WCCLG, TUMKUR

1. Industry profile
In this competitive economy FMCG (Fast moving consumer goods) market is having significant demand in low to middle income consumers and above all highly price sensitive. It consists of goods, which are directly consumable, packaged and branded. The FMCG market in India has undergone extreme changes following Economic liberalization, qualitative and quantitative restrictions under the new trade policy. India stands as the third largest industry in FMCG industry after textile and petroleum. The profile of FMCG industry food and processed foods, personal care products and dental products. Insecticides, liquor, batteries are also included in this category. Progressive reduction in excise duties on major FMCG product categories, rapid extensions of media reach especially TV, considerable caring of licensing restrictions are some of major drives if the Indian FMCG market in the recent past.The industry contributes to the exchequer by way of income tax and central excise to the extent of 95% and 16% respectively of the total collection. It provides considerable employment both in terms of the 1994 data; it provided 6% of the total 9.1 million. The industry has a significant rural bias and accounts for 56% of the total rural demand. The fast moving consumer goods (FMCG) market in India has undergone radical changes following economic liberalization, lifting of qualitative and quantitative restrictions under the new trade policies and the country coming under the ambit of WTO. Some of the major drivers of the Indian FMCG market in the recent past have been: Progressive reduction in excise duties on major FMCG product categories Considerable easing of licensing restrictions Rapid extensions of meds reach especially TV. Almost double the rate of economic growth as compared to the past and this growth spans all levels of society. For the consumer, the change has been heralded by a cornucopia of foreign brands now available legally on shop and helves, which were earlier produced only through the grey market. For the industry, the change has manifested itself in the entry of host of multinationals that has earlier kept away from the Indian market because of official restrictions. For the media, particularly the fledging electronic channels, the changes have come as an advertisement bonanza as the new players and the old slug it out in a promotional blitz to capture customer attention and market share.

SSIBM -2009

WCCLG, TUMKUR

SSIBM -2009

WCCLG, TUMKUR

2. Company profile

a. Background and inception of the company Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945.
Primarily an oil factory, the chief products. Primarily an oil factory, the chief products were sunflower vanaspathi and 787 laundry soap (a byproduct of the vanaspathi operations). The company was called western India products limited, with a modest presence in Maharashtra and Madhyapradesh. In the 1970s Wipro embarked on an ambitious phase of expansion and diversification. It was in the early eighties that Wipro made its foray into the consumer care products. Wipro, an organization which gives prominent importance to adopting technologies to suit the environment in which it carries on its business. Inspiration, experimenting and converting ideas into reality has been the culture of Wipro which results in getting the best output. Wipro has laid great emphasis on Quality and Research by undertaking Six Sigma projects. Wipro gives prior importance to the customer than organization with a human face remains unchanged over a period of time. Azim H Premji who is awarded as Best ethical person started the organization with Vanaspathi production and followed by Toilet soap manufacturing unit. Wipro consumer care and lighting has a profitable presence in the branded retail market of toilet soaps, hair care soaps, baby care products and lighting products. It is also a leader in institutional lighting in specified segments like software, pharma and retail. They have been one of the fastest growing FMCG companies as reflected by the organizational performance in the last three years. They have grown both organically and through acquisitions. Their growth has been lead by growth in toilet soaps (led by Santoor), domestic and institutional lighting and their recent foray into modular furniture. They have also gained from new launches in fabric wash and the wellness segment. In India, the growth rates of the segments they operate in have averaged around 14%, while they have grown at twice the market growth rates in the last three years.

SSIBM -2009

WCCLG, TUMKUR

Timeline: Wipro Limited was incorporated in 1945 and commenced its operations in 1946. Significant milestones are:

1945: Incorporation of Western India vegetable products Limited. 1947: An Oil mill and hydrogenated cooking medium plant was set up. 1966: Azim Premji takes over the leadership of Wipro at 21 years. 1975: Wipro Fluid power plant was setup to manufacture hydraulic and pneumatic
cylinders.

1977: Name of the Company changed to Wipro Products Limited. 1980: Information technology services for domestic market started. 1981: Hardware Company is launched. 1982: Name of the company changed to Wipro Limited. 1984: Software products subsidiary Wiprosystems Limited was established. 1985: Toilet soaps manufacture begins. 1988: Wipro BioMed, a new business unit to market and service bioanalytical and
diagonostic instruments is launched.

1989: Joint venture with GE of United States for medical systems, Wipro GE Medical
systems Limited.

1990: Product software business discontinued software services begin. 1992: Lighting business and finance arm is established. 1994: Merger of subsidiaries Wipro technologies Limited and Wipro systems Limited
with Wipro Limited.

1998: Relaunch of Wipro identity with Rainbow flower and positioning statement,
Applying thought.

1999: Wipro Net set up by restructuring Wipro Limiteds communication services

bsiness to address the internet market.

2000: Six Sigma initiatives begun 2001: Wipro becomes worlds first P-CMM level 5 company. 2002: Wipro becomes CMMi.

SSIBM -2009

WCCLG, TUMKUR

b. Nature of the business:

Wipro delivers unmatched business value to customers through a combination of process of excellence, quality frameworks and service delivery innovation. Wipros business can be broadly classified into the following 6 categories. 1) Wipro Technologies: Wipro technologies in the global IT services business division of Wipro Limited working in over twenty offices around the world, Wipro technologies use powerful technologies to provide services for business transformation and product realization as well as complete solutions for the service provider makes. 2) Wipro Infotech: Wipro Infotech is a division of Wipro Limited and provides customers with high value information technology solution, infrastructure services and platforms in India and is all said to offer high end technology services and solutions for the Asia, Pacific and Middle East Markets. 3) Wipro consumer care and lighting: Wipro consumer care and lighting is the FMCG arm of Wipro Limited which continuously introduces innovative products and adds value to the existing brands, each of which is the promise of good health and value for money. Its brands include Santoor, Wipro Shikakai, Wipro Active and Wipro babysoft. 4) Wipro Fluid power Limited: Wipro infrastructure engineering (formally Wipro fluid power) was the Wipros first diversification in 1975 to address the hydraulic equipment requirements of

mobile original equipment manufacturers in India. Over the past 25 years, the Wipro Fluid Power business unit has become a leader in the hydraulic cylinders and truck tipping systems market in India. Wipro Fluid Power intends growing its business by leveraging its dominant market share in India to serve the global manufacturing requirements of hydraulic cylinders and truck tippers. 5) Wipro GE Medical systems limited: Wipro GE Medical systems are a joint venture between Wipro and General electric Company. A part of GE Medical systems in South Asia, it caters to customer and patient needs with a commitment to uncompromising quality. Wipro GE is the market leader with unmatched distribution and service reach in South Asia and is Indias

SSIBM -2009

WCCLG, TUMKUR

largest exporter of medical systems. Wipro GE pioneered the manufacturing of ultra sound and computed to mography systems in India and is a superior for all GE medical sysems products and services in South Asia. 6) WiproePeripherals(WeP) Limited: Wiproeperipherals limited (WeP) is a leading IT peripheral solution services company in India.WeP commenced operations in 1986 as a peripherals division of Wipro Infotech, one of the largest IT Companies in India and then became an independent corporate entity in September 2000. WeP is Indias largest employee owned company, best known for innovation, e-enabled processes and customer forces.

SSIBM -2009

WCCLG, TUMKUR

c. Vision, Mission and Quality policy

Winning is about making customers successful. Winning is about making all stakeholders successful. In business, Winning is not about Winning against but its Winning With. Intensity to Win is the burning desire to stretch and challenge our limits. It is the desire to realize and expand our potential. Its about continuous innovation and striving to be better every time. Its about excelling in everything we do. Its about multiplying forces as a team. No one wins 100% of the time, but those who have the Intensity to Win, win more often than not.

Vision: Fuelled by culture and values Wipro is built on a foundation of Values. The values form the essence of their culture. The values are a guide to their behavior. With 75,000 people across 29 countries, its the values that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of Wipro. The spirit of Wipro is deeply rooted in their history and in what they are, and at the same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of Wipro- manifest it in thought and action.

Spirit Of Wipro
Intensity to win Make customers successful Team, Innovate, Excel
SSIBM -2009

WCCLG, TUMKUR

Act with Sensitivity

Respect for the individual Thoughtful and responsible

Unyielding Integrity
Delivering on commitments Honesty and fairness in action The spirit of wipro is an invisible synthesis of all three statements. It means manifesting intensity to win, acting with sensitivity and being unyielding on integrity all the time.

Mission: Quality has always been a strong part of Wipros proposition. Wipro boasts of many pioneering achievements in quality journey. Quality is focused on not only in the product or service that touches its customers, but also on internal processes and as an enabler facilitating on going business transformation to meet dynamic market challenges.

Quality policy: Their quality policy shall be: 1. To sustain a competitive edge in quality through continuous assessment of customers expectations and needs. 2. To pursue excellence in all aspects of production operation. 3. To promote a culture of conforming to specifications and requirements. 4. To involve people at all levels in the pursuit of excellence. 5. To spread a culture of excellence to all the vendors.

SSIBM -2009

WCCLG, TUMKUR

d. Product/Services Profile
TUMKUR FACTORY Activities of Tumkur factory: The Tumkur Factory manufactures the following products: 1. 2. 3. 4. Toilet soaps. Bathing bar Noodles for bathing bar and Toilet soaps. Distilled Fatty acids

In the process the following by products are generated. 5. Light ends 6. Pitch 7. Crude Glycerine Wipro consumer care business offers established brands addressing consumer needs in personal care, toiletries, and baby care and lighting categories. The product includes Santoor brand of soap and talc, Wipro Shikakai soap, milk and roses soap, Wipro baby soft range, Wipro active talc, Wipro brand domestic lighting, commercial and institutional lighting.

Table showing Wipro Products

Soaps Santoor Wipro Shikakai Wipro Active Milk & Roses Toiletries Santoor Talc Fairness cream Wipro Active Talc WBS Baby lighting Bulbs FTL C&I Lighting

Soap segment:
Roughly 50% of Wipros consumer care business comes from the toilet soap category. Where its biggest brand till date Santoor, holds way. Wipros share in the national toilet soap market is just 4.6% reflecting its skewed regional character in the FMCG sector. For instance, Wipro through Santoor is the leading soap markete in Andhrapradesh with 18% of market share. Chandrika enjoys strong equity in South India. The market for Ayurvedhic and Herbal products is growing and Chandrika

SSIBM -2009

WCCLG, TUMKUR

though not as large a brand as the Medimix is poised to take advantage of it. If the company wills it Chandrika, though not as well distributed in up country markets, like Jeeva from Jyothi labs and Medimix has good brand properties which Wipro can build. Wipro is extending milk and roses not only to sell in Punjab, to other states in the north. Wipro babysoft soap, pitted against global Johnson and Johnson accounts for 30% share at the segment in Andhrapradesh.

Lighting segment:
Lighting has seen considerable action especially in the commercial and institutional segment with niche verticals such as pharmaceuticals, retail, IT and outdoor media reporting significant growth. Wipro faces competition from Philips and G.E. in private sector order, while its up against Bajaj and Crompton in its bid to bag the Government sector pie. On retail side of lighting business Wipros overall market share is pegged at nearly 5% while Philips, which is a prominent player, claims a 36% market share.

Wipro consumer care & lighting has delivered improving return on capitol employed, which at last count was estimated at 86%. Its operating margins are over around 15% to 17%.

SSIBM -2009

10

WCCLG, TUMKUR

e. Area of Operation Wipro Technologies, the Global IT services division of Wipro Limited NYSE: WIT (incorporated in 1946, in operation since 1945) is an India based global IT services, IT solutions and technology services center; established in 1980 in India. It has its head quarters in Bangalore, and is listed on the Bombay Stock Exchange, National Stock Exchange of India and the New York Stock Exchange. As of 2004, it was the fourth largest company in the world in terms of market capitalization in IT services. Wipro technologies have 30 offices worldwide with 50, 100 employees and over 300 customers across USA, Europe and Japan including 50 of the Fortune 500 companies. Wipro has 54 dedicated development centers across India, Europe and United States and also has 30 offices in North America, Europe and Asia Pacific. In India, Wipro has operations in Bangalore, Mumbai, Pune, Chennai, Hyderabad, Gurgaon etc. Global Wipro Company today is a global corporation having operations in 29 countries through more than 50 subsidiary companies, a few joint ventures and associate companies. Americas United States of America, Canada, Brazil Europe UK, Germany, France, Sweden, Netherlands, Finland, Switzerland, Romania, Portugal, Austria Middle East United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, Egypt Asia Pacific India, Japan, China, Australia, Singapore, Malaysia, Taiwan, Hong Kong, New Zealand

SSIBM -2009

11

WCCLG, TUMKUR

f. Ownership Pattern Wipro Limited is a public listed company. The shares outstanding as of June 2006 are 1,43,19,92,871 equity shares. The shares beneficially owned by the directors include the equity shares owned by their family members to which such directors disclaim beneficial ownership. The number of shares beneficially owned includes equity shares, equity shares underlying ADSs. Azim H Premji who is also the chairman and managing director holds the majority share holding of 81.09% of Wipro Ltd. The non promoters holding comprising of Institutions like mutual funds, banks, insurance companies, foreign institutional investors and corporate bodies make up 5.13% and individuals hold the remaining 13.78%

SSIBM -2009

12

WCCLG, TUMKUR

g. Competitors information:
IT Services and products The market for IT services is highly competitive and rapidly changing. The competitors in the market includes global players like IBM, Hewlett Packward, EDS, Dell Accenture and Indian companies such as TCS, Cognizant Infosys, Satyam and HCL Info systems, It is anticipated that Lenovo, which has acquired thae PC business of IBM, will be a significant player in Indian IT products market. Global players like IBM and Hewlett packard and to some extent sun Micro systems have been increasingly focusing on increasing their presence in the Indian markets. Some of these competitors have secured large IT services contracts in India. . The ability to compete will depend on a number of factors not within control which include: The ability of competitors to attract, retain and motivate highly skilled IT services professionals. The extent to which international competitors expand their operations in India and benefit from the wage differential; The price at which competitors offer their services; and The extent to which competitors can respondent to a clients needs. In BPO services, the primary competition is against the in-house business process outsourcing units of international companies, other than IT service providers, global competitors from other shore locations like the Philippines and Ireland. Consumer care and lighting Competitors are located primarily in India and include multinational and Indian companies such as Hindustan Lever for soaps, toiletries and General Electric and Philips for lighting. Certain competitors have recently focused on sales strategies on increasing volumes through lower prices. Sustained price pressures by competitors may require Wipro to respond with similar or different pricing strategies.

SSIBM -2009

13

WCCLG, TUMKUR

h. Infrastructure facilities:
Wipros head quarters and corporate offices are located at DoddaKannellli, sarjapur road, Bangalore in India. The offices are approximately 3, 00,000 square feet. Wipro has purchased approximately 2, 62,000 square feet of land adjoining the corporate offices for future expansion plans. Wipro has one sales and marketing offices located in each of the following countries: Canada, France, Germany, Japan, Sweden, Italy, Switzerland, Finland, the Netherlands, the United Kingdom, China and Japan. In addition there are eleven sales and marketing offices in the United States. In addition there are eleven sales and marketing offices in the United Sates. Wipro operates in ten manufacturing sites, aggregating approximately 12, 64,871 square feet and approximately 4,037,997 square feet of land. It owns seven of these facilities, located in Amalner, Tumkur, Bangalore, Mysore, Hindupur and Chennai and Pondicherry in India. It has leased on a long term basis two facilities located in Waley and Baddi, India. There is one software development facility in London, United Kingdom equipped with a world class technology infrastructure that includes networked work stations, servers, data communication links, captive power generators and other plants and machinery.

Tumkur factory layout Total site available Plant & Building area % of utilization : 20 Acres : 8 Acres : 41% :12 Acres :59%

Plantation Area % of utilization

SSIBM -2009

14

WCCLG, TUMKUR

i. Achievements/Awards
Wipro has made a name for itself as a company providing reliable services worldwide. The technological expertise and service skills exhibited by Wipro have been appreciated by its list of clients scaling various industry sectors. The media has been quick to document the impressive work, milestones and awards achieved by Wipro. Wipro only Indian company in the business weeks IN25 Champions of Innovation list. Wipro BPO recieves prestigious Outsourcing Excellence Award. Named India times BPO Company for the year. Only Indian company to be ranked among the Top 10 Global Outsourcing providers in the IAOP Fortune Global 100 listings. NASSCOM congratulates Wipro Technologies as show case company for IT innovation in India 2005. Global Make 2005 Award; Most admired knowledge Enterprise Study: Telcos Oct 2005. Wipros Gurgaon development center awarded platinum rating: US Green Building Council, sept.2005 Wipro among Worlds 400 best big companies: Forbes, Sep 2004. Among 10 outsourcing vendors in US: META Group, June 2004. Ranked 7th amongst software services companies in the world (Business week InfoTech 100, November 2002). Among the Top 5 IT companies base on equity (Business week, Info Tech 100, June 2002). Indias most valuable company (Business today, October 2001).

Part of TMT (Technology -Media -Telecom) Index of the New York

Stock Exchange. Top 3 employees in Indian IT -data quest 2002. Business innovation award for off shore development. (Electronic

and software export Promotion council, 1993). Corporate audit function: commitment to quality improvement award (Institute of internal auditors).

SSIBM -2009

15

WCCLG, TUMKUR

Bravo! Partner of the year award from Best By. (Best buy recognizes Wipro as their best IS partner for the year 2002). Spectra mind awarded the first runners up for excellence in innovative HR practices in a survey organized by Watson Wyatt and Delhi Management Association, October 2002). KMWorlds km Reality award for 2002 in recognition of Wipros knowledge management practices and processes. IEEE Award for software process Excellence First Company outside of US to be conferred this honor. ITSMA Award for services Marketing Excellence Integrated lead Generation program conferred top honors. IDC CMO Best Practices Award for marketing measurement and metrics. Top company for leaders in Asia Pacific-2003 in Hewitt Survey. The golden web Awards 2003-2004 for the wipro website: www.wipro.com Ultra web level 3 Award for the Wipro Website, February 2003: www.wipro.com K2 excellence Silver Award, February 2003: www.wipro.com Dexters Gold Web Award for the Wipro Website, February 2003: www.wipro.com. The gold award is the highest Dexter award and is given to only the best web sites.

SSIBM -2009

16

WCCLG, TUMKUR

j. work Flow model

The internal operations of the Factory are divided into the following five primary functions. 1. Commercial - Material and Distribution, Planning, Procurement, Inspection, Storage and Distribution. 2. Manufacturing. 3. Quality Control & Effluent treatment. 4. Engineering. 5. Accounts, Personnel, Boiler and Utilities. a. Materials and distribution material planning, Inspection and Storage, Distribution of finished goods
PRODUCTION PRODU PLAN RECEIPT INCOMING QC STORAGE

MANUFACTURING SECTION

FINISHED GOODS STORAGE

RECEIVING DESP.PLAN FROM BO

ARRANGE TRANSPORT

ARRANGE
DESPATCHES

b.

Manufacturing
PRODN. PLANNING MANUFAC -TURING INPROCESS QC PACKING FINAL QC FINISHED GOODS

c.

Engineering
MATERIALS & MANPOWER PLANNING MAINTANCE TRIAL RUN HANDOVER EQUIPMENT

d.

Contracts and amendments

CUSTOMER MADD CONTRACTS & AMMENDMENTS REVIEW WITH CONCERNED QLTY & QTY INFORMATION TO AFFECTED DEPT

PERSONNEL

ACCOUNTS

UTILITIES

SSIBM -2009

17

WCCLG, TUMKUR

k. Future growth and prospects

The objective of Wipro is to be a world leader in providing a comprehensive range of IT services to their clients. The markets are undergoing rapid change due to the pace of development in technology, changes in models and changes in the sourcing strategies of clients.

SSIBM -2009

18

WCCLG, TUMKUR

Part B
Mckensys 7S frame work with special reference to organization under study

Structure

COMMERCIAL DEPARTMENT
Factory manager

Commercial manager

Senior officer materials Material admn. & distribution dept. Sectional in charge

Stores Commercial assistants

warehouse Commercial assistants

COMMERCIAL DEPARTMENTAL STRUCTURE

Commercial department plays a vital role in the day-to-day activities in the factory. Materials are planned depending upon the marketing environment which further depends on the market study and commitment by the sales team. Materials are sourced through authorized stockiest and directly from the manufacturers at the best possible cost and who are evaluated form time to time for quality, quantity and timely service Commercial department is considered as the most important department as it meets the Raw Material requirement of the production departments, which are essential for the production purpose. The requirement plan is prepared commercial department based on the requirement of marketing depending on the forecast made by marketing materials which helps in finding out future requirements, the raw materials to be purchased etc., Materials of good quality are purchased at most economical cost by this department. It is undertaken because:

SSIBM -2009

19

WCCLG, TUMKUR

Commercial function consists of mainly Purchase function Distribution function Commodities function Stores function

1. Purchase function: This function is taken care by a separate section, which deals with the procurement of raw material from various suppliers by keeping in mind the quality aspect. This section ensures that vendor supplies in accordance with the quality assurance departments requirements through proper inspection and testing .Wipro maintains a very cordial relationship with its suppliers.

The head of the Commercial department is the commercial manager who reports to the general manager.

2. Distribution function/warehouse function: Distribution function is a service function undertaken by Distribution section. In Wipro, distribution takes place according to the requirement and estimated sales placed by different marketing area offices at Business Office in Bombay, where centralized distribution department is there for facilitating distribution. Economy aspect is considered while making a distribution which includes items like Toilet Soaps, Oil etc. Distribution reports are prepared, production status, stock reconciliation, freight standard are also checked and records relating to it are maintained.

3. Commodities function: It is a service function rendered by the commodities section, which acts as a custodian of oils. Oils are purchased through daily purchase commitment with the business office Bombay, according to the standards fixed by the president. The different types of oil include palm oil, coconut oil etc. while purchasing oils the General terms and conditions for purchase or delivery of Wipro is followed. Maximum time limit for receiving of oil is 4 p.m. Daily Material Administration Department (MADD) reports are maintained, which contains the information about the opening stock of oil, receipts, issues, closing stock, des
SSIBM -2009

20

WCCLG, TUMKUR

sent to Bombay. Purchasing is done through brokers. In Case of delay in delivery, debit note is issued and penalty is levied for which broker is responsible. The commitment register is maintained which is a book of prime checking. Separate books are maintained for imported oils and other locally bought oils. The commercial manager is authorized to purchase bulk oil in expectation of increase in oil price in future but, the excess cash ploughed for this purpose get interested i.e. interest is charged for excess cash used.

4. Stores function: An efficient and well equipped stores section is an asset to effective inventory control. Stores are the place where raw material and other purchases are kept. In stores department the materials are classified according to the needs of the production departments. Eg. Materials for refinery and T.S.P. are kept separately. The materials after being ordered by purchase section come to the stores which undergo for inspection, after that only material are stored as per the needs of various production departments. The rejected materials are stored as per the needs of various production departments. The rejected materials are kept side and sent back to suppliers. Certain materials bought are tested by quality assurance lab and only after its verification materials are accepted and stored. The stores section is spacious and also has a cold storage area in which materials are kept to prevent any kind of deterioration. Computerization of purchase department facilitated the easy access to information relating to the stores such as stock position, value, quantity of raw material issued, quantity remaining etc. The main functions of stores are: Receipt of raw material from vendors after verifying delivery Chelan Inspection of raw material Issuing of user departments by issue slips Updating of stock ( stock verification) Stores work in close co-ordination with purchase and finance department. For procurement of raw material, standard is set by commercial manager for maintaining quality level which is an element according to Wipro.

SSIBM -2009

21

WCCLG, TUMKUR

ENGINEERING DEPARTMENT
Factory Manager

Manager Maintenance

Officer Maintenance/ Shift in charge Maintenance

Operator

Welder

Helper ENGINEERING DEPARTMENT STRUCTURE

The important and main function of the engineering department is maintenance department is to keep the machines in good conditions (i.e. running efficiently and effectively). This department has to see that production process is carried on smoothly, keeping in accordance with plans and schedules and reducing the idle time of machines. This department is mainly concerned with the mechanical, electrical and civil works relating to machineries. Some of the important activities performed by this department are as follows: Keep the machine in proper condition and avoiding downtime of machineries. Projection of working of machines and modification undertaken in case of necessity to save power and time and to keep up production Conducting periodic checking and planning for uninterrupted, systematic operation. Maintaining records relating to machineries. Placing orders with commercial department for the spare parts required and checking the quality and specification, standard of it when it is received.

SSIBM -2009

22

WCCLG, TUMKUR

Boiler inspection, factory inspection i.e. pressure vessel maintenance.

Electrical Diesel generator section: This section takes care of the following activities: o Overhauling and generators maintenance. o Electrical installation. o Checking all electrical equipments like earth etc. preventive maintenance, supervision of major break down. o Work schedule preparation and if position is critical, making shut downs. o Removing dust, maintenance of break-down records and planned measures relating to it. o As a preventive measure checking cabling, starters, sign boards, earths loose connections and taking safety measures. o Checking whether minimum electrical material stocks are maintained in stores and if not placing purchase requisition. o Supervision of workers. o Proper lubrication of machines and greasing and regular audit of all critical parts after their identification and keeping records of it. Major repairs are handled by sub-contractors. Technical assistance is also taken from outside to improve the quality of maintenance. Six sigma for maintenances adopted which covers the following activities: Meeting customer requirement (i.e. production department requirement). Finding cause for defects and preparation of cause and effect diagram so that affected areas are made defect free. Action plan preparation for implementation. Preparing checklist for preventive maintenance, submitting reports on observations made and giving suggestions/ proposals related to it.

SSIBM -2009

23

WCCLG, TUMKUR

QUALITY ASSURANCE DEPARTMENT

Factory manager Quality assurance manager

QA 7 Analysts 2 in each shift 1 in general shift

ETP 3 Operators 1 each in shift

Contract 2 helpers(QA) 1 in gen.shift 1 in night shift

QUALITY ASSURANCE DEPARTMENT STRUCTURE

Quality: means fitness, merit or excellence. In purchasing, quality is related to suitability and cost. Quality is not always related to inner excellence. The best quality is that which can be purchase at reasonable cost to fulfill the need. In Wipro, quality and service get prime importance and price get the secondary consideration. Quality Assurance: all those planned and systematic actions necessary to provide adequate confidence that a product/ service will satisfy given requirement for quality. The quality policy of Wipro, is to design, manufacture and market at competitive prices, products of such quality which results in total consumer satisfaction, quality reputation and market leadership.

Some objectives of quality assurance department are: Cost reduction. Quality and process improvement and development. Maintaining required quality manuals as per internal and external / statutory specifications and so on.

The main functions performed by this department are: Raw material testing. Intermediate samples and finished products are also tested.

SSIBM -2009

24

WCCLG, TUMKUR

In case, when products quality is not met, the materials are rejected and for finished goods dispatching is not permitted. While purchasing ago based products if quality is not met, rebate in payment is done. The specifications for products are revised yearly and the standards are set b the department itself. The Wipro has implemented the quality policy through Company wide quality management programme called Six sigma which emphasizes on: Improvement of lather in soap. Change in the shape of soaps. Use of latest technology, management tools, statistical techniques, defect prevention methods and document procedures in all activities. Process control during purchase, manufacture and testing. Participation of all departments and all employees in continuous improvement activities through structured six sigma quality

improvement proramme. Regular reviews and quality testing are performed to monitor effectiveness of programme.

The daily audit and weekly audit are done, which is submitted to president. No time and date for audit awareness among other departments. The authority is delegated to sub-ordinates and has full freedom to take decisions relevant to their work and they have given full chance for selfis specified to ensure continuous

development. Some samples are given to different employees to conduct test for the purpose of internal analysis and also to know the employees capability so that proper guidelines are given to them in case of any difficulty. The new quality testing improvement if any made will be communicated to other plant situated at Amalner to help in overall development of the concern. In Wipro, the overall quality assurance department is looked after by the quality control manager who is the head of the department, who is assisted by chemists and he is responsible for quality programme implementation and acts in consultation with vice-president (Q.A) for this purpose.

SSIBM -2009

25

WCCLG, TUMKUR

PRODUCTION DEPARTMENT
All the aspects relating to the manufacture of Soaps are taken care by this department. The products produced essentially meet the application and quality requirements of the customers and yet conforming to National and International standards including aesthetic characteristics with special attention to ease and economy of manufacture. Some of the functions performed by production department are: Directing and controlling of production operations to meet business plan within approved budgets which include material conversion cost, usage of utilities and chemicals, inventory and operating maintenance costs. Taking care of safety programmes. To supervise, appraise, motivate and lead sub-ordinates to achieve planned performances through mutually supportive organizational relationships. Carryout bench marking exercises on competitors product to improve quality of products. To install, implement and maintain quality system in accordance with standards. Keeping relationship with other departments and business office and provision of accurate information in a supportive manner. Providing support and guidance to shift officers in increasing efficiencies of operations and removing bottlenecks. To ensure compliance with statutory regulations of FDA/ weights and Measures Act and also review quality and management by conducting meetings. Monitoring manpower usage and production to achieve planned productivity ratios. Participating towards product development by planning and organization pilot and plant level trivial.

SSIBM -2009

26

WCCLG, TUMKUR

Problem solving/complexity: Processing of raw material which is oil based has to be carried out with minimum information and analytical support, without affecting operational efficiencies. Regular analysis of operations and processes to increase efficiency with respect to cost and volumes. Constantly interacting with different divisions and control of in process socks so as to be within approved limits. Planning and coordinating departmental activities during periods of high absenteeism and sudden pressures from market. Meeting statutory requirements and keeping with production schedules and keeping abreast of latest technology development in new methods, materials, process and products.

Job purpose: Planning, organizing and controlling the manufacture of Toilet soap, fatty acid and glycerin noodles in line with business plan, meeting norms of quantity, cost, quality and statutory requirements. There are two production departments viz, 1) FAG plant & 2) TS plant engaged in the manufacture of Fatty Acid and Toilet soap respectively.

SSIBM -2009

27

WCCLG, TUMKUR

FAGP (Fatty Acid and Glycerin Plant):

Factory Manager

Manager FAGP

Shift Officers

Charge hands FAGP STRUCTURE

Operators and helpers

This plant was started in 1990. In FAG Plant, Fatty acid was produced. There are about 15 workers in 3 shifts working in this plant. Production manager is in charge of this plant and he is responsible for production planning, control, maintaining coordination with customers, keeping interaction with inter departments, providing necessary raw materials to the process. Next to production manager, junior officer of production is there who look after the implementing part of production plan, communicating production plan to shift in chargers, effective coordination with employees as well as higher authorities, interacting with other departments in providing necessary raw materials and transferring finished goods, solving interdepartmental problems etc. Shift in chargers are responsible for implementing production plan as per instruction from higher authorities. Coordination and control over jobs in respective sections with concerned employees. Handling maximum

responsibility during shift, making decisions during shift timings when higher authorities are not available.

. TSP (Toilet Soap Plant):

SSIBM -2009

28

WCCLG, TUMKUR

Factory Manager

Manager TSP

Shift Officers

Charge hands

Operators & Helpers

TSP STRUCTURE

Production officer who is below production manager is responsible for reparation of cumulative reports, maintaining T.F.M.(Total Fatty Matter), conducting new trial , following standards, allotting shifts to people, absenteeism, overtime control and keep informing to production manager. Production function shift in chargers look after the quality, production, out skipping and safety matters. The raw material used in this plant is Fatty Acid and Caustic Soda and these raw materials are received from FAG plant as by-products through placing weekly requirement with FAG plant and stores. Any wastages arising during the time o production like stiffener and wrapper are thrown or burnt out. All information relating to production, stocks are recorded in log books and compressed information are written in main book which also includes human resource used. The records maintained are shift report, operation report, transfer slips prepared to make Distilled F.A. report, process report by quality department, quality control report and weekly reports.

SSIBM -2009

29

WCCLG, TUMKUR

ACCOUNTS DEPARTMENT:

Factory Manager

Manager accounts

Resident Jr.Offer Officer Accounts Engineering payment & sales tax and on Banking commercial Lien tax ACCOUNTS DEPARTMENT STRUCTURE

Staff costing & Finance accounts

Finance department is considered as a nervous system of the organization as performance of every activity needs money one way or the other. There is also necessity of maintaining proper books of records relating to the transactions for which existence of accounts department is essential. Objectives: The objectives of the accounts department are to help the firm to achieve its target for the year in coordination with other departments, keeping up-to-date records and making it easily accessible. Wipro makes efforts to provide the customer the desired goods and to maintain a very high quality and it is ultimately directed towards achieving profitability which is a must for concerns growth and sustenance. Functions: The important function of accounts department is maintaining different accounts for carrying the business. These accounts include purchases a/c, sales a/c, cash transactions, payment of salaries and wages including incentives to employees, central excise and sales tax payments. Costing section: This section follows a standard costing system as a cost control technique. Each processes idle time to be taken, quantity of raw material used, rate and other details are maintained and it is reviewed yearly and rates are changed
SSIBM -2009

30

WCCLG, TUMKUR

quarterly. In Wipro accounts are maintained as per periodic cycle (PC). Four weeks make 1 PC and 13 weeks make 1 quarter. Monthly MIS is done and reports are maintained. President and specialist in concerned field fix the standard for each item and for each step control is exercised. The duties of this section are to find any adverse variation in cost and planning about activities. Process costing is done for each process. Accounts section: The important functions carried on by this section are: Passing entries of purchases Maintenance of vouchers Making financial entries Excise regulation as excise is calculated on the basis of cost statements. System section: The system analyzer and the programmer take care of this section and perform the activities like software, hardware management, programme development and rectification of problems if any. SAP is used in programming and UNIX operating system is followed in Wipro. Hardware maintenance is taken care of by the people from Bangalore division. Wipro has more cash transactions than credit. It has minimum number of debtors for whom maximum of 45 days of credit period allowed for payment and now, extending the period to 60 days was in process. Bills are managed by stores and are then sent to accounts department. This section looks after bank operations, costing works and maintains partys accounts also. Most of transactions are made through DD and Cheques, valuation is also done. Sales may be consignment sell or direct sell. Sales invoices are prepared as per statutory requirement and only some scraps are sold from unit. Depreciation policy: The firm follows the rates and procedures indicated in schedule 16 of companys act, 1956 to provide for depreciation on assets. The firm follows the straight line method of depreciation. Cash and Bank Transactions: All cash transactions are affected by accounts departments. These may be in the form of sale proceeds of stearic acid, scrap and toilet soaps. Receipts are
SSIBM -2009

31

WCCLG, TUMKUR

received from Bombay by T.T. Other items are sold on advance payment but for stearic acid 30 days credit period is allowed. The books maintained are: Sales register, Product summary (monthly), Tax summary (monthly), Purchase register, Summary vouchers, Bank and cash books, General ledger, Partys ledger The transactions of this unit are done through SBI and B.R. statement is prepared for the transaction for verification purpose. Finance for new projects: Working capital is used as one of the sources for financing and sales earnings are also used for financing. Treasurer department in Corporate Office will take care of outside source for financing purpose. The Accounts department controls the expenditure by formulating budgets. It advises management and signals wherever the department budgets exceed the actual budgets. The department helps and activates the collection from customers. It helps to keep the interest on overheads less tan the budgeted level and helps in achieving profitability. Excise and sales tax: Raw material is used for final products art purchased after paying duty on it by the party which is accounted in books A part 1 where final consumption of quantity entries are made. A part 2 consists of amount of duty paid by the suppliers. To clear the final products 16% duty is paid. CENVAT is also taken care off and materials are classified as finished and raw material going towards final products to make it easy for calculation. Raw materials a/c, capital goods a/c are maintained for record purpose. Factory gate sale is based on costing and in consignment selling fixed trade discount; expenses are deducted from raw material cost and net amount used for calculation.

SSIBM -2009

32

WCCLG, TUMKUR

HUMAN RESOURCE DEPARTMENT: Factory Manager

H R Manager

Chief HR Executive

Security Officer

Staff security shift incharge

HUMAN RESOURCE DEPARTMENT STRUCTURE

Personnel department is well organized and prime importance is given to workforce which is the primary objective of personnel department and focus is more on labor rather than machine. Functions: Man power planning: Wipro forecast personnel needs, assesses personnel supply and match supply demand factors through personnel related programmes. To achieve long term objectives regular manpower planning is essential. Recruitment: Wipro recruit highly qualified and experienced persons to right jobs. Recruitment is based on written test, group discussions and interviews. Training and development after recruitment, training is given to fresh employees to develop specific skills, impart knowledge and abilities so that current employees performance can be increased which in turn increases productivity. Performance appraisal: Employees performance is measured with such factors as job knowledge, quality and quantity of output, leadership abilities, supervision, cooperation, versatility, health etc.
SSIBM -2009

33

WCCLG, TUMKUR

Employee remuneration: it is one of the major functions of personnel department. Remuneration is paid to the workers for their efficient work in the organization. Remuneration depends upon nature of job, seniority and merit. Workers are loyal to their jobs and to the organization in Wipro. Integration: integration of management and workers are quite often so those grievances of the workers are solved, this increase the harmony and discipline in the organization. Promotion policy: works men are promoted on the basis of Vacancy Seniority

Staffs are promoted on the basis of Merit cum seniority Performance Wipro runs a canteen to facilitate its employees. The company gives 90% subsidized food to the employees. Medical facilities provided to the employee are absolutely free of cost and there is a provision made for annual medical check up to all the employees. Industrial relations in Wipro are good. Company products are given to the employees at reduced rates and rewards are given to the departments which have achieved the set target. Uniforms, shoes and hand gloves are provided to the employees.

Welfare measures:

SSIBM -2009

34

WCCLG, TUMKUR

Skill:
This module highlights the procedure for identifying, organizing and reviewing. Training programme for employees at Tumkur. This is prepared in accordance with competence, awareness and training procedure of quality manual

Procedure: The success of any organization depends upon the knowledge, skills and capabilities of its people. It is very essential that an organization identify the factors, which would affect the performance and initiate actions to correct these. One of the interventions could be well designed. The employees in the factory are put through the following training programmes. 1. Induction training 2. Orientation training 3. Need based training 4. Development training 5. External training 6. On-the-job training Except for On-the-job training all other programmes are co-coordinated by personnel department. 1) Induction training: All employees upon joining go through an induction-training programme conducted by personnel department. This programme comprises of the following: Our promise as enumerated by the company chairman are covered in detail by personnel department. A brief session about the organization, organizational structure, product profile and company policies. The employees are briefed on the functional knowledge of each department. The Head of the Department in which the employee is placed, gives a briefing on the quality system of the factory department and new incumbents role in the system. 2)Orientation training: The orientation for all newly inducted employees is organized by personnel department and training is imparted on the following subjects as show against each of the following:

SSIBM -2009

35

WCCLG, TUMKUR

1)

5S (House-Keeping)- personnel department Plant & departmental procedure- respective department Quality system: confirming ISO-9001-2000 Management repetitive Safety policy & procedure- safety coordinator

Identification of training needs: The training needs for Jr. Staff and management are identified through the Annual performance appraisal by Head of the Department. Such identified training needs are summarized and recommended by Personnel department. Through performance review by HOD on an On Going basis individual training needs arising out of Annual performance appraisals are picked up and seminar or courses that address these needs are identified.

Training of workmen is basically on the job activity. They are trained periodically on the subjects/ areas as specified. The training needs assessment for them will be limited only to any specified requirement for the job.

Training needs for trainers will be assessed once in a year by Personnel department in consultation with factory managers. Training will be imparted as per assessment. 2) Need based training programme: i. The training needs of employees (except for on- the job training) as identified by HOD is based upon the performance or wherever any specified training needs arise are recorded in Training need assessment form. ii. The filled in training need assessment forms are forwarded to personnel department. The training calendar is prepared for the financial year by personnel department in consultation with HODs. iii. Considering the area/ course content of training, in-house or external training programme is organized. In-house training imparted by approved trainer. 3) Development training: Development training is organized for individual to enable them to be effective and productive on their respective jobs. The focus of such training is on methods and techniques for day-to-day work. The emphasis on knowledge, skills up gradation,

SSIBM -2009

36

WCCLG, TUMKUR

sharing of best practices across Wipro. The individual required to attain such training are identified and recommended by personnel department to factory manager. 4) External training programme: Training sponsorship forms for employees who are to be sent for external training programme are filled by departmental head. The personnel department scrutinizes such training requirement and submits recommendation to factory manager. The final approval for such training programme is given by factory manager. 5) On the job training: Training programme is organized by every department for the following areas: a) Unit operating procedure (U O P) b) Plant safety procedure (P S P) c) Plant emergency plan (P E P) d) Unit emergency plan (U E P) e) Job safety analysis (J S A) f) ISO:9001:2000 Awareness The common training subjects for all employees are: First aid Safety awareness Hygiene sanitation and house keeping First safety The training records for On-the-job training are maintained by respective department for their employees. Information is sent to personnel department for such subjects in 6 months i.e., once in a period of two quarters, 6) Training Records: Training records are maintained by personnel department for all In-House programmes, including on-the job training. Personnel department records all training programmes in Employee Training Record for every individual. Quarter I and II Quarter III and IV

SSIBM -2009

37

WCCLG, TUMKUR

Training records are signed by employees for recording the proof of having attended the training programmes. Training records are kept in the respective departments and a copy is sent to personnel department. In case of In-House training programmes conducted by internal and external sources for an identified group of employees, the details are entered in training record which is signed by all employees attending the programme. One copy is sent to personnel department for making entry in Employee Training Record. For the purpose of conducting training, a list of approved trainers from internal sources is maintained. It is prepared by management representative and approved by factory manager. All facilities are provided for the activity Records of training feedback receive from the trainers and their sectional heads are maintained by personnel department. 7) Feedback: Employees undergoing other than On-The-Job training give feedback on the adequacy and effectiveness or training programmes in the feedback form to personnel department.

8) Review of Training programme: The feedback received from trainers is periodically reviewed by Head of Personnel in consultations with departmental heads too. Make necessary changes/ improvements in programmes to meet changing training needs of employees. Evaluate training programmes conducted by external agencies to decide relevancy for sponsoring candidates or continuing with external agencies. The reviews are recorded. Training status is maintained on the training status format by all the departments. 9) Maintenance of records: a) The employee training records are maintained as long as the employee is part of factory team. b) All the quality records are maintained for a period of one year. After the retention period is obsolete, records shall be removed from Quality system records.
SSIBM -2009

38

WCCLG, TUMKUR

Style:
Style refers to the leadership style that a leader/ a head adopts to lead a team/ the members under him. It is not only concerned with leading but also controlling them. As leadership style could be autocratic, democratic or group effort, the selection of type of style depends on how and organization depends on how an organization decides to achieve its goals. At Wipro, each department has HOD who is entirely responsible for the actions carried by each member of his department. At wipro it is completely democratic and group effort. Democratic: Each staff member has the right to take any decision which would result in befit to the company. The companies always encourage decisions which are innovative in nature and which inurn would reduce the cost of doing a job. Group effort: there is an emphasis to carryout a work through a Team work wiper emphasizes on group effort: they believe that not one individual is superior to/ greater than others.

Strategy: The competition has made the existence of companies havoc. There are many strategies followed by many countries to survive. Some strategies are: Price strategies Quality strategies Reduce wastage etc. At Wipro, they have been able to survive in the market by following the above strategies more effectively. One of the major strategies followed by WCCLG is Six sigma strategy. Wipro adopted Six sigma in May 1996. six sigma standard is mainly undertaken to reduce the defects to the main level cycle time reduction, which can be enforced with the help of learning and internalizing quality through disciplined, project based approach. On 14th November 97, Wipro launched six sigma, the mother of all quality initiatives. In simple terms, six sigm involves reducing defects to 3.4 in a million. Six steps in Six sigma: 1) Identify the product your create or the service you provide.

SSIBM -2009

39

WCCLG, TUMKUR

2) Identify the customer(s) for your product or service and determine what they consider as important. 3) Identify your needs to provide product/ service so that it satisfies the customer. 4) Define the process for doing the work. 5) Mistake proof the process and eliminate waste effort. 6) Ensure continuous improvement by measuring, analysing and controlling the improved process. Six sigma journey at WCCLG: Started with a lot of skepticism in 1997. Got early success at Tumkur and Amalner in 1998. Expand and explode six sigma in all locations in 1999. Created an example of success for the corporation in 1999. Created a model for driving six sigma by target setting, reviewing structure and institutionalizing game. Few leanings from deploying 6 sigma It is rigorous High bench marking Requires commitment from the highest level of management Requires a lot of tolerance for endless questioning Requires the business leader drive change from the front in letter and spirit. Reuires the tenacityand mental toughness and above all a dedication to the pusuit of excellence

SSIBM -2009

40

WCCLG, TUMKUR

System

Inventory control System

An efficient and well equipped stores section is an asset to effective inventory control. Stores are the place where raw material and other purchases are kept. In stores department, the materials are classified according to the needs of the production department. Purchasing is done through brokers. In case of any delay in delivery, debit note is issued and penalty is levied for which broker is responsible. The commitment register is maintained which is a book of prime checking. Separate books are maintained for imported oils and other locally bought oils. The commercial manager is authorized to purchase the bulk oil in expectation of increase in oil price in future but, the excess cash ploughed for this purpose gets interested i.e. interest is charged for excess cash used The materials after being ordered by purchase section come to the stores which undergo for inspection, after that only material are stored as per the needs of various production departments. The rejected materials are kept aside and sent back to suppliers. Certain materials bought are tested by quality assurance lab and only after its verification materials are accepted and stored. The stores section is spacious and also has a cold storage area in which materials are kept to prevent any kind of deterioration. Computerization of purchase departments facilitate the easy access to information relating to the stores such as stock position, value, quantity of raw material issued, quantity remaining etc. The main functions of stores are: Receipt of raw material from vendors after verifying delivery Chelan Inspection of raw material Issuing of user departments by issue slips Updating of stock ( stock verification) Stores work in close co-ordination with purchase and finance department. For procurement of raw material, standard is set by commercial manager for maintaining quality level which is an element according to Wipro.

SSIBM -2009

41

WCCLG, TUMKUR

Staff
Staffs are the people who are thinkers of any organization. They play a key role in the success of their respective departments and thereby reach the goals of an organization as a whole. More importantly, the success depends on how the staff is categorized into different levels, such that each level caries on the work duly bestowed on them.

DUTIES AND RESPONSIBILITIES

MANAGER MAINTENANCE Responsible for :-

Effective Maintenance of Integrated Management System through review and updating. a) Planning and Implementation of Environmental Management Programs b) Planning and Implementation of Safety Management Programs Maintaining Integrated Management System records. Housekeeping and maintaining safe working condition in plant. Identify training needs and imparting on the job training. Proactive participation in various review meeting. Calibration of critical gauges and equipments. Identifying and implementing corrective and preventive actions. Play a supportive role in Benchmarking exercise Playing supportive role in maintaining efficiencies at all stages of production operation. Complying with IBR, Factories Act and Electrical Regulations.. Responsible for operation & Maintenance of TSP ammonia Compressor, Boiler house. Project estimation, planning and implementing. Maintenance of equipment and machines in all the plants. Spread a culture of excellence to vendors / contractors Communicating relevant procedure / requirements to venders / contractors

OFFICER MAINTENANCE / SHIFT INCHARGE

SSIBM -2009

42

WCCLG, TUMKUR

Responsible for :-

Maintaining Integrated Management System records. Planning and Implementation of Environmental Management Programs Planning and Implementation of Safety Management Programs Housekeeping and maintaining safe working condition in plant. Calibration of all gauges and equipments. Identifying and implementing corrective and preventive actions. Playing supportive role in maintaining efficiencies at all stages of production operation. IBR, factories act and electrical regulations. Responsible for operation and maintenance of TSP ammonia Compressor, Boiler house Project estimation, planning and execution. Issue of spares and engg. Materials for use in plants. Maintenance activities of various equipments in the plant.

OPERATORS : Responsible for :Carry out & maintain the Maintenance activities, operation of Chilling plant Ammonia Compressor plant. Implementation of Environmental Management Programs as per plan Implementation of Safety Management Programs as per plan

HELPERS/ASSISTANTS Responsible for : Implementation of Environmental Management Programs as per plan Implementation of Safety Management Programs as per plan

Shared value

SSIBM -2009

43

WCCLG, TUMKUR

Winning is about making customers successful. Winning is about making all stakeholders successful. In business, Winning is not about Winning Against but its about Winning With. Intensity to win is the burning desire to stretch and challenge our limits. Its the desire to realize and expand our potential. Its about continuous innovation and striving to be better every time. Its about excelling in everything we do. Its about multiplying forces as a team. No one wins 100% of the time, but those who have the Intensity to Win, win more often than not. Vision: Fuelled by culture and values Wipro is built on a foundation of Values. The values form the essence of their culture. The values are a guide to their behavior. With 75,000 people across 29 countries, its the values that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of Wipro. The spirit of Wipro is deeply rooted in their history and in what they are, and at the same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of Wipro- manifest it in thought and action.

Spirit Of Wipro
Intensity to win Make customers successful Team, Innovate, Excel

Act with Sensitivity

Respect for the individual Thoughtful and responsible

Unyielding Integrity
Delivering on commitments Honesty and fairness in action The spirit of wipro is an invisible synthesis of all three statements. It means manifesting intensity to win, acting with sensitivity and being unyielding on integrity all the time.

Mission:

SSIBM -2009

44

WCCLG, TUMKUR

Quality has always been a strong part of Wipros proposition. Wipro boasts of many pioneering achievements in quality journey. Quality is focused on not only in the product or service that touches its customers, but also on internal processes and as an enabler facilitating on going business transformation to meet dynamic market challenges.

Quality policy: Their quality policy shall be: 1. To sustain a competitive edge in quality through continuous assessment of customers expectations and needs. 2. To pursue excellence in all aspects of production operation. 3. To promote a culture of conforming to specifications and requirements. 4. To involve people at all levels in the pursuit of excellence. 5. To spread a culture of excellence to all the vendors.

Environment, Health and Safety Policy We at Wipro Consumer Care engaged in manufacture of Soaps, Fatty Acids, Glycerin are committed to provide safe and healthy environment to all our employees and stakeholders through suitable Environment Management Systems aimed at: 1. Prevention of pollution and workplace hazards through compliance with relevant legislations, regulations, applicable to our organization and operations. 2. Conservation of natural resources by efficient use of energy, water and effective utilization of all raw materials and resources. 3. Prevention of losses by way of damages to environment, personal injuries, loss of life case by fires, accidents and security lapses. 4. Continual improvement of Organizations, environmental, occupational health and safety performance through periodic reviews of the systems, its processes and training of employees at all levels.

SWOT Analysis of the Company

SSIBM -2009

45

WCCLG, TUMKUR

Strengths: 1) Wipro consumer care is certified by ISO 9001, ISO 14001, ISO 18001 and all these certifications integratedly contributed to Integrated Management System. 2) Wipros business engine is powered by people, process and infrastructure excellence. It is fuelled by culture and values, innovation, brand, good governance and good citizenship. 3) Wipro are the pioneers of process excellence in Information Technology. In the world of IT they have been the first to deploy and ingrain ISO, Six Sigma. CMMi, PCMM and Lean. 4) Their scalable, robust processes have delivered value to customers through their Global Delivery Model, Software Factory Model and the Offshore Delivery Centre Model. 5) For consumer care and lighting products, it has access to more than 1.5 million retail outlets. This distribution reach provides Wipro with a significant competitive advantage and allows it to grow business with minimal increases in personnel. 6) The ability to retain highly skilled personnel is enhanced by leadership position, opportunities to work with leading edge technologies and focus on training and compensation. 7) Wipros strengths in Research and Development services position it to take advantage of a recovery in global research and development spending. Weakness: 1) Wipros failure to complete fixed price, fixed time frame contracts on budget and on time may negatively affect the profitability, which could decrease the value of the shareholders investment. 2) Wipro is investing substantial cash assets in new facilities and physical infrastructure, if the business does not grow proportionately, the profitability could be reduced. 3) Most of the client contracts can typically be terminated without cause and with little or no notice or penalty, which could negatively impact Wipros revenue and profitability. 4) Communication between the company and endusers is not satisfactory.

Opportunities:

SSIBM -2009

46

WCCLG, TUMKUR

1) Wipro has the opportunity to engage in future acquisitions, investments, strategic partnerships or other ventures that can enable to anticipate and develop new services and enhance existing services in order to keep pace with rapid changes and in echnology and the industries on which it focuses. 2) The BPO services revenue depend to a large extent on a small number of clients and the revenue could decline if a major client reduces the volume of services obtained. Wipro has the opportunity to increase the client base. 3) Low quality, delay in service, inability in customized design and requirement, inferior finishing of other brands have posed an opportunity for Wipro to capture major share in the market.

Threats:
1) Wipro focuses on high growth industries, such as networking and communications. Any decrease in demand for technology in such industries may significantly decrease the demand for its services, which may impair the growth and cause the revenues to decline. 2) The revenues and expenses are difficult to predict due to fluctuation, given the nature of the markets. This increases the likelihood that results could fall below the expectation of market analysis, which could cause the price of equity shares and ADSs to decline. 3) The revenues could be significantly affected if the governments, in geographies that Wipro operates in, restrict companies from outsourcing work to foreign corporations. 4) An economic slowdown, terrorist attacks in the states and other acts of violence or war could delay or reduce the number of new purchase orders and disrupt operations in the United States, thereby negatively affecting the financial results and prospects. 5) Restrictions of immigration may affect the ability to compete for and provide services to clients in the US, which could hamper growth and cause revenue to decline.

SSIBM -2009

47

WCCLG, TUMKUR

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH (Rs. In Million)

Particulars INCOME: Gross sales and services Less: Excise duty Net sales and services Other income

2007 151,330 1,348 149,982 2,963 152,945

2006 106,805 775 106,030 1,536 107,566

EXPENDITURE Cost of sales and services Selling and marketing expenses General and administrative exp. Interest PROFIT BEFORE TAX
Provision for taxation including FBT

102,420 9,547 7,866 124 119,957

71,484 7,003 5,265 35 83,787

32,988 3,868

23,779 3,391

PROFIT BEFORE MINORITY INTEREST Minority interest Share in earnings of Associates PROFIT FOR THE PERIOD Appropriations Interim dividend Proposed dividend Tax on dividend

29,120

20,388

6 295

(1) 288

29,421

20,674

7,238 1,459 1,268 19,456 7,129 1,000 12,545

SSIBM -2009

48

WCCLG, TUMKUR

BALANCE SHEET AS ON 31ST MARCH 2007

(Rs. In Million)

2007 SOURCES OF FUNDS Shareholders Funds Share capital Share application money pending allotment Reserves and surplus 93,042 95,995 Loan Funds Secured loans Unsecured loans 1,489 2,338 3,827 29 99,851 2,918 35

2006

2,852 75 63,202 66,129

451 307 758

Minority interest

66,887

(BALANCE SHEET CONT....)

SSIBM -2009

49

WCCLG, TUMKUR

APPLICATION OF FUNDS Fixed Assets Good will Gross block Less: Accumulated depreciation 18,294 Net block Capital work-in-progress and advances 37,962 33,249 Investments 590 594 21,683 30,812 10,191 11,905 6,250 18,993 12,911 9,477 37,287 3,528 24,816

Deferred tax Assets (Net) Current Assets, Loans and Advances Inventories Sundry debtors Cash and bank balance Loans and Advances

4,150 29,391 19,822 16,387 69,750

2,065 21,272 8,858 12,818 45,013

Current Liabilities and Provisions Liabilities provisions Net Current Assets

33,667 8,033 41,700 28,050 99,851

18,527 12,688 31,215 13,798 66,887

SSIBM -2009

50

WCCLG, TUMKUR

SSIBM -2009

51