INTRODUCTION

Labor welfare means a planned programme of activities or schemes that lead

to the benefits of labor. In practical sense, the above meaning is not exhaustive,
according to the report of the royal commission on labour, the term welfare as
applied to the industrial worker, is one which must necessarily provide and is having
different interpretation in one country from another, according to the different social
customs, the degree of industrialization and educational development of the workers.

In scientific since, the meaning of the term Labour welfare in any specific
country will depend upon the conditions of the labour. Labour in the country includes
not only uneducated but also educated people.

As per encyclopedia of social sciences Labour welfare implies the voluntary

efforts of the employees to establish, within the existing industrial system, working
and some items living conditions of workers beyond what is required by law, the
custom of the industry and the conditions of the market

It means the voluntary steps taken on the part of employer to improve

conditions of his employees. Welfare activities in sense are those services, facilities
and amenities to provide congenial surroundings and enable them to have good health
and improve high more conditions improve the health of the workers as well as those
circumstances that improve their morale.

LABOUR WELFARE ACTIVITIES:

The Labour Welfare activities of the employers in particular and of the state in
general are not only conductive to an improvement in the conditions of the working
class but are the best kind of investment to employees for promoting industrial
efficiency. Besides that Labour Welfare has a tremendous potentiality for fostering
good industrial relations.

The term Labour Welfare is one which leads itself to various interpretations
and it has always the same significance in different countries as pointed out by the
royal commission on labor. The term Welfare as applied to the industrial worker is

1
one which must necessarily the classic bearing a somewhat different interpretation in
one country from another according to the different social customs. The degree of
industrialization and education development of the workers.

Different people have given different interpretation to it. One definition

contains it to voluntary efforts on the part of employers to provide the best conditions
of employment in their own factories. Another interpretation given to welfare work is
that it is anything for the comfort and improvement intellectual or social of employers
over and above the wages paid. A resolution adopted by the international labour
conference (ILC) at its 19th session in June 1956 as enumerated some of these services
and amenities as include.

Feeding facilities in or near the undertaking

Rest and recreation facilities, and
The transportation to and from work.

The labour investigation committee of Government of India clerks the scope

of the welfare activities perhaps in the best manner. It says for our part we prefer to
include under welfare activities anything done for the intellectual physical, more and
economic betterment of the workers whether by employer, by Government or by
another agencies, over and above what is laid down by law or what is normally
expected as a part of contractual benefits for which the workers may have organized.
Thus, under this definition we may include housing, medical and education facilities
for rest and recreation. According to the value system social institution degree of
industrialization and general level of social economic development even within the
one country its context may be different from region to region. This term Welfare is
very comprehensive.

2
CONCEPT OF LABOUR WELFARE AND WELFARE STATE:
The all round acceptance that the concept of labor welfare is a mainly due to
the three reasons.

Firstly:
The need to provide a better life for the workers was dictated by the necessity
to maintain the goodwill of the large and rather freshly recruited war-time labour
force and to gear them to increased production.

Secondly:
The industrial expansion in the advanced countries of the world and the
concomitant process of mass production and mass selling lead to the rose of working
classes as a source of our steps to promote labour welfare were a direct recognition of
the new situation.

Thirdly:
There was also the influence of the researches into scientific management and
industrial psychology, which presented abundant evidences on the importance of the
workers at a human being and a total personality. To these three fourth may be added,
that the public and got concern especially in the economically less developed
countries, over the amelioration of the working and living conditions of industrial
workers. And measures in these regard were being taken in many countries as an
aspect of national policy.

3
OBJECTIVES OF THE STUDY

To examine the existence of labour welfare facilities provided by the KCP Ltd
management.
To highlight the significance of labour welfare activities in the motivation of
the employees.
To study the opinions of employees relating to the present welfare amenities
provided by the management of KCP Ltd.,

4
 NEED FOR THE STUDY

Labour welfare is justified for several reasons. It is desirable to recollect the

services of a typical worker in this context.

Labour helps dig and have coal from the depths of the earth, to fetch and refine oil
to build dams and reservoirs, to lay pipes, canals, railway lines and roads.

A further argument in favour of welfare is that a reputation for showing concern

helps improve the local image of the company as a good employer and thus assists
in recruitment.

Welfare may not directly increase productivity, but it may add to general feelings
of satisfaction with the company and act down labour turnover

5
SCOPE OF THE STUDY

In any industry, HR is considering as one of the important factors of

production.

The significance of labour force calls for well being to enable them to
contribute to a optimum productivity in the industry.

Welfare measures are playing an important role on the industrial relations and
productivity and sufficient welfare measures will lead to the improvement of
the industrial relations and productivity in a greater manner.

6
METHODOLOGY OF THE STUDY

Data collection
The analysis of the project based on the available information was gathered
basically from the primary sources and as well as from the secondary sources.

Primary Data
The primary data relating to the KCP Ltd collected through mutual discussion,
with the workers and the union pub of the company and personally observed the
feelings and opinion, of the workers relating to the above welfare measures provided
by KCP Ltd

The primary data are those, which are collected and for the first time and thus
happen to be original in characters the sources are
Personal observation
Personal interview
Questionnaire

Secondary Data
The data was collected through company published reports records and
booklets of the company. For this purpose journal magazines and daily papers are also
studied.
The secondary data on the other hand on those which have already been
collected by someone else and which have already been passed through the statistical
reports
Company booklets
Periodicals
Personnel manual

Sampling
The sample size is 80 members. The method adopted is simple random
sampling and the method used is percentage method.

7
LAMATIONS OF THE STUDY

Despite completion of project work to the satisfaction, the objectives could not
be achieved due to the following limitations.

The duration of the project is limited.

The information provided by the respondents may be biased
Due to the time constraint the sample of the study was limited to 80.

8
 INDUSTRY PROFILE

INTRODUCTION
India has been the original home of sugar and sugarcane. The Indian sugar
industry is the second largest agro- processing industry in the country, contributing Rs
23 billion to the central exchequer. India is the second largest producer of sugar in the
world. In 2007-08, the country produced a record of 3481.88lakh tons of sugar and in
2008-09 the production is expected to be around 2850.2lakh tons of sugar. Besides
being the second largest producer, it has also the second largest area under sugarcane
cultivation. In 2008-09, 4415 thousands of hectares of land were cultivated under
sugarcane with an average yield of 64.60 tones per hectare. The Indian sugar industry
is the most cost-effective, despite small land holdings and productivity. India is also
the fourth efficient processor of sugar despite low capacity of its sugar plants as
compared to very large sized plants in other parts of the world. In India, the major
sugarcane producing states are Maharashtra, Uttar Pradesh, Andhra Pradesh, Gujarat,
Tamil Nadu and Karnataka. These states are contributing 85-90% of the total
production. The sugar factories and the unorganized sectors consisting of the
manufacturers of traditional sweeteners like gur and khandsari.

Out of the 488 sugar mills in the country, about 219 are operating in the
cooperative sector, 269 are in private sector and public sector. The cooperative sector
accounts for about 43% of the total production in the sugar industry. The sugar
cooperatives are politically powerful, especially in Maharashtra where most of the
sugar factories are owned by politicians. There are more than 50 million farmers
engaged in sugarcane cultivation whereas more than 2.5 million skilled and semi-
skilled workers are employed by the industry.

Sugarcane is a tropical crop grown in a frost-free and warm climate (with high
temperature for at least 8 months). The crop grows for 8-24 month, depending on the
climate. In general, tropical varieties are adapted to an 18-36 months growing period,
while sub-tropical varieties are adapted to a 9-12 month period. It grows best on
medium heavy soils, but can also be raised on lighter soils and heavy clays, provided
there is adequate irrigation available in the former type of soils and heavy clays,
provided there is adequate irrigation available in the former type of soils and drainage
is good in the latter type of soils. The crop grows best in the tropical regions
receiving a rainfall of 750-1200 mm.
9
 In India around 90% of the sugarcane cultivation is under irrigated land. The
irrigated area under sugarcane under sugarcane cultivation accounts for around 5% of
the total irrigated area. Sugarcane is a very water-intensive crop. It is second to
paddy in water requirements.

India has ideal conditions for growing sugarcane at a low cost, such as tropical
climate, easy availability of low-cost labor, and low-cost of irrigation facilities. More
than one crop is harvested from a planting and after the fir4st crop is removed, two or
more so called stubble crops (rations) are obtained.

Planting season normally starts from January to April and harvesting starts
from the following October. Crushing starts in October, peaks in January and
continues till May. Crushing is not done during the monsoon as sugar recovery will
be very les. Sugar recovery will be less. Sugar production in the hampered by low
sugar recovery of 10-11% compared to 12-13% in Brazil and other major global sugar
exporting countries.

In India, sugar production follows a 5-7 year cycle. Production increases over
a 3-4year period, reaches a high, which in turn, results in lower sugar prices. As a
result of lower sugar price realizations of sugar mills, the sugarcane arrears to farmers
increase. This results in lower sugarcane production for the next 2-3 years. Because
of lower sugar production, the prices shoot up resulting in increased areas under
sugarcane cultivation during the next season, following which there will be a glut
again,

According to the Sugar Control Order, the Government of India fixes a

Statutory Minimum Price (SMP) for sugarcane every year. This SMP is fixed by the
Commission for Agricultural Cost and Prices (CACP) in consultation with the state
governments. For the year 2008-09, the SMP for sugarcane was fixed at Rs. 811.80
per MT with a basic recovery of 9.00%. In order to boost sugarcane production, some
state governments fix a higher price than the SMP, called the State Advisory Price
(SAP).

10
 The raw material cost, that is the price paid to the farmers for the cane, is the
major cost for the mils in sugar production. This cost is more or less fixes in the form
of SMP or SAP. When the selling price of sugar falls due to glut in the market, the
mills incur heavy losses and find it difficult to pay for the cane, resulting in many
mills falling sick. In Maharashtra alone, where most of the mills are under the
cooperative sector, some 100 mills became sick and were saved from closure by the
timely intervention of the Centre which offered a package for the revival of such mills
through NABARD. All but six mills had been revived and were in operation during
the current crushing season. Cane price realization is a vexatious issue that will take
years to resolve. It is obvious that sections of the sugar sector perceive a threat that is
why this has been added as one of the conditions for sugar sector decontrol.

One of the weaknesses of the Indian sugar industry is that despite being an
essential commodity, it accounts for only 1% of the GDP. Since sugar is a sensitive
commodity, its distribution is being controlled by the government. Mills are required
to reserve 20% of their production as levy quota for distribution under the public
distribution system (PDS). The remaining 80% is for free market sales through a
monthly release mechanism announced by the government. The mills are to strictly
follow the release orders every month and are not allowed to sell more or less. This is
to avoid hoarding and profiteering on a commodity, which is essential for the common
man.

According to Shanti Lal Jain, director-general, Indian Sugar mills Association,

With Indias emergence, the whole sugar exporting community feels threatened.
Out of the projected 4.2mt, about 3.6mt had been exported already, Jain said,
adding Indias efforts to tap the raw sugar export markets had helped raise exports.

The secret of our success is that we are giving the best quality of raw sugar
and making the best out of our strategic location, which gives us freight advantage,
he said. India, the worlds second biggest sugar producer, entered the raw sugar
export market in 2007 by selling to Dubais Al Khaleej, the worlds largest refinery,
which has now switched to India from Brazil.

11
 Export incentives evoked sharp criticism from Brazil, Thailand and Australia,
top sugar exporters in the world, which accused India of becoming the international
rogue of the sugar trade. Our rising exporters are looked at negatively. What we got
was WTO-consistent subsidy and we are very transparent about it, Jain said.
However, with the exports reaching a record level, the Centre is unlikely to extend the
incentives beyond August, when the scheme would expire.

The government may decontrol the sugar industry from the next crushing
season beginning October 1. The Tuteja committee had recommended total decontrol
of the sugar industry from October 2005. But the government felt that sugar prices
would come under tremendous pressure once the control goes. Besides, there was a
sharp fall in domestic sugar production in 2003-04 and 2004-05 when the output
reached a recent low of less than 140lakh tones from 201lakhs tones in 2002-03. Even
the sugar industry was divided, with the cooperative sector not very keen on
decontrol. But the private sector wants the monthly release mechanism and the
frequent export controls to go so that they could benefit whenever the domestic and
international prices rise. However, it is feared that once the release mechanism goes
the mills will unload their stocks erratically, creating a glut in the market resulting in
crash in prices. It can also lead to hoarding by traders and holding back the stocks by
the mills, creating an artificial shortage and rise in price. However, the government is
very cautious about decontrol as it may affect the interest of the consumers.

The ethanol policy announced by the government has come as a bonanza for
the sugar industry which is facing a problem of plenty. Public sector oil companies
are required to mix 5% of ethanol with petrol from October last year and 10% from
October 2008. Ethanol is produced from molasses, a by-product of sugar production.
The Maharashtra sugar industry, which is mainly in the cooperative sector, has been
looking at ethanol as a major revenue source with long-term potential. While
blending, or doping, of petrol with ethanol is a globally accepted practice, it is still to
take off in the country. Even the 5% doping of petrol with ethanol has both been
successful and it is doubtful whether the sugar mills will be able to met the deadline to
hike this to 10% from October this year.

12
 The prices of ethanol at 21.50 per liter fixed by the government remains a
major area of disagreement. The mills would like ethanol to be period on par with
crude, which is at Rs 32 per liter, much lower than the price of a liter of petrol. Some
mills also utilize begasse, another by-product in sugar production, for co-generation
of power. In Maharashtra about 200mw of power is produced the sugar factories,
which is mainly consumed by the mills themselves. The plan is to produce at least
1000 mw of power by the sugar factories and the surplus from them will be connected
to the state power grid.

SUGAR INDUSTRY IN ANDHRA PRADESH

Sugarcane is one of the important commercial crops in Andhra Pradesh,
greatly contributing to the tropical zone considering highly suitable for the production
of sugarcane. The average rainfall in the state from June to September in a year is 602
mm. Sugarcane is an irrigated crop throughout the state frequency of irrigation
varying widely with facilities available.

Sugarcane cultivation in the state was known for the centuries in the coastal
belt. The rank of Andhra Pradesh in sugarcane average and production is finished
between 5th and 7th and between 4th and 5th respectively, as a national level

In the past, while sugar was obtained by refining polymer jugglery by the Gur
refining at Samarlakota. Direct manufacturing of sugar started in the year 1934 at
Bobbili followed by factories at Thummapalem and Etikoppaka in 1935, Vuyyuru
in1936 and Bodhan in 1938. In 2008-09 total no. of sugar factories in Andhra Pradesh
is 35. These have been established in various sectors viz, co-operative, public and
private sector. There are about 120 licensed Khandasari units in the state and these
units crush about 130days. Out of the total production of sugar 20% is levy sugar and
the remaining 80% is for free sale by the sugar factories. Different varieties sugarcane
seed are introduced for higher yield and recovery of sugar, year after year .

13
 The mills at Bodhan in Nizamabad district is the biggest in Asia. Average
sugarcane yield per acre in Andhra Pradesh is 25 tones for the year 2008-09. Cane
crushed of all mills in Andhra Pradesh for the year 2008-09 is 59.93lakh tones. Private
Mills could utilize 70% percent of the crushing capacity. Whereas the other mills
could just manage.

S.no. Name of the Sugar Factory

I Co operative sector
1 Ankapalle
2 Chittoor
3 Kovvur
4 Nizamabad
5 Kadapa
6 Sri Venkateswara
7 Sri Vijayawada
8 NVR, Jampani
9 Chodavaram
10 Ettikoppaka
Thandava
II Joint Venture
12 NDS Shakkarnagar
13 NDS Medak
14 NDS Metpally
III Private Sector
15 Andhra Sugars-Tanuku
16 Andhra Sugars-Taduvai
17 Andhra Sugars - B'dole
18 Delta Sugars
19 Empee Sugars
20 Ganapati Sugars
21 Gayatri Sugars Ltd
22 GMR Industries
23 GSR Sugars
24 Jeypore Sugars
25 Kakatiya Cement Sugar
26 KBD Sugars
27 KCP, L'puram
28 KCP, Vuyyuru
29 Madhucon Sugars
30 Navabharat Ventures
31 NCS Sugars

14
32 Prudential Sugars
33 Rayalaseema
34 Sagar Sugars
35 Sarita Sugars Ltd.
36 Sri Sarvaraya Sugars
37 Sudalagunta sugars
38 Trident Sugars

15
SWOT Analysis of the Sugar Industry:

Strengths
Indian sugar industry is the second largest producer of sugar in the world
after Brazil. The Sector has a potential to make the country to be self reliant in
this highly sensitive essential commodity of mass consumption.
The sugar industry paid well over Rs. 122.69 billion to the sugarcane growers
in the financial year 2006.
Annual tax contribution to exchequer Rs. 17 billion annually.
Provides direct employment including ancillary activities to near about 0.5
million workers
It also supports the downstream industries by providing the raw material.
Sugarcane farming is more profitable than any other cash crop in India.
This sector have been the focal point of socioeconomic development of the
rural India
Strong government policies as it come under essential commodity of mass
consumption.

Weaknesses
Capacity leads to the decrease in production and losses.
Lack of Most of the Co-operative sugar industries in India e. g. in
Maharashtra find difficult to pay for the sugar cane supplied by the farmers.
Most of the sugar factories are more than 30 years old and still using the old
technology
low installed production professionalism

Opportunities
High value of by-products for downstream industries.
Huge potential to increase the productivity of cane and sugar recovery rate.
Technology up gradation, new advanced technology available for the
byproduct utilization.

16
Threats
Sugar sector is vulnerable to political interest.
Ground water availability for irrigation.
Quality of soil deteriorates due to overuse of fertilizer and pesticides to
increase Sugarcane yield.

The union government announces every year a uniform sugarcane price

(Statutory minimum price), on the basis of the recommendations of the commission
agriculture cost and price (CACP). The government announced the SMP which is
linked to the sugar recovery of 9.00% fixed as a minimum level to be achieved by the
sugar units. The actual price paid to sugarcane farmers is then fixed on the basis of the
State Advised Price (SAP) announced by the state government which are usually
higher than the SMP. The SMP and the SAP guide the sugarcane prices in the market.

Under the dual pricing system levy sugar and free sale sugar priced differently.
The levy price which is defined by the essential commodities act is equal to or lowers
than the cost of production. The cost of production determine by the bureau of the
industrial costs and prices. Levy prices are fixed by the government of India on the
advice of the BICP.

At present, the quota is fixed at a ratio of 20:80 for levy and free sugar which
means that 20% of the production will be procured from the sugar factories at a fixed
levy prices and factories will be free to sell 80% at the market price and to
compensate the loss that they have incurred on the levy quota. However, the central
government indirectly controls the free sale sugar prices through sugar releases each
month. The price of sugar in the market as always been a sensitive political issue.
Whenever sugar is in short supply, the government of India imposed conditions on
sugar units to protect the interests of the common man. Profitability in the sugar
industry is dependent on the sugarcane price paid by companies and sugar prices and
the state imposed dual pricing system.

The governments sugar policy was announced in November 1991, retained.

The minimum economic capacity 2500tones of cane crushed per day for issuing of
fresh licenses. The government has no proposal for new units from the co-operative
and public sector. The government has permitted existing mills to raise their capacity.
17
EXPORT OF SUGAR:
Indias first started exporting of sugar from the year 1957. Since 1990-91 the
quantitative that were exported steadily raise. Whenever food there has been higher
sugar production, efforts were made by the industry to more export quota sanction
from the international sugar organization

The government policy is to encourage exports from agro-based industries and

the time has come to fix a minimum export quota for sugar every year, so that
permanent buyer-seller relations could be established and also better prices released.
Industry sources feel that, at least a minimum Quota of 1 million tones for the export
of the sugar could be released in the beginning of every season, so that export
commitment would be entered into an appropriate time.

According to food industry sources, at a present the two major buyers in the
international market are Pakistan which needs and Bangladesh which needs 1lakh
tones. As India now cannot fulfill its contacts Thailand and Brazil will grab the
opportunity. As the industry made contracts based on the governments decisions,
India has become a logging stock among the international community because of its
apathetic attitude towards exports.

In 1995 export of 4.34lakh tones of sugar i.e. value Rs. 597.34crores. Now in
2008-09 export sugar quantity is 33.32lakh tones i.e. value of Rs. 4448.74 crores.

PROBLEMS OF SUGAR INDUSTRY:

In spite of showing phenomenal increase in production, the Indian Sugar
Industry has been facing serious problems which need immediate attention. The
important problems are:

1. Shortage of raw material

2. Problems of modernization.

3. Tax burdens.

4. Excessive levy control.

5. Improper utilization of by-production.

6. Harvesting.

18
Other Problems:

a. Competition from Gur and Khandajari Industries.

b. Inadequate Finance.

c. Shortage of fuel and frequent power cuts.

d. Lack of proper Transportation facilities.

e. Uneconomic size of Sugar Production

In India there are about 488 Sugar factories of which / AP has 35 Sugar
Factories, Bihar -9 Chhattisgarh 1,Goa -1, Gujarat -36, Haryana -15, Karnataka -50,
Madhya Pradesh -147, Orissa -5, Pondicherry 1,Punjab 16, Rajasthan -1, Tamilnadu-
37, Uttar Pradesh -132, Uttarakhand- 10, West Bengal - 1.

19
 COMPANY PROFILE

Late Shri. Adusumilli Gopala krishnaiah, who hailed from Gudivada, was
pioneer in setting up the Cooperative sugar factory of 600 TCD in 1936 in Vuyyuru
under cooperative sector.

Late Shri. Velagapudi Rama Krishna .,ICS, a top bureaucrat and civil servant
had conceived the idea of promoting agro based industries, when he was director of
industries, Madras state. By virtue of his position as director of industries, he had
exposure to the industrial sector which prompted him to take over the sugar mill in
1941 at Vuyyuru which was not doing well. The sugar factory was of 600 TCD and it
was christened as The K C P Ltd. He was source of inspiration to many entrepreneurs
to setup sugar mills in Andhra Pradesh. Some of them are Andhra Sugars, Sarwaraya
Sugars and Deccan Sugars. The K C P Ltd never looked back from the year 1941 and
gradually by stages it had expanded to 7500 TCD which is the present capacity.

The K C P Ltd., consequent to diversified operations had, over the years

become a conglomerate with multi location and multi product units, each the size of
an independent company. The company has also envisaged plans to setup different
projects which required focused attention and substantial resources. Therefore it had
been decided to reorganize the company The K C P Ltd., into two companies. With
this objective a new company, under the name and style of K.C.P. Sugar and
Industries Corporation Ltd., has been incorporated in the year 1996 with the following
units

1. Sugar Units at Vuyyuru and Lakshmipuram,

2. Co-Gen unit at Vuyyuru and Lakshmipuram.
3. R&D, Distillery, Co2, Bio fertilizers and Calcium lactate plant at Vuyyuru.
4. Workshop Unit at Tada.

Late Shri. V.M. Rao a visionary had taken over the reins of K.C.P. Sugar and
Industries Corporation Ltd., as the first Chairman and Managing Director.

20
 He was instrumental in revamping the company with his foresight by
introducing technological innovations and right sizing the man power for increasing
the production and productivity in the organization. He took several bold steps to start
allied products like Bio-Products, Acetic Acid and several other projects viz. Co-Gen,
Calcium Lactate, Bio-Fertilizers, Ethanol and Mycorrhiza.

The legacy of late Shri.V.Ramakrishna and Late Shri.V.M. Rao is being

arduously continued by Smt. Irm Guard Velapudi V.M. Rao Managing Director and
Smt. Kiran Rao. Executive Director. Smt. Kiran Rao is an ardent lover of nature and
animal lover who propagates the compassion and care with which one has to take care
and preserve the ecology which is passed on as a gift to the future generations. She is
successful woman entrepreneur having started her own business enterprises before
taking over stewardship of the company as executive director. Shri. Vinod Sethi
Chairman is with his vast experience is making endeavor to take K.C.P. Sugars into
multi dimensional conglomerate with the objective Growth with a purpose.

K.C.P. Sugar and Industries Corporation Ltd., is all through with their
continued unrelenting efforts of all the three stewards to excel the predominant and
eminent position enjoyed over years among share holders and business associates.

Mission:
Strive to achieve excellence in manufacturing sugar through our dedicated,
loyal and committed workforce to enhance customer satisfaction.
Strive for continual improvement at all levels by enhancing our skills,
knowledge and enthusiasm to meet the needs of the changing world
Strive to achieve maximum value addition through the most effective use of
resources.

21
Vision:
To be in the First place among all sugar factories in the state in all aspects.

Empower employees for shouldering higher responsibilities resulting in job

enrichment and job satisfaction.

Aim to grow in business and to make the senior managers of today to head
plant operations at a future date by grooming and motivating them.

All employees to aim for deriving maximum benefits from all operation.

Corporate objective:
To become the preferred employer of personnel by offering highest quality of
work life in the industry

To be the most outstanding supplier in the industry by meeting customer

expectations

To be first among locations in the company in earnings per employee ratio in

the industry during the present decade.

To achieve at least 10% growth every year in turn over, profits and value
addition.

Implement measures to ensure minimum losses, maximum quality and

parameters be achieved.

Quality Policy:
We all of us at K.C.P S & IC ltd., shall consistently endeavor to give utmost
satisfaction to our customers in all spheres of our business activities by
achieving the highest standard quality.
We are committed to make continuous efforts to upgrade our manufacturing
techniques, continually improve effectiveness of our quality management
sy6stem and enhance performance of employees by providing need based
training and motivating them to work as a team.

22
Future Plans of KCPS&IC ltd:

To identify new technologies whenever it is possible and makes use of the

same for improved results.
In view of the cute shortage of agricultural labor the following measures are
explored to partially mechanize the cane cultivation.
Induce farmers to use power tiller drawn planters and mini tractor drawn
implements.
Identifying and developing suitable sugarcane harvester calydaying the soil
conditions and land holdings of our command arise.
In-depth study is in progress in distillery division to adopt new technologies
for improving the yield and reduce the discharge of spent wash.
Identifying value-added products from the by-products and to promote
renewable energy from adjustrial waste.

AWARDS K.C.P.S & I C LTD

2008-09- Awards of K.C.P.S & I ltd

During the year under review, your company had received awards in respect of
outstanding performance in industrial safety for following.
Winner of lowest frequency rate of accidents in industry under scheme I.
Winner of lowest Accident free period under scheme II.
Winner of lowest frequency rate of accidents in industry Distillery under
scheme VII.
Winner of lowest Accident free period Distillery under scheme VIII.

23
2007-08 Awards of K.C.P.S & I ltd
During the year under review your company had received awards for the
following:

Performance awarded 1st prize among all the sugar plants Industry by National
council of Energy conservation for outstanding performance in
implementation of energy conservation measures for the year 2007.
Outstanding performance in industry safety for the year 2006.
Winner under scheme 1 National safety awards for lowest average
frequency rate in Industry (sugar factory) for the year 2006.
Runner award scheme II National safety awards for lowest average
frequency rate in industry.
2007 runner award under scheme III National safety awards for lowest
average frequency rate in industry.
2007 runner under scheme IV National safety awards for longest accident
free year.
Winner under scheme VII National safety awards for lowest average
frequency rate in industry (Distillery).
Winner under scheme VIII - National safety Awards for lowest accident free
period (Distillery).

Programme of Expansion
K.C.P S & IC ltd had taken up steps for technology up graduation for
improvement of productivity and equality of sugar factory at Vuyyuru. By 1932-41,
the cane area was 1880 acres with a production of 39.25 tones of cane. The higher
realization per acre from sugar cane crop greatly motivated the extension in 1951
from 800 TCD to 1,200 TCD, utilized almost the entire quantity of sugarcane and this
was further raised to 2,500 TCD in 1956, all within a span of six years. The sugarcane
area increased to over 11,000 acres and the factory utilized 3.23lakh tones of cane in
1956-57. The cultivators readily increased the area under sugarcane crop with every
successive expansion, since per acre income is better than alternative crop.
In 1969-70, the sugar factory went through another substantial expansion of
3,750 tones of cane crushing capacity per day to utilize 4.98 lakhs tones of cane per
season from then on by various improvements of the plant and machinery, the factory
has been rapidly increasing its annual capacity.

24
 Licensed/Installed
YEAR Crushing capacity per day
1941 800 TCD
1951 1200 TCD
1956 2500 TCD
1969 3750 TCD
1977 6000 TCD
2003 6000 TCD
2004 7500 TCD
2008 7500 TCD
2009 7500 TCD
SOURCE: Annual reports of the K.C.P Sugar and Industries Corporation Ltd.

Operations of the K.C.P S & IC ltd.

The year wise operations of the factory are given in the following table
from 2000-01 to 2008-09
Season Cane crushed in MTS Sugar Bagged in QTLS Recovery %
2000-2001 6,09,355 6,31,820 10.38
2001-2002 6,88,821 7,22,284 10.48
2002-2003 9,74,932 9,81,030 10.07
2003-2004 10,14,597 10,60,812 10.47
2004-2005 9,97,945 11,44,442 11.46
2005-2006 10,72,145 11,97,470 11.15
2006-2007 12,21,209 13,19,880 10.83
2007-2008 8,46,674 9,19,000 10.85
2008-2009 5,38,686 5,64,150 10.47
Source: Annual Reports, K.C.P Sugar & Industries Corporation ltd.,

This table reveals that there are fluctuations in the sugarcane crushing from
year to year. The major reason is that since, it is an agricultural product the climatic
conditions drastically affect the yield.

The recovery percentage of sugar is stable during this period. The production
trend of sugar is extremely irregular. Thus the performance in terms of area, cane
crushed in recovery percentage has shown a steady improvement.

Transportation of Sugarcane:

25
 Previously, the sugarcane used to the transported mainly by carts. But, now
due to a large area of nearly 60miles radius, most of the cane is being transported by
Lorries and tractors. The communication channels are mainly between Vijayawada
and Machilipatnam. This factory installed crushes capacity is 7500 TCD. Total land
under sugarcane cultivation is 34,000 areas and this divided into 7 zones.

The factory used 0.34 lakhs tones of cane in the year 1941, 2.12 lakhs tones in
1952 and afterwards it increased to 10 lakhs tones per annum. Sugarcane is supplied
from nearly 171 villages with radius of 50 Kms, of the factory that almost of the total
percent of sugarcane supplied to the factory comes from 74 Villages which are
situated between 11 to 20 Kms. This indicates that the factory has dependable source
of supply at the relatively close range.

The following table shows zone wise no. of villages and acres.
Zone No. of villages No. of acres
1 29 2748.45
2 31 4113.50
3 27 3081.64
4 11 3762.30
5 19 5635.23
6 14 2713.53
7 39 3210.61
Total 170 25265.26
Source: Agriculture dept. KCP Sugar and Industries Corp. Ltd., Vuyyuru.

Research and Development

To maintain the quality and competitiveness in technology and in-house
Research and development was started by K.C.P Sugars and Industries Corporation
Limited early in 1970. This is manned by qualified and experience engineers and
technologists.

Recently a few projects like Crop-Weather Relationship in Cane.

Application of computer technology in the development and procurement procedures
in the cane cultivation has been taken up under Research and Development project

ORGANIZATIONAL STRUCTURE OF K.C.P.S&I C ltd

Organization:
26
 An organization is something, which affects every one especially in the
industrialized, urbanized society of today. We are all members of not only one, but
several organizations. W.H. White identified a new breed of executives working for
large organizations and whose lives are dominated by them. The word organization
can be used in many ways and it is delayed as to form into a whole inter-dependent
parts.

Organization is the form of every human association for the attainment of a

common purpose. Money and Return.

The Oxford English Dictionary defines the word to organize as to frame

and put into working order. Organization relation of efforts and capacities of
individuals and groups engaged upon a common task in a way as to secure the desired
objective with least friction and the most satisfaction for whom, the task is done and
to she engaged in the enterprise. Organization exists to achieve some goals and they
usually are either unattainable by individually, they can be achieved more efficiently
through group effort. This concept explains general agreement with mission of the
organization. Organizations whether big or small private or public are the only
instruments available to over come the biological and psychological limitations.
Individual create various types of strategies to fulfill their needs and to achieve their
goals.
Organization is a systematic brining together of interdependent parts to form a
unified whole through which authority co-ordination and control may be exercised to
achieve a given purpose. According to L.A. Allen, sound organization can contribute
greatly to continuity and success of the enterprise. It allows management to relate
resources and flows continually for the enterprise. It allows management to relate
resources and flows continually for the achievement of over all objectives. It provides
an appropriate platform, from where management can perform the functions of
planning direction a controlling in a smooth way. Sound organizational structure
permits optimum use of technical and human resources through specialization. Right
persons are placed at right position on the basis of their knowledge and experience. It
also develops people by creating appropriate training and promotional productivity
opportunities. According to Richard II Hall, organizations increase productivity
through better understanding of human behaviors in an organizational setting.
27
Organization is divided into the following departments i.e.
Agriculture department
Human resource & development department
Engineering department
Process department
Finance department
Civil department
Transport department
Electrical department
Computers department
Sales department
Purchase department

28
29
KEY PERSONNEL LIST OF THE KCP S & IC LTD:
CHAIRMAN ---- SRI VINOD R.SETHI
MANAGING DIRECTOR ---- SMT. IRMGARD V.M.
RAO
EXECUTIVE DIRECTOR ---- SMT. KIRAN RAO. V
GENERAL MANAGER (FINANCE) ---- SRI R.GANESAN
GENERAL MANAGER --- SRI
VENKATESWARARAO.G
SR. DY.G.M.(FINANCE) --- SRI C.K. VASANTHA RAO
DY.G.M. (ADMN) --- SRI K.KRISHNA
DY. G.M. (PROCESS) ---- SRI K. SRI HARI BABU
DY.G.M. (CANE) ---- SRI V.V. PUNNA RAO
DY. G.M. (ENGG) ---- SRI N.D. PRASAD
MANAGER (ELECTRICAL) ---- SRI. M.VARATHARAJAN
MANAGER (SYSTEMS) ---- M.B.V.PRASADAREDDY

KCP Sugar & Industries Corporation Ltd., Vuyyuru Welfare

Facilities:

1. Free Medical Aid provided to both permanent and seasonal employees and
their dependents in the company's dispensary.

2. All the employees and their spouses have been covered under Group
Mediclaim policy, Management pays the premium, which may cost around Rs.
13 lakhs per year.

3. Group personal accident policy introduced and covers all the employees and
accordingly to the company bares part of the medical expenses and to meet the
salary of insured person during the period of hospitalization in the event of
accident while on duty or outside the factory premises, and consequent
treatment in the hospital.

30
4. Group Insurance scheme is live for employee's deposit linked insurance
scheme with accident benefit to an extent of Rs. 25,000/-

5. Loan facilities are being provided to the non-management staff @ Rs. 1000/-
and Rs. 1500/- to the Management staff for rather higher studies and who
have completed the course with in the stipulated time the said loan will be
waived off.

6. Two pairs of uniform, one pair of shoes and two pairs of socks provided to all
the employees once in a year.

7. Birthday greetings are being presented to all the employees on their Birthdays

8. Marriage gift cheque worth of Rs. 5,000/- will be presented to the employees
and Rs. 2000/- in case of employee's children.

9. A lump sum amount of Rs. 25000/- given to the Permanent employees and Rs.
1500/- to seasonal employees as festival advance.

10. June/July every year to meet their children's education allowances and the
same will be recovered in 8 installments on free of interest.

11. Free accommodation is offered to almost all the employees in the company's
Quarters.

12. Employees who underwent Vasectomy operation are granted for 6 days leave
as special case.

13. Free supply of 20 electrical units who residing in 'D' type quarters, 24 hours of
water supply and provision of power generator during power cutting time in
the colony.

14. Cable connection has been provided for 450 quarters.

15. Sports and Games are conducting on the eve of Independence Day
celebrations every year to the employees, spouses and their children separately
and mementos will be presented on Independence Day.

15. Mutual aided Thrift society is also being organized and employees are assisted
by giving loans up to Rs. 50,000/- to Non-Seasonal employees and Rs.
15,000/- to seasonal employees with 9% of interest.

31
16. The company having a canteen with all facilities provided to employees. About
700 persons are benefited on subsidized rates as detailed below. Tiffin and Tea
are being supplied to the work spots and also providing at canteen in the stall.

17. The management is present in on Wristwatch, Dhoti and Angavastram to the

employee and a Saree with blouse piece to his spouse along with one kg. of
Sweets on founder's day i.e. on 4th March.

18. Every year 15 Scholarships cash award Rs. 10,000/- are being awarded to
meritorious students of our employees children who are selected for
professionals courses.

19. Employee who retires from service on attaining the age of 60 years are
being presenting Rs. 10,000/- each as Retirement benefit to permanent
employees and Rs. 5,000/- to Seasonal employees (minimum service is 20
years)

20. Pension will be giving @ Rs.200/- p.m. to the non seasonal and Rs.100/- p.m.
to seasonal employees.

21. Employee who died during the service Rs. 20,000/- paid to his dependent as
Death benevolent fund and Rs. 10,000/- to the dependents seasonal employees
and Rs. 2,500/- as funeral expenses.
22. Elementary and High School Education is provided to the children of
employees. Beautiful buildings were constructed .Free education will be
provided to all the students joined in the school and the school is maintained
by the company.
23. Computers were installed in the school for 8th to 10th class students of our
school and house wiring vocational training also imparted to the students.
24 Group Gratuity Scheme under LIC is being provided to cover risk of the life of
our employees. In case of death, Gratuity is being paid to the dependent for the
balance period of service (till the retirement age) also.

32
SUGAR MANUFACTURING PROCESS:

Procurement of Sugarcane from the registered areas through Zonal Offices.

Weighment of Sugarcane in the Weigh Bridge.
Feeding of sugarcane in the Cane Carrier.
Preparation of Sugarcane into fine fibers through leveler units.
Feeding of prepared Sugarcane into the mills.
Extraction of 72% of Juice from the prepared Sugarcane in the first mill.
Juice Imbibitions to extract maximum juice in the remaining Fibers.
Juice is taken for boiling purpose.
Excess bagasse is sold.
The Juice extracted from the Mills is measured.
Treating of Juice in the Juice heaters.
Addition of liquid lime and sulphur-di-oxide in juice Sulphitor.
Separation of Clear Juice and muddy juice in the clarifier.
Clear Juice is sent for evaporation in the semi-kestners and Evaporators.
Extraction of juice from muddy residue through Vacuum Filters.
The extraction juice is reduced into Syrup after evaporation of water particles

33
 Addition of Sulphur-di-oxide to the syrup in order to improve the colour of the
sugar.
Syrup is sent to pans for massecuite boiling.
Production of massecuites by adding of various types of molasses & syrup.
Preparation of A, B & C massecuite.
A massecuite is improved from B massecuite.
B massecuite is improved from C massecuite.
Separation of C massecuite into C Seed and Final Molasses in the centrifugals.
Separation of B massecuite into B heavy and B Seed in the centrifugals.
Separation of A massecuite into Whiter Crystal sugar and A heavy and A light
in the Centrifugals.
The White crystal sugar is dried in the Sugar Hoppers.
White crystal sugar is graded in the Graders.
The non-uniform size sugar is sent for melting.
Graded White Crystal Sugar is sent for weighment and bagging.
Graded White Crystal Sugar is sent to sugar go down for stacking.

Factory division:
The factory division is headed by the plant manager who looks after the
performance and efficiency of the unit. He sends periodical reports to the chairmen
and managing directors of the KCP Ltd. The factory division has 22 departments.
Each department is headed by a senior executive who reports directly to the PM. This
classification of departments is based on functional specialization division of work is
the main basis of the existing hierarchical pattern of the factory. The different
departments of the unit perform different functions as detailed below.

Working hours and shift system:

34
 Sugar factory workers on a seasonal basis consisting two seasons. Generally it
had two types of shifts, systems and it varies according to convenience. During my
training period I observed that the general shift timings are :

Morning : 7:30 AM to 11:30 AM

Afternoon : 1:00 PM to 5:00 PM
Rest Period : 11:30 AM to 1:00 PM

During these seasons, 3 shifts are under practices they are:

Shift Time
A 2:00 AM to 10:00 AM
B 10:00 AM to 6:00 PM
C 6:00 PM to 2:00 AM

Unions:
The KCP Ltd., Lakshipuram has a union of employees details are as follows:

No.of union workers/ staff:

Name of the union workers/ staff : Challapalli Sugar Employees union
President : Mikkilieneni Papa Rao

Employment:
In order to meet the requirement of cost accounting records and fulfill the
records of regular information, the existing cost centres both production and service
have been arranged. The KCP Ltd mgt employees will be decided into two categories.
These are

Seasonal Employees
Non - Seasonal Employees

35
Manpower inventory in Non-Seasonal:

Manual Super Clerk Organisers Total

Vision
General 2 -- - - -
administration
Agriculture 8 - 25 0 33
Engineering 6 0 1 83 90
Electrical 2 0 0 11 13
Manufacturing 5 0 0 1 6
Laboratory 2 0 0 0 2
General Stores 1 0 1 3 5
Sugar 3 0 0 0 3
Personal Dept 2 0 0 0 2
Time office 3 1 0 0 4
Medical 0 0 0 0 0
Accounts 6 0 0 0 6
Purchase 1 0 0 0 1
Computers 3 0 0 0 3
Transport 1 0 0 4 5
Civil 3 0 0 4 7
Total 48 1 27 106 182

36
Manpower inventory in Seasonal:

Manual Super Clerk Organisers Total

Vision
General 0 0 0 0 0
administration
Agriculture 0 0 6 26 32
Engineering 0 0 0 22 22
Electrical 0 0 0 4 4
Manufacturing 0 4 0 50 54
Laboratory 0 1 0 5 6
General Stores 0 0 0 2 2
Sugar 0 0 0 9 9
Personal Dept 0 0 0 0 0
Time office 0 0 0 0 0
Medical 0 0 0 3 3
Accounts 0 0 0 0 0
Purchase 0 0 0 0 0
Computers 0 0 0 0 0
Transport 0 0 0 3 3
Civil 0 0 0 6 6
Total 0 5 6 130 141

37
Program of Expansion:
KCP has taken up the steps for technology up gradation for improvement of
productivity and quality of the sugar factory at Lakshmipuram.

By 1941-42, technology cane are was 1800 acres with production of 39.250
tones of cane. The higher realizations per cane from sugarcane crop greatly motivated
the extension of acreage under sugarcane and by 1951 the are had increased to 7.240
acres. The below table commenced its first expansion in 1951 from 800 TCD. To
1200 TCD utilized almost the entire quantity of sugarcane. There was second
expansion of tones in 1952 and this was further raised to 2500 TCD in 1956 all within
a span of six years. The sugarcane area increased to over 11000 acres and the
company utilized 3.23 lakhs tones of the cane in 1956-57. The cultivators readily
increased the area under sugarcane crop with every successive expansion since the per
acre income is better than alternative crop.

Annual Crushing Capacity Per day:

Year Crushing Capacity per day
1941 800 TCD
1951 1200 TCD
1956 2500 TCD
2001 3200 TCD
2007 4000 TCD

Functional Departments of the organization:

Departmentation refers to the formal structure of the org, compared of various
departments and managerial position & their relationship to each other. It is efficient
for effective grouping of jobs into meaningful work unit to co-ordinate numerous job
all for expeditious accomplishment at the organizations objectives.

KCP sugar Industries has adopted a effective departmentation for the smooth
for effective functioning of the org. The departments of KCP can be enumerated as
follows.

Personal Department:

38
 The personal department of the KCP concerns itself with the task of ensuring
that people working for the company are always physically & mentally fit for
competent. It develops policies & procedures and communicates such policies &
procedures to its employees taken care of recruitment, training, salary, motivation,
staff etc. it also takes care of the functions like maintenance of attendance level for
personal records.

Finance & Accounts Department:

The finance & accounts department of KCP managers finances of the
company. The accounts function records all the financial transactions & maintenance
proper accounts of income expenses, borrowings etc. The department also takes care
of the pay roll, preparation for processing of the same for employees of the entire org
every month.

Processing Department (production):

Production is the basic activity of all the industries in order to satisfy wants for
essential s, production is very impatient. The final product of production is goods and
services. KCP owns and operates two sugar units one is at Lakshmipuram and other is
at Vuyyuru. The main functions of production department are.
To meet the rising demands of the people
To provide better quality products.
to enhance the productivity at minimum cost possible
To provide for expansion of the existing business.
Optimum utilization of available resources.
To reach out the in international market with production and high
standards.

The manager is the head of the production department, he is called, the work
manager. He yields great power, enjoys a status and position, which are next in
importance only to the chief executive.

39
Sales Department:
The department identifies the needs of the customer functions such as market
research, sales promotion & corporate communications which form part of the
activities. This is an wholly autonomous body which is not bound by any rules &
regulations.

Computer Department:
This is the first computerized sugar unit of all the sugar industries present in
India. All the computers are well connected with Local Area Network (LAN). The
entries are node in chronological order ranging from accounting, business, repliers,
stores keeping etc.

Agricultural Department:
The company with a view to provide farm education & research facility to the
cane growers in sugar factory area prevailed upon the Andhra Pradesh Agricultural
University to set up a comprehensive sugarcane research center at vuyyuru. Useful
research findings have emerged from the station & applied in the farmer fields.

An intensive extensive integrated cane development was vigorously

implemented for the last 23 years which resulted not only in cane production,
benefiting both the growers & the factory

Exports:
Lakshmipuram sugar factory has earned a very prominent place in the export
of sugar from 1959 on wards. Raw sugar and white sugar are being exported every
year around 10-50% of its total production and thus helping the country to earn
precious foreign exchange. Sugar was being exported every year by the KCP till 1984.
But from 1985 onwards there was no sugar export from the Lakshmipuram sugar
factory due to non profitability. At present the sugar is being sold on the tender basis
at different places only with the country.

40
Labour Welfare activities in KCP Limited

The KCP Ltd is the biggest sugar in the Asian continent in the control of the
private mgt. during British rule the Government appointed a committee in 1920 for
the Europe. To see the position of cane and its development in the country. The
committees visited not only the corners of the country but also visited for the
submitted a volume course detailed report. It mentioned in its report for the state has
number sufficient water and it does not have goal source for the cane progress. But Sri
Rama Krishna has taken a challenge and the established the KCP Limited at first in
Krishna District ultimately in 1943 the full mgt cane under the hands of Sri Rama
Krishna.

The main production of KCP is the sugar and subsidiary produces industrial
alcohol and dilute sprite etc., the central shop is at Madras and its branch office is at
Vijayawada and Challapalli, Lakshmipuram.

Employee and Employers relationship:

The relation ship amicable with work motivates and better production and
profiles. The KCP employees and union leaders are from employees only providing
progressive better relationship with a mind of belonging there is no political
interference to the union, it is an dependent union not affiliated to any central or state
union there is no outside leadership the mgt at self encourage welfare activities to the
employees tech a paternalist attitude almost in some aspects beyond provisions in acts
to look after what best can do and to employees and to their families parallel to the
growth of industry. The feel that a happy and in the workers can produce good result
with effect man power with responsibility which leads to profile wealthy and healthy
atmosphere the employee also feels the factory has his own and behind to them.

41
Statutory Welfare Facilities:
House Rent:
House rent is being collected as per the recommendations of the wage board
for sugar industry at Rs.7/- per month for those who were allotted houses before
01.11.69. Rs.150/- will be paid.

Leave benefits:
The leave benefits given to the different category of employees in different
ways.

Safety appliances:
All safety protective equipment have been provided with as the jobs demand
washing soda to clean hands.

Gratuity:
Gratuity is paid for the payment of gratuity act.

Apprentices:
Apprentices engaged under APA Act, 1961 are allowed leave as per
apprentices Act. As per the KCP Officers Superannuation scheme which come into
force from 01.07.1990.

Encashment of Leave:
The supervisory personnel are allowed to accrue unaided sick leave. Operative
and clerical staff are paid wages at the end of every season for the unveiled casual
leave, unveiled sick leave and unveiled earned leave over and above 30 days subject
and a minimum of 11 days of all types of leave put together the seasonal employees
are paid wages at the end of every season for the unveiled casual leave granted at the
rate of one day for every 20 days of work

42
National & State Safety Awards List:
National Awards:
S.No Award Name Based On
1 2003- Winners National Safety Awards Lowest Average Frequency
Under Scheme - III rate of Accidents in industry
2 2003- Runner Up National Safety Award Longest Accident Free period
Under Scheme Iv
3 2004- Winners National Safety Awards Lowest average frequency
Under Scheme - III rate in Industry

4 2004- Runner Up National Safety Award Longest accident free period

Under Scheme IV
5 2005- Winners National Safety Awards Lowest average frequency
Under Scheme III rate in Industry
6 2005- Runner Up National Safety Award Longest accident free period
Under Scheme IV
7 2006- Runner Up National Safety Award Lowest average frequency
Under Scheme III rate in industry
8 2006- Runner Up National Safety Award Longest accident free period
Under Scheme IV
9 2007- Runner Up National Safety Award Lowest average frequency
Under Scheme III rate in industry
10 2007- Runner Up National Safety Award Longest accident free period
Under Scheme IV

State Awards:

1 1991- Best Trade Union Award Andhra Pradesh State

Government
2 1991 Sharmasakthi Award Sri K. Andhra Pradesh State
Bapaiah Chowdary, President, The KCP Government
Employees Union, Lakshmipruam
3 2006 Best Management Award Andhra Pradesh State
Government
ISO AWARDS

Approved by Lloyds Register Quality Assurance to the following

Environmental and Quality Management System

43
BE EN ISO 14001: 2004 BS EN ISO 9001: 2000
Certificate No. MUM0061333
Current Certificate: 28th May 2007
Certificate Expirty: 27th May 2010
Issued By: Lloyds Register Quality Assurance Limited.

Canteen:
The Canteen Catering Service Contractor has been supplying food stuff to our
employees since 30.03.2005, through the KCP Ltd., Employees Co. Operative Stores
Ltd. Lakshmipuram. The Contractor has been taking much care and supplying the
qualitative food and maintaining quantitative food stuffs. Contractor requesting to
enhance the rate of the food stuff being supplied to the employees, as the rates of
provisions are increased to 30% to 40%.

Our Canteen Committee met on 13th may 2008 and resolved in the meeting to
implement the following rates to the Canteen Contractor through our Co.Op. Stores
with the effect from 1st June 2008.

Name of the Exiting Rate Revised Rate

Sl.No
Item Rs. Rs.
1 Idly 2.20 2.50
2 Tiffin 3.00 3.00
3 Tea 1.25 1.50
4 Meals 13.00 15.00
5 Extra Meals 1.00 1.00

44
 THEORETICAL FRAME WORK

INTRODUCTION TO LABOUR WELFARE

The concept of welfare is flexible and elastic widely with times, region,
industry, country, social values and customs degree of industrialization the general
socio economic development of the people and the political ideologies prevailing at
particular moments.

A few of the definitions are given below:

The employee welfare investigation committee preferred to include under
employee welfare, including sickness and maternity benefits schemes, provided fund
benefits and pension etc

Thus the term welfare is a comprehensive term, which includes any activity,
which is, connects with social, moral, economic betterment of workers provided by
any agency. Such activities may differ from country to country and from region to
region to firm to firm.

DEFINITION OF LABOUR WELFARE:

Broadly speaking we can define labour welfare as Measures and Activities
under taken by state employees and associations of workers for the improvement of
the workers standard of life and for the promotion of the economy social well being
are labeled as welfare work.

I.L.O defined as such services facilities and amenities which may be

established in or in the vicinity of undertaking to enable the persons employing them
to perform their work in healthy congenial surroundings and provided with amenities
conductive to good health and high morale.

As a matter of fact, the whole field of welfare is one in which can be done to
come back the sense of frustration of the industrial workers to realize them of
personnel and family worries, to improve his health to afford him means of self
expression to offer him some span in which he can excel all other to help him to wider
conception of life.

45
THE IMPORTANCE OF WELFARE:
It Influence the sentiment of the Workers:
Welfare activities such as educational facilities, influence the sentimental
atmosphere of the factory they develop the feeling of friendliness.

Social advantages of Welfare of Workers:

It improves the workers physique and reduce incidence of vices mental
efficiently and economic productivity of workers.

Realization of workers importance:

Workers realized that they have also some stake in under taking and reduce
any Reckless action on their part and will be realized by the employers.

Reduce turnover and absenteeism:

Whatever improves condition of work and life of employees will reduce their
absenteeism and turnover.

It improves the standard of living of workers:

Welfare activities such as medical, canteen facilities and housing facilities
improve the standard of living of workers and their role in the economic development
of our country.

CLASSIFICATIION OF WELFARE MEASURES IMPLEMENTED

BY EMPLOYEES:

Welfare measures in industry are generally classified into four categories:

Statutory measures
Non Statutory measures
Voluntary activities
Mutual Activities

46
Statutory Measures:
Statutory measures are compulsory welfare measures to be implemented by the
employers various labour legislations such as factorys act workmen compensation
act etc. have been enacted by the Government to compel that employers to provide the
welfare measures as directed in these enactments non-compliance of the statutory
welfare measures by the employers would bring in panel action by the Government
against the erring employers. Thus statutory welfare measures are compulsory welfare
measures which should be implemented by the employers in the respective industries.

The statutory welfare requirements in the country may broadly be classified into
two heads

Those which have to be provided irrespective of the size of the establishment

or the No. of the persons employed there in such as washing, storing and
drying of clothing, drinking water, latrines and urinals.
Those which are to be provided subject to employment of a specified no. of
persons such as canteens rest shelters crches and ambulance rooms.

Non-Statutory measures:
Non-statutory welfare measures are implemented by the employers with a
humanitarian outlook. These measures are not compulsory measures the Non-
statutory measures generally include those welfare measures which are facilities
provided outside the establishment. These facilities are provided to motivate the
labour to contribute their best in terms of higher productivity.

Voluntary Welfare activities:

Voluntary Welfare activities are based on pillion therapy and on the brief that
it is a sound investment as its leads to the efficiently of the workers. All those
activities which are undertaking by the employees for the betterment of workers by
providing facilities to their employees without any pressure from the Government are
called voluntary activities.

47
Mutual activities:
Mutual welfare activities are those which are organized by the trade unions for
the benefits of workers. Thus these are activities for and by the workers for their
mutual help and benefits.

CONCEPT OF LABOUR WELFARE AND WELFARE STATE:

The all round acceptance that the concept of labor welfare is a mainly due to
the three reasons.

Firstly:
The need to provide a better life for the workers was dictated by the necessity
to maintain the goodwill of the large and rather freshly recruited war-time labour
force and to gear them to increased production.

Secondly:
The industrial expansion in the advanced countries of the world and the
concomitant process of mass production and mass selling lead to the rose of working
classes as a sou

48
 DATA ANALYSIS AND INTERPRETATION

1. Are you happy with welfare facilities provided by your

organization?

Welfare facility No. of responds % of responds

Yes 80 80%

No 0 0%

Total 80 80%

Graph 5:2;1

Interpretation:
From the above table shows that all employees are happy with welfare
facilities provided by the organization. It is clear that the K.C.P sugar & industries
corporation limited provide good welfare facilities.

49
2.What is the welfare facilities provided in your organization?

Welfare facilities No. of responds % of responds

Canteen & rest room 32 40%
Housing facilities 16 20%
Transportation facility 8 10%
Safety & first aid 16 20%
Medical facility 8 10%

Total 80 100%

Graph 5:3:2

Interpretation:
From the above table shows Organization provides canteen & restroom safety
& first aid and medical facilities for all employees. But housing facilities provide for
only 70% employees transportation facilities for only 20% employees who work in
agriculture department.

3. Are you satisfied with the housing facilities provided by your organization?
50
 Housing facility No. of responds % of responds
Very good 36 45%
Good 32 40%
Satisfied 12 15%

Bad 0 0%
Total 80 100%

Graph 5:4:1

Interpretation:
From the above table shows organization provides housing facilities for only
approximately 50% of the workers. The company provides housing facilities for only
permanent employees. The above table shows that 45% employees are highly satisfied
with housing facilities.

51
4. Company provided any childrens educational facilities?

Childrens No. of responds % no. of responds

educational facility

Yes 8 10%

No 72 90%

Total 80 100%

Graph 5:4:1

Interpretation:
From the above table shows information I observe this organization does not
provide any educational facilities for worker childrens like primary schools high
schools etc. But company gives some scholarships to the merit students.

52
 5. Are you satisfied with the safety practices being following in
your
Organization?

Safety practices No. of responding % of

responding
Very good 32 40%

Good 24 30%

Satisfied 8 10%

Bad 16 20%

Total 80 100%

Graph 5:5:1

Interpretation:
From above table shows that company provides good safety practices for
employees like providing helmets, aprons, goggles and first aid equipments fencing of
machines etc.

53
6. Are you satisfied with the recreation facilities provided by the
Organization?

Recreation No. of responds % of responds

facilities

Very good 16 20%

Good 36 45%

Satisfied 28 35%

Bad 0 0%

Total 80 100%

Graph 5:6:1

Interpretation:
From above table shows the outcome of this question is the company provided
good recreation facilities in past years. But last 2 to 3 years the company minimizes
the recreation facilities.

54
7.Whether your company is providing canteen facility. How you feel
the quality food & supply?

Canteen facility No. of responding % of responding

Very good 24 30%
Good 24 30%

Satisfied 32 40%
Bad 0 0%

Total 80 100%

Graph 5:7:1

Interpretation:
From above table observe that the canteen is run by co-operative sector.
Majority employees are only satisfied with the canteen food & supply.

55
8. Are you satisfied with the rest room facilities provided by your
Company?

Rest room facility No. of responds % of responds

Very good 16 20%

Good 28 35%

Satisfied 32 40%

Bad 4 5%

Total 80 100%

Graph 5:8:1

Interpretation:
From above table shows that company provides rest room facilities only
satisfied by majority workers.

56
9.Are you satisfied with the medical facilities provided?

Medical facility No. of responds % of responds

Very good 32 40%

Good 16 20%

Satisfied 32 40%

total 80 100%

Graph 5:9:1

Interpretation:
From above table show that company provides good medical facilities for
workers. So many employees express their opinion is very good and also satisfied
about medical facilities. But this organization does not provide medical facilities for
workers children.

57
10. How do you access the functioning of consumer co-operative?
Stores in KCP

Co-operative stores No. of responds % of responds

Very good 16 20%

Good 24 30%

Satisfied 36 45%

Bad 4 5%

Total 80 100%

Graph 5:10:1

Interpretation:
From the table shows above analysis that highly employees are only satisfied
with co-operative stores.

11. Your company is provided any festival advances?

58
 Festival advances No. of % of repondents
responding
Yes 80 100%

No 0 0%

Total 80 100%

Graph 5:11:1

Interpretation:
From the table shows analysis that this organization provides excellence
festival advances for their workers.

59
12. Your company having any pension scheme?

Pension scheme No. of responds % of responds

Yes 80 100%
No 0 0%
Total 80 100%

Graph 5:12:1

Interpretation:
From the table shows that organization provide pension scheme for permanent
employees after their retirement.

60
13. Are you satisfied with the present channels of communication?

Channels of No of responds % of responding

communication
Very good 40 50%
Good 24 30%
Satisfied 12 15%
Bad 4 5%
Total 80 100%

Graph 5:13:1

Interpretation:
From The above table analysis shows that the K.C.P sugar & industries
corporation Ltd provide good channels of communication. Most employees are
responded the channels of communication are very good provided by their
organization.

14. Are you satisfied with your job & salary provided by the
61
 Organization?

Job & Salary No of responds % of responds

Satisfied with both job& 48 60%
salary
Satisfied with only job 24 30%

Satisfied with only 0 0%

salary
No satisfied 8 10%
Total 80 100%

Graph 5:14:1

Interpretation:
From The above table analysis shows that so many employees satisfied with
both job & salary. Some employees satisfied with only job that means they want more
salary. Least % of employees not satisfied with both job & sala

15. How you feel employees & employer relation?

62
 Employee & No of responds % of responds
employer

Very good 52 65%

Good 28 35%

Satisfied 0 0%

Bad 0 0%

Total 80 100%

Graph 5:15:1

Interpretation:
From The above table analysis shows that the K.C.P management maintain
very good relations with their employees.

63
16. Are you encourage the social activities provided by the
Organization for society?

Social activities No of % of responds

responds
Yes 80 100%

No 0 0%
Total 80 100%

Graph 5:16:1

Interpretation:
From The above table shows All the employees are respond this question is
positively. That means all the employees are encourage the social activities provided
by the organization for society.

64
17. Are you satisfied with the loans provided by the organization?

Loans No of responds % of responds

Very good 28 35%

Good 40 50%

Satisfied 12 15%

Bad 0 0%

Total 80 100%

Graph 5:17:1

Interpretation:
From The above table shows That organization provides loans for employees
with the help of co-operative banks. Most of the people respond good for this
question.

65
 18. Are you satisfied with the drinking water provided by the
organization?

Drinking water No of responds % of responds

Very good 40 50%

Good 16 20%

Satisfied 20 25%

Bad 4 5%

Total 80 100%

Graph 5:18:1

Interpretation:
From The above table shows The K.C.P sugar & industries corporate limited
provide good drinking water facilities for workers. And also company provides Nandi
purified water for employees and their families

66
 19. Are you satisfied with the working hours provided by the
organization?

Working hours No of responds % of responds

Very good 64 80%

Good 12 15%

Satisfied 4 5%

Bad 0 0%

Total 80 100%

Graph 5:19:1

Interpretation:
From the above table analysis shows that this company provides good working
conditions for their employees.

67
 20. Do you suggest any improvement in the welfare amenities?

Suggestions No of responds % of responds

Yes 44 55%

No 36 45%

Total 80 100%

Graph 5:20:1

Interpretation
From the above table analysis shows Majority of employees responded
positively for this question. They suggest for organization provide educational
facilities for their children.

68
FINDINGS
Here the management provides good channels of communication.
Employees highly satisfied with these channels of communication.
In this organization the canteen runs by co-operative stores.
The time office members wrote slogans on the notice board every day.
These slogans are very effective to motivate the employees for increase
their ethics & moral values.
The organization maintain beautiful garden.
The organisation provide training facilities for employees to improve
their communication skills, moral values, ethics and safety etc.
The organization provides excellent housing facilities for employees.
So many employees satisfied with these housing facilities.
Presently the company recruits the sons of present/retired employees
and trainees them in the various jobs. The training period ranges from
2 to 5 years depending on the skill required
Induction producer is an informed organization any employee can take
the responsibility of inducting the new recruit.
Medical facilities as required by the provision of pectoris act are
provided.
The company is granting 6 days special leave to its employee is under
go family planning operation.
The canteen is run by the co- operative stored.
ome of the employees are allotted houses in the employees colony.
The company is not providing any transport of facilities to the workers.
With regard to recreational facilities, the existing facilities provide
games like volleyball and kabbaddi etc. There is no library and reading
room.\
Presently the leave travel facility is extended only to officers of the
company.

69
SUGGESTIONS

The organization should provide library facilities for their employees

for increase their knowledge, skills etc. And also provide news papers
in rest rooms.

The organization should provide education facilities for workers

childrens.

The Organization should provides training facilities they use high level
language. The workers did not understand this programmes. So the
organization provide training facilities we simple language for better
understanding

The organization should provide medical facilities for employees

children.

The organization should provide good quarter facilities for employees.

But some workers do not have this facilities. And they want to provide
recreation facilities like sports ground their childrens etc.,

The organization should provides cool drinking water

70
 Bibliography

Name Name of the book

A.M .Sharma Aspects of labour

welfare in India.

P.Subbarao Essential of Human

Resource
Management and
Industrial Relations.

T.N.Bhagodhiwala Personal
Management and
Industrial Relations.

Websites:
www.indiansugar.com
www.google.com

ANNEXURE
71
Questionnaire
Employee Name :
Qualification :
Department :
Designation :
No.of years Experience :
Please tick ( ) the appropriate option given below.

1) Are you happy with welfare facilities provided by your organization? ( )

a) Yes b) No

2) What are the welfare facilities provided in your organization? ( )

a) Canteen & rest room b) housing facilities
c) transportation facility d) safety & first aid
e) Medical facility f) All the above

3) Are you satisfy with the housing facilities provided by your organization. ( )
a) Very Good b) good c) satisfied d) Bad

4) Company provided childrens facilities

a) Yes b) No

5) Are you satisfied with the safety practices being following in your ( )
organization?
a) Very good b) good c) Satisfied d) Bad

6) Are you satisfied with the recreation practices being following in your ( )
organization?
a) Very good b) good c) Satisfied d) Bad

7) Whether your company is providing canteen facility. How you feel the ( )

72
 quality food & supply.
a) Very good b) good c) Satisfied d) Bad

8) Are you satisfied with the rest room facilities provided by your company? ( )
a) Very good b) good c) Satisfied d) Bad

9) Are you satisfied with the medical facilities provided by your company? ( )
a) Very good b) good c) Satisfied d) Bad

10) How do you access the functioning of consumer co-operative stores in KCP ( )
a) Very good b) good c) Satisfied d) Bad

11) Your company is provided any festival advances? ( )

a) Yes b) No

12) Your company having any pension scheme? ( )

a) Yes b) No

13) Are you satisfied with the present channels of communication? ( )

a) Very good b) Good c) satisfied d) Bad

14) Are you satisfied with your job & salary. Provided by the ( )
Organization
a) Satisfied with both job & salary b) satisfied with only job
c) satisfied with only salary d) no satisfied

15) How you feel employee & employer relation? ( )

a) very good b) good c) satisfied d)Bad

16)Are you encourage the social activities provided by the organization ( )

for society.
a)Yes b) No

17) Are you satisfied with the loans provided by the organization? ( )
73
 a) very good b) good c)satisfied d)Bad

18) Are you satisfied with the drinking water provided by the ( )
organization?
a) very good b)good c)satisfied d)Bad

19) Are you satisfied with the working hours provided by the ( )
Organization?
a)very good b)good c)satisfied d)Bad

20) Do you suggest improvement in the welfare amenities in your ( )

Organization?
a)Yes b) No

74