varroc sustainability report sme eng

ENVIRONMENT

SOCIAL

ECONOMIC

ENVIRONMENT

SOCIAL

ECONOMIC

ENVIRONMENT

SOCIAL

ECONOMIC

We are committed to serve the society

by adding value to the customers,

employees, the shareholders

and the community at large in terms of:

Providing customer satisfaction,

offering reliable products

and services at competitive prices.

Providing an environment, conducive

to the development,

growth and satisfaction of employees

while fulfilling their reasonable aspirations.

Providing adequate returns to the

shareholders while nurturing

business growth. Contributing to the

wellbeing of the society and

conducting ourselves as a responsible

corporate citizen, known for

integrity and ethics.

CORPARATE PURPOSE / VISION

Varroc aims to become

global player in the business

of component supplies to

automobile and white goods

industry across India and

select foreign markets

like USA, Europe and China,

growing at 25% CAGR

with 10% of the value of

products being exported

by the year 2009.

CORPORATE MISSION

STATEMENT

ENVIRONMENT

SOCIAL

ECONOMIC

Varroc

Engineering

Pvt. Ltd.

Durovalves

India Pvt

Ltd.

Varroc

Lighting

Pvt Ltd.

Aurangabad –Plant I

Aurangabad –

Plant III

Aurangabad –

Plant IV

Pune – Plant INCR–Delhi -

Plant I

Varroc

Trading

Pvt. Ltd.

Aurangabad–Plant V

Aurangabad –

Plant IIPune – Plant II

Pune – Plant III

NCR-Delhi –Plant II

Aurangabad–

Plant VII

Varroc

Exhaust

System

Pvt Ltd.

Metallic Division

Trading

Polymer Division

Electrical Division

Varroc

Elastomer

Pvt. Ltd.

Pharolla–Plant VIII-MHPL

Pantnagar –

Plant

IMES

Poland

Sp.z.o.o.,

Poland

IMES

S.p.a.,

Italy

Varroc Group Overview

ENVIRONMENT

SOCIAL

ECONOMIC

2005

Moulding

Plant in Pune

2004

• Paint Shop

•Cold Forging•Crank Pins

2003

Greater. Noida Plant

2002

•Automotive

Lights•Rear View

Mirrors

2001

•Electrical Ignition

Systems.•AC Generators,

Starter/Wiper Motors.•Engine Valves

Multi layered Sheet

Extrusion

1998

Start of

Operations asT1 to Bajaj

Auto Ltd.

1995 2007

•Switches

•Moulding Plant in Binola

•EOU of Engine Valve•Catalyst

•Electrical Plant at Chakan

1990

•Plant at

Pantnagar•Varroc

Elastomer

2006

.Acquisition of

IMES, Italy .Acquisition of

IMES ,Poland

Important Milestones

ENVIRONMENT

SOCIAL

ECONOMIC

Polymer

• Interior & Exterior Trims

• Underbody/HVAC Parts

• Radiator/ Engine Parts

• Inj. Molded Plastic &

rubber components.

•Mirror assembly & Mirror

Plates

•Air Cleaner Assy.

• PU Foam Pad &

Seating System Assy.

•Multi layer co-extruded

thermoplastic sheets.

•Molding for White Good

& consumer electronic

components

• Series Moulds & Pre

production Moulds.

Polymer

• Interior & Exterior Trims

• Underbody/HVAC Parts

• Radiator/ Engine Parts

• Inj. Molded Plastic &

rubber components.

•Mirror assembly & Mirror

Plates

•Air Cleaner Assy.

• PU Foam Pad &

Seating System Assy.

•Multi layer co-extruded

thermoplastic sheets.

•Molding for White Good

& consumer electronic

components

• Series Moulds & Pre

production Moulds.

Electrical

• AC Generators

• Digital CDI

• Digital Regulator

Rectifier

•Starter/ Wiper Motors

•Switch Assemblies &

handle bar assemblies

for motorcycles

•Lighting systems for

motorcycles

•ECU

•Body part motors

Electrical

• AC Generators

• Digital CDI

• Digital Regulator

Rectifier

•Starter/ Wiper Motors

•Switch Assemblies &

handle bar assemblies

for motorcycles

•Lighting systems for

motorcycles

•ECU

•Body part motors

Metallic

• Engine Valves

• Crank Pins

• Piston pins

• Hot, Cold & Warm

Forged Machined

Parts

• Catalyst for 2W

& 3W.

Metallic

• Engine Valves

• Crank Pins

• Piston pins

• Hot, Cold & Warm

Forged Machined

Parts

• Catalyst for 2W

& 3W.

Product Range

ENVIRONMENT

SOCIAL

ECONOMIC

ORGANISATIONAL PROFILE

Varroc Engineering Pvt Ltd – Waluj Plant VII, a group company of Varroc Engineering, is a fairly young unit,

started in 2005, mainly engaged in manufacturing of Engine valves and cold & warm forged components.

The company is located at L-4 in MIDC industrial area in Waluj, Aurangabad. The company has started it’s operations

in 2005 and a turnover of approx. 50.0 Cr is expected in current financial year. 327 number of employee are

working in company. ISO/TS 16949 Certification received in reporting period

This is a private limited company and a subsidiary of the renowned Varroc Group. A young and very dynamic

entrepreneur Mr Tarang Jain is the owner of this group and is MD of this unit.

ENVIRONMENT

SOCIAL

ECONOMIC

Varroc Group is a anto-ancilary group started in 1995 in Aurangabad observing a steady growth of 40-45% CAGR.

Presently the group is having total 19 units located at Aurangabad, Puna, Delhi & Uttarachal with 2 recently acquired

units in Italy & Poland. This financial year we are expecting a group turnover of 450 Mi USD.

The group has basically divided it’s activity in 3 main divisions – Polymer, Electrical & Metallic with a arm of

separate Trading company for aftermarket support.

ENVIRONMENT

SOCIAL

ECONOMIC

Varroc Engineering Pvt Ltd – Waluj Plant VII, is a plant mainly engaged in manufacturing of Engine Valves and Cold &

Warm forged products. This plant is mainly oriented for export in Europe for global OEM customers like General

Motors, Daimler Chrysler – Mercedes Benz, VW-Audi, Fiat, Remi etc.

With a plot area of approx 72000 Sq.M., at present we have a built up work area nearly 25000 Sq.M. Presently we

are having a capacity of 4.5 Mi Valves PA which is under expansion and soon by Oct 2007 we will be at a level of 9.5

Mi valves PA.

ENVIRONMENT

SOCIAL

ECONOMIC

ENVIRONMENT

SOCIAL

ECONOMIC

Operational structure

Mr.Srivastava

DGM

Plant Head

WP7

Mr.Sundar

Sr.Manager Prod

Mr.Jabde

Exe.Plating

Mr.Patil

MR. WP7

Mr.Belpathak

Manager HR

Mr.Dingare

GM

Plant Head

Mr.Suman

Dy Manager Prod

Mr.R.G.Padhye

Manager

Engg

Mr.Sheriff

Dy.Manager prod

Mr.Vijay Khonde

Dy Manager Maint

Mr. Salokhe

MR –Duro

Valve

ENVIRONMENT

SOCIAL

ECONOMIC

Vision Statement for Sustainability Management

Varroc being a corporate citizen understands

and beholds its responsibility towards

sustainability concerns and enhance its stake

holder's needs by adding environmental &

social value through business functions.

ENVIRONMENT

SOCIAL

ECONOMIC

EN1- MATERIAL USED BY WEIGHT OR VOLUME :-

PART-I

Raw material used by weight ( EN1)

Material consumption type wise

RAW MATERIALS

RAW MATERIAL

CONSUMPTION ( Tones )

(Year 2006-2007)

En-52 VALVE STEEL 34.32

21-4N VALVE STEEL 27.48

X45CRSI93 VALVE STEEL 3.29

VA-63 VALVE STEEL 0.3005

VM 22 VALVE STEEL 0.0973.53

SUH-3 VALVE STEEL 1.136

WT-6 1/8"DIA 2 VALVE STEEL 0.258

21-2N VALVE STEEL -

ENVIRONMENT

SOCIAL

ECONOMIC

PART-II

Associated process material – A class item

MATERIAL DESCRIPTION UNITS (Year 2006-2007)

GRINDING WHEEL NOS. 985

CUT OFF WHEEL NOS. 1088

DIE FOR TPB-1673 NOS. 7

VALVE FORGING DIE NOS. 14

BOTTOM DIE NOS. 72

ORDINARY DIE NOS. 5

COLLETS NOS. 401

DIAMOND DRESSER NOS. 1773

INSERTS NOS. 7967

CARBIDES TIPS NOS. 213

OIL & LUBRICANT-CIMSTAR MB 602 LIT. 2890

MAGNA BD 68 OIL LIT. 835

BLASOCUT KOMBI OIL LIT. 5

SERVO CUT - 945 OIL LIT. 1450

SERVO SYSTEM 220 OIL LIT. 682

SERVO SYSTEM HLP-46 OIL LIT. 1890

ENVIRONMENT

SOCIAL

ECONOMIC

QUENCHING OIL C 32 M (DS ) LIT. 880

METSIL AL SUPER AL M (SERVO CU LIT. 780

HARMONY AW 68 AL M (MAGNA BD68 LIT. 72

EP LUBRICANT HD 220 M (DS) LIT. 65

SPIN 12 AL M ( SPIN - 12 ) LIT. 196

HARMONY AWT 32 M(DS)( HLP-32 ) LIT. 2100

RUSTILO DWX-32 LIT. 2505

RUSTILO DW 950 OIL LIT. 425

OIL SERVO SPIN - 12 LIT. 1309

OIL SERVO SYSTEM - HLP 32 LIT. 1547

SERVO QUENCH C-11 OIL LIT. 1022

AQUA QUINCH -700 LIT. 10

ENVIRONMENT

SOCIAL

ECONOMIC

EN3 :- DIRECT ENERGY CONSUMPTION BY PRIMARY ENERGY SOURCE

Energy consumption , their sources ( EN3 )

Details of energy consumed in varroc plant VII

Particulars

Power & diesel consumption

1) Electricity (Year 2006-2007)

a) Purchased units ( KWH ) 1949656

b) Diesel consumption (Ltrs) 41392

En5 :- energy saved due to conservation & efficiency improvements.

Following Energy saving activities are carried out :-

Auto off circuit is prepared & installed on 16 machines, which are having

Connected power of more than 5kw. If the operator leaves his place for any reason & m/c Is not

attended more than 5 min, then m/c will automatically turn off, their by avoiding Wastages of

electrical energy, this activity is having potential of saving 6100 units ( KWH )Power per Following

Energy saving activities are carried out :-

Auto off circuit is prepared & installed on 16 machines, which are having

ENVIRONMENT

SOCIAL

ECONOMIC

Connected power of more than 5kw. If the operator leaves his place for any reason & m/c Is not

attended more than 5 min, then m/c will automatically turn off, their by avoiding Wastages of

electrical energy, this activity is having potential of saving 6100 units ( KWH )Power per month.

We have planned to deploy this activity horizontally on new project m/c.We will be continuous in

search of energy saving opportunities & energy efficiency enhancement of the equipment month.

We have planned to deploy this activity horizontally on new project m/c.We will be Continuous in

search of energy saving opportunities & energy efficiency enhancement of the equipment .

1) In our manufacturing processes heat treatment area is major consumer

of power. Electrically heated pit type furnaces are being used for hardening &

Solutioning processes, these furnaces are batch type & less energy efficient

For our new upcoming project we have planned for continuous mesh belt type

Furnaces, which are more energy efficient.

2) We have installed roof ventilators on our building tops, using wind as a driving

Energy. Total quantity of ventilation is 372,for which no electrical

power is required.

Velocity of wind is used to rotate the fan blade & ventilation is effected.

To set the same effect in conventional way, 192 nos. of electrical exhaust fans were

Required of 0.45 kw each. This means 192 * 0.45 = 86.4 kw of power is saved &

86.4*24*26

ENVIRONMENT

SOCIAL

ECONOMIC

(kw)*(no.of hrs)*(working days) = 53913 units ( KWH) of power is saved per month,

Which would have cost to company around 2,42000 per month.

EN8 :- Total water withdrawal by source

Main source of water is MIDC water connection.

Mains consumer of waters are :-

1) Drinking & sanitation

2) Plating plant / phospeting plant

3) Water cooling system

4) Gardening

Consumption of water is shown in attached fig.

Particulars (Year 2006-2007

Water (in mtr.cub) 37723

EC5-e of ratios of standard entry level wage compared to local minimum wage at significant

locations of operation.

The company while deciding the remuneration package/ wages takes into consideration the following

items.

ENVIRONMENT

SOCIAL

ECONOMIC

1 Employment scenario

2. Banchmark with other industries

All the employees working in Varroc are paid more than minimum wages . Lowest grade of employees are

getting Rs. 5000/- at a entry level.. The minimums wages applicable to our industry are as under

Table a

SR.NO CATEGORY TOTAL

1 Skilled 3879.40

2 Semi-skilled 3779.40

3 Un-skilled 3679.40

LA1 – Total workforce by employment type , employment contract and region

All the employees working at Varroc are on the Pay roll of the company and the age of retirement is 60

years. The employees can leave the organization by giving one month notice either side. Casuals are used

only for Housekeeping , Security & Gardening. While doing the recruitment we are not considering region ,

cast .all are give equal opportunity. Pl. refer Table No b for employment type.

Table b

Varroc Employees - Sept .2007

Valve Div T S1 S2 T Sup O1 O2 E M1 M2 M3 M4 M5 M7 Total

Operations 2 1 3

ENVIRONMENT

SOCIAL

ECONOMIC

PreMachining Cell 56 15 4 2 2 1 80

Prod - Export Cell 42 18 1 3 1 65

Prod - Fiat Cell 134 1 1 7 1 1 3 1 149

Engineering 1 1 1 1 1 5

2 1 3 2 1 9

Quality Assurance 5 3 2 3 3 1 17

Chrome Plating 6 2 1 2 11

TPM 1 1

Maintenance 2 4 2 1 1 1 1 12

H R 1 1 1 3

Accounts 1 1 1 1 4

Purchase 1 1 1 3

IT & SAP 1 1 2

Stores 1 3 1 1 6

D C CELL Maint 1 1 2

A. TOATAL 249 45 9 10 22 13 12 3 3 2 3 1 0 372

LA2- Total number and rate of turnover by age group, gender and region.

As Varroc is one of the preferred employer in Aurangabad turnover of the employees is negligible .

details are as under.

ENVIRONMENT

SOCIAL

ECONOMIC

Table c

Month Turnover %

Apr-06 0.52

May-06 0.02

Jun-06 0.00

Jul-06 0.01

Aug-06 0.04

Sep-06 0.00

Oct-06 0.03

Nov-06 0.03

Dec-06 0.00

ENVIRONMENT

SOCIAL

ECONOMIC

JAN-07 0.01

FEB.07 0.01

MAR.07 0.01

APR.07 0.01

MAY.07 0.04

June.07 0.01

July.07 0.02

Aug.07 0.01

LA3-Benefits provided to full time employees that are not provided to temporary or part time

employees ,by major operations.

As mention in LA1 all employees are on the roll of Company. Following are the some benefits provided to

the employees.

ENVIRONMENT

SOCIAL

ECONOMIC

1. Transport Facility

2 .Uniform

3. Personal accident policy

4. Marriage gift

5. Birthday gift

6. Annual get together

7. Festival advance

8. Medical

LA 7 Rate of injury , occupational diseases , lost days and absenteeism , and number of work

related facilities by region.

We can proudly say that our company is zero accident factory. Not a single day is lost due to the

accident. All the employees are provided with PPE like safety gloves, helmets, Ear plug, safety

goggle, etc.All the security personal are trained in fire fighting and first – aid. we monitor

Absenteeism in positive way rather than negative way. Leave quota is fixed as per grade .

Following is a monthly trend of availability of manpower.

Table d

Report of Attendance Details

Sr. No Month

NO. of Employee Attendance %

1 Apr.07 422 92.97

2 May.07 413 92.95

ENVIRONMENT

SOCIAL

ECONOMIC

3 Jun.07 425 94.98

4 Jul.07 424 94.71

5 Aug.07 435 93.93

LA10 Average hours of training per year per employee by employee category.

A separate Corporate Training dept. is there to take care of training of each plant with the coordination with

Plant HR. Internal and external training programmes are arrange on the basic of competency mapping and

the business requirements. Following are the details of training man hours.

Table e

Month

Training in

Man

Hours

Apr 07 465

May 07 204.5

June 07 161

July 07 719.5

Aug 181

LA11 Programs for skills management and lifelong learning that support the continued

employability of employees and assist them in managing career ending.

All the employees working are trained in many manner so they can use the same in their life. On

job training is carried out for the employees working at shop floor , we see that every employee is

ENVIRONMENT

SOCIAL

ECONOMIC

multi skilled to have continued employability. His skill matrix is displayed at shop floor and

monitored .

LA 12 Percentage of employees receiving regular performance and career development reviews.

All the employees irrespective of grade are reviewed in the month of June every year , based on their

performance . Performance is reviewed on the basis of KRA , which are fixed during the start of the year.

Increment / Promotion are awarded on the basis of performance only. This performance is reviewed by

Plant Head and Business Head.

CHILD LABOUR

HR6- No child labor

As per factory act 1948, the min. age required for employment is 18. Varroc engages no child labor.

The recruitment process requires furnishing of appropriate proof age to ensure the age bar is complied with

no person below the age of 18 may be engaged by contractor, suppliers or vendors at any point within or

out side of company premises.

varroc sustainability report sme eng

Documents