itc

Sustainable Development in ITC 2012-13

Index No

Particulars

Page No.

1

Introduction

1-8

2

Organization Organizatio n Study

9-27

3

Review Of Literature

28-34

4

Research Methodology

35

5

Sustainable Development

36-68

6

Findings, Suggestions, Suggestions, and

69-71

Conclusion 7

Bibliography

1

72


CHAPTER-I INTRODUCTION 1.1 SUSTAINABLE DEVELOPMENT: Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: 

The concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and



The idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.

Parameters of Sustainable Development The goal of sustainable development is an outcome achieved through joint effort among several interrelated parameters and requiring coordination at both vertical and horizontal levels. There exists dynamic triangular relationship among three key Environmental, Economic and Social parameters. The people centered social

parameter form the broad base of triangle as active public participation holds an instrumental role. The interrelationship between population, environment and development is complex. Besides key factors, efficient manpower capacity building, institutional

strengthening,

including

strong

political

will

and

effective

implementation/ monitoring mechanism play equally important roles for successful outcome of the sustainable development. Particularly, these can be dealt as environmental sustainability, sustainability, economic sustainability, sustainability, social sustainability, and institutional sustainability:

Environmental Environmental sustainability sustainability : This relates with maintenance of carrying capacity of natural resource base and life support systems. This emphasizes on area of conservation of biodiversity hotspots, increase in forest cover, watershed protection, and 2


CHAPTER-I INTRODUCTION 1.1 SUSTAINABLE DEVELOPMENT: Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: 

The concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and



The idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.

Parameters of Sustainable Development The goal of sustainable development is an outcome achieved through joint effort among several interrelated parameters and requiring coordination at both vertical and horizontal levels. There exists dynamic triangular relationship among three key Environmental, Economic and Social parameters. The people centered social

parameter form the broad base of triangle as active public participation holds an instrumental role. The interrelationship between population, environment and development is complex. Besides key factors, efficient manpower capacity building, institutional

strengthening,

including

strong

political

will

and

effective

implementation/ monitoring mechanism play equally important roles for successful outcome of the sustainable development. Particularly, these can be dealt as environmental sustainability, sustainability, economic sustainability, sustainability, social sustainability, and institutional sustainability:

Environmental Environmental sustainability sustainability : This relates with maintenance of carrying capacity of natural resource base and life support systems. This emphasizes on area of conservation of biodiversity hotspots, increase in forest cover, watershed protection, and 2

Sustainable Development in ITC 2012-13 adoption of holistic approach. Equally important are reduction of environmental threats, environmental pollution and adoption of environment friendly clean and green technologies to mitigate local to global level environmental problems such as biodiversity loss, climate change from an inter – generational equity perspective. – generational

Economic sustainability : This provides basically important energy source like a “battery” to secure environmental and social sustainability. This emphasizes on promotion of economic self-sustenance of development projects through measures like adequate budgeting, budget transparency and financial incentive. The focus area includes; alleviation of poverty, increase in per capita income, promotion of income generating activities including off farm employment and green micro-enterprises, establishment of mechanism of fair sharing of benefit and natural resource accounting.

Social sustainability: sustainability: This focuses on upgrading human environmental quality of life with fulfillment of basic needs and transforming human from most dangerous animal to most important creative resource. It emphasizes local communities be well informed on tips of sustainable ways of resource utilization. Ensure active public participation at various level of development activity as well as fair sharing of responsibility of benefit as user groups. . Collaborative effort in conservation and development activities, improvement in public health, education and basic need, reduction of conflict among stakeholders on resource use. This will be derived through upgrading public environmental awareness. Enhanced gender equity and self-confidence among local community with an emphasis on economically disadvantaged/marginalized groups.

3


Institutional sustainability: Plans and programs without action represent futile exercise. Strict implementation and monitoring of relevant environmental policies, plans, laws, regulations and standards is indispensable to attain the goal of sustainable development. There should be adequate skilled and motivated manpower and strong institutional capacity to address environmental and social sustainability. Focus area lies to achieve environmental quality of life such as reduced air, water soil, noise pollution to accepted level of international standard and public confidence to get involved in environmental conservation activities. Institutional strengthening of project management should be efficient to deal environmental problems having local, national, regional to global level significance and including legally binding world conventions and treaties. 1.2 INDUSTRY PROFILE

India is the 15th largest paper producer in the world and has emerged as the fastest growing market when it comes to consumption, posting 10.6% growth in per capita consumption of paper in 2009-10 and expected to touch 12% by 2012. It provides employment to nearly 1.5 million people and contributes INR25.0 billion to the government. The paper industry in India looks extremely positive as the demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light weight online coated paper, medical grade coated paper, etc., is growing up. Indian paper industry is expected to attract Rs 10,000 crore investments in three to five years for setting up green field projects as well as capacity expansion of the existing plants. Also, paper production in the country is likely to double to 22 million tonne in the next three years.

India produces many varieties of papers; under printing and writing paper are Cream wove paper, super printing paper, maplitho paper (non-surface and surface size), copier paper, bond paper and coating base paper and others. Varieties under packaging paper are kraft paper, boards, poster paper and others. The other varieties 4

Sustainable Development in ITC 2012-13 under coated paper are art paper/board, chromo and paper/board in which printing / writing paper accounts for 30.6% or 85 million tonnes. In general, per captia consumption of printing/ writing paper is high in developed countries and so is the percentage of printing / writing paper consumption of the total paper and paperboard consumption (about 27-41% in developed countries, but only 5% in India). Consumption of paper in India is set to double from the current 7 million tonnes per annum in the next eight years, according to Indian Paper Manufacturers Association.

Paper in India is made from 40 per cent of hardwood and bamboo fibre, 30 per cent from agro waste and 30 per cent from recycled fibre. Newsprint and publication paper account for 2 million tonnes, of which 1.2 million tonnes of newsprint paper is manufactured in India and the remaining 0.8 million tonne is imported.

India’s Paper/Pulp Export and Import: India imports about two million tonnes of pulp (soft wood and hardwood) and waste paper (sack waste for unbleached grades, envelopes waste, cup stock for white grades and magazine waste) for newsprint.

The following prime grades of paper are imported from USA, Europe, Dubai and Singapore: label stock, wet strength papers, tea bag tissue, soft tissue, filter paper, insulation kraft, extensible kraft, decorative laminates, overlay tissue, thermal papers, digital papers, coated papers/boards and some specialities. Stock lots of all grades totaling about 200,000 tonnes arrive every year mostly from USA and Europe. These are imported by traders in major metro cities of Mumbai, Chennai, Cochin, Bengaluru and Delhi.

India has surplus to export some grades. It exports following grades of papers to Middle East, South Eastern countries, Eastern Europe and USA: A4 copiers, wood-free (mostly from bamboo and agro waste by several small mills), MG varieties (from small agro based mills), coated duplex (mostly recycled fibre) and large quantity of converted products like stationery items, calendars, books, magazines, children‟s play books and comics.

5


Paper and Paperboard - Production in India: India is self-sufficient in manufacture of most varieties of paper and paperboards. Import is mainly related to certain specialty papers such as light weight coated variety of paper, cheque paper, etc Due to the scarcity of raw material, the companies also need to rely on imported wood pulp and waste paper. In last 5 years, capacity was increased mainly through expansion and modernization of the existing facilities rather than setting up Greenfield projects. The per capita consumption of paper in India is very low i.e. 7 Kgs in 2006, as compared to an average consumption of 28 Kgs and 58 Kgs in Asia and world respectively. The per capita consumption is expected to increase to 12 Kgs by 2020.The domestic paper market is dominated by large players owing to their size, brand value and financial strength. In 2008-09, the top 10 players control around 60% of the market in term of capacity.

Paper & Paperboard - Production and Consumption:

Various macro-economic factors like national economic growth, industrial production, promotional expenditure, population growth and the government‟s

allocations for the educational sector influence the demand for paper. The growth in paper consumption is directly related to GDP growth in the country. With expected GDP growth of 9-9.5%, the demand for Newsprint and Writing & Printing Paper is expected to grow at the same rate. Continued availability of raw materials would be a big challenge for the industry in the next 5-10 years. According to the Indian Pulp and Paper Technical Association (IPPTA), the paper industry is expected to fall short of demand by 1.1 million tonnes by 2010-11 due to raw material constraints. According to ITC‟s estimation, the total demand for paper is around 8.0 million tonnes and is expected to grow to 10.0 million tonnes by 2012 and 21.0 million tonnes by 2020.According to Indian Paper Manufacturers Association (IPMA), consumption of paper in India is set to double from the current 7.0 million tonnes per annum by 2015. 6


The main waste paper grades available for recycling are:

Table 1.1: List of Wastepaper grades Waste Paper Grade

Percentage %

Old corrugated containers

40%

Office refuses

20%

Old newspapers and magazines

20%

Mixed paper

20%

Outsourcing Opportunities : According to Indian Printing, Packaging and Allied Machinery Manufacturers‟ Association (IPAMA) estimates, the printing industry in India

provides employment to 1.3 million people and consists of more than 130,000 presses. According to Pira International study (2007), the Indian printing industry would grew at more than 70% by 2011. Paper production is likely to grow at a CAGR of 8.4% while paper consumption will grow at a CAGR of 9% till 2012-13.

Growth Drivers- Paperboard: 

Overall economic growth



High growth in industries -

Pharma

-

Apparels

-

Food

-

FMCG



Organized retail



Communication: mobile phone cards



Liquid packaging, disposable paper cups



Boom in construction industry

Capacity addition: 7




Paperboard capacity -

Addition announced 2 lac tpa, mostly in lower end recycled boards.

-

May create excess capacity in the short term

-

Medium term projections demand will continue to be above supplies

1.3PROBLEM IDENTIFICATION: 

To study about the ITC „S emission of Carbon Content, air, treated water against the Standard limits and ITC‟s contribution towards the development of the society.

1.4 IMPORTANCE OF THE STUDY: 

To know the functions of the various departments in ITC and their performance.



To know the Various Contribution of HR department towards the Organization effectiveness.

1.5 OBJECTIVES :

The main objective of the study is as follows:



To identify the Parameters considered by the ITC for their Sustainable Development.



To know about the Various HR practices in ITC.



To know about the ISO Standards of ITC limited.

1.6 LIMITATIONS: 

The support from the organization was limited for the collection of information.

8


CHAPTER-II ORGANIZATION STUDY

2.1 INTRODUCTION ABOUT ITC

ITC was incorporated on August 24, 1910 under the name of Imperial Tobacco Company of India Limited. As the company‟s ownership progressively

Indianised, the name of the company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C limited in 1974. The full stops in the company‟s name were removed on

September18, 2001. The company concentrated on Leaf Tobacco and Cigarettes business for the first six decades. In the seventies, due to the corporate transformation, momentous changes have taken place in ITC. The corporate office is located in Kolkatta and the PSPD units are located in four places which are, the Bhadrachalam Unit, the Tribeni unit, Bollaram and the Kovai unit. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of Greeting cards. A line of premium range of notebooks under the brand “ PAPERKRAFT ” was launched in 2002. To augment its

offering and to reach a wider student population, the popular range of notebooks was launched under the brand “Classmate” in 2003. “ CLASSMATE” over the years has grown to become India‟s largest notebook brand and has also increased its portfolio

to occupy a greater share of the school bag. Years 2007 – 2009 saw the launch of Children books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India‟s first environment friendly premium business paper under the “Paperkraft” brand. “Paperkraft” offers a diverse

portfolio in the premium executive stationery and office consumable segment. “Paperkraft” entered new categories in the office consumable segment with the

launch of text liners, permanent ink markers and white board markers in 2009. 9


VISION Sustain ITC‟s position as one of India‟s most valuable corporations through

world class performance, creating growing value for the Indian economy and the company‟s share holders.

MISSION To enhance the wealth generating capability of the enterprise in a globalizing environment and delivering superior and sustainable stock holder value.

2.2 ITC KOVAI UNIT:

In 2004, ITC Ltd acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, TamilNadu. The Kovai unit allows ITC Ltd to improve customer service

This plant is located at Thekkampatty village, 15 kms away from Karamadai, near Coimbatore. This plant was started by SERVALL in 1994, was undertaken by BIPCO in 1999 and finally ITC took over in 2004.

Table 2.1- Range of Boards Manufactured by ITC

S.NO

1.

GRADE

Coated Board Grey

PRODUCTS

GSM RANGE

Double Coated Grey Back

230 – 390

Coated Board White

Double Coated White

240 – 390

Back

Back

Coated Match Shell

Single Coated

270 – 300

Uncoated

250 – 300

Back 2.

3.

Board 4.

Duplex Board Grey Back

10


2.3 ORGANISATIONAL STRUCTURE

The organisational structure of ITC PSPD UNIT, KOVAI is a process based organisational structure with a LEAN MANUFACTURING Initiative Structure. This system is to maximize the value added by eliminating the Wastes of the organisation‟s activity. ITC is considered to meet the challenges of the competing

global market. It also follows the pull method meaning the production is based on the customer‟s order only.

STRUCTURE: DIVISIONAL STEERING BOARD

UNIT STEERING BOARD

PILLARS

AREA EFFECTIVENESS TEAM & SERVICE EFFECTIVENESS TEAM

PROCESS & ASSET CARE TEAM (PACT)

2.3.1 FUNCTIONS:

Divisional steering board: This board organizes and takes control of the divisions

of ITC. The Executive Director is the HEAD of the Divisional boards. Unit steering board : The unit steering board is the controlling body for the

individual units. The board consists of the Unit Head and the Functional Heads who are collectively called the Unit Steering Board committee. Pillars: The pillars team will develop processes and systems. It also checks the lean

manufacturing systems. There are five pillars and the pillar Heads are the Functional heads. The five pillars are the: 11

Sustainable Development in ITC 2012-13 1. Human Resource Pillar/ Education & Training Pillar (HR) 2. Environmental Health & Safety Pillar (EHS) 3. Planned Maintenance Pillar (PM) 4. Quality Pillar 5. Process & Asset Care Team Pillar (PACT) One member each from the AET and the SET will be a member of each pillar. The member of the pillar will be the coach for the PACT team. The leader of the pillar team will be the Functional Head. The pillars meet once in a week and discuss on various issues. For example, the HR Pillar takes care of the modules preparation, training conditions, internal and external faculties and many others. Area Effectiveness Team & Service Effectiveness Team: The AET‟s are production based teams and daily management teams whereas the SET‟s are service based teams. There are four AET‟s and six SET‟s.

The AET‟s are:

1. Utility 2. Stock preparation 3. Board machine 4. Finishing house The SET‟s are:

1. Quality SET 2. Engineering SET 3. Finance SET 4. Materials SET 5. Personal and Admin SET 6. Outside sheeting (OSS) SET The AET‟s are cross functional teams. It consists of about 6 – 7 members and a

Leader. The members include Process Specialists and Engineering Specialists in fields of electrical, mechanical and instrumentation. The AET‟s meet for an hour

everyday and have its own targets and keen performance indicators (KPI) towards which they act as a team to attain it.

12


Process and Asset Care Team (PACT): There are 17 PACT teams, 5 in Board

Machine, 3 in stock preparation, 3 in utility, 1 in materials, 2 in finishing house, 1 in personal and admin and 2 in engineering. The Leader and the Deputy Leader are the Shift In charge. The employees are given ownership of individual equipments to

increase their sense of responsibility. The safety of the environment and the employees are considered very important in ITC. In case of abnormal machines, an abnormality tag is put on the machine. Yellow and red tags are put up which

indicate small problems that can be solved by the PACT members itself and those that require specialist checks, respectively. The CLTI Asset care (cleaning, lubrication, testing and inspection) mechanism is adopted.

2.4 AET

2.4.1 UTILITIES AET

The Utility unit consists of the Cogeneration Plant, the Ash Handling Systems, the Fuel Handling Systems and the Demineralisation Plant. CO-GENERTION PLANT The Co-generator plant is used mainly for two purposes: 

To generate power for running the PSPD unit



To generate steam for drying the pulp The output of the plant is about 8 MW which is suitable for running the plant.

The plant saves around Rs. 3 lakh by generating its own power every year. The power plant is thermal based and a boiler is used to generate the steam which in turn rotates the turbine resulting in power generation. The following units are a part of the co-generation plant. 

Boiler



Steam Turbine



Generator The different types of systems and components used in the power plant are as

follows:

13

Sustainable Development in ITC 2012-13 a) High pressure boiler b) Prime mover c) Condensers and cooling towers d) Fuel handling systems e) Ash and dust handling systems f) Draught systems g) Feed water purification systems h) Pumping systems i) Air preheater, economiser, super heater. The Fuel Handling System consists of the fuel which is used in the boiler to generate steam. The fuel is mostly coal and lignite. Composition is 50 % fossil fuel and 50 % bio fuel. The size of the granule is in the 6mm range for maximum fuel utilization. The fuel is delivered into the boiler by means of a conveyor belt.

DE-MINERALISATION PLANT De-mineralisation plant is solely for the purpose of softening the water adequately before sending the water into the boiler. Producing quality steam on demand depends on properly managed water treatment to control steam purity, deposits and corrosion. The boiler receives all of the pre-boiler contaminants. Boiler performance, efficiency and service life are direct products of good water treatment. Most of the components in the feed water are soluble. However, under heat and pressure particles sometimes come out as crystalline and amorphous forms. When the solubility of a specific component increases, scales or deposits develop. For avoiding these problems, the unit has a demineralisation plant. Demineralisation is the removal of salts which hinder the efficient operation of the boiler. This is achieved by using a ion exchange resin, which exchanges the cations in the raw water with hydrogen ions, producing hydrochloric, sulphuric and carbonic acid. Carbonic acid is removed in the degassing tower in which a ir is blown through the acid water. Following this, water passes through an anionic resin which exchanges anion with the mineral acid and forms water. Regeneration of cations and anions is necessary at intervals using mineral acid and caustic soda respectively

14

Sustainable Development in ITC 2012-13 The Ash Handling System takes care of the residue which is left over in the boiler. Electro static precipitator is used for removing the ash. The ash is stored in „Ash Silos‟ and then transported for making bricks.

The Boiler is the main component of the power plant. The boiler is an enclosed vessel that provides a means for combustion heat to be transferred into water until it becomes heated water or steam. The hot water or steam under pressure is then usable for transferring the heat to a process. Water is a useful and cheap medium for transferring heat to a process. When water is boiled into steam its volume increases about 1600 times. Heat is transferred from one body to another by means of 1) radiation, 2) conduction and 3) convection.

BOILER SPECIFICATION: MAKE

: Thermax Babcock & Wilcox

TYPE

: Atmospheric Fluidised Bed Combustion systems

RATING

: 60 TPH

STEAM PRESSURE

: 62 kg/cm^2

TEMPERATURE

: 480 ± 5˚C

FEED WATER INLET

: 150˚C

TEMPERATURE TYPE OF FUEL

: Agro waste & fossil fuels Agro waste – Saw dust, De oil bran Fossil fuels – Lignite (from NLC) Coal (from Indonesia)

START UP FUEL

: High Stack Diesel (HSD)

HEATING SURFACE

: 2887 m^3

BED COILS

: 108

ECONOMISER COILS

: 148

PRI. SUPER HEATERCOILS: 144 SEC. SUPER HEATER COIL: 48 AIR PRE HEATER COILS : 1175.

15

Sustainable Development in ITC 2012-13 The Steam Turbine is driven by the steam from the boiler. There are multiple stages of re-heaters before the steam reaches the turbine mainly for attaining the suitable temperature necessary for the turbine. The turbine‟s rpm is 7500.

The Generator converts the mechanical energy into electrical energy. The generator‟s rpm is 1500. The generator‟s rpm is synchronised with the elec trical lines

in order to transmit power.

2.4.2 STOCK PREPARATION AET

The Stock Preparation takes the waste paper as input and it is processed in the pulp form before being sent to the Board Machine. The whole division is controlled by a Distributed Control System (DCS). The waste papers consisting of old newspaper, discarded papers, used cartons, etc. is sent to the pulper by means of a conveyor. The waste paper is classified into two types based on its usage. The pre-consumer is the waste paper which has not been used by the consumer but discarded by the producer as it did not meet the requirements. The post-consumer is the waste paper which has been used by the consumer before being dumped for recycling. The paperboard consists of three layers – white back, filler and grey back.



White back – Made up of mainly plain white waste papers which have no markings



Filler – Made up of all types of waste papers



Grey back – Made up of lower grade waste papers

There are three types of pulper. Each pulper is for a specific kind of layer. One pulper is used for the white back while other two pulpers are used for the filler layer and grey back layer. The water from the river is used for the pulping process. It is treated before being sent into the pulper. The pulper crushes the waste paper into pulp by means of a rotator with a specific speed controlled by the DCS. The crushed pulp has many unnecessary materials like plastics, sand, etc. So the pulp is sent to the coarse screen which removes the bigger particles which cannot be converted to paperboard. The particles are sent for re-processing where some of 16

Sustainable Development in ITC 2012-13 the pulp fibers are again removed from the particles for using in paperboard production. The fine screener is then used to remove the finer particles like small plastic granules. The screened pulp contains printing ink which is unsuitable for the paperboard production. Hence the ink is removed by a process called „de -inking‟. A

De-inking process is used for removing the ink from the pulp. Surfactants are added to the pulp in the de-inker and the mixture is churned. Froth is formed on the top of the mixture which contains the ink. The froth is removed by means of a valve on the top. The pulp is sent to the centri-cleaning after the ink is removed. The centricleaner removes the residual dirt which is left in the pulp after the de-inking process. The pulp is then sent to the disc filter which increases the consistency of the pulp. The pulp is much diluted and cannot be directly used for drying. Hence for increasing the concentration of the pulp, the disc filter is used. A disc constantly rotates and increases the concentration of pulp fiber. It also removes excess water. The disperser is then used to disperse the pulp evenly in the solution.

2.4.3 BOARD MACHINE AET

The board machine converts the pulp into paper form by drying. A total of 9 dryers are used in sequence for drying the pulp at various points in the board machine. Wires are used for the formation of board. There are three wires. 

Filler wire



Top wire



Base wire The pulp is combined from the three wires and in the first step natural

vacuum is used for dewatering. Forced vacuum is then used to remove the water content. The pulp still contains some amount of moisture which is removed by pressection. The pulp is visibly dry after the Pressure process. Driers 1,2,3,4 and 5 contain steam at increasing levels. The Board is passed through the driers and moisture is removed. The Board is then passed through the machine glossing unit which smoothens the paperboard by rolling it over a specific surface. Again the paperboard is sent through driers 6 and 7 to remove residual moisture. Starch is 17

Sustainable Development in ITC 2012-13 added to increase the firmness of the paperboard and prevent it from curling at the edges. Driers 8 and 9 are used to remove the moisture caused by the starch addition. The paperboard is then passed through a machine known as calendar. The calendar is used to smoothen out peaks and valleys on the surface of the paperboard on a micro level. The surface can be altered according to the requirements by using the calendar.

A two stage coating process is used for coating the paperboard. The paperboard passes through three coating tunnels for coating. The first tunnel contains four fans, the second tunnel contains four fans and the third tunnel contains eight fans. The paperboard is then sent to the rewinder which winds it into reels. The reels are then sent to the finishing room for further processing.

2.4.4 FINISHING HOUSE AET

The reels are brought to the conveyors by means of a li ft and a conveyor. The reels are either directly sent to the customers or cut into sheets and then sent to the customers as per the requirements. The reels which are directly sent to the customers are wrapped in cover by reel wrap machine. The reel wrap machine contains hydraulic pump, lift, guide, crimper and sealer which aid in wrapping the reel. The pump operates the machine and the lift propels the reel to main work area. The guide then pushes the reel onto a board where the reel is wrapped by a packing cover. The crimper then presses the cover against the reel. The sealer contains two metal discs which are heated. The crimped reel is placed exactly between the two metal discs. A plastic based adhesive cover is placed on the two metal discs each. The two discs are then brought together and the reel is sealed. The packaged reel is then sent to the storage area from where they are transported to the companies. The sheets are cut from the reel by two imported machine cutters – Pasaban and Jagenberg. The entire process is automated and only the metrics are set and monitored. The sheets are sold to customers in three forms – Bulk, Bundle and Reams Pallet.



Bulk – The sheets are placed on a pallet and the entire thing is packaged



Bundle – The sheets are packaged as bundles and placed on the pallet 18

Sustainable Development in ITC 2012-13 

Reams Pallet – The sheets are split into reams and then placed on the pallet and packaged. It is a mixture of bulk and bundle. The sheets are also manually cut by the floor workers using machines. The

GSM (Grams per Square Metre) of the paperboard manufactured is 230 – 400. Lamination is done to achieve 1860 GSM by combining 5 paperboards. The sheets are glued together by glue pumped from the glue motor which provide uniform application of glue onto the paperboards.

2.5 SET 2.5.1 QUALITY SET

The Quality SET ensures that the standard specifications are followed. The paperboard is accepted or rejected based on its quality. The quality SET samples the pulp at various stages and gives appropriate feedback. The quality parameters are tested from the jumbo, where the paperboard is rolled into reels before being sent to the finishing house.

All the customer complaints are dealt by the Quality SET. The relevant complaints are first sorted out and then they are discussed with the production team. The root cause of the problem is found out and then it is rectified. The Quality SET is also involved in product improvement and product modification. First, the trials are conducted and then the procedure is documented before the product is manufactured. The Quality SET has two labs for finding out the quality conformance of the product during the intermediate and final stages. The labs are dry lab and wet lab.

2.5.2 FINANCE SET

The Finance SET deals with the monetary details of the PSPD unit. The categories mainly dealt in the Finance SET are, 

Wage Processing



Bills Payable



Costing



Budget and 19


Taxation In wage processing, the payroll is processed by means of process masters

which contain the details of the employees like joining date, designation, date of birth, etc. These details are provided by the HR department. The salary is calculated for each worker using number of working days procured form the Time Office.

The production incentive is based on monthly production and quantity. The incentives offered are separate form salary. The wages are processed and then Cheques are made which are deposited in the bank. The bank then distributes salary to the employees. The Finance SET also deals with cash bank, insurance for equipment, new asset purchase (machine), capitalisation, bill verification and book closing for every month. The Bills Payable includes bill for materials, waste paper, chemicals involved in processing, boiler fuel, general store and ensuring that bills are paid before due date. The document prepared form the bills payable section is used in the Cheque preparation. The Costing section deals with the daily contribution report, daily production cost, variance analysis with respect to the plan, monthly estimate, reporting of actual profit after book closure. The annual plan is formulated for 5 years by taking into account forecasting and the NSR (Net Sales Realization Rate). The Budgeting section deals with allocation of money for the functioning of the PSPD unit. Budgeting is done at the unit level with the approval from the DMC and the CMC. The Taxation is of two types – direct and indirect. The indirect tax includes the central excise sales tax and monthly return along with customs and service tax. The direct tax includes the income tax which is controlled by the head office and sometimes by the unit. The TDS scheme (Tax Deducted Source) is employed in PSPD unit wherein the employees receive their salary after the deduction of income tax.

2.5.3 MATERIALS SET

The Materials SET deals with the purchase of materials, stores management and waste paper yard.

20

Sustainable Development in ITC 2012-13 2.5.4 ENGINEERING SET

The Engineering SET includes engineers from various specializations such as mechanical, electrical and instrumentation. Each engineer offers his services to the AET. The teams are basically cross functional and all the engineers are required to be well versed in other specializations as it helps in better understanding of the functioning of each processing stage. In addition, a problem can be sort out quite easily if the teams are cross-functional. 2.5.5 PERSONAL & ADMINISTRATION SET

The Personal and Administration SET is involved with the administration of various AETs as well as the employees who work in the AETs.

2.6 FUNCTIONS OF HR

2.6.1 GENERAL ADMINISTRATION Transport facilities are provided for the employees as the company is situated in a rural area. There are a total of 4 buses. Two buses are for the contract employees and two buses are for the managers and employees. As per the need, local workers are picked by van. There is a separate Organization Health Centre with Doctor/Staff Nurse were present 24/7 on a shift basis. There is also an ambulance for transporting the injured Person.

2.6.2 EMPLOYEE RECRUITMENT

The new recruitments are made whenever a vacancy arises. The recruitment will be arranged after consulting with the unit head. The permanent employees are recruited as per the requirement in personnel after a requisition form is approved by the unit head. All recruitments are based on the qualification and the skill requirement.

The sources of information for the recruitment are office files, employment exchange, recruitment agencies, newspapers and open interviews. The HR department has to publish advertisements for the open interviews. The appointment 21

Sustainable Development in ITC 2012-13 is based on the profile and performance in the interviews and written test. The HOD s evaluate the performance of the newly appointed employees after completion of training period. They are then recommended for their designation. The records are maintained by the HR department which contains all the details of the employees.

2.6.3 EMPLOYEE TRAINING Employee training in ITC-PSPD is about 18 man hours for every employee per year. A detailed training report is maintained which contains the date of the training, the topic undertaken, feedbacks from the employee, etc. Managers training are formulated after the performance appraisal. The improvement areas for each manager are identified and then a training programme is planned. The training varies with respect to the job position and the skill sets required for the job. The training programmes of all employees constitute the training calendar.

There is a standard procedure for personnel management process. The purpose of the personnel management process is to bridge the skill gap between the required and existing skill set of the employee or the manager. The scope includes personnel management function and in house and external training. The process owner is the Head HR.

Fig: 2.1- Workflow of Personnel Management Process

Competency required, inventory of skills, performance appraisal reports and request for training

HR, Faculty, Training Hall and Tools

The flowchart of the procedure is given below 22

Knowledge dissemination, skill upgradation, attitudinal changes and training records


1 2 3 4 5 6 7 8 9 10

• Training calendar preparation • Budget preparation for training • Approval of budget • Organising the training programme • Evaluation of training programme • Preparation of job profile and job responsibilities • Preparation of competencies required for efficient performance

employees • Preparing inventories of skills/competencies of existing employees and managers • Identification of competency gaps

Identifying training needs person-wise to bridge gaps • Identifying The operating procedure consists of skill matrix, identification of training

needs, training calendar programme, imparting training, assessment of effectiveness and new recruitments.

The skill matrix is for determining the skill and competency required. It forms the basis for the preparation. The preparation should be in compliance with the activities and there should be no deviation. In identifying the training needs, the department heads have to identify the strength and weakness of the department employees. The needs identification should be done by the Head HR. based on the company objectives, production quality and customer requirements. The training need identification form is used for filling in the necessary details. The training programme is based on the knowledge building, awareness creation and attitude development.

The Head HR is in charge of the training schedule for the calendar year. The communication is received from the DHQ regarding the training programme. The 23

Sustainable Development in ITC 2012-13 Head HR then communicates about the training programme to the heads of each department. The training programme is governed by management regulations. Care is also taken to see that the training also caters to the needs of the employees.

The training is imparted either internally or externally. In case of the internal training, it is done by experts, officers and seniors. The facilities are arranged by the officer of the personnel department. The training attendance is recorded for documentation. After the imparting of the training, the training effectiveness is gauged by getting feedback from employees during the training and after the training. It is evaluated by HODs after 2 months of the completion of the programme. The techniques employed depend on the subject, participants‟ level of qualification and the trainer‟s recommendation. The training effectiveness feedback

report is given to the HR department by the HODs.

2.6.4 STANDARD OPERATING PROCEDURES The standard operating procedures are a set of rules which are followed for certain functions in a particular unit. The SOPs are reviewed once in two years and if compliance is not present then escalation is done. The ITC-PSPD Kovai unit has a set of 20 SOPs which are followed in the unit. They are,



Recruitment of company apprentice trainees



Recruitment of permanent employees



Recruitment of Badli



Procedure & Guidelines for Badli employment



Contract Labour Administration



Emergency Advance/Wages Advance to employees



Security Operation



Lorry Yard & Weighbridge Operation



Statutory Health Centre/Ambulance Room



Procedure for VDA Payment



Canteen Operation 24


Canteen Token Administration



Procedure for Re-imbursement of Medical Benefits pertaining to workmen not covered under ESI Act



Availing Transit House Accommodation & Other facilities



Land Administration



Unit Level Social Welfare & Community Development D evelopment Activities



Security Operation at Outside Godowns



Procedure for permitting Visiting Managers and Other Visitors

2.6.5 TIME OFFICE The time office administration mainly deals with employees‟ and managers

attendance capturing, payroll process, welfare facilities, distribution of food, snack and tea tokens, statutory records and returns, canteen administration and industrial relation. The PSPD unit runs on a continuous basis and there are a total of three shifts, namely 

Shift A – 6 a.m. to 2 p.m.



Shift B – 2 p.m. to 10 p.m.



Shift C – 10 p.m. to 6 p.m.

Besides these shifts there is a general shift which operates from 8.30 a.m. to 5.30 p.m. There are three types of employees in the unit. They are permanent employees, Apprentice/Trainees and Badli. The Badlis are workers who are used as replacement for workers who are absent. They have about 18 working days per month.

Each employee is provided with a time card for every month for marking their attendance. There is also a punch card coupled with a fingerprint scanning system for capturing the attendance. The employee punches the card on his way in and punches the card on his way out. The attendance from the punch card/ scanning is compared to the time card and then the final attendance is marked in the register. 25

Sustainable Development in ITC 2012-13 Form 25(A&B) is used for recording leaves and calculating the number of working days for each employee.

The time card is colour coded for each employee. The permanent employees have a green colour card, the Apprentice/Trainees have a yellow card and the Badlis have a red colour card. Each shift is marked in the attendance register by means of colour coding. In addition to the attendance taken by the time office, shop floor attendance also taken and then sent to time office for confirmation. The department arrives at the time office 2 hours after start of a shift.

The types of leave vary according to the usage.



Casual Leave – It is 10 days per year and cannot be carried over to next year.



Earn leave – The Earn leave will be calculated based on total attendance (presence of 240 days in a year).



Sick Leave – The sick leaves are for non-ESI employees. It is 7 days per year. About 30 days can be retained with respect to sick leaves.

ESI is provided for employees who have a salary of Rs. 15,000 or less. The family of the employee is also entitled to free medical treatment. There is also compensation for dismemberment. The contribution fund comprises of 1.75 % from employee and 4.75 % from employer. Hence a total of 6.5 % is contributed to the ESI. The provident fund is mainly for the pension of the employee and it is 12 % of the monthly salary. The salary day or payday is 7 th of every month. The workers get their salary either in cash or can use the ATM to acquire the cash. The bank sends a representative who distributes the cash. The employee can procure his salary at the start of his shift or at the end of his shift.

Statutory Acts like Factory Act, Workman compensation Act, Labour Welfare Act, etc. are strictly adhered to, in the organisation.

2.7 AWARDS:

26


2.7.1 Operations & Energy: 

The British Safety Council's Five Star Health and Safety Award to Kovai Unit in 2007, 2008, 2010 and 2011.



The British Safety Council also awarded unit Kovai the International Safety Award with Distinction in 2011. These awards are given for excellence in Health & Safety management .



Unit Kovai was declared as the Excellent Water Efficient Unit under National Award for Excellence in Water Management 2011 for the fourth

time. 2.7.2 Environment:



In 2011, the British Safety Council, London conferred the Globe of Honour Award for best Environment Prevention and Protection to Kovai Unit.

Kovai unit achieved 5 star rating in Environment Audit. 

In 2010, “Excellent in Energy Management” -CII National award for

Excellence in Energy Management. 

In 2010, “National Energy Conservation Award” -Bureau of Energy

Efficiency 2.7.3 Others: 

ITC became the first Indian company to gain membership with WWF GFTN for responsible forestry



ITC PSPD kovai unit were FSC-CoC (Forest Stewardship CouncilChain of Custody) certified enabling it to provide a diverse range of

paperboards/paper with FSC certificate which is a gold standard in wood certification for ethical and legal sourcing.

27


CHAPTER- III REVIEW OF LITERATURE

The Central Pollution Control Board (CPCB) 1 in 2006 under the title “Corporate Responsibili ty for Environment Protection” , statutory organisation,

was constituted in September, 1974 under the Water (Prevention and Control of Pollution) Act, 1974. Further, CPCB was entrusted with the powers and functions under the Air (Prevention and Control of Pollution) Act, 1981.

It serves as a field formation and also provides technical services to the Ministry of Environment and Forests of the provisions of the Environment (Protection) Act, 1986. Principal Functions of the CPCB, as spelt out in the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981, (i) to promote cleanliness of streams and wells in different areas of the States by prevention, control and abatement of water pollution, and (ii) to improve the quality of air and to prevent, control or abate air pollution in the country.

Air Quality Monitoring is an important part of the air quality management.

The National Air Monitoring Programme (NAMP) has been established with objectives to determine the present air quality status and trends and to control and regulate pollution from industries and other source to meet the air quality standards. It also provides background air quality data needed for industrial sitting and towns planning.

Besides this, CPCB has an automatic monitoring station at ITO Intersection in New Delhi. At this station Resirable Suspended Particulate Matter (RSPM), Carbon Monoxide (CO), Ozone (O3), Sulphur Dioxide (SO2), Nitrogen Dioxide (NO2) and Suspended Particulate Matter (SPM) are being monitored regularly. This information on Air Quality at ITO is updated every week. 1

http://cpcb.nic.in/Water_Quality_Criteria.php

28

Sustainable Development in ITC 2012-13 Fresh water is a finite resource essential for use in agriculture, industry, propagation of wildlife & fisheries and for human existence. India is a riverine country. It has 14 major rivers, 44 medium rivers and 55 minor rivers besides numerous lakes, ponds and wells which are used as primary source of drinking water even without treatment. Most of the rivers being fed by monsoon rains, which is limited to only three months of the year, run dry throughout the rest of the year often carrying wastewater discharges from industries or cities/towns endangering the quality of our scarce water resources. The parliament of India in its wisdom enacted the Water (Prevention and Control of Pollution) Act, 1974 with a view to maintaining and restoring wholesomeness of our water bodies. One of the mandates of CPCB is to collect, collate and disseminate technical and statistical data relating to water pollution. Hence, Water Quality Monitoring (WQM) and Surveillance are of utmost importance.

Table 3.1: Water Criteria Designated-Best-Use

Class

Criteria

of water

Drinking

Water Source

without

conventional

treatment

but

A



Total

Coliforms

Organism

MPN/100ml shall be 50 or less

after

disinfection



pH between 6.5 and 8.5



Dissolved Oxygen 6mg/l or more



Biochemical Oxygen Demand 5 days 20°C 2mg/l or less

Outdoor

bathing

B



(Organised)

Total

Coliforms

Organism

MPN/100ml shall be 500 or less pH between 6.5 and 8.5 Dissolved Oxygen 5mg/l or more 

Biochemical Oxygen Demand 5 days 20°C 3mg/l or less

29

Sustainable Development in ITC 2012-13 Drinking water source after

C

Total



Coliforms

Organism

conventional treatment and

MPN/100ml shall be 5000 or less pH

disinfection

between 6 to 9 Dissolved Oxygen 4mg/l or more Biochemical Oxygen Demand 5 days



20°C 3mg/l or less Propagation of Wild life

D

pH between 6.5 to 8.5 Dissolved



and Fisheries

Oxygen 4mg/l or more Free Ammonia (as N) 1.2 mg/l or less



Irrigation,

Industrial

E

Cooling, Controlled Waste



pH between 6.0 to 8.5



Electrical

disposal

Conductivity

at

25°C

micro mhos/cm Max.2250 

Sodium absorption Ratio Max. 26

Boron Max. 2mg/l

Title: Recycled Materials Supply 40% of the Global Raw Material Needs Bureau of International of Recycling (BIR) 2 in 2011, under the title ”Corporate Responsibility for Environment Protection” Proposed a report that

approximately there are 1.6 million people worldwide are active in the recycling industry. Together, they handle more than 600 million tonnes of recyclables every year. With an annual turnover of more than $200 billion, similar to the GDP of countries such as Portugal, Colombia and Malaysia, the sector has already become a key driver for tomorrow‟s sustainable development. About 10% of this amount is

spent on new technologies, research and development that contribute to creating high-skilled jobs and making recycling more efficient and environmentally sound.

2

http://www.bir.org/industry/paper/

30

Sustainable Development in ITC 2012-13 The recycling industry has become an integral part of modern society not only due to its social and economic impact but also because it plays a vital role for the future of our planet. The use of recycled materials directly translates into fewer natural resources being used and considerably less energy being consumed when compared to production processes using virgin materials. Table 3.2: Energy savings through Recycling

Energy Savings Aluminium > 95% Copper

> 85%

Plastic

> 80%

Paper

> 65%

Steel

> 74%

Zinc

> 60%

Lead

> 65%

Source: BIR Study on the Environmental Benefits of Recycling, 2009

Global Trade In recent years, many developed and developing countries have introduced specific recycling and environmental performance targets aimed at encouraging people to recycle. The industrial demand for recycled commodities is truly global. International trade in recycled materials plays a pivotal role in supplying the world‟s

mills and factories and is instrumental in increasing the benefits offered by the industry. BIR has always advocated the free flow of recycled materials and actively monitors potential threats posed by trade restrictions and other protectionist measures.

Recycled Materials are Not Waste Attempts by some legislators to categorise and regulate recyclables as „waste‟ have been particularly detrimental for the international recycling industry. BIR and 31

Sustainable Development in ITC 2012-13 its member associations campaign extensively before the UN, OECD and other supranational bodies to remove the „waste‟ label from the p roducts generated by the

recycling industry.

Design to Recycle The high level of complexity achieved in product design incorporates a wide array of materials and components, which increases the cost of recycling. In certain cases, it makes recycling almost impossible and commercially non-viable. The recycling industry is working on new solutions to tackle design complexity and BIR consistently campaigns for recycling to be taken into consideration at the earliest stages of product development.

Changing Consumers' Perceptions Many consumers are still reluctant to buy certain items containing recycled materials. However, goods manufactured with recycled materials have to meet the same quality standards as those produced using virgin materials. BIR members contribute to providing accurate information on the optimal reliability and performance of recycled materials.

Materials Made from vegetable fibres called cellulose, paper as we know it today was first created in China more than two centuries ago. Since the advent of the printing press in the 15 th century , its use has spread across all continents to the extent that, currently, it is hard to imagine the world without this versatile material. More than 400 million tonnes of paper and cardboard are produced worldwide every year, with more than half coming from recovered sources. Approximately 50% of recovered paper comes from industry and business. This includes paper trimmings, cuttings and shavings from manufacturers and converters, as well as goods discarded before they reach the consumer, such as unsold newspapers and magazines. Well over a third of recovered paper comes from households. Almost any used paper can be recycled, including newspaper, 32

Sustainable Development in ITC 2012-13 cardboard, packaging, stationery, direct mail, magazines, catalogues, greeting cards and wrapping paper. Recycling used paper and cardboard has significant advantages over other disposal options - namely landfill and incineration. It is imperative to stimulate the demand for products containing high levels of recycled fibre because of their environmental benefits. The work carried out by BIR has been instrumental in encouraging the development of new markets for recovered paper.

Applications Recovered paper can be used to make new products composed entirely of recovered fibre or a blend of recovered and virgin fibres. The most common applications for recovered paper include newsprint, containers and tissue. Some products commonly manufactured using recycled materials are:

o

Cereal boxes

o

Egg cartons

o

Pencil barrels

o

Grocery bags

o

Cellulose insulation materials

Recycling Facts o

Recycling one tonne of paper saves up to 31 trees, 4,000 kWh of energy, 1.7 barrels (270 litres) of oil, 10.2 million Btu's of energy, 26,000 litres of water and 3.5 cubic metres of landfill space.

o

Burning that same tonne of paper would generate about 750 kilograms of carbon dioxide.

o

Recycling paper saves 65% of the energy needed to make new paper and also reduces water pollution by 35% and air pollution by 74%.

o

Recycling one tonne of corrugated containers saves 390 kWh of energy, 1.1 barrels (176 litres) of oil, 6.6 million Btu's of energy, and 5 cubic metres of landfill.

33


o

Recycling cardboard requires only 75% of the energy required to make new cardboard.

Energy Requirements and Carbon Footprint for Paper Production

The global average energy requirements for the production of 1 tonne of paper has been reported as 10.8GJ of thermal energy and 4.5GJ of electrical energy, and it has been claimed that primary production requires 40% more energy than secondary production, but more fossil fuels are required to make secondary paper. It has also been reported that to produce paper from wood and then recycle it back into paper requires 22-53MJ/kg, excluding transportation.

34


CHAPTER-IV RESEARCH METHDOLOGY

4.1 Research Design:

Research design is a specification of procedure for scientifically collecting and analyzing the information required for the solution of specific problem it provides a systematic research on the specific topic. It enables to draft a clear-cut frame work of varied and integrated process in a sequential manner, further to systematize the procedure at view.

Exploratory Research: The information regarding the sustainable development of ITC was collected from the utility department experts in ITC PSPD kovai unit and the study is conducted. 4.2 Sources of Data

The research can be done with primary data or secondary data or both. Secondary data are the information that already exists, where the primary data are those the data is collected first handed by the researcher. The type of data analyzed in the study is primary data. 4.2.1 Primary Data:

The Primary data is collected from the Organization about the last five years regarding to the emission of Carbon monoxide, fresh water intake and effluent discharge. 4.2.2 Secondary Data:

The Secondary data is collected from the internet from the Sustainable report of ITC, their HR practices and their standards regarding to their awards.

35


CHAPTER- V SUSTAINABLE DEVELOPMENT

5.1

Kovai unit ITC Kovai unit is ISO 9001; ISO 14001 and OHSAS 18001 certified and

meet strict Environment, Health and Safety norms. 

Carbon Positive



Water Positive



Solid Waste Recycling Positive

5.1.1 Carbon Positive (6

th

year in a row)

ITC has consolidated its „Carbon Positive‟ status over the years by adopting a

strategy of reducing specific energy consumption, increasing its renewable energy portfolio and large scale carbon sequestration through additional forestry activities on degraded wastelands.

In kovai unit, currently they reduce their Fossil Fuels usage and increased their Agro Fuels (40:60) to reduce the emissions of Carbon Intensity. The Agro Fuels (chip/sawdust and de-oiled bran) as boiler fuel in Kovai were sourced from local Suppliers.

ITC kovai unit had own land of 223 Acres and they had planted 1, 25,513 Species and Maintained to reduce the Carbon Emission. The standards are compared against the plant‟s standards and the air quality is surveyed. ITC made continuous

improvements in this area and ensured that emission levels not only comply with statutory norms but also achieve international benchmarks.

36


Fig: 5.1 Tree populations

Tree population 117018 120000

104082

100000

83680 72680

80000

Tree population

60000 40000 20000 0 Till 2008

Till 2009

Till 2010

Till 2011

This was achieved through adoption of cleaner technology/fuel and state of the air pollution control equipment. Table: 5.1 Levels of Co Emission in Kovai unit

Year

STANDARDS(PPM) ITC LEVELS (PPM)

10-11 2000

376

09-10 2000

423

5.1.2

Carbon

Credit A carbon credit is a generic term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent (CO 2) equivalent to one tonne of carbon dioxide. Carbon credits and carbon markets are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). One carbon credit is equal to one metric tonne of carbon dioxide, or in some markets, carbon dioxide equivalent gases. Carbon trading is an application of

37

Sustainable Development in ITC 2012-13 an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world. There are also many companies that sell carbon credits to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis. These carbons off setters purchase the credits from an investment fund or a carbon development company that has aggregated the credits from individual projects. Buyers and sellers can also use an exchange platform to trade, such as the Carbon Trade Exchange, which is like a stock exchange for carbon credits. The quality of the credits is based in part on the validation process and sophistication of the fund or development company that acted as the sponsor to the carbon project. This is reflected in their price; voluntary units typically have less value than the units sold through the rigorously validated Clean Development Mechanism.

ITC’s Carbon Credits: ITC‟s Paperboards and Specialty Papers Division, has been rated as the most

energy efficient Indian Paper & Paperboards manufacturer according to the Centre for Science & Environment Study, 2010. Specific energy consumption at the largest integrated Paper and Paperboards Unit at Bhadrachalam which accounted for 73.4 % of the total energy consumed across ITC in 2010-11, has marginally increased (around 1% over 2009-10 ) due to increase in production of pulp (reducing import of pulp) and value added products.

38


5.1.3 Water Positive (9

Th

Consecutive Year)

In 2010-11, ITC units withdrew 29.36 million Kilolitres (KL) of fresh water, (29.96 million KL in 2009-10), a reduction of 2% over the previous year, despite significant growth in almost all businesses. This was made possible only by a focused approach by all Units through water audits, benchmarking and adoption of leading practices to achieve the lowest possible specific water consumption (water required per unit of production).

ITC‟s approach to Water Management is as follows:

1. Water conservation Water audits, benchmarking and use of leading practices to achieve lowest possible specific water consumption (water per unit of product).

2. Zero effluent discharge Treating and progressing to achieve recycling of all wastewater.

3. Water positive footprint Enhance our water positive footprint through rainwater harvesting, both within our own Units and across different watershed areas.

4. Water availability Ensure supply of water of satisfactory quality to neighboring farmer communities during the non- monsoon period so as to provide an alternative option to rain-fed agriculture.

39


5.1.4 Water Conservation

Kovai Unit Table: 5.2- Water Conservation at kovai unit (KL/Tonne) Year

(KL/Tonne)

2010-11

13.97

2009-10

13.10

2008-09

15.31

2007-08

17.31

2006-07

21.01

33.5%reduction in specific fresh water intake over 2006-07



Consistent efforts towards implementing water conservation initiatives have yielded positive results in the Kovai Unit. Kovai has achieved substantial reduction of close to 33.5% in specific fresh water intake over the 2006-07 level, as illustrated above. This specific freshwater intake of 13.97 KL/tonne is better than the proposed benchmark standard of 19 KL/tonne by NPC, New Delhi in 2006 for this category

of Paper Mill.

5.2 Effluent Discharge Fig: 5.2 - Effluent discharge in kovai unit (mg/l)

300 250 250 200 Kovai unit

150

112

100

100 38

30

50 8 0

BOD

COD

TSS

40

National Standard limits

Sustainable Development in ITC 2012-13 Kovai unit in mg/l & figures rounded off to nearest digit

BOD -Biochemical Oxygen Demand COD -Chemical Oxygen Demand TSS

- Total Suspended Solids

Kovai Units is already well within norms (100 KL/tonne) of specific treated effluent discharge, as defined by Corporate Responsibility for Environmental Protection (CREP), a voluntary charter by the Ministry of Environment & Forests and Central Pollution Control Board.

5.3 Specific treated effluent discharge in ITC Paperboards & Specialty Papers Units (KL/TONNE)

The National Productivity Council‟s (NPC) report on 'Proposed standard for

Pulp and Paper Industries in India' recommends a benchmark standard of 50 KL /tonne for Integrated Pulp and Paper industry Fig: 5.3 Treated Effluent Discharge

12

10

11.3 9.6 8.1

8

2006-07

6.9

2007-08 6

2008-09 2009-2010

4

2010-2011 2 0 0 kovai unit

41


5.4 Solid Waste Recycling Positive The Kovai unit currently focuses entirely on recycled boards, servicing requirements for both greyback and whiteback recycled boards. This unit helps ITC to consume waste, and convert it into high quality paperboards for packaging and graphic applications. The consumption of waste by this unit helps ITC achieve "SolidWasteRecyclingpositive"status.

5.5 Wealth Out of Waste The Consumption of Waste will be progressed through WOW Programme. ITC's Wealth out of Waste is a recycling initiative that works towards spreading awareness about recycling, and encouraging people to segregate and dispose waste responsibly. WOW is an internationally recognized initiative by Bureau of International of Recycling. BIR is a worldwide international trade federation representing the world's recycling Industry, promoting recycling across the globe.

In this programme, WOW reaches out to schools, institutions and homes through its awareness building teams, about source segregation of waste. After a stipulated period of time, the WOW team goes back to collect the waste kept aside by schools/institutions/homes, and pays them for the recyclables collected. While many countries have advanced systems of waste collection and regulations on source segregation, awareness in India regarding recycling and its benefits is low. There are basically two types of waste:



Dry waste



Wet waste

About 40% of the dry Waste can be recycled while wet waste can be converted in to compost and can be used as Manure. The WOW programme seeks to not only build awareness, but also to encourage people to segregate their waste at the source which is their households. This reduces the amount of waste filling up the landfills - and provides industries with clean raw materials. For example, ITC's Kovai unit is exclusively dependent on recycled fibre. By end 2011, ITC PSPD would be using close to 210,000 tonnes of 42

Sustainable Development in ITC 2012-13 wastepaperperannum.

Recycling of waste has huge environmental and economical benefits. Recycling of one tonne of waste paper saves 17 trees and 7,000 gallons of water.

Through WOW, ITC helps to deal with various issues like environment protection, reduction of global warming, improving green cover, reducing landfills, improving ground water quality, general health and hygiene, reducing garbage handling costs, better civic amenities and providing cost competitive raw materials to industries.

5.5.1 WOW WAY’S

ITC's WOW teams in different regions conduct awareness sessions in schools, residential societies and offices - explaining the benefits of source segregation. The WOW team provides bags to collect the recyclables classified as paper, plastic, glass and metal. While collecting the recyclables, the WOW personnel accurately weighs the recyclables and immediately reimburses the individual with cash which are at competitive rates. The material collected is then channeled into an appropriate recycling stream - the paper waste is sent to ITC's units, for recycling into a wide range of paperboards, while the other materials are responsibly transferred to relevant industries. This collection activity not only helps recycling, but helps many people find gainful employment as waste collectors and as volunteers spreading the idea and concept of WOW in their localities. Segregation of waste:

Table: 5.3- List of Wastes and their disposal Hazardous waste item

Disposal

Sludge from Effluent treatment Plant of

To authorised agencies for making

PSPD

paperboards, trays, etc. Authorised landfill

Empty Containers of hazardous

Decontaminated and returned to Original

chemicals

Suppliers

Used oil

Recycled through authorised recyclers

Used batteries

Returned to original suppliers

43

Sustainable Development in ITC 2012-13 Spent solvents/ink/ink sludge/adhesives

Recycled Incinerated/or sent to authorised landfills/stored within the unit

Biomedical waste

Incinerated/Autoclaved

Kovai Paperboards Unit, continued to use post-consumer wastepaper for the entire production as raw material

5.6 ISO STANDARDS ITC Kovai unit is 

ISO 9001



ISO 14001 and



OHSAS 18001 certified.

5.6 ISO 9001 Requirements: The requirements of the ISO 9001:2000 standard are organized into the following five sections: 

Quality Management System



Management Responsibility



Resource Management



Product Realization



Measurement, analysis and improvement

5.6.1 Quality management system General Requirements The Quality Management System (QMS) is the collection of processes, documents, resources, and monitoring systems that direct the work of an organization regarding product and service quality. The organization needs to establish, document, carry out, and maintain this system to meet the requirements of ISO 9001:2000. 44

Sustainable Development in ITC 2012-13 Documentation requirements

General The organization needs to document – either electronically or on paper – the quality policy, quality objectives, and quality manual. Written procedure, plans, and operations need to describe how product and service quality is attained. Certain records, providing evidence of activities that were carried out (i.e. purchase orders, sales contracts, inspection records, design review notes, etc.), have to be retained The quantity, detail, and form of the documentation can differ from one organization to another depending on size, type of activities, or complexity of processes.

Quality manual The quality manual describes the extent of the QMS and may exclude certain sections of the Standard that don't pertain to the organization. All of the quality procedures are either included in the quality manual or are referenced by it. The interaction between processes making up the QMS is also described.

Control of documents All of the documents in your QMS must be legible, identified, reviewed, authorized, up-to-date, issued, distributed, and periodically updated. Obsolete documents have to be identified and protected from unintended use. Documents that come from outside the organization also have to be identified and controlled.

Control of records Certain records need to be kept to demonstrate how the QMS is operating. These records must be legible, and easy to identify and retrieve. A written procedure must describe how they are identified, stored, protected, retrievable, and define their retention and disposal times.

45


5.6.2 Management responsibility Management commitment The Standard recognizes that an effective quality program requires the involvement and commitment of the organization‟s top management. Therefore, the Standard

assigns top management the following responsibilities: 

Overseeing the creation of the Quality Management System (QMS),



Communicating the importance of meeting requirements, including customer, legal, and regulatory requirements,



Establishing the quality policy and the quality objectives,



Communicating with parties responsible for product and service quality,



Providing adequate resources for the operation of the QMS



Reviewing the operation of the QMS.

Customer focus Top management must ensure that customer requirements are understood and met with the goal of improving customer satisfaction. Quality policy

The quality policy identifies the main goals of the QMS. The quality policy must be: 

Appropriate to the organi zation‟s purpose,



Include a commitment to meet customer, legal and regulatory requirements,



Create a background for establishing quality objectives,



Communicated throughout the organization,



Reviewed for ongoing suitability to the needs of the organization and its customers

Planning - Quality objectives 46

Sustainable Development in ITC 2012-13 Establish measurable quality objectives that support the quality policy and communicate them throughout the organization.

QMS planning Plan the QMS so that the quality objectives are met and so the system continues to work as it is changed to incorporate improvements.

Responsibility, authority and communication Responsibility and authority Effective work depends on a clear understanding of each persons responsibility and authority. Therefore responsibility and authority must be defined and communicated.

Management representative Top management must appoint a manager to have ongoing operational responsibility for the QMS. This person is referred to as the Management Representative. The duties of the Management Representative include: 

Ensuring that processes needed for the QMS are established, implemented, and maintained,



Reporting on the performance of the QMS and any improvements needed,



Promoting awareness of customer requirements throughout the organization

Internal communication Top management needs to set up an effective system of communication to ensure effective operation of the QMS.

Management review General

47

Sustainable Development in ITC 2012-13 Top management is required to regularly review certain aspects of the QMS to make sure that the goals are being achieved and to look for ways to improve the QMS. The review must cover suitability, adequacy, and effectiveness of the QMS. The review also includes assessing opportunities for improvement and needed changes to the QMS, quality policy, and quality objectives. Records of these reviews must be kept.

Review input These meetings must address the following areas: 

Internal audit results,



Customer feedback,



How well processes have been working,



How well products have been meeting requirements,



Status of previously identified problems,



Items identified for follow-up in previous management reviews,



Planned process or product changes that could affect quality,



Recommendations for improvement generated through the operation of the QMS

Review output These reviews result in decisions and actions related to: 

improving the QMS, and



improving the product,



The need for additional resources, including human resources.

5.6.3 Resource management

Provision of resources Provide the people, equipment, tools, and materials need to:

48


build and maintain the QMS,



continually improve the effectiveness of the QMS, and to



meet customer requirements

Human resources General People performing work affecting product and service quality must be competent to carry out that work. This competency is attained through a combination of education, training, skills, and experience.

Competence, awareness and training The organization must: 

Identify the talents, skills, knowledge, and capabilities each person needs to carry out their assigned responsibilities,



train or otherwise assist people to meet these identified competencies,



assess the competency of each person to carry out their responsibilities,



Make sure each person understand how their work contributes to the quality of products and services and to meeting quality objectives.



keep records of each person's education, training, skills, and experience

Infrastructure The infrastructure for a QMS includes the building, workspace, equipment, and the supporting services involved in creating the organization‟s products or

services. The organization will need to determine, provide and maintain the infrastructure needed to achieve the planned results.

Work environment

49

Sustainable Development in ITC 2012-13 The work environment of the organization must not interfere with the ability of employees to perform effectively in order to meet quality requirements.

5.6.4 Product Realization Requirements

Planning of product realization Product realization is the term used to describe the work that the organization goes through to develop, manufacture, and deliver the finished goods or services. An effective Quality Management System (QMS) includes a comprehensive approach to getting from the product concept to the finished product. This approach, sometimes called a quality plan, includes the following: 

product requirements and quality objectives,



creation of the processes, documents, and resources needed for product realization,



required verification, monitoring, inspection, and test activities,



The records to be kept.

Customer-related processes Determination of requirements related to the product The Standard requires the organization to determine product requirements. These requirements can come from the customer, may be mandated by laws or regulations, and include generally accepted standards within your industry or market. Requirements are established by standard contracts or oral agreements that the sales department uses in discussions with customers, and other sources. Review of requirements related to the product

50

Sustainable Development in ITC 2012-13 After gathering preliminary product requirements, these requirements need to be reviewed to be sure that the customer understands them and that the organization is meeting these requirements. This review must ensure: 

The requirements are known and understood,



Any changes from the original contract or discussions is understood,



The organization has the ability to meet the requirements



Records are kept of this review.

Routine orders for items described in a catalog of products are considered reviewed when the relevant product information is reviewed.

Customer communication Put in place effective customer communications channels, to allow dialogue regarding: 

product information,



questions about contracts, order handling, changes, and



receiving customer feedback, including complaints.

Design and development planning To effectively plan the design and development process, the organization must: 

Clearly define the stages involved in the design and development process.



Identify how the review and verification of the design will take place.



Describe clear responsibility and authority for the people doing this work.



See that design information flows effectively among the various groups having a role in designing, selling, managing, manufacturing, and servicing the products.



Keep design and development plans up to date.

Design and development inputs

Determine the product requirements, including: 51


what it does and how well it must perform,



legal and regulatory requirements,



pertinent information from similar designs,



Other pertinent requirements.

Design and development outputs The output of design and development must include sufficient information to verify that design output meets design input requirements. In addition, it must: 

Include the information need to purchase component materials, manufacture the product, and service the product.



specify how to determine if the product has acceptable performance,



Highlight safety and usage considerations.

Design and development review Review the design and development work products to: 

determine if the design meets the design input requirements,



identify and problems with the design,



propose solutions to identified design problems,

Include representatives from each function concerned with the design and development stage being reviewed. Keep records of the reviews.

Design and development verification Verify, according to your plan, that the design output meets design input requirements. Record the results of these verification activities.

Design and development validation 52

Sustainable Development in ITC 2012-13 Validate the operation of the resulting product under actual operating conditions. If the product has multiple uses, validate operation for each intended use. The methods for validation defined in the design output should be followed. Whenever possible, the validation of a product or service should be performed prior to delivery to the customer. Record the results of these validation activities.

Control of design and development changes Identify, document, review, and approve all design changes before carrying them out. Evaluate the impact of the changes on the present design of the product. Keep records of the review.

Purchasing Purchasing process The organization needs to ensure that purchased products and services meet purchasing requirements. The purchasing group must establish criteria for how they evaluate and choose suppliers. These criteria must be based on the suppliers‟ ability

to provide products and services that meet order specifications, especially product and service quality requirements. The extent of the controls depends on the importance of the purchased goods in the finished product. Finally, records must be kept showing how purchased products and services were evaluated.

Purchasing information Clearly describe on purchase orders the product or service being ordered. Consider including the following specifications: 

how products, procedures, processes, and equipment are approved for purchase, 53


required competencies for contracted personnel,



Requirements for the supplier's quality management system.

Review and approve purchasing requirements before sending them out.

Verification of purchased product Carry out a plan for verifying that purchased services and materials are adequate, i.e. meet purchase specifications.

Production and service provision Control of production and service provision Plan production, installation, and service processes and provide an environment where work can proceed in an orderly fashion. These controlled conditions may include: 

information regarding product specifications,



written instructions for carrying out the work,



suitable equipment,



adequate tools for monitoring and measuring process and product characteristics,



activities for monitoring and measuring process and product characteristics,



criteria for product release,



Delivery and post delivery servicing activities.

Validation of processes for production and service provision Process validation demonstrates that operation of the processes achieves the planned results. When it is not possible to verify the finished good or service through monitoring or measurement the QMS must require validation. Validation is particularly important where deficiencies are not identified until the product is in use,

54

Sustainable Development in ITC 2012-13 or the service is delivered. When validation is required, the QMS must define the criteria for the following: 

review and approval of the process,



approval of the equipment used,



competency of the people who operate the process,



specific methods and procedures used,



records to be kept,



ongoing assessment of the process validation

Identification and traceability Where appropriate, establish procedures to identify a product and determine what specifications pertain to it as it moves through manufacturing, delivery, and installation. Record the inspection and measurement status of the product. Individual products or batches of products must have unique serial identification recorded if assuring product quality requires this.

Customer property Special care must be taken when a customer provides their property for use or incorporation into the product. Identify, verify, and protect customer property provided and maintain records of lost, damaged or unsuitable customer property. This may include intellectual property.

Preservation of product The standard requires the organization to preserve the product, including identification, handling, storage, packaging, protection, and delivery of parts and products throughout all processes.

Control of monitoring and measuring devices

55

Sustainable Development in ITC 2012-13 Any measurement worth taking is worth taking correctly. The standard requires the organization to identify the inspection, test and measurements taken, their required accuracy, and the equipment used to make the measurements. Procedures must describe how measurements are carried out. Measuring equipment must be carefully cared for, including: 

timely calibration to national standards,



identification with a calibration label,



preventing adjustments that would invalidate the calibration,



Preserving the equipment accuracy during handling, storage and use.

Measurements taken with equipment later found to be inaccurate must be assessed and corrected.

5.6.5 Measurement, analysis and improvement requirements General Plan and carry out the inspection, test, measurement, analysis, and improvement activities needed to: 

assure product meets product requirements,



assure the QMS works as planned,



Improve the operation and results from the QMS.

Customer satisfaction Monitor the end customers' opinion of your product and service. Determine how to gather and use this information.

Internal audit Internal audits are verification activities performed by trained auditors within the organization. Their purpose is to determine how well the plans making up the QMS are being followed. The Standard requires internal audits be carried out 56

Sustainable Development in ITC 2012-13 regularly in each area covered by the QMS. Audits address conformity with the QMS, the requirements of ISO 9001:2000, and the effectiveness of the implementation. Audit plans address: 

Audit criteria, and extent,



Frequency, and methods used,



Responsibility for conducting the audit

Auditors are trained, objective, and never audit their own work. Identified problems are quickly resolved by the manager responsible for area being audited. Audit results are reported and recorded, follow up actions are verified.

Monitoring and measurement of processes Monitor and measure the performance of the processes that make up the QMS. Compare these actual results to the planned results. Take corrective action to make sure the product or service meets requirements.

Monitoring and measurement of product During the production process, monitor and measure the product to assess if requirements are met. Keep records showing: 

The product meets acceptance criteria.



The name of the person who authorized release of the product.



The product has proceeded through all of the planned process steps, including all planned verifications.

Control of nonconforming product Nonconforming product is any product or service that does not meet requirements. Have documented procedures to identify nonconforming products and to make sure they are not used by accident. Define who is responsible for deciding what to do with a bad product. One of the following three actions must be taken: 57


fix the product as if the problem never happened,



ask the customer to accept it, perhaps on new terms,



Discard it or clearly mark it as unsuitable for its original use.

Keep records of nonconformities.Re-inspect any corrected products according to the procedures for new products. Mitigate potential losses, perhaps by recall, from any product that has been found to be defective after its release to the customer.

Analysis of data The standard requires the organization to collect information on the functioning of the QMS. This information is then analyzed to evaluate the effectiveness and efficiency of your system and to identify opportunities for continual improvement of the QMS. Information collected and analyzed relates to: 

customer satisfaction,



meeting product requirements,



process characteristics and trends,



product characteristics and trends,



Supplier performance.

Improvement Continual improvement Make use of the quality policy, quality objectives, audit results, data analysis, corrective and preventive actions and management review to improve the QMS.

Corrective action When problems occur, fix the underlying process responsible for the defect. The thoroughness of each solution depends on how costly or unsafe the actual or possible problems are.

58

Sustainable Development in ITC 2012-13 Create written procedures for: 

satisfying customer complaints



investigating and solving reported product and process problems,



identifying the underlying cause of these nonconformities,



understanding how to eliminate the cause of nonconformities,



making sure corrective actions are carried out,



keeping a record of corrective actions,



Following up on corrective actions.

Preventive action The same actions described above for corrective actions must be considered for problems that have yet to occur. This is called preventive action. Effective preventive action involves identifying the potential problem, examining the root cause, putting a plan in place to prevent occurrence of the problem, evaluating the effectiveness of the plan, recording actions taken, and reviewing the preventive actions taken. A written procedure is required to describe the preventive action process.

5.7 ISO 14001 Requirements The ISO 14001 standard follows a PLAN – DO – CHECK – ACT cycle. The first phase is developing the environmental policy and planning the EMS. The second phase is implementing the EMS. The third phase is checking and reviewing the system. The fourth phase is the continuous improvement of the EMS. Within the standard there are 17 elements of ISO 14001 that are required to be met by organisations seeking formal recognition for their EMS. ISO 14001 requirements are as follows: 1.

An environmental policy supported by senior management;

2.

The identification of environmental aspects and impacts, and the identification of 59

Sustainable Development in ITC 2012-13 significant environmental impacts that the organisation may cause; 3. 4.

Identification of legal and other requirements; The development of objectives and targets, and their environmental management programs;

5.

Defined resources, roles, responsibilities and authorities for environmental management;

6.

The development of competence, training and awareness procedures;

7.

A communication process of the EMS to all stakeholders and interested parties;

8.

The development of EMS documentation as required by the standard;

9.

The development of document control procedures;

10. The development of operational control procedures; 11. The development of emergency preparedness and response procedures; 12.

The development of procedures to monitor and measure operations that can have significant impact to the environment;

13. An evaluation of compliance procedure; 14.

Procedures developed for the management of non-conformance, corrective and preventative actions;

15. The development of a records management procedure; 16. A program for completing internal EMS audits and corrective actions; and 17. The development of procedures for management review by senior management. The standard can be easily integrated into existing safety (AS/NZS 4801 or OHSAS18001) and quality (AS/NZS ISO 9001) management systems.

5.7.1 ISO Checklist There are many steps involved with the development and implementation of an effective EMS. Organisations may benefit by developing their own ISO 14001 checklist detailing the steps involved with ISO 14001 development and implementation. (The article How to up the EMS ante provides further reading about common mistakes made by organisations, as well as, describing the actions required to avoid and overcome these mistakes.) The first item on your ISO 14001 checklists should be to ensure senior management are committed to and involved with its development, implementation 60

Sustainable Development in ITC 2012-13 and management. Human, financial and physical resources need to be identified. Ongoing resources need to be allocated. Responsibilities need to be assigned and agreed to at this stage. The organizations‟ EMS scope will need to be defined i.e. the identification

of the products, services and activities it covers and anything that is excluded. An Initial Environmental Review should be completed in accordance with AS/NZS ISO 14015 Environmental management – Environmental assessment of sites and organizations (EASO) and HB 206 Initial Environmental Review (handbook).

The amount of detail required should be assessed prior to its commissioning. Current environmental management activities should be integrated into the ISO 14001 EMS. These current activities should be identified during the initial environmental review stage and EMS gap analysis. Organisations should plan for the systematic development and implementation of the elements of the EMS. Plans need to include implementation requirements, education and training requirements, internal audits and time to close out any actions, time to run the system (records are collected to demonstrate implementation) and demonstration of continuous improvement. This needs to be completed prior to an external ISO 14001 certification audit. ISO 14001 should be developed in conjunction with

ISO 14004

Environmental managements systems – General guidelines on principles, systems and support techniques . ISO 14004 provides further guidelines for the

elements of an EMS and its implementation. Organisations should identify whether they have the skills and resources to develop an ISO 14001 EMS internally or whether they should outsource its development. Often systems

developed can be more complicated than they need to be, somewhat confusing and difficult to manage. Engaging a Consultant should overcome this but remember not all Consultants have equal experience and qualifications, and unfortunately it's still quite common for Consultants to produce substandard EMSs.

Engaging a

Consultant which specializes in environmental risk management and EMSs as well as having adequate qualifications and experience could be considered.

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5.7.2 ISO Certification An ISO 14001 EMS will need to be fully developed and implemented prior to an ISO 14001 certification audit. For an EMS to be implemented the organisation will need to demonstrate a variety of completed actions including: • The development and communication of an environmental policy; • Environmental aspects need to be reviewed; • Legal requirements need to be assessed and compliance monitored; • Objectives and ta rgets need to be set and the programs in which to achieve them developed; • Training needs should have been identified and a strategy for achieving them implemented; • An internal audit completed; and • A management review of the EMS and their organisat ion's environmental performance.

During the implementation phase organisations should seek the services of an Accredited Certification Body which will conduct annual audits and arrange ISO 14001 certification on behalf of the organisation. Audits can be completed with other certified management systems such as ISO 9001 Quality Management Systems and AS/NZS 4801 Occupational Health and Safety Management Systems. The Client Manager from the Accredited Certification Body should monitor the implementation progress. They should manage the application and set dates for ISO 14001 certification audits. The initial registration involves a two stage process of a document review and a site visit. A pre-assessment may be recommended prior to the registration audit to identify any gaps. The Accredited Certification Body will assess the system to both the requirements of ISO 14001 and the organisation‟s

environmental policy. Where successful the Accredited Certification Body will issue a certificate of registration. ISO 14001 certificates are valid for three years.

62

Sustainable Development in ITC 2012-13 Ongoing annual ISO 14001 surveillance audits may focus on specific elements of the ISO 14001 EMS. Where an organisation has multiple sites that are certified, a sample of these sites may be selected for surveillance audits. ISO 14001 certification is a voluntary scheme however there is increasing pressure by customers for their suppliers to be ISO 14001 certified. As an alternative to ISO 14001 certification organisations could consider developing and implementing an ISO 14001 EMS but only having it internally audited or audited externally by an independent ISO 14001 Auditor. This may reduce the financial burden where ISO 14001 certification isn't specifically required.

5.7.3 ISO AUDIT: There are two types of ISO 14001 audits, internal and external. An internal ISO 14001 audit is an audit which fulfils the requirements. An external ISO 14001 audit is an audit which is typically conducted for the purpose of ISO 14001 certification and completed by an Accredited Certification Body. Of interest, it is becoming increasingly common practice for businesses to be audited by other businesses. This is because some businesses have identified their suppliers as part of their overall environmental risk. They are now directly auditing their suppliers to ensure there are appropriate systems and controls in place to manage these risks. ISO 19011 Guidelines for quality and/or environmental management systems auditing provides information regarding choice of auditor. ISO 14001 Auditors should have personal attributes such as ethics, tact, and open-mindedness and be perceptive. They should understand audit principles, procedures and techniques, as well as having gained experience through conducting audits. ISO 14001 Auditors should know the subject matter they are auditing against and how this applies to the organisation. ISO 14001 Audit Team Leaders should be able to plan and resource effectively, has good communication and leadership skills. Preferably ISO 14001 Environmental Auditors should complete environmental auditing training and have attained an appropriate level of education. A good Auditor should have both skills and experience. With any ISO 14001 audit consideration could be given to assessing 63

Sustainable Development in ITC 2012-13 the Auditor's skills and experience, and checking whether they impartial and objective.

5.8 ISO 18001: This OHSAS specification is applicable to any organization that wishes to:



Establish an OH&S management system to eliminate or minimize risk to employees and other interested parties who may be exposed to OH&S risks associated with its activities;



Implement, maintain and continually improve an OH&S management system;



Assure itself of its conformance with its stated OH&S policy; demonstrate such conformance to others;



Seek certification/registration of its OH&S management system by an external organization; or



Make a self-determination and declaration of conformance with this OHSAS specification."

The elements of OH&S management system are



General requirements



OH&S policy



Planning



Implementation and operation



Checking and corrective action



Management review

5.8.1 General requirements

Organisations have to establish and maintain an OH&S management 64

Sustainable Development in ITC 2012-13 system which meets the requirements set out in the rest of clause 4.

5.8.2 OH&S policy

The organisation‟s top m anagement has to authorise an OH&S policy stating the organi sation‟s OH&S o bjectives and its commitment to continual improvement.

There

are

other

requirements

covering,

for

example,

communication and review of the policy.

5.8.3 Planning Planning for hazard identification, risk assessment and risk control. Organisations have to have procedures for risk assessment and risk control and use the outputs from these procedures in setting OH&S objectives. There is also a list of criteria which must be met by the hazard identification, risk assessment and risk control procedures.

Legal and other requirements. Organisations must keep up to date records of the legal and other OH&S requirements which apply to them, and ensure access to details of these requirements. The requirements must also be communicated to employees and other relevant interested parties.

Objectives: Organisations have to establish and maintain documented

OH&S objectives and these OH&S objectives have to meet certain criteria.

OH&S management programme(s): These programmes are the ones required to

achieve the OH&S objectives. The programme(s) must be documented, with details of responsibilities and timescales, and reviewed and revised as necessary.

5.8.4 Implementation and operation

Structure and responsibility: Organisations are required to document

65

Sustainable Development in ITC 2012-13 OH&S responsibilities and how these responsibilities are structured. A member of top management (the management appointee) must be responsible for the totality of the OH&S management system.

There are also requirements to provide adequate resources for the OH&S management system and for all those with management responsibility to demonstrate their commitment to continual improvement of OH&S performance.

Training, awareness and competence: This sub clause requires that personnel are competent to perform tasks that may impact on OH&S and, when training is used to provide competence, it takes into account the ability and literacy of the trainees and the risk to which they will be exposed.

The sub clause also lists a number of OH&S issues of which employees should be aware.

Consultation and communication: Organisations must have procedures for communication on OH&S issues and documented arrangements for employee involvement and consultation. There is also a list of criteria to be met by the involvement and consultation arrangements.

Documentation: There must be a written description of the management system with, as necessary, references to more detailed documentation.

Document and data control: There must be control of all documents and data required by the OH&S management system and this control must ensure a number of things, including adequate locating, reviewing and archiving of documents and data.

Operational control: This sub clause begins with a requirement to identify all activities where control measures need to be applied. These activities must then be 66

Sustainable Development in ITC 2012-13 planned to ensure that they are carried out under specified conditions. There is also a list of criteria which must be met by these plans, and their implementation.

Emergency preparedness and response: Organisations must identify the

potential for, and responses to, incidents and emergency situations. The plans must be reviewed and tested where practicable.

5.8.5 Checking and corrective action

Performance measuring and monitoring: This sub clause begins with a

list of the requirements for monitoring and measuring OH&S performance and then deals with what organisations have to do if they use monitoring equipment.

Accidents, incidents, non-conformances and corrective and preventive action. Organisations must have procedures for investigating accidents, incidents and non-conformances and for ensuring that appropriate corrective and preventive action is taken. Proposed corrective and preventive actions must be the subject of a risk assessment prior to their implementation.

Changes arising from any of these activities must be documented. Records and record management : The main purpose of records is to be able to

demonstrate conformance with the OHSAS 18001 specification, and this section lists the criteria which must be met by the record management procedures.

Audit: Organisations must have periodic OH&S management system audits

which check whether the OH&S management system conforms to planned arrangements, is properly implemented and maintained, and is effective. To meet the requirements, the audit programme and procedures have to conform to a number of criteria.

67


5.8.6 Management review

Top management is required to review the suitability, adequacy and effectiveness of the OH&S management system at intervals determined by the top management. The reviews must be documented.

68


CHAPTER-VI FINDINGS, SUGGESTIONS AND CONCLUSION FINDINGS:

Sustainable Development: 

In ITC, they reduce the usage of Fossil Fuels and increase the usage of Agro Fuel which reduces the emission of Harmful content in air.



They water used for the production will be treated properly and then used for their afforestation purpose.



They increase their plantation sequentially in every year which contributes them for the green Environment.



The recycle the waste both inside and outside of the plant and their contribution towards the sustainable development.

HR practices: 

In ITC, the relationship between the Employees and Management is good.



The Employees attrition rate is 0.8% and which indicates the growth of the organization.



They were providing the wages based on the Minimum Wages according to the Minimum Wages Act, 1948.

ISO Standards: 

The Management giving more importance towards Quality of the product.



They were giving more importance towards the Safety of the Plant and as well as the employees of their organization.



Their LEAN Structure adds Value to Product by reducing the Wastages.

69


SUGGGESTIONS: 

The organization should reduce Overtime of work Methods which will increase the retention of Casual Employees



The training methods for the Employees should be altered by analysis their Needs Analysis.



Their Contribution towards the development of rural development near to their factory method should be improved



If they focus on Export Oriented units, they will be the World Market leader in Paper Industry.



They should improve their usage of Fossil fuels to the generation of Steam and it will lead the organization towards getting the nationalized recognition.

70


CONCLUSION ITC, who have extended their business to reach all doorsteps through their innovative products such as Paperboards, have one of their major plants set up at Kovai. As mentioned earlier, the unit has been recognised as an ISO 9001, ISO 140001 and OHSAS 18001 plant. The training period in ITC was a good learning experience. It helped me gain practical knowledge regarding its production, maintenance and environmental health and safety aspects.

According to their Production capacity they were manufacturing less due to their consumption, low Economic growth. They were focusing on the usage of Agro Fuels to reduce the emission of Carbon pattern and encourage the afforestation to sequester the Emission of harmful content released by them. At the same time they must in need to focus on their Quality. Their Internal audit is effective which shows the accurate results and the areas needs improvement.

The relationship between the Employee and the management should be improved and it is necessary to conduct effective training when there is a need for both the employees and managers. As a Master of Business Administration student, it has also provided me with a clear understanding about the Various HR Practices and their measures that are undertaken to evaluate their progress.

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itc

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