CSR Project Report
CSR Project Report
SUBMITTED BY
ADITHYA A . A .
Reg. No.: 14CSR101
2015-2016
2015
This to certify that Mr. ADITHYA A.A., Reg. No.: 14CSR101, our student of 2nd semester
MBA in CSR has carried out the internship project under my guidance, at RANE (
MADRAS ) LIMITED, MYSORE as part of his curriculum activity for obtaining a Post-
Graduation degree from UNIVERSITY OF MYSORE, Mysore during the year 2015.
2015
This to certify that Mr. ADITHYA A.A, student of II semester MBA in CSR, bearing the
register number 14CSR101 has successfully completed the internship project work in partial
fulfillment of the requirements for the award of post – graduation degree from University of
Mysore, Mysore during the academic year 2015.
I, hereby declare that the Internship Project Report is a record of independent research
carried out by me under the guidance of Dr. Mohan Kumar T.P , Asst. Prof., DoS in
Business Administration, Pooja Bhagavat Memorial Mahajana Post Graduation Centre,
Mysore. I further declare that the findings in the internship project report are independent
study done by me.
Date :
Place : Mysore ADITHYA A . A
ACKNOWLEDGEMENT
I would like to express my sincere thanks to Mrs. Syeda Misbah Razak, External
Guide, Assistant Manager – HR, for her co-operation and timely help to complete my
project work.
Date : ADITHYA A . A
Place : Mysore Reg. No.: 14CSR101
CHAPTER - 1
INTRODUCTION
INTRODUCTION
I. INTRODUCTION
CSR in India is based on M.K Gandhi’s Philosophy that “ The Corporate are taking so much from
the society and that they are equally obligated to return it back to them in a socially responsible
manner”.
In the recently passed, Companies Act of 2013, Section 135 speaks about CSR Act. Where Every
company having net worth of Rupees Five Hundred Crore or more, or a Turnover of rupees One
Thousand Crore or more or a Net Profit of Rupees Five Crore or more requires spending of at least
2% of its average net profit for the immediately preceding 3 financial years on CSR activities.
Today the world is competing at the global scenario. Every company is business and profit oriented.
It is a world where the most competitive survive. Corporate Social Responsibility ( CSR ) has
become the need of the hour, with India becoming the first developing nation to make CSR a law,
other countries too are on the verge of making CSR a law.
This project Report will break the perspective of the reader towards CSR and how it can create a
sustainable growth and impact on the society. This project confined to Automobile industy in
general, Rane Madras Mysore in Particular with special reference to Corporate Social Responsibility
activities practiced by the organization, This study focusses on one of the major CSR activities like
Mid day meal programme to the students of Government Higher Primary School, Koorgalli, Mysore.
V. SOURCES OF DATA
- Primary data: data has collected through face to face interview and observation method.
- Secondary data: The study also used secondary source and it has been collected from the
company’s year reports, business magazines and previous project reports done by the company.
VI. LIMITATIONS OF THE STUDY
- Time is the major constraints for the study.
- Meeting the external guides from the company was difficult.
CHAPTER-2
INDUSTRY PROFILE
Introduction
The Indian auto components industry has experienced healthy sequential growth over the last one-
and-a-half years. The growth can be attributed to factors such as strong buoyancy in the end-user
industry, recovery of the global economy, improved consumer sentiment and return of adequate
liquidity in the financial system. The revival of the auto industry was initially driven by the fiscal
stimulus programme of the government.
The industry currently accounts for almost seven per cent of India’s gross domestic product (GDP)
and employs about 19 million people, both directly and indirectly. The ever-increasing development
in infrastructure, big domestic market, increasing purchasing power and stable government
framework have made India a favourable destination for investment, as per the vision of Automotive
Mission Plan (AMP) 2006–2016.
Market Size
The Indian auto-components industry can be broadly classified into the organised and unorganised
sectors. The organised sector caters to the original equipment manufacturers (OEMs) and consists of
high-value precision instruments while the unorganised sector comprises low-valued products and
caters mostly to the aftermarket category.
The Indian auto component industry is expected to register a turnover of US$ 66 billion by FY 15–
16 with the likelihood to touch US$ 115 billion by FY 20–21 depending on favourable conditions, as
per the estimates by Automotive Component Manufacturers Association of India (ACMA). In
addition, industry exports are projected to reach US$ 12 billion by FY 15–16 and add up to US$ 30
billion by FY 20–21.
Revenues for the auto industry in 2014-15 are expected to grow by 11-12 per cent supported by
healthy recovery by major original equipment manufacturers (OEMs) in the medium and heavy
commercial vehicles (M&HCV) and passenger vehicle (PV) segment.
Investments
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during
the period April 2000 – February 2015 were recorded at US$ 12,232.06 million, as per data
published by the Department of Industrial Policy and Promotion (DIPP).
Some of the major investments made into the Indian auto components sector are as follows:
Amtek Auto Ltd has acquired Germany-based Scholz Edelstahl GmbH through its 100 per
cent Singapore-based subsidiary Amtek Precision Engineering Pte Ltd.
MRF Ltd plans to invest Rs 4,500 crore (US$ 711.16 million) in its two factories in Tamil
Nadu as part of its expansion plan.
Uno Minda has formed a joint venture with Kosei Aluminum Co. Ltd, a Japanese alloy wheel
maker, to manufacture and sell alloy wheels in India. This new project will set up a total
investment of Rs 200 crore (US$ 31.61 million), with Uno Minda holding a 70 per cent stake
and Kosei Aluminum 30 per cent.
German luxury car maker Bayerische Motoren Werke AG’s ( BMW ’s) will set up a local
sourcing parts from at least seven India-based auto parts makers in response to promote
‘Make in India’.
Motherson Sumi Systems Ltd has acquired assets of German auto parts maker Scherer &
Trier GmbH & Company KG of US$ 44.8 million, which includes two factories, one each in
Germany and Mexico. The acquisition will be made through its Netherlands-based subsidiary
Samvardhana Motherson Automotive Systems Group BV.
Hero MotoCorp is investing Rs 5,000 crore (US$ 790.22 million) in five manufacturing
facilities across India, Colombia and Bangladesh, to increase its annual production capacity
to 12 million units by 2020.
Suzuki Motor Corp. plans to plant automobiles for India and Africa. It also aims to introduce
10 new models in India and aims to control 50 per cent of the local passenger car market by
2020.
Government Initiatives
The Government of India’s Automotive Mission Plan (AMP) 2006–2016 has come a long way in
ensuring the growth of this sector in the global market. It is expected that this sector's contribution to
the GDP will double reaching a turnover of US$ 145 billion in 2016 due to the government’s special
focus on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto
components. Also, the deregulation of FDI in this sector has helped foreign companies to invest huge
amounts in India.
“The government has instilled confidence in the market with assurance of positive policy changes.
We hope that by the fiscal year 2014–15, capacity utilisation will go up to 90 per cent," said Mr
Harish Lakshman, President, ACMA.
Road Ahead
The rapidly globalising world is opening new avenues for the transportation industry, generating the
need for more efficient, safe and reliable modes of transportation, which is subsequently adding to
the auto component industry’s growing opportunities. According to a report by the Confederation of
Indian Industry (CII), the Indian auto component industry is set to become the third largest in the
world by 2025. Also, by that time, newer verticals and opportunities for component manufacturers
will open up as the automobile market will shift towards electric, electronic and hybrid cars, and
newer technologies will have to be adopted via systematic research and development.
Indian auto component makers are well positioned to benefit from the globalisation of the sector as
exports potential could be increased by up to four times to US$ 40 billion by 2020.
Exchange Rate Used: INR 1 = US$ 0.0157 as on April 28, 2015
References: Media Reports and Press Releases, Department of Industrial Policy and Promotion
(DIPP), Automotive Component Manufacturers Association of India (ACMA), Union Budget 2014-
15, Confederation of Indian Industry (CII)
The Automotive Component Manufacturers Association of India (ACMA) is the nodal agency
for the Indian Auto Component Industry.
Its active involvement in trade promotion, technology up-gradation, quality enhancement and
collection and dissemination of information has made it a vital catalyst for this industry's
development. Its other activities include participation in international trade fairs, sending trade
delegations overseas and bringing out publications on various subjects related to the automotive
industry.
ACMA is represented on a number of panels, committees and councils of the Government of India
through which it helps in the formulation of policies pertaining to the Indian automotive industry.
For exchange of information and especially for co-operation in trade matters, ACMA has signed
Memoranda of Understanding with its counterparts in USA, Canada, UK, France, Italy, Spain, Japan,
South Korea, Malaysia, Uzbekistan, Pakistan, Australia, Egypt, Iran, Tunisia, and South Africa,
Thailand and Scandinavia.
ACMA represents over 479 companies, whose production forms a majority of the total auto
component output in the organized sector. In the domestic market, they supply components to
vehicle manufacturers, Tier-1 suppliers, to state transport undertakings, defense establishments, and
railways and even to the replacement market. A variety of components are being exported to OEMs
and aftermarkets worldwide.
The industry has been exporting around 15% of its output and growing at the rate of 30%. In the year
2003-04, industry has exported US$ 1 billion versus US$ 760 million in year 2002-2003. Principal
export items include replacement parts, tractor parts, motorcycle parts, piston rings, gaskets, engine
valves, fuel pump nozzles, fuel injection parts, filter & filter elements, radiators, gears, leaf springs,
brake assemblies & bearings, clutch facings, head lamps, auto bulbs & halogen bulbs, spark plugs
and body parts.
Society of Indian Automobile Manufacturers (SIAM) is the apex Industry body representing 38
leading vehicle and vehicular engine manufacturers in India.
SIAM is an important channel of communication for the Automobile Industry with the Government,
National and International organisations. The Society works closely with all the concerned stake
holders and actively participates in formulation of rules, regulations and policies related to the
Automobile Industry.
SIAM provides a window to the Indian Automobile industry and aims to enhance exchanges and
communication expand economics, trade and technical cooperation between the Automotive Industry
and its international counterparts.
With its regular and continuous interaction with international bodies and organizations it aims to
facilitate up gradation of technical capabilities of the Indian Industry to match the best practice
worldwide.
SIAM also interacts with worldwide experts to assess the global trends and developments shaping
the Automotive Industry. It has been actively pursuing issues like Frontier Technologies viz.
Telematics: Promotion of Alternative Fuels including Hydrogen Energy for automotive use through
cell vehicles and Harmonization of Safety and Emission Standards etc.
Dissemination of information is an integral part of SIAM'S activities, which it does through various
publications, reports, seminars and conferences.
SIAM organizes the biennial Auto Expo series of trade fairs in co-operation with Confederation of
Indian Industry (CII) and Automotive Component Manufacturers Association of India (ACMA).
SIAM has been striving to keep pace with the socio-economic and technological changes shaping the
Automobile Industry and Endeavour to be a catalyst in the development of a stronger Automobile
Industry in India.
India is the second Largest Producer of Motorcycles in the world after China
This study analyzes the $135 billion world gear industry. It presents historical demand data for the
years 1998, 2003 and 2008, and forecasts for 2013 and 2018 by product (gear assemblies, individual
gears), market (e.g., motor vehicles, machinery), source (OEM, aftermarket), world region (e.g.,
Asia/Pacific, North America, Western Europe) and for 21 countries.
The study also considers market environment factors, details industry structure, evaluates company
market share and profiles 40 industry participants, including General Motors, ZF Friedrichshafen and
Volkswagen.
India based Bombay Industries is one of the leading manufacturer suppliers and exporter of a wide
range of high quality tractor parts, tractor accessories, agriculture implements and fabricated
equipment. We specialize in farm tractor parts, lawn tractor parts, tractor spare parts, garden
tractor accessories and spars for the highly reputable Mahindra Tractor.
Tractor spare parts like 3 Point Linkage, Chassis Components, Chassis Parts, Engine
Components, Hydraulic Parts, Agricultural Implements, Tractor Trolleys, transmission gears
and shafts, engine gears, differential bevel gears, steering shafts and steering gears, engine
connecting rod, crankshafts, axle shafts and a range of other replacement parts for tractors like ford,
international, Zetor, Ursus, Zetor super, Eicher, Duetz and Russian Belarus.
SECTION B : COMPANY PROFILE
VISION
To stimulate and nurture the intrinsic desire in people to learn, grow and enhance performance to
achieve success and growth.
RANE GROUP
PROFILE
Started Manufacturing from 1959
Strategic Technical Alliance
Access to best technology
Group turnover of 538 million USD for the year 2012 – 13
Preferred supplier to major OEMs in India and Abroad
Serves a variety of industry segments: Passenger Cars, Multi Utility Vehicles, Light
Commercial Vehicles, Medium & Heavy Commercial Vehicles, Farm Tractors, Three-
wheelers, Two-wheelers and Stationary Engines
TECHNOLOGY
Rane Group partners with a wide spectrum of auto majors to provide concept to product
solutions. This is made possible by well integrated design, manufacturing & testing facilities
at each of the group companies.
Being manufacturers of safety and critical components, technology development has been a
focus area in all the Rane Group companies. Rigorous testing, continuous up gradation of in-
house technology and support from strategic development partners has enabled Rane to
enhance technical competencies at all levels.
Leverage the technology portfolio of our 3 major partners – TRW, NSK and Nisshinbo.
With a vision to become technologically self sufficient, we are steadily increasing our R&D
Investments – from 0.5% of sales in the past to 1.5 % in the future.
Technologies developed in recent past – Hydrostatic Steering Unit, New generation pumps-
drooping flow, Seat belts-Pre-tensioner & Child restraint, Tilt & Telescopic column with
integrated collapse, NVH reduction and lower telescopic load and Electric Power Steering.
MILESTONE
From a distributor of automobiles and auto components, to the winner of the most coveted quality
awards for manufacturing.
Rane Brake Lining Limited wins Deming Grand Prize (formerly JQM)
2013 Rane TRW Steering Systems Limited – Occupant Safety Division (OSD)
commenced manufacturing of Airbags
2012 Rane (Madras) Limited wins Deming Grand Prize (formerly JQM)
2011 Rane TRW Steering Systems Limited (SGD) wins Japan Quality Medal (JQM)
1974 Established Kar Mobiles Limited to manufacture Automotive and Large Valves
1959 Diversified into manufacturing and established plant for IC Engine Valves
RML BACKGROUND
Rane (Madras) Limited [RML] plant was commissioned in the year 1984 to manufacture and supply
steering gears and suspension joins and linkages for tractors, commercial vehicles and passenger
cars. Recently hydraulic products are added to the product portfolio. Plant is situated at 140kms from
Bangalore, the factory has a total land area of 88660sqm and a built up area of 22473sqm currently
287 people are employed here.
PROFILE
Inception of manufacturing facilities in the year 1960
Manufacturer of steering & suspension systems for every segment of automobile industry,
namely; Passenger cars, Multi utility vehicles, Light commercial vehicles, Heavy commercial
vehicles and Farm tractors
Branched in Hydraulic products in anticipation of shift in customer requirements
Best in class manufacturing facilities
Strategic Technical partnerships with M/s TRW Inc, USA for Steering Gear Products &
TRW Ehrenreich GmbH & Co., Germany for Steering Linkage Products
Holds major market share in India both in Manual steering gear systems & suspension
systems
Since its inception in 1960, Rane (Madras) Ltd., (RML) has grown to become a leading manufacturer
of Steering and suspension systems for every segment of the automobile industry, viz. Passenger
Cars, Multi Utility Vehicles, Farm Tractors and Small, Light, Medium & Heavy Commercial
Vehicles. Staying in tune with the changing times, RML has now diversified into Hydraulic
products.
RML manufactures manual recirculating ball type steering gear, manual and mechanical rack &
pinion steering gear and hydrostatic steering units (power steering for tractors and off - highway
applicatins). RML is strategically driven by indigenous R&D effort and constant upgradation of its
world class validation facilities.
RML also manufactures steering linkages like tie-rod assemblies, drag link assemblies, inner ball
joints and outer ball joints (for rack & pinion steering gear), suspension linkages like control arms
(upper & lower), suspension ball joints (upper & lower) and hydraulic cylinders for steering
application.
The vision of RML is to be the leader in the domestic Steering business & establish global
presence.
ORGANISATION STRUCTURE
The organization is headed by the President who reports to the Chairman and the Board of Directors.
The President is supported by Plant Heads in operational matters and by functional heads in areas of
Marketing, R&D, HR, Materials, TQM, Finance and IT.
The organization follows a matrix structure. In this structure, in each plant the different functions
administratively report to the Plant Head, while functionally they report to their respective corporate
head.
Chairman
President
Plant Heads
(I, II, III, IV)
Materials (MMD)
R&D
HR
Marketing
Finance & IT
TQM
Figure 3.2: Organization structure
DESIGN
Core design philosophy of “getting it right the first time”
Contemporary computer aided engineering and design applications
Finite element analysis for all critical parts
Vehicle steering system analysis to simulate real life conditions
COMPANY MILESTONES
1960 - Steering linkages
1975 - Re-circulating ball type manual steering gears
1985 - Lower control arms
1995 - Rack & pinion manual steering gears
2000 - Launch of TQM
2006 - Hydrostatic Steering gears
2007 - Hydraulic cylinders
2007 - Won Deming Prize
2008 - Mechanical Rack & Pinion steering gear for EPS
2012 - Won Deming Grand Prize
TECHNOLOGY
The journey to continuously enhance product life and reliability has seen various initiatives in
deploying appropriate product and process technologies. The focus areas are:
Reducing friction
Light weighing
Sealing
Reducing need for service / improving maintainability
MANUFACTURING
The production plants at Chennai (2 plants), Mysore, Puducherry each address a specific industry
segment. Independent manufacturing cells produce specialised high end components.
Chennai plant - Light Commercial vehicle, Heavy Commercial vehicle and Utility vehicles
segments
Mysore plant - Tractor and Commercial vehicle segments, and Hydraulic products
Puducherry plant - Passenger car segments
Varanavasi (Chennai) plant - Exports market
Uttarakhand plant - Caters specifically to the customers in the North of India
PRODUCTS
1. Manual steering gears
Re - Circulating Ball Type Steering Gears Rack & Pinion Type Steering Gears
2. Steering linkages
3. Suspention components
4. Hydraulic products
QUALITY
IS0/TS 16949:2002 certifications for each of its manufacturing locations
IS0 14001 certified plants
OHSAS 18001 certified
Deming Prize winner in the year 2007
Deming Grand Prize winner (formerly JQM) in the year 2012
SECTION C : CORPORATE SOCIAL RESPONSIBILITY
Education: The Company supports the studies of High School girl children and Engineering Polytechnic
students in the rural areas, where our plants are located. Rane established Rane Polytechnic Technical
Campus – A Self financed Polytechnic College to empower students with Technical knowledge and Industry
Specific Skills.
Health: Rane supports hospitals for treatment of chronic and needy patients, apart from promoting rural
health at our plant locations.
Empowerment of Women: Rane supports and promotes Women Self Help Groups at the plant locations
offering better job and self-employment opportunities through Counselling & skills training, so that they can
look forward to a future of hope and advancement.
Eco-friendly: Rane is responsible towards the environment and the surroundings too. The company actively
participates in: Rain water harvesting at Plants, Water Conservation campaigns, Promotion of Watershed
development, Percolation / Irrigation.
PROJECT SUMMARY
Rane Focus Monitoring Start & Amount
Sl Title Objectives
Area Mechanism End Date Spent ( Rs. )
Mid – Day Meal
Program in To provide
01.04.2014
Association with Health / nutritious
1 Daily to 2,00,170.00
Akshaya Patre Education and tasty
31.03.2015
Foundation food
( ISKON ) Mysore.
To provide
Adoption of Children
education to
in Association with Education /
children
2 Jana Jagruthi Rural Community Monthly 01.08.2014 1,45,000.00
until they
Development Society, Develpoment
complete
Mysore.
10th std.
CSR COMMITTEE
[ BOARD / COMPANY / PLANT ]
Working Team
- Mr. Balakrishna ( RML, P 2 )
- Mrs. Misbah ( RML, P 2 )
Objectives of the Mid-Day Meal program by Akshaya Patra Foundation ( ISKON ), Mysore.
Today, India’s Mid-Day meal scheme is one of the largest school lunch program in the world.
104 million children were covered from 1.15 million schools during 2013 - 14.
Total cost per meal is at Rs. 7.25 / meal.
The government provides a subsidy of Rs. 4.10 / meal
The deficit amount Rs. 3.15 / meal borne by Rane Madras Ltd., P2
Koorgalli Government Higher Primary School Having a combined strength of about 267 students
from 1st to 7th standard.
Standard 1 2 3 4 5 6 7
Total No. of students per class 17 32 44 44 46 51 53
Total No. of Students i.e. 267 X Rs. 3.15 / Meal X 238 Approximate days in a year =
Rs. 2,00,170.00 . The Payment to the foundation is made on a quarterly basis.
VII . LEARNING EXPERIENCE
It was a life time experience, the learning was immense and it is a memory that I will cherish in my
professional life. It broke the barrier between the theoretical learning and practicality in the industry.
I learned about the level of efforts that go into executing a program at the corporate level and how it
takes a set of people to come together to achieve milestones, goals and visions of an organization.
CSR is new in the industry and our learning was just as new as the company. The said company’s
Mid Day Meal program that was associated with the Akshaya Patre Foundaton ( ISKON ) Mysore,
gave is a thoughtful insight about the key factors that are involved in reaching out to provide food for
the students of various schools, the process from acquiring the rice and other food material till the
delivery of the food to the school are huge, it looks easy outside or it is a program where critics
review, but the effort that goes into it is mind blowing, hats off to the foundation APF removed that
the perception about the mid day meal program and created a huge respect and admiration to the
work that goes in.
Rane ( Madras ) Ltd., Plant 2 had a very pleasant working environment and our external guide in the
company Mrs. Misbah ( Assistant HR Manager ) was very supportive and it was the first time that
she had Interns for the role of learning CSR.
Initially in our first week of learning, I was briefed upon how the selection towards the CSR program
happens and the HR policies towards CSR as a company initiative.
As I got into the flow of learning, My perspectives changed towards the society and its needs. We
have so much and yet we complain about not having things. CSR opened my principles to a whole
new level.
CSR is more than just a program it is a Responsibility everyone carries towards a greater good of the
society.
My conclusion would be that , in this competitive world , CSR is the catalyst or the game changer to
judge the ethics, values and principles a company follows. CSR in the long run create a huge impact
towards creating a better standard of living for people. I believe that CSR would be the reason for
creating sustainable growth and a benchmark in our present economic situation.