BINANI CEMENT PVT LTD

OVERVEIW
Binani Industries Ltd. is a fast growing, multidimensional business conglomerate with sales,
manufacturing, and R&D operations spread in Asia, Europe, Middle East and North
America. Its diversified businesses deliver products and solutions in the areas of cement,
zinc, glass fibre and related composites, energy and industrial infrastructure.
The Braj Binani Group has boldly embraced path-breaking initiatives growing organically
and through acquisition to deliver accelerated business results on multiple fronts. As a result
today, Binani Industries is a significant contributor to Indias industrial growth. Yet, this focus
on business growth does not detract from a very high level of commitment to important
corporate social responsibility issues such as the environment, health, education and other
community issues. Binani Industries Ltd. initiatives focus on both business growth and
corporate social responsibility.

Globalization:
Building on a 140 year history of business visionaries, the chairman, Mr. Braj Binani has
launched the group on a track of rapid global expansion not just on the sales front, but also in
R&D and manufacturing. The first moves resulted in the set up of cement manufacturing
plants in Dubai and China allowing Binani Cement Ltd. to open second and third sources for
cement and located close to new markets in Africa, Southern Europe and Asia. Further,
European and U.S. apart from India footprint has been established with acquisitions (below).

Leading Edge Technologies:

The company has added advanced technologies in the glass fibre and composites space with
key acquisitions of 3B Glass Fibre, a European Euro275M leader of fiberglass products and
technologies, and Composite Products Inc. (now CPI Binani), a leading global manufacturer
in the U.S. of inline compounding and molding of thermoplastic composites.

Manufacturing Quality and Efficiency:

While new technologies are being added to the Binani Industries portfolio, in its more
established businesses such as cement and zinc, the group continues to raise the bar on
improving quality and efficiency with ultra modern manufacturing. With high quality being
synonymous with its brand name, Binani Industries cement and zinc products compete at the
global level and continue to enter new, emerging markets all around the world.

Environmental Responsibility:
A strong focus on green sustains not just the company but also the planet. The companys
efforts are focused on prudently using and conserving natural resources, deploying superior
technical solutions to prevent ecological contamination, and proactively adding trees and
greenery around the factories to compensate for the carbon footprint of production. On the
technical front, better coal-firing burners, air cooled condensers, quieter and cleaner
limestone blasting, removing dust from kiln exhaust gases, and residue management of
hazardous waste are some of the ways in which the group is going green.

Social Responsibility:
Expansion of factories and new production facilities are always accompanied with a plan for
developing the local communities and empowering them with facilities for children
education, vocational training, and health care. Other essentials such as banks, post office,
adequate drinking water supplies, housing, scholarships, and community entertainment halls
are all planned to allow the work force to live comfortably and in harmony.
Core Values:

The Braj Binani Group holds in high regard core values, such as honesty,
transparency, and efficiency along with constant efforts to provide customer
delight with the highest quality and dependable delivery of products. These
core values are central to the business philosophy of the Binani Industries and
act as the guiding beacon for the day-to-day business operations.

Mission and Vision

The Braj Binani Group aims to be a pioneer in all its endeavors and set
benchmarks while focusing on sustainable growth. This ensured the progress
and transformation of Braj Binani Group from its humble beginnings to its
present day global stature.

To achieve leadership status in the core sector, across the world

To employ frontline technologies to meet the highest global standards in
products and services
To set benchmarks in manufacturing and environmental performance

To be a customer-first, quality-obsessed, socially sensitive corporate

entity

To achieve breakthroughs in manufacturing based on intensive R&D

To ensure well-being of all our stake-holders; upholding such values as
integrity, trust, concern,
empathy and commitment

Our History

The Braj Binani Group made a humble beginning in the metals business in
1872, when Seth Pragdas Binani, a trader in metal utensils started an
enterprise with his son Seth Mathuradas to import and export metals. This
enterprise grew stronger and bigger and Seth Mathuradas son Seth
Govardhandas took a bold step to move from trading to manufacturing. Binani
Metal Works was founded in the year 1941 with a full-fledged manufacturing
plant at Howrah. The genius he was, Binani Industries entered the global
market in early 1950s.

Taking inspiration from his fathers entrepreneurial

skills, Ghanshyam Binani, the son of Govardhandas Binani anticipated the
vast potential of zinc and founded Binani Zinc in 1967. While the prime focus
was on manufacturing, the companys inherent attributes of continual
improvement helped shift focus towards R&D, thus modernizing and
expanding its capacity.

Continuing the legacy the visionary leadership and business acumen of Braj
Binani, the son of Ghanshyam Binani put the Binani business on a fast track.
With Braj Binani as its Chairman, the company truly began to aggressively
explore new horizons and grow very rapidly.
The group now known as the Braj Binani Group, was restructured between
1996 and 2004, and Binani Industries Limited (BIL) was founded to serve as
the holding company of the group. New businesses have been added and
today Binani Industries Ltd. comprises 5 key businesses areas Cement,
Zinc, Fibreglass, Infrastructure Construction, and Energy production.
Over its eventful growth journey, the core values of the Company such as
honesty, transparency, quality and efficiency along with constant efforts to
provide customer delight have remained unchanged. The Braj Binani Group is
still driven by the same ambition to succeed and the need for continual
improvement that transformed Seth Pragdas Binanis metal trading house into
one of Indias top notch business conglomerates. After establishing its
footprint firmly in India, China, and Dubai, the Braj Binani Group is now
envisioning to explore newer global horizons, setting its sights on emerging
markets, such as South Africa, East Africa, and Mauritius as well as more
established markets in Europe and United States.

PRODUCT OF INDUSTRY
Binani Cement
Quality, Strength, Reliability, Performance, and Consistency are words that are
synonymous with Binani Cement, the flagship company of the Braj Binani
Group. In cement matters, these qualities make Binani Cement the preferred
choice for engineers, builders, and contractors. Binani Cement forms the
foundation of some prestigious projects in India and abroad Dubai Metro
(fully automated rail network), and the state of the art Port Khalifa at Abu
Dhabi.
Binani Cement is amongst Indias reputed manufacturers of cement with a
global manufacturing capacity of 11.25 million tons per annum with an

integrated plant in India and China, and grinding units in Dubai. The
Companys product portfolio includes:

Ordinary Portland Cement (OPC):

General purpose high strength cement, which is widely used in general civil
engineering construction work combines with water, sand and stone to form a
durable and strong construction concrete capable of bearing great loads.
Binani Cement produces OPC cement of two grades 43 and 53.

Pozzolona Portland Cement (PPC):

Environmental friendly and economical PPC cement is valued for its greater
resistance to the attack of aggressive waters as compared to normal Portland
Cement. This is the preferred choice of cement for building hydraulic
structures, mass concreting works, marine structures, masonry mortars and

plastering. High compressive strength, consistency in quality and accuracy in

net weight of the cement bag make Binanis PPC & OPC cement the most
trusted and preferred cement in the market today.
Ground granulated blast-furnace slag (GGBFS):
Granulated blast furnace slag is a by- product of steel plants, granulation is
done by quenching with water. GGBS is used to make durable concrete
structures in combination with ordinary Portland cement and/or other
pozzolanic materials. It is known for its durability, extending the lifespan of
buildings from fifty years to a hundred years. Binani Cement produces GGBFS
of grade 120.

Global Manufacturing
The Binani Cement Limited Plant was initially setup at Binanigram with a
capacity of 1.65 million tons per annum (MPTA) but today, the cement
capacity is 6.25 MTPA. After its success in the Indian market, Binani Cement
has taken giant strides into the international arena. Today, it has
manufacturing facilities in China -Shandong Binani Rongan Cement Co. Ltd.
(SBRCCL) and Dubai Binani Cement Factory LLC that are setting global
benchmarks.
Markets:
Binani Cement has a well-established sales network in India, UAE, UK,
Sudan, South Africa, Tanzania, and Namibia.

Glass Fibre and Composites

Binani Industries Ltd. is a leader in the fibreglass and composites industry with
a global business in manufacturing and supply of fibreglass and related
products.
Fibreglass or glass-reinforced plastic is used to manufacture composites,
which are widely used in the market today to replace steel, aluminium and
other lower strength plastics. Composite materials find their uses in various
industries, such as aerospace, automobiles, transportation, energy,
infrastructure, construction, electrical insulation, telecommunication, medical
equipment, and sports due to its low cost, ready availability, excellent strength,
and durability.
Binani Industries Ltd. was quick to assess the potential of the fibreglass
market and to establish a strong foothold in this sector. Using a combination of
organic growth from its own fibreglass and composites manufacturing units
and strategic acquisitions of leading companies in this field, Binani Industries
has established a comprehensive product line as a glass fibre manufacturer
with four manufacturing centers in Europe, India and USA, all of which are
wholly owned subsidiaries of Binani Industries Ltd.

Binani 3B- The Fibreglass Company, 3B- The

Fibreglass Company, is a global developer and supplier of fibreglass products
and technologies for the reinforcement of thermoplastics and thermosets.
Headquartered in Battice, Belgium, it has a rich legacy and expertise in
research, innovation and development of fibreglass products and composite
solutions. 3B uses state-of-the-art manufacturing processes and produces
environment-friendly products with a very low carbon footprint. 3Bs business
strategy is focused on three key segments:

Thermoplastics

Wind Energy

Performance composite applications for which 3B offers unique

attributes such as pressure vessels, ballistic protective armour, pipe
rehabilitation, leaf springs and electrical insulators

Binani 3B- The Fibreglass Company,Goa,India , produces and

exports high-grade glass fibre to 26 countries across five continents. Located
in Goa, India, it uses an innovative technology for glass melting, which helps
save fuel, and reduces emission of combustive gases into the atmosphere.

BT Composites Limited, is a forward integration

project that transforms glass fibre into value added composites. BT
Composites manufactures glass reinforced plastics that are used to produce
SMC (Sheet Moulding Compounds) and DMC (Dough Moulding Compounds)
products for water storage, electrical and industrial sectors such as water tank
panels, meter boxes, and electrical sheets.

CPI Binani Inc, is a leading manufacturer of long fibre thermoplastic

composite materials for medical, construction, electronics, agriculture,
recreation, industrial, appliances, automotive, and furniture industries. The
Braj Binani Group signed a merger agreement with USA based Composite
Products, Inc. (CPI) to gain access state-of-the-art technology and products
for its glass fibre and composites business. CPI Inc. has several patents to its
name. CPI Binani Inc. uses in-line compounding processes and molding of
thermoplastics, which is very cost-effective
The Road Ahead:
With an increase in the usage of composites in different industries, the
demand for composites is increasing globally, which puts Binani Industries
Limited in a strategic position for growth.

Binani Zinc Limited

Binani Zinc Limited is a pioneer in the manufacturing of Special High-Grade

Electrolytic Zinc in its custom zinc smelter at Kochi, India. An obsession for
consistent quality and a customer-first approach has built a enviable
reputation for Binani Zinc, making it the preferred choice across all industry
segments. The current production capacity is 38,000 TPA of Zinc metal with
Sulphuric Acid & Cadmium associated by-products.
Zinc is the fourth most widely used metal after Iron, Aluminium, and Copper. It
is used for a variety of purposes including galvanizing steel, manufacturing
LPG regulators, automobile components, zippers, dry cell batteries, specialty
chemicals, alloys, doorknobs, door handles and fittings, paint, rubber and car
tires. Binani Zinc Ltd.s product portfolio includes:

Zinc products- Zinc ingots of 99.995% (SSHG) purity, Zinc alloys, and
Zinc dust. We are the only alloy manufacturer in the country to produce Zinc
alloys (ZAMAK 3 & ZAMAK 5) from our own SSHG zinc ingots

Sulfuric acid of 98.5% concentration

Cadmium plates of 99.95% purity

Manufacturing:
Binani Zinc Limited commissioned
operations in 1967 at Binanipuram
with a capacity of 14,000 TPA.
Located on the bank of River
Periyar and close proximity to the
Kochi port, ensures that the plant
has easy access to abundant
water and transportation. The

company has constantly upgraded its production facilities, and today the plant
boasts of the best-in-class technology in zinc manufacturing.
The company follows best manufacturing practices, such as SPC-SQC,
DCS/SCADA based process control and strict quality control to ensure high
quality and efficiency. A DST approved, in-plant Research & Development
Centre, works around the clock to incorporate innovation into products and
processes, and improve the quality.
Certifications:

Binani Zinc Ltd. is first in India to be certified under

various International standards viz. ISO 14001:2004 for Environment
Management, ISO 9001:2008 for Quality Management, OHSAS 18001:2007
for Occupational Health & Safety and SA 8000:2008 for Social Accountability.
The Road Ahead:
Binani Zinc Limited plans to expand its production capacity to 1,00,000 TPA.
The company plans for backward integration into mining and is looking at
acquiring strategic stakes in mining operations both in India and abroad.
Future Plans:
Binani Zinc Ltd.s future plans include recovery of Lead & Silver values from
the feed, backward integration into captive mines; investments into mines with
off-take rights and Brownfield / Greenfield expansion of the Smelter.

Sustainability at Binani
Industries Limited
Our Philosophy

Binani Industries Ltd. is committed to address all significant aspects of

sustainability through ethical business conduct and uphold stakeholder
interest. The objective is to make the world a better place for present and
future generations. Our business model has a progressive and innovative
outlook, dedicated to excellence in performance not only across revenue and
economic growth but also across the metrics of environmental sustainability &
social equity. The company believes in converting sustainability risks into
business opportunities.

Social Commitment
The Braj Binani Group has a strategic approach to improving the quality of life
of the people living in the society around us and forms a part of our core
business activities. The community development activities are focused on the
development of the local communities around our manufacturing operations.
The company works in tandem with the communities and play an important
catalytic role in their growth. The company has launched several initiatives to
support various social development activities as a part of the companys
commitment toward inclusive growth and create an environment that is
sustainable and enterprising. Some of these endeavors are listed below.

Ghanshyam Binani Foundation, a not for profit, charitable organization

that has touched innumerable lives and created a difference in society. The
focus areas of the foundation are education, health and livelihood.

Ghanshyam Binani Foundation has instituted an annual national

bravery award in the memory of Shri Ghanshyam Binani, for children below
the age of sixteen that helps to inculcate a spirit of courage and humanity
amongst our youngest citizens. The award honors acts which reflect the spirit
of courage, humanity and presence of mind.

The G. D. Binani Trust runs a post-graduate college at Ghanshyam

Binani Academy of Management Sciences, an esteemed institute of higher
learning, at Mirzapur, Uttar Pradesh.

BCL has taken major initiatives towards education, health care, and
livelihood, which include setting up Vaikalpic Vidyalayas in the village
Thandiberi, to benefit tribal students. A training center for women was set up
wherein women are imparted training in tailoring skills, and have additionally
been provided financial support for purchase of sewing machines.

Children from the socially underprivileged families of Edayar village

adjoining the BZL operating unit, are provided educational sponsorships
through the Child Sponsorship Program.

BZL is conducting the Higher Education Scholarship Scheme to support

academically talented students, who receive scholarships to pursue higher
education.

The Youth Empowerment Program channelizes the youth energy,

grooms and assists them in becoming responsible citizens of society. This
endeavor aims to improve the personal development of the youth through
various activities including team sports, debates and eco-drives. Members of
four local youth clubs are part of this initiative.

The children at the Government High School, Binanipuram receive

numerous facilities including special tutorials for weak students, free meals,
medical check-ups, and award for Best Outgoing Student.

At BZL, medical insurance is provided to all the families of Ward 17

through the Viswarogya Insurance Scheme. Insurance companies in both the
public and private sectors have come forward with schemes that complement
the provisions of the government for ensuring a universal coverage of medical
insurance.

In partnership with the Rotary Club, BZL instituted the Rotary-Binani

Zinc CSR Award in FY 2010-11 to encourage and inspire other corporates to
be socially responsible. This award was conceptualized in association with the
National Institute of Personnel Management and Indian Institute of Chartered
Accountants.

Health and Safety

The Braj Binani Group is committed to provide the highest standards of
workplace safety to our employees. All our operations have adequate systems
and procedures for safety of employees, their families and communities as
well. Safety is not just a regulatory requirement but also a part of regular
business conduct. The Company envisages maintaining its goal towards safe
operations with zero reportable injuries and fatalities across our business
units.

Health
We believe that health and safety of the workforce is critical to our success.
The Ghanshyam Binani Health Centre and various other health initiatives
undertaken for our community highlight our commitment towards maintaining
good health environmentof the community.
Pakalveedu or Daycare for Senior Citizens , Kerala

This is a non-institutional and community-based service

with the intention of integrating the elderly with the community. Various
activities undertaken at the daycare center, such as newspaper reading,
discussing local reports, sharing personal experiences, games, yoga, medical
help, counseling, and celebrating special occasions add great meaning to the
lives of senior citizens.

Ghanshyam Binani Health Centre (GBHC), Kerala

The Ghanshyam Binani Health Centre (GBHC), Kochi,

Kerala aims at promoting physical, mental, and social well-being of workers. In
this regard, GBHC conducts pre-employment checkups for new recruits,
annual checkups for employees, canteen workers, and security personnel for
lifestyle disorders such as hypertension, obesity, high cholesterol and other
diseases such as cardiac disorders, hearing loss.
G. D. Binani Diagnostic Center, Rajasthan

The well-equipped G. D. Binani Diagnostic Center offers state-of-the-art

facilities (ambulances, pathological lab, X-ray and ECG machines,
spirometers, suction machines, dopplers, etc.) and services to extend medical
treatment to patients. The health center periodically conducts free multispecialty health and eye checkup camps and distributes free medicine to the
villagers. More than 10,000 patients benefit from this every year.
Safety

The Braj Binani Group is committed to provide the

highest standards of workplace safety to our employees. All our operations
have adequate systems and procedures for safety of employees, their families
and communities as well. Safety is not just a regulatory requirement but also a
part of regular business conduct. The Company envisages maintaining its goal
towards safe operations with zero reportable injuries and fatalities across our
business units.

Safety Measures

Stringent safety measures are enforced to follow safety systems and

procedures to avoid any unsafe practices.

Special check valves are provided in equipment to avoid contamination

in air, water, or land.

Regular inspection of safety equipment is done and a trained workforce

of security officers is available to handle any emergencies.

All operating units are OHSAS 18001 certified and have state-of-the-art
Safety Management Systems in place.

Regular seminars and workshops on various safety related topics are

organized to improve the awareness on safety and health.
National Safety Week
National Safety Week is celebrated every year during which the employees
take the safety pledge. Seminars and workshops are organized in which

various industry experts and government officials from reputed institutes are
invited to promote safety awareness for employees and their families.

About National Fertilizers Limited (NFL):

NFL, a Schedule A & a Mini Ratna (Category-1) Company having its registered Office at
New Delhi was incorporated on 23rd August 1974. It Corporate Office is at NOIDA (U.P). NFL
is under the administrative control of Ministry of Chemicals &Fertilizers, Department of
Fertilizers. It has an authorized capital of`1000 crore and a paid up capital of ` 490.58 crore
out of which Government of Indias share is 90% and 10% is held by financial institutions &
others.
Industrial / Business Operations
NFL has five gas based Urea plants viz Nangal & Bathinda in Punjab,Panipat in Haryana
and two at Vijaipur (Madhya Pradesh). The above plants at Panipat, Bathinda & Nangal
have recently been converted from fuel oil feedstock to natural gas. Vijaipur plants have also
been revamped for energy saving & capacity enhancement. Total annual Urea installed
capacity of the Company is 35.68 LMT.
NFL is engaged in manufacturing and marketing of Urea, Neem Coated Urea, Bio-Fertilizers
(solid & liquid) and other allied Industrial products like Ammonia, Nitric Acid, Ammonium
Nitrate, Sodium Nitrite, Sodium Nitrate etc.
The Company is also doing trading business in various agro-inputs like certified quality
seeds, compost / Vermi compost manure, agrochemicals like Insecticides / Herbicides,
Bentonite Sulphur etc. Company is also taking up initiative for setting up of Single Super
Phosphate (SSP), Heavy water, Bentonite Sulphur plants etc.
The Companys Marketing Network comprises of Central Marketing Office at NOIDA, three
Zonal Offices at Bhopal, Lucknow & Chandigarh, 13 State Offices and 39 Area Offices
spread across the country.
The company has been mandated to revive the closed plants of Fertilizer Corporation of
India Limited (FCIL) at Ramagundam in collaboration with M/s EIL and M/s FCIL by setting
up Ammonia & Urea plants of annual capacity 7.26 LMT & 12.71 LMT respectively. The
Company has also a Joint Venture (33.33% share) Urvarak Videsh Limited with M/s.
KRIBHCO and RCF as promoters. The main objective of the joint venture company is to
explore investment opportunity abroad and within the country in nitrogenous, phosphatic
and potassic sectors and to render consultancy services for setting up projects in India and
abroad.

Production Performance
The percentage share of NFL in Urea production in the country was 14.2% during 201213.The Company produced 32.11 lakh tonnes of Urea which includes 10.83 LMT of Neem
coated Urea. 448 MT of Bio-fertilizers (solid & liquid) was produced during the year.
Sales & Marketing performance
During 2012-13, company sold 31.62 LMT of Urea (including 10.92 LMT of Neem Coated
Urea). Industrial products of worth ` 95.63 crores & Bio-Fertilizers (liquid & solid) of` 3.65
crores were sold during 2012-13. Turnover of traded Agri products (Compost, Seeds,
Bentonite Sulphur & Pesticides) was` 30.08 crores.
Promotion of balanced use of fertilizers
Company has been strongly advocating and promoting balanced and efficient use of
fertilizers. It has identified soil testing as a primary diagnostic technique towards soil health
management and balanced fertilizer use and is playing a pivotal role in educating farmers
about benefits of soil test based application of chemical fertilizers, appropriate cropping
pattern, the role of organic manure and bio-fertilizers in improving soil health. The
programmes under taken to achieve this objective include farmers in house training at Kisan
Vikas Kendras, arranging farmers meets with eminent scientists to equip them with
requisite knowledge.
Company has set up elaborate facilities for soil testing including 6 static and 4 mobile soil
testing vans with capacity totest 50,000 samples annually. The soil samples are collected
across Companys marketing territory, analyzed and soil test reports are provided free of
cost to farmers in time with fertilizer application recommendations according to soil status
and crops to be grown. During the year 2012-13, over 50,000 soil samples were collected
and analyzed and reports were provided to the farmers.
Company also undertakes dealers training programmes, field demonstrations, distribution of
crop literature,participated in kisan melas advising farmers on fertilizer dosages, use of biofertilizers, compost etc. for holisticapproach to cultivation.
Financial performance
The company during 2012-13, achieved a sales turnover of ` 6747 crore (previous
year ` 7341 crore). The lower turnover was primarily due to lower urea production as all the
Units were under shut down for hooking up and commissioning activities of the projects. The
loss before tax was ` 230.62 crore (previous year profit `184.20 crore) and loss after tax
was ` 170.73 crore (previous year profit `126.73 crore). The main reasons for loss were due
to the following:

Lower production / sale because of shut-downs taken for commissioning of Urea Capacity
Enhancement Projects at Vijaipur and changeover of feedstock from Fuel-oil to Natural Gas
at Nangal, Bathinda and Panipat Units.

Decrease in sale and contribution of industrial products due to non-availability of cheaper

ammonia, non-availability of gases,Sulphur and Argon gas at three Fuel-oil based Units post
commissioning.

Provision for Purchase Tax liability pertaining to previous years.

Higher interest expenditure mainly due to delay in receipt of subsidy.

Some of the major strategic issues affecting the Profitability of the company include:

Non-allocation of domestic gas for operation of FO based plants converted on Natural Gas
at Panipat, Bathinda & Nangal Units.

Non-revision of concessional price for existing capacity of Urea by updation of fixed cost in
NPS-III.

Timely release of Urea subsidy from GoI.

Human Resource Management (HRM)

Strategic HR planning is an important component of HRM. It links HR
management directly to the strategic plan of the company in achieving
organizational goals and supporting future direction to the organization. A study
on organizational structure, performance Management System, Recruitment and
Promotion policies of the company was conducted by an Expert Committee. The
report of the committee is under examination for implementation. The
Manpower strength of the company as on 31 st March 2013 was 4291 comprising
of 1802 Executives and 2489 Non-Executives. Total manpower includes 231
women employees which is 5.38% of the total workforce.
The company undertakes several employee welfare schemes related to
education, medical, benevolence, housing etc. As a measure towards employee
social security, a defined Contribution Superannuation Pension Scheme has been
implemented. Company has always supported consultative approach. The efforts
to promote employees participation in various activities like Suggestion Scheme,
Welfare,

Safety,

interactions

between

the

Management

representatives on various issues continued during the year.

and

employees

Industrial relations in the company continued to be harmonious during 2012-13.

Continued interaction between the Management and Employees representatives
contributed in maintaining the harmony.
To develop the skills and instill behavioral and personality development traits in
all supervisory staff and managerial cadre, Company organized a number of
training programmes during the year. These training programmes were identified
through Performance Management System by systemizing organizational needs
with individual needs. Apart from in-house training programmes, employees
were

also

nominated

for

attending

external

training

programmes

on

contemporary subjects.

Awards & accolades

MoU
Company has received Excellent rating for the MoU 2011-12, which is
12thexcellent rating in a row.
Awards
During the year 2012-13, Company received following prestigious accolades and
awards.
a) Shreshtha Suraksha Puraskar for the year 2011 to the Panipat Unit from National
Safety Council (India) Mumbai, amongst the manufacturing sector of Chemical & Chemical
products.
b) National Level Fertilizer Association of India (FAI) Runner-up Award for excellence in
Safety in Nitrogenous and Complex Fertilizer plant to the Panipat Unit presented by Shri SK
Jena, Honble Minister of State for Chemicals & Fertilizers, GoI.
Safety &Environment Management
NFL remains focused towards achieving sustained energy efficient operations of
its ageing manufacturing facilities at the same time maintaining pollution free
environment and process safety. All manufacturing Units of the Company
continue to be ISO 9001-2008,ISO14001-2004 and OHSAS18001 certified,
which indicates Companys commitment to Quality Management System,
Environment Management System and Occupational Health and Safety Systems.

State of the art safety practices were adopted by contractors during the project
construction and commissioning at Panipat, Bathinda and Nangal Unit at the
time of conversion of feedstock from Fuel-oil to gas. There had been no
reportable accident in any of the plant sites. Panipat Unit has been awarded
Shreshtha Suraksha Puraskar for the year 2011 by National Safety. Council
(India) Mumbai, amongst the manufacturing sector of Chemical & Chemical
products

and National

Level

Safety

Award

for

excellence

in

Safety

in

Nitrogenous and Complex Fertilizer plant Runner Up for 2011-12 by FAI.

To safeguard the Plants from emergencies which normally manifest in three

basic form of Fire, Explosion and Toxic gas release.

"On site Emergency Disaster Plan" is available in Units. It aims to train the
people to act efficiently and confidently in emergency with minimum damage to
human life and property. The procedures are regularly reviewed and updated by
carrying out surprise mock drill.

Silo system for collecting fly ash from ESP hoppers of coal fired boilers using
dense phase pneumatic conveying system has been commissioned at Nangal in
line with systems already in place at Panipat and Bathinda Units. These systems
have reduced the quantity of ash slurry disposal and the ecological problem
associated with its disposal and has helped in saving electrical energy used for
pumping the ash slurry.

Afforestation has been adopted by all units. 79729 trees in and around various
units/ marketing offices were planted in Companys drive towards leaving a
cleaner and greener earth for future generations.
Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is an evolving concept and has moved
away from being just philanthropic to becoming an integral part of strategy of
the company. The Company is committed towards upliftment of underprivileged
sections of the society and has supported various social and community
initiatives touching the lives of a large number of people. Under the umbrella of
CSR, Company is engaged in undertaking farmer friendly activities that have
helped in improving their socio economic status. The major focus of these
programmes is on creating awareness about health and hygiene, children
education, women empowerment, skill development for self-employment, water
conservation, rain-water harvesting and ground water recharging. During 201213, the company has incurred ` 1.47 crore on CSR initiatives.

NFL as a socially responsible corporate has been supporting community

development programmes covering wide range of welfare activities in rural
areas.
Company has adopted several villages in different states, which include:Anandpur Jalbera, Nangal Kheri, Garhi Besik, Goyla Khurd, Khojkipur (Haryana),
Gadota (Rajasthan), Bela Dhayani (Punjab), Rampur, Torni, Dongar, Chainpura,
Vijaipur (Madhya Pradesh), Raghav Nagar (Uttrakhand) and Samardiha (Bihar).
The major focus areas under these programmes are:

Creating awareness about Human Health and Hygiene.

Creating health awareness

Children Education.

Women Empowerment.

Skill Development for Self-Employment.

To promote use of Non-conventional source of Energy (Solar Energy).

Water Conservation / Water Harvesting.

about Animal Health.

Sustainable Development:
Inclusive and sustainable development is the need of present generation due to
increasing climatic changes and rising disparity in the society. With above
objective in mind, NFL has taken various initiatives in adopting best practices for
environment management, energy conservation and social upliftment leading to
sustainable development.
Use of cleaner and greener fuel

One of the major milestones achieved by NFL in this direction is switchover of

all its fuel oil feed stock based plants at Nangal, Panipat and Bathinda, to natural
gas, the cleaner and efficient energy. With this initiative, Companys 100% urea
production is now based on gas as feedstock. In addition to above, specific
energy consumption has also come down by more than 20 %.

NFL has also switched over the support fuel in the coal fired boilers at Panipat,
Bathinda & Nangal to natural gas from fuel oil. This has eliminated use of costly
fuel oil besides improving reliability and reducing carbon footprint.

Mission

NFLs mission is to be a market leader in fertilizers and a significant player in all its
other business, reputed for customer satisfaction, reasonable reward to shareholders,
ethics, professionalism and concern for ecology & the community.

About NFL Plant

Bathinda unit of NFL was commissioned on 1st Oct 1979 based on gasification technology of Feed Stock
on LSHS /Fuel Oil with the annual installed capacity of 511500 MT of Urea. Subsequently as per
guidelines of GOI, in order to reduce subsidy burden & Carbon footprint, NFL revamped the Bathinda
Unit on LSTK basis for changeover of Feedstock from LSHS/FO to Natural Gas and commercial
production on Gas was commenced during Jan 2013.

SALIENT FEATURES OF BATHINDA UNIT

Installed Capacity:

Capital Investment:

511500 MTPA

349.41 Crores

Initial
Commencement of

October 1, 1979

Production:
Commencement of
Production on Gas

March 11, 2013

after Revamp:

Process
Ammonia:

HTAS Steam Methane Reforming (SMR) Technology

Urea:

Mitsu Toastsu total Recycle C Improved

Raw material:

Coal , LNG/ RLNG, Power, Water

Captive Power Plant: 2 x 15 MW

PRODUCT OF INDUSTRY
Kisan Urea
Kisan Urea is a highly concentrated, solid, nitrogenous fertilizer, containing 46.0% Nitrogen. It is
completely soluble in water hence Nitrogen is easily available to crops.
It contains Nitrogen in a milder form which changes to ammonical forms and is retrieved by soil colloids
for longer duration. Urea is available in granular form and can be applied by drill and broadcasting.
Kisan Urea is ideally suitable for all types of crops and for foliar spray which instantly removes nitrogen
deficiency.Kisan Urea also has a strong and long lasting effect on crop resulting in bumper crops
Carbonic acid present in Kisan Urea helps in absorption of other nutrients like phosphate and Potash by
roots of crop.

NEEM COATED UREA

introduction
Agronomical trial on Paddy and Wheat crops with Neem coated Urea as source of Nitrogen has produced
significantly higher yield at research and farm level. Looking into the potential of Neem Coated Urea and
its acceptance by the farmers, Ministry of Agriculture in July 2004, included the Neem Coated Urea in
FCO. The use of Neem Coated Urea has been found to improve the uptake of N, P and K significantly.
Since 2008 the, Ministry of Chemicals and Fertilizers allowed Neem Coated Urea manufacturer to sell
NCU at 5% above the MRP, to recover the cost of coating, however cost of Neem Oil and production as
such of Neem Coated Urea has increased significantly. As per GoI notification, a company can produce
and sell Neem Coated Urea equivalent to the maximum of 35% of its total installed capacity of Urea.
Efficient use of nutrient is one of the foremost concerns of the agriculture scientist in increasing the farm
output at farmer field level. Balanced use Nitrogen, Phosphorous, Potassium along with the requirements
of secondary and micronutrient increase the yield at economic level. Of the three major Nutrients

Nitrogen, Phosphorous and Potash, nitrogen has received the maximum attention because of many
reasons. Nitrogen gets easily converted to available forms from various types of fertilizers that are being
applied for crop nutrition. Also nitrogen in Nitrate form is highly mobile and get lost through the process
of leaching especially under irrigated conditions. Nitrogen is also lost in the process of de-nitrification
where the nitrate form is back converted into Nitrogen and Ammonia and lost to atmosphere.
There are many references available on Nitrogen that indicates that the recovery of nitrogen under
irrigated and submerged condition is hardly 35% due to various kind of loses it is subjected to such as
de-nitrification, ammonia volatilization and leaching. In the world 50% of nitrogen is supplied through
Urea and the scenarios in India are no different. In order to keep the nitrogen losses at minimum level,
agricultural scientist have come out with various agronomical recommendations, to reduce these loses.
The prevalent recommendations are split application, band placement, and deep placement using the
see drill. All these practices make available the right quantities of requirement at the place of absorption.
Application of bigger granules of urea retards the dissolution.
In addition to agronomical practices, various kind of nitrification inhibitors such as Nitrapyrin (N-Serve)
and Terrazole (Dwett) were developed in USA. These Nitrification agents are very expensive and add to
the already high cost of crop production in India.
Keeping in view the low Nitrogen use efficiency it has been felt to find out the use of some indigenous
use of material and coating process for reducing the nitrogen losses from Urea. Use of Neem oil in
various form such as Neem oil cake, Neem oil and other Neem product have been found useful in
reducing the release from Urea and increase its use efficiency. Neem oil contains various kind of bitter,
especially the Meliacins that have been identified in retarding the process of nitrification of Urea.
Production of Neem Coated Urea at NFL
National Fertilizers Limited, in the year 2002, standardized the techniques for production of Neem
Coated Urea in situ, at its Panipat Unit. Since then many changes have been made in the process and
applicant solution, to have a uniform and consistent coating of Neem oil on urea prills, to maintain the
concentration of Neem oil content as per the specification prescribed in FCO. Based upon the results of
extensive field trial where Neem Coated urea was found to be agronomical superior to normal prilled
urea, NFL became the first company in India that was granted the permission to produce and market the
Neem Coated Urea, vide Govt of India Notification No S.O.807 (E) dated 9 July 2004 .Today the
company has facilities at all its 3 Units namely Bathinda, Panipat and Vijaipur, for production of Neem
Coated Urea. Neem coated urea produced at these production facilities is marketed in all the 14 States
where the company is marketing its Urea.
Year wise Unit wise production of Neem Coated Urea(In MT)

Year

Unit

Total

Bathinda

Panipat

Vijaipur

2003-04

12627

61090

2004-05

112004

102476

9762

224242

2005-06

147677

143018

197400

488095

2006-07

56085

74603

184575

315263

2007-08

38762

6187

57820

102769

73717

2008-09

2355

182

9377

11914

2009-10

12163

8673

16812

37648

2010-11

40283

40137

39646

120066

2011-12

73829

131570

434169

639568

2012-13

70834

119872

892413

1083119

2013-14
25487
(up to June 2013)

34852

115420

175759

Total

722660

1957394

3272160

conducting

200

592106

Front Line demonstrations

Since

2004-05,

NFL

has

been

regularly

to

250

front

line demonstrations,

at farmers field, in close collaborations of the respective State Agriculture Universities, in the states of
Punjab, Haryana, Rajasthan, UP, MP Chattisgarh. The Yields in the treatment where Neem Coated Urea
has been used, has increased from 6-11% depending upon crop and location.
Other Benefits
Apart from the increase in yield, Neem Coated Urea application has other use full effect in paddy and
wheat crops. At one of the locations in the state of UP, farmers have observed that the menace of Neel
Gai has reduced significantly in paddy crop. In yet another observation, at Panipat, farmers observed no
incidence of leaf folder and, stem borer in paddy crop. At Sangrur and Gurdaspur, in the States
of Punjab, farmers observed that the incidence of white ant was reduced with the use of Neem coated
Urea in wheat crop. This is because of fragrance of Neem oil that on dissolution was released in the
standing water in the standing water and insecticidal properties of Neem.
The complete farmer satisfaction through best services is the drawing force of NFLs marketing, strategy. The
Company has expanded its programme from improving the crop productivity at farm level to the over all
development of the farming community.
To provide to the farmers high quality products in the right time, NFL has an extensive and integrated
marketing network.
The Company provides a comprehensive capsules of various fertilizer promotion activities, which includes
agronomical programmes, use of extension media, publicity and farmer development programmes.

Soil testing services are provided free of cost to the farmers to advocate the balanced use of fertilizers at
economic levels. One mobile soil-testing unit caters to the need of the remotest of remote farmers in far
areas and provide technical guidance to the farmer at field level.

Other farm services include fertilizer demonstration on cultivators fields, field days, fertilizer/farmers Mela,
pilot project, adoption of villages etc. NFL also conducts various training programmes to educate the farmers
on the balanced use of fertilizer and its timely application besides providing guidance on pesticides &
fungicides.

NFLs Farmer Training Centre at Vijaipur caters to the training needs of small and marginal farmers,
particularly those belonging to tribal areas in the State of Madhya Pradesh. The training schedules are
tailor made to suit the requirement of the farmers.
To commemorate the 50th anniversary of Indias independence, the Company has undertaken a
Sustainable Integrated Rural Development Programme, titled Sulabh, National Fertilizer Development
Initiative for Tribal Areas (SUNADITA). The mission of the project is to help the farming community in
eradicating poverty and empowering people with self sustaining process of economic well being.

Guidelines for lodging a Complaint

1. Complaint may be lodged by any individual, an employee or any Vendor having business dealing with
the company.
2. Complaint should be specific, with relevant details of the facts.
3. Contact name and address are mandatory for verification of the complainant and processing of the
complaint.
4. All complaints, received through this website, will be sent to Complaint Box of Vigilance Division at
Corporate Office.
5. The complainant will get a unique Identification Number for each complaint lodged by him through his
e-mail address. Therefore, a valid and functional e-mail ID may be mentioned.
6. Only those complaints will be taken up by Vigilance Division for examination, which contain vigilance
angle. Complaints, which do not have Vigilance angle, will be forwarded to HR Division, CO, Noida for
further action.
7. Status of the complaint can be obtained by entering Complaint ID number in the STATUS window.
8. No correspondence will be entertained on the subject, after lodging of the complaint.
9. You have to register First, before filing a complaint.

Maruti Suzuki
Maruti Suzuki India Limited (/marutti suzuki/), commonly referred to as Maruti and formerly
known as Maruti Udyog Limited, is an automobile manufacturer in India.[8] It is a subsidiary of
Japanese automobile and motorcycle manufacturer Suzuki.[7] As of November 2012, it had a
market share of 37% of the Indian passenger car market. [9] Maruti Suzuki manufactures and sells
a complete range of cars from the entry level Alto, to the hatchback Ritz, Celerio, Ciaz, AStar, Swift, Wagon R, Zen and sedans DZire,Kizashi and SX4, in the 'C' segment Eeco, Omni,
Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.[10]
The company's headquarters are at No 1, Nelson Mandela Road, New Delhi.[2] In February 2012,
the company sold its ten millionth vehicle in India.

History[edit]

Logo of Maruti Udyog

Maruti Udyog Limited was established in February 1981, though the actual production
commenced only in 1983. It started with Maruti 800, based on theSuzuki Alto kei car which at the
time was the only modern car available in India. Its only competitors were Hindustan
Ambassador and Premier Padmini. Originally, 74% of the company was owned by the Indian
government, and 26% by Suzuki of Japan.[12] As of May 2007, the government of India sold its
complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. [13]

Chronology[edit]
Beginnings
Maruti's history begins in 1970, when a private limited company named 'Maruti technical services
private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this company
was to provide technical know-how for the design, manufacture and assembly of "a wholly
indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under
the Companies Act and Sanjay Gandhi became its first managing director. "Maruti Limited" goes
into liquidation in 1977. On 23 June 1980 Sanjay Gandhi dies when a private test plane he was
flying crashes. A year after his death, and at the behest of Indira Gandhi, the Indian Central

government salvages Maruti Limited and starts looking for an active collaborator for a new
company. Maruti Udyog Ltd is incorporated in the same year.[14]
Suzuki enters
In 1982, a license & Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd.
and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed
market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and
even after that the early goal was to use only 33% indigenous parts. This upset the local
manufacturers considerably. There were also some concerns that the Indian market was too
small to absorb the comparatively large production planned by Maruti Suzuki, with the
government even considering adjusting the petrol tax and lowering the excise duty in order to
boost sales.[15] Finally, in 1983, the Maruti 800 is released. This 796 cc hatchback is based on
the SS80 Suzuki Alto and is Indias first affordable car. Initial product plan is 40% saloons, and
60% Maruti Van.[15] Local production commences in December 1983.[11] In 1984 the Maruti Van,
with the same three-cylinder engine as the 800, is released. Installed capacity of the plant
in Gurgaon, reaches 40,000 units.
In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is launched. In 1986 the
original 800 is replaced by an all-new model of the 796 cc hatchback Suzuki Alto/Fronte. This is
also when the 100,000th vehicle is produced by the company.[14][dead link] In 1987 follows the
company's first export to the West, when a lot of 500 cars were sent to Hungary. Maruti products
had been exported to certain neighboring countries already. By 1988, the capacity of the
Gurgaon plant is increased to 100,000 units per annum.
Market liberalisation
In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, three-box is
Indias first contemporary sedan. By 1991 65 percent of the components, for all vehicles
produced, are indigenised. Meanwhile, the liberalisation of the Indian economy opens new
opportunities but also brings more competition to the segments in which Maruti operates. In
1992 Suzuki increases its stake in Maruti to 50 percent, making the company a 50-50 JV with the
Government of India the other stake holder.
A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc, hatchback
which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc Esteemappears, a more
luxurious redesigned Maruti 1000. This and other Marutis begin appearing in a plethora of
different equipment levels, to better suit India's increasingly discerning consumers. A Zen
Automatic arrives in 1996, as does the Gypsy King, a 1.3 liter version of the compact off-roader,
and a minibus version of the Omni (the Omni E).

In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of production,
being the first company in India to do so. This is still not enough in a booming market and the
next year Maruti's second plant is opened, with annual capacity reaching 200,000 units. Maruti
also launches a 24-hour emergency on-road vehicle service, the first of its kind in the country. In
1996 the United Front government is formed, with Murasoli Maran new Industries Minister. On 27
August the following year the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing
Director, as the then current Managing director R.C. Bhargava, was completing his tenure. This
creates a conflict withSuzuki, discussed closer in the Joint venture related issues section.
In 1998 the new Maruti 800 is released, the first change in design since 1986. This is simply a
facelift of the existing model, to ensure steady sales. Also, the two millionth vehicle is produced.
Other news include the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle.
The Omni van and microbus is also redesigned. The next year the Omni bus arrives in a high
roof version, the Omni XL. The 1.6 litre Maruti Baleno three-box saloon, advertised as the 'Maruti
Suzuki Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year,
the Wagon R is launched.
In 2000 Maruti becomes the first car company in India to launch a Call Center for internal and
customer services. The new Alto model is also released, somewhat larger and more modern
than the 800. The estate Baleno Altura is also shown, while IDTR (Institute of Driving Training
and Research) is launched jointly with the Delhi government to promote safe driving habits. In
2001 Maruti True Value, selling and buying used Maruti Suzukis, is launched in Bangalore and
Delhi, later in Mumbai and elsewhere. In October of the same year the Maruti Versa sees the
day, a bigger engined and more luxurious microbus than the Omni. It never catches on in the
market and is discontinued by late 2009, only to be replaced by a cheaper, stripped-down
version called Eeco. Customer information centers are also launched in Hyderabad, Bangalore
and Chennai. In 2002 theEsteem Diesel appears, as does Maruti Insurance. Two new
subsidiaries are also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers
Limited. Suzuki Motor Corporation increases its stake in Maruti to 54.2 percent.
In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R are
upgraded and redesigned. The four millionth Maruti vehicle is built and they enter into a
partnership with the State Bank of India. Maruti Udyog Ltd is Listed on BSE and NSE after a
public issue, which is oversubscribed tenfold. In 2004 the Alto becomes India's new best selling
car, overtaking the Maruti 800 which had been number one for nearly two decades. The fiveseater Versa 5-seater, a new variant, is created while the Esteem undergoes cosmetic changes
and is re-launched with a price cut. Maruti Udyog closed the financial year 2003-04 with an
annual sale of 472,122 units, the highest ever since the company began operations 20 years
earlier, and the fiftieth lakh (5 millionth) car rolls out in April, 2005, with overall sales growing by
15.8%. The 1.3 L Suzuki Swift five-door hatchback also appears. 2004-05 marked another record
year (487,402 domestic sales) and exports reached 48,899 cars to about fifty different countries.
The United Kingdom took the lion's share, with 10,623 deliveries.[16]

In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to
build two new manufacturing plants, one for vehicles and one for engines. [16]Cleaner cars were
also introduced, with several new models meeting the new "Bharat Stage III" standards.[16] In
February 2012, Maruti Suzuki sold its ten millionth vehicle in India. [11] For the Month of July 2014,
it has a Market share of >45 %.[17]

Joint venture related issues[edit]

Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile marketand the nature of the
partnership built up till then was the underlying reason for most issues. The success of the joint
venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In
1982 both the venture partners had entered into an agreement to nominate their candidate for
the post of Managing Director and every Managing Director will have a tenure of five years [18]
R.C. Bhargava was the initial managing director of the company since the inception of the joint
venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in
1982 he held several key positions in the company before heading the company as Managing
Director. Currently he is on the Board of Directors.[19] After completing his five-year tenure, Mr.
Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined
Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy
Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In
1988 he was named Director, Productions and Projects. The next year (1989) he was named
Director of Materials[clarification needed] and in 1993 he became Joint Managing Director.[citation needed]
Suzuki did not attend the Annual General Meeting of the Board with the reason of it being called
on a short notice.[20] Later Suzuki Motor Corporation went on record to state that Bhaskarudu was
"incompetent" and wanted someone else. However, the Ministry of Industries, Government of
India refuted the charges. Media stated from the Maruti Suzuki sources that Bhaskarudu was
interested to indigenise most of components for the models including gear boxes especially
for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and would not
let it increase its stake in the venture.[21] If Maruti Suzuki would have been able to indigenise gear
boxes then Maruti Suzuki would have been able to manufacture all the models without the
technical assistance from Suzuki. Till today the issue of localization of gear boxes is highlighted
in the press.[22]

Manufacturing facilities[edit]

Maruti Suzuki has two manufacturing facilities in India. [23] Both manufacturing facilities have a
combined production capacity of 14,50,000 vehicles annually. During a recent meeting of the
Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had
said that the work on car manufacturing plant at Mandal near Ahmedabad would be started soon.
[24]

Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres.

The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread
over 300 acres (1.2 km2).[25] All three plants have an installed capacity of 350,000 vehicles
annually but productivity improvements have enabled it to manufacture 900,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Seriesengines annually. The entire
facility is equipped with more than 150 robots, out of which 71 have been developed in-house.
The Gurgaon Facilities manufactures the 800, Alto,WagonR, Estilo, Omni, Gypsy, and Eeco.
The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2).[25] Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The
Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ritz and Celerio.
On 25 June 2012, Haryana State Industries and Infrastructure Development Corporation
demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its
Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead
to further proceedings and vacating the enhanced land acquisition. [26]\

Industrial relations[edit]
Since its founding in 1983, Maruti Udyog Limited experienced problems with its labour force.
The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing
process. In 1997, there was a change in ownership, and Maruti became predominantly
government controlled. Shortly thereafter, conflict between the United Front Government and
Suzuki started. Labour unrest started under management of Indian central government. In 2000,
a major industrial relations issue began and employees of Maruti went on an indefinite strike,
demanding among other things, major revisions to their wages, incentives and pensions. [27][28]
Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In
parallel, after elections and a new central government led by NDA alliance, India pursued a
disinvestments policy. Along with many other government owned companies, the new
administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's
union opposed this sell-off plan on the grounds that the company will lose a major business
advantage of being subsidised by the Government, and the union has better protection while the
company remains in control of the government. [27][29]

The standoff between the union and the management continued through 2001. The management
refused union demands citing increased competition and lower margins. The central government
prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog
Limited.[30][31]

Manesar violence[edit]
On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto
factories attacked supervisors and started a fire that killed a company official and injured 100
managers, including two Japanese expatriates. The violent mob also injured nine policemen. [32]
[33]

The company's General Manager of Human Resources had both arms and legs broken by his

attackers, unable to leave the building that was set ablaze, and was charred to death. The
incident is the worst-ever for Suzuki since the company began operations in India in 1983. [34]
Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a
monthly conveyance allowance of

10,000, a laundry allowance of

3,000, a gift with every new

car launch, and a house for every worker who wants one or cheaper home loans for those who
want to build their own houses.Initial reports claimed wage dispute and a union spokesman
alleged the incident may be caste-related.[35][36] According to the Maruti Suzuki Workers Union a
supervisor had abused and made discriminatory comments to a low-caste worker.[37] These
claims were denied by the company and the police. [33] The supervisor alleged was found to
belong to a tribal heritage and outside of Hindu caste system; further, the numerous workers
involved in violence were not affiliated with caste either. Maruti said the unrest began, not over
wage discussions, but after the workers' union demanded the reinstatement of a worker who had
been suspended for beating a supervisor.[34] The workers claim harsh working conditions and
extensive hiring of low-paid contract workers which are paid about $126 a month, about half the
minimum wage of permanent employees.[37] Maruti employees currently earn allowances in
addition to their base wage.[38] Company executives denied harsh conditions and claim they hired
entry-level workers on contracts and made them permanent as they gained experience. It was
also claimed that bouncers were deployed by the company.[35]
India Today claimed[39] that its interviews of witnesses present at the plant confirms the dispute
was over the suspended worker. The management insisted that they must wait for completion of
inquiry underway before they can take any action on the employee suspended for beating up his
supervisor. The management was then told, "you will be beaten up after we get a signal."
Thereafter, the workers broke up into groups, went on to set the shop floor as well as all offices
afire. They searched for management officials and proceeded with a beating of the officials at the
site with iron rods.
The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence may
be the result of a planned violence by a section of workers and union leaders. The report claimed
the worker's action was recorded on close circuit cameras installed within the company

premises. The workers took several managers and high ranked management officials hostage.
The responsible Special Investigative Team official claimed, "some union leaders may be aware
of the facts, so they burnt down the main servers and more than 700 computers." The
recorded CCTV footage has been used to determine the sequence of events and people
involved. Per the FIR, police have arrested 91 people and are searching for 55 additional
accused.[40][41]
Maruti Suzuki in its statement on the unrest,[42] announced that all work at the Manesar plant has
been suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto
maker's business plans for India.[34] The shut down of Manesar plant is leading to a loss of about
Rs 75 crore[43] per day.[44] On 21 July 2012, citing safety concerns, the company announced
a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has
requested of the Haryana government into the causes of the disorder. Under the provisions of
The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for
the duration of the lockout.[43] On 26 July 2012, Maruti announced employees would not be paid
for the period of lock-out in accordance with Indian labour laws. The company further announced
that it will stop using contract workers by March 2013. The report claimed the salary difference
between contract workers and permanent workers has been much smaller than initial media
reports - the contract worker at Maruti received about
worker received about

11,500 per month, while a permanent

12,500 a month at start, which increased in three years to

21,000-

22,000 per month.[45] In a separate report, a contractor who was providing contract employees to
Maruti claimed the company gave its contract employees the best wage, allowances and benefits
package in the region.[46]
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of
violence has never happened in Suzuki Motor Corp's entire global operations spread across
Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr.
Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers,
and in press interview requested the central and Haryana state governments to help stop such
ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of
this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise
Maruti Suzuki Workers Union and dismiss all workers named in connection with the incident. We
will not compromise at all in such instances of barbaric, unprovoked violence." He also
announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an expansion
opportunity and not an alternative to Manesar.[47][48]
Labour disputes are endemic in the auto industry of India and have affected other manufacturers.
India has strict labour laws, but their application is widely sidestepped by hiring low-wage
contract workers.[37] Manesar violence adds to India's recent incidents of labour disputes turning
to violence. Analysts claim[49][50] recent incidents like Manesar violence suggest a need for urgent
reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal
sector and discourage investment in India. Government mandated procedures for labour dispute

resolution are currently very slow, with tens of thousands of cases pending for years. The
government of India is being asked to recognise that incidents such as Manesar violence indicate
a structural sickness which must be solved nationally.
The company dismissed 500 workers accused of causing the violence and re-opened the plant
on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity.
Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day
and costing the company market share.
The previous week company officials had announced that Maruti would scrap the practice of
hiring contract workers and that the workers currently on temporary contracts would be made
permanent. It would begin the process of hiring new workers on a permanent basis from 2
September 2012.[51]
In July 2013, the workers went on hunger strike to protest the continuing jailing of their
colleagues and launched an online campaign to support their demands. [52]

Products and services[edit]

Current models[edit]
Model

Launched

Category

Omni

1984

Minivan

Gypsy

1985

SUV

WagonR

1999

Hatchback

Image

Swift

2005

Hatchback

Grand Vitara

2007

Mini SUV

Swift DZire

2008

Sedan

Ritz

2009

Hatchback

Eeco

2010

Minivan

Alto K10

2010

Hatchback

Kizashi

2011

Sedan

Ertiga

2012

Mini MPV

Alto 800

2012

Hatchback

Stingray

2013

Hatchback

Celerio

2014

Hatchback

Ciaz

2014

Sedan

Discontinued models[edit]
Model

Launched

Discontinued

Category

Gypsy E

1985

2000

SUV

1000

1990

2000

Sedan

Zen

1993

2006

Hatchback

Image

Esteem

1994

2008

Sedan

Baleno

1999

2007

Sedan

Versa

2001

2010

Minivan

Grand Vitara XL7

2003

2007

Mini SUV

800

1983

2012

Hatchback

Alto

2000

2012

Hatchback

Zen Estilo

2006

2013

Hatchback

A-star

2008

2014

Hatchback

SX4

2007

2014

Sedan

Sales and service network[edit]

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in
all states and union territories of India. It has 3,013 service stations (inclusive of dealer
workshops and Maruti Authorised Service Stations) in 1,436 towns and cities throughout India.
[53]

It has 30 Express Service Stations on 30 National Highways across 1,436 cities in India.

Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have
not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help
many stranded vehicles on the highways by sending across their repair man to the vehicle. [54][55]

Maruti Insurance[edit]
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[56]
This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.[57]

Maruti Finance[edit]
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior
to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.
[58]

Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in

car finance. Again the company entered into a strategic partnership with SBI in March
2003[59] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance.
SBI-Maruti Finance is currently available in 166 cities across India.[60]
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank
N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%.[61] GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.
Maruti claims that its finance program offers most competitive interest rates to its customers,
which are lower by 0.25% to 0.5% from the market rates.[citation needed]

Maruti TrueValue[edit]
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this
service in India. As of 31 March 2010 there are 341 outlets.[citation needed]

N2N Fleet Management[edit]

N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Clients who have signed up of this service includeGas
Authority of India Ltd, DuPont, Reckitt Benckiser, Doordarshan, Singer India, National Stock
Exchange of India and Transworld. This fleet management service include end-to-end solutions
across the vehicle's life, which includes Leasing, Maintenance, Convenience services and
Remarketing.[62]

Maruti Accessories[edit]
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to
Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India.[63]

Maruti Driving School[edit]

A Maruti Driving School inBangalore

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in
Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical
sessions. Many international practices like road behaviour and attitudes are also taught in these
schools. Before driving actual vehicles participants are trained on simulators. [64]
A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about
mounting deaths on Indian roads. These can be brought down if government, industry and the
voluntary sector work together in an integrated manner. But we felt that Maruti should first do
something in this regard and hence this initiative of Maruti Driving Schools." [65]

Exports[edit]
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignment of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki
crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage.[citation needed] Every political party expected Maruti Suzuki to earn
foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by
Maruti Exports.[citation needed]

Awards and recognition[edit]

The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has
ranked Maruti Suzuki in the thirty seventh position in 2013 [66] and eleventh position in
2014[67] among the most trusted brands of India.
Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car
Company in their Reputation Benchmark Study[68] conducted for the Auto (Cars) Sector which
launched in April 2012.