APPENDICES

Appendix 1

List of firms included in the sample & Rankings as per the Business Standard (BS),

Economic Times (ET) & Fortune India 500

Firms

Industry

Ranks

BS

ET Fortune

Object

Score

1 Indian Oil Corporation Ltd. Oil & Gas 1 1 1 -5.21

2 Reliance Industries Ltd. Oil & Gas 2 2 2 -5.18

3 Bharat Petroleum Corporation Ltd. Oil & Gas 3 3 3 -5.15

4 HPCL Oil & Gas 4 4 4 -5.12

5 Tata Motors Ltd. Auto 5 6 6 -5.06

6 ONGC Ltd. Oil & Gas 6 7 7 -5.03

7 Tata Steel Ltd. Iron & Steel 7 8 8 -5

8 Essar Oil Ltd. Oil & Gas 8 10 9 -4.96

9 Coal India Metals & Mining 9 9 10 -4.96

10 Hindalco Industries Ltd. Metals & Mining 10 11 11 -4.92

11 Bharti Airtel Ltd. Telecommunication 11 12 12 -4.89

12 Larsen & Toubro Ltd. Capital Goods 12 13 13 -4.86

13 NTPC Ltd. Power 13 15 15 -4.8

14 Mahindra & Mahindra Ltd. Auto 14 16 16 -4.77

15 MRPL Oil & Gas 15 17 17 -4.74

16 GAIL (India) Ltd. Oil & Gas 17 19 19 -4.68

17 Bharat Heavy Electricals Ltd. Capital Goods 18 20 20 -4.65

18 SAIL Ltd. Iron & Steel 19 22 22 -4.59

19 Maruti Suzuki India Ltd. Auto 20 23 24 -4.55

20 Chennai Petro Oil & Gas 21 25 25 -4.51

21 JSW Steel Ltd. Iron & Steel 24 29 30 -4.37

22 Tata Power Company Ltd. Power 25 34 35 -4.23

23 ITC Ltd. FMCG 26 35 36 -4.2

24 Petronet LNG Oil & Gas 27 36 37 -4.17

25 Grasim Industries Ltd. Diversified 28 38 39 -3.83

26 Hindustan Unilever Ltd. FMCG 29 40 41 -3.83

27 Motherson Sumi Systems Ltd. Auto Ancillaries 31 44 43 -3.83

28 Aditya Birla Nuvo Ltd. Diversified 32 43 44 -3.83

29 Hero MotoCorp Ltd. Auto 33 45 46 -3.83

30 Reliance Infrastructure Ltd. Infra Development 34 46 47 -3.83

31 Idea Cellular Ltd. Telecommunication 35 49 50 -3.83

32 Reliance Communications Ltd. Telecommunication 36 50 52 -3.83

33 Ultra Tech Cement Cement 37 51 53 -3.83

34 Bajaj Auto Ltd. Auto 38 53 55 -3.83

35 Jindal Steel & Power Ltd. Iron & Steel 39 54 56 -3.83

36 Jet Airways (India) Ltd. Airlines 40 55 57 -3.83

37 Suzlon Energy Ltd. Capital goods 41 58 59 -3.52

38 Jaiprakash Associates Ltd. Diversified 42 57 60 -3.52

39 Adani Enterprises Ltd. Wholesale trading 43 52 54 -3.83

40 Cairn India Ltd. Oil & Gas 44 60 63 -3.43

41 Tata Communications Ltd. Telecommunication 45 63 66 -3.35

42 Gitanjali Gems Gems & Jewelry 46 339 68 0.41

43 Future Retail Ltd. Retail trade 47 71 74 0.15

44 Tata Chemicals Ltd. Basic Materials 48 67 75 0.15

45 Hindustan Zinc Ltd. Metals & Mining 49 69 76 0.15

46 Lanco Infratech Ltd. Infra Development 50 74 78 0.15

47 Power Grid Corporation of India Power 51 73 79 0.15

48 Ashok Leyland Ltd. Auto 52 76 81 0.15

49 NMDC Ltd. Metals & Mining 53 77 82 0.15

50 Siemens Ltd. Capital goods 54 88 83 0.15

51 Apollo Tyres Ltd. Tyres & tubes 55 78 84 0.15

52 Ranbaxy Laboratories Ltd. Drugs & Pharma 56 79 86 0.15

53 Crompton Greaves Ltd. Capital goods 57 82 87 0.15

54 Dr. Reddy's Laboratories Ltd. Drugs & Pharma 58 83 88 0.15

55 MRF Ltd. Tyres & tubes 59 81 89 0.15

56 EID Parry (India) Ltd. Sugar 60 90 90 0.15

57 Sun Pharmaceutical Industries Ltd. Drugs & Pharma 61 85 91 0.15

58 Punj Lloyd Ltd. Eng. & Construction 62 84 94 0.15

59 Asian Paints Ltd. FMCG 63 87 95 0.15

60 ACC Ltd. Cement 64 86 96 0.15

61 Jindal Stainless Ltd. Iron & Steel 65 92 97 0.15

62 Oil India Ltd. Oil & Gas 66 91 98 0.15

63 GMR Infrastructure Ltd. Infrastructure Dev. 68 89 99 0.15

64 Welspun Corp Ltd. Textiles & Garments 69 93 100 0.15

65 Titan Industries Consumer Durables 70 102 114 0.16

66 Bhushan Steel Ltd. Iron & Steel 71 95 101 0.15

67 Max India Ltd. Diversified 72 96 102 0.15

68 Shree Renuka Sugars Ltd. Sugar 73 100 103 0.16

69 Bharti Infratel Telecommunication 74 98 104 0.16

70 United Spirits Ltd. Beer & Alcohol 75 94 106 0.15

71 Ambuja Cements Ltd. Cement 76 103 108 0.16

72 Lupin Drugs & Pharma 77 104 110 0.16

73 UPL Food Agri Product 78 109 116 0.16

74 JSW Energy Ltd. Power 79 111 119 0.37

75 DLF Ltd. Real Estate 80 113 120 0.37

76 Coromandel International Ltd. Fert. & Agro Chem 81 112 122 0.37

77 PTC India Power 82 118 0.12

78 Bosch Auto Ancillaries 83 114 123 0.37

79 Chambal Fertilizers Fert. & Agro Chem 84 121 124 0.54

80 Cipla Drugs & Pharma 86 116 126 0.53

81 Nestle India Food -Agri Products 87 117 130 0.53

82 Torrent Power Power 88 118 132 0.55

83 Sundaram-Clayton Auto Ancillaries 89 119 133 0.55

84 Gammon India Eng. & Construction 90 131 137 0.55

85 Havell's India Consumer Durables 91 124 138 0.55

86 Zuari Agro Chemicals Fert. & Agro Chem 92 183 139 0.55

87 NHPC Power 93 125 140 0.55

88 CESC Power 94 126 141 0.55

89 Amtek Auto Auto Ancillaries 95 355 0.5

90 ABB India Capital Goods 96 130 145 0.55

91 Tube Investments Diversified 97 129 146 0.55

92 TVS Motor Company Ltd. Auto Ancillaries 98 133 148 0.55

93 Tata Global Beverages Ltd. Tea & Coffee 99 134 149 0.55

94 JBF Industries Textiles & Garments 101 135 151 0.55

95 NCC Ltd. Eng. & Construction 102 138 152 0.55

96 Godrej Industries Ltd. Diversified 103 137 153 0.55

97 Bharat Electronics Ltd. Capital Goods 104 145 154 0.55

98 JK Tyre & Industries Ltd. Tyres & tubes 105 139 155 0.55

99 Wockhardt Ltd. Drugs & Pharma 106 146 156 0.55

100 KEC International Ltd. Capital Goods 108 141 159 0.55

101 Adani Power Power 109 142 160 0.55

102 National Fertilizers Ltd. Fert. & Agro Chem 110 150 162 0.55

103 IL & FS Transportation Net Infrastructure Dev. 112 149 164 0.55

104 Godrej Consumer Products Ltd. FMCG 113 152 165 0.55

105 Bombay Burmah Diversified 114 153 166 0.55

106 Exide Industries Ltd. Storage Batteries 115 156 167 0.55

107 Eicher Motors Ltd. Auto Ancillaries 116 155 169 0.55

108 Jindal Saw Ltd. Iron & Steel 117 147 171 0.55

109 Uttam Value Steels Ltd. Iron & Steel 118 157 172 0.55

110 Uttam Galva Iron & Steel 119 161 173 0.55

111 Cadila Healthcare Ltd. Drugs & Pharma 120 158 174 0.55

112 Gujarat State Fertilizer & Chemicals

Ltd.

Fert. & Agro Chem 121 159 175 0.55

113 Neyveli Lignite Power 122 160 176 0.55

114 Dabur India FMCG 123 162 177 0.55

115 Britannia Industries Ltd. Food -Agri Products 124 163 178 0.55

116 Kalpataru Power Transmissions Ltd. Capital Goods 125 164 179 0.55

117 Aurobindo Pharma Ltd. Drugs & Pharma 126 169 180 0.55

118 Gokul Refoils & Solvent Ltd. Food -Agri Products 127 165 196 0.55

119 IVRCL Ltd. Eng. & Construction 128 197 181 0.55

120 Century Textiles & Industries Ltd. Diversified 129 166 182 0.55

121 Bharat Forge Ltd. Auto Ancillaries 130 170 185 0.55

122 Simplex Infrastructures Ltd. Eng. & Construction 131 167 186 0.55

123 Kesoram Industries Ltd. Diversified 132 171 187 0.55

124 Spicejet Ltd. Airlines 133 172 189 0.55

125 Shree Cements Ltd. Cement 134 173 190 0.55

126 Voltas Ltd. Diversified 135 174 191 0.55

127 Arvind Ltd. Textiles & Garments 136 182 192 0.55

128 DCM Shriram Consolidated Ltd. Diversified 137 177 193 0.55

129 Thermax Ltd. Capital Goods 138 176 194 0.55

130 Fortis Healthcare Ltd. Healthcare -Hospitals 140 178 199 0.55

131 Jain Irrigation Systems Ltd. Capital Goods 141 179 202 0.55

132 Reliance Power Power 142 184 206 0.55

133 Jubilant Life Sciences Ltd. Drugs & Pharma 143 185 207 0.55

134 Uflex Ltd. Packaging 144 187 208 0.55

135 India Cements Ltd. Cement 145 186 209 0.55

136 Sintex Industries Ltd. Diversified 146 188 210 0.55

137 Vardhman Textiles Ltd. Textiles & Garments 147 192 211 0.55

138 CEAT Tyres & tubes 148 190 212 0.55

139 Glenmark Pharmaceuticals Ltd. Drugs & Pharma 149 191 214 0.55

140 Prism Cement Ltd. Cement 150 195 217 0.55

141 Ballarpur Industries Ltd. Paper 151 194 218 0.55

142 Cummins India Ltd. Capital Goods 152 196 219 0.55

143 Marico Ltd. Food -Agri Products 153 205 220 0.66

144 Shipping Corporation of India Ltd. Shipping Services 154 198 221 0.66

145 Container Corporation of India Ltd. Transport Logistics 155 200 223 0.66

146 Apar Industries Basic Materials 156 202 225 0.66

147 Era Infra Engineering Ltd. Eng. & Construction 157 203 226 0.66

148 Bajaj Hindustan Sugar 158 207 228 0.66

149 Binani Industries Ltd. Diversified 159 206 230 0.66

150 Gujarat Narmada Valley Fertilizers &

Chemicals Ltd.

Fert. & Agro Chem 160 208 232 0.66

151 Adani Ports & SEZ Ltd. Infrastructure Dev. 161 209 233 0.66

152 Raymond Ltd. Textiles & Garments 162 215 234 0.66

153 Patel Engineering Ltd. Eng. & Construction 163 214 237 0.66

154 Escorts Ltd. Auto 164 213 240 0.66

155 BASF India Ltd. Basic Materials 165 224 243 0.66

156 Ramky Infrastructure Ltd Eng. & Construction 166 231 244 0.66

157 Allcargo Logistics Ltd. Transport & Logistics 167 221 246 0.66

158 Zee Entertainment Enterprises Ltd. Media 168 229 247 0.66

159 Bayer Cropscience Ltd. Fert. & Agro Chem 169 222 248 0.66

160 United Breweries Ltd. Beer & Alcohol 170 225 249 0.66

161 Ramco Cements Cement 172 227 252 0.66

162 SRF Ltd. Diversified 174 230 253 0.66

163 Usha Martin Ltd. Iron & Steel 175 240 254 0.66

164 IRB Infrastructure Developers Ltd. Infrastructure Dev. 176 232 255 0.66

165 Pidilite Industries Ltd. FMCG 177 238 256 0.66

166 Indian Hotels Company Ltd. Hotels -Restaurants 178 235 258 0.66

167 Piramal Enterprises Drugs & Pharma 179 243 259 0.66

168 MTNL Telecommunication 180 236 260 0.66

169 Mercator Ltd. Shipping Services 181 239 261 0.66

170 Apollo Hospitals Enterprise Ltd. Healthcare -Hospitals 182 234 262 0.66

171 Bombay Rayon Fashions Ltd. Textiles & Garments 183 261 264 0.66

172 Garden Silk Mills Ltd. Textiles & Garments 184 242 265 0.66

173 Aban Offshore Ltd. Offshore Drilling 185 244 266 0.66

174 Welspun India Ltd. Iron & Steel 186 245 267 0.66

175 Bilcare Ltd. Packaging 187 247 269 0.66

176 Shoppers Stop Ltd. Retail Trade 188 250 270 0.66

177 SEL Manufacturing Company Ltd. Textiles & Garments 189 223 366 0.66

178 Surya Roshni Ltd. Diversified 190 248 272 0.66

179 National Steel and Agro Industries

Ltd.

Iron & Steel 191 251 273 0.66

180 India Glycols Basic Materials 192 252 274 0.66

181 Bajaj Electricals Ltd. Consumer Durables 193 253 275 0.66

182 Supreme Industries Ltd. Basic Materials 194 254 276 0.66

183 Torrent Pharmaceuticals Ltd. Drugs & Pharma 195 266 277 0.66

184 Balkrishna Industries Ltd. Tyres & tubes 196 256 278 0.66

185 Berger Paints (India) Ltd. FMCG 197 258 279 0.66

186 Great Eastern Shipping Company

Ltd.

Shipping Services 198 255 280 0.66

187 Indraprastha Gas Ltd. Oil & Gas 199 257 281 0.66

188 Ruchi Soya Industries Ltd. Food -Agri Products 200 37 58 -3.83

189 Trident Ltd. Textiles & Garments 201 259 282 0.66

190 Alstom T&D India Ltd. Capital Goods 202 273 283 0.66

191 GSK Consumer FMCG 203 263 284 0.66

192 Essar Shipping Shipping Services 204 264 285 0.66

193 Jaypee Infratech Infrastructure Dev. 205 265 286 0.66

194 Whirlpool of India Ltd. Consumer Durables 206 271 287 0.66

195 Gujarat Fluorochemicals Ltd. Basic Materials 207 274 289 0.66

196 N B C C Eng. & Construction 209 260 291 0.66

197 Kansai Nerolac Paints Ltd. FMCG 210 277 292 0.66

198 Balrampur Chini Mills Ltd. Sugar 211 262 294 0.66

199 Castrol India Ltd. Lube Oils- Lubricants 212 270 295 0.66

200 Colgate-Palmolive (India) Ltd. FMCG 213 268 296 0.66

201 Gujarat Gas Company Ltd. Oil & Gas 214 275 299 0.66

202 Sesa Sterlite Minerals 215 301 300 0.66

203 BGR Energy Systems Ltd. Capital Goods 216 278 301 0.66

204 Indo Rama Synthetics (India) Ltd. Textiles & Garments 217 276 302 0.66

205 Strides Arcolab Ltd. Drugs & Pharma 218 303 0.5

206 ISGEC Heavy Engineering Ltd. Capital Goods 219 288 304 0.66

207 Sterlite Technologies Ltd. Capital Goods 220 280 306 0.66

208 Balmer Lawrie & Company Ltd. Diversified 221 283 309 0.66

209 Amara Raja Batteries Ltd. Storage Batteries 222 287 311 0.66

210 Gujarat Ambuja Exports Ltd. Food -Agri Products 223 284 350 0.66

211 Jyoti Structures Ltd. Capital Goods 224 286 312 0.66

212 JK Cement Ltd. Cement 225 290 313 0.66

213 Vikas WSP Food -Agri Products 226 293 314 0.66

214 BEML Ltd. Capital Goods 227 292 315 0.66

215 Blue Star Ltd. Consumer Durables 228 291 316 0.66

216 Supreme Petrochem Ltd. Basic Materials 229 289 317 0.66

217 Adhunik Metaliks Ltd. Iron & Steel 230 282 308 0.66

218 IPCA Laboratories Ltd. Drugs & Pharma 231 299 320 0.66

219 Tulip Telecom Ltd. Telecommunication 232 424 321 0.66

220 Alstom India Ltd. Capital Goods 233 294 322 0.66

221 Dalmia Bharat Sugar and Industries

Ltd.

Diversified 234 295 323 0.66

222 Birla Corporation Ltd. Cement 236 306 325 0.66

223 Engineers India Ltd. Eng. & Construction 237 298 327 0.66

224 Mangalore Chemicals & Fertilizers

Ltd.

Fert. & Agro Chem 238 302 328 0.66

225 Nakoda Ltd. Textiles & Garments 239 307 329 0.66

226 Biocon Ltd. Drugs & Pharma 240 303 330 0.66

227 GlaxoSmithKline Consumer

Healthcare Ltd.

FMCG 241 263 284 0.66

228 Diamond Power Infra Capital Goods 242 320 351 0.66

229 Deepak Fertilizers Fert. & Agro Chem 243 305 332 0.66

230 GVK Power & Infrastructure Ltd. Infrastructure Dev. 244 304 333 0.66

231 RSWM Ltd. Textiles & Garments 245 310 334 0.66

232 McNally Bharat Engineering

Company Ltd.

Capital Goods 246 308 336 0.66

233 Sundram Fasteners Ltd. Auto Ancillaries 247 385 337 0.66

234 Tata Tele (Mahanagar) Telecommunication 248 309 339 0.66

235 Dhunseri Petrochem & Tea Ltd. Textiles & Garments 249 328 340 0.66

236 Unitech Ltd. Real Estate 250 315 343 0.66

237 Polyplex Corporation Ltd. Packaging 251 319 344 0.66

238 Jayaswal Neco Industries Iron & Steel 252 323 345 0.66

239 GTL Telecommunication 253 314 347 0.66

240 Kirloskar Brothers Ltd. Capital Goods 254 269 348 0.66

241 Pipavav Defence and Offshore Ship Building 255 318 349 0.66

242 Tecpro Systems Capital Goods 256 317 346 0.66

243 Shri Lakshmi Cotsyn Textiles & Garments 259 413 480 0.66

244 JMC Projects Eng. & Construction 260 324 353 0.66

245 Prakash Industries Ltd. Iron & Steel 261 329 356 0.66

246 Jaiprakash Power Ventures Power 262 325 357 0.66

247 Chettinad Cement Corporation Ltd. Cement 263 360 0.5

248 Unity Infraprojects Ltd. Eng. & Construction 264 332 362 0.66

249 Opto Circuits India Ltd. Healthcare -Hospitals 265 334 363 0.66

250 Kirloskar Oil Engines Capital Goods 266 336 365 0.66

251 Madras Fertilizers Ltd. Fert. & Agro Chem 268 341 368 0.66

252 Prestige Estates Projects Real Estate 269 400 369 0.66

253 Godawari Power Iron & Steel 270 337 371 0.66

254 AKZO Nobel India FMCG 271 340 373 0.66

255 Supreme Infrastructure Infrastructure Dev. 272 342 374 0.66

256 Sakthi Sugars Ltd. Sugar 273 347 376 0.66

257 Finolex Cables Ltd. Consumer Durables 274 351 377 0.66

258 Phillips Carbon Black Ltd. Basic Materials 275 350 378 0.66

259 KSK Energy Ventures Power 276 346 379 0.66

260 Trent Retail Trade 277 344 380 0.66

261 Rohit Ferro Metals & Mining 278 353 382 0.66

262 FACT Fert. & Agro Chem 279 375 0.5

263 Jindal Poly Films Ltd. Packaging 280 354 383 0.66

264 Divi's Labs Drugs & Pharma 282 365 385 0.66

265 GHCL Basic Materials 283 355 386 0.66

266 Dish TV India Media 284 356 387 0.66

267 SKF India Ltd. Auto Ancillaries 285 349 388 0.66

268 ABG Shipyard Ltd. Capital Goods 286 371 389 0.66

269 Electrosteel Castings Ltd. Iron & Steel 288 345 391 0.66

270 Sadbhav Engineering Ltd. Eng. & Construction 289 358 392 0.66

271 Gujarat NRE Coke Ltd. Coal 291 370 394 0.66

272 MMTC Wholesale trading 292 326 359 0.66

273 Hind National Glass Packaging 293 391 395 0.66

274 Godfrey Phillips FMCG 294 377 396 0.66

275 Mukand Ltd. Iron & Steel 297 372 398 0.66

276 MindaCorp Auto Ancillaries 298 399 0.5

277 Finolex Industries Ltd. Basic Materials 299 368 400 0.66

278 Bombay Dyeing & Manufacturing Textiles & Garments 300 338 401 0.66

Company Ltd.

279 Responsive Industries Plastic Products 301 364 403 0.66

280 KRBL Food -Agri Products 302 384 405 0.66

281 Forbes & Co. Diversified 303 387 406 0.66

282 Mahindra Forgings Ltd. Auto Ancillaries 304 407 0.5

283 Aarti Industries Ltd. Basic Materials 305 383 408 0.66

284 Hatsun Agro Products Ltd. Food -Agri Products 306 369 409 0.66

285 HT Media Media 307 373 410 0.66

286 Monnet Ispat Iron & Steel 309 376 414 0.66

287 Transport Corporation Transport Logistics 310 374 412 0.66

288 Lakshmi Machine Works Ltd. Capital Goods 311 386 413 0.66

289 Gayatri Projects Eng. & Construction 312 408 416 0.66

290 Graphite India Basic Materials 313 406 417 0.66

291 Atul Ltd. Basic Materials 314 393 418 0.66

292 JK Lakshmi Cement Ltd. Cement 315 380 419 0.66

293 Sobha Developers Ltd. Real Estate 316 426 420 0.66

294 Greenply Industries Basic Materials 317 395 421 0.66

295 Manaksia Ltd. Packaging 318 389 422 0.66

296 Savita Oil Technologies Ltd. Lube Oils- Lubricants 319 390 423 0.66

297 APL Apollo Tube Iron & Steel 320 402 425 0.66

298 Omaxe Real Estate 321 382 426 0.66

299 Force Motors Auto Ancillaries 322 399 427 0.66

300 Tamil Nadu Newsprint & Papers Paper 325 394 431 0.66

301 Triveni Engineering & Industries Sugar 326 378 432 0.66

302 Dhampur Sugar Mills Sugar 328 497 435 0.66

303 Hanung Toys and Text Textiles & Garments 329 432 468 0.66

304 Sun TV Network Media 330 403 436 0.66

305 Ashoka Buildcom Engg & Construction 331 421 437 0.66

306 B S Ltd Infrastructural constr. 333 404 439 0.66

307 Nahar Spinning Textiles & Garments 334 410 440 0.66

308 OCL India Cement 335 429 442 0.66

309 Asahi India Glass Auto Ancillaries 336 414 443 0.66

310 Carborundum Universal Ltd. Basic Materials 337 407 444 0.66

311 Bata India Ltd. Leather 339 425 447 0.66

312 HDIL Real Estate 340 448 0.5

313 SJVN Ltd Power 341 419 449 0.66

314 Greaves Cotton Ltd. Capital Goods 342 418 450 0.66

315 Wheels India Auto Ancillaries 344 417 452 0.66

316 Amtek India Ltd. Auto Ancillaries 345 422 479 0.66

317 Jai Balaji Industries Ltd. Iron & Steel 346 388 454 0.66

318 HSIL Consumer Durables 348 458 0.5

319 Essel Propack Packaging 349 427 460 0.66

320 KPR Mills Textiles & Garments 350 459 461 0.66

321 Time Technoplast Basic Materials 351 433 462 0.66

322 Pratibha Industries Real Estate 352 367 463 0.66

323 Lakshmi Energy and Foods Food -Agri Products 353 465 0.5

324 Gujarat Alkalies Basic Materials 354 430 466 0.66

325 Gujarat Mineral Development

Corporation Ltd.

Coal 355 431 0.49

326 AIA Engineering Iron & Steel 356 470 0.5

327 HBL Power Systems Ltd. Basic Materials 357 471 0.5

328 Oudh Sugar Mills Sugar 358 472 0.5

329 Procter & Gamble FMCG 359 442 0.49

330 Maharashtra Seamless Ltd. Iron & Steel 360 435 473 0.66

331 Blue Dart Express Transport Logistics 361 439 475 0.66

332 Emami FMCG 362 441 478 0.66

333 TV18 Broadcast Media 363 443 481 0.66

334 Nilkamal Consumer Durables 364 449 482 0.66

335 Nahar Industrial Enterprises Ltd. Textiles & Garments 365 446 483 0.66

336 Tata Coffee Ltd. Tea & Coffee 366 448 0.49

337 Sutlej Textiles & Industries Ltd. Textiles & Garments 367 447 485 0.66

338 McLeod Russel (India) Ltd. Tea & Coffee 368 451 486 0.66

339 Nectar Lifesciences Drugs & Pharma 369 466 487 0.66

340 Sanofi India Drugs & Pharma 370 454 488 0.66

341 KEI Industries Ltd Consumer Durables 371 462 489 0.66

342 Abbott India Drugs & Pharma 372 450 491 0.66

343 Himatsingka Seide Textiles & Garments 373 453 492 0.66

344 Honeywell Automation India Ltd. Capital Goods 374 457 493 0.66

345 Plethico Pharma Drugs & Pharma 375 456 494 0.66

346 Piramal Glass Ltd. Packaging 376 464 495 0.66

347 JK Paper Ltd. Paper 377 460 0.66

348 ISMT Ltd. Iron & Steel 378 465 497 0.66

349 HEG Capital goods 379 468 498 0.66

350 Puravankara Project Real Estate 380 499 0.51

351 Jagran Prakashan Media 381 463 500 0.67

352 TVS Srichakra Tyres & Tubes 382 455 0.49

353 HCL Infosystems Wholesale trading 383 285 319 0.66

354 Jayant Agro Organics Fert. & Agro Chem 384 472 0.49

355 ITD Cementation Eng. & Construction 386 469 0.49

356 Mahindra Ugine Steel Company Ltd. Iron & Steel 387 471 0.49

357 Va Tech Wabag Capital Goods 389 470 0.49

358 Munjal Showa Auto Ancillaries 393 478 0.49

APPENDIX 2: CASE STUDIES

Case Study 1

CSR at Dr. Reddy's Laboratories Ltd.

Introduction

A year after the departure of K. Anji Reddy1, Dr Reddy Laboratories (DRL) Ltd. planned the

launch of a rebranding exercise, including a new logo to place itself as a global player, with a

higher focus on research2. “Dr Reddy’s is planning to rebrand itself by changing its logo and

reposition itself as a global drug maker with an expanded footprint,” internal sources revealed.

“This is the first time that a pharmaceutical company in India is planning to rebrand

itself. Though it may not have any impact on its core business, it will certainly help in

improving its communication.” -Sarabjit Kaur Nangra3

DRL in its annual report stated, "Remuneration paid to the executive directors is determined by

keeping in view the industry benchmarks. The estimate of future salary increases considered

takes into account the inflation, seniority, promotion and other relevant factors"4. The total

employees benefit expenses increased by 14.74% from INR 1928.7 crs to INR 2,213 crs. The

consolidated net revenue of DRL for the year 2013-14 amounted to INR 13,220 crs, as compared

to INR 11,630 crs in 2012-13. EBITDA increased by 19.3% to INR 3,320 crs amounting to 25%

of consolidated revenue; and PAT amounted to INR 2,150 crs and amounted to 16% of the

consolidated revenue5.

1 K. Anji Reddy was the founder of Dr Reddy Laboratories.

2S. Umamaheshwar, “Dr Reddy’s to rebrand for international appeal”, Jul 05, 2014, Retrieved from

http://www.asianage.com/business/dr-reddy-s-rebrand-international-appeal-727 3 Sarabjit Kaur Nangra tracks pharmaceutical companies at Angel Broking.

4 “Hefty pay hikes for Dr Reddy's Laboratories promoters despite moderate revenue growth”, 14 July 2014,

Retrieved from

http://www.dnaindia.com/money/report-hefty-pay-hikes-for-dr-reddy-s-laboratories-promoters-despite-moderate-

revenue-growth-2001852 5 “Hefty pay hikes for Dr Reddy's Laboratories promoters despite moderate revenue growth”, 14 July 2014,

Retrieved from

http://www.dnaindia.com/money/report-hefty-pay-hikes-for-dr-reddy-s-laboratories-promoters-despite-moderate-

revenue-growth-2001852

Background

DRL was founded by Dr K Anji Reddy in the year 19846. The major challenge faced by Dr

Reddy was to manufacture methyldopa7 when IDPL hesitated to do so. He purchased and

improvised the failing Cheminor Drugs, expanding the company exponentially. "If IDPL was

afraid to produce it, nobody else in India would venture into it", Dr Reddy said regarding

methyldopa. It was the first ever active pharmaceutical ingredient produced by Dr Reddy’s. The

first plant was constructed at Bollaram, Hyderabad, in May 1984 and commercial production of

methyldopa began in June 1985. In 1987, DRL began producing formulations which led to one

of its biggest breakthroughs in 1991, namely, Omez8 which still remains the company’s biggest

brand. Omez was one of the early entrants in the Russian prescription market in 1991. Currently,

DRL is the largest pharmaceutical company in India and one of the fastest growing

pharmaceutical companies in Russia.

The journey of the firm can be categorized in three phases from 1984-1990 (initial phase); 1991-

1999 (expansion and innovation) & 2000- 2009 (growth). During the first phase, DRL was

established at Dwarakapuri Colony, Punjagutta, Hyderabad, using an initial capital of INR 25

lacs. Mr. MP Chari was appointed the first Managing Director of Dr. Reddy’s Labs9. The second

phase focused on expansion and innovation with export activities to Moscow, Russia10

. In April

1991, Dr. Reddy’s Labs brand Omeprazole was launched, which went on to become Dr. Reddy’s

Labs first 100 crore brand. The third phase witnessed a global growth with the merger of

Cheminor Drugs Ltd. which made DRL India's third largest pharmaceutical company11

. The

merger enabled Dr. Reddy’s Labs to be competent, raise resources, attract and retain talent and

lower the inherent risks associated with some of its businesses like - bulk drugs, generics,

branded formulations, discovery and biotech. The merger also led to significant synergies while

the diversification in the portfolio enabled the firm to spread the risk.

6 www.drreddys.com/aboutus/our-founder.html

7 Methyldopa: it was used as an antihypertensive treatment, but its use has declined due to severe adverse side

effects. 8 Omez: Omeprazole is an over-the-counter brand available for the treatment of heartburn.

9 www.drreddys.com/25yearsofhealth/milestones_taking_1984

10 www.drreddys.com/25yearsofhealth/milestones_expanding_1991

11 www.drreddys.com/25yearsofhealth/milestones_growing_2000

Core Activities

Dr Reddy’s strives to work efficiently for patient care namely ensure access to affordable

medicines and find solutions for their needs. The generic products produced by the company

provide expensive medicines to patients at a reduced cost. The portfolio includes a number of

therapeutic as well as biologic drugs and partnered with other firms to provide medicines at a

lower price. DRL supplies generic companies with pharmaceutical ingredients, in order to help

them introduce medicines to the market fast and make high cost medicines affordable. To

address unmet patient needs, products were innovated to make lives convenient for patient

convenience and improve the effectiveness of the drugs. To meet the high demand of drugs,

DRL has an active drug discovery program to innovate and produce new chemical entities.

Challenges

The challenges faced by the Indian pharmaceutical industry are very specific in nature. The most

important challenges faced are increasing competition; India's regulatory pricing; media and the

existing political uncertainty12

. The industry and the country also have chances to benefit from

regulating the low priced drugs. The government needs to support the industry and make it

globally relevant by investing in R & D.

Socially Responsible Activities by Dr. Reddy’s Labs

Core Values

The patients rely on the medicines and the company believes that ‘trust’ must be earned every

single day. The company focuses on the interests of the patients and believes in innovation and

learning to excel in its field. The stated core values have been represented in the Table (1) below.

Stakeholders: The Company has become more mechanized reducing dependence on individual

employee. It aims at computerizing its operations and building a new HR system at its

manufacturing sites that use modern techniques of manufacturing and not on cheap casual

workers. The company trains young people with a basic 10+2 education and provides them with

the opportunity to get higher education and work simultaneously so that they earn while

studying. Most of Dr. Reddy’s Labs plants are moving towards this system.

12

www.drreddys.com/media/pdf/strive-for-high-growth-GVP.pdf

Governance: Dr. Reddy’s Labs is highly committed to espouse high standards of corporate

governance and business ethics13

. The Board of Directors, management and employees are

involved in upholding good governance in the firm. The firm believes that transparency, timely

disclosures and accounting policies, strict internal control systems and an independent Board

help maintaining trust of the shareholder and maximizing long-term shareholder value. It is

compliant to Clause 49 of the Listing Agreement provided by SEBI and the standards provided

by the New York Stock Exchange (NYSE).

Dr Reddy’s considered itself to be a value-based, socially responsible organization, with the

highest ethical standards in its operations and behavior. “Corporate social responsibility at Dr.

Reddy’s Labs is about enhancing healthcare, imparting education, developing skills, providing

opportunities and unlocking the doors of progress. It is not an expense, but an investment into

our collective future”14

. For the year 2012-13, total spending on CSR as percentage of PAT

amounted to 1.33% (where, PAT was 1,265.47 cr, as on 31 March 2013)15

. DRL focused

primarily on three areas: Patient Care, Education and Livelihood. Its social activities were

channeled through Dr. Reddy’s Foundation (DRF), health activities through Dr. Reddy’s

Foundation for Heath Education (DRFHE). It creates a positive impact on communities with the

help of its CSR teams in each location16

. Dr. Reddy’s Labs is reputed for doing the right thing by

its customers, shareholders, business partners, the authorities and the media. DRL embraced a

Code of Business Conduct and Ethics (COBE) applicable uniformly to all its employees,

irrespective of level or position. The COBE was designed to abide by the conditions of the

Sarbanes-Oxley Act17

(2002) and its regulations18

.

13

www.drreddys.com/investors/corporate-governance.html 14

www.drreddys.com/aboutus/corporate-social-responsibility 15

www.drreddys.com/investors/pdf/annualreport2013 16

www.drreddys.com/aboutus/corporate-social-responsibility 17

Sarbanes-Oxley Act: The Sarbanes–Oxley Act of 2002 (SOX), is a US federal law that sets standards for all

U.S. public company boards, management and public accounting firms. It was named after its sponsors Senator Paul

Sarbanes and Michael G. Oxley. The Act mandates top management to provide accurate financial information and

decides penalties for falsified financial data. The SOX was enacted as a measure to the various accounting scandals

namely Enron, Tyco International, and WorldCom. 18

www.drreddys.com/investors/cobe

Dr Reddy's Foundation19

(DRF)

Dr. Reddy believed in the capabilities of people, and that people have an inherent motivation for

progress, and are able to do so with the required skills. To encourage that, the DRF was set up to

(1) help improve livelihoods through vocational programs and (2) provide learning opportunities

to the illiterate or drop-outs and improve the quality of education in schools. The DRF also

encourages innovations, making Dr. Reddy’s Labs the first company to start drug discovery

programs in India. The DRF was also recognized as a scientific and industrial research

organization by the Department of Scientific and Industrial Research, Ministry of Science and

Technology, Government of India. The Hyderabad-based Institute of Life Sciences, a research

wing was established as a public-private partnership with the Government of Andhra Pradesh.

Dr. Reddy’s Foundation for Health and Education (DRFHE)

The DRFHE, located at Hyderabad was created on the 8th

of October, 2002 as a registered

society to be a global provider of health care education. Therefore, it offered programs that

focused on creating health educators to work with medical officers and offer a multi-disciplinary

approach to good health. The DRFHE endeavored going beyond the “charity-centric” definition

of CSR by adding value to the healthcare system and society. It intended to reduce the distance

between patients and medical professionals; and develop professionals to complement the

medical professionals and improve the quality of life. The values of DRFHE were: Quality;

Respect for Individual; Innovation & Continuous Learning; Collaboration & Team Work; and

Harmony & Social Responsibility20

.

DRFHE intended to “scale up three verticals”, namely Vertical I, II and III. Vertical I was related

to certifications in Healthcare Management (PGCHM) and in Cancer Counseling (Case

Managers). Vertical II included four initiatives: Sarathi21

, Abhilasha22

, Inner Circle23

and

19

www.business-standard.com/article/companies/dr-reddy-39-s-plans-csr-cells-in-east-108120801011_1 20

www.san-india.org/downloads/drfhe.pdf 21

Sarathi: In 2006, the DRFHE introduced the “Sarathi” program to help Doctors to improve patient care. It is a two

day, comprehensive training program that help the doctor's assistant to improve himself. The participants are trained

in interpersonal behavior, communication skills, stress management, clinic etiquettes and techniques for better

patient management. 22

Abhilasha: The program focuses on training nurses and providing them with necessary skills for effective patient

care and service orientation. It makes nurses confident to perform their jobs efficiently and develop empathy

towards patients and care for them, both physically and emotionally.

Sanjeevani24

. Vertical III included programs like Life at your doorstep (LAYDS)25

and Living

Well26

. The Naandi Foundation was created in 1998, as a public charitable trust, to strive for a

poverty-free India. Currently, it operates in several States, and is a major social enterprise in

India, providing clean drinking water, mid-day meals to school children and creating livelihoods.

23

Inner Circle: The ‘Inner Circle’ was a program designed for young doctors (PGs) that aims to develop their

patient- handling skills needed for a successful career as a doctor. 24

Sanjeevani: The Sanjeevani project was designed in 2008 for pharmacists to be confident and empathize towards

their customers and improve the required skills for effective prescription dispensation. In 2012 alone, 102 programs

were held with 3,052 beneficiaries. 25

Life at your doorstep (LAYDS) was launched in January 2008 focusing on the principle of “Home Care”. The

program attempts to improve quality of life for terminally ill patients. 26

Living Well was a quest to conquer newer horizons in the field of healthcare management and improve the

existing healthcare system. The program is conducted in partnership with the ‘ART OF LIVING’ organization to

help people reduce risk factors and modify their lifestyle for better self management.

Figure 1 Initiatives by Dr. Reddy’s Foundation for Health Education

Source: www.san-india.org/downloads/drfhe.pdf, Abridged from Social Accounts of Dr.

Reddy’s Foundation for Health Education, April 2008 - March 2009

STAFF/DRFHE

TRAINING

PARTNERS

PARTICIPANTS

INNER CIRCLE-PG

ABHILASHA-

NURSES

SARATHI-DOCTORS

DRFHE

INDIA BUSINESS

TEAM

MC MEMBERS (DRL)

DRL-GROUP

NURSING HEADS

Future Plans

Dr Reddy's Co-chairman and CEO, G V Prasad stated that “he would prefer taking risky bets on

research even while adopting a cautious approach to acquisitions”27

. The company intends to

build on its internal strengths to grow into one of the leading pharmaceutical companies

worldwide. The company has extensive plans for its future trying to venture into new products

and new markets. The company is taking enormous steps in the area of cancer research, with the

intention to later diversify into diabetes, pain and GI28

. Dr. Reddy’s Labs plans for high growth

rate by improving itself, through partnerships or through acquisitions and by finding resources

that match its organizational strategy.

New Markets: Dr. Reddy’s Labs has a strong presence in key generics markets worldwide29

in

countries like North America, Venezuela, Europe and the emerging markets of Asia, Africa and

South America and looking for expansion into key markets such as Japan (by acquisition); the

US markets (for generic drug companies); and in Russia30

.

Global expansion: Global Expansion was undertaken through organic growth, partnerships and

acquisitions, which boosted the firm’s capabilities and helped fulfill the needs of its patient and

partners. The various acquisitions and alliances over the years include the acquisition of Roche’s

bulk drugs business; the GSK manufacturing unit in Bristol, United States; OctoPlus31

in

Netherlands; Chirotech Technology32

in the UK; and its alliance with Merck Serono.

27

B Dasarath Reddy, “Dr Reddy's to strive for high growth rate in next 5 years: GV Prasad” (Q&A with co-

chairman and CEO of Dr Reddy's), June 30, 2014, Business Standard, Retrieved from

http://www.drreddys.com/media/pdf/strive-for-high-growth-GVP.pdf 28

www.drreddys.com/media/pdf/strive-for-high-growth-GVP 29

http://www.drreddys.com/aboutus/global-presence.html 30

http://www.drreddys.com/media/pdf/strive-for-high-growth-GVP.pdf 31

Octoplus is a specialty pharmaceutical company focusing on the development and manufacturing improved

injectables. 32

Chirotech Technology is a center of excellence for chemistry, biology and analystics, which are critical for any

pharmaceutical company. The facility allows for the development of expertise in chemistry and processing for

pharmaceutical industry.

References

1. S. Umamaheshwar, “Dr Reddy’s to rebrand for international appeal”, 05 Jul, 2014,

Retrieved from http://www.asianage.com/business/dr-reddy-s-rebrand-international-

appeal-727

2. “Hefty pay hikes for Dr Reddy's Laboratories promoters despite moderate revenue

growth”, 14 July 2014, Retrieved from http://www.dnaindia.com/money/report-hefty-

pay-hikes-for-dr-reddy-s-laboratories-promoters-despite-moderate-revenue-growth-

2001852

3. B Dasarath Reddy, “Dr Reddy's to strive for high growth rate in next 5 years: GV Prasad”

(Q&A with co-chairman and CEO of Dr Reddy's), Business Standard, 30 June, 2014,

Retrieved from http://www.drreddys.com/media/pdf/strive-for-high-growth-GVP.pdf

Web Sources

1. www.business-standard.com

2. www.drreddys.com

3. www.san-india.org

Annexures

Annexure 1. Core values of Dr. Reddy’s Labs33

Integrity and Transparency: We will uphold the highest standards of integrity and transparency

in all our interactions.

Safety: We are committed to providing safe working environments through continuous

improvement of our infrastructure, work practices and behaviours.

Quality: We are dedicated to designing quality into our products and processes to delight our

stakeholders.

Productivity: We strive to achieve more with less through a culture of innovation, continuous

improvement and a sustained focus on elimination of waste.

Respect for the Individual: We are committed to providing a work environment that encourages

diverse perspectives and upholds the dignity of work and of individuals.

Collaboration and Teamwork: We will leverage expertise and resources from across our global

network to create greater value for our stakeholders.

Sustainability: We will create value for all our stakeholders in a manner that respects our natural

environment and serves the best interest of the communities in which we live and work.

Source: www.drreddys.com/aboutus/our-values

33

www.drreddys.com/aboutus/our-values.html

Annexure 2. Financial Performance over Years

Annexure 2. Balance Sheet of Dr. Reddy’s Laboratories (Rs. In Crs)

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources of Funds

Total Share Capital 85.10 84.90 84.80 84.60 84.40

Equity Share Capital 85.10 84.90 84.80 84.60 84.40

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 9,243.90 7,698.50 6,633.00 5,935.60 5,830.20

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 9,329.00 7,783.40 6,717.80 6,020.20 5,914.60

Secured Loans 1.30 3.50 0.50 0.70 0.80

Unsecured Loans 2,663.20 1,585.60 1,532.90 1,444.10 562.40

Total Debt 2,664.50 1,589.10 1,533.40 1,444.80 563.20

Total Liabilities 11,993.50 9,372.50 8,251.20 7,465.00 6,477.80

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application of Funds

Gross Block 4,802.70 4,121.70 3,507.80 3,025.00 2,425.70

Less: Accum. Depreciation 2,054.40 1,734.70 1,611.00 1,334.00 1,110.10

Net Block 2,748.30 2,387.00 1,896.80 1,691.00 1,315.60

Capital Work in Progress 576.10 423.20 637.60 570.40 745.40

Investments 2,806.50 2,379.20 2,477.70 2,462.00 2,652.70

Inventories 1,592.10 1,526.50 1,326.70 1,063.20 897.40

Sundry Debtors 4,561.50 2,963.90 1,943.50 1,770.50 1,060.50

Cash and Bank Balance 665.10 919.10 93.10 66.20 47.90

Total Current Assets 6,818.70 5,409.50 3,363.30 2,899.90 2,005.80

Loans and Advances 1,558.50 1,390.20 1,291.40 1,663.80 1,321.40

Fixed Deposits 0.00 0.00 755.90 0.00 320.10

Total CAs & Advances 8,377.20 6,799.70 5,410.60 4,563.70 3,647.30

Current Liabilities 2,001.60 2,165.40 1,534.30 1,565.20 1,543.80

Provisions 513.00 451.20 637.20 256.90 339.40

Total CL & Provisions 2,514.60 2,616.60 2,171.50 1,822.10 1,883.20

Net Current Assets 5,862.60 4,183.10 3,239.10 2,741.60 1,764.10

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 11,993.50 9,372.50 8,251.20 7,465.00 6,477.80

Contingent Liabilities 2,051.80 2,097.30 2,018.90 1,526.00 2,016.10

Book Value (Rs) 548.41 458.29 396.19 355.69 350.30

Source : Dion Global Solutions Limited

Case Study 2

CSR at Reliance Industries Ltd.

Introduction

In the year ending March 31, 2014, Reliance Industries Ltd (RIL) reported a net profit of INR

56310 million. Total income increased from INR 864410 million for the quarter ending March

31, 2013 to INR 972290 million for the quarter ending March 31, 201434

. The consolidated net

profit/(loss) was INR 224930 million for the year ending March 31, 2014 compared to INR

208790 million for the same quarter for 201335

. On the 19th

of July, 2014, RIL published a 13.7

per cent rise in its first quarter net profits to around USD 1 billion, due to higher margins, better

(petrochem) earnings and a rise in the US shale gas business. The net profits of April-June

increased to INR 5,957 crs from INR 5,237 crs in the same period during the same quarter in

2013.

RIL became the first Indian private sector company to post a profit of USD 1 billion net profit in

a quarter36

. “RIL has delivered a record level of consolidated net profit, this quarter,” quoted

Mukesh Ambani, Chairman and MD, RIL. “This was achieved despite weak regional refining

margins and a planned turnaround in our refinery. The petrochemicals business performance

highlights the strength of our portfolio-mix and end-market diversity,” Ambani said. “We have a

great pipeline of new projects which will give Reliance an enduring competitive advantage.” He

believed that RIL would expand its retail business effectively in existing markets while venturing

into newer markets37

.

34

“RIL Q4 PAT at Rs 5631 crore”, Retrieved from m.indiainfoline.com/newsdetail/TopNews/The-Week-That-

Was/5908288001, Apr 19, 2014 35

“Reliance Industries announces Q4 results; PAT at Rs 5631cr”, Retrieved from

www.moneycontrol.com/news/announcements/reliance-industries-announces-q4-results-pat-at-rs-

5631cr_1071387.html, Apr 19, 2014 36

Press Trust of India, “Mukesh Ambani-led Reliance Industries Ltd becomes first private company to post USD 1

billion quarterly net profit”, July 19, 2014, Retrieved from

http://indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-13-7-per-cent-beats-

estimates/ 37

Press Trust of India, “Mukesh Ambani-led Reliance Industries Ltd becomes first private company to post USD 1

billion quarterly net profit”, July 19, 2014, Retrieved from

http://indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-13-7-per-cent-beats-

estimates/

Activities

The Reliance Group, India's largest private sector enterprise was founded by Dhirubhai H.

Ambani38

and is listed in the global Fortune Global 500 companies as well as in the Fortune

India 500 list. The company started in the late 70s as a textiles firm and gradually diversified into

polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas

exploration and production. RIL integrated into different industry sectors, most significantly into

petrochemicals and crude oil and Reliance Industrial Infrastructure Limited. The four major

operations of the company are classified into Oil and Gas Exploration & Production;

Petrochemicals; Petroleum Refining and Marketing business; and Others. RIL was the largest

refining unit at a single location; the largest producer of Polyester fiber and yarn; the 5th largest

producer of Paraxylene and Polypropylene; and the 8th largest producer of purified Terephthalic

Acid and Mono Ethylene Glycol39

.

CSR-Why? Growth through Commitments

Sustainable Development has always been the cornerstone of RIL to achieve sustainable growth

and create thriving eco-systems. The Reliance Foundation (RF) was set up in 2010, to boost

philanthropic initiatives of RIL, to express its vision of sustainable growth in India. The RF deals

with the most vulnerable communities across India, in order to integrate them in the development

of the country. The Foundation focused on five core activities namely: Education, Health,

Culture & Heritage, Rural Transformation, Urban Renewal and Arts40

.

RIL focuses on philanthropic issues like: Health, Safety & Environment; R & D; Quality;

Human Resource Development; Corporate Citizenship and Energy Conservation41

. RIL believed

that the safety of its employees; belief and concern for environment would lead to sustainable

growth and was involved in education, health, environment, infrastructure development and

relief during natural calamity42

.

38

www.ril.com/html/aboutus/aboutus.html 39

www.ril.com/html/aboutus/about_brands 40

www.reliancefoundation.org/aboutus.html 41

www.ril.com/html/aboutus/our_commitments 42

www.relianceadagroup.com/ada/corporate

Education: CSR teams of RIL work vehemently to support the educational requirements of

schools in the neighboring regions benefiting the underprivileged students of the society. RIL has

a group of nine schools that cater to 13,251 students all across India43

. It also played a major role

to support the Government's initiative to educate the girl child, with projects like "Kanya

Kelvani44

" (in Gujarat). Additionally the project supports computer learning in several villages

and schools run by the Lions Club of Naroda Charitable Trust. A partnership with UNESCO /

BBC was initiated to benefit these children with the latest training aids45

.

Health: RIL built Community Medical Centers near its manufacturing divisions to provide

inclusive health services to neighboring villages. It’s Project ‘Drishti’ was an unique initiative of

RIL in association with the National Association of Blind, helped conduct over 9,000 free

corneal graft surgeries to the underprivileged segment of the society. RIL also partnered with the

Government, NGOs and several agencies to combat TB, HIV / AIDS. The Jamnagar

Manufacturing Division provides nutrition and medicines to HIV infected children through the

'Project Balkalyan'. The Dhirubhai Ambani Hospital (Lodhivali, Maharashtra) plays a major role

in improve the quality of life in its surrounding areas. It provides timely and specialized aid to

accident victims of Mumbai-Pune highway and provides them with free lifesaving treatment.

The Nagothane Manufacturing Division provides free out-patient treatment to nearby tribal

people living in hill tops, and helped build roads to the hilltops making it motorable to the village

Gangawane. The Early Intervention and Rehabilitation Center established by RIL to support

mentally challenged children residing in the areas of Tallarevu Mandal and Yanam.

Safety initiatives for community: RIL’s Hazira Manufacturing Division institutionalized safety

training, helping over 158,000 tanker / truck drivers. The Division collaborated with 'Life Line

Foundation46

' adopting a 110 km stretch on the State Highway in Gujarat spanning from Sachin

to Bharuch to provide care to victims of highway accidents.

43

www.karmayog.org/csr501to1000/csr501to1000_21458.htm 44

Kanya Kelvani: The Kanya Kelavani is a flagship program of the Government that encourages formal education

with special focus on the girls, amidst celebratory claims of 0% dropout rates being attained in several districts in

Gujarat. 45

www.ril.com/html/aboutus/social_resp_comm_dev 46

Life Line Foundation: The Lifeline Foundation works towards ensuring that there are no deaths in the cities

or on the highways of India, due to lack of timely medical aid. It is a registered NGO that pioneered emergency

medical services on the highways and cities of India.

Environment initiatives for the community: As a part of its cleanliness drive, a ‘zero garbage’

drive was commenced in Reliance Townships to popularize waste management in Surat and in

villages surrounding the Hazira Manufacturing Division. To reduce plastic litter, RIL facilitated

a direct sale of waste PET bottles to processing units. It partnered with the Gujarat Engineering

Research Institute47

to construct a 900 meter long road using 5% plastic waste. The CSR team

used non-recyclable plastic waste to construct tar roads that reduced construction costs and

improved the quality of the road, road life, and resulted in low road maintenance. RIL tried

creating awareness among rural folks to use alternate energy and efficient energy usage. The

Division declared a 'Green Idea Award Scheme' in the year 2010, to encourage innovation

amongst students of Surat / RIL employees.

Community Development: The Reliance Rural Development Trust started 797 works in 760

villages of Gujarat to improve infrastructure under the Gokul Gram Yojana48

. 478 Anganwadi

buildings, 58 concrete roads, 61 underground sumps were completed in the financial year 2010-

11. RIL developed street lights; constructed bus sheds, roads, solar street lights in villages; and

provided free supply of blankets etc. Further, free drinking water was supplied to neighboring

villages during periods of water shortage.

Livelihood Support Programs: Divisions like Hazira, Vadodra, Gadimoga offer training

programs to various Self Help Groups to help rural women to be "self sustaining" and earn

income to sustain their families. RIL offers courses in dress designing, health care, beauty,

hospital attendant etc. The youth are offered courses in hand pump repairing, plumbing, driving,

hardware repair, mobile repairing etc. Farmers were also provided training in horticulture

cultivation and fruit saplings.

47

Gujarat Engineering Research Institute (GERI): The GERI, Vadodara established in 1960 is a premier R&D

Institute of Government of Gujarat engaged in investigations, testing and R&D activities in almost all the fields of

Civil Engineering. The main laboratories of the Institute is located at Vadodara and deals in subjects of Material

Testing, Soil Mechanics, Geo-mechanics, Geology, Hydraulic Model Study, Sedimentation Survey and Road

Research Study. The institute deals with various research projects and testing of various material and final products

like cement concrete, mortar, etc. 48

Gokul Gram Yojana (GGY): The main objectives of the GGY are to provide basic amenities, Increase

employment opportunities, Integrate development schemes, Integrate people participation in the development

process, Idolize the feeling of community partnership and help create villages with clean environment, beautiful

surrounding and having basic amenities within a stipulated frame.

Improving quality of agricultural produce: Several exhibitions were conducted for farmers to

circulate advanced technologies for production; storage and distribution of agricultural products;

and promotion of Leno bags amongst farmers. RIL also provided solutions for banana farmers,

especially those engaged in exporting their products.

Heritage Conservation & Culture: RIL was passionately involved in development of religious

places such as Dwarka, Sudama Setu (a bridge connecting both the two banks of river Gomati);

Shardapeeth of Jagadguru Shankaracharyaji; the Dhirajdham at Nathdwara Temple. RIL

distributed gifts to girls during the Navratri festival and was also associated in providing

financial assistance to institutions organizing Navratri. Financial assistance was provided for

festivals like Durga puja, Shivratri, Sardar Patel's birth anniversary during the financial year

2010-11.

Promoting Sports and Sportsmen: RIL is continuously involved in promoting and supporting

sports and sportsmen and supports G1 Cricket Tournament, Reliance Inter-Cricket Tournament,

Central Board of Cricket, Jamnagar District Football Association and Gujarat State Football

Association etc.

Supporting Institutions: The Dahej Manufacturing Division of RIL financially supported the

‘Swajaldhara Scheme’49

, and to educational institutions like: Consumer Education and Research

Council (CERC), Centre for Environmental Planning and Technology (CEPT), MP Shah

Medical College, Gramshree Trust etc.

Conclusion

On the 4th

of July, 2014, Mr. Mukesh Ambani, Chairman, Reliance Group, stated “I am delighted

to share with you that we have brought on stream the polyester filament yarn facility of 395,000

MT capacities at Silvassa. This is operating at full capacity and will further strengthen India’s

position as a textile major. The polyester business which is over 30 years old continues to service

a large number of small enterprises while continuously adding to India’s growing textile

49

Swajaldhara Scheme: The scheme provided drinking water by laying pipeline in neighboring villages.

production and exports”50

. RIL built its new yarn facility that is automated and environment-

friendly. This plant located at Silvassa is one of the first in its string of planned growth.

Moreover, the entire products of the facility have been placed in domestic as well as international

markets. The facility significantly improved RIL’s petrochemical volume of production and

enhanced its cost competitiveness. During the year 2013-14, Indian textile exports rose by 14 %

and the announcement of textile industry-friendly policies by the Government, encouraged the

value of the textile sector’s growth. RIL reduced its transportation costs by purchasing from

nearby facilities and sold its products to nearby polyester facilities. RIL plans to increase its in-

house demand in the next fiscal year and deflect its in-house volumes and concurrently optimize

external sources and increase profitability51

.

References

1. RIL Q4 PAT at Rs 5631 crore, m.indiainfoline.com/newsdetail/TopNews/The-Week-

That-Was/5908288001, Apr 19, 2014

2. “Reliance Industries announces Q4 results; PAT at Rs 5631cr”,

www.moneycontrol.com/news/announcements/reliance-industries-announces-q4-results-

pat-at-rs-5631cr_1071387.html, Apr 19, 2014

3. Reliance Group plans Rs. 1,80,000 -cr investment across business units, July 4, 2014,

http://www.indiantextilemagazine.in/corporate-news/reliance-group-plans-rs-180000-cr-

investment-across-business-units

4. Press Trust of India, “Mukesh Ambani-led Reliance Industries Ltd becomes first private

company to post USD 1 billion quarterly net profit”, July 19, 2014, Retrieved from

http://indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-

13-7-per-cent-beats-estimates/

50

Reliance Group plans Rs. 1,80,000-cr investment across business units, July 4, 2014, Retrieved from

http://www.indiantextilemagazine.in/corporate-news/reliance-group-plans-rs-180000-cr-investment-across-business-

units 51

Reliance Group plans Rs. 1,80,000-cr investment across business units, July 4, 2014, Retrieved from

http://www.indiantextilemagazine.in/corporate-news/reliance-group-plans-rs-180000-cr-investment-across-business-

units/

Web Sources

1. www.reliancefoundation.org

2. www.karmayog.org

3. www.relianceadagroup.com

4. www.ril.com

Appendices

Financial Performance Over years

Table 3. Balance Sheet of Reliance Industries Ltd.------------------- (Rs in Cr)-------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources of Funds

Total Share Capital 3,232.00 3,229.00 3,271.00 3,273.37 3,270.37

Equity Share

Capital 3,232.00 3,229.00 3,271.00 3,273.37 3,270.37

Preference Share

Capital 0.00 0.00 0.00 0.00 0.00

Reserves 193,842.00 176,766.00 159,698.00 142,799.95 125,095.97

Revaluation

Reserves 0.00 0.00 3,127.00 5,467.00 8,804.27

Networth 197,091.00 180,020.00 166,096.00 151,540.32 137,170.61

Secured Loans 10,744.00 2,422.00 6,969.00 10,571.21 11,670.50

Unsecured Loans 74,737.00 52,101.00 51,658.00 56,825.47 50,824.19

Total Debt 85,481.00 54,523.00 58,627.00 67,396.68 62,494.69

Total Liabilities 282,572.00 234,543.00 224,723.00 218,937.00 199,665.30

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application of Funds

Gross Block 194,793.00 187,607.00 209,552.00 221,251.97 215,864.71

Less: Accum.

Depreciation 85,387.00 77,859.00 91,770.00 78,545.50 62,604.82

Net Block 109,406.00 109,748.00 117,782.00 142,706.47 153,259.89

Capital Work in

Progress 41,716.00 19,116.00 4,885.00 12,819.56 12,138.82

Investments 86,062.00 52,509.00 54,008.00 37,651.54 23,228.62

Inventories 42,932.00 42,729.00 35,955.00 29,825.38 26,981.62

Sundry Debtors 10,664.00 11,880.00 18,424.00 17,441.94 11,660.21

Cash and Bank 36,624.00 49,547.00 889.00 604.57 362.36

Balance

Total Current

Assets 90,220.00 104,156.00 55,268.00 47,871.89 39,004.19

Loans and

Advances 40,179.00 32,982.00 24,573.00 17,320.60 10,517.57

Fixed Deposits 0.00 0.00 38,709.00 26,530.29 13,100.29

Total CA, Loans &

Advances 130,399.00 137,138.00 118,550.00 91,722.78 62,622.05

Current Liabilities 80,844.00 79,620.00 66,244.00 61,399.87 48,018.65

Provisions 4,167.00 4,348.00 4,258.00 4,563.48 3,565.43

Total CL &

Provisions 85,011.00 83,968.00 70,502.00 65,963.35 51,584.08

Net Current Assets 45,388.00 53,170.00 48,048.00 25,759.43 11,037.97

Miscellaneous

Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 282,572.00 234,543.00 224,723.00 218,937.00 199,665.30

Contingent

Liabilities 77,162.00 54,600.00 45,831.00 41,825.13 25,531.21

Book Value (Rs) 609.78 557.49 498.21 446.25 392.51

Source : Dion Global Solutions Limited

Case Study 3

CSR at Thermax Ltd.

Introduction

During the first quarter of the financial year 2013-14, Thermax's top-line and bottom-line

performance fell below the investors’ expectations as well as street estimates. The company

reported a 12.3% year on year (YOY) decline in its top-line to INR. 863 cr. as a result of slow

execution in the Energy segment (Segmental revenue fell by 17.2% YOY to INR 634 cr)52

.

Revenue from its Environmental segment amounted to INR 240 cr. Falling revenue and margin

reduction caused a YOY decline of 25.2% in the company's PAT to INR 50 cr. Thermax’s boiler

plant was expected to begin during the third quarter of 2013-2014 and was forecasted to incur

losses (above INR 100cr) as a cause of fixed costs and interest expenses (as a result of lack of

orders). Analysts expected Thermax's return ratios to continue to remain subdued53

. Earlier, the

company had reported revenue of INR 4,763.9 cr. and NPAT of INR 350 cr for the fiscal year

2012-13. The major reasons for the reduced performance can be attributed to the financial

uncertainties in domestic as well as international markets. However, order booking for the year

2013-14, improved to Rs. 4,859 crore, which was a 20% hike from the previous year. During the

year, several new products were introduced. South East Asia and the Middle East accounted for

the largest exports, while attempts were made to penetrate the African market. There was a

growth of over 44.6%, in the service business of the company54

.

History of Thermax

Thermax is an energy and environment engineering company55

located in India and in Britain.

The company was set up by Mr. R. D. Aga in collaboration with Wanson56

, in 1966, with a

capital of INR 0.3 million and an employee pool of 40 people. The company was carried on by

52

Angel Broking, “Thermax 1QFY2014 performance highlights and results update”, July 30, 2013, Retrieved from

http://www.stockmarketsreview.com/recommendations/thermax_1qfy2014_performance_highlights_results_update

_324853/ 53

Angel Broking, “Thermax 1QFY2014 performance highlights and results update”, July 30, 2013, Retrieved from

http://www.stockmarketsreview.com/recommendations/thermax_1qfy2014_performance_highlights_results_update

_324853/ 54

www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Thermax-Ltd/500411 55

Anon, “India's Richest: 55 Anu Aga”, 18 November 2009, Retrieved from

http://www.forbes.com/lists/2009/77/india-billionaires-09_Anu-Aga_10PT.htm,l on 25th

November, 2012 56

Wanson: A Belgium company manufacturing coil-type boiler.

Rohinton Aga57

, joined Thermax a few years after its inception and made immense efforts in

building it. Thermax began its major operations by harnessing the power of steam, produced by

boilers58

. In the initial years, business was commenced under the name of Wanson India Ltd.,

and later renamed as Thermax Limited in 1980. Thermax diversified its operations and entered

into the business of making vapor absorption machines in 1987, in collaboration with Sanyo59

. In

1988, Thermax entered into a Joint Venture with Babcock and Wilcox60

to produce steam

generation units for heat recovery steam generators (HINRGs). Thermax became a publicly

listed company with the Bombay Stock Exchange on the 15th

of February 1995.

In 1996, Rohinton passed away unexpectedly after a heart attack and his wife Anu Aga was

appointed as the Chairperson of Thermax. Aga was expected to run a loss making company and

win back the trust of the shareholders61

,62

. She had to go through a tough phase of transformation

and restructuring since the share prices had dipped to a meager INR 36 from INR. 400. With the

help of the Boston Consulting Group63

she restructured the company in 200164

to improve its

bottom-line65

. Aga emphasized on four steps for effective restructuring: Rightsizing, Shedding of

non-core activities, Board Reconstitution and Cost Reduction66

. She also took steps to increase

57

wikipedia.org 58

www.thermaxindia.com 59

Sanyo: A major electronics company and member of the Fortune 500 whose headquarters is located in Moriguchi,

Osaka prefecture, Japan. Sanyo targets the middle of the market and has over 230 Subsidiaries and Affiliates. 60

Babcock and Wilcox: It is a leading, international provider of energy products and service. It is also the leading

nuclear industry in the development, licensing and deployment of small modular reactors. B&W Power works

closely with Generation Power, the joint company formed by B&W and Bechtel to design, license and build the next

generation of nuclear power plants based on B&W Power reactor technology. 61

Anon, “Such a long journey”, Anu Aga, Director, Thermax, , Retrieved from

http://www.accenture.com/Microsites/vaahini/centre-stage/Pages/such-a-long-journey.aspx on 30th November, 2012 62

“How a shareholder’s letter to Anu Aga catalysed change at Thermax”, 5 October, 2012, Retrieved from

http://articles.economictimes.indiatimes.com/2012-10-05/news/34279918_1_chairperson-meher-pudumjee-thermax-

unrelated-businesses on 30th November, 2012 63

Boston Consulting Group: BCG is a global management consulting firm and the world's leading advisor on

business strategy. We partner with clients in all sectors and regions to identify their highest-value opportunities,

address their most critical challenges, and transform their businesses. 64

Sudha Menon, Business Line: Internet Edition, “Better-equipped, Thermax picks up steam on comeback trail”,

October 22, 2001, Retrieved from http://www.hindu.com/businessline/2001/10/22/stories/02221801.htm on 25th

November, 2012 65

C.R. Sukumar, Business Line: Internet Edition, “Formulating business strategy - Thermax to retain Boston

Consulting”, 6 September, 2000, Retrieved from http://hindu.com/businessline/2000/09/07/stories/020718kb.htm on

2nd December, 2012 66

Roop Karnani, “Thermax’s strategic Overhaul”, Retrieved from

http://archives.digitaltoday.in/businesstoday/20000807/cf7.html on 25th November, 2012

the exports as per the recommendations provided by BCG67

. Within a span of five years, the

financial position of the company recovered to make huge profits68

. In the year 2000-01, sales

increased by 16 per cent to INR. 473 crores and exports rose by 32 per cent to INR 101 crores

and operating loss was brought down to INR 8 crores from INR 21 crores in 1999-200069

.

In 2004, Anu Aga stepped down from her position, naming her daughter and the company vice-

chairperson, Meher Pudumjee, as the successor. Within a year, the Boilers and Heaters division

became the biggest division of the company, accounting for more than 25 % of the total turnover

for the year 2005. The Air Pollution Control Equipment division had a 12.9 % share, while the

Absorption Cooling division accounted for a 11.7 % share70

. Meher exceeded everybody’s

expectations earning great profits for Thermax. Accordingly, Thermax has constantly been a zero

debt company since 2004. She helped in achieving a 40 per cent growth in CAGR and was

chosen the Business Standard ‘CEO of the Year’ during 2007-0871

. She took Thermax Ltd. from

an 850 crores firm (in 2004-05), to a staggering INR 3,300-crore firm in 201072

. In 2005-06,

Thermax had consolidated revenues amounting to USD 363.9 million73

.

Organizational Structure

The core business of Thermax can be categorized into Boilers and Heaters; Cooling and Heating;

Power Generation; Chemicals & Water; Air Pollution Control and Renewable energy. There are

five manufacturing locations in India with a large number of dealers and franchisees and 12 sales

and service offices located throughout the country. It has global presence in critical markets

namely, Europe, US, Brazil, Japan and Russia while providing products and services to over 40

countries worldwide. There are three manufacturing plants in US, Scotland and in Australia. The

67

Business Line: Internet Edition, “Thermax to increase focus on Exports”, 16 September, 2000, Retrieved from

www.hindu.com/businessline/2000/09/16/stories/021618kg.htm on 30th November, 2012 68

GSC, “Anu Aga: A leader for the women of India”, 4 May, 2008, Retrieved from

http://globalsuccessclub.blogspot.in/2008/05/arnavaz-anu-aga-pune-anu-aga-was-born.html on 1st December, 2012 69

N. N. Sachitanand, “Turnaround at Thermax”, www.hindu.com, 9 September, 2001, Retrieved from

http://www.thehindujobs.com/thehindu/2001/09/10/stories/06100004.htm on 25th November, 2012 70

www.ibef.org, October 23, 2010 71

Anon, “Meher Pudumjee- Power House”, Retrieved from http://www.asianenterprise.biz/meher-pudumjee-power-

house/full.html on 30th November, 2012 72

Kethan, “Meher Pudumjee: The Businesswoman”, 27 December, 2010, Retrieved from

http://www.entrepreneursstartup.com/2010/12/meher-pudumjee-the-bussinesswoman/ on 30th

November, 2012 73

www.thermaxindia.com

global subsidiaries help in enhancing its exports and improve its top line. The organization

structure has been represented below.

Figure 2. Organization Structure of Thermax Ltd.

Source: thermax.com

New Products

In the previous year the company made several innovations that increased its scope of business.

The Cooling division introduced 'Dry Coolers' that act as a substitute for regular wet cooling

towers. The dry coolers use air as a medium for transferring heat and can help industries that

operate in areas with scarce water supply. The company also introduced Hybrid Chillers during

the year which combines newer technologies, to reduce power consumption by half while

effectively generating various forms of heat. A new hot air generator was launched by the

Heating business group to provide clean hot air for heating and drying, especially for use in tea

estates74

.

Philosophy

The corporate philosophy of Thermax is based on the core values of honesty, commitment,

respect and concern for the community. “Thermax is committed to carrying out its business in

ethical and sustainable manner and expects all its supply chain partners to follow minimum

standards of Honesty & Integrity, Commitment, Respect and Concern for the Environment and

Community”75

.

Performance over the Years

Thermax had an annual growth rate of 40 per cent under the leadership of Pudumjee. She was

instrumental in removing non-core business activities and reforming the business portfolio. In

2008, Thermax earned profits exceeding INR 250 crore.76

. Pudumjee stated “from 2004 to 2008,

Thermax has grown at a rapid rate of 40% CAGR.” She believed that “We have a very

committed team – be it our colleagues on the shop floor, the management, the Board or our

business partners. People associated with Thermax genuinely feel for the company and strive for

its success”77

. Thermax was featured in the Forbes list of ’Asia's best under a billion’ companies

during the year 2008.

Thermax undertook several global activities by evaluating and improving its products to achieve

competitive advantage, both in domestic and international markets. They planned to tap Chinese

markets for supplying components and chemicals; and to focus on Brazil to exploit the huge

South American market. Recognizing the risks associated of focusing on a single customer or

project, the company’s businesses were widely extended amongst several customers and

geographies78

. Thermax focused on markets like Europe and US79

and has global presence in 19

74

www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Thermax-Ltd/500411 75

www.thermaxindia.com/Fileuploader/Files/Vendor%20code%20of%20conduct%20-%2027Nov2012.pdf 76

Anon, “Meher Pudumjee- Power House”, Retrieved from www.asianenterprise.biz/meher-pudumjee-power-

house/full.html on 5th November, 2012 77

Anon “Meher Pudumjee - Power House”, Retrieved from www.asianenterprise.biz/meher-pudumjee-power-

house/full.html on 5th November, 2012 78

Anand Adhikari, “Meher Pudumjee's future gaze”, 30th

September, 2009, Retrieved from vlex.in/vid/meher-

pudumjee-thermax-peeps-blistering-67477280 on 2nd December, 2012

International offices, 12 Sales & Service offices and 4 Manufacturing facilities spreading across

India and China. Pudumjee stated that currently the main focus of the company was expansion.

INR 40 crore was invested in existing plants to increase chemical produce and new paper

chemicals to enhance portfolio of the new business80

. Two manufacturing plants were set up in

Shirval81

and Sholapur82

in Maharashtra.

CSR at Thermax

Thermax believed that organizations should stop thinking simply of profits and pay attention to

the welfare of the society at large. The firm worked on a humble CSR agenda over a period of

years. The CSR program was formalized with the formation of the Thermax Social Initiative

Foundation (TSIF), in March 2007, as a not-for-profit body registered under the Section 25 of

the Companies Act 1956. Ms. Anu Aga is the Director and Chairperson of TSIF and Mr. Sanyal

is the head of Thermax’s CSR program. Convinced of the significance of education in improving

the quality of life, the TSIF primarily focus on educational initiatives. Thermax was dedicated to

provide quality education to underprivileged children; and involve employees to engage

themselves in various social activities of the company. Anu Aga’s philanthropic activities began

after she lost her 25 years age son in a car accident. She carried on the beliefs of her son, who

believed that “…….a substantial part of the wealth of the rich has to go to charity83

.” The CSR

wing of Thermax, currently has six schools, and also supports the Teach for India program

started by Shaheen (Mistry)84

. Additionally, Thermax donates a hefty amount of money to

organizations/initiatives like Akanksha85

, and Parivaar86

in Calcutta. She began by getting

personally involved with Akansksha which is for the poorest of the poor, and later became a

79

Anon, The Global CEO, “The Globalization of Indian Companies”, Retrieved from

www.docstoc.com/documents/most-recent on 25th November, 2012 80

Meher Pudumjee, “Thermax plans to execute bigger projects: Meher Pudumjee”, October 16, 2012, Retrieved

from businesstoday.intoday.in/story/thermax-plans-to-execute-bigger-projects-meher-pudumjee/1/189089.html on

31 October, 2012. 81

The Shirval facility was established as a joint venture with Babcock & Wilcox, USA, with an investment of INR

800 crores. 82

The facility in Sholapur was an assembly facility of Thermax’s air pollution control business and set up with an

investment of INR 35 crores 83

“Philanthropy: the givers club”, Retrieved from

www.livemint.com/Specials/vMhPPk6gIoLwmWwfSpmW3N/Philanthropy-the-givers-club.html 84

“Philanthropy: the givers club”, Retrieved from

www.livemint.com/Specials/vMhPPk6gIoLwmWwfSpmW3N/Philanthropy-the-givers-club.html 85

Akansksha: It is an NGO that runs centers for slum children 86

Parivaar is a Federation of over 150 Parents Associations and NGOs in 27 States of India working for people

with Mental Retardation, Autism, Cerebral Palsy and Multiple Disabilities, formed in the year 1995.

member of their Board. In Bihar, Thermax operates a school for the rat-eating tribe, run by an

ex-police officer. The budget laid out by Thermax for Elementary Education amounted to a hefty

sum of INR 2.6 cr87

. TSIF reached out to 940 students through their model school program. The

Foundation conducts an ASSET test to track the progress of the children. TSIF employed a team

of 38 full time employees, 50 volunteers and part time employees88

.

Anu Aga opined that: “I think giving your time is critical to being able to scale up giving your

money. The two things have to go hand in hand. There is no substitute to actually giving time and

approaching it the same way you would approach businesses and investments. The biggest

network we use is the GiveIndia89

network……I don’t think that scale up would be able to

happen if we hadn’t leveraged the GiveIndia team90

.” In the year 2012, Thermax increased its

CSR contribution from 1% to 3% (of its profits) through its CSR arm, TSIF. Anu Aga stated “I

would like our company to play a bigger role in community affairs with complete adherence to

the tenets of good corporate governance. We will actively commit ourselves to initiatives that

can help improve the quality of life of the communities in which we live and work91

.”

Responsible Business Activities 92

Health, Safety and Environment Measures: As a part of its responsible business activities,

Thermax focuses on its safety practices, with the belief that injuries can be prevented. The Board

reviews safety norms of the company quarterly, while the Managing Director reviews every

division's safety performance thoroughly. There are well developed emergency plans formed to

deal with any emergency at manufacturing locations and employees are well trained through

regular mock drills on evacuation at all Thermax plants and offices. Internal and external safety

audits are regularly carried out while audit compliance is diligently monitored. Employees are

encouraged to report unsafe conditions and incidents etc. Thermax is also cautious in

maintaining the health of the employees and preventing any occupational health diseases.

87

www.dasra.org/pdf/Elementary_Education/Thermax_Social_Initiative_Foundation.pdf 88

www.dasra.org/pdf/Elementary_Education/Thermax_Social_Initiative_Foundation.pdf 89

GiveIndia is a not for profit organization located in India. It is an online donation platform that aims to channel

and provide resources to credible NGOs across India. 90

Cordelia Jenkins, “Philanthropy: the givers club”, Aug 25 2013,

www.livemint.com/Specials/vMhPPk6gIoLwmWwfSpmW3N/Philanthropy-the-givers-club.html 91

www.thermaxindia.com/corporate-social-responsibility.aspx 92

www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Thermax-Ltd/500411

Periodic medical checkups are conducted for workmen at all factories and sites. Programs to

prevent lifestyle diseases are also conducted by the firm. As environment initiatives a solar

cooker and new industrial effluent plant was set up at Chinchwad factory.

Human Resources: Thermax systematically identifies talented employees for critical roles. The

Thermax Leadership Development Program develops leaders through regular involvement and

infuses fresh talent through various programs like the Graduate Engineer Trainee, Diploma

Engineer Trainee and the Thermax Graduate Programs. The annual Open forum facilitates for

employees to interact with senior officials of the organization to understand issues of the

company and express their concerns. The suggestions provided during the session are

meticulously acted upon. Thermax supports human rights and labor rights as defined by the law

of the country it operates in. Every vendor has to follow all the Labor Laws applicable in the

country of operation. It bans the use of compulsory labor, or child labor. It is mandatory for all

vendors to follow these principles in their business93

.

Suppliers: Suppliers of Thermax are required not to enter into any undisclosed agreement

regarding prices, or any matter that hampers healthy competition. The vendors are also not

supposed to commit any offence under the applicable Laws of the country. Thermax also takes

efforts to support and encourage innovation by its vendors. Vendors are permitted to continue

their business with Thermax only after they accept the Code of Conduct provided by the

company94

.

Conclusion

Over the past few years, Thermax has focused on re-orienting its business model. Thermax plans

to tackle the cyclical nature of the business by:

i) Growing standard products;

ii) Capturing the revenue spends of customers; &

93

Code of Conduct for Thermax Group's Supply Chain Partners, Retrieved from

http://www.thermaxindia.com/Thermax-Supply-Management/Policies/code-of-conduct.aspx 94

Code of Conduct for Thermax Group's Supply Chain Partners, Retrieved from

http://www.thermaxindia.com/Thermax-Supply-Management/Policies/code-of-conduct.aspx

iii) Funding new businesses and product portfolios95

.

MS Unnikrishnan, the Managing Director Thermax Industries believed in the significance of

long-term value creation, adoption of green technologies and the realization that “the business of

business is not just business, but also to contribute to community welfare”96

.

Thermax has plans to form technology partnerships with foreign players to create synergies and

focus on renewable energy to strengthen its green portfolio. Of late, Thermax strengthened its

green portfolio using solar thermal systems for cooling and heating and contributed in the

development of geothermal energy. The company signed an MOU with a company located in

Iceland specializing in drilling for utilizing geothermal energy.

References

1. Anand Adhikari, “Meher Pudumjee's future gaze”, 30th

September, 2009, Retrieved from

vlex.in/vid/meher-pudumjee-thermax-peeps-blistering-67477280 on 2nd December, 2012

2. Angel Broking, “Thermax 1QFY2014 performance highlights and results update”, July

30, 2013, Retrieved from

http://www.stockmarketsreview.com/recommendations/thermax_1qfy2014_performance

_highlights_results_update_324853/

3. Anon, “Green and Clean is the Way to the Future”, Retrieved from www.chemtech-

online.com/CP/Unnikrishnan_dec10.html

4. Anon, “How a shareholder’s letter to Anu Aga catalysed change at Thermax”, 5 October,

2012, Retrieved from http://articles.economictimes.indiatimes.com/2012-10-

05/news/34279918_1_chairperson-meher-pudumjee-thermax-unrelated-businesses on

30th November, 2012

5. Anon, “India's Richest: 55 Anu Aga”, 18 November 2009, Retrieved from

http://www.forbes.com/lists/2009/77/india-billionaires-09_Anu-Aga_10PT.htm,l on 25th

November, 2012

6. Anon, “Meher Pudumjee- Power House”, Retrieved from

www.asianenterprise.biz/meher-pudumjee-power-house/full.html on 5th November, 2012

95

www.motilaloswal.com/site/rreports/HTML/635229588440433223/index.htm 96

“Green and Clean is the Way to the Future”, Retrieved from, www.chemtech-

online.com/CP/Unnikrishnan_dec10.html

7. Anon, “Philanthropy: the givers club”,

www.livemint.com/Specials/vMhPPk6gIoLwmWwfSpmW3N/Philanthropy-the-givers-

club.html

8. Anon, “Such a long journey”, Anu Aga, Director, Thermax,, Retrieved from

http://www.accenture.com/Microsites/vaahini/centre-stage/Pages/such-a-long-

journey.aspx on 30th November, 2012

9. Anon, Retrieved from

http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-

Discussions/Thermax-Ltd/500411

10. Anon, The Global CEO, “The Globalization of Indian Companies”, Retrieved from

www.docstoc.com/documents/most-recent on 25th November, 2012

11. Business Line: Internet Edition, “Thermax to increase focus on Exports”, 16 September,

2000, Retrieved from www.hindu.com/businessline/2000/09/16/stories/021618kg.htm on

30th November, 2012

12. C.R. Sukumar, Business Line: Internet Edition, “Formulating business strategy -

Thermax to retain Boston Consulting”, 6 September, 2000, Retrieved from

http://hindu.com/businessline/2000/09/07/stories/020718kb.htm on 2nd December, 2012

13. Code of Conduct for Thermax Group's Supply Chain Partners

14. Cordelia Jenkins, “Philanthropy: the givers club”, Aug 25 2013, Retrieved from

www.livemint.com/Specials/vMhPPk6gIoLwmWwfSpmW3N/Philanthropy-the-givers-

club.html

15. GSC, “Anu Aga: A leader for the women of India”, 4 May, 2008, Retrieved from

http://globalsuccessclub.blogspot.in/2008/05/arnavaz-anu-aga-pune-anu-aga-was-

born.html on 1st December, 2012

http://www.thermaxindia.com/Thermax-Supply-Management/Policies/code-of-

conduct.aspx

16. Kethan, “Meher Pudumjee: The Businesswoman”, 27 December, 2010, Retrieved from

http://www.entrepreneursstartup.com/2010/12/meher-pudumjee-the-bussinesswoman/ on

30th

November, 2012

17. Meher Pudumjee, “Thermax plans to execute bigger projects: Meher Pudumjee”, October

16, 2012, Retrieved from businesstoday.intoday.in/story/thermax-plans-to-execute-

bigger-projects-meher-pudumjee/1/189089.html on 31 October, 2012.

18. N. N. Sachitanand, “Turnaround at Thermax”, www.hindu.com, 9 September, 2001,

Retrieved from http://www.thehindujobs.com/thehindu/2001/09/10/stories/06100004.htm

on 25th November, 2012

19. Roop Karnani, “Thermax’s strategic Overhaul”, Retrieved from

http://archives.digitaltoday.in/businesstoday/20000807/cf7.html on 25th November, 2012

20. Sudha Menon, Business Line: Internet Edition, “Better-equipped, Thermax picks up

steam on comeback trail”, October 22, 2001, Retrieved from

http://www.hindu.com/businessline/2001/10/22/stories/02221801.htm on 25th

November, 2012

Web Sources

1. en.wikipedia.org

2. www.dasra.org

3. www.ibef.org

4. www.indiainfoline.com

5. www.motilaloswal.com

6. www.thermaxindia.com

Annexures

Table 4. Balance Sheet of Thermax (Rs. in Crs.)

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Sources of funds

Total Share Capital 23.83 23.83 23.83 23.83 23.83

Equity Share Capital 23.83 23.83 23.83 23.83 23.83

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 2,001.16 1,845.44 1,577.35 1,268.51 1,026.96

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 2,024.99 1,869.27 1,601.18 1,292.34 1,050.79

Secured Loans 92.81 12.04 3.64 0.00 0.00

Unsecured Loans 96.50 0.30 162.80 48.04 0.00

Total Debt 189.31 12.34 166.44 48.04 0.00

Total Liabilities 2,214.30 1,881.61 1,767.62 1,340.38 1,050.79

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application of funds

Gross Block 953.35 827.91 804.60 717.13 688.44

Less: Accum. Depreciation 312.93 273.30 272.98 230.52 194.59

Net Block 640.42 554.61 531.62 486.61 493.85

Capital Work in Progress 23.50 90.90 49.02 34.45 13.84

Investments 1,095.52 803.98 552.69 404.36 378.16

Inventories 252.85 210.33 279.22 282.31 246.36

Sundry Debtors 1,352.36 1,423.89 1,250.11 1,001.26 747.05

Cash and Bank Balance 320.14 222.62 13.92 66.34 40.09

Total Current Assets 1,925.35 1,856.84 1,543.25 1,349.91 1,033.50

Loans and Advances 1,169.06 797.81 770.18 1,663.27 653.85

Fixed Deposits 0.00 0.00 555.83 590.23 565.46

Total CA, Loans & Advances 3,094.41 2,654.65 2,869.26 3,603.41 2,252.81

Current Liabilities 2,401.58 1,966.79 1,989.24 2,117.03 1,990.42

Provisions 237.97 255.74 245.73 1,071.42 97.45

Total CL & Provisions 2,639.55 2,222.53 2,234.97 3,188.45 2,087.87

Net Current Assets 454.86 432.12 634.29 414.96 164.94

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 2,214.30 1,881.61 1,767.62 1,340.38 1,050.79

Contingent Liabilities 278.79 285.53 354.14 300.57 227.72

Book Value (Rs) 169.94 156.88 134.38 108.46 88.19

Source : Dion Global Solutions Limited