CHAPTER 1 INTRODUCTION

1.1 INTRODUCTION
An organization study helps the management students to gain practical knowledge and experience and to achieve higher management excellence. Students have only theoretical knowledge that they learn from class room. The organization studies help the students to implement the theory they have learn from the classroom. They get firsthand knowledge about activities and functions of various departments in an organization. Thus students get a better understanding of the organization by the study. The organization study was conducted at one of the largest CENTRAL GOVERNMENT public sector unit of Kerala, HLL LIFECARE LIMITED Poojapura, this gave a insight in to the working coordination of all the unit of the company, its corporate objectives and the ways and means adopted by the company to achieve its set goals. The study also covered the different aspect of the companys commitment towards social objectives. HIV emerged later in India than it did in many other countries, but this has not limited its impact. Infection rates soared through out the 1990s and has increased further in recent years. UN report says that

Indias adult HIV prevalence will peak at 1.9 million in 2019.

The number of AIDS death in India will rise to 49.5 million in 2015. Economic growth of India will slow by almost 1% per year as a result of AIDS by 2019. In this situation Government has announced Anti-AIDS campaigning will place a strong focus on Condom promotion. Government has also started campaign involving advertising public events and celebrity endorsements. It aims to break the taboo that currently surrounded Condom use
CET MBA 1

in India, and to persuade people that they should not be embarrassed to buy them.

1.2 OBJECTIVES OF THE STUDY

The main objectives of the study are Understanding the functioning of the company and its departments. Understand the various corporate management practices followed by the company. To study the organizations atmosphere.

1.3 METHODOLOGY
Research methodology is a way of systematically solving the problem. Methodology is a science of studying how research is done scientifically. METHODS OF DATA COLLECTION Informations are collected from primary and secondary data

Primary data Primary data are those data collected freshly and from the first time .

Primary data are collected through

Observation Interview with officials and employees of the firm Secondary data are those data which are already collected by

Secondary data someone else.

CET MBA

Secondary data are collected from Website Journals Library Annual records

1.4 SCOPE OF THE STUDY

A study of various department and its functions help to gain awareness about an organization atmosphere. Through this study our attempt is to ascertain where the organization stands with respect to the society and to see whether it has been able to attain over all mission. The student will be able to come out with equitable and unbiased suggestions thorough analysis of data collected. More over the study throws lights on the various products and production process together with the company future plans of expansion. More over suggestion has also been put forward as to improve the satisfaction level of industrial works in the organization. For this project also has been allowed to suggest measures that will further improve the present level of satisfaction among the industry workers in the organization.

1.5 LIMITATION OF THE STUDY

The main limitation of the study was time factor. The duration of the study was one month.

The study was done through conversation so there is a chance for

personal bias. Lack of co-operation from certain department due to their work load. Secondary data available from various departmental manuals were out dated (the manual are being updated).

CET MBA

CHAPTER 2 INDUSTRY PROFILE

2.1 ORIGIN OF INDUSTRY
A study among the 1479 U.S men has concluded that sex education appear to delay the age of first inter course and encourage the condom use. Men who have received sex education were more likely to use condom. The pre-historic cave findings in Egypt and France point out that condom were in use. But it was in different form called the penile sheath, even today the tribes in Amazon jungle use gourd shells. However most historians believed that Roman Soldiers were, the first to use the condoms. There the soldiers used the sheep intestine as sheath for protecting themselves against sexually transmitted diseases. With the fall of Roman Empire the use of condom technology was lost during the middle ages. The condom was reinvested by Marquis De Sade in the 17th century. Merrill Youngs was the first company in the world to manufacture and distribute

2.2 GROWTH AND DEVELOPMENT OF THE INDUSTRY

Ever since Merrill Youngs came up with the manufacture and distribution of condom world over, new companies have come to the scenario. In the past, men had to do labor cutting, slicing and shaping the of intestine of lamp and sheep for use. Today the latest technology helps to vulcanize the rubber latex into thin film called condom. As in the case of any products condom too has gone through the cycle of initialization, growth and stagnation, new varieties were introduced in the market namely, colored flavor, dotted, spermicidal and even musical. Under the
CET MBA 4

guidance of World Health Organization (WHO) condom industry gained wide spread popularity. In 1994 the first polyurethane condoms came into existence in the U.S today the use of condoms is inevitable. Since it is the only answer to the sexually transmitted disease, AIDS. It is also an effective birth control device.

2.3 PRESENT STATUS OF INDUSTRY

The major players in India apart from HLL Lifecare Limited are TTK group (Kohinoor Brand), SSL Internationals (Durex Brand), JK Ansell (Kamasutra Brand) and polar Latex, Sureted Prophylactics(India) Limited, Indian Medicare etc. The total production capacity in India is around is 2.5 billion. Kamasutra Brand is in high demand in the market, which is followed by Moods of HLL Lifecare Limited. There are three segments for Indian condom markets 1. Free Supply 2. 3. Social Market Commercial - 1500 million - 500 million - 500 million

The following is the production capacity of major companies (in millions) 1. HLL Lifecare Limited 2. TTR Limited 3. Polar Limited 4. J.K.Ansell
5. Sureted Prophylactics

- 1000 - 400 - 250 - 500 - 100 - 250

6. Indus Medicare

CET MBA

CHAPTER 3
COMPANY PROFILE

HLL LIFECARE LIMITED

HLL Lifecare Limited undertaking the Ministry of Health and Family Welfare. After consolidation of its position as a condom, HLL Lifecare Limited Launched a diversification plan aimed at becoming a premier health care company of India. HLL Lifecare Limited commenced its manufacturing operation of condom at its plant established at Thiruvananthapuram on April 5, 1969. HLL Lifecare Limited was set up in 1969 with the objective of providing good quality condoms for the National Family Planning Programme of India. After Independence India was still lottering with an enormous population. Unemployed was steady on the rise with nearly 50 lakhs unemployed people. It was around this time that the Government of India decided to broadcast and intensity the Family planning Programme. A massive drive to educate and reach the masses was the launched with this, the need to provide essential backup service through, easy availability of spacing aids like condoms and contraceptive pills was left and it become imperative to have a production facility for manufacturing superior quality condoms at low cost. Thus on March, 1969 HLL was born.
CET MBA 6

The choice of site came based on the requirements of production facility, Thiruvananthapuram in Kerala was found ideal. HLL Lifecare limited was started as a part of governments effort to control the birth rate. It has also rapidly grown and diversified into other major areas on healthcare. New products are being produced to save valuable lives of million. HLLs ceredrain shunts of the hope and cure of numerous children suffering from Hydrocephalus disease. Several million people can benefit from HLLs top quality products (surgical gloves, surgical sutures, contraceptive pills , Hindustan Latex Haemopack blood bags,, Copper T, condoms, Hydrocephalus shunt). Women across the Country can no choose from a wide range of products manufactured by HLL Lifecare Limited. Many of HLL Lifecare Limiteds achievements has been possible by the sustained efforts and sheer commitment of companys 1844 employees, be lives that every act of this people this helps India. HLL Lifecare limited has received several National and State award for its performance. The internationals divisions of the company setup in 1993 aims at giving HLL Lifecare limited export marketing a great trust. In 1991 the Government of India recognize HLL Lifecare Limited in signing organization HLL Lifecare Limited today exports products to 100 Countries all over the world. HLL Lifecare Limited was over the years provide that being in public sector in no implement for an organization as a whole to perform effectively and efficiently and to each employee to give his best and grow with the organization. There over the three decades since its inspection, HLL Lifecare Limited has developed an impressive and health care product. Manufacturing facilities of HLL Lifecare Limited have the prestigious ISO 9002 Certificate. Blood Bags and condoms manufactured by HLL Lifecare Limited have CAPITAL EMPLOYEMENT mark. Hindustan Latex Family Promotion Trust (HLF-PT) implements various social projects aimed for planning behavioral change HLF-PT has a rich
CET MBA 7

experience and expertise in successful supplementation social projects in the field reproductive health, safe sex and AIDS prevention Unique of HLL Lifecare limited is wide range of products for contraceptives and health care segments. No other company in the world possibly can offer the wide range of contraceptive under one basket, like HLL Lifecare Limited LOGO

Corporate and Regd. Office: - HLL Bhavan, Poojappura, Thiruvananthapuram-695012, Kerala, India. Tel; +91-471-2354949, 2350961, 2350959 Website: www.lifecarehll.com

3.1 MOTTO, VISION, MISSION

MOTTO INNOVATING FOR HEALTHY GENERATIONS
CET MBA 8

VISION

HLL LIFECARE LIMITED will establish itself as the leader in its core activities through a process of continuous innovation and participatory approach.

Provide best value to the customer. Be an employer of choice. Promote the cause of family health in general and womens health in particular.

MISSION
To accomplish the corporate vision HLL LIFECARE LIMITED has outlined a mission to be world class health care company by the year 2010, with focus on five key areas. Business leadership Customer focus Employee satisfaction Social initiatives Innovation

3.2ORIGIN AND HISTORY

1966
CET MBA 9

Incorporated as a company under the ministry of Family Welfare of the Government of India.

1969 Commences commercial production of condoms at its production capacity-144 million pieces a year. 1976 Production capacity doubled to 288 million pieces a year with the addition of two more lines in the moulding section 1966. Incorporated as a company under the Ministry of Health and Family Welfare of the Government of india. 1985 Addition of a new plant at Thiruvananthapuram with the latest stateof-art Japanese Technology. Commencement of new condom plant at Kanagala, Belgaum (KFB), Raises HLLs total condom production capacity to 800 million pieces a year, 1991 HLL recognized as a MOU signing CPSU by the Government of India. HLL granted the 510(k) Registration by the Food and Drug Administration (FDA) US, for its male condom.

1992

Adds manufacture of Medigard Surgical & Examination Gloves at PFT.

CET MBA

10

Commences formulation and tabletting of Saheli (Centchroman) oncea-week non-steroidal pill at the Kanagala plant near Belgaum (KFB)

1993 Plant for formulation and tabletting of Mala-D Oral pills, commissioned 1994 Commences production of copper-T Intra-Uterine Devices (IUD) Commences commercial production of Ceredrain Hydrocephalus shunts. 1995 1996

at KFB.

Introduces Surgical, Synthetic and Catgut Sutures. Commences manufacture of HL-Haemopack blood transfusion bags HLL awarded NF mark

HLL awarded ISO 9002 certificate- for PFT (condom manufacture) and AFT (manufacture of blood bag, copper-T and hydrocephalus shunt.

1997

HLL, first company from India selected by the World Health Organisation (WHO) for sourcing of condoms.

1998 Hindustan Latex Family Planning Promotion Trust (HLFPPT) a nonfor profit organization of HLL commences several social marketing projects and services in different parts of the country.
CET MBA 11

2000 Receives MOU awarded and Certificate merit from the Vice President of India, for achievement of MOU targets. 2002 Introduces HL-Haemosafe Instant Needle and Syringe Destroyer, for destroying used needles. 2003 Receives MOU award from the President of India Introduces Preventol Emergency Contraceptive Pills Introduces for Blood Bank automation, HiCare Blood Collection Monitor and Hicare Tude Scaler for sealing Blood Bags.

AFT awarded ISO 14001 Certification

HLL commences manufacture of Tissue Expanders at AFT Commercial production of Surgical Sutures launched at AFT by the Union Minister for Health and Family Welfare on 27th September.

2004

Launches Moods condoms in the Middle East on 22nd January HLLs Female Condom launched by the secretary, Dept. of Family Welfare

Launches Sanitary Napkins Sakhi Cochin Special Economic Zone (CSEZ) unit inaugurated Receives Government of Indias MOU Awared from the Prime Minister of India.

CET MBA

12

 2005

Launched Autolok Auto destructive syringes

Condom Vending Machines installed in Kerala by HLFPPT HLL launches Moods variant Spiral Condoms Receives the National Safety Innovation Award PFT awarded the OHSAS 18001 Certificate Receives from the Union Finance Minister Capexils Export award for outstanding export performance

HLL launches Moods Glows Condoms at a special function at Thiruvananthapuram.

The first LifeSpring Hospital at Moula Ali, a suburb near Hyderabad, inaugurated by the Union Secretary for Health and Family Welfare, on 10th December

2006 Womens Health Care Pharma Products launched HLL receives National award for Excellence in Cost Management instituted by ICWAI Launches MOODS Get Closer Pack HLL upgraded as a Schedule B PSU by the Government of India Launches a new contraceptive concept- the Confidom Passion Rings-a women initiated barrier method made of polyurethane Launches break after use syringe-Bsure

CET MBA

13

HLL declared a Mini Ratna PSE by the Government of India on 31st August

TYFEX & HIVAC-B Vaccines launched by Union Secretary, Health & Family Welfare

2007

HLL receives the Kite Mark (UK) Certification for its condoms

HLL forms Infrastructure Development Division in February HLL organized its first ever inter Unit/Department Expo Latexpo 2007

Launches Crezendo condoms with Vibrating Ring Launches Aastha Pan Flavored condom for Family Health international

Merrygold Health Service Network launched by HLFPPT HLL commenced work on the Super Specialty Block of the

Trivandrum Medical College on 24th November

HLLs Corporate Song released on 24th November HLLs In-Vitro Diagnostic Test Kits manufacturing facility at Manesar, Gurgaon inaugurated by the Union Secretary, H&FW

Launches VELVET- the new Female Condom made of a nitrile, on 17th December

2008

HLLs Smrithivanam Social Forestry Programme was inaugurated

Hind Labs Diagnostic Center was inaugurated

CET MBA

14

Formation of Life Spring Hospital (Pvt) Ltd a joint venture between HLL and Acumen Fund, USA

US inaugurates the Female Condom manufacturing facility at Kakkanad, Kochi (KFC)

Receives National Rajbasha Award from the President of India for outstanding implementation of Official language in the Southern Region

HLL registered its first Pharma product outside India in Peru in South America and launches its once-a-week, non-steroidal oral contraceptive pill in the brand name IVY Femme in Lima, Peru, on 15th October

HLL ties up with Arya Vaidya Sala (AVS), Kottakkal for introducing Women Health care, Health Generies and Neutraceutical products, on 5th December

Receives

Capexils

Export

Award

for

outstanding

export

performance for 2007-08 2009

Hindustan Latex HLL took a new name HLL Lifecare Limited on 1st January as an organization whose activities today encompass complete health care for all

Launches at Jaipur, Lactohil a health tonic to improve the health of lactating mothers, a product from AVS, Kottakkal, on 5th January.

HLL opened MOODS Planet retail outlet at Thiruvananthapuram (Kerala) to directly reach its range of contraceptives to consumers in the city, on 16th March.

3.4HINDUSTAN LATEX LIMITED - VALUE STATEMENT

CET MBA 15

We consider our employees as our most valuable assets and are committed to provide full encouragement and support to them to enhance their potential and contribution to the companys business.

3.5HINDUSTAN LATEX LTD PHILOSOPHY

We believe in the potential of our most valuable assets our employees We believe and trust our employees We believe that our employees can make us and break us. We strive for excellence. We exhibit the values of honesty, integrity and respect among our employees and the public in work and conduct.

3.6QUALITY POLICY
To Provide products and services which confirm to International

Standards in area of Family Welfare and Health to complete satisfaction of customers To achieve a high standard of personal and corporate excellence through continuous improvement, HRD and employee participation To give utmost importance to safety and environment protection To market product and services of the company globally on strength of quality, cost and delivery.
To strategically diversify in to areas of family welfare and

healthcare.

CET MBA

16

3.7CERTIFICATIONS
World class certifications HLL Lifecare Limited is strongly committed to manufacturing

products of world class quality to all its customers. From health care to family products to family planning, all its products conform to International Standards and Quality Standards. CE mark for Blood Bags, Condoms, Surgical Sutures and Tissue

Expanders from SGS, Yarsely SABS mark for Blood Bags, Condoms from South African

Bureau of Standard ISO 13485-2003 certificate for manufacturing unit producing

Intra-Uterine Devices, Blood Bags, Hydrocephalus Shunt, Surgical Sutures and Oral Contraceptive Pills. ISO 14001 Environmental Management System certifications.

3.8 PRODUCT PROFILE

HLL Lifecare Limited is providing a wide range of products for different sections of market. The details of these are given below:1. Condom

CET MBA

17

Condoms are the major profit earning components of HLL Lifecare Limited. Condom projects are against sexually transmitted disease (STD) like acquired Immune Deficiency Syndrome (AIDS). Different brands of Condoms produce by HLL Lifecare Limited Nirodh Deluxe Nirodh Super Delux Nirodh Moods Moods Supreme Rakshek Gay Share Ustad

2. Contraceptive tablets Contraceptive tablet are taken by women to avoid unwanted pregnancy Different brands of contraceptive tablets products by HLL Lifecare Limited are 3. Arpan 4. Blood Bags During the earlier years blood bag were imported, but HLL Lifecare Limited started manufacture of blood bag from 1995 with the technical knowhow from Sree Chitra Thirunal Institute of Medical Science and Technology, Trivandrum. A Blood Bag per annum is up and running at Akkulam factory, Trivandrum.
CET MBA 18

Saheli Mala-D

Different types of blood bags produced in HLL Lifecare Limited are: Single Double Triple Pediatric Transfer Bags

5. Copper-T Copper-T is an Intra-Uterine device used by women to protect against unwanted pregnancy. Use of Copper-T leads to lower fertility rates in women. Commercial production of Copper-T is installed. It was be useful for a period of five years. Two brands of Copper-T products of HLL Lifecare Limited are T-Care 200 B T-Care 380 A

6. Hydrocephalus Shunt Hydrocephalus Shunt is used to regulate the pressure inside the head of children having abnormal brain fluid condition. HLL Lifecare Limited started the manufacture of hydrocephalus shunt in the year 1994 at Akkulam Factory.

HLL

CET MBA

19

CONDOMS CONTRACEPTIVE

COPPER-T

BLOOD BAG

TABLETS

HYDROCEPHALUS SHUNT ADDITIONAL PRODUCTS Intra uterine devices Oral re-hydrations salt Iron and folic acid Medicated plaster Structures Needle destroyer Blood collection monitors Tissue expander Mediguard surgical gloves(sterile) Blood bag tube sealer Blood transfusion and intravenous set

ORGANIZATIONAL STRUCTURE

CET MBA

20

CHAPTER 4
CET MBA 21

FUNCTIONAL DEPARTMENTS
HR Department Marketing Department Finance Department Projects department IT Department
Corporate Quality assurance department

Vigilance department Strategic Planning department Public relations department Secretarial & legal department Research & development department

CET MBA

22

4.1 HUMAN RESOURCES DEPARTMENT

HR VISION
Fostering employees excellence in support of building the nations best Health care Company.

HR MISSION
To provide companywide leadership in formulating human resources polices and programme that enhance the quality of employees services and encouraging employees contribution forwards sustain HLL LIFECARE LIMITEDs continued excellence.

HR PHILOSOPHY

Believe in the potential of our most valuable assets-our employees Believe and trust our employees Strive for excellence Exhibit values of honesty, integrity and respect

CET MBA

23

HR HIERARCHY

CMD

SENIOR VICE PRESIDENT

DEPUTY VICE PRESIDENT

SENIOR MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

JUNIOR OFFICER

CET MBA

24

OBJECTIVES
Exercise leadership in modeling and implementing successful HR policies and practices that help unleash employee potential. Create an organization Ambience where talents can bloom and support the management efforts to foster a high performance workforce. Support local efforts to recruit, develop and retain highly qualified workforce. Provide comparative terms and conditions of the employment to workforce through building up a reward and recognition mechanism.

Functions (HR)
1) General administration 2) Wages and salary 3) Training and development 4) Performance management 5) Industrial relations
6) Labour welfare

7) Estate management

RECRUITMENT POLICY
Recruitment on Manpower Requisition
CET MBA 25

 The concern department/unit will send a man power requisition to the

corporate when personnel department when there is a vacancy to be filled up in that particular department/unit.
The total approved strength of the department/unit will be taken into

account by the corporate personnel department before initiating the recruitment process. The corporate personnel department will then initiate the recruitment process based on the below mentioned guidelines, after obtaining necessary approval from the competent authority.

SOURCE OF RECRUITMENT
The following are the sources identified in recruitment a. Promotion By promotion to the existing employees as per the approved promotion policy b. Direct Recruitment
1. Through employment Exchange Recruitment to ministered

posts carrying pay scales, the maximum of which does not exceeds Rs 8640/- is to be made only through employment exchange.
2. Through Professional and Executive Employment Exchange-

For selection of executive level positions, list of suitable candidates can be obtained from professional and executive employment exchange.
3. Through Open advertisement

CET MBA

26

Newspapers Advertisements will be released in

National newspaper detailing the age, education and experience requirements.

Company website Advertisements will be given in the

website of the company.

4. Through Recruitment/Manpower consultant or professional

bodies The services of the consultants/professional bodies may be utilized to identify and select the right candidates against specific requirements.
5. Through campus recruitment Campus recruitment will be

conducted at reputed Technical institutions, engineering colleges or Management Institutes for the recruitment of fresh candidates.
6. Through walk in interview - Walk in interviews may be

conducted at any location through newspaper advertisements when the posts are to be filled up urgently after obtaining the permission of Managing Director. c. Deputation Deputation of employees can be form the State Government, Central Government, State/Central Government Public Sector. d. Transfer This includes the transfer of an employee from one section to another, one department to another or one unit to another. e. Re-employment Under special circumstances, re-employment may be given to those persons who are retired from the services of State Government, Central Government, State/Central Government Public sectors or those

CET MBA

27

who have left the services of the company earlier and are within the retirement age of the company. f. Fixed Term Contract An special cases where the job is not of a permanent nature or where the manpower strength is not finalized, employees may be recruited on fixed term contract. Such employees if found suitable can be considered subsequently against regular agencies.

SELECTION
Selection of personnel shall be made by the selection committee/departmental promotion committee (DPC) constituted for the purpose by the Board of Directors/Managing Directors as the case may be. SELECTION PROCESS Selection process involves qualifying in these diverse requirements. The minimum age limit for candidates other than re-employed persons belonging to which they are considered and the experience profile of the position. Age relaxation for SC/ST.OBC physically handicapped and Exserviceman will be 5 yrs, 3yrs, 10 yrs respectively. However, internal candidates for selection/promotion as pre the approved policy will be considered irrespectively of their age. RESERVATION OF POSTS The orders regarding the reservation for Scheduled Caste/Scheduled Trips other Backward caste, ex-serviceman physically handi capped persons it/issued by the Government of India from time to time on applicable to public sector undertakings will be strictly followed .

TRAINING AND DEVELOPMENT

CET MBA

28

The company believe in the potentiality of it human capital. Accordingly training and development of the human capital is given much importance by company. The company conducts the following Three types of Training namely 1. Workmen development Programme 2. Supervisor development programmes 3. Executive development Both in house and external training programmes are conducted for the development of skill, knowledge and behavior pattern to build up organizational capability, training and development of the company is needed oriented.

PROMOTION POLICY
Promotion policy adopted is comprehensive and the authorities and positions are modulated according to the credentials, qualifications and performance of employees. Here HR department analysis the qualified candidates are contributed jobs involving purpose and distinctiveness which improves the employees morale, they are delegated with duties empowered with status and position and allotted salaries and emoluments for their jobs. The company has a promotion policy approved by the Board for its executives and all the promotions in this category will be governed by the promotion policy. Promotion Policy for Executives and Supervisors The promotion policy for Executives and Supervisors is approved by the Board of Directors in the 17th meeting held on 22-11-1999. Future promotions in respect of all executives and supervisors of HLL Lifecare Limited will be as per these rules. OBJECTIVES

CET MBA

29

To integrate the growth opportunities of executives with the companys growth.

To identify, train and develop competent personnel in the growth potential and to provide an environment for high level of performance.

To provide equality in opportunity, equality in assessment and uniformity in implementation among all the units of the company in the matter of promotion.

To ensure continuity of the management by systematic SUCCESSION PLANNING for senior positions in the company.

To seek and provide a continuous team of executives to work for sustained high level of competence in the company.

SCOPE This promotion policy shall cover all promotion to and from executive category and shall apply to all units and corporate office. PROCESSING OF PROMOTION Promotion of all executives shall be processed in the corporate office. The Departmental Promotion Committee (DPC) shall meet every year to asses the number of vacancies to be filled up by promotion, department size in each category with in the sanctioned manpower strength and the eligible candidate will be considered for the same.

PERFORMANCE APPRAISAL
Appraisal system in an organization is pivotal in HR evaluation and development. Improving and rating the performance of employees is integral. Performance driven culture has to be created. HLL Lifecare Limited adopts distinctive methods in performance appraisal a detailed analysis regarding performance appraisal technique and methods are made.
CET MBA 30

EMPLOYEE WELFARE
HLL Lifecare Limited takes initiatives to promote and provide the requirement of its employees the employee welfare schemes are diversified. The organization offers both statutory and non-statutory.

A.STATUTORY BENEFIT Statutory benefits includes first aid and ambulance, canteen facilities, lockers for employees crche and other safety measures. The company gives utmost importance to safety aspects of the employees. Safety and environment provided. B.NON-STATUTORY BENEFIT Non-statutory benefit includes providing charity, financial assistance to employees which includes (providing advancement for education, science, literature and arts, retirement on medical grounds, in case of resignation/ dismissal from a company, dependents are provided funds on death of an employee) Benefits are provided in the form of sickness benefit, medical benefits, accident scheme, group personal accident scheme . Funds are maintained to improve the participation of employees in the organizational activities as recruitment occur through recommendations and referrals of these employees, donations are given through these funds and funds are raised from employees to improve and invite their contributions to the organizations. Major policies allocated for the employees include Workmens Compensation Act, Health and safety Policy, Environment and Safety Policy. department under safety officer looks after all aspects related to safety in all manufacturing units. Safety and Awareness training is also

TRADE UNIONS
CET MBA 31

Trade Unions are also promoted and they are involved in the management undertakings. They are contributed a certain amount from the fund. Trade Unions help to protect the employees wages and working conditions in the factory. In early days there existed 14 trade unions in HLL Lifecare Limited. The management found it difficult to handle and to manage these 14 trade unions. So they made condition that the trade union must contain 15% of the workers as members and convinced that and then only it get recognized trade union are: HINDUSTAN LATEX EMLPOYEES (CITU) HINDUSTAN LATEX WORKMEN CONGRESS (INTUC) HINDUSTAN LATEX LABOUR UNION (AITUC) If Industrial Dispute occur management together discusses and solves the problems with the help of trade unions. If dispute arises, the aggrieved employee wrote communication to the immediate controlling officer. If it is not solved, employee can give a complaint to the officer in writing. If remedial action are not taken the aggrieved employee given an appeal to the committee and to CMD. Workers participation will help to increase workers productivity, etc.

WORKING TIME
General office time from 9.30am to 5.30pm

WAGE/PAYMENT
The employees are getting good salary, allowances and bonus in HLL Lifecare Limited. The salary components are basic pay DA, HRA, Conveyance allowances, canteen subsidies, educational allowances etc. The conveyance allowances for employees are Rs 125/month and for Senior assistant manager and above Rs 1100/- those who have four wheelers and Rs 400/- for those who have two wheelers. The factory washing allowances are
CET MBA 32

given to workers who use uniforms. Wage revisions are made in every 10 yrs through management union negotiations. Company provides medical benefits for all the employees. This is 1/12th of one month basic pay plus DA. The company also provides home town allowances once in two years. The bonus of 32% is given to employees who are getting the minimum salary of Rs 3500/- PF is given according to the Provident Fund Act. This is 10% of basic pay + HRA .The company provides Rs 100/month as education allowances to every permanent employee.

The employees are given liberalized leave rule

Casual leave Earn leave Half pay leave : 12 days casual leave per year : 15 days for first 6 months and 12 days for next 6 months : 15 days for 1st 6 months and 12 days for next 6 month

Loan facilities are available for various purposes such as 1. Housing Loans Officers Rs 4 lakhs Staff Rs 3 lakhs

For maintenance of house Officers Rs 1.5 lakhs Staffs Rs 1 lakhs

2. Vehicle loans For officers Rs 2 lakhs at 5% interest subsidized rate is given for the purchase of car, for the purchase of two wheelers Rs 25000 is given. Workers get Rs 1000 for Bicycle. 3. Interest free loan
CET MBA 33

Interest free loans are also given as festival allowances, school reopening advance etc.
4. Medical Insurance

Family Insurance up to Rs 1 lakhs per annum Critical Insurance up to Rs 1.25 lakhs

EMPLOYEE AWARDS
Performance Award This is given to most performing person at each department excluding officers based on performance, recommended by departmental head. Suggestion award The suggestion which bring about tangible benefits of recurring nature will be awarded 5% of the first five years accumulated saving. In exceptionally during cases, Chairman and Managing Director may consider sanctioning of special monetary benefits accrued to the company consequent to implementation of suggestion. National Award Outstanding suggestion shall be nominated for the VISWA KARMA NATIONAL AWARD.

SUSPENSION
1) The appointing authority or any other authority to which it is subordinate or the disciplinary authority or any other authority empowered is that behalf of the management by general or special order may place as employee under suspension

CET MBA

34

a) Where a disciplinary proceeding against him is contemplated or is pending b) Where a case against him is respect of any criminal office is under investigation or trial. 2) An employee who is detained is custody, whether on a criminal charge or otherwise for a period executing 48 hours shall be deemed to have been suspended with effect from the date of detention, by an order of the appointing authority and shall remain under suspension until further orders.

PENALTIES
MINOR PENALITIES a) Censure b) Removal from work place for a period not exceeding 16 days with consequent loss of wages in service period. c) Withholding of increment of pay with or without cumulative effect d) Withholding of promotion. e) Recovery from pay or such other amount as may be due to him of the whole or part of any pecuniary loss caused to the company by negligence or breach of order. MAJOR PENALITIES a) Reduction to a lower grade or post or to lower stage in a time scale b) Demotion c) Removal from service which shall not be a disqualification for future employment d) Dismissal
CET MBA 35

SAFETY , HEALTH and ENVIRONMENT (SHE) POLICY

Protect environment, prevent pollution and eliminate occupational health

and safety risks through continuous monitoring and control of the impact of its activities, products or services on continual basis. Comply with all legal and other requirements, with respect to the organizations activities. Encourage concern and respect for the environment, health and safety of employees and subcontractors and adopt appropriate operating practices and training for the same. Set measurable objectives for continual improvement. Conserve raw materials, energy and reduce waste at source. Extended all support to agencies for creating awareness regarding good environment, health and safety policy to the public.

MAN POWER PLANNING OF THE COMPANY HLL

The long run manpower planning in HLL started with (Projecting manpower requirement) Following three imported factors should be analyzed to force the manpower requirement. The manpower requirement in the future depends up on the expansion or contraction in the size of the organization.
The rate loss due to know (retirement and transfer) and unknown (death,

registration) factor may be quessed.

CET MBA 36

 Job analysis a prediction of capabilities in the people performs the job

effectively. MANPOWER DATA Total strength of employees Representation of SC community Representation of ST community Representation of OBC community -1904 - 308 - 87 - 467

RETIREMENT POLICY
There is number of huge amount of pension after retirement a retired candidate will get Gratuity and PF. GRATUITY Gratuity liability is estimated based on the valuation provided by LIC at the end of the year as per LICs groups cash accumulation scheme and is funded as per the premium demand raised by LIC. LEAVE ENCASHMENT The reundad tirement benefit relately to leave encashment is funded through a scheme of LIC India. VOLUNTORY RETIREMENT SCHEME The entire liability on account of payments under VRS off to the profit and loss account is the same year.VRS is only given to the applications who have applied on companys issue notice. At present this scheme is not there.

CET MBA

37

4.2 MARKETING DEPARTMENT

MARKETING AND LOGISTIC DEPARTMENT The head office of marketing department is at Chennai. Logistic is the Function carried out by marketing department in corporate head office According to Philip Kotler, The marketing concepts holds that the main task company is to determine what a given set of customers needs and wants and values and dedicate the organization to delivering the solution. HLL LIFECARE LIMITED took earnest steps to develop a marketing network away back in the nineties two decades of dedicated efforts in brand building and market development have resulted in a sound marketing infrastructure, which helped HLL to introduce an impressive products range in the domestic and global markets. HLL LIFECARE LIMITED has separate marketing and sales department. The marketing department responsible for commercial marketing which the sales department is in change of Government orders obstained from the Union Health Ministry. HLL Lifecare Limited has separate marketing and sales department. The marketing department responsible for commercial marketing while the sales department is in charge of Government orders obtained from the Union Health Ministry Marketing Mix Marketing mix is the policy by manufacturers to get success in the field of marketing. The basic marketing mix in HLL Lifecare Limited is
CET MBA 38

PRODUCT
The various products produced in HLL Lifecare Limited are :1. CONDOMS:a) Free supply b) Sathi c) New lubricated d) Mithul e) Saval f) Milan g) Masthi h) Thrill i) Bilss j) Delux k) Ieevan l) Nymph Commercial Brand (Moods) a) Ribbed b) All night c) Chocolate d) Banana

CET MBA

39

e) Colored f) Jasmine g) Musk h) Rose i) Strawberry j) Extra long k) Dotted l) Ultra Thin There are 2 types of packaging, primary packaging (foil) and secondary packaging. (Wallet, Dispenser carton, Master) 2. CONTRACEPTIVE TABLETS a) Saheli(the only non steroidal pill) b) Mala-D c) Mala-N d) Novex e) Arpan
f) Preventol (emergency pill) 3. BLOOD BAGS (of varying volumes, like 150ml,300ml, 450ml,..)

a) Single bag b) Double c) Triple d) Pediatrics e) Transfer bags

CET MBA 40

4. COPPER-T a) T-Care 200 B b) T-Care 380 A 5. TISSUE EXPANDER It is used by plastic surgeons for the re-construction surgery caused by birthmarks, scars etc. It is a superior from of skin grafting. The device is implanted under the good skin adjacent to the mark. There are different types of tissue expanders based on requirement. 6. HYDROCEPHALUS SHUNT a) Ceredrain b) Ceredrain VA 7. SUTURES a) Hilon b) Hinsurg c) Hisit d) Hinlene e) Hinbond f) Hicon-chromic 8.TUBAL RING This is another contraceptive device, manufactured by HLL Lifecare Limited.

HLL
CET MBA 41

CONDOMS CONTRACEPTIVE

COPPER-T

BLOOD BAG

TABLETS HYDROCEPHALUS SHUNT

TISSUE EXPANDERS SUTURES

TUBAL

RINGS

New products& variants

Crezendo-vibrating ring HLL LIFECARE LIMITED Chairman &Managing Director, Mr.M AYYAPPAN introduced the newproduct crezendo-vibrating ring on 8th march 2007 Pan-flovered condoms-Aastha HLL Lifecare limited has launched a pan-flovered

condom,targeting commercial sex workers.pan flover was the most accepted one,especially to meet the customers requirement.said S.G Sridar,GM marketing HLL lifecare. Moods get closer pack The get closer pack has right thing for,both partners six different of male condoms plus old spice for the male partners and new female condom.Female condom was introduced for the first time in India through moods get closer pack. Moods glow condoms
CET MBA 42

HLLbecoms the first company in India to launch the glow condoms.This unique product add fun to the act of love making,glow condoms are prosphorescent and hence glow in the dark. Moods variety pack It is another new introduction certainly differentiates the brand with its beautiful packaging and the innovative offer. Moods XXX condoms Moods XXX condom has been inroduced in the market recently.this is a 3-in-one condom which is dotted,ribbed and flovered. PRICING The pricing decisions should take into profit margins and the probable pricing decisions of competitors. Pricing includes not only list price but also discounts, subsidies, etc. HLL Lifecare Limited follows different strategies to different products. The pricing policy is carried out at marketing department Chennai

CONDOMS

CET MBA

43

FREE SUPPLY NIRODH SUBSIDIZED DELUX NIRODH, USTAD,SUPER DELUX, NEW SUPER DELUX

COMMERCIAL MOODS

CONTRACEPTIVE PILLS

FREE SUPPLY

COMMERCIAL SAHELI,NOVE X PREVENTOL

SUDSIDIZED MALA-D, ARPAN

REGIONAL OFFICES The companys marketing head office locals at Chennai and it has regional offices in Delhi, Calcutta, Bombay, Chennai and Bangalore.

CET MBA

44

Northern Region Delhi Delhi Rajasthan Punjab Haryana J&K Himachal Pradesh Uttar Pradesh Uttaranchal

Eastern Region Calcutta Bengal Jharkhand Orissa Assam Meghalaya Mizoram Manipur Andhra Pradesh Sikkim Nagaland

Western Region

Southern region Chennai/Bombay

Maharastra Gujarat Goa Madhya Pradesh Chattisgarh

Kerala Tamil Nadu Andhra Pradesh Karnataka Pondicherry

PROMOTION HLL Lifecare Limited gives incentives to stockiest and retailers for sales promotion. Purchase of 10 cartons of HLL Lifecare products 1 carton

CET MBA

45

Occasional gifts schemes are also provided to retailers like camera, TV, gift coupons, scratch cards, etc

For every 60,000 rupee worth of condoms brought by the company Reimburses Rs 1800

1 case of moods is provided free with every 12 cases > 1 cases > 27 pieces. Commission is given to every strip Saheli (wholesaler- 15 Ps and retailer-12Ps)

3% cash discount is provided for full cash payment

Advertising HLL Lifecare Limited is assisted by various department agencies like Lintas etc for effective advertising. The different advertising medias rely upon Press Publicity :- News papers, Magazines for MOODS , SAHELI Broadcasting advertisement media like TV, Radio for MOODS, MALAD PLACE Place and Placement decisions are associated with the channels of distribution that serves as a means of getting tha product to the target customers. Distribution HLL Lifecare Limiteds distribution is maintained into a two-tier known as clearing and forwarding agency (C&FA) system. Distribution in Government Products like NIROD, MALA-D and CU-T are marketed directly to Government. The ministry places an order to company, to which HLL Lifecare Limited supplies to the Government medical stores and health centers.

CET MBA

46

HLL

C&FA CUSTOMER

STOCKIST

RETAILER

Direct Marketing HLL Lifecare Limited started direct marketing from 1991. Direct Marketing is split into 3 divisions CBU The contraceptive business unit of HLL Lifecare Limited is the strategic business unit of the company with its mandate to help HLL Lifecare Limited leader in the commercial and subsidized contraceptive market. This unit is responsible for conceptualization and implementation of the brand building programmes. The CBU with the base of the corporate office and regional offices at four metrus are developed as a strong sales and distribution network throughout the country. The logistics management for social marketing brands of condoms is also the responsibility of this division. CBU can be considered as FMCG. Its distribution chain structure CBU ( Contraceptive Business Unit) HCBU (Health Care Business Unit) IBU (International Business Unit)

CET MBA

47

Direct to Hospital

HCD

Distribut ors

Hospit als

Market Segmentation

HLL Lifecare Limited has divided Indian markets into 4 segments Southern - Kerala, TamilNadu, AndraPradesh, Karnataka Northern Delhi, Haryana, Himachal Pradesh, Rajastan Eastern Bengal, Orissa, Bihar, Assam Western Gujarat, Maharashtra, Punjab
CET MBA 48

Export Department It was started in 1990s. Main aim of starting an export department was To expand the business To make HLL Lifecare Limited and its path known Globally HLL Lifecare Limited is major supplier for UN, WHO and many other Countries since last decades. Products that come under Export departments Condoms Oral Contraceptive Pills Emergency Contraception Copper-T insertion Blood Collection Bags Surgical Sutures Gloves Hydrocephalus Shunt Needle Destroyer

MARKETING DIVISIONS
HLL Lifecare Limited is a professional marketing organization comprising of the following divisions Consumer Business Divisions (CBD) Hi care Division (HCD)

CET MBA

49

Women Health Care Divisions (WHO) International Business Division (IBD) Government Business Division(GBD) Vending Business Division(VBD)

Logistic divisions CBD (Consumer Business Division)

In this division it takes over the function of sending raw materials to the Carrying and Forwarding Agency (C&Fa).This is a third party distributor on commission . i.e., If the flow is as follows Factory

C&FA

Stockiest

Retailers

Customers

CET MBA

50

HCD (Health Care Division) This division is carrying on institutional sale. According to the requirement with PFT co ordination the flow of goods is as follows PFT co ordination

Factory

Distributor

Stockist

Retailer

Customer

CET MBA

51

WHD (Womens Health Division) This division will carry over the trading functions. It will direct goods to the Institutions from the factory. Trading process is carried on as follows Factory

C&FA

Upper stockiest

Stockist

Retailers Functions of logistic department Coordination with factors

C&FA/Depot (carrying& forwarding) agency management including

responsibilities like billing, taxing, commercial stock transfer To issue sample

CET MBA 52

 Distributor Order Processing Purchase, procurement based on requirements

4.3 FINANCE DEPARTMENT

Financial Management deals with recording of every transactions in monetary terms, analyzing them, preparing reports and ascertaining financial position of the company. In HLL Lifecare Limited an intelligent system of accounting is followed. The financial department is meant for the effective utilization of the funds. The accounts and financial statements are prepared with precision accuracy well in time. Usually transactions are recorded as they occur. Book keeping is the recording of transactions in a systematic way. HLL Lifecare Limited is a Government and hence there is no private investment by outsiders. Its shares are not listed in the stock exchange and the shares are held by the Government. The company rate of income tax is applicable and proper returns are filed as on date. Investment decisions are made at the management level with the Government approval only. Finance department has been computerized on 1997-1998. Finance department of HLL is a diversified one which performs Some of the prominent functions like:
CET MBA 53

Working capital management Foreign exchange management Liaisoning Preparation of report

DEPARTMENT HEIRARCHY

DIRECTOR

VP AVP

SENIOR MANAGER PROJECTS

MANAGER

ASSISTANT MANAGER

VARIOUS ACCOUNTING POLICIES 1. Accounting convention

CET MBA

54

The Financial statements are prepared under historical cost convention on accrual basis and in accordance with the accounting standards referred to in sec211 (3c) of Companies Act, 1956 2.Fixed Asset Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all incidental expenditure net of CENVAT credit wherever applicable. Revenue expenses incurred for identification of new projects/new line of businesses are treated as capital work-in-progress. This will be absorbed in the project cost in the year of commencing the business. If the new project/new line business does not materialize with in a period of three financial years, the entire expense will be charged to Revenue in the third year. 3. Investments Investments are stated at cost less provision of diminution other than temporary, if any. Valuation of inventories The weighted average formula is used for the valuation of raw materials, stores and spares Work-in-progress materials in transit/under inspection are carried at cost. Unused Loose Tools are re-valued every year taking into account useful life of tools and carried at the re-valued cost. Finished goods manufactured/goods purchased for trading are valued at lower of cost/net realizable value, including excise duty, wherever applicable. Manufactured/traded finished goods in stock whose self life expire by30th June are taken at NIL 4. Research and development Capital expenditure on Research and Development is treated in the same manner as Fixed Asset. The Revenue Expenditure on Research and Development is charged off in the year in which it is incurred 5. Retirement
CET MBA 55

Gratuity Gratuity Liability is estimated based on the actuarial valuation

provided by LIC of India at the end of the year as per the LICs Group Gratuity Cash Accumulation Scheme and is funded as per the demand raised by LIC Leave Encashment The retirement benefit relating to leave encashment is funded through a scheme of the LIC of India. The annual demand raised by LIC is charged to the revenue Voluntary Retirement Benefit The entire liability on account of payments under VRS is charged off to the Profit and Loss account in the same year. Post Employment Medical Benefit The employees (including his/her spouse) on the rolls of the Company as on 01.07.2005 are covered under Group Medical Insurance Scheme of M/s National Insurance Company Ltd. 6. Revenue Recognition Sales compromise of value of sale of goods excluding sales tax and discounts but including exice duty. Insurance claims are accounted on receipts basis. Interest on Investments is booked on a time proportion basis taking into account the amount invested and the fixed rate of interest 7. Prepaid Expenses Prepaid expenses of items of Rs.2000/- each and below are charged off the revenue 8. Depreciation

CET MBA

56

Fixed asset Depreciation has been provided as per the rates prescribed under Schedule XIV of the Companies Act, 1956 amended upon date. Additions to fixed assets from 01.04.1993 costing Rs5000/each or less as fully depreciated irrespective of date of addition. The depreciation on addition to/deductions from fixed assets are provided on monthly pro-rata basis

Machinery spares(method of depreciation) Machinery spares acquired with the equipment are depreciated using the same rates and method applicable for the original machinery In the case of machinery spares provided separately for future use, rate equivalent to accumulated depreciation for the expired life of the relative machinery are charged in the year of acquisition along with the depreciation of the year

9. Intangible Assets Cost of computer software and License fee incurred from 01.04.2003 are classified as intangible assets. The cost of computer software is amortized equally over a period of 3 years o n pro-rata basis. License fee paid is amortized equally over the agreement period 10. Sales Promotion Expenditure Expenditure on launch of new projects and promotional expenditure on new brand of existing product variants are treated as differed revenue expenditure. In the case of new products, such expenditure is charged to revenue in the second year of the launch as the sale would start picking up, whereas in other cases,50%of the expenses are deferred and charged to revenue in the succeeding the year

CET MBA

57

11. Miscellaneous income The revenue against realization of waste Latex, rejected condoms are accounted on cash basis. Duty drawback/export incentive In respect of export sales are accounted in the year of export. The realization in respect of obsolete assets/materials written off accounted on cash basis 12. Foreign Currency Transactions Foreign currency receivables/payables are translated at year end exchange rates. Gain or losses arising out of such transactions are adjusted to the Profit and loss accounts

13. Bonus Provision for bonus is made on the basis of productivity Linked Incentive Scheme 14. General Stores/Spares Raw material/Finished Products The provision for loss, if any, in respect of slow moving items of materials/finished products are accounted after obtaining the technical opinion regarding the usability/marketability 15. Government Grants Grants in the form of Investment subsist are credited to separate reserve Revenue grants/subsidy relating to sales are disclosed separately under other income 16. Impairment of assets Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of the asset is estimated
CET MBA 58

and if such estimation is less than its carrying amount is reduced to recoverable amount 17. Borrowing Cost The borrowing cost incurred/attributable to the acquisition of the purpose of obtaining a qualifiable asset are capitalized. Interest on loan taken specifically for the acquiring assets and the interest thereon are proportionately allocated to respective assets based on asset value 18. Lease Fixed assets acquired and given on lease are shown part of fixed assets. Lease rental income is accounted on accrued basis 19. Prior Period expenses/Income Income and expenditure relating to prior period exceeding Rs.5000/- in each case only is accounted under prior period

BALANCE SHEET AS ON 31ST MARCH 2009 (Rs. in lacs) SCH 2007-08 SOURCES OF FUNDS SHARE HOLDERS FUND Share capital 1,553.50 Reserve &surplus 10,688.95 LOAN FUNDS Secured loan 6,699.94 Deferred Tax Liability 100.14
CET MBA 59

2008-09

1 2

1,553.50 11,249.99

3 4

969.17 143.36

TOTAL 19,012.53 APPLICATION OF FUNDS FIXED ASSETS Gross block 5631.40 Less: depreciation 8,336.52 Net block 5,631.40 Capital work- in- progress 839.15 6 5 5

22,416.02

7,289.69 9,004.05 7,289.69 3,541.53 10,831.22

6,470.55 INVESTMENTS 308.45 CURRENT ASSETS, LOANS & ADVANCES Inventories 4,338.32 Sundry debtors 12,954.38 Cash and bank balances 1644.80 Other current assets 426.57 Loans and advances 2961.20 A 22325.27 Less: CURRENT LIABILITIES PROVISIONS Current liabilities 9632.57
CET MBA 60

506.70

8 9 10 11 12

6,130.51 13,235.80 5.504.47 373.62 3059.50 28,303.90

13

16,544.99

Provisions 459.17 B 10,091.74 Net current assets 12,233.53 TOTAL 19,012.53 (A-B)

14

670.81 17,225.80 11,078.10 22,416.02

Schedule 1 to 26 from part of accounts

CET MBA

61

OBJECTIVES
To estimate the earning capacity of the firm. To gauge the financial position and the financial performance of the firm.

To judge the solvency of the firm. To determining the long term liquidity of the funds. To determine the debit capacity of the firms. To decide about the future prospects of the firm. To know the progress of the firm. To measure the efficiency of operations.

CET MBA

62

4.4 PROJECTS DEPARTMENT

VP (Projects)

AVP (Project Finance)

DM (P)

DM (P)

AM (P)

AM (P)

AM (P)

The projects department at the Corporate head office is only

three years old The Strategic Planning Departments identifies and finalizes the

areas to carry over the projects The main function of the department is to carry over the

objectives of the company There are project departments for each unit of the company Projects department have achieved a plant for Pregnancy

detection kit manufacture at Uttar Pradesh

Currently the company identifies 2 areas to grow like Medi park,

Integrate vaccine complex, Auto disabled syringe, Revival of Central Research Institute at Himachal Pradesh.

CET MBA

63

4.5 IT DEPARTMENT
DEPARTMENT HEIRARCHY

DVP (Managerial)

SM (CHO)

MANAGER (HW)

MANAGER i/c

DM

DM

DVP (Operational)

S/W

H/W

N/W

Security

DBA

Website and Email

IT department provides service and support for software, hardware, networking and security services required for the company, Software support include development and maintenance o various software services like EIMIS, Intranet site mailing services, website, and time office EIMIS(Enhanced Integrated Management information system) is an EPR like Customized software application with ORACLE DATA BASE 9i DS. EIMIS maintains information for the modules: production, purchase, stores, sales, finance, engineering quality control and personnel. Website provides various information about the company for the public. The time office is also control by the system department where automatic punching system is the criteria for the attendance. There is Logistic Information System (LIS Software) which is hosted up to the C&FA Agents. Also there is workflow software development in Java Script. This is useful for notes sending; leave application, day today activities.

CET MBA

64

All factories are computerized and there is connection to the Head office from each unit through WAN and ISDN is used for redundancy. The connection is limited to the login name and password.

HISTORY
1983: Individual Soft wares 1985: The department started with 3rd generation computers. Payroll processing and financial accounting was done. 1989: LAN system was formed. There after integrated stores and account. 1991: A project was put forward to integrate all functionalities at unit as well as Corporate level INTEGRATED MIS (1-MIS) 1-MIS was implemented in a phased manner. 1992-2002: several improved software package were incorporated. 2003: A major revamping in the current 1-MIS system. 2004: EIMIS project was put forward. 2005: EIMIS was implemented. 2010: Successful completion of process study for implementation of business process, study for implementing ERP.

Activities
Hardware updation & maintenance

Software development & updation

Network creation & maintenance CET MBA 65

Software related activities

o Identifying user level needs o Analyzing the requirements o Designing the systems o Developing software o Implementing and follow-up

Hardware related activities

o Installation of hardware equipments o Updating and changing technology o Attending hardware breakdown o Maintain and modernizing network facilities
o

Asses delivery performance based on materials departments, assessment

4.6 QUALITY ASSURANCE DEPARTMENT

Quality Systems Building a company with a world class quality At HLL, delivering value to our customers is our primary objective. Our customers count on us to deliver quality products on time, every time. We believe that by utilizing our quality processes, we will provide added value to the product, which our customers require and deserve. We achieve this goal by focusing on our Quality Policy and unending commitment to our customers.
CET MBA 66

Quality Policy HLL is committed to:

Provide products and services, conforming to international standards in healthcare, enabling people lead healthy and happy lives.

Achieve organizational excellence through continual improvement by adoption of best technologies and practices in all areas.

Market products and services globally delivering highest value for customers through focus on innovation, quality, R&D, cost management and customer relationship management.

Be an organization meeting highest standards in Corporate Governance and Corporate Social Responsibility.

Commitment to Quality Systems HLL underlines its commitment to quality by mandating that all our manufacturing facilities are certified to a quality system standard. Our manufacturing facilities conform to requirements of ISO 9001:2000, ISO 13485 and various international product certification marks, thus offering best value to our customers in conformance with international standards. SAFETY, HEALTH AND ENVIRONMENT (SHE) POLICY HLL is committed to protect environment, eliminate occupational hazards and ensure safety of employees & subcontractors through: o Monitoring and control of the impact of its activities, products and services on a continual basis; o Compliance of applicable legal and other requirements; o Adopting appropriate operating practices; o Facilitating employee training and their involvement;
CET MBA 67

o Pollution mitigation through adoption of best practices; o Conserving materials, energy and reducing waste at source, and / encouraging usage of renewable energy sources; o Periodic review of safety, health and environment management system. SHE Management System Certifications At HLL, we believe that preserving natural resources and protecting the environment is our responsibility to our employees, our customers and the communities in which we operate. We are also committed to health and safety of our employees and as part of this responsibility we have developed and are maintaining excellent environmental, health, and safety management systems that meet the requirements of ISO 14001 & OHSAS 18001.

CET MBA

68

4.7 VIGILANCE DEPARTMENT

The vigilance department is functioning based on the ethics In every Government Institutions there must be a vigilance department
The structure of the department consists of the Chief Vigilance Officer

and 2 Assistant Managers It is a part of Human Resource activities When there is any vigilance problem a co ordination with HR activity is made It comes when a persons integrity become questionable
It interact with police, CBI ,etc

It exercise the power of jurisdiction over all the employees

CET MBA

69

4.8 STRATEGIC PLANNING DEPARTMENT

Strategic planning department started functioning as a separate wing in HLL LIFE CARE LTD., Poojappura in 2003. The main function is to carry forward corporate vision and plans ahead. HLL has drawn up a comprehensive plan to expand its portfolio in the area of Health Care and Contraceptives-its core areas, to achieve rapid growth. The objective is to achieve through this process a turnover of Rs.100 crores by 2010. With nearly 1900 highly skilled and learned manpower, and several world leaders as partners, HLL has over the past four decades stood up to uphold its mission to achieve and sustain a high growth path, and focus on five key thrust areas to achieve its vision. These are - customers, employees, business, innovation and social initiatives. In the future, through technical collaborations, marketing alliances and joint ventures, HLL wishes to keep alive the dream of all humanity of a healthier, happier world. Functions of strategic planning development Generation of ideas to develop innovative products Globalize on Health Care field Exercise Corporate Planning SWOT analysis in feasibility study Preparation of feasibility report

CET MBA

70

 The product management group in marketing and production department work hand in hand with strategic department Monthly review on marketing and production department Acts as a link in solving discrepancies between the marketing and production department Suggestion of Natural Product Division was put forward by the Strategic Planning Department A unique opportunity provided to the employees of Strategic Planning Department is to participate in the Annual Plan Meet. It is an open forum where the members are free to put forth their suggestions and ides.

4.9 Public Relations Department

Key Areas of Responsibility Responsible for Corporate Media Relations- Press and Satellite Channels
Liaison

with Advertising Agents for creatives for Corporate

Advertising, Corporate Literature, Film, Annual Report Design, Corporate Standardization. Liaison with all local publics and influence groups Functioning as the Companys Public information Officer under the Right to Information Act 2005 Writing Articles, Speeches Corporate and for the Chief Executive, preparation of write ups, materials for all corporate communication Editing and publishing the Companys Newsletter Release of all Appointments and tender advertisements for all Units of HLL
CET MBA 71

 Release of all Corporate Advertisements locally and nationally, in various national Publications and on the occasion of our participation in events various- Social, Cultural, Educational and Sports Institutions and bodies and organizing, creative work for these local publicity efforts. Organizing Events and Brand launches All Corporate Protocol matters relating to visit of personages such as Parliamentary Committees, Union Ministers, Union Secretaries and other eminent persons and liaison Departments for the purpose Organizing meetings in the State such as Board Meetings, ConferencesNational and International and all related infrastructural work Monitoring Press reports particularly through the local press on matters affecting the organization and other related areas of interest to the organization Updating matter on the Companys Website Matters relating to CSR activities of the Company with related Government

CET MBA

72

4.10 SECRETARIAL AND LEGAL DEPARTMENT

The Secretarial and Legal Department deals with all the administrative and legal aspects of HLL Lifecare Limited. An overview of the department can be better understood from the figure as illustrated below: SECRETARIAL The main functions coming under secretarial section are as follows; Ensure compliance with corporate laws Advise on the best practices in corporate Governance Ensure compliances with DPE guidelines/Office memoranda

Draft Pre-incorporation contracts, memorandum and Articles of Association Ensure compliance with Memorandum of Association, Articles of Association

and Delegation of Powers

Draft and incorporate amendments to MoA, AoA ,DoP in accordance with

correct procedures
Advice

on

Foreign

collaborations, Joint

ventures

and

shareholders

agreements Advice in Foreign direct Investments& overseas Direct Investment

Facilitates meetings of the Board, Sub-committee(s)of Board and Shareholders-

Prepare Agenda, Minutes and make other arrangements

CET MBA 73

Maintain/Update Statutory Registers Prepare reports/returns to be submitted to MHFW, MCA, DPE other regulatory

authorities Co-ordinates publication and distribution of annual report and accounts

Draft various agreements, petitions, legal documents Liaison with RoC, Auditors, Solicitors, Banks etc Advise on Foreign Trade Policy& procedures Advice on mergers, Takeovers& Acquisitions Review Due-diligence reports-Secretarial, Legal, Financial, Taxation, Techno

commercial and IPR point of view

Act as a vital link between the Company on the one hand and Board of

Directors/shareholders/Government/Regulatory Agencies on the other hand Advice on General &Commercial laws

Draft/Vet documents relating to arbitration, guarantees, counter guarantees,

bank guarantees HINDI Aim: Implementation of official language policy Company has implemented 8 Presidential Directions, OL Act & Rules & Annual programme for the year 2009-10 with utmost devotion. Activities include training of employees in Hindi Prabodh, Praveen and Pragya courses to employees for acquiring working knowledge in Hindi and thereafter workshops and refresher training to fully conversant with official Hindi. Includes promotional activities for creating a favorable atmosphere in the company for propagating Hindi. The company has a CD Library of Hindi movies which helped the employees to learn Hindi with interest. Cash prizes are
CET MBA 74

provided for encouraging the employees to write articles, noting and drafting in Hindi. Cash awards are provided for to students of employees with more than 90% marks in Hindi examination. Company has provided Computers with bilingual facility to all employees to perform their duties in Hindi. Website is also hosted fully in bilingual. Companys official language magazine Samanvaya includes all activities of the company.

LEGAL The main functions covered under legal aspects are; Draft/Vet Loan/hypothesation agreements Service/Confidentiality agreements Outsourcing agreements Lease/Leave& license agreements Distributory/C&F agent/Agency agreements Supply/Procurement consultancy agreements Collaboration agreements

Draft/Vet deed of sale of and/building, Mortgage,

License/assignment, Trust, Power of attorney;

CET MBA 75

Draft Intellectual Property Rights related documents; Co-ordinate litigation-Initiate, defend and monitor the cases

(civil, Criminal, arbitration, customs, service tax etc..)pending in different Courts/tribunals; Draft legal notices are required/reply to legal notices

received;

Periodically verify for compliance with applicable rules and

regulations by different units/departments and report to the Board of Directors Ensure necessary compliances under the Right of Information

Act,2005 Otherwise oversee legal matters

4.11 PERSONNEL AT HLL

Vision
To position HLL as a global health care company that espouses highest values, Ethical standards and professionalism for the benefit of humanity, at large.

Mission
To accomplish the vision, by
CET MBA 76

Building cooperate reputation there by creating economic value by implementing coherent reputing strategies

Effectively communicating the commitment of the organization to its key

Stake holders, including customers, employees and communities. Guiding managements thinking on strategic issues ,especially during times of

Significant change.
Motivating employees to work more productively by providing focus and common goals

Communicating the message in clear, simple and precise language. Helping in establishing a frame for ethical behavior.

Achievements
To put it in a nutshell

HLL today enjoys a market share of 60% in the state of Kerala and. % in India. The corporate PR played significant role in creating goodwill and credibility

about the organization through appropriate media interventions

Structure and function

CET MBA

External communication Internal communication Highlights of activities

77

External communication-media relation Press release Press conferences One-to-one TV features Placement of company news in e-publications Write ups/articles for placements in news papers/other publications

Monitoring press reports on matters that concern the organization and

related areas
Interactions with media personnel on regular intervals to buildup

relationships and to create a good will External communication-Corporate advertising Generating visuals and copy for corporate ad Placement of Corporate Ads in various publications at state and national level

External communication- utility Advertising Release of Ads for recruitment, tender, notices

Release of all classifieds on behalf of all units of hll in a cost effective

manner and in appropriate media, depending on the recruitment Release of publicity materials at events conducted by organizationsagencies/agencies
Release of corporate advertisements locally and nationally for various

worthy events Right to information Act

CET MBA 78

Full requirements under RTI Act Head ,PR functions as Public Information Officer of the

company under RTI Act 2005 Internal communication Corporate monthly:corporate News Corporate Quarterly:Family Corporate Brochure Corporate Film (in making) Design and Publication of Annual Reports Updating of corporate matter on Web sites Internal Surveys Creative support for delegation meetings Creating supports for events Protocol Assistance Speeches ,write ups
Information dissemination to top management, key functionaries for timely decisions-actions.

CSR Activities Coordinates CSR activities of the company

CET MBA

79

HLLS PARTNERS In its search for becoming a truly world class provider of health care products and services HLL has been seeking to adapt knowledge from its partners. HLL has over the years been networking with various corporate organizations, development agencies and NGOs by combining strength and capabilities of several world class leaders. Some of them are listed below; Okamo Industries Inc. for male condoms Female Health Company(FHC) for manufacture of Finishing Enterprises, USA for Copper TUID Helm, Germany for distribution of DMPA(Depot Arya Vaidya Sala(AVS),Kottakkal, Kerala, for

Female condoms and its promotion in Asia

Medroxyprogestrone Acetate) in India Ayurvedic products Bharat Biotech International limited for Hepatitis B and Chengudu Institute of Biological products for the supply Cycle TechnologiesInc.USA for manufacture and Typhoid vaccines of JE Vaccines to Government of India distribution of Cycle Beads in India and abroad More than 300 NGOs for implementing population stabilization and HIV/AIDS prevention and control programmes

CET MBA

80

COMPETITORS OF HLL LIFE CARE LIMITED

GLOBAL COMPETITORS
1. ANTZ Latex private Ltd. Singapore 2. ANSELL Ltd. Australia 3. Sinchem nimbo medical company Ltd. China 4. Green mate corporation, South korea 5. Maper company, China

DOMESTIC COMPETITORS
1.

TTK, Produces 425 million pieces of condoms every year under

the brand name KOHINOOR, FIESTA,CHAMP AND DUROPACK. 2. 3. 4. JK Groups KAMASUTRA Polar latex which ADAM brand of condoms Thermo pinpole

CET MBA

81

CHAPTER 5 COMPETITION ANALYSIS

SWOT ANALYSIS

To identify the Strength and weakness of the firm and threats and opportunities in the environment is the corner stone of business policy formulation. These factors determine the course of action to ensure the survival and growth of the firm. The environment might present many opportunities, but a company not has the strength to meet the environment threats. SWOT analysis has become a very important tool in strategic management.
STRENGTH

HLL Lifecare Limited has a capacity of 144 billion in the condom manufacturing

Single largest producer of condoms in the world Organizational climate prevailing in the company is similar to that of the best companies in the private sector in the same industry.

Company continues to be the largest social marketing partner of Government of India.

Only company in the world in manufacturing and marketing the widest range of contraceptives.

The company has always been rated as very good excellence by the department of public enterprise for its performance.

CET MBA

82

HLL has the highest quality certifications awarded by reputed international agencies like ISO 9000, CE and SABS etc.

Strong and sound infrastructure for direct marketing Strong alliance with multination companies Company is financially sound Vast distribution network covering the length and breadth of the country which helps to increase the reach of its products even to the remote corners of the company

Not a single man day was lost due to strike or lockout during the last 15 years which shows excellent industrial relations

Launching of new product and variants every year Products are exporting to over 70 countries Heavy investment in R & D Good relationship with management and employees Collaboration with giants includes OKA MOTO of Japan; Finishing enterprise USA; Becton and Dickson USA; Beijing ZIZHU Pharma of China and Acumen. Fund, USA

Strong goodwill among the customers One of the top ten public sector undertaking HLL enjoys the patronage of the Government in the central and state Distribution system is better than competitors

WEAKNESS

Excessive dependence of Government orders

83

CET MBA

Most of the brands are not readily available for the retailers All brands except Moods relatively low market shares in the open market

OPPORTUNITIES

Facilities for expansion Potential market for HLL Lifecare Limited products abroad and within India

HLL intends to bring the entire group of contraceptive under one roof, which will enable the company to bring about a balanced product mix

Health conscious among the society.

THREATS
Trade barriers are decreasing so increased foreign competitors as well as domestic competitors Competition in the domestic market particularly for condoms Companys overdependence on Government orders Disinvestment policy of Government Influence of union government in policy matters that disturbs the companys growth 5.2 PORTERS FIVE FORCE ANALYSIS The model of the Five Competitive Forces was developed by Michael E. Porter in his book Competitive Strategy: Techniques for Analysing Industries and Competitorsin 1980. Since that time the 'five forces tool' has become an important method for analyzing an organizations industry structure in strategic processes.
CET MBA 84

Porter identified five competitive forces that shape every single industry and market. These forces help us to analyze everything from the intensity of competition to the profitability and attractiveness of an industry Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.

Porter's five competitive forces

1.

Threat of New Entrants

The easier it is for new companies to enter the industry, the more

cutthroat competition there will be. Factors that can limit the threat of new

CET MBA

85

entrants are known as barriers to entry. The threat of new entries will depend on the extent to which there are barriers to entry. Brand loyalty of customers Distribution channels are controlled by existing players Legislation and government action High switching cost for customers HLL has high switching cost. HLL is heavily depending on Government orders.
2.

Power of Suppliers
This is how much pressure suppliers can place on a business. Supplier

bargaining power is likely to be high when The market is dominated by a few large suppliers rather than a fragmented source of supply There are no substitutes for the particular input The switching costs from one supplier to another are high HLL was dominated by few suppliers. The switching cost of HLL products is high. The power of suppliers is high because the brand name is powerful.
3.

Power of Buyers
This is how much pressure customers can place on a business.

The bargaining power of customers determines how much customers can impose pressure on margins and volumes. In HLL the bargaining power of buyers is high because there are large players in the market.

CET MBA

86

4. Availability of Substitutes
A threat from substitutes exists if there are alternative products with lower prices or better performance parameter for the same purpose.HLL introduced many substitutes. 5. Competitive Rivalry This describes the intensity of competition between existing firms in an industry. Highly competitive industries generally earn low returns because the cost of competition is high HLL have many competitors and the competition between existing firms and HLL is very high. And HLL has low market growth rate

CET MBA

87

CHAPTER 5
FINDINGS , SUGGESTION AND CONCLUSION FINDINGS
HLL has an excellent work culture and the top management is really committed towards the organization development.

Welfare facilities provided are very good. In Kerala it has the market share of 60 %. HLL having market share of over 70% in the rural and semi urban market.

HLL lifecare limited exporting products world wide. Their exist a healthy and safe working environment for employees in the organization.

There are so many brands for single products and hence the consumers get confused.

HLL Lifecare limited has an excellent work culture and the top management is really committed towards the organization development.

Not a single man day was lost due to strike or lockout during the last fifteen years which shows excellent industrial relations.

Employees are considered as their asset and their health welfare and safety is given prime importance.

Gifts, reimburse scheme, commission to wholesalers and retailers, cash discount and advertisement through press publicity and broadcasting are the major promotional tools used by HLL.

CET MBA

88

Direct recruitment, promotion, deputation, transfer are the sources of recruitment.

Depending heavily on government orders Lack of advertisements. Effective social marketing program as per the need of the society.

CET MBA

89

SUGGESTION
Ensure that there is proper linkage between organization and individual needs. Employees are the major assets of any organization. Hence, retention of the skillful employees needs to be focused on. Depending heavily on Government for orders may not be good. Direct Marketing is an area to be concentrated much to increase the over dependency on Government orders. More advertisements to be concentrated on.

CONCLUSION
CET MBA 90

The organization study which was conducted at HLL , Trivandrum(Kerala).HLL LIFECARE LIMITED is the one and only public limited company in India that produces a wide range of contraceptive aids and health care products. Organization study helped significantly to get a feel of the real world industry and organization climate. The study about various departments and their functioning contributed to bridge the gap between the theories and practical knowledge. HLL has been the flag bearer of the change that is sweeping across the country in recent years. The company establishes itself as the leader of the products segment in the market. Social Marketing is the key areas of the company. HLL has recorded consist excellent working results; high productivity and good work atmosphere, which has also lead to the reduction of rejection of wastage at different stages of production. The company with its vision of INNOVATING FOR HEALTHY GENERATIONS hopes to become a world leader in the area of reproductive healthcare. With all these company will be able to achieve its objectives of becoming a world class health provider with by 2010 will a turnover of 1000 crore company.

BIBLIOGRAPHY
CET MBA 91

Departments of HLL Lifecare Limited Annual Reports of HLL website Project reports

CET MBA

92