A STUDY ON EMPLOYEE WELFARE MEASURES INDUSTRY he per capita consumption consumption and consumption density(D) of India with rest

of the world, the latent demand for cement can be est imated at77Kg for India and 240Kg for the rest of the world.The cement sector has recorded an impressive increase in product ion capacit ies.The production has grown up by 9.5% over the previous years to 76.22 million tones. Thec o n s u m p t io n, o n T he o t he r h a nd , ha s lo g g e d b e h i n d h a v i n g g r o w n b y 7 . 9 % o ve r t h e previous year to 67.93 million tones. Capacit y ut ilizat ion has been 81% for the large plants. Thus, even at the end 98-99 there was an excess capacit y by about 27 milliontones. (Comparing total capacity and demand). SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 1

A STUDY ON EMPLOYEE WELFARE MEASURES The current financial year is expected to add 10 million tones further. Productionfo r t he f u l l y e a r t o b e e xp e c t e d t o be r a i s e d b y 1 0 - 1 2 % . O f t h i s , s o u t h i s t o be t h e maximum gainer with around 10% growth.T he c e m e nt i n d u s t r y w it n e s s e d a c o n t r a c t io n. I n o p e r a t i n g p r o f it m a r g i n s nationally. In the year ended March97 due to a slowdown in demand growth rate, higher supplies for new commission capacitates and cost increases. Housing sector is yielding aminimum cement demand growth rate, of 6%.T h e Rakesh Mohan committee has forecast the investment o u t l a y s o n infrastructure to rise to 4000-4500billion rupees over the next 5 years. Beyond 2003-2004, these requirements would be in the range of 7500 billio n rupees. The industrialgrowth rate too is expected to rise from 8 to 8.5% in the past 1012%.The per capital consumption is expected to touch 85Kg by 2004 by possibly 13Kgin 2012. If the present growth trend continues. To achieve even 75% of world average oninvestment of 40,000 Crores rupees on plants besides additional investment of same order on adequate infrastructure will be required over 10-15years. The demand by 2012 is placed at 140 million -150 million tons in the wake of the industrial and economic growthunleashed by the liberalizat ion process. The growth prospects of the industry are thusassured. Indias Stand in the world India is the 4th largest cement producer worldwide, following china, Japan andU.S.A. Indias percaptia consumption is only 78Kg as compared to the world average of 251 Kg by the turn of the century. Indias capacit y is expected to crores 100

millio ntones. The Industry has 59 companies owning 115 plants. In the matter of exports, theGovernment considers cement as an extreme focus area. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 2

A STUDY ON EMPLOYEE WELFARE MEASURES However, Industry experts comment that exports are mainly for keeping a check o n t h e d o m e s t i c p r i c e s , w h i c h g e t a d ve r s e l y a f f e c t e d d u e t o e xa m p r o d u c t io n . I n t h e global market. India cement is not very competitive due to high power and fuel costs. Inorder to improve its posit ion in the International market, technological up gradat ion isessent ial in terms of process, product diversificat ion, cost reduction qualit y control andenergy savings. CEMENT INDUSTRY HIGHLIGHTS The Indian cement industry has high Return on Invest ment. There exist s a largemarkers which are not yet been completely tapped. With the existing levels of supply andgrowing demand the prices tend to rise. But the industry being a fast growing one, many p l a y e r s a r e a t t r a c t e d . E ve r y y e a r ne w c a p a c it i e s a r e a d d e d r a i s i n g t he s u p p l y , p r i c e stability is thus maintained and the high profits are observed by new entrants.The per capital consumpt ion of manufacture commodit ies like steel, power andcement ate indicators of the economic state of a country. Of the total output nearly 95% isaccounted for only 90%, while the Government sector accounts for 10%. The housingact ivit y accounts for 55% of total consumpt ion. Nearly 47% of the total costs, most of which are administrated prices are beyond the control of cement units. The cost elementsinclude limestone, coal, transport freight, power consumption and excise duty. Production and Consumption Pattern of Cement In the case of cement production regional imbalances continue. Cement plants aregenerally put up where limestone id available. This because, to produce 1 tons of cement1 tones of limestone is required. Also it is easier to transport cement than limestone.Cement is mainly produced in the Western and Southern regions. Hence, only half of the cement produced is consumed wit hin t he region. Cement is usually transportedfrom south to west is the most surplus region. Although, west is a surplus regions, cement SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 3

A STUDY ON EMPLOYEE WELFARE MEASURES is transported from southern regions which are close to the consumption and excise duty.The dest inat io n of cement transport is mainly dependent on mode of transport availableand the transportation cost incurred. CEMENT MANUFACTURING PROCESS In wet process, limestone is crushed and grounded and mixed with water to formslurry which is fed in to the kiln. The slurry has a water content of 30-40%. Before themineralogical process commence, the water content in the slurry has to be evaporated.This process consumes high energy and power.On the other hand, the dry process is more energy efficient. The raw materials aredried in a combined drying and grinding plant to reduce the moisture content to less than1%.D u e t o r e g u la r s h i ft s fr o m w e t a nd s e m i d r y p r o c e s s ne a r l y 8 9 % o f t h e t o t a l industries kiln capacity is at dry process. Of the remaining, 9% is wet process and 2% issemi-dry process. The main advantage of shift ing to any process is the 50% saving of coal consumption. The energy costs reduce by 30-40% and the kiln output also increasesfor a given size kiln, the output for dry process is 250-300/- as compared to 130-150/- for semi-dry and 100% for wet process. The capacity utilization is also higher for dry process plants. CEMENT BRANDING Ce me nt has e me r g ed a s a co mmo d it y pr o duct . Br a nd s p la y i m p o r t a n t r o l e especially in metros like Delhi, Mumbai, Calcutta, etc, where the established brandssuppress the success of smaller brands. Companies have t ie-ups with real estate agentsand construction companies. Some manufacturers also organize work ships, training andseminars to educate the consumers on the maximum use of a bag full of cement. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 4 A STUDY ON EMPLOYEE WELFARE MEASURES COMPANY PROFILE Lanco industries limited (LIL) was promoted by Lanco Group in 1992 in Chittoor District. A.P LIL setup as a Mini Blast Furnace (MBF) in 1994 with a capacity of 90000TPA to manufacture and sell Pig Iron to the customers and foundry units across India. In1998. LIL entered into an agreement to supply Molten Iron and pig Iron to Lanco, SriKalahasthi Castings Limited (LKCL) a company within the same campus engaged in the business of Iron cast ings & forging. LKCL later on added high technology Duct ile IronPipes (DIP)

manufacturing facilit ies to its portfolio. In March 2002 Indias leading DIPipes manufacturer, Electro steel Castings Limited (ECL) entered into a strategic alliancew i t h L I L a n d L K C L b y a c q u i r i n g 4 6 . 4 3 a nd 4 8 . 8 9 p e r c e nt s t a k e i n t he c o mp a n i e s respectively. In addition to technological support, ECL also infused fresh fund into LIL by way of equit y part icipat ion and re-modeled the financial structure, thus reducinginterest costs.In 2003 the capacit y of MBF was increased from 90,000 TAP to 1, 50,000 TAPand the capacit y of DI Pipes was increased from 60,000 TAP to 90,000 TAP at capitalout lay of approx. Rs. 35 corers. In 2003 LKCL got merged with LIL ( with effect from1st April 2003) to take advantage of the close synergy in the business model of the twoc o mp a n i e s , s i n c e a l a r g e p a r t o f P i g I r o n i n l i q u i d fo r m i s c o n s u m e d b y L K C L fo r manufacture of Pipes. In 2004, 1, 50, 000 TAP Coke Oven Plant was setup at capitaloutlay of Rs. 45 corers. QUALITY POLICY L a n c o I n d u s t r i e s L i m i t e d a i m s a t ma x i m i z i n g t h e c u s t o me r s a t i s f a c t io n b y supplying products of consistent quality with collective participation of Management andEmployees. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 5 A STUDY ON EMPLOYEE WELFARE MEASURES TO ACHIEVE THE ABOVE, WE WILL Manufacture and supply products as per specificat ions and standards agreed towith the customers. Continuously strive to improve the quality of the products and process Maintain interaction with customers Train and motivate employees to achieve the companys goal. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 6 A STUDY ON EMPLOYEE WELFARE MEASURES CHAPTER - 2INTRODUCTION: 1.1INTRODUCTION TO THE STUDY Safety and welfare measures are inevitable to any organization where workersa r e i n vo l v e d . A n o r g a n i z a t io n s r e s p o n s i b i l i t y t o it s e m p lo ye e s e xt e n d s b e yo n d t he payment of wages for their services. The employees safet y and welfare on and off the jo b w it h i n t he o r g a n i z a t io n i s a v it a l c o n c e r n o f t h e e m p l o ye r . P r o v i d i n g a s a f e a n d healthy environment is a pre-requisite for any productive effort. This research deals withthe study on the welfare measures provided to the employees at LANCO INDUSTRIESPVT LTD. 1.1.1Problem Idenfication Unlike other industries, the employees of the Lanco are often exposed todifferent and new which they may not have been familiar wit h earlier. The employeeshave to deal huge machinery. The unfamiliarity in the nature of materials they handle andthe danger

involved I handling them make the employees prone to higher degree of risk.Satisfying or fulfilling the safety and security needs of the workers,would give them a better motivation and more time to concentrate on job performance. Avoluntary approach on the part of the management to offer welfare programmes whicha r e o v e r a n d a b o v e w h a t i s l a i d d o w n b y t h e l a w w o u l d b o o s t t h e m o r a l e o f t h e employees and mot ivate them to perform better. A preliminary study conducted by t her e s e a r c h e r w it h r e s p e c t t o w e l f a r e s ho w e d t ha t t he r e w a s s c o p e fo r i m p r o v e m e nt i n certain areas. This formed the basis of the research problem. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 7 A STUDY ON EMPLOYEE WELFARE MEASURES 1.1.2Objectives of the study Primary Objective: To study the level of sat isfact ion of employees regarding welfaremeasures at Lanco Industries pvt ltd. Secondary Objective: To study the percept ion of the employees regarding the welfaremeasures provided to them. T o a n a l y z e i f t h e l e v e l o f s a t i s f a c t io n i s d i f f e r e nt a mo ng t h e v a r io u s categories of employees and departments. To suggest provision of more welfare measures to improve t h e performance of the employees. 1.1.3Scope of the study This study would give an overview of the welfare measures existing atL a nc o i n d u s t r ie s . S i n c e s a f e t y a n d w e l f a r e a r e t w o i m p o r t a nt e l e m e nt s e s s e nt i a l fo r improving the productivity of an organization, a study on the existing welfare measuresw o u l d h e l p t he o r ga n iz at io n per fo r m bet t er . Th is st ud y wo u ld t hr o w lig ht o n t h e perception of the employees regarding safety and welfare. Lanco industries can identifythe areas where it can improve so as to improve the performance of the employees. Thisstudy would also help to analyze if there is dependence between 1.1.4Limitations of the study The study was restricted to the class III and class IV non ministerial staff of Lanco industries. Due to time constraints the sample size had to be confirmed to 100. The respondents have replied to the queries recalling from their memory.Therefore recall bias and personal bias are possible. Since the data was collected using a schedule, the interviewers inability tounderstand and record the responses correctly is possible. The respondents were unable or unwilling to give a complete and accurateresponse to certain questions.

SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 8 A STUDY ON EMPLOYEE WELFARE MEASURES 1.2REVIEW OF LITERATURE In 1998 a study was conducted on the welfare measures provided to theemplo yees of Copt by Ms. N. Sangeetha of Bharathiyar University . This study was based on the Class I and Class II employees contrary to my project work which focusesonly on the Class III, Class IV non-ministerial staff. This was helpful to me with regardto the select ion of samples and using statist ical tools. I have done my research work independently and both the studies are independent. Definitions of safety The condition of being safe; freedom from danger, risk, or injury. The state of being certain that adverse effects will not be caused by some agentunder defined conditions. Occupational safety is concerned with risks in areas where people work; offices,m a n u f a c t u r i n g p l a nt s , f a r m s , c o n s t r u c t io n s it e s , a nd c o m m e r c i a l a n d r e t a i l f a c i l i t i e s . P u b l i c s a f e t y i s c o n c e r n e d w it h h a z a r d s i n t he ho m e , i n t r a v e l a n d recreation, and in other situations that do not fall within the scope of occupationalsafety. Definitions of welfare Anyt hing done for the intellectual, physical, moral and economic betterment of the workers, whether by employers, by government or by other agencies, over andabove what is laid down by law or what is normally expected of the contractual benefits for which workers may have bargained. Well-doing or well-being in any respect, the enjoyment of health and the common blessings of life; exemption from any evil or calamity; prosperity; happiness. SREE VIDYANIKETHAN INSTITUTE OF MANAGEMENT 9 A STUDY ON EMPLOYEE WELFARE MEASURES 1.2.1METHODOLY AND ANALYSIS OF DATA RESEARCH METHODOLY Research methodology is a way of systemat ically solving the research problem. Research methodology deals with the research design used and methods used to present the study. 1.2.2Research Design A research design is a detailed blue print used to guide a research study toward itso b j e c t i v e . The process o f designing a research study invo lves many i n t e r r e l a t e d decisions. The most significant decision is the choice of research

approach, because itdetermines how the informat ion will be obtained. The choice o f the research approachdepends on the nature of the research that one wants to do.The research design adopted for this study is Descriptive Research. Descriptivemethod was adopted because it deals with description of the state of affairs as it exists at present. Sampling Techniques The next step in research study after collecting data is the sampling process. When adecision is made to use the sample, a number of factors must be taken into consideration.The various steps involved in the sampling process are: Identifying target population. Determining sample frame. Selecting sampling procedure. Determine sample size. Execute sampling. Obtaining information from respondents. Generating information for decision making.