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Contents

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Corporate Social responsibility in IndiaAreas of CSR addressed in Corporate PoliciesDrivers of CSRGovernments of India take on CSR

ITW CHEMIN brief profileOperational Area SnapshotStatistics of Medak District – Patancheru Sub-Division – Pashmylaram VillagePrevalent Social Issues in Medak DistrictPotential areas of CSR for ITW CHEMIN

Corporate Social Responsibility

Corporate Social Responsibility (CSR) defined as “the ethical behavior of a company towards the society,” manifests itself in the form of such noble programs initiated by for-profit organizations. CSR has become increasingly prominent in the Indian corporate scenario because organizations have realized that besides growing their businesses it is also vital to build trustworthy and sustainable relationships with the community at large. This is one of the key drivers of CSR programs.

Another reason fuelling this rapid adoption of CSR is the state of the Indian society. Though India is one of the fastest growing economies, socio-economic problems like poverty, illiteracy, lack of healthcare etc. are still ubiquitous and the government has limited resources to tackle these challenges. This scenario has opened up several areas for businesses to contribute towards social development.

CSR is not a new concept in India. Corporates like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few, have been involved in serving the community ever since their inception. Many other organizations have been doing their part for the society through donations and charity events.

Today, CSR in India has gone beyond merely charity and donations, and is approached in a more organized fashion. It has become an integral part of the corporate strategy. Companies have CSR teams that devise specific policies, strategies and goals for their CSR programs and set aside budgets to support them.

These programs, in many cases, are based on a clearly defined social philosophy or are closely aligned with the companies’ business expertise. Employees become the backbone of these initiatives and volunteer their time and contribute their skills, to implement them. CSR Programs could range from overall development of a community to supporting specific causes like education, environment, healthcare etc.

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Areas of CSR addressed in Corporate Policies

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Drivers of CSR

GOI Tuning CSR as Mandatory Compliance:

The Indian Government has recently requested that all companies provide details of their investments made as part of CSR initiatives during the last fiscal year. This could lead to mandatory social obligations on companies. This comes after the Ministry of Corporate Affairs introduced voluntary CSR norms in December last year. A parliamentary standing committee on finance, which vetted the Companies Bill, 2009, said in its report that the ministry of corporate affairs has agreed to the suggestion. The committee, headed by former finance minister Yashwant Sinha, has suggested that companies with a net worth of Rs 500 crore or more, or those that have an annual turnover of at least Rs 1,000 crore, or companies with a net profit of Rs 5 crore or more, be covered by the norms. If this is approved, companies will have to spend 2% of their average net profit on CSR. Initiatives will also have to be disclosed in annual reports.

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ITW CHEMIN Profile

ITW Chemin, a business unit of ITW Inc. USA, offers a wide array of the products which includes, Rust Preventive Chemicals, Metal Working Fluids, Precision Work holding, Metal-filled Epoxies and Urethanes, Lubricants, Cleaners, Degreasers, High-performance Industrial Greases, Structural Adhesives, Micro lubrication Systems, Marking Systems, Staining Colours and Steel Blue Layout Liquids, Instant Rust Fighter in Aerosol Can, Contact Cleaner and Automotive After Market.. ITW Chemin which employs almost 200 people has a turnover of Rs. 80 crore.

Operational Area Mapping

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Medak District’sPatancheru Industrial Zone consists of two estates/parks they are IP-Patancheru, IP-Pashamylaram.

IP-Patancheru:The area of IP- Patancheru is 810.33 acres, this industrial estate consists of industries like Engineering works, Processing, Rubber, Plastic, Pharma, Polymers, etc., most of these are small scale to medium scale industries.

IP-Pashamylaram:The area of IP- Patancheru is 1420.11 acres, this industrial estate consists of industrieslike Chemicals, Paints, Engineering works, , Rubber, Plastic, Pharma, Polymers, etc., most of these are small scale, medium scale &Large Scale industries.

Area Profile: Pashamylaram - A village in the mandal of Patancheru, Medak, Andhra Pradesh. It is 35 kms from Hyderabad.

Medak District StatsTotal Rural Urban

'Total Population' 2670097 2286573 383524'Total Illiterates' 1498963 1367815 131148'Total Working Population' 1293657 1171753 121904'Total Marginal Worker' 233606 215557 18049'Total Non Worker' 1376440 1114820 261620'Percentage Cultivators' 30.16 33.1 1.96'Percentage Agriculturals' 37.54 40.73 6.85'Percentage Household Industries' 4.38 4.36 4.6

Patancheru Sub-District StatsTotal Rural Urban

'Total Population' 117252 69403 47849'Total Illiterates' 52365 34769 17596'Total Working Population' 48729 31723 17006'Total Marginal Worker' 14301 11380 2921'Total Non Worker' 68523 37680 30843'Percentage Cultivators' 9.9 14.26 1.78'Percentage Agriculturals' 21.52 28.96 7.64'Percentage Household Industries' 2.93 3.22 2.39

Pashamylaram

1673

203

816

930

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743

20.2228.60

8.49

Total Population'

'Total Population 0- 6Years'

'Total Illiterates'

'Total Working Population'

'Total Marginal Worker'

'Total Non Worker'

'Percentage Cultivators'

'Percentage Agriculturals'

'Percentage HouseholdIndustries'

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Prevalent Social Issues of Medak District (Andhra Pradesh)

In 1975, The Patancheru Industrial Estate was set up, with subsidies and other incentives. The area offered advantages in terms of availability of land and water, proximity to Hyderabad and location on the national highway linking Hyderabad to Mumbai. Pharmaceutical Units drove the boom. It is observed that Forty per cent of the total Indian production of drugs takes place in Andhra Pradesh. Of this 80 per cent are in the districts around Hyderabad.

This very pharmaceutical boom in Patancheru Industrial zone drove the bitter competition, which lead to cost-cutting on pollution control. The industrial boom has hit areas around Patancheru on many fronts—health and livelihoods pre-eminently.

• Agriculture has become unviable in the polluted environment because of Industralization. (The Sultanpur panchayat in Medak, for instance, comprises four villages with a population of 2,727. Until over a decade ago almost all the 669 households were dependent on agriculture. Now less than 10 per cent cultivate. Earlier, people used to get about 100 bags of rice (1 bag is approximately 75 kg) from a hectare (ha). Now it is down to 10-15 bags.)

• Water is highly contaminated and unfit for drinking. (A total of 22 villages in Medak district get piped water, though the supply is erratic. Years of drinking contaminated water and living in a toxic environment have taken a toll on their health.)

• Health Disorders (Morbidity rate in the area had increased 10.18 per cent to 25.49 per cent over 10 years. Asthma, kidney problems, rashes and stomach disorders are most prevalent. Respiratory diseases, cancer, skin diseases, congential abnormalities, miscarriages, abortions, premature deliveries and impotency are highly prevalent.)

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CSR Activity Area

Environment

• Tree Plantation in and around project area and also in schools, hospitals, road-sides etc...

• Setting up an Oxygen zone• Facilitating Nurseries• Tie up with rotary club for

clean and green project • Tie up with government’s

environment projects

Vaishnavi’s Role & Responsibility

• Meeting ITW CHEMIN objective on CSR

• Strategising and executing the activity

• Association with NGO’s / Non-Profit Organisations

• Partnership with Govt. Programs

• Liasion with media for communication of every activity (Proactive & Reactive)

Health• Routine Health Check-Ups• Pathology lab for villagers• Campaign for Health

awareness• Facilitate safe drinking water

(i.e. water coolers in school, community hall, etc.)

• Work shops for pregnant ladies

Community Empowerment • Formation of self-help

groups (SHG’s)• Technical farming training• Organic farming • Facilitating cash crops

through distributing seeds• Empowerment through

sports activity • ITI training program for

unemployed

Education• Education Program for drop-

outs• Introducing Scholarships • Night schools for farmers• Employment based

education programs (In association with different agencies)

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Environment

HealthCommunity Empowerment

Education

CSR Budget 2010-2011: 2% of the Annual Turnover which comes close to 1.60 Crores per annum.

Thank You!

Nilesh Kumar

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