & candidate. They charge about 12% of the annual salary of the candidate from the company. According to Mrs. Shiva they give more preference to experience holders rather than freshers due to their professional attitude. At the time of interview they check the subject knowledge and managerial skills in the candidate. Through and out possible talent judgment so that none of them are left uncovered in any aspect. Since company is invests a large amount on recruitment & selection procedure, time limit is also one of the important aspect that is kept in mind while designing the selection procedure. As I asked about the skills, competencies and leadership needed in the organisation, she pointed out few which are as follows; • Communication Skills • Decision Making • Team Work • Creative Planning for sales related activities for the area to drive volumes, visibility & reach • Should be able to formulate Sales Strategies • Open, assertive & quick at learning new areas
Procter & Gamble has belief that his employees are assets of the company and it can grow up only when its employees are developing themselves upto the market requirement and to keep them upto the market level of competencies company has very strong training & development plans. An employee could have the formal or informal training as well as training on the job or off the job on the basis of recommendation by his immediate senior & after an approval from department head. To reduce the attrition rate HR at P&G is looking for personal development of each and every employee, improving their working environment & culture, training them and reward them at the end of the year for their contribution in the company.
: CavinKare Vikasdeep Building, Laxmi Nagar New Delhi
Contact Person Designation
: Mrs. Savitri Khanna : Manager HR
Subject: Benchmarking on HR Practices and Policies
Detail: My last visit was to the company Cavin Kare, where I got the opportunity to meet Mrs. Savitri Khanna, who is working as Manager HR in the company for the last 7 years. She gave me the brief idea about the company’s HR functioning & polices, like recruitment & selection, retention, training & development. She provided me with all the information that I needed, except to those information which are confidential and cannot be disclosed to the outsiders.
HR itself controls the recruitment & administration. The structure of HR department of CavinKare is as follows;
Vice President HR General Manager HR Regional Manager HR Business Manger HR
Central Manager HR
Cluster Manager HR
In response of the understanding of recruitment & selection procedure Mrs. Khanna had given the brief idea. The recruitment & selection procedure is administered by the head office along with HR department at plant level. Referring to recruitment procedure in detail, he told me about the openness of the company as it has policy of recruitment through internal and external resources, company believes in young talent & always gives the opportunity to freshers as they are full of enthusiasm, dedication, hardworking & full of new ideas. To seek the highly qualified, target oriented professional company has contacts with several private placement agencies as source of external recruitment. HR sends their request for competencies area & experience required where these companies provide the eligible candidates and does the selection formalities before finally hiring the candidates. Against these services placement agencies charge 12% of the annual salary of the employee from the company. Candidate has to go through several rounds of interviews, like, technical interview by the expert team, personal interview by HR and interview by the functional head etc. The focus of the interviewers is to check the communication skills of the candidate & his analytical power, influential skills & energy levels. They have structured and unstructured pattern of interview. Once a candidate is selected he/she has to go through a complete medical check up at contracted nursing home under the control of experienced doctors.
Further continuing the discussion Mrs. Khanna told me that in present scenario everyone is very much concerned about his/her personal growth & it is very difficult for an organization to retain a highly demanded candidate. HR has modified its policies to attract & motivate the high caliber person, so that they would not leave the organization. While talking about the exit policy of the company Mrs. Khanna told me that a candidate who is leaving the company has to fill an exit form & has to face an exit interview taken by the HR personal which helps them to understand the flows in the policy where they have to improve.
LIMITATION Although it has been my endeavor to take all necessary precautions to ensure that the information gathered is authentic and maximum facts are presented the report have a few handicaps: 1) Time: The nature of the report required detailed and meticulous information gathering. In this sense time was a limiting factor and a major constraint to accomplish the given task. Also sometimes the executives were not available and I had a re-schedule my appointments time and again. This caused a lot of pilferage of time and unnecessary of duplication of effort. Also many holidays occurred during the preparation time of this report and access to information limited in this period. 2) Human Error: The feedback provided by the company executives and others approached has been assumed to be correct. But there might have been wrong and biased facts given. The opinion of few cannot be generalized in any manner. The reader has to discount these fallacies with regard to the small scale on which it has been prepared. 3) Non-cooperation: While by and large the people approached were helpful some people were non-cooperative. Also a lot of information was withheld due to its sensitive nature.
BIBLIOGRAPHY Books Human Resource Management – Gary Dessler Human Resource Management – K. Aawathappa
Magazines Business World Business Today
Internet Sites www.dabur.com www.google.com