Acknowledgement

An individual cannot do project of this scale. I take this opportunity to express my acknowledgement and deep sense of gratitude to the individuals for rendering valuable assistance and gratitude to me. Their inputs have played a vital role in success of this project. I express my sincere thanks to my project guide ANJALI ARORA for her generous support, constant direction and mentoring at all stages of training. I take this opportunity to thank all dealers, customers who spared their precious time to provide me with valuable inputs for project without which it would have not been possible. I firmly believe that there is always a scope of improvement. I welcome any suggestions for further enriching the quality of this report. An individual cannot do project of this scale.

NAME: LOKESH BUNGLA

BBA B&I, 3RD SEM 1ST SHIFT

DECLARATION

I hereby declare that the project work entitled Employee Engagement And Corporate Governance at Havells submitted to Guru Gobind Singh Indraprastha University, in record of original work done by me under the guidance of ANJALI ARORA, Trinity Institute of Professional Studies, Dwarka, New Delhi, and this project is performed in the partial fulfillment of Bachelors of Business Administration.

NaME: LOKESH BUNGLA

Title of Project

Employee Engagement and Corporate Governance at Havells

INDEX
Chapter-1 Introduction 5 1.0 Profile of the Company 6 1.1 Vision of the Company 8
1.2 Mission of the Company. 10 1.3 Objective of the company 12 1.4 Major Milestones of company.... 15

1.5 About Business History. 20 1.6 Board of Directors..25 Chapter-2 Brands owned By Company Chapter-3 Financial overview Of Company Chapter-4 Introduction to HR department Chapter-5 Swot analysis Chapter-6 Objectives of study Chapter7 Employee Engagement Chapter-8 51 37

Corporate Governance Chapter-9 Suggestion and Recommendation Chapter-10 Bibliography

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COMPANY PROFILE

Havells India Ltd is a billion-dollar-plus Indian electrical equipment company with products ranging from industrial & domestic circuit protection switchgear, cables & wires, motors, fans, power capacitors, compact fluorescent lamps (CFL), and luminaries for domestic, commercial & industrial applications, modular switches covering household, commercial and industrial electrical needs. The company is listed on the Bombay Stock Exchange and forms part of the BSE500, BSE CG and BSEMIDCAP stock indexes. Havells owns global brands like Crabtree, Sylvania, Concord, Luminance, Linolite & SLI Lighting. Havells has 91 branches / representative offices and over 8000 professionals in over 50 countries. Its seven manufacturing plants in India are located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana, and 8 manufacturing plants are located across Europe, Latin America & Africa.Havells is a name synonymous with excellence and expertise in the electrical industry. Its 20000 strong global distribution network is prompt to service customers. The company has acquired a number of International certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have emerged as the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad. In an attempt to transform itself from an industrial product company to a consumer products company, Havells launched consumer electrical products such as CFLs, Fans, and Modular Switches & Luminaires. The company has been consistent in its brand promotion with sponsorship of Cricket events like T20 World Cup, India-Australia Series and IPL Season 1 and 2. The company has also taken the initiative to reach directly to the consumers through "Havells Galaxy" a one stop shop for all electrical and lighting needs.

Social and environmental responsibility has been at the forefront of Havells operating philosophy and as a result the company consistently contributes to socially responsible activities. For instance, the company is providing mid-day meal in government schools in Alwar district, covering 15000 students per day. Besides this company has acquired land for constructing a larger kitchen with all the modern facilities to serve freshly cooked food to 50000 students in the area. Havells runs a mobile Medical Van, equipped with a trained doctor and necessary medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. We also set up free medical check-up camps. In the past also, the company has generously contributed to the society during various national calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund etc. The essence of Havells success lies in the expertise of its fine team of professionals, strong relationships with associates and the ability to adapt quickly and efficiently, with the vision to always think ahead. PRODUCTS: 1) BUILDING CIRCUIT PROTECTION 2) INDUSTRIAL CIRCUIT PROTECTION 3) MOTORS 4) CAPACITORS 5) LIGHTING 6) CFL 7) FANS 8) MODULAR PLATE SWITCHES 9) CABLES AND WIRES 10) DIGITAL DIMMING 11) BATHFITTINGS AND ACCESSORIES8

VISION MISSION AND VALUES OF COMPANY

Vision & Mission

To be a globally recognized corporation who provides best electrical & lighting solutions, delivered by best-in-class people. To achieve our vision through fairness, business ethics, global reach, technological expertise, building long term relationships with all our associates, customers, partners, and employees

Values

Customer Delight: A commitment to surpassing our customer expectations. Leadership by example. A commitment to set standards in our business and transactions based on mutual trust. Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings. Pursuit of Excellence: A commitment to strive relentlessly, to constantly improve ourselves, our teams, our services and products so as to become the best in class

OBJECTIVES OF COMPANY

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MAIN OBJECTS OF THE COMPANY TO BE PURSUED ON ITS INCORPORATION ARE:1. To carry on the business of manufacturing assembling, altering, exchanging, buying, selling, importing, exporting or otherwise dealing in all types of electrical goods and instruments including circuit breakers, HRC fuses, meters, rectifiers, converters and alternators, current transformers, switches, switchgears, panels, electric motors, generators, electric magnets motor control centers, power control centers, distribution boards, rising mains, bus trunking, overhead busbar systems, feeder pillars, lighting fixtures, fans, exhaust fan, air coolers, wiring accessories, iron clad switches, fuse units, distribution boxes, cutouts, wires and cables all aluminum conductor and aluminum conductor steel reinforced transformers, G.L.C. lamps, fancy shades, heating elements, bulbs, fluorescent tubes and its accessories including chokes, starters, switches and condensers.
2.

To carry on the business of manufacturing, assembling, altering, exchanging,

buying, selling, importing exporting, and otherwise dealing in electronic and audiovisual goods of every nature and description such as Television, Tape recorders, Radios, Records Players, Video Sets, Stereo system, decks, loud speakers, amplifiers, gramophones, records, tapes, watches, clocks, walkie talkies, cameras, cassettes, transistors, assemblers and distributor, electronic flash guns, electronic digital goods, microwave ovens, radio paging systems, computers, miniaturized circuits goods, micro modules, intercommunications sets, microphones, Dictaphones, telecommunication requisites, wireless/laboratory/testing equipments, electronic consumer and domestic goods, musical and visual appliances, apparatus, instruments, equipments and devices for amusement and entertainment, electronic goods required in any trade, industry or manufacture such as photographic, surgical, medical films, nautical, aeronautical, electrical defense industry and including equipments, instruments and goods used in generation, transmission and receiving of any impulses such as and sound, light, electronic and electrical impulses and all kinds of electronic accessories, appliances,
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implements, components, instruments, equipments stores and spares, spare parts, devices, contrivances, apparatus and supplies related to or connected with the aforesaid, and all such electronic goods adapted, invented and discovered in future. 3. To carry on business of electrical engineers and manufacture of all kinds of heavy and light electrical machinery and equipments and apparatus for any purpose and to install, sell, hire or otherwise deal with the same in any manner whatsoever. 4. To produce, manufacture, refine, treat, cure, process, prepare, import, export, purchase, sell, and generally deal in all kinds of sanitary fittings and bathroom fittings such as brass fittings, steel fittings tiles and ceramic ware.

OBJECTS INCIDENTAL OR ANCILLARY OBJECTS TO THE ATTAINMENT OF MAIN OBJECTS ARE: 1. To make, manufacture, purchase, import or otherwise deal in all types of materials directly or indirectly used in the manufacture of any items mentioned under main objects of this Company. 2. To buy or generate for the purpose of the company, steam, heat, light, electricity, gas or other power. 3. To carry out at any place in India or elsewhere Research and Development in the field of manufacture of electrical and electronic goods, plant and equipments for the attainment of main objects of the Company. 4. To acquire from any person, firm or body corporate whether in India or elsewhere, technical information, know-how, process, engineering, manufacturing and operating data, plans, layouts and blue prints useful for the designs, erection and operations of plant required for an activity of the business of the company and to acquire any grant of license and other rights and benefits in the foregoing matters and offer cash or any other assets.

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5. To purchase, take on lease or in exchange hire or otherwise acquire any real and personal properties and any rights or privileges which the Company may think necessary or convenient for the purpose of its business. 6. To acquire and undertake the whole or any part of the business, property and liabilities of any person or firm or company carrying on any business which the company is authorized to carry on or possessed or properly suitable for the purpose of this company. 7. To amalgamate with any other company having objects altogether or in part similar to those of this Company. 8. To apply for purchase or otherwise acquire, any patents, trademarks, brevets'd' inventions, licenses concessions or the like conferring any exclusive or non exclusive or limited right to use any secret or other information as to any invention which may seem to the company capable of being used for any of the purpose of the Company or calculated directly or indirectly to benefit the Company, and to use, exercise, develop or grant license in respect of, or otherwise turn to account the property, rights or information so acquired.

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Major Milestones of Company

2009:

Set up of fully automatic 2nd unit for switchgear manufacturing at Baddi. Global consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes. Launch of India's 1st HPF CFL Launch of India's 1st BEE 5* Rated Fan

2008:

First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction of Hazardous Substances in CFLs. Set up of Global Corporate office, QRG Towers at Expressway Noida Investment of Rs.50 Crores in Global Center for Research and Innovation (CRI) Set up of fully automatic plant for Havells Lafert Motors at Neemrana Change in Corporate BRAND identity

2007:

Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000 kVAr per month. Acquired the Lighting business of a Frankfurt based company "Sylvania", a global leader in lighting business and now the company's turnover crosses US$ 1 Billion.

Warburg Pincus, a global private equity firm and one of the largest investors in India, invested US $110 million in Havells India Ltd. Havells issued fresh shares to Warburg Pincus, representing approximately 11.2% of the fully diluted share capital of the company.
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QRG Group entered healthcare business by acquiring a majority stake in Central Hospital and Research Centre, Faridabad.

2006:

Crabtree India merged with Havells India. Added CFL production unit in Haridwar manufacturing plant. Expansion at Alwar manufacturing plant for increase of production capacity. Expansion at Baddi manufacturing plant and set-up of an Export Oriented Unit. First Company to get the ISI Certification for complete range of CFLs. Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.

2005:

Set up manufacturing plant in Haridwar, Uttaranchal for manufacturing Fans. Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification. Set up of R&D Center in Noida H.O.

2004:

Set up manufacturing plant at Baddi, HP for manufacturing of Domestic Switchgear. Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryan. Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida, UP. Set-up our own marketing office in London through our wholly owned subsidiary company Havells U.K. Ltd. In December, 2004 placed 235 fully convertible debentures of Rs. 10 Lacs on M/s. Shine Ltd., Mauritius and the debenture will be converted in June, 2006. Attained the CE certificate for CFL.
15

HISTORY OF COMPANY

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History of the company is very interesting as it started with small manufacturing unit of electrical parts and slowly become worldwide and incorporated its ventures even in America. The data shows the history of company in past around 50 years.

1958: Commenced trading operations in Delhi

1971: Bought HAVELLS Brand

1976: Set up the first manufacturing plant for rewire able Switches and Changeover Switches at Kirti Nagar, Delhi. Havells in the year 1976.

1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi.

1980: Started manufacturing high quality Energy Meters at Tilak Nagar, Delhi. 1983: Acquired Towers and Transformers Ltd. and turned it into a profitably manufacturing Energy Meters Company in one year.

1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with Geyer, Germany.

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1990: Set up a manufacturing plant at Sahibabad, UP for Changeover Switches. 1993: Set up another manufacturing plant at Faridabad, Haryana for Control Gear Products. 1996: Acquired a manufacturing plant at Alwar, Rajasthan for Power Cables & Wires. Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and Crabtree Modular Plate Switches.

1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing customized packaged solutions.

1998: Introduced high-end Ferraris Meters in Joint Venture with DZG, Germany. 2000: Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of Electronic Meters-Single Phase, Three Phase, Multi Function, TriVectors. Acquired controlling interest in an industry major-Standard Electricals Ltd.

2001: Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.

2002: Standard Electrical Company becomes a 100% Subsidiary of the company Attained the IEC certification for Industrial switchgear and CSA certification for all manufacturing plants.

2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of Domestic Switchgear. Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryana.

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2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida, UP. Set-up their own marketing office in London through their wholly owned subsidiary company Havells U.K. Ltd. In December 2004, placed 235 fully convertible debentures of Rs. 10 lakhs on M/s. Shine Ltd., Mauritius and the debenture got converted in June, 2006 Attained the CE certificate for CFLs.

2005: Set up manufacturing plant in Haridwar, Uttaranchal for manufacturing Fans. Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the only group to attain this certification.

2006: Crabtree India merged with Havells India. Added CFL production unit in Haridwar manufacturing plant. Expansion at Alwar manufacturing plant for increase of production capacity. Expansion at Baddi manufacturing plant and set-up of an Export Oriented Unit.

2006: First Company to get the ISI Certification for complete range of CFLs. Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.

2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000 KVAr per month. Acquired the Lighting business of a Frankfurt based company "Sylvania", a global leader in lighting business and now the company's turnover crosses US$ 1 Billion.

Havells at that time was best known for its electrical switches, energy meters and miniature circuit breakers (MCBs), while SLI Sylvania was a renowned yet under-leveraged European lamps and
19

fixtures brand. In March 2007, Havells acquired SLI Sylvania of Netherlands for $300 Million, making it the fourth largest lighting business in the world, worth over a billion USD! This was, at that time, the biggest overseas takeover by an Indian Electrical equipment manufacturer. This takeover helped take the Havells brand to over 20,000 dealers across Latin America, Europe, Asia and Africa. It instantly catapulted Havells-Sylvania into the billion-dollar league (in terms of combined turnover), with more than 60% of its revenues being contributed by international markets. Havells portfolio of prestigious global brands now includes Crabtree, Sylvania, Concord, Luminance, Linolite & SLI Lighting.

2008: First Indian CFL manufacturers to have adopted RoHS, European norms on Restriction of Hazardous Substances in CFLs.

Set up of Global Corporate office, QRG Towers at Expressway Noida. Investment of Rs.50 Crores was invested in Global Center for Research and Innovation (CRI). Set up of fully automatic plant for Havells Lafert Motors at Neemrana. Havells Corporate Office

Change in Corporate BRAND identity.

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2009: Set up of fully automatic 2nd unit for switchgear manufacturing at Baddi. Global consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes. Launch of Indias 1st HPF CFL. Launch of Indias 1st BEE 5* Rated Fan.

2010:

Inauguration

of

fan

manufacturing

unit

at

Haridwar.

Global Launch of LED products. Acquired 100% interest in Standard Electricals. Sets up Worlds First New Generation CMH Lamp Plant at Neemrana.

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BOARD OF DIRECTORS

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Pursuant to the provisions of Section 256 of the Companies Act, 1956, Shri Surjit Guptaand Shri S B Mathur, Directors, are due to retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. Dr. Abid Hussain and Maj Gen D N Khurana vacated their office of Directorship in the Company w.e.f. 5th July 2010, pursuant to the Companys policy on tenure of Independent Directors. The Board of Directors appreciates the valuable contribution made by Dr Hussain and Maj Gen Khurana during their tenure. The Board of Directors in their meetings held on 11th May, 2010 and 28thJuly 2010, appointed Shri S K Tuteja and Dr. Adarsh Kishore respectively as Additional Directors. As per the provisions of Section 260 of the Companies Act, 1956, Shri Tutejaand Dr. Kishore shall vacate office at the forthcoming Annual General Meeting. Due notice sunder section 257 of the Act have been received from Members of the Company proposing the appointment of Shri Tuteja and Dr. Kishore as Directors of the Company at this Annual General Meeting, whose period of office shall be liable to determination by retirement of Directors by rotation. Both the Directors have filed their consents pursuant to Section264 (1) of the Act to act as such Director, if appointed. Mr. Tuteja is an IAS, FCS and M Com from DU with 1st position. Mr. Tuteja began an illustrious career as a lecturer of commerce in the esteemed Shri Ram College of Commerce (SRCC) and moved on to serve the Government of India (GOI) in various capacities. Besides, he has acted as a consultant to various international programmers carried out in the field of new technologies and innovations. He has also participated as a Member of the Indian Delegation in the Fourth Ministerial Conference of WTO held in Doha, Qatar. He was also the Chairman of the Committee on Revitalization of Sugar Industry and later a member of the group of experts constituted by GOI

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on Sugar Sector in 2007. He has also chaired the Pay Commission of the Government of Punjab (2006-09). Dr. Kishore, a 1969-batch IAS officer of the Rajasthan cadre, is a former Finance Secretary, Government of India and former Executive Director, International Monetary Fund representing Bangladesh, Bhutan, India and Sri Lanka. He currently chairs the Board of Axis Bank Limited and is also the Chairman of its Risk Management Committee, Chairman of Shareholders/ Investors Grievance Committee and Member of Special Committee of the Board of Directors for Monitoring of Large Value Frauds. In accordance with the provisions of Sections 198, 269, 309 and 310 read with Schedule XIII and all other applicable provisions of the Companies Act, 1956, the Remuneration Committee of the Board of Directors in its meeting held on 11th May, 2010re-appointed Shri Rajesh Gupta as the Whole time Director - Finance of the Company for a period of 5 years effective 1st April, 2010. The Remuneration Committee also varied the terms of remuneration of Shri Qimat RaiGupta, Chairman and Managing Director and Shri Anil Gupta, Joint Managing Director, by introducing a component of commission based on percentage of profits, in their salary structure. The details of Directors being recommended for re-appointment as required in the clause49 of the Listing Agreement are contained in the accompanying Notice convening the ensuing Annual General Meeting of the Company.

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Managing Director
Mr. Qimat Rai Gupta is the Founder Chairman and Managing Director of Havells India Ltd. In summer of 1958, a 21-year-old school teacher traded education for entrepreneurship in the electric wholesale market in Old Delhi. Driven more than the economic necessity of helping his family, Qimat Gupta swapped the security of a classroom in Punjab for the uncharted waters of a small trading company selling fixtures and electric cable to businesses in and around Delhi. With an investment of Rs.10000, he started Guptajee. His leadership and vision led him to create QRG Enterprises as one of the players in the power distribution equipment industry as well as make its mark on the global space. His belief in team work, implementation of the decisions, communication and transparency through ethical values, business integrity and technological expertise have made the QRG group and especially Havells India Ltd the largest player low voltage power distribution equipment industry in India and a name to reckon within the global market. The companys phenomenal success over the years has been due to Mr. Qimat Rai Guptas mantra, Growth through quality, innovation and market consolidation". His focus on research and development has enabled Havells develop products for consumers that offer great value. His constant emphasis on promoting energy conservation and environmental preservation coupled with his philanthropic service to the economically weaker section of the society is his way of giving back in return to the society that has helped this organization realize its true potential. by Rai the

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26

BRANDS OWNED BY COMPANY

27

Havells owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Luminance, Linolite, SLI Lighting etc. These brands are discussed as follows:

Crabtree
Crabtree products represent a fine blend of art and science. Designing aesthetically appealing products while maintaining high levels of engineering excellence over the years, has helped Crabtree maintain its leadership position in the product category. We give you features to safeguard life and property. And an unparalleled engineering excellence and many technological innovations like dust-free switches and universal sockets. When it comes to switches, we know what it takes to create a sheer masterpiece of a switch. And craft it to perfection. Crabtree was started by the inventor of switch mechanism, John Ashworth Crabtree, which till date is the underlying foundation of all the switches. And that legacy still continues.

Sylvania
The world renound brand, Concord, part of global lighting manufacturer, Havells Sylvania, impressed the jurys of two of the most prestigious international design awards in the space of a week. With its outstanding and innovative design, Concords Stadium LED spotlight was awarded the 2010 Lighting Design Awards for best Interior Luminaires and the red dot award: product design 2010. The judges of the 2010 Lighting Design Awards stated, the Concord Stadium LED spotlight is a new form factor for LED accent lighting. Whilst this year, designers and companies from 57 nations with a total of 4,252 products took part in the red dot award: product design.
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They are much honored winning these two important awards. It proofs that, finally, functionality and design is no antagonism in the light business anymore, says Nick Farraway, VP & SBU leader for Concord. Stadium evolved from the simple functional requirements of the thermal management of the LED diodes and the driver to gain optimum efficiency and performance. The square finned form achieves maximum cooling of the LED area with minimum size and material use. The unique integration of the driver components between the lenses further adding to Stadiums slim appearance, creating a truly innovative design in LED spotlighting, explains Tony Lawrence, Concord Design Manager, the design approach.

Concord
The Concord Stadium is an innovative low energy LED spotlight for a myriad of lighting applications, including museums, galleries and retail spaces. The Stadium portfolio introduces two versions, Stadium EVO and Stadium PRO, both with excellent color rendering, low running temperatures, very long lamp life resulting in reduced maintenance costs and energy saving efficient light source with low power consumption.

Linolite
Linolite-Sylvania features a variety of high quality utility lighting fixtures for residential and commercial environments. Where possible all Linolite-Sylvania products are supplied with a Sylvania lamp and are available from stock. Sales and distribution of LinoliteSylvania products are the joint responsibility of our country sales organizations and our partners: the electrical and lighting wholesalers.

SLI Lighting
SLI is committed to technological innovation, superior product quality, and dependable performance. We manufacture to comply with many international standards, including IEC, ANSI, ISO 9000, ISO 14000, UL, and Energy Star.
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Competitive Advantage

30

FINANCIAL OVERVIEW OF COMPANY

31

Industry Overview
India emerged largely unscathed from global recession. The domestic demand continues to be robust attracting global players in India. Definitive change in consumer spent in favour of branded products is clearly visible both in rural and urban markets in India. Havells enjoys leading position in the electrical consumer market. With the large product basket, strong brand and widely spread distribution channel, Havells enjoys a unique position to cater to the consumer needs. With market liberalization, increasing consumerism and higher disposable income, Indian markets are exhibiting revolutionary changes. The Indian consumer is rapidly evolving and Indian growth story is visible in both urban and rural markets. Increasing urbanization coupled with high disposable income growth in rural market is trilling consumer sector. The rural consumer market is expected to reach 720-790 million customers in 2010-11, according to a white paper prepared by CII-Technopak. The economy in the first quarter of this year shows indications of significant growth in automobiles, consumer durables, and FMCG and retail segments. While India is on growth path, certain parts of global economy are still under turbulence. The matured economies like US and Europe, albeit stable, have still not recovered fully out of recession. The Latin American economies and other emerging economies in Asia and Africa on the other hand provide better growth opportunities.

Havells India Performance stand alone

During financial year 2009-10 Havells India has shown a growth of 12% in net revenue at Rs. 2,474 crores from Rs. 2,198 crores in 2009-10. The earnings before interest, depreciation and tax were up by 55% from Rs. 196 crores in 2008-09 to Rs. 305 crores in 2009-10. Profit after tax was up by 58% from Rs. 145 crores in 2008-09 to Rs. 228 crores in 2009-10.

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Financial year 2010 IN RETROSPECT

Havells, on a consolidated basis had net sales of Rs. 5,431.53 crores in financial year 2009-10 against Rs. 5,477.49 crores in previous financial year 2008-09. Havells, on a stand-alone basis had net sales of Rs. 2473.52 crores in financial year 2009-10 against Rs. 2198.36 crores in financial year 2008-09. The operating profit before interest and depreciation was Rs. 305.48 crores in financial year 2009-10 against Rs. 196.91 crores in financial year 2008-09. The interest charges for financial year 2009-10 were Rs. 6.43 crores against Rs. 19.34 crores in financial year 2008-09. Profit after tax was Rs. 228.16 crores in financial year 2009-10 against Rs. 145.23 crores in financial year 2008-09. Sylvania, on stand-alone basis recorded a Revenue of Rs. 2939 crores in financial year 2009-10 against Rs. 3307 crores in financial year 2008-09. Operating profit/ (loss) before interest and depreciation and exceptional item was (Rs. 9) crores.

Rupees(in millions)
Net Revenue EBIDTA As a % of NR Depreciation Interest Add other income Profit before tax As a % of NR Tax Net Profit As a% of NR

Q1 FY09
5,534 550 9.9% 37 49 6 470 8.5% 63 407 7.4%

Q1 FY10
5,862 724 12.4% 54 16 4 658 11.2% 165 493 8.4%

Change %
6% 32%

40% 21%

Results summary

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6% growth in Net Revenue compared to the prior year comparable period. This was driven by 17-20% growth across all business segments except cable and wires which reported a 4% decline in revenues compared to the prior year comparable period .

32% growth in EBIDTA driven by a 250 basis points improvement in EBIDTA margins. Margin improvement is mainly driven by reduction in fixed cost base, decline in material cost with stable prices and increased contribution from cable & wire division

Interest cost reduction owing to lower utilization of credit facilities driven by efficient working capital management

Tax cost increased due to reduction in fiscal exemption for Baddi unit and higher contribution from non exempted unit like cable & wire 21% growth in Profit after Tax with 100 basis points improvement at Rs. 493 mn in Q1 FY10.

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35

Introduction to Human Resource Department

36

Havells core strengths starting with the talent, dedication and values of our employees position us to achieve growth. We operate with the highest standards of integrity and respect for human rights. Our world grows more complex every day. We face increased challenges geopolitical, environmental, regulatory and technical. But our employees have risen to challenges with dedication, ingenuity and hard work. To foster an innovative spirit in the organization, Havells has in place an established policy by the name Idea whereby every employee is encouraged to come up with ideas however small that could improve his/her particular job activity, job environment or any company process for that matter. The Company has also formulated a policy by the name Satark in line with the Companys commitment to the highest possible standards of ethical, moral and legal business conduct and open communication. The policy provides all employees, an avenue to raise concerns by accessing the top management, in case they observe any unethical or improper activities or any other wrongful conduct. Developing our greatest asset, our employees, is an integral part of our business and we place great emphasis on continuous learning and development. Through its gyanodaya sessions Havells displays its commitment to inculcating a culture of knowledge sharing. Our goal is to keep management and employees up to date with current best practices, policies, processes, technologies, laws et al. Ethical business conduct is critical to a business. Accordingly, Employees of the Company are expected to read and understand this Code, uphold these standards in day-to-day activities, and comply with: all applicable laws; rules and regulations and all applicable policies and procedures adopted by the Company that govern the conduct of its employees. The directors and officers of the Company must not only comply with applicable laws, rules and regulations but should also promote honest and ethical conduct of the business. They must abide by the policies and procedures that govern the conduct of the Company's business. Their responsibilities include helping to create and maintain a culture of high ethical standards and commitment to compliance, and to maintain a work environment that encourages the stakeholders to raise concerns to the attention of the management.

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EMPLOYEE ENGAGEMENT

38

INTRODUCTION OF EMPLOYEE ENGAGEMENT

Employee engagement, also called work engagement or worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests. According to Scarlett Surveys, "Employee Engagement is a measureable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn & perform at work". Thus engagement is distinctively different from satisfaction, motivation, culture, climate and opinion and very difficult to measure. Engagement is consistently shown as something given by the employee who can benefit the organization through commitment and dedication, advocacy, discretionary effort, using talents to the fullest and being supportive of the organizations goals and values. Engaged employees feel a sense of attachment towards their organization, investing themselves not only in their role, but in the organization as a whole. Engagement levels can vary according to different biographical and personality characteristics. Younger employees may be positive when they first join an organization, but can quickly become disengaged. Highly extravert and adaptable individuals find it easier to engage. Engagement is a choice; dependent upon what the employee considers is worth investing themselves in. Being satisfied at work is a weaker predictor of business outcomes than engagement and lacks the two-way reciprocal relationship characteristic of engagement. There is a very strong relationship between organizational citizenship and engagement, as both focuses upon going beyond the expected. Both engagement and the psychological contract have a cognitive and emotional element and can depict the two-way employee-employer relationship.
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IMPORTANCE OF EMPLOYEE ENGAGEMENT A company's success is predicated on having effective integrated strategies for their people, operations and finances. The people strategy drives the success of their financial and operational strategies. Work with companies to help them achieve their business objectives by developing effective people strategies and facilitating an environment of employment engagement. This approach is innovative and new to the marketplace. A clear view of the behaviors demonstrated by the engaged employee emerged: belief in the organization desire to work to make things better understanding of business context and the bigger picture respectful of, and helpful to, colleagues willingness to go the extra mile Keeping up to date with developments in the field.

BENEFITS OF EMPLOYEE ENGAGEMENT To overcome fear of change, increase acceptance of new ideas, and create a climate for

achievement. To enhance personal accountability and self-management skills.

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To discover practical tools for effective goal implementation and sustained growth. To determine applicable techniques for motivating yourself and others. To develop a can do attitude.

Objectives of employee engagement

To boost up the Energy level of the Employees. Having some fun along with work. Feeling of belongingness. An effort to develop the communication skill. To increase self confidence & motivation level in the employees. A way to develop the personality in the right direction.

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Employee Relationship Management (ERM)

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Generating engagement

Recent research has focused on developing a better understanding of how variables such as quality of work relationships and values of the organization interact and their link to important work outcomes. 84% of highly engaged employees believe they can positively impact the quality of their organization's products, compared with only 31 percent of the disengaged. From the perspective of the employee, "outcomes" range from strong commitment to the isolation of oneself from the organization. The study done by the Gallup Management Journal has shown that only 29% of employees are actively engaged in their jobs. Those "engaged" employees work with passion and feel a strong connection to their company. About of the business units scoring above the median on employee engagement also scored above the median on performance. Moreover, 54% of employees are not engaged meaning that they go through each workday putting time but no passion into their work. Only about of companies below the median on employee engagement scored above the median on performance.. Access to a reliable model enables organizations to conduct validation studies to establish the relationship of employee engagement to productivity/performance and other measures linked to effectiveness.[ It is an important principle of industrial and organizational psychology (i.e. the application of psychological theories, research methods, and intervention strategies involving workplace issues) that validation studies should be anchored in reliable scales (i.e. organized and related groups of items) and not simply focus on individual elements in isolation. To understand how high levels of employee engagement affect organizational performance/productivity it is important to have an a priori model that demonstrates how the scales interact. There is also overlap between this concept and those relating to well-being at work and the psychological contract. As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital
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Corporate Governance

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What is Corporate Governance?

Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, the board of directors, employees, customers, creditors, suppliers, and the community at large. Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis on shareholders' welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world (see section 9 below). The National Foundation for Corporate Governance (NFCG) has prepared a Discussion Paper on Corporate Governance in India for debate and discussion. The Discussion Paper examines the definition and importance of corporate governance as well as the importance of regulating corporate governance practices in the country. The Discussion Paper also traces the initiatives and regulations with regard to the evolution of corporate governance in the country and benchmarks the existing regulations and practices against the widely accepted and well-known OECD Principles of Corporate Governance. The Paper identifies the future drivers of corporate governance in India and examines how, apart from regulations, the forces of competition and demand for low cost capital will provide the momentum for Indian companies striving to achieve higher standards of corporate governance. Finally, the Paper contains a chapter on the initiatives and activities that the NGCG proposes to undertake to promote good corporate governance practices in the country.
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Features of Good Corporate Governance

1. To avoid conflicts of interest, a company's board of directors should include a substantial majority of independent directors-independent meaning that directors don't have financial or close personal ties to the company or its executives. 2. A company's audit, nominating, and compensation committees should consist entirely of independent directors. 3. A board should obtain shareholder approval for any actions that could significantly affect the relationship between the board and shareholders, including the adoption of antitakeover measures such as "poison pills." 4. Companies should base executive compensation plans on pay for performance and should provide full disclosure of these plans. 5. To avoid abuse in the use of stock options (and executive perquisites), all employee stock option plans should be submitted to shareholders for approval.

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Corporate Governance at Havells

The QRG Group defines corporate governance strategically, which encompasses not only what we do as a company with our profits, but also how we make them. It goes beyond philanthropy and compliance and addresses how our company manages its economic, social, and environmental impacts, as well as its relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm. We as a company have been in lead in offering a portfolio of eco responsible products and services that deliver powerful, sustainable, energy-efficient solutions that don't compromise on capacity and security. Our eco responsibility initiative also focuses on how we run our business, and includes efforts to develop an alternative-energy strategy, and thus reduce the environmental impact of our operations. We strive to bring corporate responsibility to every aspect of our business. We're committed to managing a responsible and diverse supply chain that's consistent with our high standards for environmental and business practices. Breaking down the barriers that constrain innovation is a challenge; we have readily embraced right from the start. Our ability to build communities and promote the exchange of ideas through assistive technologies, participation programs, and standardization is transforming the way people experience our products. We offer our customers holistic energy-efficient solutions, enabling them to not only save money and protect their capital investment, but also lower their energy usage and protect the environment, thus fulfilling our CSR responsibility of sustenance of depleting environmental resources.

Corporate Governance and Ethics

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An implicit sense of ethical business conduct has been the cornerstone of the QRG way on corporate governance. On issues ranging from customer care and business excellence to financial propriety and more, explicit rules and regulations supplement the traditional values on which our group companies have been shaped. This is what we have endeavored to do in the 50 years of our existence. Our values of understanding, trust, integrity and ethics have served us in good stead. Corporate governance as practiced by our Group translates into being fair and civic-minded, fulfilling our duties to the entire spectrum of stakeholders, and, most importantly, making integrity an article of faith across all our operations. The group's adherence to ethical business conduct is rooted in the vision of its Founder Mr Qimat Rai Gupta. We started on sound and straightforward business principles, considering the interests of our shareholders and welfare of our employees as foundation of our long term success. The 'leadership with trust' philosophy that has come to play such a vital role in how our customers perceive us is all the more remarkable given the climate of unparalleled public distrust of people in positions of authority today both in business and politics.

Employee Relations
Our people are the key to our success. Their skills, knowledge, ideas and enthusiasm drive our business. We have high-quality, diverse workforce and employees who fulfill their potential. We have achieved this by giving them development and advancement opportunities along with competitive compensation and benefits that appropriately reward performance We communicate widely with employees to demonstrate how their efforts contribute to our success and to listen to their concerns. We also encourage them to align with our vision. We are committed to open communications and a workplace where everyone's voice is heard. We use several channels to communicate with employees, including an internal web portal and company website along with communication sessions with the top management of the company. These sessions provide assessment of employee satisfaction and are inputs for business planning, management decision-making and company strategy development. They also help employees
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implement company policies, meet high standards of conduct and ensure their behavior reflects company values and policies. We seek to meet leading health, safety and wellness standards to enhance our business performance while optimizing employee health. Our facility policies are designed to continually reduce the risk of occupational injury and illness while promoting employee health and well-being. We wish to be a company that is known for its leadership in corporate ethics and responsibility. A company where employees are proud to work, and customers, partners and suppliers want to do business with.

Corporate Social Responsibility

While it acquires companies and builds internally, QRG Group never loses sight of its responsibility as a good corporate citizen. QRG believes that serving people with meager or no means is the duty of every well-to-do person. It consistently puts that philosophy into action and has initiated several projects for social causes. This has greatly increased the number of children attending school regularly and also alleviates hunger. Corporate Social Responsibility (CSR) at QRG portrays the deep symbiotic relationship that the group enjoys with the communities it is engaged with. As a responsible corporate citizen, they try to contribute to social and environmental causes on a regular basis. Havells contributes to socially responsible activities, like providing mid-day meal in government schools in Alwar district, covering 15000 students per day. Besides this the company has acquired land for constructing a larger kitchen with all the modern facilities to serve freshly cooked food to 50000 students in the area. Havells runs a mobile Medical Van, equipped with a trained doctor and necessary medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. They have also set up free medical check-up camps. In the past, the company has also contributed to the society during various national calamities like the Bihar Flood, Tsunami and Kargil National Relief Fund etc.

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Suggestion and Recommendation

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There should be separate notice board for thought of the day/zonal meetings & daily updating of the offers.

Employee should be motivated by cash also. Books shelf/library should provide latest books of Indian writers rather than Foreign writers.

More efforts must be put on to improve the skills of the employees. They should be provided for overtime i.e. if they work above 8 hrs. More outdoor activities should be played. More mental level training must be there rather than of physical & always of offers.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

The data in the project report is collected through various secondary sources some of which are: Human resource management by Chadha, Harender K. Human resource management by Dessler Gary Human resource management by Aswathapa.K Human resource management by C.B Gupta Human resource management by Khanka Human resource management by T. N chabhra Human resource management by V.S Rao Human resource management by Gosh, Biswanath

Data is collected through various websites which are:

www.havells.com www.havells.co.in www.wikipedia.com www.answer.com www.google.co.in www.yahoosearch.com

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