AN ANLAYSIS OF

“EMPLOYEE ATTRITION RATE”

With special reference to

“TATA CHEMICALS LTD”

Project report submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

ANANTAPURAMU

In partial fulfilment of the requirement for the

Award of the degree

“MASTER OF BUSINESS ADMINISTRATION”

By
SAI DHANYA S PILLAI
Reg. No: 152G1E00B0
Under the valuable Guidance of

Dr. V.PURENDRA PRASAD

DEPARTMENT OF MANAGEMENT STUDIES

ANANTHA LAKSHMI INSTITUTE OF TECHNOLOGY&SCIENCES

(Affiliated to J.N.T.University, Anantapuram
 ANANTHALAKSHMI INSTITUTE OF
TECHNOLOGY & SCIENCES
(Affiliated to J.N.T.University, Anantapur)
BONAFIDE CERTIFICATE
This is to certify that the project titled “EMPLOYEE ATTRITION
RATE” with special reference to TATA CHEMICALS LTD has been
submitted by SAI DHANYA S PILLAI, Reg.no:152G1E00B0
towards the partial fulfilments of the requirement for the award of the
degree, Master of Business Administration in the Department of
Management Studies from “ANANTHA LAKSHMI INSTITUTE OF
TECHNOLOGY & SCIENCES”, Anantapuramu, during the academic
year 2015-2017

Project supervisor: HEAD OF THE DEPARTMENT

Dr.V..PURENDRA PRASAD MR.E.NAGAPRABHAKAR

(H.O.D)
 DECLARATION
I hereby declare that this project report titled “EMPLOYEE

ATTRITION RATE” at TATA CHEMICALS PVT LTD” is original and

bonafide work done by me for the partial fulfilment of the requirement for

the award of the degree, MASTER OF BUSINESS ADMINIISTRATION

submitted to the JAWAHARLAL NEHRU TECHNOLOGICAL

UNIVERSITY ANANTAPURAMU under the guidance of

Dr. V PURENDRA PRASAD Faculty member and has not been copied

from any earlier reports. The empirical conclusion and finding on this report

are based on the information collected by me.

Place: (SAI DHANYA)

Date:
 ACKNOWLEDGEMENT

This project report titled “EMPLOYEE ATTRITION RATE” with

special reference to TATA CHEMICALS LTD is original and bonafide work.

I express my gratitude to Mr M. ANANTHA RAMUDU, Chairman,

ANANTHALAKSHMI INSTITUTE OF TECHNOLOGY & SCIENCES ,

Anantapuramu.

My sincere thanks to Mr M. RAMESH NAIDU, CEO ANANTHALAKSHMI

INSTITUTE OF TECHNOLOGY & SCIENCES, Anantapuramu.

I profusely thank Dr B. RAMESH BABU, Principal,

ANANTHALAKSHMI INSTITUTE OF TECHNOLOGY & SCIENCES ,

Anantapuramu.

My profound thanks to Mr E. NAGAPRABHAKAR, HOD,

Department of Management Studies, ANANTHALAKSHMI INSTITUTE
OF TECHNOLOGY & SCIENCES, Anantapuramu.

I am extremely grateful to my project guide

Dr V.PURENDRA PRASAD Asst. Prof., the faculty and other faculties,
Department of Management Studies for their valuable suggestions.

I am extremely thankful to My Parents and My Friends who helped

me a lot while doing this project work.
A STUDY ON EMPLOYEE ATTRITION
WITH REFERENCE TO
TATA CHEMICALS LIMITED

Tata Chemicals Limited

Chemical Manufacturer

Address: C/O, Nav Teja Marketing Pvt Ltd 7-20,

Sanath Nagar, Moosapet, Hyderabad,
Telangana 500018
Phone: 092465 02229
 CONTENTS

CHAPTER TITLE PAGE NUMBER

I INTRODUCTION

II RESEARCH METHODOLOGY

 NEED FOR THE STUDY

 SCOPE OF THE STUDY

 OBJECTIVES OF THE STUDY

 RESEARCH DESIGN

 LIMITATIONS OF THE STUDY

III INDUSTRY & COMPANY PROFILE

IV DATA ANALYSIS & INTERPRETATION

V FINDINGS, SUGGESTONS & CONCLUSION

VI BIBLOGRAPY & ANNEXURE

 CHAPTER-1

INTRODUCTION
ATTRITION:

In a human resources context, turnover or labor turnover is the rate at which

an employer gains and losses employees. Simple ways to describe it are "how long

employees tend to stay" or "the rate of traffic through the revolving door." Turnover is

measured for individual companies and for their industry as a whole. If an employer is

said to have a high turnover relative to its competitors, it means that employees of that

company have a shorter average tenure than those of other companies in the same

industry. High turnover can be harmful to a company's productivity if skilled workers are

often leaving and the worker population contains a high percentage of novice workers.

WHAT IS ATTRITION?

Attrition has been a major concern for most of the companies in the current competitive
scenario.

The word Attrition means, a reduction in the number of employees through resignation or
separation at the employees will. Retirement, VRS and employee leaving due to end of
contract are not considered as attrition.

Attrition rate is the rate of shrinkage in size or number. It is the mathematical

representation of the attrition in a particular organization or an institution.

Attrition leads to dual loss to an organization:

 Firstly, company loses on a talent and thus costs incurred on them are a waste.
 Secondly it employees a new employee and thus needs to incur costs on them.

Thus the following costs:

  RECRUITMENT COST

The cost to the business when hiring new employees includes the following six
factors plus 10 percent for incidentals such as background screening:

 Time spent on sourcing replacement

 Time spent on recruitment and selection

 Travel expenses, if any
 Re-location costs, if any n Training/ramp-up time
 Background/reference screening

 Recruitment cost for the new recruit to replace the employee leaving

A. Training and development cost

To estimate the training and development costs, the expenses incurred on training of
the employee who is leaving should be taken as well as that to be incurred to train the
new employee is also to be considered.
To estimate the cost of training and developing new employees, cost of new hires
must be taken into consideration. This will mean direct and indirect costs, and can be
largely classified under the following heads:

 Training materials

 Technology
 Trainers’ Time
B. Administration cost

They include:

 Set up communication systems

 Add employees to the HR system

 Set up the new hire’s workspace
  Set up ID-cards, access cards, etc.

Thus it can be clearly evident from the above that loosing an employee causes an
organization a large amount of expenses. An organization thus tries to retain its work
force.

REASONS FOR ATTRITION

Form the exit interview forms and the comments of the HR Manager the overall reasons
for attrition can be summarised as follows:

 Better prospects outside TATA CHEMICALS LIMITED in terms of salary and

responsibilities,
 Lack of Team spirit,
FACTORS LEADING TO ATTRITION
 No career growth,
 No role clarity,
 Attrition due to competition,
 Lack of support from Superiors.

INDIVIDUAL ORGANIZATIONAL
Below is a representation of the reasons of attrition at TATA CHEMICALS LIMITED in
the form of a chart:

BETTER ROLE RELATED OTHERS

REASONS FOR ATTRITION

PROSPECTS

LACK OF STYLE OF BOSS

PARENTS /
FREEDOM
SPOUSE MOBILITY

NO LEARNING CULTURAL
HIGHER MISMATCH
EDUCATION
MONOTONOUS NO GROWTH/
JOB STAGNATION

NO ROLE CLARITY PAY PACKAGE

ROLE DIFFERENT
THAN DEFINED

JOB/ROLE STRESS
RETAINING THE EMPLOYEES
Employees today are different. They are not the ones who don’t have good opportunities
in hand. As soon as they feel dissatisfied with the current employer or the job, they switch
over to the next job. In prominent Indian metros, there is no dearth of opportunities for
the best in the business, or even for the second or the third best.

Importance of retaining employees remains the same irrespective of the size of the
organization, its nature of business or the country of operation. The only difference lies in
realizing the fact that frequent employee attrition means there is something, which needs
immediate attention and cure.

Employee Retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. It involves being sensitive to people's
needs and demonstrating the various strategies in the five families detailed in Roger
Herman's classic book on employee retention, Keeping Good People.

 Compensation: It is said that money isn't a motivator, but it is an effective de-

motivator. The employees always have high expectations regarding their
compensation packages. So an attractive compensation package plays a critical
role in retaining the employees.

 Growth: No one joins an organization to just do the same work till the end of his
career. If an employee does not see growth in his own organization, there are high
chances that he might opt for leaving the organization. So such strategies must be
framed where an employee can see his bright future in the company.

 Relationship: The management is sometimes not able to provide an employee a

supportive work culture and environment in terms of personal or professional
relationships. The organization culture should be such that encourages healthy
relationship between all the employees.
  Support: Sometimes not getting the right kind of support and co-operation also
leads an employee to be frustrated and provokes him to leave the organization.
This should be taken care of by providing healthy work relationships.

 Environmental: An organization needs to have an environment where individuals

learn and get support from colleagues and seniors along with the healthy mixture
of authority and responsibility.

Based on the above five points, a retention strategy can be framed after understanding the
reasons for attrition in a particular organization.

RETENTION MEASURES

At TATA CHEMICALS LIMITED, after analysing the reasons of attrition, it could be

concluded that there are problems related to compensation, growth, work environment as
well as relationships.

In order to reduce the amount of attrition, the HR as well as all the business/division
heads need to join hands and come together and take actions.

The following measures can be taken:

 Designing a competitive compensation package:

Most of the executives at TATA CHEMICALS LIMITED are not satisfied with the salary
that they are being paid. Thus there is a need of a systematic comparison of the
compensation paid at TATA CHEMICALS LIMITED with the market trends. An analysis
should be done keeping in mind the kind and scope of work and the salary packages
offered at TATA CHEMICALS LIMITED and other companies in the same industry. For
this purpose, external help can be taken. There are many agencies which carry out such
research work for organizations. TATA CHEMICALS LIMITED can hire one such
agency for this work.

Thus it would be possible for TATA CHEMICALS LIMITED to provide a very

competitive pay package which would restrict the attrition to some extent.

 Learning Environment:

The seniors in all the divisions should try to create an environment of learning in their
division/department. Knowledge gained should be shared with the others. E.g. If an
individual from the HR department has gone for a training program on Interpersonal
Skills, he should be encouraged to share the contents of the program with his colleagues
through a presentation on the same. The same kind of environment should be created in
the whole organization.

 Career Graphs for employees:

Many of the employees in their exit interviews form have mentioned that they do not see
any personal growth in the organization. Thus it is recommended that the superiors of
employees should take the responsibility to show his subordinate a career graph
projecting his growth in the next 5 years. This would bring enough confidence in the
employee to stay with the company and motivate him to achieve the targets placed before
him.

 Inculcate Team Work:

All the employees need to trained and motivated to work as teams and not individuals.
This can be done with the help of the division heads. They need to bring all the
employees in the particular division together and show them the ultimate goal for which
they all are working. When a combined vision is shown, it plays an important role in
motivating the employees to work together.

 Making employees accountable:

There should be fairness in the working of the company. If an individual has made a
mistake he should be made accountable for it irrespective if his relations with the seniors.
The HR can play a role here by bringing in rules of punishing the offenders.

 Fun at work:

“All work and no play makes Jack a dull boy”. Employees spend almost 8-9 hours of the
day at their work place. It is very important that the employees are given opportunities to
have fun at work. For this, HR can organize gaming events between the various
departments as well as within the various departments. They can have events like chess
tournament, table tennis tournament, quiz competition, best of waste competition etc.
these can be done first at the departmental level and then at the organizational level.

This will enhance their sense of belongingness for their division/function as well as
increase the interaction between and within the departments/divisions.

 Achieving a match between individual and organizational goals:

TATA CHEMICALS LIMITED has at times expected its employees to subsume their
individual objectives before the organisational one. This has forced the employees to
leave. The company thus needs to achieve a balance between the two. This can be done at
the initial level while recruiting the employee only if his / her personal goals can be
aligned to the organizational goals.

 Increasing organisational transparency:

There is a need for transparency in the working of the company. The employees should
be given reasons and answers to the question which arise in to their minds. If this is not
done, they give it the name of a partial environment, start having grudges against others
and spoil the organizational culture.

 Helping employees acquire new skills:

There is an increasing need for keeping the employees up dated about the new techniques
and technologies. Thus there is a need for increasing the number of training programs
which at this point of time are very less. Training signals employees that the organisation
values their contribution, and is willing to invest in upgrading their skills. These would
also mean increase in interaction between the employees which is again a requirement at
TATA CHEMICALS LIMITED.

 Celebrations and Social and cultural Networks:

In some of the surveys and audits it has been found that employees get a sense of
belongingness if the organization encourages some form of social networks, cultural
programs, team celebrations. These can be done with very little investments by
encouraging employees to have picnics, social gatherings, celebrations and festivals etc.
When the person feels at home with a company he would think twice before leaving the
company.

HR at TATA CHEMICALS LIMITED can encourage the formation of different clubs like
the golf club, social service club, sports club, where the employees from all divisions can
register as per their likings. These clubs can then have their own gatherings and
interactions. This would increase the interactions between employees from different
departments.

 Change of Styles through 360 Degree Feedback and Internal Customer

satisfaction Surveys:

Many times the style of manager has been responsible for employees in certain
departments to leave. With supportive managers and Head of departments employees
think several times before they leave. Some managers may not realize that their coercive
style, excessive task centeredness, and the way they assign tasks including the clarity
with which they give instructions, respect etc to employees have tremendous impact on
their staying with the company. Thus a 3600 feedback system can be implemented for the
senior level managers and corrective actions can be taken to improve the problem areas.

The supervisors must be prepared to be collaborative, supportive, and nurturing of their

people. The old style of "my-way-or-the-highway" style of management is a thing of the
past. Most new supervisors need training to understand what it really takes to retain
employees.

 Periodic rewards or gifts for work done:

If an employee is appreciated for the work he does, it acts as a motivating factor for him
to perform well at his work. This ultimately benefits the organization. Thus the
employees should be motivated by appreciation form the senior level. His work can also
be acknowledged by giving him/her a small token of appreciation for the work done.

 Measuring employee satisfaction:

Obsessed with catering to the demands of their external customers, companies ignore
their internal customers. Periodic employee satisfaction surveys can highlight the
potential flash-points, and enable the company to take corrective action.

 Stress Management:

The employees face a lot of stress in their day to day personal and professional life. If the
employees remain stressed out, their efficiency is reduced. So HR can take measures to
reduce this stress level and improve the efficiency. This can be done by organizing
seminars on stress reduction, yoga, one day camps, picnics etc.

Employees should be taught as to how they themselves can fight the stress that they are
experiencing. This would bring a dual advantage to the company. Firstly, the employees
will realise that the company is taking the responsibility of the stress that are
experiencing due to the company’s work. Secondly, their productivity will increase which
will again benefit the company.

 Today’s employees are different. They are the ones who have ample of opportunities.
So if the company wants to retain its employees it has to start taking responsibility of
its employees. HR needs to make the employees realize that they are an important
part of the company. The employees cannot be retained only by giving them high pay
packages. They need to see their own growth and have a feeling of belongingness in
the company.

Employee retention takes effort, energy, and resources. But the results are worth it.
 CHAPTER- 2
LITERATURE REVIEW
REVIEW OF LITERATURE:

1) John Cordery (2006), Strategies for Improving Employee Retention.

Abstract: This report stated that the increasing difficulties in retaining skilled, effective

workers amounted to a looming crisis within the industry, and called for the development

of effective workforce retention strategies within the meat processing industry. It says

selection should be based on job embeddedness as given below:

 Figure 2.1 Selection based on job embeddedness.

Links: Links refer to the formal or informal connections people have, both on and off the

job. The higher the number of links, the more likely an employee will feel attached to the

organization and community to which they belong, and the less likely it is that they will

consider leaving.

Fit: Fit is defined as a person’s perceived compatibility or comfort with an organization

and with his work. The better the fit and the comfort with the community, the higher the

likelihood that an employee will feel attached to his job.

Sacrifice: Sacrifice is defined as the perceived cost of material or psychological benefits

that may be forfeited by leaving one’s job. The more sacrifice has to be made, the more

difficult it is for an employee to break the current links.

2) Allen N.J. & Meyer J.P (1990), ‘The measurement and antecedents of affective,

continuance and normative commitment on the organization’.

Abstract: Allen & Meyer investigated the nature of the link between turnover and the

three components of attitudinal commitment: affective commitment refers to employees’

emotional attachment to, identification with and involvement in the organization;

continuance commitment refers to commitment base on costs that employees associate

with leaving the organization; and normative commitment refers to employees’ feelings

of obligation to remain with the organization. Put simply, employees with strong affective

commitment stay with an organization because they want, those with strong continuance

commitment stay because they need to, and those with strong normative commitment

stay because they feel they ought to. Allen and Meyer’s study indicated that all three

components of commitment were a negative indicator of turnover. In general, most

research has found affective commitment to be the most decisive variable linked to

turnover.

3) Tang T.L.P., Kim J. W. & Tang D.S.H (2000), ‘Does attitude toward money

moderate the relationship between intrinsic job satisfaction and voluntary

turnover?’

Abstract: The examined the relationship between attitudes towards money, intrinsic job

satisfaction and voluntary turnover. One of the main findings of this study is that

voluntary turnover is high among employees who value money (high money ethic

endorsement), regardless of their intrinsic job satisfaction. However, those who do not

value money highly but who have also have low intrinsic job satisfaction tended to have

the lowest actual turnover. Furthermore, employees with high intrinsic job satisfaction
and who put a low value on money also had significantly higher turnover than this second

group. The researchers also found that placing a high value of money predicted actual

turnover but that withdrawal cognitions (i.e. thinking about leaving) did not.

4) Chang E (1999), ‘Career commitment as a complex moderator of organizational

commitment and turnover intention’

Abstract: Chang examined the relationship between career commitment, organizational

commitment and turnover intention among Korean researchers and found that the role of

career commitment was stronger in predicting turnover intentions. When individuals are

committed to the organisation they are less willing to leave the company. This was found

to be stronger for those highly committed to their careers. The author also found that

employees with low career and organisational commitment had the highest turnover

intentions because they did not care either about the company or their current careers.

Individuals with high career commitment and low organisational commitment also tend

to leave because they do not believe that the organisation can satisfy their career needs or

goals. This is consistent with previous research that high career committers consider

leaving the company if development opportunities are not provided by the organisation.

However, this group is not apt to leave and is likely to contribute to the company if their

organisational commitment is increased. Chang found that individuals become affectively

committed to the organisation when they perceive that the organisation is pursuing

internal promotion opportunities, providing proper training and that supervisors do a

good job in providing information and advice about careers.

5) Morrell K.M., Loan-Clarke J. & Wilkinson J (2004), ‘Organizational change and

employee turnover’

Abstract: Lee & Mitchell’s ‘unfolding model’ of employee turnover represented a

significant departure from the previous labour market- and psychological-oriented

turnover literature. This model is based on the premise that people leave organisations in

very different ways and it outlines four decision pathways describing different kinds of

decisions to quit. A notable feature of the unfolding model is its emphasis on an event or

‘shock’ (positive or negative) that prompts some decisions to quit.

Morrell et al tested the unfolding model by studying the voluntary turnover of nurses in

the UK. Their findings indicated that shocks play a role in many cases where people

decide to leave. Furthermore, they found that shocks not only prompted initial thoughts

about quitting but also typically had a substantial influence over the final leaving

decision. They also noted that decisions to quit prompted by a shock are typically more

avoidable. The authors suggest that their research illustrates the importance for managers

of understanding avoidability i.e. the extent to which turnover decisions can be

prevented.

6) Martin C. (2003) ‘Explaining labour turnover: Empirical evidence from UK

establishments’

Abstract: Martin (2003) looked at the effect of unions on labour turnover and found

clear evidence that unionism is associated with lower turnover. He suggested that lower

turnover is a result of the ability of unions to secure better working conditions thus

increasing the attractiveness for workers of staying in their current job. According to
Martin, the relationship between lower turnover and unionisation has been well

established by researchers using both industry-level and individual data.

7) Kirshenbaum A. & Weisberg J. (2002), ‘Employee’s turnover intentions and job

destination choices’

Abstract: This study of 477 employees in 15 firms examined employees’ job destination

choices as part of the turnover process. One of their main findings was that co-workers’

intentions have a major significant impact on all destination options - the more positive

the perception of their co-workers desire to leave, the more employees themselves

wanted to leave. The researchers suggest that a feeling about co-workers’ intentions to

change jobs or workplace acts as a form of social pressure or justification on the

employee to make a move.

8) IDS (2000), Improving staff retention

Abstract: A step towards understanding turnover within an organisation is to determine

whether retention difficulties are caused by internal or external factors. While the role of

labour market conditions in causing turnover may preclude the use of targeted human

resource strategies, this information may be useful in analysing to what extent turnover is

due to outside factors. However, although tight labour markets affect an employer’s

ability to attract and retain staff, looking outwards at the local labour market cannot be a

substitute for understanding what is going on within the organization.

9) Chartered Institute of Personnel and Development (2004), Fact sheet on employee

turnover and retention.

Abstract: Where new employees leave after a short period in the job, poor recruitment

and selection decisions both on the part of the employer and employee are usually the

cause, along with poorly designed or non-existent induction programs (CIPD, 2004). If

expectations are raised too high during the recruitment process this can result in people

accepting jobs for which they may be unsuited. Organizations often do this to ensure that

they fill their vacancies with sufficient numbers of well-qualified people as quickly as

possible. However, this can be counterproductive over the longer-term, as it can lead to

costly avoidable turnover and to the development of a poor reputation in local labour

markets. The CIPD (2004) suggests that employers give employees a realistic job

preview at the recruitment stage and take care not to raise expectations. It may also be

useful to invite applicants to work a shift before committing themselves.

10) Miles M. Finney & Janet E. Kohlhase (2008), The effect of urbanization on labor

turnover.

Abstract: The paper empirically examines labor market matching as a source of urban

agglomeration economies. We work from the hypothesis that job turnover leads to tighter

labor matches and estimate the relationship between urbanization and the job mobility of

young men. Using a panel from the National Longitudinal Survey of Youth, we find

evidence that young men change jobs more frequently in their early career if they live in

larger or in more educated urban areas. The sensitivity of the results to whether the young

men were “movers” or “stayers” suggests the possible endogeneity of location.

11) Tae Heon Lee et al(2008), Understanding Voluntary Turnover: Path-Specific Job

Satisfaction Effects And The Importance Of Unsolicited Job Offers.

Abstract: In response to traditional approaches’ limited success in explaining voluntary

turnover, we explored a paradigmatic shift in turnover research. Using a large national

sample, we found we could more successfully model voluntary turnover by recognizing

that job (dis)satisfaction and ease of movement importance depend on the group of

leavers being studied. For example, ongoing job satisfaction had smaller effects for

turnover driven by certain shocks (unsolicited job offers and family-related reasons),

which accounted for 40 percent of all quits. Moreover, the prevalence of unsolicited job

offers may necessitate rethinking the role of ease of movement in turnover decisions.

12) B. Ramaseshan (1998), Retail employee turnover: Effects of realistic job information

and interviewer affect.

Abstract

In contrast to the majority of studies relating to employee turnover reported in the

marketing literature in general and retailing in particular, which have essentially

been from the point of view of the organization selecting a person for a retail

position, this study is an attempt to understand retail employee turnover from the

perspective of an individual applicant selecting an organization. The study is

aimed at providing insights into the effects that realistic job information and

interviewer credibility may have on the retail firm's capacity to retain its

employees. The important conclusion suggested by this study is that accurate,

relevant and detailed job information play a significant role in reducing retail

employees' decision to leave the job. The findings of the study also suggest that

general interviewer affect by itself does not contribute to reducing retail

employees' decision to quit the job. Implications for retail management would

seem to be that greater attention must be given to providing realistic information

concerning the retail job to potential recruits, rather than attempting to gloss over

the less attractive attributes of the employment. If this is done, good recruits

might be less likely to leave, and those who should not have been attracted to the

position in the first place, will be less likely to be appointed.

REASEARCH METHODOLOGY:

OBJECTIVE OF THE STUDY:

My objective of doing this project was:
 For PART I
o To understand the functions, working, various policies and processes of HR
Dept at TATA CHEMICALS LIMITED.’
o To understand the difference in working of HR in manufacturing industry as
compared to other industries.

 For PART II
o To understand the reasons for attrition at TATA CHEMICALS LIMITED.
o To try finding solutions to the problems leading to attrition and giving my
suggestions to improve the same.

METHODOLOGY
 For Part I of the project:
o Got a clear idea about HR concepts through books and articles
o Understood the general working of the HR dept. by lending a helping hand
to the HR department
o Learnt about each process by discussions with the respective executives in
charge and working on the system for a day

 For PART II of the project:

o Understood the theoretical aspects of Attrition through various documents
and articles
o Analyzed the MIS reports of the resignees
o Made a comparative study of attrition in 2011, 2012 & 2013 (half yearly)
through graphical representation of MIS reports
o Analyzed the exit interview forms in depth to understand the reasons for
resignations

NEED OF THE STUDY

The Success of any manufacturing organization largely depends on the

workers; the employees are considered the backbone of any company. The study was
mainly undertaken to identify the level of employees attitude, the dissatisfaction factors
they face in the organization and for what reason they prefer to change ther job. Once the
levels of employee’s attitude are identified, it would be possible for the management to
take necessary action to reduce attrition level.
Since they are considered as the backbone of the company, their
progression will lead to the success of the company for the long run. This study can be
helpful in knowing why the employees prefer to change their job and which factors make
employees dissatisfy. Since the study is critical issue, it is needed by the organization in
order to assess the overall interest and the feelings of the employees towards their nature
of job and organization.

This study can be helpful to the management to improve its core weaknesses by the
suggestions and recommendations prescribed in the project. This study can serve as a
basis for measuring the organizations overall performance in terms of employees
satisfaction. The need of this study can be recognized when the results of the related
study need suggestions and recommendations to the similar situations.

STATEMENT OF THE PROBLEM

The aim of the present report is to study factors like Salary, Superior-Subordinate
relationship, growth opportunities, facilities, policies and procedures, recognition,
appreciation, suggestions, co-workers by which it helps to know the Attrition level in the
organization’s and the factors relating to retain them. This study also helps to find out
where the organizations are lagging in retaining.

RESEARCH DESIGN
The survey method used in the present study is sample survey and the research design
choice, particularly for small scale enterprises, depends on the kind of problems being
studied. Here descriptive research design may suit research topics for small enterprises.

SAMPLE SIZE AND SAMPLING METHOD

The target respondents of the study are the employees of manufacturing industries of Tata
Chemicals .The total sample size taken for the present study is 130 and the sample
method used is convenient sample method.The selected respondents belonged to the
manufacturing industries like automobile spare parts, metallurgical
industries,chemicals,pharmaceuticals,engineering industries and electrical etc. Its is
important to recognize that these categories of manufacturing industries are the
predominant type of small scale enterprises in the district.

PRIMARY DATA

The primary data were collected through questionnaire followed by the discussions with
management and employees of manufacturing industries.

The study throws light through valuable suggestion to decrease attrition level in the
organization.
This study can help the management to find the weaker parts of the employee feels
towards the organization and also helps in converting those weaker part into stronger by
providing the optimum suggestions or solutions. This study has a wider for scope in any
kind of organizations since “attrition” is general one and makes the employee to put forth
their practical difficulties and need factors in the organization. This study can help the
organization to know for which the reason employees tend to change their job, through
dissatisfaction factor faced in the organization and also help to recover by providing the
optimum suggestions or solutions.

LIMITATIONS

 The study has been taken in manufacturing industries in small scale industries
catageory in Tata chemicals, it may not been applicable to other industries located
in other parts and other type of industries like service sector etc.
 The study gives the opinion of the employees in manufacturing industries in Tata
chemicals.
 CHAPTER-3
INDUSTRY PROFILE & COMPANY PROFILE
INDUSRTY PROFILE:
The chemical industry comprises the companies that produce industrial chemicals. Central to the
modern world economy, it converts raw materials (oil, natural gas, air, water, metals,
and minerals) into more than 70,000 different products.

The plastics industry contains some overlap, as most chemical companies produce plastic as well
as other chemicals

History

Although chemicals were made and used throughout history, the birth of the heavy chemical
industry (production of chemicals in large quantities for a variety of uses) coincided with the
beginnings of the Industrial Revolution in general.

Industrial Revolution
One of the first chemicals to be produced in large amounts through industrial process was sulfuric
acid. In 1736, the pharmacist Joshua Warddeveloped a process for its production that involved
heating saltpeter, allowing the sulfur to oxidize and combine with water. It was the first practical
production of sulfuric acid on a large scale. John Roebuck and Samuel Garbett were the first to
establish a large-scale factory in Prestonpans, Scotland, in 1749, which used leaden condensing
chambers for the manufacture of sulfuric acid.

Charles Tennant's St. Rollox Chemical Works in 1831, then the biggest chemical enterprise in the world.

In the early 18th century, cloth was bleached by treating it with stale urine or sour milk and
exposing it to sunlight for long periods of time, which created a severe bottleneck in production.
Sulfuric acid began to be used as a more efficient agent as well as lime by the middle of the
century, but it was the discovery of bleaching powder by Charles Tennant that spurred the
creation of the first great chemical industrial enterprise. His powder was made by
reacting chlorine with dry slaked lime and proved to be a cheap and successful product. He
opened a factory in St Rollox, north of Glasgow, and production went from just 52 tons in 1799
to almost 10,000 tons just five years later.

Soda ash was used since ancient times in the production of glass, textile, soap, and paper, and the
source of the potash had traditionally been wood ashes in Western Europe. By the 18th century,
this source was becoming uneconomical due to deforestation, and the French Academy of
Sciences offered a prize of 2400 livres for a method to produce alkali from sea salt (sodium
chloride). The Leblanc process was patented in 1791 by Nicolas Leblanc who then built a
Leblanc plant at Saint-Denis. He was denied his prize money because of the French Revolution.

However, it was in Britain that the Leblanc process really took off. William Losh built the first
soda works in Britain at the Losh, Wilson and Bellworks on the River Tyne in 1816, but it
remained on a small scale due to large tariffs on salt production until 1824. When these tariffs
were repealed, the British soda industry was able to rapidly expand. James Muspratt's chemical
works in Liverpool and Charles Tennant's complex near Glasgow became the largest chemical
production centres anywhere. By the 1870s, the British soda output of 200,000 tons annually
exceeded that of all other nations in the world combined.
Ernest Solvay, patented an improved industrial method for the manufacture of soda ash.

These huge factories began to produce a greater diversity of chemicals as the Industrial
Revolution matured. Originally, large quantities of alkaline waste were vented into the
environment from the production of soda, provoking one of the first pieces of environmental
legislation to be passed in 1863. This provided for close inspection of the factories and imposed
heavy fines on those exceeding the limits on pollution. Methods were soon devised to make
useful byproducts from the alkali.

The Solvay process was developed by the Belgian industrial chemist Ernest Solvay in 1861. In
1864, Solvay and his brother Alfred constructed a plant in the Belgian town of Charleroi and in
1874; they expanded into a larger plant in Nancy, France. The new process proved more
economical and less polluting than the Leblanc method, and its use spread. In the same
year, Ludwig Mond visited Solvay to acquire the rights to use his process, and he and John
Brunner formed the firm of Brunner, Mond & Co., and built a Solvay plant at Winning ton,
England. Mond was instrumental in making the Solvay process a commercial success; he made
several refinements between 1873 and 1880 that removed byproducts that could slow or halt the
mass production of sodium carbonate through use of the process.

Expansion and maturation

The late 19th century saw an explosion in both the quantity of production and the variety of
chemicals that were manufactured. Large chemical industries also took shape in Germany and
later in the United States.
The factories of the German firm BASF, in 1866.

Production of artificial manufactured fertilizer for agriculture was pioneered by Sir John Lawes at
his purpose-built Rothamsted Research facility. In the 1840s he established large works
near London for the manufacture of superphosphate of lime. Processes for the vulcanization of
rubber were patented by Charles Goodyear in the United States and Thomas Hancock in England
in the 1840s. The first synthetic dye was discovered by William Henry Perkin in London. He
partly transformed aniline into a crude mixture which, when extracted with alcohol, produced a
substance with an intense purple colour. He also developed the first synthetic perfumes. However,
it was German industry that quickly began to dominate the field of synthetic dyes. The three
major firms BASF, Bayer and Hoechst produced several hundred different dyes, and by 1913, the
German industry produced almost 90 percent of the world supply of dyestuffs and sold about 80
percent of their production abroad. In the United States, Herbert Henry Dow's use of
electrochemistry to produce chemicals from brine was a commercial success that helped to
promote the country's chemical industry.

The petrochemical industry can be traced back to the oil works of James Young in Scotland
and Abraham Pinero Gesner in Canada. The first plastic was invented by Alexander Parke’s, an
English metallurgist. In 1856, he patented Parke sine, a celluloid based on nitrocellulose treated
with a variety of solvents.[8] This material, exhibited at the 1862 London International Exhibition,
anticipated many of the modern aesthetic and utility uses of plastics. The industrial production
of soap from vegetable oils was started by William Lever and his brother James in 1885
in Lancashire based on a modern chemical process invented by William Hough Watson that
used glycerin and vegetable oils.

By the 1920s, chemical firms consolidated into large conglomerates; IG Fabens in

Germany, Rhône-Poulenc in France and Imperial Chemical Industries in Britain. DuPont became
a major chemicals firm in the early 20th century in America.

Currently chemical production is a high-tech industry, where the competitiveness is more based
on capacity in investment on research and development than the labour cost.
Products[edit]

Polymers and plastics, especially polyethylene, polypropylene, polyvinyl chloride, polyethylene

terephthalate, polystyrene and polycarbonate comprise about 80% of the industry’s output
worldwide. These materials are often converted to fluoropolymer tubing products and used by the
industry to transport highly corrosive materials. [11] Chemicals are used to make a wide variety of
consumer goods, as well as thousands of inputs to agriculture, manufacturing, construction, and
service industries. The chemical industry itself consumes 26 percent of its own output. Major
industrial customers include rubber and plastic products, textiles, apparel, petroleum
refining, pulp and paper, and primary metals. Chemicals are nearly a $3 trillion global enterprise,
and the EU and U.S. chemical companies are the world's largest producers.

Sales of the chemical business can be divided into a few broad categories, including basic
chemicals (about 35 to 37 percent of the dollar output), life sciences (30 percent), specialty
chemicals (20 to 25 percent) and consumer products (about 10 percent).

Basic chemicals & Commodity Chemicals to Polymers and Speciality

Chemicals

New polypropylene plant PP3 in the Slovnaft oil refinery (Bratislava, Slovakia)

Basic chemicals, or "commodity chemicals" are a broad chemical category including polymers,
bulk petrochemicals and intermediates, other derivatives and basic industrials, inorganic
chemicals, and fertilizers. Typical growth rates for basic chemicals are about 0.5 to 0.7 times
GDP. Product prices are generally less than fifty cents per pound.

Polymers, the largest revenue segment at about 33 percent of the basic chemicals dollar value,
includes all categories of plastics and man-made fibers. The major markets for plastics
are packaging, followed by home construction, containers, appliances, pipe, transportation, toys,
and games.

 The largest-volume polymer product, polyethylene (PE), is used mainly in packaging

films and other markets such as milk bottles, containers, and pipe.
 Polyvinyl chloride (PVC), another large-volume product, is principally used to make pipe
for construction markets as well as siding and, to a much smaller extent, transportation and
packaging materials.

 Polypropylene (PP), similar in volume to PVC, is used in markets ranging from

packaging, appliances, and containers to clothing and carpeting.

 Polystyrene (PS), another large-volume plastic, is used principally for appliances and
packaging as well as toys and recreation.

 The leading man-made fibers include polyester, nylon, polypropylene, and acrylics, with
applications including apparel, home furnishings, and other industrial and consumer use.

The principal raw materials for polymers are bulk petrochemicals.

Chemicals in the bulk petrochemicals and intermediates are primarily made from liquefied
petroleum gas (LPG), natural gas, and crude oil. Their sales volume is close to 30 percent of
overall basic chemicals. Typical large-volume products
include ethylene, propylene, benzene, toluene, xylenes, methanol, vinyl chloride
monomer (VCM), styrene, butadiene, and ethylene oxide. These basic or commodity chemicals
are the starting materials used to manufacture many polymers and other more complex organic
chemicals particularly those that are made for use in the specialty chemicals category .

Inorganic chemicals (about 12 percent of the revenue output) make up the oldest of the chemical
categories. Products include salt, chlorine, caustic soda, soda ash, acids (such as nitric
acid, phosphoric acid, and sulfuric acid), titanium dioxide, and hydrogen peroxide.

Fertilizers are the smallest category (about 6 percent) and include phosphates, ammonia,
and potash chemicals.

Life sciences
Life sciences (about 30 percent of the dollar output of the chemistry business) include
differentiated chemical and biological substances, pharmaceuticals, diagnostics, animal health
products, vitamins, and pesticides. While much smaller in volume than other chemical sectors,
their products tend to have very high prices—over ten dollars per pound—growth rates of 1.5 to 6
times GDP, and research and development spending at 15 to 25 percent of sales. Life science
products are usually produced with very high specifications and are closely scrutinized by
government agencies such as the Food and Drug Administration. Pesticides, also called "crop
protection chemicals", are about 10 percent of this category and include herbicides, insecticides,
and fungicides.

Specialty chemicals
Specialty chemicals are a category of relatively high valued, rapidly growing chemicals with
diverse end product markets. Typical growth rates are one to three times GDP with prices over a
dollar per pound. They are generally characterized by their innovative aspects. Products are sold
for what they can do rather than for what chemicals they contain. Products include electronic
chemicals, industrial gases, adhesives and sealants as well as coatings, industrial and institutional
cleaning chemicals, and catalysts. In 2012, excluding fine chemicals, the $546 billion global
speciality chemical market was 33% Paints, Coating and Surface Treatments, 27% Advanced
Polymer, 14% Adhesives and Sealants, 13% additives and 13% pigments and inks.

Speciality chemicals are sold as effect or performance chemicals. Sometimes they are mixtures of
formulations, unlike "fine chemicals," which are almost always single-molecule products.

Consumer products
Consumer products include direct product sale of chemicals such as soaps, detergents,
and cosmetics. Typical growth rates are 0.8 to 1.0 times GDP.

Consumers rarely if ever come into contact with basic chemicals but polymers and speciality
chemicals are the materials that they will encounter everywhere in their everyday lives, such as in
plastics, cleaning materials, cosmetics, paints & coatings, electronic gadgets, automobiles and the
materials used to construct their homes.[14] These speciality products are marketed by chemical
companies to the downstream manufacturing industries as pesticides, speciality polymers,
electronic chemicals, surfactants, construction chemicals, Industrial
Cleaners, flavours and fragrances, speciality coatings, printing inks, water-soluble polymers, food
additives, paper chemicals, oil field chemicals, plastic
adhesives, adhesives and sealants, cosmetic chemicals, water management chemicals, catalysts,
textile chemicals. Chemical companies rarely supply these products directly to the consumer.
Technology

This is a process diagram of a turbine generator. Engineers working to produce a

sustainable process for use in the chemical industry need to know how to design a
sustainable process in which the system can withstand or manipulate process-halting
conditions such as heat, friction, pressure, emissions, and contaminants.

From the perspective of chemical engineers, the chemical industry involves the use
of chemical processes such as chemical reactions and refining methods to produce a wide
variety of solid, liquid, and gaseous materials. Most of these products serve
to manufacture other items, although a smaller number go directly to
consumers. Solvents, pesticides, lye, washing soda, and portland cement provide a few
examples of product used by consumers.

The industry includes manufacturers of inorganic- and organic-industrial chemicals,

ceramic products, petrochemicals, agrochemicals, polymers and rubber (elastomers),
oleochemicals (oils, fats, and waxes), explosives, fragrances and flavors

COMPANY PROFILE:
Tata Chemicals (TCL), established in 1939, is the second largest producer of soda
ash in the world with manufacturing facilities spread across four continents.
Tata Chemicals is the world’s second largest producer of soda ash with manufacturing
facilities in Asia, Europe, Africa and North America. The company’s industry essentials
product range provides key ingredients to some of the world’s largest manufacturers of
glass, detergents and other industrial products.
TCL is market leader in iodised salt segment and leading manufacturer of urea and
phosphatic fertilizers. Its urea plant in Babrala in Uttar Pradesh is most energy efficient
fertilizer plant in country.
The Tata Chemicals Innovation Centre is home to world–class R&D capabilities in the
emerging areas of nanotechnology and biotechnology. The company’s Centre for Agri–
Solutions and Technology provides advice on farming solutions and crop nutrition
practices.
The company has also entered into a JV with Singapore’s Temasek Life Sciences
Laboratory (Joil) to develop jatropha seedlings to enable bio fuels capability. In line with
its mission, ‘serving society through science’, the company is applying its expertise in
sciences, to develop high–tech and sustainable products.
Products
Chemicals
It manufactures soda ash which is used to manufacture glass, soaps, detergent. It is also
used in metal refining, textile processing, etc.Soda ash also is used in the manufacture of
cement Caustic soda is used for manufacturing rayon, pulp, paper, gypsum–used in
pharmaceuticals, insecticides and bromine.
Fertilisers
Its manufacturing fertiliser plant is located in Babrala ,which has installed capacity of
8,64,000 tonnes per year. It contributes 12 % of total urea produced by Indian private
sector.
Consumer products
It manufactures salt, sodium bicarbonate and cooking soda.TCL manufactures 3,50,000
vacuum evaporated iodised salt.It produces four kind of salt –– iodised salt, crystalline
salt , vacuum salt and pure salt .It produces 50,000 tonnes of sodium bicarbonate per
annum.
It also produces hydrobromic acid, liquid bromine, hydrochloric acid and liquid chlorine.
Awards/Achievements:
TCL won 11 awards at the 48th Association of Business Communication of India (ABCI)
annual awards.
Its fertilizer business unit won Golden Peacock environment management award from
World Environment Foundation.
Its chemicals unit at Babrala won Safety Gold Award from Greentech Foundation, Delhi.
It was amongst the top 10 most trusted brands in survey conducted by The Economic
Times.
Tata Salt was selected as “Mera Brand” in Consumer World Awards.
Milestones
1927
Kapil Ram Vakil sets up Okhamandal Salt Works.
On May 4, VT Krishnamachari, then dewan (administrator) of Baroda, lays foundation
stone.
1937
Tatas approached to take over Okhamandal Salt Works.
1939
Tata Chemicals Limited incorporated on January 23.
2001
Production severely affected due to earthquake on January 26, 2001 and the fire in the
power plant on March 2, 2001. Cement sales taken over from ACC Limited.
2002
Mithapur is awarded ISO–14001 certification.
The chemicals division at Mithapur is awarded the ISO–9001–2000 Migration
certificate.
2003
Tata Salt ranked No. 1 Food brand in Brand Equity Survey of India's most trusted
brands.
Babrala fertiliser plant registered with British Safety Council.
New initiatives taken up to consolidate and drive growth in the core business.
Chemical plant at Mithapur bags 'Certificate of Honour' and saltworks awarded
'Certificate of Merit' by Gujarat State Safety Council.
Mithapur becomes the first industrial township to be awarded the ISO 14001 certificate.
The fertiliser plant gets ISO–14001 and OHSAS–18001 certification.
2004
ISO 14001 certification for the Babrala Township for implementation of Environment
Management System. Certification audit conducted by KPMG, India.
Tata Chemicals set up the Innovation Centre to develop world–class R&D capability in
the emerging areas of nanotechnology and biotechnology.
2005
First step towards internationalisation. Tata Chemicals acquires an equal partnership in
Indo Maroc Phosphore SA (IMACID) along with Chambal Fertilisers and global
phosphate major, OCP of Morocco.
2006
Tata Chemicals completes acquisition of UK–based Brunner Mond Group, one of the
world's leading manufacturers soda ash and associated alkaline products.
2008
Tata Chemicals acquires US–based General Chemical Industrial Products (GCIP).
Becomes world’s second largest soda ash manufacturer.
2009
Tata Chemicals urea division achieves RC 14001 – 2005 Certification
Tata Chemicals certified under SA 8000:2001 standard for the Mithapur, Babrala and
Haldia sites by RINA India.
Tata Chemicals launches ‘i–Shakti Cooking Soda’– refined sodium bicarbonate.
Tata Chemicals launches 'Tata Swach' water purifier. It has been designed to tackle one
of India's biggest social and technological challenges – the need for safe drinking water.
2010
Rallis India acquires majority stake in Metahelix Life Sciences.
Tata Chemicals acquires 100–per–cent stake in leading vacuum salt producer British
Salt, UK.
Tata Chemicals launches i–Shakti dals (pulses).
2011
Tata Chemicals rebrands global subsidiaries – Tata Chemicals North America (General
Chemical Industrial Products), Tata Chemicals Magadi (Magadi Soda Company), Tata
Chemicals Europe (Brunner Mond and British Salt)
Acquires stake in EPM Mining Ventures, Canada
Signing of the pre–construction services agreement with Technip for the Gabon Fertiliser
Project
Africa's first premium ash plant opens at Tata Chemicals Magadi
2012
Tata Salt launches its flavoured variants – 'Flavoritz'
India's first iodine plus iron fortified salt launched by Tata Chemicals
Tata Chemicals Europe and E.ON Energy from Waste UK Ltd to set up a plant to
generate energy from waste at Lostock in Northwich
2013
TCL's efforts help save more than 350 whale sharks
Tata Chemicals signs MoU with the Institute of Chemical Technology to set up
endowment chair.
Tata Swach launches new variant Cristella Plus.
Tata Chemicals launches innovative organic plant growth regulators
– FarmGro and FarmGro G

TATA CHEMICALS LIMITED

The Directors hereby présent their seventy seventh Annual Report together with the
audited financial statements for the Financial Year (FY) ended 31st March, 2016
DIVIDEND
For the year under review, the Directors have recommended a dividend of Rs. 10 per
share (100%) on the Ordinary Shares of the Company (previous year Rs. 10 per share and
platinum jubilee year special dividend of Rs. 2.50 per share) amounting to Rs. 301.67
crore including Dividend Tax. The dividend payment is subject to approval of the
members at the ensuing Annual General Meeting (AGM).
PERFORMANCE REVIEW
Consolidated:
The consolidated net revenue from the operations increased from Rs. 17,204.48 crore to
Rs. 17,708.14 crore, an increase of 2.9% over the previous year. Earnings before interest,
depreciation, tax and amortisation (EBITDA) was marginally up at Rs. 2,165.17 crore
compared to Rs. 2,164.29 crore in the previous year. Profit before tax was up by 9.74% at
Rs. 1,271.40 crore against Rs. 1,158.51 crore in the previous year. Profit after tax before
minority interest and our share of losses in associates was at Rs. 979.87 crore against Rs.
807.39 crore in the previous year, up by 21.36%. Profit attributable to the Group after
deducting the minority interest and share of loss in associates was up by 30.80% at Rs.
780.16 crore against Rs. 596.46 crore in the previous year.
Standalone:
The net revenue from the operations of the Company increased from Rs. 10,083.60 crore
to Rs. 10,649.91 crore, registering a growth of 5.6% over the previous year. EBITDA was
marginally down at Rs. 1,026.51 crore compared to Rs. 1,038.83 crore earned in the
previous year. Profit before tax was Rs. 801.92 crore against Rs. 854.09 crore in the
previous year, down by 6.1%. Profit after tax was at Rs. 594.58 crore against Rs. 637.97
crore in the previous year, down by 6.8%.
Tata Chemicals Limited's ('TCL' or 'the Company') operation is organised under four
segments i.e. (1) Inorganic Chemicals comprising Soda Ash, Salt, Sodium Bicarbonate,
Marine Chemicals, Caustic Soda and Cement, (2) Fertilisers comprising Fertilisers and
other traded products, (3) Other Agri–inputs including Rallis India Limited's operations
and (4) Others – comprising Pulses, Spices, Water Purifier, Nutritional Solutions.
Performance review of these businesses is as under:
1. INORGANIC CHEMICALS SEGMENT
1.1 INDIA OPERATIONS:
During the year, the Inorganic Chemicals business posted a revenue on standalone basis
of Rs. 3,507.19 crore against Rs. 3,320.24 crore in the previous year, registering a growth
of 5.63%.
The Company is an integrated manufacturer of basic and value–added chemicals; key
among them being soda ash, sodium bicarbonate and cement. Continued strong focus on
operational efficiency and lower energy cost contributed to improved profitability of the
business in a mixed business environment. Production levels of most key products
remained steady in FY 2015–16 with second highest annual production of Soda Ash and
record production of Sodium Bicarbonate.
Soda Ash
During the year under review, the domestic soda ash market remained almost flat due to
subdued demand from the two key end–use industries. Weak rural demand impacted
detergent sales and lower infrastructure spends adversely impacted glass demand.
Manufacturing volumes at Mithapur remained marginally higher at 8.10 Lac Tonnes Per
Annum (LTPA) as against 7.89 LTPA in the previous year. The total sales volume for the
year stood at 6.85 LTPA (rest of the manufactured volume was used primarily for captive
consumption to produce bicarbonate). Prices remained under pressure due to demand
slowdown and high import volumes.
Sodium Bicarbonate
Indian sodium bicarbonate demand grew by almost 4% in FY 2015–16 against the trend
of 7–8% growth. Even though growth was subdued this year, the Company believes in
the long term attractiveness of this business and continues to maintain market share in
excess of 50%. Production for the year stood at ~97,000 tonnes as against ~94,000 tonnes
in the previous year. Sales volume at ~89,000 tonnes showed a similar trend. As with
soda ash, bicarbonate prices were under pressure. Going forward, the Company will
continue to focus on expanding its portfolio of value added offerings for high–end
applications.

Cement
Demand and price pressures were prevalent for most of FY 2015–16 due to lackluster
demand from the infrastructure development sector. Sales volume and realisation were
both under pressure throughout the year. The Company is focused on driving profitability
in this business by consciously operating in low freight zones and by expanding into
value added products.
Salt\
Iodised salt production in Mithapur was 8,56,984 tonnes, up by 7% over the previous
year. Overall, branded salt sales grew by 9% over the previous year and stood at
10,42,202 tonnes in FY 2015–16. The Company retained its strong market share of
68.5% in the National Branded Salt segment.
Tata Salt grew over 9% in sales volume over the previous year to reach sales volume of
8,67,157 tonnes in FY 2015–16. It continues to be the largest distributed brand with a
reach of 16.8 lac retail outlets across India.
Tata Salt Lite grew by 31% in sales volume and achieved volumes of 17,731 tonnes in
FY 2015–16. Tata Salt Plus, a double fortified salt that contains Iron and lodine, was
launched pan India during the year.
Sale of I–Shakti salt in FY 2015–16 was 1,41,358 tonnes.
I–Shakti salt continues to address the iodisation movement, complimenting Tata Salt.
The outlook for the business remains positive, as the business continues to work on
distribution expansion, brand building initiatives, strengthening of supply chain while
scaling up differentiated products such as Tata Salt Plus – iron fortified iodized salt.

1.2 OVERSEAS OPERATIONS

1.2.1 Tata Chemicals North America Inc. (TCNA)

Soda Ash production volumes at TCNA during the year were 21,21,544 tonnes against
the previous year volume of 23,15,824 tonnes. Volumes were lower due to plant
reliability issues faced by the unit during the year. Sales volumes for the year were
21,03,566 tonnes against 23,62,711 tonnes in the previous year.
TCNA posted gross revenue of US$ 460.47 million (Rs. 3,014.66 crore) for the year
ended 31st March, 2016 against US$ 494.50 million (Rs. 3,024.38 crore) in the previous
year. The reduction was due to lower sales volumes which was partially offset by sales
mix and pricing.
TCNA registered EBITDA of US$ 98.10 million (Rs. 642.25 crore) against US$ 120.80
million (Rs. 738.82 crore) in the previous year. EBITDA was lower due to adverse sales
volumes and plant costs partly offset by favourable sales price and mix. Profit before tax
and profit after tax for the year were at
US$ 68.50 million (Rs. 448.46 crore) and US$ 33.48 million (Rs. 219.19 crore)
respectively against US$ 62.59 million (Rs. 382.80 crore) and US$ 26.36 million (Rs.
161.21 crore) respectively during the previous year. Profit before tax and profit after tax
were down in the previous year due to one–time impairment charge of US$ 19.91 million
(Rs. 121.77 crore) on the investment in the Natronx joint venture.

1.2.2 Tata Chemicals Europe Holdings Limited (TCEHL)

TCEHL is the holding company for Tata Chemicals Europe Limited with operations in
soda ash, bicarbonate and energy businesses as well as British Salt Limited which carries
on the business of manufacturing and sale of industrial salt.
Production of soda ash at the Lostock site was the highest since 2012 and this, together
with the efficient operation of a dedicated import facility, enabled the company to
maintain its share in the UK market. Production of sodium bicarbonate was 13% higher
than in FY 2014–15, with improvements seen at both of the company's plants. Sales
volume of soda ash were up 14% whereas bicarbonate volumes were up by 19% from FY
2014–15 levels, however, sales income from continental Western Europe were affected
by the weakening of Sterling against Euro.
In the Energy business, external sales of electricity to the National Grid were boosted by
commissioning of the new steam turbine project at the Winnington combined heat and
power plant during third quarter.
Salt production and sales volumes were marginally lower than the previous year. Weak
and poor quality brine impacted the production volumes.
TCEHL's overall turnover for the year was GBP 166.82 million (Rs. 1,647.21 crore)
against GBP 164.84 million (Rs. 1,624.45 crore) in the previous year. EBITDA for the
year was GBP 17.75 million (Rs. 175.27 crore) against GBP 13.4 million (Rs. 132.05
crore) in the previous year.
Despite the positive operating performance improvement over the prior year, the loss
after tax during the year was GBP 2.87 million (Rs. 28.34 crore) against profit of GBP
0.21 million (Rs. 2.07 crore) in the previous year. This was due to accounting for the
non–cash movement in gas derivative contracts of GBP 3.1 million (Rs. 30.61 crore)
against the previous year credit of GBP 3.5 million (Rs. 34.49 crore) and expenses
relating to the scheduled refinancing of the group's debt.

1.2.3 Tata Chemicals Magadi Limited (TCML)

During the year, TCML recorded soda ash production of 3,10,907 tonnes against 3,71,531
tonnes during the previous year.
Soda ash sales volume for the year were at 3,06,803 tonnes against 3,01,686 tonnes
during the previous year. Crushed refined soda and salt sales volume in FY 2015–16 were
15,191 tonnes and 21,540 tonnes respectively.
TCML achieved total sales of US$ 74.1 million (Rs. 485.13 crore) during the year against
US$ 87.67 million (Rs. 536.19 crore) during the previous year.
TCML achieved an EBITDA of US$ 17 million (Rs. 111.30 crore) for the year compared
to negative EBITDA of US$ 7.53 million (Rs. 46.05 crore) during the previous year. The
major contributing factors for positive EBITDA performance were low operating cost as
a result of favourable HFO prices, lower sea freight and cost rationalisation.
The year registered an impressive profit before tax of US$ 10.6 million (Rs. 69.40 crore)
compared to loss before tax of US$ 17.51 million (Rs. 107.09 crore) in the previous year.
1.2.4 Tata Chemicals International Pte Limited (TCIPL)

TCIPL is a wholly owned subsidiary and holds the Company's investments in the UK,
USA and Kenya in addition to carrying on the business of trading of goods. TCIPL is
trading soda ash of different grades in South East Asia and Middle East and also
exploring opportunities in allied products in these markets.
During the year under review, TCIPL revenue was US$ 61.24 million (Rs. 400.93 crore)
against US$ 30.16 million (Rs. 184.46 crore) in the previous year and other income
representing dividend from wholly owned subsidiaries was US$ 18.43 million (Rs.
120.66 crore) [previous year US$ 17.38 million (Rs. 106.30 crore)]. Profit after tax for
the year was US$ 9.89 million (Rs. 64.75 crore).
2. FERTILISER SEGMENT
During the year, the fertiliser business posted sales of Rs. 6,409.10 crore against Rs.
6,268.61crore in the previous year.

CROP NUTRITION AND AGRI BUSINESS (CNAB)

CNAB comprises two manufacturing units, i.e. Babrala Plant manufacturing Urea and
Customised Fertilisers and the Haldia Plant producing Phosphatic Fertilisers like Di–
ammonium Phosphate (DAP), NPK and Single Super Phosphate (SSP). In addition to
these, the Company imports and sells bulk fertilisers like Muriate of Potash (MOP) and
DAP. The Company also supplies other products like Specialty Fertilisers, Organic
Fertilisers, Seeds and Pesticides.
The CNAB's performance has been under considerable strain due to poor recent
monsoons and an unfavourable cost structure at Haldia when compared to imported
alternatives.
While the revenue grew marginally, EBITDA fell to Rs. 264 crore during the year from
Rs. 341 crore in the previous year. The fall in Profit before tax has been much sharper
from Rs. 129 crore in the previous year to Rs. (0.06) crore during the year due to tough
market conditions and high outstanding subsidy from the Government.

Urea
Babrala plant achieved a total Urea production of 12,30,819 tonnes, lower by 19,712
tonnes compared to the previous year. The specific energy consumption level of plant
was 5.170 GCal / tonnes against 5.135 GCal /tonnes in the previous year.

Complex Fertilizer’s (DAP / NPK / SSP)

Haldia plant achieved a combined production of 6,66,731 tonnes of DAP, NPKs and SSP
during the year against the previous year's production of 8,68,157 tonnes. The sales of
DAP, NPKs and SSP from the Haldia Plant was 7,25,852 tonnes against 7,89,292 tonnes
in the previous year.
Imported Products (DAP / MOP)
The Company sold imported DAP of 4,15,145 tonnes during the year against 3,30,488
tonnes in the previous year. MOP sale was at 1,10,986 tonnes against the previous year's
sale of 1,23,306 tonnes.

Specialty Crop Nutrients and Agra Inputs

Despite farmers being faced with a poor monsoon and depressed crop prices, the
Company could marginally grow in this segment

Customized Fertilizer’s
The Company manufactures 3 grades of fertilisers applicable to Paddy, Potato and
Sugarcane.
The sales of Customised Fertilisers during the year were 23,327 tonnes against 28,492
tonnes in the previous year. This being a new concept it would be promoted in a phased
manner and the Company believes that this will slowly gain acceptance.

Tata Kisan Sansar (TKS)

TKS, a dedicated network for distribution of agri inputs provides a trustworthy store
offering "One Stop agri input and services shop" to farmers. Apart from dealing in
Primary Nutrients (Urea, DAP, MOP, NPK etc.), Specialty Fertilisers (Zinc sulphate,
boron, micronutrients, calcium nitrate, organics, water soluble fertilisers, PGR etc.),
Seeds (field crops, vegetable crops) and the entire range of Pesticides, they also act as
active agents for knowledge transfer and adoption of best management practices. They
provide direct connect with the farmers to understand their changing needs and tailor
products and services accordingly. TKS offers farm advisory services, subsidised Soil
Testing, Hello Krishi–mobile based agri information service, Smart Krishi– service
offered to the farmer for certain critical farm operations with the use of latest technology
and well researched farm practices.

3. OTHER AGRI INPUTS

3.1 During the year, the other agri–inputs recorded revenues on standalone basis of Rs.
422.29 crore against Rs. 373.22 crore in the previous year, registering a growth of
13.15% over the previous year. The Company has expanded its network in new
geographies in western and southern parts of India with increased focus on own brands.

3.2 Rallis India Limited (Rallis)

Rallis achieved a sales turnover of Rs. 1,727 crore on a consolidated basis for the year
against Rs. 1,918 crore of the previous year. Profit before tax on consolidated basis was at
Rs. 186 crore against Rs. 222 crore of the previous year. Net profit for the year was at Rs.
143 crore against Rs. 157 crore of the previous year.
FY 2015–16 witnessed very challenging times, with back to back drought years,
accompanied by low farmer netbacks and tough market conditions. This had an adverse
impact on the usage of crop protection products. Below normal rainfall and a later–than–
normal withdrawal from northern and central parts of India pushed the countrywide
cumulative rainfall deficiency to 14%. Rainfall deficit in 2015 affected crops spread over
an area of 19 million hectare. Additionally, 3.2 million hectare of crop area was damaged
by storms and floods since April. Key crops such as soya bean, cotton, paddy and pulses,
on which the industry is dependent, were adversely impacted due to the drought. That
apart, whitefly attack menace on cotton crop in northern India posed a serious threat to
cotton growers this year, extensively damaging their crop. Government actions to contain
the impact, by curbing sub–standard products being sold, led to overall slowdown in
trade.
The International Business Division achieved sales of Rs. 402 crore in the current year,
against Rs. 500 crore in the previous year.

OTHERS

During the year, the 'Others' comprising pulses, spices, water purifiers, nutritional
solutions, etc. achieved a revenue of Rs. 461.90 crore against Rs. 283.47 crore in the
previous year, registering a growth of 62.94%

Pulses

In FY 2015–16, the Tata Sampann Pulses and Besan businesses grew by ~72% to reach a
turnover of Rs. 411 crore. During the year, the product availability grew from 91,000
outlets to over 1,22,000 outlets in the key focus markets. The brand was successfully re–
launched as Tata Sampann, with increased focus on brand building activities to generate
consumer pull and distribution initiatives to ensure our products are present in the right
outlets consistently. The Company also successfully established the 'low oil absorb'
proposition for Tata Sampann Besan, making it a clearly differentiated offering in the
market place.
At the sourcing end, as part of its 'Grow More Pulses' initiative, TCL engages with
4, 00,000+ farmers in 10 districts across 3 states. The Company sees high stickiness from
farmers associated with the program with regular advisory training programmes enabling
farmers to achieve yield increases of 2050% through the crop cycle.

Spices
Though almost 75% of the market is still unbranded, the branded segment is growing at a
faster rate of 26% p.a. in terms of value. This shift from unbranded to branded segment is
being driven by increasing need for convenience and hygiene. Within the branded spices
market, Blends are expected to outgrow Pures in terms of value over the next 5 years due
to increasing consumer adoption of Blends.
Tata Sampann spices made a successful launch in the month of October, 2015 after a test
launch in Punjab, Haryana and Himachal Pradesh. The product has been launched after
making a major packaging change and rebranding exercise with a product portfolio of 7
blended spices and 3 straight spices. Currently, Tata Sampann spices are available in 13
states across northern parts of the country and north east.

Water Purifier

Tata Swach non–electric storage water purifiers achieved sales of 3,94,455 units of
purifiers and bulbs in aggregate as it continues to focus on making affordable drinking
water solutions available to a large section of Indian Populace. It is estimated that the
Tata Swach Silver nanotech storage water purifier range has touched over 1.7 million
families and 8 million lives since inception with over 11 billion litres of water being
purified over the past 6 years.
Water purifier business continues to expand its footprint in affordable drinking water
segment through alternate marketing channels including NGOs.

Nutritional Solutions

FY 2015–16 was the first full year of operations of the green–field manufacturing unit at
Sriperumbudur, near Chennai. During the year, the unit produced several variants of
Fructo Oligosaccharide (FOS) and FOS based formulations and sold over 450 tonnes of
FOS in India. The product is already being available across 92 Indian cities servicing 615
customers and product related feedback from customers has been positive resulting in
repeat orders from many customers. Additionally, based on customer inputs, several
complementary products have been added to the portfolio to maximise synergistic
benefits. Overall, in this first full–year of operations, the business achieved a turnover of
Rs. 8.09 crore

FINANCE
During the year under review, the Company did not undertake any new long term
financing and none of the existing long term facilities were due for renewal. The
disbursement of fertiliser subsidy slowed during the second half of the financial year,
causing elevated levels of working capital. The outstanding balance of subsidy
receivables as on 31st March, 2016 was Rs. 1,901.33 crore (31 March, 2015: Rs.
1,971.64 crore). The working capital funding requirement has been met mainly through
buyers' credit. The outstanding balance of buyers' credit as on 31st March, 2016 was Rs.
1,294.32 crore (31st March 2015: Rs. 915.54 crore). Despite the continuous pressure on
working capital, mainly due to the level of subsidy outstanding, the Company was able to
contain interest costs through the competitive sourcing of working capital borrowings and
active cash management. The overall interest cost during the year was Rs. 194.47 crore,
slightly higher by Rs. 7.69 crore compared to the previous year.
During the year, Rallis, a subsidiary of the Company and IMACID, a joint venture, paid
dividends of Rs. 19.25 crore (FY 2014–15: Rs. 23.36 crore) and Rs. 14.60 crore (FY
2014–15: Rs. 43.97 crore) respectively to the Company. TCNA Inc., step down subsidiary
of the Company, paid a dividend of US$ 20 million (Rs. 130.94 crore) (FY 2014–15: US$
20 million Rs. 122.32 crore) which has been mainly utilised towards operational
requirements and intra group finance costs at TCIPL, Singapore.
The Company's subsidiary TCEHL refinanced its bridge facilities with five year term and
revolver credit facilities aggregating to GBP 140 million.
The Company's credit ratings were not changed by any of the rating agencies. As on 31st
March 2016, the Company had the following credit ratings:
– A Corporate Family Rating of Ba1/Stable from Moody's Investors Service
Foreign Currency Long–Term Issuer Default Rating (IDR) of BB+ with Stable outlook
from Fitch Ratings
– INR denominated Non–Convertible Debentures of 250 crore are rated at AA+ by
CARE Ratings and BWR AA+ (Stable) by Brickwork Ratings.
– Long term bank facilities (i.e. fund based working capital facilities) of Rs. 765 crore
and short term bank facilities of Rs. 3,580 crore are rated at AA+ and A1+, respectively,
by CARE Ratings.
Short term debt programme of Rs. 100 crore is rated at A1+ by CRISIL Ratings.

RELATED PARTY TRANSACTIONS

All related party transactions entered into during FY 2015–16 were on an arm's length
basis and in the ordinary course of business and were in compliance with the applicable
provisions of the Companies Act, 2013 ('the Act') and the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing
Regulations'). Further, there were no transactions with related parties which qualify as
material transactions under the Listing Regulations.
All transactions with related parties were reviewed and approved by the Audit
Committee. Prior omnibus approvals are granted by the Audit Committee for related
party transactions which are of repetitive nature, entered in the ordinary course of
business and are on arm's length basis in accordance with the provisions of the Act read
with the Rules issued thereunder and the Listing Regulations.
The policy on materiality of related party transactions and dealing with related party
transactions as approved by the Board is available on the Company's website at the
link: <http://tatachemicals.com/> investors/policies/pdf/tcl_rpt_policy.pdf. There are no
transactions to be reported in Form AOC–2.
The details of the transactions with related parties are provided in the accompanying
financial statements.

RISK MANAGEMENT POLICY

Risk management policy of the Company promotes a proactive approach in reporting,
evaluating and mitigating risks associated with the business. Mechanisms for
identification and prioritisation of risks include business risk environment scanning and
focused discussions in the Risk Management Group (at Senior Management Level) and
Risk Management Committee meetings.
Identified risks are used as one of the key inputs for the development of strategy and
business plan. The respective risk owner selects a series of actions to align risks with the
Company's risk appetite and risk tolerance levels to reduce the potential impact of the risk
should it occur and/or to reduce the expected frequency of its occurrence. Mitigation
plans are finalised, owners are identified and progress of mitigation actions are monitored
and reviewed.
Although non–mandatory, the Company has constituted a Risk Management Committee
(RMC) to oversee the risk management efforts in the Company under the Chairmanship
of Mr. E. A. Kshirsagar, Independent Director. The details of the Committee along with
its terms of reference are set out in the Corporate Governance Report, forming part of the
Annual Report.
A risk assessment update is provided to the RMC on periodical basis. The Committee
assists the Audit Committee and the Board of Directors in overseeing the Company's risk
management processes and controls. Some of the risks identified are set out in the
Management Discussion and Analysis which forms part of the Annual Report.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The CSR, Safety and Sustainability Committee has formulated, and recommended to the
Board, a CSR Policy indicating the activities to be undertaken by the Company as
approved by the Board.
The Company has taken up area specific need based CSR activities and has ensured
participation of key stakeholders like community, NGOs, government departments etc.
The focus of the Company is to reach out to marginalised and deprived section of the
society and bridge the gap between the haves and have nots.
The Company's overall CSR initiatives called BEACoN focusses on the following sectors
and issues:

Blossom : Promotion and development of traditional handicrafts including support to

artisans through clusters and self–help groups
Enhance : Poverty alleviation, livelihood enhancement and infrastructure support,
including programs on agriculture growth, animal husbandry development and promotion
of social enterprises
Aspire : Education and vocational skill development
Conserve : Environment sustainability by investing in bio–diversity, natural resource
management, awareness and environmental education, and mitigation of climate change
impacts
Nurture : Health care, nutrition, sanitation and safe drinking water
In addition, the Company will promote women's empowerment and inclusion along with
responding to any disasters, depending upon where they occur and its ability to respond
meaningfully.
The CSR policy is available on the Company's website at the
link: <http://>tatachemicals.com/sustainability/downloadcsr_policy.pdf The Annual
Report on CSR activities is enclosed as Annexure 1 to this Report.

WHISTLEBLOWER POLICY AND VIGIL MECHANISM

The Company has adopted a Whistleblower Policy and Vigil Mechanism to provide a
formal mechanism to the Directors, employees and its stakeholders to report their
concerns about unethical behaviour, actual or suspected fraud or violation of the
Company's Code of Conduct or Ethics Policy. Protected disclosures can be made by a
whistleblower through several channels. The policy provides for adequate safeguards
against victimisation of employees who avail of the mechanism and also provides for
direct access to the Chairman of the Audit Committee. It is affirmed that no personnel of
the Company has been denied access to the Audit Committee.
The details of the policy are given in the corporate governance report and also posted on
the website of the Company viz. www.tatachemicals.com

PREVENTION OF SEXUAL HARASSMENT (POSH)

The Company is an equal opportunity employer and consciously strives to build a work
culture that promotes dignity of all employees. The Company has zero tolerance for
sexual harassment at workplace and has adopted a Policy on prevention, prohibition and
redressal of sexual harassment at workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
and the Rules.
No complaints of sexual harassment were received during the year. More than 30 sessions
were conducted across locations covering permanent, contractual and third party. Two
sessions conducted for capability building of POSH committee members. Online
awareness training continued covering more then 80% leadership team, management,
officer and POSH members.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The Company has not given any loans during the year. The details of investments made
during the year are given hereunder –
During the year, the Company provided a corporate guarantee on behalf of homefield UK
Pvt. Ltd. of Rs. 357.78 crore. Details of loans, guarantees and investments covered under
the provisions of Section 186 of the Act are given in the notes to the financial statements.

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements of the Company and its subsidiaries, prepared in
accordance with Accounting Standard 21 issued by the Institute of Chartered Accountants
of India, form part of the Annual Report and are reflected in the consolidated financial
statements of the Company. A statement containing the salient features of the financial
statements of the subsidiary companies is attached to the Financial Statements in Form
AOC–1.
Pursuant to the provisions of Section 136 of the Act, the financial statements of the
Company, consolidated financial statements along with relevant documents and separate
audited accounts in respect of subsidiaries, are available on the website of the Company.
The annual accounts of the subsidiaries and related detailed information will be kept at
the registered office of the Company, as also at the registered offices of the respective
subsidiary companies and will be available to investors seeking information till the date
of AGM.

SUBSIDIARY COMPANIES, JOINT VENTURES AND ASSOCIATE

COMPANIES

As on 31st March, 2016, the Company had 40 (direct and indirect) subsidiaries (4 in
India and 36 overseas), 5 joint venture companies and 1 associate company.
During the year, General Chemicals Great Britain Limited ceased to exist with effect
from 16th June, 2015.
The Company's policy on material subsidiaries, as approved by the Board, is uploaded on
the Company's website at the
link: <http://>tatachemicals.com/investors/policies/pdf/material_subsidiary.pdf
A report on the performance and financial position of each of the subsidiaries, associates
and joint venture companies as per the Act is provided in Form AOC–1 attached to the
Financial Statements.
The Company's wholly owned subsidiary, Bio Energy Venture –1 (Mauritius) Pvt. Ltd
has entered into a Definitive Agreement ('Agreement') for sale of its entire stake in
Grown Energy Zambeze Holdings Pvt. Ltd, Mauritius ('GEZ Mauritius') for a
consideration of US$ 5.5 million subject to fulfillment of certain conditions laid down in
the Agreement ('Closing Date'). The consideration for the said transaction will be
discharged on deferred payment basis over a period of 5 years ending on 31st December,
2020.
GEZ Mauritius is the holding company of Grown Energy Zambeze Limitada ('GEZ
Ltda'), which owns the Company's biofuel assets in Mozambique. The Company, through
its subsidiaries, owns 95% stake in GEZ Ltda. Upon the Closing Date, the Company will
exit from the Biofuel business in Mozambique.

DETAILS OF SIGNIFICANT MATERIAL ORDERS

No significant and material orders were passed by the regulators or the courts or tribunals
impacting the going concern status and Company's operations in future.

INTERNAL FINANCIAL CONTROLS

Internal financial control systems of the Company are commensurate with its size and the
nature of its operations. These have been designed to provide reasonable assurance with
regard to recording and providing reliable financial and operational information,
complying with applicable accounting standards and relevant statutes, safeguarding assets
from unauthorised use, executing transactions with proper authorisation and ensuring
compliance of corporate policies. The Company has a well–defined delegation of power
with authority limits for approving revenue as well as expenditure, both capital and
revenue. The Company uses an established ERP system to record day to day transactions
for accounting and financial reporting.
The Company's internal audit function monitors and assesses the adequacy and
effectiveness of the Internal Financial Controls. The Audit Committee deliberated with
the members of the management, considered the systems as laid down and met the
internal auditors and statutory auditors to ascertain, inter alia, their views on the internal
financial control systems. The Audit Committee satisfied itself of the adequacy and
effectiveness of the internal financial control system as laid down and kept the Board of
Directors informed.
Details of internal control system are given in the Management Discussion and Analysis
Report, which forms part of the Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Directors

Appointment/Re–appointment

In accordance with the provisions of the Act and the Articles of Association of the
Company, Mr. R. Mukundan, Managing Director of the Company, retires by rotation at
the ensuing AGM, and being eligible, has offered himself for re–appointment.
On the recommendation of the Nomination and Remuneration Committee, Mr. Bhaskar
Bhat was appointed as an Additional Director of the Company with effect from 20th
October, 2015. In accordance with Section 161 of the Act, Mr. Bhaskar Bhat holds office
upto the date of the forthcoming AGM of the Company and being eligible, offer his
candidature for appointment as Director. Your approval for his appointment as Director
has been sought in the Notice convening the forthcoming AGM of the Company.
On the recommendation of the Nomination and Remuneration Committee, Dr. Nirmalya
Kumar was appointed as an Additional Director of the Company with effect from 26th
May, 2016. In accordance with Section 161 of the Act, Dr. Nirmalya Kumar holds office
upto the date of the forthcoming AGM of the Company and being eligible, offer his
candidature for appointment as Director. Your approval for his appointment as Director
has been sought in the Notice convening the forthcoming AGM of the Company.

Retirement /Resignation

In accordance with the Tata Group retirement policy for Board of Directors, Mr. R.
Gopalakrishnan, Vice Chairman on the Board, retired on 25th December, 2015, after
attaining the retirement age of 70 years. The Board of Directors place on record their
deep appreciation for the valuable guidance and immense contribution made by Mr.
Gopalakrishnan as the Vice–Chairman and Director of the Company.
Mr. Prasad R. Menon, Director of the Company, resigned from the services of the
Company with effect from 21st October, 2015. The Board of Directors places on record
their deep appreciation for the valuable guidance and immense contribution made by Mr.
Menon during his tenure as the Director of the Company.
Mr. P. K. Ghose retired from the Board of the Company as Executive Director and CFO
effective 30th September, 2015 after attaining superannuation age of 65 years in
accordance with the Tata Group retirement policy adopted by the Company. The Board of
Directors place on record their deep appreciation for the contributions made by Mr.
Ghose during his tenure as Executive Director and CFO.

Independent Directors
The Independent Directors hold office for a fixed term of five years or until their
completing 75 years, whichever is earlier and are not liable to retire by rotation in terms
of Section 149(13) the Act. In accordance with Section 149(7) of the Act, each
Independent Director has given a written declaration to the Company confirming that
he/she meets the criteria of independence as mentioned under Section 149(6) of the Act
and the Listing Regulations.
Details of Familiarisation programme for Independent Director is provided separately in
the Corporate Governance Report.

Key Managerial Personnel (KMP)

Mr. John Mulhall has been appointed as the Chief Financial Officer and KMP with effect
from 20th October, 2015 after the retirement of Mr. P. K. Ghose as Executive Director
and CFO.
Mr. R. Mukundan, Managing Director and Mr. Rajiv Chandan, General Counsel &
Company Secretary are the other KMP as per the definition under Section 2(51) and
Section 203 of the Act.
Governance Guidelines

The Company has adopted Governance Guidelines on Board Effectiveness. The

Governance Guidelines cover aspects related to composition and role of the Board,
Chairman and Directors, Board diversity, definition of independence, Director term,
retirement age and Committees of the Board. It also covers aspects relating to
nomination, appointment, induction and development of Directors, Director
remuneration, subsidiary oversight, and code of conduct, Board effectiveness review and
mandates of Board committees.

Procedure for Nomination and Appointment of Directors

The Nomination and Remuneration Committee (NRC) is responsible for developing

competency requirements for the Board based on the industry and strategy of the
Company. The Board composition analysis reflects in–depth understanding of the
Company, including its strategies, environment, operations, financial condition and
compliance requirements.
NRC conducts a gap analysis to refresh the Board on a periodic basis, including each
time a Director's appointment or re–appointment is required. The Committee is also
responsible for reviewing the profiles of potential candidates vis–à–vis the required
competencies and meeting potential candidates, prior to making recommendations of
their nomination to the Board. At the time of appointment, specific requirements for the
position, including expert knowledge expected, is communicated to the appointee.

Criteria for Determining Qualifications, Positive Attributes and Independence of a

Director
The NRC has formulated the criteria for determining qualifications, positive attributes
and independence of Directors in terms of provisions of Section 178(3) of the Act and the
Listing Regulations. The relevant information has been given in Annexure 2 which
forms part of the Board's Report.

Board Evaluation

Pursuant to the provisions of the Act and the corporate governance requirements
prescribed under the Listing Regulations, the Board has carried out the annual
performance evaluation of its own performance, and that of its Committees and
Individual Directors.
The performance of the Board and individual Directors was evaluated by the Board after
seeking inputs from all the directors. The criteria for performance evaluation of the Board
included aspects such as Board composition and structure, effectiveness of Board
processes, contribution in the long term strategic planning, etc. The performance of the
committees was evaluated by the Board after seeking inputs from the committee
members. The criteria for performance evaluation of the committees included aspects
such as composition of committees, effectiveness of committee meetings, etc.
The Board and the NRC reviewed the performance of the individual Directors on the
basis of the criteria such as the contribution of the individual director to the Board and
committee meetings like preparedness on the issues to be discussed, meaningful and
constructive contribution and inputs in meetings, etc. In addition, the Chairman was also
evaluated on the key aspects of his role.
In a separate meeting of Independent Directors, performance of non–independent
directors, performance of the board as a whole and performance of the Chairman was
evaluated, taking into account the views of executive directors and non–executive
directors. The same was discussed in the Board Meeting that followed the meeting of the
Independent Directors, at which the feedback received from the Directors on the
performance of the Board, its Committees and individual directors was also discussed.
REMUNERATION POLICY

The Company has in place a Remuneration Policy for the Directors, KMP and other
employees pursuant to the provisions of the Act and the Listing Regulations which is set
out in Annexure 3 which forms part of the Board's Report.

DIRECTORS' RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls and compliance systems

established and maintained by the Company, work performed by the internal, statutory,
cost and secretarial auditors and external consultant(s), including audit of internal
financial controls
over financial reporting by the statutory auditors and the reviews performed by
Management and the relevant Board Committees, including the Audit Committee, the
Board is of the opinion that the Company's internal financial controls were adequate and
effective during the FY 2015–16.
Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of
their knowledge and ability, confirm that:
(a) In the preparation of the annual accounts, the applicable accounting standards have
been followed along with proper explanation relating to material departures;
(b) they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year and of the profit of
the Company for that period;
(c) They have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
(d) They have prepared the annual accounts on a going concern basis;
(e) They have laid down internal financial controls to be followed by the Company and
that such internal financial controls are adequate and were operating effectively; and
(f) They have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.

MANAGEMENT DISCUSSION & ANALYSIS AND

CORPORATE GOVERNANCE REPORTS
Pursuant to Regulation 34 of the Listing Regulations, the Management Discussion and
Analysis and the Corporate Governance Report are presented in a separate section
forming part of the Annual Report.

INFORMATION TECHNOLOGY (IT)

The Company's IT infrastructure is continuously reviewed and renewed in line with the
business requirements and technology enhancements. The Company has implemented
common ERP programme across all its wholly owned operating subsidiaries. To support
the growth of its Consumer Products Business, the Company is implementing a
Warehouse Management Solution. A cloud based platform to enhance collaboration
within various functions and businesses has been implemented. The Company has
enabled its field force with mobile based applications to provide better and timely service
to customers. A comprehensive data structure is being put in place to support business
decision making.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN

EXCHANGE EARNINGS AND OUTGO

The particulars relating to conservation of energy, technology absorption, foreign

exchange earnings and outgo, as required to be disclosed pursuant to the provisions of
Section 134 of the Act read with the Companies (Accounts) Rules, 2014, are provided
in Annexure 4 to this Report.
PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section

197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 are enclosed as Annexure 5 to this
Report.
The statement containing particulars of employees as required under Section 197(12) of
the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 forms part of this Report. Further, the Report and the
Accounts are being sent to the members excluding the aforesaid statement. In terms of
Section 136 of the Companies Act, 2013, the said statement is open for inspection at the
Registered Office of your Company. Any members interested in obtaining such
particulars may write to the General Counsel & Company Secretary at the Registered
Office of the Company.

AUDITORS

I. Auditors and their report:

In the AGM held on 21st August, 2014, M/s. Deloitte Haskins & Sells LLP, Chartered
Accountants, (DHS LLP) were appointed as Statutory Auditors of the Company for a
period of three years. At the AGM held on 11th August, 2015, the shareholders ratified
the appointment of DHS LLP for a period of one year. Ratification of appointment of
Statutory Auditors is being sought from the members of the Company at the ensuing
AGM.
Further, the report of the Statutory Auditors along with notes to Schedules is enclosed to
this Report. The observations made in the Auditors' Report are self–explanatory and
therefore do not call for any further comments.
II. Cost Auditors and Cost Audit report:

As per the Cost Audit Orders, Cost Audit is applicable to the Company's products i.e.
Fertilisers, Mineral products including cement and Inorganic chemicals
In view of the same and in terms of the provisions of Section 148 and all other applicable
provisions of the Act read with the Companies (Audit and Auditors) Rules, 2014, M/s.
N.I. Mehta & Co; and M/s. Ramanath Iyer and Co; Cost Accountants have been
appointed as Cost Auditors to conduct the audit of cost records of your Company for the
FY 2016–17. The remuneration proposed to be paid to them requires ratification of the
shareholders of the Company. In view of this, your ratification for payment of
remuneration to Cost Auditors is being sought at the ensuing AGM.

III. Secretarial audit

In terms of Section 204 of the Act and Rules made there under, M/s. Parikh & Associates,
Practicing Company Secretaries have been appointed as Secretarial Auditors of the
Company. The report of the Secretarial Auditors is enclosed as Annexure 6 to this
Report. The report is self–explanatory and do not call for any further comments.

DISCLOSURES

Details of Board meeting

During the year, 8 (eight) Board meetings were held and the details of which are provided
in the Corporate Governance Report.

ii. Composition of Audit Committee:

The Audit Committee comprises 3 (three) Members all of which are Independent
Directors. Dr. Nirmalya Kumar, Non–executive Director, was inducted as a member of
the Audit Committee effected 26th May, 2016. During the year, 8 (eight) Audit
Committee meetings were held and the details of which are provided in the Corporate
Governance Report.

iii. Composition of CSR, Safety and Sustainability Committee

The Committee comprises 4 (four) Members out of which 2 (two) (including the
Chairman) are Independent Directors. During the year, 4 (four) CSR, Safety and
Sustainability Committee meetings were held and the details of which are provided in the
Corporate Governance Report.

iv. Listing Regulations

The Securities and Exchange Board of India (SEBI) has, by its notification dated 2nd
September, 2015, issued the (Listing Obligations and Disclosure Requirements)
Regulations, 2015 with an aim to consolidate and streamline the provisions of the Listing
Regulations for different segments of capital markets to ensure better enforceability. The
Regulations became effective from 1st December, 2015 and have replaced the Listing
Agreements. Accordingly, all listed entities were required to enter into the Listing
Agreement within 6 (six) months from the effective date. The Company has entered into
Listing Agreement with BSE Limited and the National Stock Exchange of India Limited
during the month of January, 2016.
Pursuant to the Listing Regulations, the following policies were approved and adopted by
the Board:
(i) Policy on determination of Materiality for disclosures of events or information.
(ii) Policy for preservation of documents, to classify documents in two categories, viz.
documents which need to be preserved permanently and documents which need to be
preserved for not less than 8 years after completion of the relevant transactions.
(iii) Archival Policy, to determine the period, for which information is required to be
disclosed on the Company's website.
Policy on Materiality and Archival Policy are also available on the website of the
Company under 'Investor Relations' section.

EXTRACT OF ANNUAL RETURN

Pursuant to Section 92(3) of the Act and Rule 12(1) of the Companies (Management and
Administration) Rules, 2014, extract of annual return in Form MGT 9 is enclosed
as Annexure 7to this Report.

CHAPTER-5
DATA ANALYSIS &
INTERPRETATION
RESULTS

1. Employee’s opinion about Salary

A salary is a form of remuneration paid periodically by an employer to an employee, the

amount and frequency of which may be specified in an employment contract. The
following table shows the employee’s opinion about salary in various attributes.

Table 1 Employee’s opinion about Salary

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
My Salary when compared with (17) (58) (37) (18) (0) (130)
Competitor company 13.1% 44.6% 28.5% 13.8% 0% 100%
Performance Bonus given to me by (64) (24) (30) (12) (0) (130)
the company 49.2% 18.5% 23.1% 9.2% 0% 100%
Standard of Increment in the (38) (35) (28) (24) (5) (130)
Company 29.2% 26.9% 21.5% 18.5% 3.8% 100%
Satisfaction level in Salary & (53) (32) (14) (31) (0) (130)
Increment 40.8% 24.6% 10.8% 23.8% 0% 100%
From the above table it was inferred that 44.6 percent of employees have the opinion that
their salary compared with the competitor company as high, 28.5 percent said it is
medium, 13.8 percent said it is low. And 49.2 percent of employees have an opinion that
the performance bonus they getting is very high, 23.1 percent said as medium and 18.5
percent as high.
2.92percent of employees has an opinion that the standard of increment in the company is
very high, 18.5 percent said it is low. And 40.8 percent of employees has an opinion that
they are satisfied with the level of salary & increment, 23.8 percent said it is low.

It leads to conclusion that 44.6 percent of employees have the opinion that their salary
compared with the competitor company as high, 49.2 percent of employees has an
opinion that the performance bonus they getting is very high, 29.2 percent of employees
has an opinion that the standard of increment in the company is very high and 40.8
percent of employees has an opinion that they are satisfied with the level of salary &
increment.
2. Employee’s opinion about Superior – Subordinate Relationship

In An Organization communication occurs between members of

different hierarchical positions. Superior-subordinate communication refers to the interactions
between organizational leaders and their subordinates and how they work together to
achieve personal and organizational goals. The following table shows the employee’s
opinion about superior – subordinate relationship in various attributes.

Table 2 Employee’s opinion about Superior – Subordinate Relationship

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
The encouragement getting from (25) (54) (31) (12) (8) (130)
supervisors to work as team 19.2 % 41.5 % 23.8 % 9.2 % 6.2 % 100%
The Supervisor’s effort for job (41) (32) (18) (39) (0) (130)
Promotion 31.5 % 24.6 % 13.8 % 30.0 % 0% 100%

From the above table it was inferred that 41.5 percent of employees have the opinion that
their encouragement from superior is high, 23.8 percent said it is medium and 6.2 percent
said it is very low. And 31.5 percent of employees has an opinion that the superior’s effort
to help for job promotion is very high, 13.8 percent said it is medium and 30 percent said
it is low.

It leads to conclusion that 41.5 percent of employees have the opinion that their
encouragement from superior is high and 31.5 percent of employees have an opinion that
the superior’s effort to help for job promotion is very high.
3. Employee’s opinion about Growth Opportunities

An employee’s perception of internal opportunities for growth and development is one of

the more important predictors of employee engagement. Understanding this, there were
disappointed to discover, through our latest research, that the employee perception of
internal opportunities is the lowest it has ever been. The following table shows the
employee’s opinion about growth opportunities in various attributes

Table 3 Employee’s opinion about Growth Opportunities

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
Opportunities provided by the (57) (28) (20) (17) (8) (130)
company 43.8 % 21.5 % 15.4 % 13.1 % 6.2 % 100%
Chances of getting promotion (39) (40) (20) (26) (5) (130)
30.0 % 30.8 % 15.4 % 20.0 % 3.8 % 100%

From the above table it was inferred that 43.8 percent of employees have the opinion that
their opportunities provided by the company is very high, 15.4 percent said it is medium
and 6.2 percent said it is very low. And 30 percent of employees has an opinion that the
chances of promotion is very high and 15.4 percent said it is medium and 3.8 percent said
it is very low.

It leads to conclude that 43.8 percent of employees have the opinion that their
opportunities provided by the company are very high and 30 percent of employees have
an opinion that the chances of promotion are very high.
4. Employee’s opinion about Facilities

Facilities management is very important whatever type of organization is considered, the

management of the pool and sports halls in a leisure center, including changing pool
water, making sure that electricity and lighting is regularly maintained etc., the
machinery and equipment in a manufacturing plant, the maintenance of the pitch, and
stadium for a sports club - including regular checks on floodlights, health and safety
equipment etc. The following table shows the employee’s opinion about facilities in
various attributes

OPINION

VERY HIGH MEDIUM LOW VERY Total

HIGH LOW

ATTRIBUTES

Benefit and welfare facilities (48) (31) (17) (19) (15) (130)

provided by the company 36.9 % 23.8 % 13.1 % 14.6 % 11.5 % 100%

Satisfaction getting with the (45) (43) (11) (16) (15) (130)

physical working condition 34.6 % 33.1 % 8.5 % 12.3 % 11.5 % 100%

From the above table it was inferred that 36.9 percent of employees have the opinion that
the welfare facilities provided to them by the company is very high, 13.1 percent said it is

medium and 11.5 percent said it is very low. And 34.6 percent of employees has an
opinion that the physical working conditions are very high, 8.5 percent said it is medium
and 11.5 percent said it is very low.

It leads to conclusion that 36.9 percent of employees have the opinion that the
welfare facilities provided to them by the company is very high and 34.6 percent of
employees has an opinion that the physical working conditions are very high.
5. Employee’s opinion about Policies and Procedures

A policy is a principle or rule to guide decisions and achieve rational outcomes. A policy
is a statement of intent, and is implemented as a procedure or protocol. Policies are
generally adopted by the Board of or senior governance body within an organization
whereas procedures or protocols would be developed and adopted by senior executive
officers. The following table shows the employee’s opinion about policies and procedures
in various attributes.

Table 5 Employee’s opinion about Policies and Procedures

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
Employee policies and (51) (28) (33) (5) (13) (130)
Procedures 39.2 % 21.5 % 25.4 % 3.8 % 10.0 % 100%
Administration of (50) (29) (35) (16) (0) (130)
employee policies 38.5 % 22.3 % 26.9 % 12.3 % 0% 100%

From the above table it was inferred that 39.2 percent of employees have the opinion that
38.5 percent of employees has an opinion that the administration of the policies are very
high, 26.9 percent said it is medium and 12.3 percent said it is low.

It leads to conclusion that 39.2 percent of employees have the opinion that the employee
policies and procedures of the company are very high and 38.5 percent of employees
have an opinion that the administrations of the policies are very high.

the employee policies and procedures of the company is very high, 25.4 percent said it is
6. Attrition level due to above mentioned facts

Attrition level describes the standard of the organization and the capacity of them to
retain them. The following table shows the attrition level in Integra. The following table
shows the employee’s opinion about attrition level in Integra Software Service Private
Limited.

Table 6 Attrition level due to above mentioned facts

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
Feeling of leaving the (38) (6) (25) (38) (23) (130)
company 29.2 % 4.6 % 19.2 % 29.2 % 17.7 % 100%

From the above table it was inferred that 29.2 percent of employees having the opinion of
leaving the company is very high as well as low, 19.2 percent said it is medium , 4.6
percent said it is high and 17.7 percent said it is very low.

It leads to conclusion that 29.2 percent of employees having the opinion of leaving the
company is very high.
 7. Employee’s opinion about Recognition

Employee Recognition is the timely, informal or formal acknowledgement of a person’s

or team’s behavior, effort or business result that supports the organization’s goals and
values, and which has clearly been beyond normal expectations. The following table
shows the employee’s opinion about superior – subordinate relationship in various
attributes. The following table shows the employee’s opinion about recognition in various
attributes.

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
Recognition received abilities, (43) (22) (46) (19) (0) (130)
efficiency and good work done 33.1 % 16.9 % 35.4 % 14.6 % 0% 100%
Cash award/salary (10) (32) (59) (21) (8) (130)
increase/promotion getting for 7.7 % 24.6 % 45.4 % 16.2 % 6.2 % 100%
outstanding performance

From the above table it was inferred that 35.4 percent of employees have the opinion that

the Recognition received by the company for their abilities, efficiency and good work
done are medium, 16.9 percent said it is high and 14.6 percent said it is low. And 45.4
percent of employees has an opinion that the Cash award/salary increase/promotion
getting for outstanding performance are medium, 7.7 percent said it is very high and 6.2
percent said it is very low.

It leads to conclusion that 35.4 percent of employees have the opinion that the
Recognition received by the company for their abilities, efficiency and good work done
are medium and 45.4 percent of employees has an opinion that the Cash award/salary
increase/promotion getting for outstanding performance are medium.
8. Employee’s opinion about Appreciation

Employees expecting that for their hard work and contributions, their need appreciation.
And, don't forget to say please often as well. Social niceties do belong at work. A more
gracious, polite workplace is appreciated by all. The following table shows the
employee’s opinion about appreciation in various attributes.

Table 8 Employee’s opinion about Appreciation

OPINION
VERY HIGH MEDIUM LOW VERY Total
HIGH LOW
ATTRIBUTES
Appreciation receiving for the (23) (61) (25) (21) (0) (130)
good work done 17.7 % 46.9 % 19.2 % 16.2 % 0% 100%
Encouragement receiving to (21) (53) (41) (15) (0) (130)
learn new skills on the job 16.2 % 40.8 % 31.5 % 11.5 % 0% 100%

From the above table it was inferred that 46.9 percent of employees have the opinion that
the Appreciation receiving for the good work done are high, 19.2 percent said it is
medium and 16.2 person said it is low. And 40.8 person of employees has an opinion that
the Encouragement receiving to learn new skills on the job are high, 31.5 person said it is
medium and 11.5 person said it is low.

It leads to conclusion that 46.9 percent of employees have the opinion that the
Appreciation receiving for the good work done are high and 40.8 person of employees
has an opinion that the Encouragement receiving to learn new skills on the job are high
9. Age Vs Attrition Factors

H1: There is a significant relation between age and attrition factors of the
employees. The following table shows relation between age and attrition factors
Table 9 Age Vs Attrition Factors

Factors Mean Square F Sig.

Salaries 10.579 23.820 .000

Superior – Subordinate Relationship 4.293 9.364 .000

Growth Opportunities 4.931 11.174 .000

Facilities 5.549 17.551 .000

Policies & Procedures 3.243 5.524 .005

It was found by ANOVA test that there is a significant difference (at 0.05 levels) amongst
the different categories of age of the respondents with the attrition factors. So, null
hypothesis is accepted.

10. Educational Qualification Vs Attrition Factor

H2: There is a significant relation between educational qualification and attrition
factors of the employees.
The following table shows relation between educational qualification and attrition factors

Table 10 Educational Qualification Vs Attrition Factor

Factors Mean Square F Sig.

Salaries 9.393 23.562 .000

Superior – Subordinate Relationship 2.850 31.177 .000

 Growth Opportunities 3.988 19.544 .000
Facilities 4.370 26.618 .000
Policies & Procedures 2.273 23.661 .000

It was found by ANOVA test that there is a significant difference (at 0.05 levels) amongst
the different categories of educational qualification of the respondents with the attrition
factors. So, null hypothesis is accepted.

11. Experience Vs Attrition Factors

H3: There is a significant relation between experience and attrition factors of the employees.
The following table shows relation between experience and attrition factors
Table 11 Experience Vs Attrition Factors

Factors Mean Square F Sig.

Salaries 13.378 4.033 .009
Superior – Subordinate Relationship 4.381 5.598 .001
Growth Opportunities 5.101 6.118 .001
Facilities 6.538 3.865 .011
Policies & Procedures 2.886 9.708 .000

It was found by ANOVA test that there is a significant Difference (at 0.05 levels) amongst
the different categories of experience of the respondents with the attrition factors. So, null
hypothesis is accepted.
 12. Age Vs Motivational Factors Relating To Employee Retention

H3: There is a significant relation between age and motivational factors relating to
employee retention.
The following table shows relation between age and motivational factors
relating to employee retention

Table 12 Age Vs Motivational Factors Relating To Employee Retention

Factors Mean Square F Sig.

Training 3.243 5.524 .005
Recognition 3.534 3.118 .048
Appreciation 2.512 .599 .551
Suggestions 2.126 4.330 .015
Co-Workers Relationship 3.047 .747 .476

It was found by ANOVA test that there is a significant Difference (at 0.05 levels) amongst
the different categories of age of the respondents with the motivational factors relating to
employee retention. So, null hypothesis is accepted.
13. Educational Qualification Vs Motivational Factors Relating To Employee
Retention

H4: There is a significant relation between educational qualification vs motivational

factors relating to employee retention.

The following table shows relation between educational qualification vs motivational

factors relating to employee retention

Table 13 Educational Qualification Vs Motivational Factors Relating To

Employee
Retention

Factors Mean Square F Sig.

Training 2.273 23.661 .000
Recognition 2.556 19.405 .000
Appreciation 1.636 23.624 .000
Suggestions 1.605 17.877 .000
Co-Workers Relationship 1.763 32.018 .000

It was found by ANOVA test that there is a significant Difference (at 0.05 levels) amongst
the different categories of educational qualification of the respondent with the
motivational factors relating to employee retention. . So, null hypothesis is accepted.

14. Experience Vs Motivational Factors Relating To Employee Retention

H5: There is a significant relation between experience vs motivational factors relating to

employee retention

The following table shows relation between experience vs motivational factors relating to
employee retention
Table 14 Experience Vs Motivational Factors Relating To Employee Retention

Factors Mean Square F Sig.

 Training 2.886 9.708 .000
Recognition 3.647 1.032 .381
Appreciation 2.390 2.917 .037
Suggestions 2.143 2.849 .040
Co-Workers Relationship 2.646 7.331 .000

It was found by ANOVA test that there is a significant Difference (at 0.05 levels) amongst
the different categories of experience of the respondent with the motivational factors
relating to employee retention. So, null hypothesis is accepted.

15. Marital Status Vs Attrition factors

The following table shows relation between marital status and attrition factors

Table 15 Marital Status Vs Attrition factors

Factors Marital Status Mean Standard t Significance

deviation
Salary Married 7.0345 2.73999 22.452 .000
unmarried 11.0000 3.85389
Superior – Subordinate Married 4.0690 1.74579 12.130 .001
Relationship unmarried 5.6613 2.43569
Growth Opportunities married 3.5345 1.67767 59.562 .000
unmarried 5.4516 2.75608
Facilities married 3.6724 1.43133 60.762 .000
unmarried 6.0000 3.10473
Policies & Procedures married 4.3276 1.47954 12.907 .000

unmarried 5.4194 2.16945

It was found by independent samples t-test that there is a significant difference ( at 0.05

levels) between the factors of attrition and their marital status.

16. Marital Status Vs Motivational factors relating to Employee Retention
The following table shows marital status vs motivational factors relating to employee
Retention

Table 16 Marital Status Vs Motivational factors relating to Employee Retention

Factors Marital Status Mean Standard t Significance

deviation
Training married 4.3276 1.47954 12.907 .000
unmarried 5.4194 2.16945
 Recognition married 4.7414 1.64967 10.522 .002
unmarried 5.5645 2.18505
Appreciation married 4.8793 1.79744 1.187 .278
unmarried 4.6290 1.47364
Suggestions married 4.5172 1.76954 24.530 .000
unmarried 4.3387 1.15862
Co-Worker Relationship married 4.7931 2.00664 8.688 .004
unmarried 4.4194 1.59454
It was found by independent samples t-test that there is a significant difference (at 0.05
levels) between the number of the respondent and their marital status.

MANAGERIAL STAFF RESIGNATIONS

(HALF YEARLY)

2011 2012 2013

NO. OF
EMPLOYEES 37 31 43

There
was a

subsequent reduction in the number of resignees in the first half of 2012 as compared to
that in 2011 for the same period. But comparing the data for 2013 to both the years, it can
be noted that this year has the highest number of resignees. The trend line in the above
graph shows an increasing trend based on simple average.

CALCULATING THE ATTRITION RATE:

“WHAT CANNOT BE MEASURED CANNOT BE IMPROVED’’ is an old management

aphorism. So if we want to improve attrition, we need to bring it to measurable terms.

Attrition in any particular organization can be quantified by finding out the attrition rate
for that organization. After this it can be analysis can be done as to where is the
maximum attrition happening and then finding out reasons for the same to form a
retention strategy.

There is no standard formula to calculate the attrition rate of a company. This is because
of certain factors as:

 The employee base changes each month.

 Many firms may not include attrition of fresher’s who leave because of higher
studies or within three months of joining.
 In some cases, attrition of poor performers may also not be treated as attrition.

Yet, as a generalised formula the following can be used:

Attrition = (No. of employees who left in the year / Average employees in the year) x
100

 Attrition Rate 2013 (Half Year) :

43/601 X 100 = 7.15 approx 7%

The above percentage is based on the data for the first half of 2013. In order to compare it
to that of the previous years, it is important to have the data at par. Thus, finding out the
rate of attrition for 2011 and 2012 based on half yearly data.

 Attrition Rate 2011:

(Half Year) 37/632 X 100 = 5.85 approx 6%
(Annual) 86/632 X 100 = 14%
  Attrition Rate 2012:
(Half Year) 31/596 X 100 = 5.20 approx 5%
(Annual) 57/596 X 100 = 9%
The trend in attrition rate also shows an increase in the same in the current year.

In order to understand the problem clearly, I have attempted to make various comparisons
classifying the number of resignee’s band wise, month wise and division wise.

MANAGERIAL STAFF RESIGNATIONS

(BAND WISE CLASSIFICATIONS)

(Jan-June)

leadership strategic functional tactical Professional operational total

2011 0 3 0 7 11 16 37

2012 0 1 2 5 5 18 31

2013 0 1 4 8 10 20 43

BAND WISE CLASSIFICATIONS

As in 2011 and 2012, even in 2013 the maximum resignations were received from
0perational Band.

In order to understand the reasons for these resignations, a detailed analysis of the exit
interview forms was done. During Exit Interviews, the employees are assured by the HR
manager that the reason for their leaving will be kept confidential. The HR Manager
conducting the exit interview keeps important notes of the information provided and
records the same in the exit interview form along with proper justifications. The
information recorded acts as a reliable source for the study.

It is generally found that at the lower level and initial years of the career, salary remains
low. If the persons are not kept motivated, they prefer to leave the organisation at
formative years of their career for better prospects in terms of salary and role.

At TATA CHEMICALS LIMITED, the same trend has been observed. At the operational
level, which includes executives with less experience and young at age, employees have
resigned mostly due to absence in challenging roles (which have been offered by their
new companies) as well as salary dissatisfaction. As we go up the hierarchy level i.e.
Professional and Tactical band, the reasons for employee resignation took a shift from the
hygiene factors to the motivation factors. Salary growth became the secondary reason for
these resignations while other factors like change in role, lack of co-operation form
superiors, inadequate recognition, training needs, no personal growth strategies, no
feeling of belongingness etc. became a primary reason. Some of the resignees have even
blamed the work culture where people work as individuals and not as teams.

MANAGERIAL STAFF RESIGNATIONS

(MONTH WISE CLASSIFICATION)

MONTH 2011 2012 2013

JANUARY 5 5 6
FEBRUARY 6 2 6
MARCH 2 11 7
APRIL 6 5 6
MAY 7 4 9
JUNE 11 4 9
TOTAL 37 31 43

The above graph shows the trends in number of resignations per month in the year 2011
and 2012. It is observed that the trend line is highly fluctuating.

This could be because of the fact that 2011 was a pre merger period and people were not
sure about their future in the company after the merger. While 2012 being post merger
period, there were problems like non satisfaction by the given role, no co-ordination etc.
Comparatively, the number of resignations in 2013 is distributed almost evenly in the first
6 months. But it can also be seen that the resignations during May and June are higher
than the remaining four months in 2013.
As per the discussion with the HR manager, employees tend to leave the organisation
after a salary revision period. She informed that employees wait for their final
appraisals/increment/promotion/upgradation of profile, after which they take a decision to
continue or quit. In 2013, the salary revision took place in April and hence the increasing
trend as many employees decided to take an exit from the organization.

MANAGERIAL STAFF RESIGNATIONS

(DIVISION WISE CLASSIFICATIONS)
(JAN – JUNE)
DIVISION/FUNCTION 2011 2012 2013

Div TLP : (Textile, Leather & Paper) 18 12 18

Div P&A : (Pigments & Additives) 0 4 4
Div MB : (Masterbatches) 2 2 2
Div FUN : (Functional Chemicals) 6 2 6
FINANCE 4 6 3
PRS 4 2 8
SCM 1 2 0
SOURCING 2 0 2
HR 0 0 0
IT 0 1 0

TOTAL 37 31 43
The above graph compares the attrition in the first half of 2011, 2012 and 2013 in each
division. It can be observed from the same that, in division TLP, the attrition has been
maximum. It had dipped down during 2012, but again increased during 2013. In Div.
Finance too, there has been an increase in 2013 after a decrease in the previous year.
While in the PRS division, the attrition has increased by an alarming rate after a reduction
in 2012. HR has been a division where, there is no attrition in the first half of any of the
three years.

The maximum number of resignations during Jan-June 2013, are from TLP division, In
order to understand the reasons for the same, an analysis of the exit interview forms of
the executives who have resigned during this period is made.

Considering the priority given to the reasons for leaving in the exit interview forms, it can
be concluded that executives have left the organization mainly because of a better
role/compensation offered. But by making a summary of suggestions made by the
executives being interviewed, it could be understood that people were not satisfied with
the kind of environment prevalent in the division.

Most of the executives have indirectly mentioned about the presence of partial behaviour
of the Seniors in the division. Employees have expressed the lack of team spirit and lack
of leadership qualities at senior level.

Few executives expressed that there is lack of appreciation for good work done. All these
along with the existence of low salary structure compared to market trends, have become
the reasons for employees to leave the organization.

PRS (Product Safety) division had the second largest number of resignations during the
first six months of 2013. Here it is observed that an attractive job offer and better salary
became the main primary reason for attrition. Higher education is also one of the reasons.
(4 out of 8 employees considered this reason as important).
 CHAPTER- 6
CONCLUSION AND SUGGESTIONS
SUGGESTIONS
Many employees have suggested improvement in working environment employee
motivation in survey. So the companies should give attention to the factors which it can
improve itself internally

Even though the employees are satisfied with their nature of job, it is identified in the
study that many employees prefer to change their job due to lack of growth opportunities
in their job.so the companies can look for some innovative technologies to decrease their
attrition level but providing growth opportunities.

The companies should conduct regular meetings to know about what exactly employee
expect. Organisation should focus on exit interviews.

The companies may give training like personality development and self-improvement
training to the employees, every three or six months once this status has to be reviewed
and necessary action can be taken it is better to have such training in the future.

CONCLUSION
The Human Resource Dept. at TATA CHEMICALS LIMITED. is a perfect example of
integration of HR and systems. Though TATA CHEMICALS LIMITED has come out
from a merger phase recently, all the systems are already in place. Their systems and
procedures are well defined and work is made easy. But at times this proves as a
disadvantage to the company because, employees might not think much and go on with
the processes and systems as they are. They may not think rationally. This can lead to
stagnation.

I would ultimately conclude that the HR department at TATA CHEMICALS LIMITED

has to be a link between the employees and the management. It also has the responsibility
to bridge the gap between the various departments in the organization. HR needs to
change its role from a facilitator to a strategic business partner.
The main aim of any organization is to earn profit. But to attain the maximum profit, the
organization should concentrate more on employees and the ways to retain them for their
long run. From the study it is identified that lack of growth opportunities and salary are
the major factors which force employees to change their jobs. This study concludes that
to reduce attrition industries should create some opportunities for the growth of their
employees within the company should also think of recruiting people who are in the
vicinity of the industry, so that the

family related problems will not lead to attrition.

My involvement with the HR processes:

I was involved with almost all the HR processes and so I gained knowledge regarding all
the processes.

 Firstly I was involved with the joining formalities of a new recruit i.e. helping in
the check in formalities.

 Secondly I was involved for completing the reference checks of around 20 new
recruits who had joined recently.

 After this, I co-ordinated for the two training programs which were conducted
during my training period.
  I was involved in doing an audit of the leaves taken by the employees through the
leave management system.

 I was then taught to make the entries regarding tax exempted investments made
by the employees into the SAP system for calculation of tax of all the employees.

 I was also made to understand the making of a Training Calendar for the year by
amassing all the information regarding the training needs identified.

CHAPTER- 7
BIBLIOGRAPHY

• Abelson, M., B. Baysinger (1984), “Optimal and dysfunctional turnover: Toward

an organizational level model,” Academy of Management Review, Vol. 9 No.2, pp. 331–
341.
• Arnold, H.J. and Feldman, D.C., (1982), “A multivariate analysis of the
determinants of job turnover,” Journal of Applied Psychology, Vol. 67, No.3, pp. 350-
360.

• Arthur, W., Bell, S., Donerspike, D., &Villado, A.,(2006), “ The use of Person-
Organization fit in employment decision making; An assessment of its criterion related
validity,” Journal of Applied Psychology, Vol.91, pp. 786-801.

• Barrick, M.R., & Zimmerman, R.D.,(2005), “Reducing voluntary turnover,

avoidable turnover through selection,” Journal of Applied Psychology, Vol. 90, pp.159-
166

• Berg, T.R., (1991), The importance of equity perception and job satisfaction in
predicting employee intent to stay at television stations. Group and Organization Studies,
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• Boswell, W.R., Boudreau, J.W., &Tichy, J., (2005), “The relationship between
employee job change and job satisfaction: The honey moon-hangover effect,” Journal of
Applied Psychology, Vol.47, pp.275-301.

• Cotton, J.L. and Tuttle, J.F., (1986), “Employee turnover: A meta-analysis and
review with implications for research,” Academy of Management Review, Vol.11, No.1,
pp. 55-70.

• Dickter, D.N., Roznowski, M. and Harrison, D.A., (1996), “Temporal tempering:

An event history analysis of the process of voluntary turnover,” Journal of Applied
Psychology, Vol.81, pp.707–716.

• Gerhard, B., (1990)., “Voluntary turnover and alternative job opportunities,”

Journal of Applied Psychology, Vol.75, No.5, pp. 467-476.
• Glebbeek, A.C., & Bax, E.H.,(2004), “ Is high employee turnover really harmful?
An empirical test using company records,” Academy of Management Journal, Vol.47, pp.
277-286

• Hinkin, T.R., & Tracey, J.B.,(2000), “The cost of turnover: Putting a price on the
learning curve,” Cornell Hotel & Restaurant Administration Quarterly, Vol 41, pp.14-21.

• Mobley, W. H. (1982). Employee Turnover: Causes, Consequences, and Control.

Addison-Wesley Publishing, Philippines.

• Mobley, W.H., Griffeth, R.W., Hand, H.H. and Meglino, B.M., (1979), “Review
and conceptual analysis of the employee turnover process,” Psychological Bulletin, Vol.
86, pp. 493-522.

• Ongori.H.(2007);” A Review of the Literature on Employee Attrition, African

Journal of Business Management,” pp.049-054.

• Pettman, B. O., (1975), “Labour Turnover and Retention,” John Wiley & Sons,
New York.

• Pfeffer, J. (2005), “Changing mental models: HR’s most important task,” Human
Resource Management Vol. 44, pp.123-128

• Pfeffer, J., (1994), “Competitive advantage through people: Unleashing the power
of the workforce,” Boston, MA: Harvard Business School Press.

• Price, J.L. and Mueller, C.W., (1986), “Absenteeism and turnover of hospital
employees” .JAI Press Inc.
• Rappaport, A., Bancroft, E., &Okum, L. (2003), “The aging workforce raises new
talent management issues for employers” Journal of Organizational Excellence, 23, 55-
66.

• Schervish, P.G. (1983), “The structural determinants of unemployment,

vulnerability and power in market relations,” New York: Academic Press

Shaw, J.D., Gupta, N., &Delery, J.E., (2005), “Alternate conceptualizations of the
relationship between voluntary turnover and Organizational performance,” Academy of
management RETENTION”

WEBSITES
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QUESTIONNAIRES
 WORKING CONDITIONS

1. I love to work at this office.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

2. I wish there was other working shifts.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly Disagree.

3. I have a clear sense of future direction in this office.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly Disagree

4. The atmosphere of this office is friendly.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly Disagree

5. This office has policies that support its staff.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly Disagree

 NATURE OF WORK

1. My supervisor understands me and appreciates my work

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

2. My workload and expected completion times are reasonable.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

3. The workload in this office is distributed equitably.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

4. There are sufficient roles for staff to avoid job monotony.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

5. I have a clear understanding of how my job performance is measured.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

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  ORGANIZATIONAL PHILOSOPHY,SALARY & CAREER
PROGRESSION

1. I received a thorough orientation to this office and my job when I started.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

2. There is a spirit of cooperation among staff in this office.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

3. There are good incentives for staff in this office.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

4. Conflict among the staff in my office is managed effectively.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

5. I am satisfied with my pay scale in this office.

A) Strongly Agree B) Agree C) Neutral D) Disagree E) Strongly disagree

110