Anda di halaman 1dari 90

EL

EXECUTIVE SUMMARY
The objective of the study is to analyze the actual recruitment process in BAJAJ
HINDUSTAN LTD. and to evaluate how far these processes confirm to the purposes
underlying the operational aspects of the industry. How far the process is accepted by it?
The study on recruitment highlights the need of recruitment in Bajaj Hindustan ltd.
Human resource is a most valuable asset in the Organization. Profitability of the
Organization depends on its utilization. If their utilization is done properly Organization
will make profit otherwise it will make loss. If a good dancer appointed as a Chief
Executive Officer of a Company, he may not run the business. So right man should be
procured at right place in right time, otherwise their proper utilization may not be done.
To procure right man at right place in right time, some information regarding job and job
doer is highly essential. This information are obtained through Job Analysis, Job
Descriptions, Job Specifications. Bajaj Hindustan ltd. procure manpower in a very
scientific manner. It gets information by use of these important documents like Job
Analysis, Job Descriptions and Job Specifications. Without these recruitment may be
unsuccessful.

COMPANY PROFILE
Bajaj Hindusthan Ltd. (BHL), a part of the 'Bajaj Group', is India's Number One sugar and ethanol
manufacturing company, headquartered at Mumbai (Maharashtra), India.
The Company has ten sugar plants, which are all located in the northern Indian state of Uttar
Pradesh (UP): Golagokarannath, Palia Kalan and Khambarkhera (district Lakhimpur Kheri),
Barkhera (district Pilibhit), Kinauni (district Meerut), Gangnauli (district Saharanpur),
Thanabhavan and Budhana (district Muzaffarnagar), Bilai (district Bijnore) and Maqsoodapur
(district Shahjahanpur).These ten plants have an aggregate sugarcane crushing capacity of 96,000
tcd (tonnes crushed per day).
BHL's subsidiary, Bajaj Hindusthan Sugar and Industries Limited (BHSIL), has four sugar plants
across Uttar Pradesh at Pratappur (district Deoria), Rudauli (district Basti), Kundarkhi (district
Gonda) and Utraula (district Balrampur). BHSIL has a total crushing capacity of 40,000 tcd. The
Bajaj Hindusthan Group as a whole, with fourteen manufacturing facilities, has an aggregate
sugarcane crushing capacity of 136,000 tcd. The Group has a distillery capacity to produce
800,000 liters of Alcohol per day.
BHL is Indias largest ethanol producer. It is the pioneer of Indias fuel ethanol programme. BHL
is currently producing 38 million litres of ethanol in a year. In anticipation of emerging market
demand, the Company has increased its ethanol manufacturing capacity to nearly 218 million
litres per year.
BHL generates 430 MW of power from the bagasse produced in its sugar mills. After meeting its
own energy needs, BHL has a surplus of 105 MW. The Company has already begun to supply a
significant part of this surplus power to the UP state grid. BHL has now embarked upon the
3

expansion of its power generation capacity by 450 MW through the setting up of new coal based
power plants of 90 MW each in the vicinity of 5 of its existing sugar units. These new projects are
expected to be completed within a period of eighteen months at an aggregate project cost of
around Rs. 23 billion.
Besides this, through a Consortium, the Company, in a major diversification move, has also
embarked on developing a mega thermal power project in UP which will produce 1,980
megawatts of power, ready for commissioning in around 5 years.
BHLs wholly owned subsidiary, Bajaj Eco-tec Products Limited (BEPL), produces environmentfriendly Medium Density Fibre Boards (MDF) and Particle Boards (PB), both from its bagasse
waste. Both MDF and PB are invaluable substitutes for wood in construction and furnishing. The
manufacturing of MDF and PB has been a trail-blazing venture in India. It will protect and
preserve Indias forests from commercial exploitation by the construction and furniture industries.
A 50,000 cubic metre MDF plant saves one lakh mature trees from being cut down in a year.
BEPL is among the very few units in the world to manufacture MDF and PB that is completely
wood-free. Its three Units, put together, turns out 210,000 cubic metres of MDF and Particle
Boards in a year. This will prevent the felling of an estimated 420,000 fully matured trees
annually.
BHL recorded a net profit of Rs.1,546 million and annual turnover of Rs. 17,807 million for the
year October 1, 2008 - September 30, 2009.

Bajaj Hindusthan Limited (BHL) was incorporated on 23rd November, 1931 under the name The Hindusthan Sugar Mills Limited - on the initiative of Jamnalal Bajaj - a businessman,
confidante, disciple and adopted son of Mahatma Gandhi. He sought Gandhiji's blessings in this
new venture, which, apart from being a sound commercial proposition would also meet a national
need. Till then, there were barely thirty sugar factories in the country. The site selected for the first
plant was at Golagokarannath, district Lakhimpur Kheri in the Terai region of Uttar Pradesh (UP),
an area rich in sugar cane. The original crushing capacity of the factory was 400 tons of cane per
day (tcd). Subsequently, this capacity was increased in stages and is currently 13,000 tcd. The
distillery Unit at this plant commenced production during the end of World War II in 1944. In the
initial few years, the major output was in the form of power alcohol as an additive to petrol, which
was the in short supply. The unit was the first to supply alcohol-mixed petrol to the army.

YEAR
1931 -

EVENTS
The Company was incorporated in 1931 at Mumbai. The Companymanufacture
sugar and its allied products and cement.

1968 -

In December, 48,000 `A' Pref. shares offered for public subscription and 24,000
right equity shares offered at par in the proportion 1:6.

1969 -

84,000 bonus equity shares issued in the proportion 1:3.

1972 -

84,000 bonus equity shares issued in the proportion 1:3.

1980 -

The Cement factory at Udaipur started production from 26th March.

1982 -

1985 -

1, 12,000 bonus equity shares issued in prop. 1:3.

A sugar factory with 1,250 tonnes capacity per annum commenced operation at
Sampornanagar in the cane supply zone of Gola Palia sugar factories. Due to the
Government's policy of importing sugar from foreign countries, free market prices
remained subdued.

- A stack reclaimer for uniform feeding of timertone and 2 diesels sets of 4 MW each were
installed during the year. It was proposed to instal a X-Ray analyser and programmable logic
controller (PLC) for computerised quality control of cement.

- In order to meet part of the power requirements, additional diesel sets of total 10 MW capacity
was proposed to be installed.

- 1,12,000 bonus equity shares issued in prop. 1:4.

1986 -

Government increased proportion of free sugar from 45% to 50%.

- The operations of Distillery unit continued to be affected due to heavy duties levied by
Government.

1987 -

The working of cement unit was adversely affectd due to depressed price
realisation owing to over-supply of cement coupled with steep increase in the cost
of various inputs.

1988 -

The name of the Company was changed from Hindustan Sugar Mills Ltd. to Bajaj
Hindustan Ltd. on 27th June.

1989 -

The working of the Cement Division was not satisfactory due to all round increase
in input costs.

- During September/October, the company issued on rights basis 10,00,000-14% secured


redeemable non-convertible debentures of Rs 100 each in proportion 9 debentures : 5 equity
shares. All were taken up.

1990 -

The working of the cement division suffered due to delay in stabilisation of the
production process and labour problem.

- Construction Boards Ltd., is a subsidiary of the company.

1991 -

With effect from 1st April, Sharda Sugar & Industries Ltd. (SSIL) was
amalgamated with the Company. As per the terms of the scheme 1,46,246 equity
shares of Rs 10 each of the Company were allotted without payment in cash to
members of SSIL in the Ratio of 2 equity sharers of the Company for every 5
shares held in SSIL. This allotment was made in early 1991.

- Plant operations were completely suspended from 26th May to 18 th June 1991, and from 14th
December, 1991 to the end of January 1992.

- The Company proposed to dispose of the cement unit in view ofliquidity crunch and to
rationalise the operations of the Company. The Company entered into Agreement for sale of its
current plant to S. K. Udaipur Udyog Ltd. (a company promoted By Straw Products Ltd.) for Rs
147.50 crores.

- As per the terms of agreement 1,46,246 No. of equity shares were allotted as fully paid-up to the
erstwhile shareholders of SSIL.

- The Company held the entire share capital of 15,010 equity shares of Rs 100 each (Rs. 85 paidup) and 15 equity shares of Rs100 each fully paid-up of Construction Boards, Ltd.

- In October/November, the Company issued 28,73,000 - 12.5% fully convertible debentures of


Rs 40 each at par to the equity shareholders on rights basis in the proportion of 1 debenture : 2
equity shares held.

- The Company issued 14,25,000-14% non-convertible debentures of Rs 100 each at par to the
shareholders on rights basis in the proportion of 1 debenture : 4 equity shares held.

- Another 71,250-14% non-convertible debentures were issued to the employees of the company.

- Only 2,809 debentures were taken up. The remaining 14,93,441 debentures devolved on the
underwriters.

- The Company had on 23rd December, allotted 14,96,250 Secured Redeemable Non Convertible
Debentures of Rs. 100/- each aggregating to Rs. 14,96,25,000 and 29,86,600 Fully Convertible
Debentures of Rs. 40/- each for an aggregate amount of Rs.11,94,64,000.

1992 -

Production of industrial alcohol was lower at 150 lakh litres and 142 lakh litres
respectively due to the partial control on molasses imposed by the U. P.
Government.

- 526 shallow borings were installed and 135 pump sets distributed, resulting in additional
increase of 5260 acres under irrigation.

- 21 India Mark II hand pumps were installed with assistance from CAPART and the Jamnalal
Bajaj Foundation making safe drinking water facilities available to about 6300 villagers.

- 90 ordinary hand pumps were installed on 50% subsidy to benefit about 900 villagers.

- Company was the first to set up a full-scale Primary Effluent Treatment Plant way back in 1960.

- The Company has since installed a full-scape Primary and Secondary Treatment Plants based on
separately treating sugar factory's effluent with significant results.

1993 -

The Company has signed the Agreement for Sale (Memorandum of


Understanding) on 10th June, and is likely to handover the possession of the
Cement Plant.

1994 -

Production of industrial alcohol continued to decline to 65 lakh litres and 38 lakh


litres respectively due to the unfavourable policies of the government.

1995 -

29,86,600 equity shares issued on conversion of 12.5% fully convertible debenture


of Rs 40 each of which 28,73,000 shares and 1,13,600 shares now allotted to the
shareholders and employees respectively.

- The Company has received a Letter of Intent from Central Government for installation of a new
sugar plant at Shardanagar, Lakshimpur, Dist. Kheri, U.P. with a capacity of 2500 TCD.

1996 -

The Company Installed one No. Falling Film Evaporator body of 3000 sq.m.
heating surface to work as second body of D E V C to result in steam economy at
evaporator station.

- The Company Installed one No. Evaporator body of 1600 sq.m. heating surface and
configuration of evaporator is made such that the plant can run continuously without periodical
shut-downs for cleaning.

1997 -

The project of up gradation of the boiler and power stations at Palia has been
commissioned in February.

- Indian Institute of Sugarcane Research also established collaborative varietal selection trials at
Company's research farm to identify appropriate varieties developed by them for cultivation in the
area.

10

- Company's research-cum-demonstration farm bagged 2nd highest sugarcane yield prize in the
State with 189 Ton yield/Ha.

- During the year, the free market sugar price constantly remained under pressure due to heavy
sugar stocks which have also resulted in higher burden of interest on the Company.

- Necessary modifications in the system have been done and energy efficient Condensors have
been installed for economy in use of energy.

- Multistage Turbo Generator Set of 3 MW have been installed.

- Installation of One No. 120 tons per strike capacity pan for 'C' massecuite boiling was
commissioned.

1998 -

Dumping of sugar by countries like Pakistan, Brazil and a few others at cheaper
rates have affected the domestic industry.

- Launched the Minikit scheme under which 200 saplings of early varieties were given to farmers
for multiplying their own seed for next crop planting.

- The company treated 704 tonnes of sugarcane seed by Moist Hot Air Method and distributed
5643 Danti and Palkati and installed 1350 borrings and subsidised 290 D/Engines under irrigation
scheme to cover about 5000 Ha area.

11

- One Dynamic Steam swept Semikestner rising film evaporator body of 3000 mw H.S. has been
installed to improve evaporation in the Double effect and Quad system.

- One new low head centre steam entry design pan of 120 ton strike capacity is commissioned.
Two Nos. Continuous Centrifugal have also been added.

1999 -

During the year its Golagokarannath plant started crushing on November 22, 1998,
and achieved installed capacity of 9000 TCD, while its Paliakalan plant started
crushing on November 30, 1998, with an installed capacity of 7000 TCD.

- The Gola and Palia units have introduced the early and high sugarcane varieties as available to
the extent of 20% and 10% respectively.

- The Company has entered into an Agreement with National Securities Depository Limited
(`NSDL') to enable investors to hold and trade in Company's shares in electronic form with Effect
from 15.2.1999.

- During the year heavy floods occurred in Gola and Palia areas affecting about 30,000 dwellers.

- During the year Company also joined hands with Family Planning Association of India wherein
a Project office is opened at Gola with necessary infrastructure.

- Biomethanation plant of 750 M3 capacity per day has been installed and commissioned to treat
the spent wash of the distillery. 2002

12

-Bajaj group increases its stake by acquiring 9.5% stake from UTI for Rs 7.9 crore

-Bachhraj & Co. Pvt. Ltd. has acquired 4,50,000 shares amounting to 5.153% and the
shareholding after acquisition is 34,69,625 shares amounting to 39.730%. Jamnalal Sons Pvt. Ltd.
has acquired 4,21,559 shares amounting to 4.827% and the shareholding after acquisition is
5,19,359 shares amounting to 5.946%. The combined total (for promoter group as a whole) are
holding 8,71,559 shares amounting to 9.980% and the shareholding after acquisition is 39,88,984
shares amounting to 45.677%. The mode of acquistion is through off-market purchases on August
19, 2002

2003 -

Bajaj Hindusthan Ltd has informed that the Board of Directors of the Company at
its meeting held on June 19, 2003 re-appointed Shri. Shishir Bajaj as a Managing
Director for a period of 5 years w.e.f. July 1, 2003.

-Acquires 5,000-tcd plant of Monnet Sugar in UP

-First unit to crush 20 million quintals of cane during the drought year 2002-03

-Achieved record profit of Rs. 283.51 million in FY 2003

2004 -

Overtakes Balrampur Chini Mills to become the most profitable sugar company in
the country

-Bajaj Hindustan ties up term loans worth Rs 400 cr with SBI.

13

-Bajaj Hindustan to acquire 24 UP sugar mills

-New 7,000 TCD plant near Meerut commenced operations in November 2004

2005 -

Bajaj Hindusthan raises US$ 100 mn through GDRs & FCCBs

-Bajaj Hindusthan acquires Pratappur Sugar & Industries

-Bajaj Hindusthan commissions three new sugar plants

2006 -

Bajaj Hindusthan sets up 100% subsidiary to manufacture Medium Density Fibre


and Particle Boards

-Bajaj Hindusthan's achieves 180% increases in Net Profit

-Bajaj Hindusthan raises US $ 255.604 mn through GDRs and FCCBs

2007 -

Bajaj Hindusthan Ltd has Appointed Mr. Kushagra Bajaj as Joint Managing
Director of the Company for a period of 5 years w.e.f. April 24, 2007.

-Bajaj Hindusthan Ltd has appointed Mr. Kausik Adhikari, Asst. Company Secretary as
Compliance Officer of the Company with effect from August 01, 2007.

14

2008 -

2009 -

Bajaj Hind to enter infrastructure sector

Bajaj Hindusthan Ltd has informed that the Board of Directors of the Company at
its meeting held on March 12, 2009, has appointed Dr. Sanjeev Kumar, as a
Whole-time Director on the Board of the Company with effect from March 12,
2009.

15

MANAGEMENT
Name
Shishir Bajaj
D S Mehta
R V Ruia
Alok Krishna Agarwal
Kushagra Bajaj
M L Apte
D K Shukla
Sanjeev Kumar

Designation
Chairman and Managing director
Non Executive Director
Non.Exe.Independent Director
Non.Exe.Independent Director
Joint Managing Director
Non.Exe.Independent Director
Non.Exe.Independent Director
Director

16

BAJAJ SUGAR MILLS GROUP


Location Details - Bajaj Hindusthan Location Type Address Factory/plant Sugar Mills
Meerut District Uttar Pradesh - India
Internet : N.A. Registered Office Bajaj Bhawan, 2nd Floor, Jamnalal Bajaj Marg, 226 Nariman
Point
Mumbai - 400021
Maharashtra - India
Phone : 22049056
Fax : 22048681
Email : investor.complaints@bajajhindusthan.com
Internet : N.A. Executive Office Distillery & Sugar Plant

Lakhimpur Kheri - 0
Uttar Pradesh - India
Internet : N.A. Factory/plant Distillery & Sugar Mills ,

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Factory/plant Sugar Mills Thane Bhawan

17

Muzaffarnagar Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills

Muzaffarnagar Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills

Bijnor Uttar Pradesh - India


Email : N.A.
Internet : N.A. Executive Office Distillery & Sugar Plant Golagokarannath

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Factory/plant Distillery & Sugar Mills , Palia Kalan

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Factory/plant Sugar Mills Kinauni

18

Meerut District Uttar Pradesh - India


Phone :
Email : N.A.
Internet : N.A. Factory/plant Sugar Mills Budhana

Muzaffarnagar Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills Bilai

Bijnor Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Barkhera,

Pilibhit Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Distillery & Sugar Plant Gangnauli

19

Saharanpur Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar & Distillery Mills Kinauni

Meerut District Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Distillery & Sugar Plant Golagokarannath

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Factory/plant Distillery: Palia Kalan

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Factory/plant Khambarkhera

Lakhimpur Kheri Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Maqsudpur

20

Shahjahanpur Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar & Distillery Mills: Kinauni

Meerut District Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills & Co-Generation: Thane Bhawan

Muzaffarnagar Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills & Co-Generation: Budhana

Muzaffarnagar Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills & Co-Generation: Bilai

Bijnor Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills: Barkhera

21

Pilibhit Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Distillery, Sugar Plant & Co-Generation: Gangnauli

Saharanpur Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills & Distillery: Khambarkhera

Lakhimpur Kheri Uttar Pradesh - India


Email : N.A.
Internet : N.A. Factory/plant Sugar Mills, Distillery & Co-Generation: Palia Kalan

Lakhimpur Kheri - 0
Uttar Pradesh - India
Email : N.A.
Internet : N.A. Registered Office Bajaj Bhawan, 2nd Floor, Jamnalal Bajaj Marg, 226 Nariman
Point

22

Mumbai - 400021
Maharashtra - India
Phone : 22049056
Fax : 22048681
Email : investor.complaints@bajajhindusthan.com
Internet : N.A.

23

FINANCIAL RESULTS
The summarised financial results of the Company for the year ended September 30, 2009 are
presented below:

2008-09

Sales and other income

2007-08

(Rs.million)

(Rs.million)

18,148.94

18,028.72

Profit before interest,


Depreciation and Taxation

5,952.94

2,185.44

Interest (Net)

1,870.77

1,394.44

Depreciation

2,022.13

1,872.21

Profit/(Loss) before taxation

2,060.04

(1,081.21)

Provision for taxation


(including Fringe Benefit Tax)

6.60

13.80

Provision for deferred tax (Net)

491.07

(618.17)

Profit/(Loss) after tax

1,562.37

(476.84)
24

Disposable surplus after


adjustments

1,609.82

164.53

Transfer to general reserve

400.00

Transfer to debenture
redemption reserve

275.00

Proposed dividend

123.80

84.84

Corporate Dividend Tax on


Proposed Dividend

21.04

14.42

Balance carried to balance sheet

789.98

65.27

On a stand-alone basis the Company achieved a turnover of Rs. 18,148.94 million as compared to
Rs. 18,028.72 million in the previous year. The Profit after tax stood at Rs. 1,562.37 million as
compared to the loss of Rs. 476.84 million on the previous year. On consolidated basis, the
turnover is Rs. 23,335.19 million as compared to Rs. 21,202.60 million in the previous year. The
profit after tax and minority interest is Rs.617.84 million compared to a loss after tax and minority
interest of Rs. 1,574.22 million in the previous year.

25

FINANCE STATUS OF BAJAJ HINDUSTAN


134.75

2.05 (1.54%)

Open
High
Low
Prev. Close

133.50
135.45
133.50
132.70

Price
Quantity
134.70 2.00 (1.51%)
Open
High
Low
Prev. Close

Vol
52 Week
52 Week

Bid

Offer

134.75
182.00

134.90
50.00

133.80
135.35
133.50
132.70
Bid
134.65
120

Price
Quantity

126181
242.90
98.80

Vol
52 Week
52 Week

460830
242.75
98.00
Offer
134.75
80

Historic Prices of Bajaj Hind

BSE

NSE

Price
Gain / Loss

1 week
131.55
2.43%

2 week
124.70
8.06%

1 month
113.50
18.72%

3 month
116.85
15.32%

26

6 month
137.65
-2.11%

9 month
223.00
-39.57%

1 year
184.30
-26.89%

India is a major source of sugar and sugarcane. The sugar industry of India is the second biggest
manufacturer of sugar after Brazil. At present more than 5million hectare of land is allocated for
sugarcane cultivation with a productivity of 69 tones on each hectare.
Over the past few years, the Indian sugar industry is giving sleepless nights to the common man
by increasing the domestic prices to a great extent. The price rise has attained new heights due to
supply scarcity. The consumption demand of sugar in India is around 23 m tones while the
production

is

less

than

16

tones

year.

2010 Budget Sugar Industry Expectations are the decontrolling of the sugar industry by the
government in terms of costs and tariff allocation, re- establishing sugar trading measures,
abolition of release order device, improving productivity by introducing improved technology,
revitalization of financially unwell units via disinvestments, tax exemption till another 5 years and
promotion of ethanol. The sugar industry expects the administration to include the ethanol
schemes under section 80-IA of the IT Act. The industry also expects tax relief as well expansion
of the income tax advantages to the ethanol schemes.
World Renewal Spiritual Trust, a unit of Brahma Kumaris in Mysore.
It contributed substantially and also participated actively in social activities and seminars, among
them noted a one healthy lifestyles by Dr. Premasand from Mount Abu.
It participated in a chess tournament organized for raising funds for Tsunami relief with the help
of employees contribution.
It conducted Cricket and Football tournaments in Babbal, Rankhandi, Bhaila and other villages

27

RISK REVIEW
There are 12 types of risks, which can occur in the company at any time. These are:
1)

Climatic Risk

2)

Raw Material Risk

3)

Regulatory Risk

4)

Competition Risk

5)

Liquidity Risk

6)

Realization risk

7)

Costs Risk

8)

Funding Risk

9)

Default Risk

10)

Cyclicatic Risk

11)

Technology Obsolescence Risk

12)

Foreign Competition Risk

1) CLIMATIC RISK:
Cane is monsoon dependent and monsoon failure could lead to a decline in cane availability.
Risk Mitigation:
The companys units are situated in locations that enjoy abundant rain fall reinforced by
adequate irrigation facilities. High degree of irrigation in the western UP areas, where the
companys three units are located, substantially insulates the cane crop from a monsoon failure.
The sugar units in the western UP are situated in the Doab, considered as one of the best regions
in India for cane cultivation, due to a fertile soil and adequate canal irrigation.

28

2) RAW MATERIAL RISK:


Cane is the main raw material for a sugar mill. Lower cane realizations may force farmers to
shift to other crops.
Risk Mitigation:
Cane is a rewarding crop over other cash crops. Further, cane prices announced by the central
and state governments ensure a reasonable return. The sugar mills help the growers to increase
yield and propagate premium verities, contributing to additional farmer income.

3) REGULATORY RISK:
The Sugar industry is influenced by the governments sugar policy. Populist measures may
influence profitability.
Risk Mitigation:
The government has been pragmatic of late with respect of sugar policies. During the Last two
years, when production was low, the government allows the import of raw sugar under an advance
license with corresponding export obligations. This ensured that the immediate demands were met
and the exports could then take place from subsequent surplus stocks. There are currently only
few restrictions on the sugar industry, most important being the fixation of the cane price by the
government. Lately the sugar mills in western UP are paying a cane price higher then the
government recommended price and hence, this risk is only minimal.

4) COMPITITION RISK:
An increasing number of sugar mills in the companys vicinity could increase the war for cane
and effect utilization and growth.
Risk Mitigation:

29

The companies have taken the following initiatives to ensure an adequate supply of required cane
from its command areas.
Maintaing strong farmer relations through timely payments.
Active involvement in cane development to increase cane yield and quality.
Reduce the diversion of cane for the manufacture of alternative sweeteners.

5) LIQIDITY RISK:
The company requires ready funds to meet working capital requirements. A lack of funds could
lead to a loss of raw material while a high cost could result in loss in profitability.
Risk Mitigation:
The company enjoys an excellent relationship with its bankers and has been able to mobilize its
working capital at competitive rates. The company also uses foreign currency loans and shortterm instruments like commercial paper to reduce overall cost. The company is rated A1+
(signifying highest safety) by ICRA with respect to short term loans, permitting is to access cheap
funds.

6) REALISATION RISK:
Any decline in sugar realizations could affect the Companys performance.
Risk Mitigation:
The sugar units of the company are located in the vicinity of sugar deficit areas, like Delhi,
Haryana, Punjab and Rajasthan. As a result, it is able to earn relatively higher realizations.
Further, the sugar units produce substantial large crystal sugar brands its output, maximizing
realizations.

30

To insulate against advance realizations, the company commissioned a large cogeneration


capacity and has plans to set up a distillery, which are counter-cyclical to the sugar industry cycle
leading to stable earnings.

7) COSTS RISK:
An inefficient fiscal control may threaten margins and profitability, especially during an industry
downturn.
Risk Mitigation:
The company employs strict internal and budgetary controls adequately supported with an
effective management information system to keep costs low. The company has a centralized
procurement cell to meet the Requirements of all its sugar units; it is able to source large volumes
at the Best terms.

8) FUNDING RISK:
The company may not be able to complete its ongoing projects on schedule in the absence of
adequate financial resources.

Risk mitigation:
The company maximizes the equity contribution for its expansion. Its gearing of less then one
allows it to borrow prudently and maximize the mobilization of low cost borrowing from the
sugar development fund.

9) DEFAULT RISK:

31

The company provides customized solutions in its engineering business. Any default in
receivables could skew its financial structure.
Risk Mitigation;
The company mitigates its risk through the following measures:

Appraisal of customer liquidity, both before initiating a contractual relationship with them and
also at different stages during the project.

Arranging timely receipts, both in terms of the advance at the initiation of the contract and at
various stages during the course of the project.

In the case of default, the company, after forfeiting the advance, can reengineer the Product
and supply it to another buyer after making suitable changes.

10) CYCLICATIC RISK:


As the turbine and gear divisions derive a higher share of their revenues from industries like
paper, sugar, steel and pharmaceuticals, a down turn in more than one can affect profitability.

Risk Mitigation:
The turbine and gear divisions supply their products to diversified sectors such as sugar,
cogeneration, independent power plants, paper and steel etc.Which mitigate the risk of cyclicality.
Further, there is an endeavor to enhance the product range with a view to enlarge the market size.
There is a focus to maximize the sourcing of profitable business from the supply of spares,
servicing, retro fitment and maintenance.

11) TECHNOLOGY OBSOLESCENCE RISK:


In a precision cum heavy engineering business, a company has to be quick to respond to
technology changes. Any delay could lead to a loss in market share.
32

Risk mitigation:
The companys divisions are technology-conscious. Constant R&D initiatives, in house product
development, extensive training programmes coupled with technology absorption from foreign
partners has made it possible for the company to upgrade its products. There is a system of
benchmarking product efficiencies with the best global standards.

12) FOREIGN COMPETITION RISK:


A number of international entrants could enhance competition.
Risk Mitigation:
The company enjoys established brand equity in the domestic and international markets in terms
of superior products and servicing, technology and refurbishment solutions, which will enable it
to withstand competition. The turbine division faces competition from imported products and yet
has maintained its market share at around 70 per cent. The company is focused on servicing
customer in innovative and efficient ways at a reasonable cost leading to prompt and reliable
services.

TECHNOLOGYS
TECHNOLOGIES IN SUGAR DIVISION:

Continuous Vacuum Pan

Syrup Clarifier System

Short Retention Clarifier

Continuous vacuum Pan

33

Developed by Bajaj SRI Limited, a wholly owned subsidiary, in association with Sugar
Research International (SRI) of Mackay, Australia, the CVC was installed in the Deoband sugar
factory for usage on C massecuite, the first time an SRI pan was installed for C massecuite in a
sulphitation plant.
SRI is one of the sugar machinery technology authorities in the world; its subsidiary, Bajaj
SRI Limited, has an exclusive license in India from SRI International for many of their products.
Owing to technical improvements made on the CVP, Bajaj and SRI are now eligible to jointly
own the intellectual property for this new improved vacuum pan. Company has in the past
presented these details in a paper jointly presented with SRI at a convention of the International
Society for Sugar Sugarcane Technology.

34

Syrup Clarifier System:


Installed at the Deoband and Muzaffarnagar sugar plants to improve the quality of sugar,
this licensed product from SRI has been sold to EID parry in Tamil Nadu, where it is working
efficiently.

Short retention Clarifier:


To be installed in 2005-06 at the Muzaffarnagar unit and at the new plant, the clarification
of juice is achieved in only 30 minutes while in a normal clarifier juice is retained for
approximately 150 minutes. This prevents the inversion of sugar and also leads to an improved
sugar recovery and quality.

Mill-Tandem:
Designed and manufactured by the company (captive technology), installed in companys
sugar plants. The mill-tandem has proved to be one of the most efficient in India: reflected in the
reduction in Bagasse losses and increase in reduced mills extraction (RME); RME for the unit is
96 while that of the industry is around 95; bagasse loss in the unit is 1.6 compared to 1.9 for the
rest of the industry; strong design feature ensures a negligible downtime. Bajaj has set up over 65
sugar plants and supplied over 300 cane mills to sugar factories in India and overseas.

TECHNOLOGIES IN TURBINE BUSINESS GROUP:


The business of turbines is perhaps more sophisticated then most other technology led
business on the grounds that it combines precision engineering with manufacturing. The
companys most impressive accomplishment was the completion of an R & D project where in the
services of impact technologies (USA) and consulting professors from the Indian Institute of
35

Science, the Indian Institute of technology and the university of De Mont fort (UK) were utilized.
The result was the successful development of highly efficient low pressure twisted and tapered
blades. The company already has received orders for turbine incorporating these blades. The
company also developed new efficient turbine designs up to 22 MW.

TECHNOLOGIES IN GEAR DIVISION:


The company was selected by Lufkin France to execute a drafting and hi-end designing
assignment, which enhanced its high end design credibility. Due to pioneering engineering skills,
the company has established its reputation as a major player in the retro fitment segment for high
speed gears. As a result, it derives nearly 30 % of its revenue from this line of business, growing
its knowledge capability due to a continuous exposure to diverse technologies.

TECHNOLOGIES IN WATER BUSINESS GROUP:


Over the years, company has brought advance technologies to the Indian market through
close relationships with several business groups of US Filter Inc.:

Everex for conventional treatment equipment (license agreement since 1987).

Ion pure for continuous electro de-ionizing (CEDI) equipment.

Memcor for Membrane Bio-Reactor (MBR) and micro filtration membrane solutions and
equipment.

Process water system for process engineering and support.

The company expects to revolutionize Indias water and waste water treatment segments
through the introduction of various technologies relevant to the current / evolving market
needs, particularly the following:

36

CEDI Technology
Relevance: Indias water treatment business in the power sector
Source: Ion Pure (US Filter)
Replacing: Conventional de-mineralization based on resin.
Advantages:

Absence of chemical additives

Safe for human handling

Use of a tenth of the conventional space

Reduced boiler blow downs

Four year pay back

Membrane technology micro filtration


Relevance: Indias wastewater treatment business in recycle / reuse segment.
Source: Memcor (US Filter)
Replacing: Conventional Clarifier and aerobic biological treatment
Advantages:

Barrier filtration technology that cans rationalize coli form content in polluted

water to less then safe limits making the water conducive for marine life.

Enhanced post- treatment water quality or downstream cities down to only 3-4

ppm BOD.

Zero discharge and the absence of additives to treat the water, minimizing side

effects.

Lower space requirement (a quarter of the normal plant size) and a 40 % power

cost saving over the conventional system.

37

Minimal civic disruption; more then 70 % of value addition done in the

workshop.

Automated with minimal human interface.

The net segment revenue provided here in is prior to the inter unit adjustments and further other
include operations of the agri centers up to October 25, 2005; following this date, the business
was carried out by a wholly owned subsidiary.

Sugar Division:
This division accounted for a gross turnover of Rs 8.13 bn, 78 per cent of the companys revenue
in 2004-05.the revenue break - up in respect of its major products is given below:

World Sugar Consumption Projection (1000 tonnes, raw value):


Country

2005

2010

2015

EU
Russia
Europe
Africa
U.S.A.
N & C America
Brazil
South America
China
India
Asia/Pacific
TOTAL

18080
6860
32122
13842
8959
19221
10395
18161
12500
19250
63204
149549

18612
7942
33976
15989
8969
20462
11379
18669
14143
22470
71516
160709

19117
8866
35685
18114
8949
21760
12383
20254
16553
25188
80187
176163

38

39

Domestic Sugar Balance


Company has been fairly accurate in its sugar production forecasts (with reference to data given
the annual reports of the last two years) usually made in May, well before the monsoons. Looking
ahead, company has made a five-year nationwide production, consumption and inventory
forecast.

Comparison Between Bajaj Estimates And Actual Sugar Production (mn


tones):
Details

2002-03

2003-04

2004-05

2005-06

Company Estimate

19.05

13.6

13.0

18.0

Actual Production

20.1

13.6

13.0

18.2

The key determinant of average sugar prices over a year is the stock ratio (stock in the
country compared to consumption), which is also the basis on which the International Sugar
Organization, Sugar Journal F.O.Licht and global sugar trading houses draw out their estimates.
Some factors used by company in arriving at the estimated stock levels comprise the following:

Even as industry estimates have opening stocks as on October 1, 2004 that vary from 6.9 mn

tones to 7.5 mn tones, the Government is using a figure of between 8.2 mn and 8.5 mn tones. If
we take the Government figure, than internal consumption in 2003-04 will be even lower than
17.7 mn tones, which does not seem sustainable as the industry and Government have agreed on
the consumption figure of 16.80 mn tones in 2001-02 as their bases.
With low sugar prices in 2002-03 and 2003-04 as well as the impact of rising population
and prosperity, it would be reasonable to assume that sugar consumption increased by around 0.6
mn tones per year during the period.
40

According to Government estimates, the consumption of sugar is estimated to grow by


CAGR of 3 per cent. In the current sugar season up to March 31 st, 2005, 1.4 mn tones of raw
sugar had been imported. Taking into account the existing contracts for raw sugar imports and
future contracts, Company forecasts that a further 0.6 mn tones of raw sugar will arrive in the
country before September 30, 2005.

While it is difficult to accurately predict sugar production before the onset of the monsoons, as

in the past, Company have collected data on the existing area under sugarcane in different parts of
the country, and after making a prediction on sugarcane drawal rates based on expected
competition from alternate sweeteners, arrived at subsequent years production. Sugar production
for 2006-2007 has taken into account new crushing capacity, which will come on a stream and
the closure of sum unviable ones.

By the end of the 2006-2007 season, around 2.0 mn tones of raw sugar will have been

imported (as per Government policy, tolled white sugar will need to be exported within 24/36
months from the date of imports). It will only be possible for these exports commitments to be
completed by 2007-2008.

With closing stock as a proportion of consumption under 30 per cent up September 2007, we

expect sugar prices to keep pace with inflation and the inevitable rise in sugarcane cost during the
next three years, enabling current margins to be preserved.

Company has not factored an increase in disposable incomes, which, if it transpires, will

strengthen Indian average consumption for 2004-05 (17.82kg / year) towards the European
(39.34kg / year) and North American (37.24 kg / year) averages.

41

Production, Consumption and Stock Past, Present and Future (mn tones):
Details

2003-04

2004-05

2005-06

2006-07

Opening Stock
Production
Imports/ raw sugar processed
Total Available
Internal Consumption
Exports
Closing Stocks
Closing per cent (of domestic

11.6
13.6
0.5
25.7
17.7
0.2
7.8
43.6

7.8
12.9
2.0
22.7
18.2

4.5
18.0
1.5
24.0
18.8
0.4
4.8
25.0

4.8
22.0

4.5
24.7

26.8
19.4
1.6
5.8
27.6

consumption and exports)


Sugar price trends

Process of Sugar Production:


The whole sugar production is started from the procurement of raw material. Main raw
material is sugarcane. Sugarcane is purchased by the company through sugarcane society where
farmer sale their sugar for the production of sugar. Sugarcane has emerged as one of the most
attractive crops in the country today mainly because unlike other crops, farmers are assured of a
statutorily enforced minimum price by the government (as opposed to a minimum support
price).so, the government, both central and state level, plays a critical role in the fortunes of
Indias sugar industry. As a result, the central and state governments announce the price of
sugarcane. The purchase price of sugarcane declared annually by the central government is
referred to as the statutory minimum price (SMP). In 2005-06, the SMP declared by the
government was Rs.795 per metric tonnes for an average recovery of 9.0 per cent plus Rs. 8.8 for
every 0.1 per cent increase in recovery. The Sap, which is a fixed price by all Utter Pradesh sugar
factories, was announced at rs.1150 per metric tnnoes for the sugar year of 2005-06.at the time of
purchase of sugarcane financial department make the purchase journal voucher which have all the
detail about the purchase of sugarcane. A fixed commission is to be given to the society agents by
the company.

42

Purchase journal vouchers have detail about the rate of sugarcane; quantity of sugarcane
purchased etc. And according to the quality and quality of the sugarcane and according to the
government price company give the payment to the cane cooperative society and then society give
the payment to the farmers. Company does not give the payment directly to the cane cooperative
society rather then it all the payment of sugarcane is given by bank to the cane cooperative society
and then society gives the payment to the farmers.
At that time companys finance department prepare the payment vouchers and bank
vouchers. In Bank voucher department have to give all the details about the procurement of the
sugarcane how much cane and what type of cane is procured by the company. At this time
company have to give the projection of their project to the Bank and according to that projection
bank give the money to the company on Pledge.Then according to that pledged money Bank give
the payment to the cane comparative society according to the details and cane cooperative society
gives the payment to the farmers according to their cane quantity and quality.
Bank voucher has three types of accounts on the basis of requirement of bank and the
company.

BANK VOUCHER:

Cash credit

Bank overdraft account

Current account

43

CASH CREDIT ACCOUNT:


In this cash credit account company have to give the projection of whole project to Bank
before starting the project and after starting the project and after starting the project company have
to give the actual production or actual progress to the bank. Bank gives the money to the company
on the basis of pledge of the company if company is not new. If company is new then Bank
provide the loan or money according to the working capital of company. It is known as DEMAND
LOAN. In cash credit bank has two type of limits.
1. Fund base Limit
2. Non-fund Base Limit
Fund base limit as Loan and Non-Fund base limit as Bank guarantee.

BANK OVERDRAFT ACCOUNT:


In bank overdraft account, bank gives a limit of money according to the money, which is already
in the account of the company and time limit also for deposit that overdraft money. In this limit
Company can take the money according to that overdraft limit. In this overdraft Account
Company can take money from the Bank even there is no money in their original account
according to that limit. This limit is known as SUB LIMIT. After the duration of Time Limit
Company has to give the some money so that Bank can extend the time limit for further
transaction. At this time Bank is treated as the Receiver.

FEATURES OF RECRUITMENT IN BAJAJ HINDUSTAN

(i)

Recruitment is a process or a series of activities rather than a single act or event.


(ii) Recruitment is a linking activity as it brings together those with jobs
(employer) and those seeking jobs (prospective employees).

44

(iii) Recruitment is a positive function as it seeks to develop a pool of eligible persons


from which most suitable ones can be selected.
(iv) The basic purpose of recruitment is to locate the sources of people required to meet
job requirements and attracting such people to offer them for employment in the
organization.
(v) Recruitment is an important function as it makes it possible to acquire the number
and type of persons necessary for the continued functioning of the organization.
Careful recruitment of employees is particularly important in Religare
because the chances of mismatching the job and the person are greater. Due to
widespread unemployment the job seeker tends to accept any job irrespective of
his suitability.
(vi) Recruitments a pervasive function as Religare engages in recruiting activity. But
the volume and nature of recruitment varies with the size, nature and environment
of Religare.

FACTORS AFFECTING RECRUITMENT

Internal Factor

Company's Pay Package

Quality of Work life

Organizational Culture
45

Career planning and Growth

Company's Size

Company's Products/Services

Geographical Spread of the Company's Operations

Company's growth Rate

Role of Trade Unions

Company's Name and Fame

46

SOURCES OF RECRUITMENT IN BAJAJ HINDUSTAN

The sources of recruitment are broadly divided into Internal Sources and External Sources.

Internal Sources are the sources within organizational pursuits.

External sources are the sources outside organizational pursuits.

Internal Sources: Internal sources includes the following:

1. Transfer
Transfer involves the shifting of an employee from one job to another. At the time of transfer it is
ensure that the employee to be transfer to the new job is capable of performing it .Infect transfer
does not involve any drastic change in the responsibility and status of the employee.

2. Promotion
A promotion is the transfer of employee to a job that pays more money and some preferred
status. It involves re-assignment of an employee to a position having higher pay increase
responsibilities, more privileges, increase benefits and greater potential. The purpose of
promotion is to provide a vacancy, which is worth more to the organization. Then the employee
present position, if a higher vacant position is given to an employee who deserves it. It stimulates
all employee of the organization. The employees can be informing such a vacancy by internal
advertisement.

47

External Sources Of recruitment

All the organization have to depend upon the external sources of the recruitment at one time to the
another. There are many different external of recruitment out of which the most commonly use
sources are as follows;

48

1. Advertisement
Advertising job openings in newspapers, magazines, newsletters and other media sources is a
relatively inexpensive recruiting mechanism. Advertising is useful for filling open position
quickly. Advertising usually does not target a specific audience. Specified deemed
advertisements will attract qualified applicants, dissuade unqualified ones from applying and
make the recruitment process more efficient. Most of the superior positions in the industry are
filled by this method.

2. University or Institute Campus


Direct recruitment from educational institutions is often a strategic approach adopted by
organizations with position openings at the entry level or internal training programs. Recruiting at
the college level serves as a major source for acquiring managerial, professional and technical
skills. he gap that exists between the skills that organizations will need over the next several years
and those currently possessed by potential employees is growing. The number of jobs requiring a
college degree is on the increase. Unfortunately for the organization it is a very time consuming
and expensive exercise.
But pressures from the external environment will continue to force organizations to be highly
visible and active in this kind of recruiting. n college recruiting the organization sends an
employee usually called a recruiter, to a campus interview candidates and describes the
organization to them. Coinciding with the visit, brochures and other literature about the
organization are often distributed. The organization also runs ads to attract the candidates. In the
typical procedure, those seeking employment register at the college placement service. This
placement service is a labor market exchange providing opportunities for students and employers
to meet and discuss potential hiring. Preliminary interview with employers is done. Students are

49

given detailed influence about the job and the profile. Salaries are negotiated. The expenses are
borne by the Organization. Many of the changes are designed to reduce overall recruiting costs
while maintaining a strong applicant's flow into the organization. The trend seems to be for an
organization to develop a stronger, ongoing relationship with a relatively select number of schools

3. File of Unsolicited Applications


Many qualified personnel apply for employment to reputed companies on their own initiative.
Such applications are known as unsolicited applications. They serve as a good source of
manpower. This is also a cheaper source of recruitment.

4. Employment exchanges
Employment exchanges provide a nation-wide service for getting the required personnel.
Employment exchanges in India are run by the government. For unskilled, semi-skilled, skilled,
clerical posts etc, it is often used as a source of recruitment.

5. Telecasting
The practice of telecasting of vacant jobs over T.V. is gaining importance these days. Special
programmers like 'Job Watch', 'Youth Pulse', 'Employment News', etc. over the T.V. have become
quite popular in recruitment for various types of jobs.

50

EVALUATION THE RECRUITING METHODS

Given the importance of recruiting to the organization the method used in recruiting should be
evaluated periodically. One of the most important reasons to evaluate recruiting method is to
determine the cost versus benefits of various methods. When recruiting method do not attract
enough applicants many organization's respond by raising the salaries. Although some job
applicants may be enticed by money, this may not be a cost-effective method of recruiting.
Further employees within the organization may perceive inequity if new employees are brought in
at a similar or even higher salary. Recruiting costs include factors such as the cost of advertising,
the salaries and travel expenses of recruiters, travel expenses of potential job applicants and
recruiting agencies. These costs must be weighed against factors such as the potion of acceptance
offers. At a minimum, organizations should compare the length of time applicants from each
recruiting source stay with the organization with the cost of hiring from a particular source. The
effectiveness of recruiting method varies among organizations and even jobs within the same
organization.

51

RECRUITMENT PROCESS IN BAJAJ HINDUSTAN

Recruit Planning: The first stage in the recruitment process is planning. Planning involves the translation of likely
job vacancies and information about the nature of these Jobs into a set of targets that Specify the:
a.) Number of contacts
b.) Type of applicants

Strategy Development
Once it is known how many and what types of recruits are required, serious considerations need to
be given to
1.

'Make' or 'Buy 'employees

2.

Technological sophistication of recruitment and selection devices

3.

Geographic distribution of distribution of labor markets comprising of job seekers

4.

Sources of recruitment

5.

Sequencing the activities in the recruitment process

52

'MAKE' OR 'BUY'
Originations must decide whether to hire less skilled workers and train them or to hire
skilled workers and professionals i.e. buying of skilled labour.

'TECHNOLOGICAL SOPHISTICATION'
This refers to the develop or upgrade the methods used in the training and development of
labour i.e. use of new technology.

'WHERE TO LOOK'
Organizations generally look for skilled and sophisticated labour in the national market and
try and use local labour for unskilled jobs.

'HOW TO LOOK'

An organization has several sources for generating employment 'Internal sources' and
'External sources'

Searching: Once a recruiting plan and strategy are worked out, the search process can begin.
Search involves two steps: a.) Source Activation
b.) Selling.

53

SOURCE ACTIVATION:Typically, sources and search methods are activated by the issuance of an employee regulation.
This means that no actual recruiting takes place until line managers have verified that a vacancy
does exist or will exist. Its result is flood of applications or resumes. The applications received
must be screened. Those who pass have to be invited and contracted for interview. Unsuccessful
applicants must be sent letters of regret.

SCREENING:Screening of applications can be regarded as an integral part of the recruiting process, though
many view it as the first step in the selection process.

54

RECRUITMENT POLICY IN BAJAJ HINDUSTAN


Recruitment policy specifies the objectives of recruitment and provides a framework for the
implementation of the recruitment programme. Recruitment policy of any organization is derived
form the personnel policy of the same organization. In other words the former is a part of the
latter. Such a policy asserts the objectives of the recruitment and provides a framework of
implementation of the recruitment programme in the form of procedure. Recruitment policy may
involve a commitment to broad principle such as filling vacancies with the best quality
individuals. !t may embrace several issue as extent of promotion form with in, attitude of
enterprise in recruiting its old employees, handicaps, minority groups, women employees, part
time employees, friends and relatives of present employees. It may also involve the organization
system to be developing for implementing recruitment program and procedures to be employed.
Therefore, a well considered and pre-planned recruitment policy, based on corporate goals, study
of environment and the corporate needs, may avoid hasty or ill-considered decisions and may go
along way to manage the organization with the right of personnel.

55

A good recruitment policy must contain these elements:

Organization's objectives: Both in the short- term must be taken into consideration as
a basic parameter for recruitment decisions and needs of the personnel- area-wise,
Job-family-wise.

Identification of the recruitment needs: To take decisions regarding the balance of the qualitative dimensions of the recruits i.e.
the recruiters should prepare profiles for each category of workers and accordingly work
out the man specification decide the sections, department or branches where they should
be placed and the particular responsibilities which may be immediately assigned to
them.

Preferred sources of recruitment: Which would be tapped by the organization e.g? for skilled or semi skilled manual
workers. Internal sources and employment exchange preferred, for highly specialized
categories and former, may be utilized.

56

CRITERIA OF SELECTION AND PREFERENCES: These should be based on conscious though and serious decelerations in other,
management may take the unilateral decision. The cost of recruitment policy in its
broadest sense involves a commitment by the employer to such general principles as:

a) To find employ the best qualified person for each job.


b) To retain the best and most promising of those hired.
c) To offer promising opportunities for life time working careers.
d) To provide programs and facilities for personnel growth on the job.

According to Yoder," The recruitment policies is concerned with quantity and qualifications of
manpower". It establishes broad guidelines for the staffing process. Generally the following
factors are involved in a recruitment policy.

a.) To provide individual employees with the maximum of employment security,


avoiding frequent lay-off or list time.
b.) To encourage each employees in the continuing development of his talents and
skills.
c.) To assure each employees of the organization interest in his personal goals and
employment objectives.
d.) To assure each employees of fairness in all employment relationship including
promotions and transfers.
e.) To avoid conflicts which may develop when several members of the same household
or community are employed in the organization?
f)

To encourage one or more strong, effective responsible trade union among the

57

employees.

Pre-requisites of a good recruitment policy: The recruitment policy of an organization must satisfy the following conditions.

a) It should be in conformity with its general person policies.


b) It should be flexible enough to meet the changing needs of an organization.
c) It should be so designed as to ensure employment opportunities for its employees on a long
-term basis so that the goals of the organization should be achievable and it should develop
the potential of employees.
d) It should match the qualities of employees with recruitments of the work for which they are
employed.
e) It should highlight the necessity to establish job analysis.

Thus the nature and extent of the recruitment programme depends on a number of
factors, including the skills required, the state of the labor market, general economic
condition and the image of the employers.

ALTERNATIVES TO RECRUITMENT
Another strategic business decision can be made is not to recruit. Instead they can rely on
alternative staffing options.
Common alternative staffing options

58

D Traditional temporary help


A potential employee is recruited, tested, screened and employed by a temporary staffing
agency.
They assign qualified individuals to work at a clients site, generally to support or
supplement the current work force.
D Long term temporary assignments
It is becoming increasing popular for an organization to staff part of its work force with
temporary workers on an ongoing basis. These individuals are not considered short-term
replacements, but more a part of the regular work force.

D Part time employees


Workers who work less than 40 hours a week are considered part time employees. They
can be organization's pay roll or assigned via a temporary agency.

59

D Employee Leasing
A Company will transfer some of its employees to a leasing firm. The Leasing firm then
leases back the workers to perform the same job they did for the Client Company.
However the leasing firm is now responsible for cost work associated with the typical HR
functions such as Payroll, benefits and record keeping.

D Independent contractors
Independent contractors are self-employed individuals who market a specific skill they
posses to a variety of companies. A Company will hire them for a specific project or
contract. Payment is usually based on the time and effort the individuals put forth on the
project and expenses are frequently reimbursed.

D Outsourcing services
An independent company with expertise area will contract with a firm to take full
responsibility for that specific function in the organization.

60

STEPS IN SELECTION PROCEDURE IN BAJAJ HINDUSTAN LIMITED

Preliminary interview
In many organizations, the selection process, particularly for executive posts, begin with
preliminary interview. The preliminary interview is generally brief and does the job of
eliminating the totally unsuitable candidates. The preliminary interview offers advantage
not only to organization but also to applicants.

Application blank and resumes


The initial screening of potential employees is usually done by examining resumes and 1
having applicants fill out an application blank. Items that should be requested on an
application include general biographical information. Much of information gathered on
application blank5 objective so that the human resources manager can verify it.
Verification of information on application is becoming increasingly important to avoid
claims of negligent hiring. An employer is guilty of negligent hiring if he or she failed to
perform a thorough background check on employee whose infliction of harm could have
been predicted.
Once the application has been verified, it can be numerically scored to make it comparable
others. The process of qualifying an application is called weighting an application. The use
0 weighted application blank involves placing a value or score for the items on the
application that have been found to predict successful job performance. Applicants receive
points according. to the information they report on the form and can then be ranked based
on their total points. Although weighted applicants blanks have been found to be
predictive of future performance, the time and cost of developing an effective are often
61

prohibitive. Resumes are often instead of application blanks. Job applicants develop their
own resumes, which should include essentially standard information.

Scrutiny of application
All applications received have to be scrutinized by the screening committee of personnel
department in order to eliminate those applicants who do not fulfill job requirements. After the
screening of applicants is completed, a list is prepared of the candidates to be called for various
tests or direct interview.

Employment tests
A number of selection or employment tests have been developed to aid the human resources
manager in hiring employees. The following section covers mental ability test, work sample tests,
trainability tests, personality and interest inventories and honesty tests as selection devices.

Mental ability tests


Paper and pencil tests have been developed by psychologists and are used by organization's to
measure mental ability and aptitude. Ability and aptitude tests examine a variety of tests such as
general intelligence, an understanding of spatial relationships, numerical skills, reasoning and
comprehension.

Work samples
Also called performance tests, work sample tests measure the ability to do something rather than
the ability to know something. These tests may measure motor skills or verbal skills. Work sample
tests should test the important aspects of the job. Since job applicants are actually performing a
62

small portion of the job, it is difficult to "fake" ones ability on these tests.
One of the most effective ways to design work sample tests is by using the results of a job
analysis, because the results of a job analysis indicate which tasks are most critical and which are
required for successful competition of the task. It is easy to determine which activities need to be
represented on the tests.

Trainability tests
For jobs in which training is necessary due to
l. The skills level of the job applicants
2. Changing nature of the job, trainability tests are useful.
Essentially the goal is to determine the trainability of the candidate. In the first step of the
process, the trainer demonstrates how to perform a particular task. Then the job applicants are
asked to perform the task while the trainer helps to coach him or her through the process several
times. Finally the candidate monitors the performance, recording any errors, to determine the
overall trainability of the job applicant.
But work sample tests and trainability test have shown to have high to moderate success
predicting job performance.

Personality and general interest inventories


Personality and general interest inventories are tests that have no "correct" or "incorrect" answers.
Interest tests are used to measure an individual's work and career orientations. Personality tests
focus on identifying traits or typical behaviors of individuals and are used to measure a variety of

63

traits including aggression, self-esteem and type a behavior. Although personality and general
interest inventories are tests that have no "correct" or "incorrect" answers. Interest tests are used to
measure an individual's work and career orientations. Personality tests focus on identifying traits
or typical behaviors of individuals and are used to measure a variety of traits including
aggression, self-esteem and type a behavior. Although personality tests can be costly, they can
help human resources manager's determiner individual characteristics opt obtained from a resume,
thus increasing the likelihood of finding a go "fit" between the job position and the employee.

64

65

INTRODUCTION TO THE TOPIC


Recruiting and screening is the first line of defense when it comes to bringing the right people
into the Organization. Determining who the right people are should not end with experience and
education, but with personality, attitude, communication abilities, and other behavioral
characteristics that fit the organization
The overall aim of the recruitment & selection process should be to obtain at minimum cost the
number and quality of employees required to satisfy the human resource needs of the company.
Hitting the hiring bull's eye is one of executive most important and most difficult responsibilities.
Using interviews, reference checks and sometimes-even personality tests, they try to infuse logic
and Predictability into hiring. Still, success remains elusive. If hiring has always been a daunting
task, today's economy makes it more so. The global scope of business has increased the demand
for talented senior executives in the corporate ranks. Meanwhile supply is shrinking as more and
more people-in particular promising MBA's choose to work for start up ventures or go Into
Businesses for themselves. At the same time the nature of work itself is in flux. Until the 1990s,
jobs were pretty uniform. In the classic, functional organization cultures were relatively
comparable, too - formal, hierarchical, and based on individual achievement. But with the advent
of new organizational forms such as joint ventures and strategic alliances and with growing
prevalence of teams, free agents and networking, finding the right person to fill a job has become
more complex. What competencies, after all these new kinds - of companies and cultures require?
Nowadays the CEO's of two companies in the exact same industry may need entirely different
skills and personal styles to succeed. Many talented people leave their organizations because
senior managers don't understand the psychology of work satisfaction; they assume that people
who excel at their work are necessarily happy in their jobs.
66

Strong skills do not always reflect or lead to job satisfaction. Many professionals, particularly the
leagues of 20-30 something's streaming out of today's MBA programs, are so well educated and
achievement oriented that they could succeed in virtually any job. But will they stay?
The answer is, only if the job matches their deeply embedded life interests. Personal values have
changed with workers of the new millennium. Employee/ employer loyalty has Diminished and
work environment and a "work/life" balance are more important than ever. It is clearly evident

That as we move into the new millennium. only companies than ever. It is clearly evident that as
we move into new millennium. only companies that have a world-class recruitment, placement
and retention solution will survive. Considering the above scenario studying the recruitment and
retention strategies was the most appropriate topic for my end term project. Since successful
practices of HR begin with an appropriate selection process and retaining the best talent within the
company is another challenge.

67

RESEARCH METHODOLOGY

The research part of the project involves the following steps:

Step 1: - PROBLEM FORMULATION


To study the issue and facts and people's awareness regarding recruitment process and selection
procedure in BAJAJ HINDUSTAN.

Step 2: - TYPE OF RESARCH (Or RESARCH DESIGN)

Descriptive type of research has been used. It includes survey and fact finding enquiries of
different kinds. The main purpose of descriptive research is to describe the state of affairs. The
survey methods included observation and questionnaire.

Step 3: - DATA RESOURCES

There are two sources through which data is collected.

Primary Data:- Primary data is collected through observation and Questionnaire.


Secondary Data: - Books, reports were used as a source of secondary data.

68

Step 4: - DATA COLLECTION METHOD

By Observation: - This method implies the collection of information by way of investigators own
observation without interviewing the respondent.

Questionnaire: - It is the most effective method of generating data. A detailed questionnaire


comprising of 16 questions covering several an aspect of Recruitment Process in Bajaj Hindustan
was designed. It is illustrated in the Annexure part.

Secondary Data: - All the data, which is already available. The reference of data, which has
already been collected and analyzed by someone else i.e. Books, Reviews, Manuals, Annual
reports of Bajaj Hindustan.

Step 5: - SAMPLING
A process of obtaining information about an entire population by examining only a part of it is
amp ling. In this research random sampling is used. The implications of random sampling is that it
gives each element in the population equal probability of getting, selected and all choices are I
independent of one another

69

Research Methodology is a way to systematically solve the research problem involving a study of
various steps that are adopted by the researcher in studying his/her research problem.
Research

Descriptive

Research Approach

Survey

Contact Method

Personal Interview

Sample Size

40

Sample Criteria

Workers, Staff Members, Managers

Research Instrument

Questionnaire

Area of Research

Muzaffarnagar (U.P.)

Types of Data Collected

Primary Data
Secondary Data

70

OBJECTIVE OF THE STUDY

To analysis the recruitment and selection procedure in Bajaj Hindustan Ltd.

To analyse the recruitment policies in Bajaj Hindustan Ltd.

To determine the satisfaction of employees regarding recruitment and selection in Bajaj


Hindustan Ltd.

71

DATA ANAYLYSIS & INTERPRETATION


Are you satisfied from the recruitments selection process in Bajaj Hindustan?
Response
Strongly Agree
Agree
Slightly Agree
Disagree

Percentage of response
62%
38%
0%
0%

Analysis:
62% employees are clear about recruitment process in Bajaj Hindustan.

72

Is the more emphasis should be given to the internal sources of selection for various posts?
Responses
Strongly agree
Agree
Slightly Agree
Disagree

Percentage of responses
37%
25%
38%
0%

Analysis:
37% of employees are strongly agreed while 25% of employees are agreeing with the option that
more emphasis should be given on internal sources of selection.

73

Is the recruitment done on the basis of recommendation and suggestion made by exiting
employees?
Responses
Percentage of responses
Strongly Agree
37%
Agree
13%
Slightly Agree
37%
Disagree
13%

Analysis:
37 % of employees are strongly agreed while 13% of employees are agreed with the option that
recruitment should be done on the basis of suggestion and recommendation made by exiting
employees.

74

Is the recruitment to higher post done exclusively by internal sources?


Responses
Strongly Agree
Agree
Slightly Agree
Disagree

Percentage of responses
50%
25%
25%
0%

Analysis:
Majority (50%) feel that recruitment to higher posts should be done exclusively by internal
sources.

75

Is the recruitment process fulfilling the objectives of recruitment?


Responses
Strongly Agree
Agree
Slightly agree0%
Disagree

Percentage of responses
75%
25%
0%
0%

Analysis:
Many (75%) feel that recruitment process is fulfilling the objectives of recruitment.

76

Is the rate of recruitment being proportional to the actual need within the origination?
Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
62%
38%
0%
0%

Analysis:
62% of employees are strongly agree and 38% of employees are agree that rate of recruitment is
proportional to actual need within the organization.

77

Are you taken any special training after your recruitment?


Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
95%
5%
0%
0%

Analysis:
This graph shows that most of the employees (95%) are getting training after recruitment.

78

Are you satisfied with the planning system of the company?


Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
90%
10%
0%
0%

Analysis:
Graph shows that most of the employees (90%) are satisfied with the planning system of the
company.

79

Are you satisfied with your work in the company?


Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
95%
5%
0%
0%

Analysis:
Mostly all the employees (95%) are satisfied with their work in the organization.

80

Are you satisfied with your pay packages in the company?


Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
85%
15%
0%
0%

Analysis:
Graph shows that 85% employees are satisfied with their pay package..

81

Are you getting support from your supervisors?


Responses
Strongly agree
Agree
Slightly agree
Disagree

Percentage of responses
87%
13%
0%
0%

Analysis:
Graph shows that 87% of employees are getting support from their supervisors.

82

FINDINGS
1. 62% of employees are clear about recruitment process in Bajaj Hindustan?
2. 37% of employees are strongly agreed while 25% of employees are agree with the option
that more emphasis should be given on internal sources of selection.
3. 37% of employees are strongly agreed while 13% of employees are agreeing with the
option that recruitment should be done on the basis of suggestion and recommendation
made by existing employees.
4. 50% of employees are strongly agree that recruitment to higher post should be done
exclusively by internal sources.
5. 75% of employees feel that recruitment process is fulfilling in the objective of recruitment.
6. 62% of employees are strongly agree and 38% of employees are agree that rate of
recruitment is proportional to actual need within the organization.
7. 95% of employees are gating to training after recruitment.
8. 90% of employees are satisfied with the planning system of the company.
9. 95% of employees are satisfied with their work in the organization.
10. 85% of employees are satisfied with their pay package.
87% of employees are gating support from their supervisors.

83

CONCLUSIONS
After analyzing the data collected from various sources following can be concluded :

BAJAJ HINDUSTAN Recruitment and selection procedure is the successful procedure. The
present procedure is very effective and I hold a greater satisfaction to a large extent.
1.

I have given various options for joining of the candidates in the organization in the
questionnaire. Also I got more options from the employees while interacting with them.
Most of the employees have mentioned the salary package as a reason for joining the
organization. While some of the employees have mentioned or pointed it out the working
environment as the reason for joining the organization. So I can say salary package and
career growth opportunity are the more attractive to the employees.

2.

From the analysis of recruitment and selection procedure it is clear that for recruiting
employees both the companies following government procedures that consist of mainly
written examination followed by interview. Written exam is mandatory for mainly all
types of recruitment. For selection of the technical candidates they have to go through
three mandatory interviews, out of which two are technical interviews and one is the
interviews with the Human Resource head.

3.

The procedure of recruitment is done through employment exchanges, advertisement and


management institutes for unskilled, semi-skilled, supervisors and apprentices. Corporate
and non-corporate cadre like group discussion, psychologist, in the interview. The
procedure of recruitment is done through employment exchanges, advertisement and
management institutes for unskilled, semi-skilled, supervisors and apprentices. Corporate
and non-corporate cadre like group discussion, psychologist, in the interview.

84

LIMITATIONS

Awareness level regarding recruitment policies was less.

People took a lot of time to fill the questionnaire. In same cases 4 visits were required to
collect there responses due to which training period extended.

Sufficient information was not available regarding the recruitment process due to
confidentiality.

This project report is based on the information given by the head or unit manager of the
centers. The information is also collected through some newspapers and e-mails. Some
respondents were not interested in giving answers as they were appearing to be busy.

In fact, this project report involves human processing and analysis. Therefore, there are
chances of human error.

One of the major limitations is time boundness

Trainees are not being treated as part of the organization.

85

RECOMMENDATION

Organization are made up to people and function through people. Without people organization
can not exist. The resources of men, money, materials and machinery are collected,
coordinated and utilized through people. No organization can be successful in the long run
without having the right number and right kind of people doing the right job at right time.
Some of the recommendations are :

1. Before selecting the right man for the right job, it becomes necessary to determine the
quality and quantity of people required in an organization.
2. Availability of required skills and competencies is considered in recruitment.
3. There should be properly planned and systematic recruitment policy in an organization
which is necessary to minimize disruption of work due to changes in employees.
4. Recruitment policy should provide employees with job security and continuous
employment
5. It should integrate organization needs and employee needs.
6. It should be flexible enough to meet the changing needs of the organization.
7. Systematic recruitment leads to greater productivity, higher morale, reduction in labour
turnover and better reputation of the concern.

86

BIBLIOGRAPHY AND REFERANCE

BOOKS :

Dr. C.B. Gupta, Human Resource Management, sultan chand and sons, Education
Publisher, New Delhi.

Rao, P. Subba, Human Resource Management and Industrial Relation, Himalaya


Publication House, New Delhi.

Aswathapa, Human Resource Management, Himalaya Publishing, Edition 5

WEBSITES :

www.google.com

www.hrms.com

www.hr.topics.com

www.wikipedia.com

87

QUESTIONNAIRE
Topic: An analysis of Recruitment and selection Procedure
Name .
Company .
Designation ..
Location .

Q.1 Is the Recruitment process in Ravi Organic , Clear to you ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.2 Are the methods of recruitment process satisfactory ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.3 Is the more emphasis given to the internal sources of selection for various posts ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.4 Is the recruitment done on the basis of recommendation and suggestion, made by the existing
employees ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

88

Q.5 Is the recruitment to higher post done exclusively by internal sources ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.6 Is the recruitment process fulfills the objective of recruitment ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.7 Is the rate of recruitment being proportional to the actual need within the organization ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.8 Are you taken any special training after your recruitment ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.9 Are you satisfy with the planning system of the company ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.10 Are you satisfy with your work in the company ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

89

Q.11 Are you satisfy with your pay packages in the company ?
(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

Q.12 Are you getting support from your supervisor ?


(a)

Strongly agree

(b)

agree

(c )

Slightly agree

(d)

disagree

90