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A PROJECT REPORT ON

CORPORATE SOCIAL RESPONSIBILITY -

KANSAI NEROLAC PAINTS LIMITED

SUBMITTED BY

Kinnar Majithia

P1026

PGDBM 2010-2012

SYDENHAM INSTITUTE OF MANAGEMENT STUDIES,

RESEARCH AND

ENTREPRENEURSHIP EDUCATION (SIMSREE)

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ACKNOWLEDGEMENTS

I wish to express my profound thanks to Prof. Bharat Nadkarni for his precise, extensive and

practical teachings as well as guidance throughout this project.

I wish to thank Dr. Khan, Director of SIMSREE, Mumbai for the permission for carrying out the

project as well as giving his valuable insights and information.

Also, a vote of thanks to Kansai Nerolac Paints Limited for sharing such valuable information which is

very motivating and persuasive to everyone to contribute towards a noble cause.

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Table of Contents

Acknowledgement……................................................................................................................3

About KNPL………………................................................................................................................4

CSR by KNPL….……………………......................................................................................................5

Triple Bottom Line……………………................................................................................................6

Areas of Focus............................................................................................................................7

Health…….…….............................................................................................................................7

Education..……..........................................................................................................................12

Community Development…………………………………………………………………………………………………....16

Environmental Preservation………………………………………………………………………………………………...20

Summary of Expenses on CSR……………………………………………………………………………………….………22

Karmayog Ratings for CSR…………………………………………………………………………………………………….24

Conclusion…………………….………………………………………………………………………………………………….….26

Bibliography…………………..………………………………………………………………………………………………….…26

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About Kansai Nerolac Paints Ltd.(KNPL)…

It is the 2nd largest coating company in India and market leader in Industrial coatings

Its Industrial coatings have a wide range of products in Automotive, Powder, General Industrial

and High performance Coatings space

Popularly known as Nerolac paints, it is also an established brand in decorative paints

Kansai Nerolac paints Ltd. Is a subsidiary of Japan based Kansai Paint Company Ltd. which is one

of the top 10 coating companies in the world

Journey of the organization…

1920: The journey starts as Gahagan Paints and Varnish Co. Ltd. at Lower Parel in Mumbai

1933: Lead Industries Ltd. took over entire share capital of Gahagan leading to formation of

Goodlass Wall(India) Ltd.

1957: Goodlass Wall went public and came to be known as Goodlass Nerolac Paints Ltd.

1976: Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a

part of the foreign shareholdings by Forbes Gokak

1983: Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration

agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan.

1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP

became wholly owned subsidiary of Kansai Paint Company Ltd.

2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints

Ltd.

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Products…

Decorative Paintings

Automotive Coatings

General Industrial Coatings

High performance Coatings

Powder Coatings

Specialty Coatings

More about KNPL…

KNPL operates through 70 sales locations, over 11000 dealers and 5 factories The manufacturing operations are extended across the country with state of the art factories

located in Bawal in Haryana, Lote in Maharashtra, Jainpur in UP, Chennai in Tamil Nadu and a new one at Hosur in Tamil Nadu

Kansai Paint Co. Ltd. of Japan, one of the top ten paint companies in the world holds 69.27% equity of KNPL

CSR by KNPL…

Kansai Nerolac is a responsible organization and it invests in communities to improve the quality of life and sense of well-being of the people.

KNPL partners with NGOs in social outreach program spanning the areas of healthcare, education, conservation and community development.

Most of the activities is carried out through the GNP Charitable Trust. KNP contributes 0.4 - 0.5% of its net profit annually, to the corpus of the Trust, in order to carry

out its activities from the interest earned of the accumulated fund.

CSR OBJECTIVES… “To position Kansai Nerolac as a socially active Corporate Citizen and leverage the activities in media, to gain maximum visibility for the cause and company, involving employees through volunteering, wherever possible.”

CSR VISION STATEMENT… “To behave fairly & responsibly contributing to sustainable economic development and improving the quality of life in the neighborhood, in the process maximizing stakeholders’ value.”

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CSR MISSION STATEMENT… “To contribute positively to the development of the society, by acting as a good neighbor,

considerate of others, playing the role of a good corporate citizen with passion and

compassion.”

TRIPLE BOTTOM LINE CONCEPT…

KNPL CSR covers 4 core areas…

1. Social Responsibility 2. Business Responsibility 3. Environmental Responsibility 4. Stakeholder Involvement

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AREAS OF FOCUS…

Health Education Community Development Environment Preservation

HEALTH…

Program Vision: The objective is to support various activities towards improving and generating awareness about general health & primary health care to the general masses, and the people residing within the vicinity of our plants.

ACTIVITIES:

2004-05:

Health Checkup and Blood Donation Camp organized in Khed with worker volunteers to supervise the operations

Eye Camp at Ghanekuunth in Ratnagiri district conducted in association with Chiplun Lion Club – 100 people eye check-up and few identified for cataract operation

Provision of BERA Audio Meter, an expensive but essential instrument, provided to ENT Charitable Trust, Malad which is an institution for the benefit of the Deaf and Mute children

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2006-07:

Medical checkup camp for villagers at Bawal for 193 villagers including 115 females; another one at Jainpur for 170 people

Eye-checkup camp in association with Halet hospital in Kanpur for 260 people Dental checkup camp for 200 students through Leo Club of Khed, Ratnagiri

2007-08:

Christian Medical College & Hospital, Ludhiana approached us to paint their newly constructed children’s ward with Disney characters in order to make the place lively & child - friendly.

Mati HQ, Jainpur - Tied up with the local civil administration to have a unique meeting with the disabled of this area. We donated twenty wheel chairs to the physically handicapped.

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Sri Shanmukhananda Fine Arts & Sangeetha Sabha, Mumbai was looking to upgrade Eye Care Centre facilities. The required funds were provided and now it is known as ‘Nerolac Eye Care Centre’ – providing eye care to over 20,000 people in a year. ‘Nerolac Dialysis Centre’ providing around 3500-4000 dialysis treatment per year

2008 – 09:

Health checkup in Haryana: 2 camps in Rewari district – 495 patients, tests covered included ECG, diabetes, general and Opthal checkups

Free Medical camps in UP: Local villagers, school children’s health checkup for Blood Sugar, BP, Eyes, Teeth, General Checkup with assistance of 4 specialist doctors from Ganga Ram Hospital, Kanpur. Around 120 people benefited from the camp

Other Healthcare activities in association with Medical Research Foundation in Chennai, Shri Jalaram Arogya Seva Trust in Gujarat, KC Hospital in Mumbai

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2009-10:

Free medical checkup Camp at Jainpur: The main aim of Medical Health Check Up Camp was to provide Medical consultation & advice by specialist doctors and conduct pathology tests for the villagers of Mati village, and poor people who were not able to afford Medical Services and also were not aware of the diseases.

Participation in AIDS Awareness Camp by Bawal: KNPL,in association with one of the NGOs in Rewari, Bawal unit participated in a Rally flaged off by the DC. Slogan and Poster competition was also organized on this day.

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EDUCATION…

Program Vision: Our goal is to support institutions promoting education, encouraging education of girl child & of children residing in villages and promote children literature.

Activities:

2007-08:

Senior Secondary School, Banipur chowk, Bawal (Rewari) has students from near-by villages from the lower/ poor class. During the onset of a harsh winter, KNPL donated sweaters for the students and provided comfort of seating by way of mats.

Deeds Public Charitable Trust, Mumbai was keen on starting a Computer Vocation Centre at the premises of Pragati Vidyalaya for the hearing impaired children. KNPL provided computers for the centre in order to empower these deprived children with knowledge so that they can be at par with able children in computer proficiency.

Duraisamy Generous Social Education Association, Maduranthakam (near Chennai) - The

association runs, for less fortunate children, food & shelter facility, high school & vocational training centre, day care centre for elders, creche, rehabilitation centre for deaf. KNPL provided support of books/ note books, uniform, stationery for the deserving children of VKM high school, run by this association.

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2008-09:

Deaf and Dumb school (Jainpur) Distribution of 7 Lunch Table Sets, 40 track suits. The principal appreciated the efforts in providing the basic amenities which motivates the morale of the challenged-students.

OM Sairam Charitable foundation, Navi Mumbai Is a foundation, which is tirelessly working towards providing for education & education facilities to the children belonging to the economically weaker strata of the society of the fishermen community. KNPL made a donation to support this institution in their cause.

Bharitiya Samaj Sewa Kendra,Chiplun Is a non-political,non-profit making Organisation working in the field of Child & family Welfare. Their scope of work has been tremendously growing and hence to cater to the need for bigger space for their office & for conducting education sponsorship activities they have started construction of a new building at Chiplun. We provided them support to maintain their building.

Provision of Science Lab equipment to Girls college in Kanpur:

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2009-10:

Financial Assistance was provided to the Bombay Community Public Trust for e- teaching aid projects for vernacular schools in Maharashtra. This aims at training the teachers in English language through the means of technology. The contribution made will help in the cause of improving literacy of the poorer sections of the society.

Donation was provided to Kherwadi Social Welfare association(KESWA). One of the main

activities of KESWA is Yuva Parivartan which provides vocational training and assists students for self-employment. This focuses more on school drop outs from high schools who may not get the opportunity for joining any training institute.

Distribution of School Bags at Jainpur Distribution of 100 School Bags to School Children was done at Nabipur Primary School, in Kanpur Dehat area. The main idea was to support and promote the importance of education and to motivate the school children, who were deprived of the basic amenities.

Activities at Hosur P.U.M. School is a small corporation school situated in Moranapalli village of Hosur approx.1.5 kms from the Hosur factory premises. The school lacked basic amenities. In this regard, representatives from KNPL in association with Local Tahsildar and Proj. Director of NHAI (National Highway Authority of India) took up the initiative of provision of basic infrastructure at the school. • A water tank of 1000 litres was provided for the school kitchen along with a water pipleline with 4 water taps. • A 500 litres water tank has been fixed for providing toilet facility for children. • Floor leveling of the main gate of the school has been done, thus helping to lock the gate properly and thereby improving safety.

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COMMUNITY DEVELOPMENT…

As a responsible corporate citizen, KNPL has been supporting programs for the upliftment of the society as a whole. Through their initiatives, they aim to provide basic facilities to the community around our manufacturing locations so that there can be a sustained improvement in their living standards.

ACTIVITIES…

2007-08:

Ahsalwas village, Bawal- In absence of regular supply of water, the people settled in this village were facing problems, even for drinking. A bore well with a submersible pump to draw water was provided along with an overhead tank to store drawn water. The facility provided will be run & maintained by the local Panchayat.

Vikramaditya Hall restoration- Civil Administration of Rewari approached KNPL

for support to carry out renovation of this hall. This facility now put in use will benefit the community around.

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Chirhara School at Bawal – Children studying in this school did not have the facility of drinking water in the absence of a bore well on the premises. A borewell with submersible pump was provided to draw water and to store the same, an over-head tank. Even the security was lacking in absence of a gate at the boundary of the school, which was provided. The activity inaugurated by DC was appreciated by the Civil Administration.

2008-09:

Akbarpur Police Station, Uttar Pradesh KNPL distributed 4 computers at Akbarpur Police Station. The Local Police Staff were present during the inaugural ceremony, which was presided over by the Circle Officer and our Works Manager. The Circle Officer appreciated the efforts taken up by Nerolac in providing the facilities for the authorities at the police station, which shall help in maintaining database, relevant information that can be accessed readily.

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Old age Home, Haryana:

To provide good quality potable water & good life to the inmates of the old home, KNPL donated a water filter & few chairs.

Armed Forces Flag Day

The Collector of Mumbai has been tirelessly working for the Welfare of the ex-servicemen & their families. We have pledged our support towards this noble cause.

2009-10…

Distribution of Blankets to Underprivileged

CSR activity of ‘Distribution of 200 Blankets’ to the underprivileged and poorer section of the society was carried out at Bewan Village, near Jainpur in the wake of unprecendented cold waves hitting the Northern region of India. The main objective was to extend a helping hand to the needy persons, who were deprived of the basic warm wear to protect themselves from the severe cold. The Chief Guest of the event was Mr. S. P. Anand ( ADM ), who appreciated the efforts of the organization in providing the basic needs of the society, under such severe conditions.

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Installation of hand pumps in villages of Jainpur Dehat Two Hand Pumps were installed in Nabipur and Jainpur, nearby villages of Jainpur factory. The aim was to provide solution to persistent ‘water scarcity’ issues at villages. The valuable contribution from our Operators towards allocating a suitable place for installation was appreciable.

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ENVIRONMENT PRESERVATION…

PROGRAM VISION: The organization is well aware of the environmental concerns and through CSR initiatives, works towards initiatives for conservation of water resources and provide clean and green environment.

ACTIVITIES:

2007-08:

Inauguration of Check Bunds at Village Nehroli & Sarasohol (activity of LY) in Thane district

of Maharashtra- a project undertaken jointly by Bombay Chamber of Commerce & Industry and aided by KNP, where two check Bunds have been constructed for arresting flow of rain water in order to support raising the ground water levels for irrigation in the surrounding area, in non-rainy season.

Tree Plantation at Jainpur - To provide a green cover, tree plantation activity has been initiated at Jainpur.

2008-09:

Tree plantation has been carried out in our plants on World Environment day KNPL undertook the activity of renovating a park in Bawal.

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Lead Free Paints- KNPL has been proactively working on eliminating Lead and Mercury from paint formulations. All Architectural paints & passenger vehicle coatings have been made lead & mercury free.

2009-10

Vireshwar Mitra Mandal Seva Sanstha had approached KNPL for helping them in their social cause of increasing awareness about environment by displaying Environment related boards to make people aware of environment aspects such as hazards of using plastic, waste management.

Rain Water harvesting at plants in Kanpur

Chiplun’s Navkonkan Education Society had requested for providing financial assistance for creating awareness on environmental aspects by displaying the board on Mumbai Goa Highway for indicating temperature, humidity, slogans on road safety.

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SUMMARY OF EXPENSES ON CSR…

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KARMAYOG CSR RATINGS…

Karmayog Ratings for CSR for the year 2007-08: 3/5 KNPL was amongst those 40, out of 500, companies (8%) to get this rating

Karmayog Ratings for CSR for the year 2008-09: 4/5 KNPL was amongst those 10, out of 1000, companies (1%) to get this rating

KARMAYOG CSR RATINGS for 2009-10… KNPL, yet again been rated 4 on a scale of 5 keeping up the consistency of its contribution to CSR activities year-on-year…

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CONCLUSION… Kansai and Nerolac, two entities having different culture but a common purpose, have made significant contribution to the society as they do believe in giving back to the society. What is striking is the different areas of focus for CSR, the depth of contribution in each of them and the consistency showed in these activities as promised in their objective. It has shown proportionate contribution to the ‘three pillars’ of the ‘triple Bottom Line’ concept – People, Planet and Profit, and has made it a point over the years to maintain a balance between all of them despite facing challenges like tough competition from rivals and economic slowdown. The results, of course, validated by Karmayog, are there to be seen…

BIBLIOGRAPHY…

http://www.nerolac.com/ http://www.google.co.in/ http://www.karmayog.org/