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1. Industry profile

In this competitive economy FMCG (Fast moving consumer goods) market is having

significant demand in low to middle income consumers and above all highly price sensitive.

It consists of goods, which are directly consumable, packaged and branded. The FMCG

market in India has undergone extreme changes following Economic liberalization,

qualitative and quantitative restrictions under the new trade policy. India stands as the third

largest industry in FMCG industry after textile and petroleum. The profile of FMCG industry

food and processed foods, personal care products and dental products. Insecticides, liquor,

batteries are also included in this category.

Progressive reduction in excise duties on major FMCG product categories, rapid

extensions of media reach especially TV, considerable caring of licensing restrictions are

some of major drives if the Indian FMCG market in the recent past.The industry contributes

to the exchequer by way of income tax and central excise to the extent of 95% and 16%

respectively of the total collection. It provides considerable employment both in terms of the

1994 data; it provided 6% of the total 9.1 million. The industry has a significant rural bias

and accounts for 56% of the total rural demand.

The fast moving consumer goods (FMCG) market in India has undergone radical

changes following economic liberalization, lifting of qualitative and quantitative restrictions

under the new trade policies and the country coming under the ambit of WTO. Some of the

major drivers of the Indian FMCG market in the recent past have been:

Progressive reduction in excise duties on major FMCG product categories

Considerable easing of licensing restrictions

Rapid extensions of meds reach especially TV.

Almost double the rate of economic growth as compared to the past and this

growth spans all levels of society.

For the consumer, the change has been heralded by a cornucopia of foreign brands now

available legally on shop and helves, which were earlier produced only through the grey

market. For the industry, the change has manifested itself in the entry of host of

multinationals that has earlier kept away from the Indian market because of official

restrictions. For the media, particularly the fledging electronic channels, the changes have

come as an advertisement bonanza as the new players and the old slug it out in a promotional

blitz to capture customer attention and market share.

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2. Company profile

a. Background and inception of the company

Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945.

Primarily an oil factory, the chief products. Primarily an oil factory, the chief products were

sunflower vanaspathi and 787 laundry soap (a byproduct of the vanaspathi operations). The

company was called western India products limited, with a modest presence in Maharashtra

and Madhyapradesh.

In the 1970s Wipro embarked on an ambitious phase of expansion and diversification.

It was in the early eighties that Wipro made it’s foray into the consumer care products.

Wipro, an organization which gives prominent importance to adopting technologies to suit

the environment in which it carries on it’s business. Inspiration, experimenting and

converting ideas into reality has been the culture of Wipro which results in getting the best

output. Wipro has laid great emphasis on Quality and Research by undertaking Six Sigma

projects. Wipro gives prior importance to the customer than organization with a human face

remains unchanged over a period of time.

Azim H Premji who is awarded as “Best ethical person” started the organization with

Vanaspathi production and followed by Toilet soap manufacturing unit.

Wipro consumer care and lighting has a profitable presence in the branded retail

market of toilet soaps, hair care soaps, baby care products and lighting products. It is also a

leader in institutional lighting in specified segments like software, pharma and retail.

They have been one of the fastest growing FMCG companies as reflected by the

organizational performance in the last three years. They have grown both organically and

through acquisitions.

Their growth has been lead by growth in toilet soaps (led by Santoor), domestic and

institutional lighting and their recent foray into modular furniture. They have also gained

from new launches in fabric wash and the wellness segment.

In India, the growth rates of the segments they operate in have averaged around 14%,

while they have grown at twice the market growth rates in the last three years.

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Timeline:

Wipro Limited was incorporated in 1945 and commenced it’s operations in 1946. Significant

milestones are:

1945: Incorporation of Western India vegetable products Limited.

1947: An Oil mill and hydrogenated cooking medium plant was set up.

1966: Azim Premji takes over the leadership of Wipro at 21 years.

1975: Wipro Fluid power plant was setup to manufacture hydraulic and pneumatic

cylinders.

1977: Name of the Company changed to Wipro Products Limited.

1980: Information technology services for domestic market started.

1981: Hardware Company is launched.

1982: Name of the company changed to Wipro Limited.

1984: Software products subsidiary Wiprosystems Limited was established.

1985: Toilet soaps manufacture begins.

1988: Wipro BioMed, a new business unit to market and service bioanalytical and

diagonostic instruments is launched.

1989: Joint venture with GE of United States for medical systems, Wipro GE Medical

systems Limited.

1990: Product software business discontinued software services begin.

1992: Lighting business and finance arm is established.

1994: Merger of subsidiaries Wipro technologies Limited and Wipro systems Limited

with Wipro Limited.

1998: Relaunch of Wipro identity with Rainbow flower and positioning statement,

“Applying thought”.

1999: Wipro Net set up by restructuring Wipro Limited’s communication services

bsiness to address the internet market.

2000: Six Sigma initiatives begun

2001: Wipro becomes world’s first P-CMM level 5 company.

2002: Wipro becomes CMMi.

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b. Nature of the business:

Wipro delivers unmatched business value to customers through a combination of

process of excellence, quality frameworks and service delivery innovation. Wipro’s business

can be broadly classified into the following 6 categories.

1) Wipro Technologies:

Wipro technologies in the global IT services business division of Wipro Limited

working in over twenty offices around the world, Wipro technologies use powerful

technologies to provide services for business transformation and product realization as

well as complete solutions for the service provider makes.

2) Wipro Infotech:

Wipro Infotech is a division of Wipro Limited and provides customers with high

value information technology solution, infrastructure services and platforms in India

and is all said to offer high end technology services and solutions for the Asia, Pacific

and Middle East Markets.

3) Wipro consumer care and lighting:

Wipro consumer care and lighting is the FMCG arm of Wipro Limited which

continuously introduces innovative products and adds value to the existing brands,

each of which is the promise of good health and value for money. Its brands include

Santoor, Wipro Shikakai, Wipro Active and Wipro babysoft.

4) Wipro Fluid power Limited:

Wipro infrastructure engineering (formally Wipro fluid power) was the Wipro’s first

diversification in 1975 to address the hydraulic equipment requirements of

mobile original equipment manufacturers in India. Over the past 25 years, the Wipro

Fluid Power business unit has become a leader in the hydraulic cylinders and truck

tipping systems market in India. Wipro Fluid Power intends growing it’s business by

leveraging its dominant market share in India to serve the global manufacturing

requirements of hydraulic cylinders and truck tippers.

5) Wipro GE Medical systems limited:

Wipro GE Medical systems are a joint venture between Wipro and General electric

Company. A part of GE Medical systems in South Asia, it caters to customer and

patient needs with a commitment to uncompromising quality. Wipro GE is the market

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leader with unmatched distribution and service reach in South Asia and is India’s

largest exporter of medical systems. Wipro GE pioneered the manufacturing of ultra

sound and computed to mography systems in India and is a superior for all GE

medical sysem’s products and services in South Asia.

6) WiproePeripherals(WeP) Limited:

Wiproeperipherals limited (WeP) is a leading IT peripheral solution services company

in India.WeP commenced operations in 1986 as a peripherals division of Wipro

Infotech, one of the largest IT Companies in India and then became an independent

corporate entity in September 2000. WeP is India’s largest employee owned

company, best known for innovation, e-enabled processes and customer forces.

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c. Vision, Mission and Quality policy

Winning is about making customers successful. Winning is

about making all stakeholders successful. In business, Winning

is not about ‘Winning against’ but its ‘Winning With’.

Intensity to Win is the burning desire to stretch and challenge

our limits. It is the desire to realize and expand our potential.

It’s about continuous innovation and striving to be better every

time. Its about excelling in everything we do. It’s about

multiplying forces as a team. No one wins 100% of the time,

but those who have the Intensity to Win, win more often than

not.

Vision:Fuelled by culture and values

Wipro is built on a foundation of Values. The values form the essence of their culture. The

values are a guide to their behavior. With 75,000 people across 29 countries, its’ the values

that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of

Wipro.

The spirit of Wipro is deeply rooted in their history and in what they are, and at the

same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of

Wipro- manifest it in thought and action.

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Spirit Of Wipro

Intensity to win

Make customers successful

Team, Innovate, Excel

Act with Sensitivity

Respect for the individual

Thoughtful and responsible

Unyielding Integrity

Delivering on commitments

Honesty and fairness in action

The spirit of wipro is an invisible synthesis of all three statements. It means manifesting

intensity to win, acting with sensitivity and being unyielding on integrity all the time.

Mission:

Quality has always been a strong part of Wipro’s proposition. Wipro boasts of many

pioneering achievements in quality journey. Quality is focused on not only in the product

or service that touches its customers, but also on internal processes and as an enabler

facilitating on going business transformation to meet dynamic market challenges.

Quality policy:

Their quality policy shall be:

1. To sustain a competitive edge in quality through continuous assessment of

customers expectations and needs.

2. To pursue excellence in all aspects of production operation.

3. To promote a culture of conforming to specifications and requirements.

4. To involve people at all levels in the pursuit of excellence.

5. To spread a culture of excellence to all the vendors.

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d. Product/Services Profile

TUMKUR FACTORY

Activities of Tumkur factory:

The Tumkur Factory manufactures the following products:

1. Toilet soaps.2. Bathing bar3. Noodles for bathing bar and Toilet soaps.4. Distilled Fatty acids

In the process the following by products are generated.

5. Light ends6. Pitch 7. Crude Glycerine

Wipro consumer care business offers established brands addressing consumer needs

in personal care, toiletries, and baby care and lighting categories. The product

includes Santoor brand of soap and talc, Wipro Shikakai soap, milk and roses soap,

Wipro baby soft range, Wipro active talc, Wipro brand domestic lighting, commercial

and institutional lighting.

Table showing Wipro Products

Soaps Toiletries lighting

Santoor

Wipro Shikakai

Wipro Active

Milk & Roses

Santoor Talc

Fairness cream

Wipro Active Talc

WBS Baby

Bulbs

FTL

C & I

Lighting

Soap segment:

Roughly 50% of Wipro’s consumer care business comes from the toilet soap

category. Where it’s biggest brand till date Santoor, holds way. Wipro’s share in the

national toilet soap market is just 4.6% reflecting it’s skewed regional character in the

FMCG sector. For instance, Wipro through Santoor is the leading soap markete in

Andhrapradesh with 18% of market share. Chandrika enjoys strong equity in South

India. The market for Ayurvedhic and Herbal products is growing and Chandrika

though not as large a brand as the Medimix is poised to take advantage of it. If the

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company wills it Chandrika, though not as well distributed in up country markets, like

Jeeva from Jyothi labs and Medimix has good brand properties which Wipro can

build. Wipro is extending milk and roses not only to sell in Punjab, to other states in

the north. Wipro babysoft soap, pitted against global Johnson and Johnson accounts

for 30% share at the segment in Andhrapradesh.

Lighting segment:

Lighting has seen considerable action especially in the commercial and institutional

segment with niche verticals such as pharmaceuticals, retail, IT and outdoor media

reporting significant growth. Wipro faces competition from Philips and G.E. in

private sector order, while its up against Bajaj and Crompton in its bid to bag the

Government sector pie. On retail side of lighting business Wipros overall market

share is pegged at nearly 5% while Philips, which is a prominent player, claims a 36%

market share.

Wipro consumer care & lighting has delivered improving return on capitol employed,

which at last count was estimated at 86%. Its operating margins are over around 15%

to 17%.

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e. Area of Operation

Wipro Technologies, the Global IT services division of Wipro Limited NYSE:

WIT (incorporated in 1946, in operation since 1945) is an India based global IT

services, IT solutions and technology services center; established in 1980 in India. It

has its head quarters in Bangalore, and is listed on the Bombay Stock Exchange,

National Stock Exchange of India and the New York Stock Exchange. As of 2004, it

was the fourth largest company in the world in terms of market capitalization in IT

services.

Wipro technologies have 30 offices worldwide with 50, 100 employees and

over 300 customers across USA, Europe and Japan including 50 of the Fortune 500

companies. Wipro has 54 dedicated development centers across India, Europe and

United States and also has 30 offices in North America, Europe and Asia Pacific. In

India, Wipro has operations in Bangalore, Mumbai, Pune, Chennai, Hyderabad,

Gurgaon etc.

Global

Wipro Company today is a global corporation having operations in 29 countries

through more than 50 subsidiary companies, a few joint ventures and associate

companies.

Americas

United States of America, Canada, Brazil

Europe

UK, Germany, France, Sweden, Netherlands, Finland, Switzerland, Romania,

Portugal, Austria

Middle East

United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, Egypt

Asia Pacific

India, Japan, China, Australia, Singapore, Malaysia, Taiwan, Hong Kong,

New Zealand

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f. Ownership Pattern

Wipro Limited is a public listed company. The shares outstanding as of June

2006 are 1,43,19,92,871 equity shares. The shares beneficially owned by the directors

include the equity shares owned by their family members to which such directors

disclaim beneficial ownership. The number of shares beneficially owned includes

equity shares, equity shares underlying ADSs.

Azim H Premji who is also the chairman and managing director holds the

majority share holding of 81.09% of Wipro Ltd. The non promoters holding

comprising of Institutions like mutual funds, banks, insurance companies, foreign

institutional investors and corporate bodies make up 5.13% and individuals hold the

remaining 13.78%

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g. Competitors information:

IT Services and products

The market for IT services is highly competitive and rapidly changing. The

competitors in the market includes global players like IBM, Hewlett Packward, EDS,

Dell Accenture and Indian companies such as TCS, Cognizant Infosys, Satyam and

HCL Info systems, It is anticipated that Lenovo, which has acquired thae PC business

of IBM, will be a significant player in Indian IT products market. Global players like

IBM and Hewlett packard and to some extent sun Micro systems have been

increasingly focusing on increasing their presence in the Indian markets. Some of

these competitors have secured large IT services contracts in India.

. The ability to compete will depend on a number of factors not within control

which include:

The ability of competitors to attract, retain and motivate highly skilled IT

services professionals.

The extent to which international competitors expand their operations in

India and benefit from the wage differential;

The price at which competitors offer their services; and

The extent to which competitors can respondent to a clients needs.

In BPO services, the primary competition is against the in-house business process

outsourcing units of international companies, other than IT service providers, global

competitors from other shore locations like the Philippines and Ireland.

Consumer care and lighting

Competitors are located primarily in India and include multinational and

Indian companies such as Hindustan Lever for soaps, toiletries and General

Electric and Philips for lighting. Certain competitors have recently focused on

sales strategies on increasing volumes through lower prices. Sustained price

pressures by competitors may require Wipro to respond with similar or different

pricing strategies.

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h. Infrastructure facilities:

Wipros head quarters and corporate offices are located at DoddaKannellli,

sarjapur road, Bangalore in India. The offices are approximately 3, 00,000 square feet.

Wipro has purchased approximately 2, 62,000 square feet of land adjoining the

corporate offices for future expansion plans. Wipro has one sales and marketing

offices located in each of the following countries: Canada, France, Germany, Japan,

Sweden, Italy, Switzerland, Finland, the Netherlands, the United Kingdom, China and

Japan. In addition there are eleven sales and marketing offices in the United States. In

addition there are eleven sales and marketing offices in the United Sates. Wipro

operates in ten manufacturing sites, aggregating approximately 12, 64,871 square feet

and approximately 4,037,997 square feet of land. It owns seven of these facilities,

located in Amalner, Tumkur, Bangalore, Mysore, Hindupur and Chennai and

Pondicherry in India. It has leased on a long term basis two facilities located in Waley

and Baddi, India. There is one software development facility in London, United

Kingdom equipped with a world class technology infrastructure that includes

networked work stations, servers, data communication links, captive power generators

and other plants and machinery.

Tumkur factory layout

Total site available : 20 Acres

Plant & Building area : 8 Acres

% of utilization : 41%

Plantation Area :12 Acres

% of utilization :59%

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i. Achievements/Awards

Wipro has made a name for itself as a company providing reliable services

worldwide. The technological expertise and service skills exhibited by Wipro have

been appreciated by its list of clients scaling various industry sectors. The media has

been quick to document the impressive work, milestones and awards achieved by

Wipro.

Wipro only Indian company in the business week’s IN25 “Champions

of Innovation” list.

Wipro BPO recieves prestigious “Outsourcing Excellence Award”.

Named India times ‘BPO Company for the year.’

Only Indian company to be ranked among the Top 10 Global

Outsourcing providers in the IAOP – Fortune Global 100 listings.

NASSCOM congratulates Wipro Technologies as show case company

for IT innovation in India 2005.

Global Make 2005 Award; Most admired knowledge Enterprise Study:

Telcos Oct 2005.

Wipros Gurgaon development center awarded platinum rating: US

Green Building Council, sept.2005

Wipro among World’s 400 best big companies: Forbes, Sep 2004.

Among 10 outsourcing vendors in US: META Group, June 2004.

Ranked 7th amongst software services companies in the world

(Business week InfoTech 100, November 2002).

Among the Top 5 IT companies base on equity (Business week, Info

Tech 100, June 2002).

India’s most valuable company (Business today, October 2001).

Part of TMT (Technology -Media -Telecom) Index of the New York

Stock Exchange.

Top 3 employees in Indian IT -data quest 2002.

Business innovation award for off shore development. (Electronic

and software export Promotion council, 1993).

Corporate audit function: commitment to quality improvement award

(Institute of internal auditors).

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“Bravo! Partner of the year” award from Best By. (Best buy recognizes

Wipro as their best IS partner for the year 2002).

Spectra mind awarded the first runner’s up for excellence in innovative

HR practices in a survey organized by Watson Wyatt and Delhi

Management Association, October 2002).

KMWorld’s km Reality award for 2002 in recognition of Wipro’s

knowledge management practices and processes.

IEEE Award for software process Excellence First Company outside of

US to be conferred this honor.

ITSMA Award for services Marketing Excellence Integrated lead

Generation program conferred top honors.

IDC CMO Best Practices Award for marketing measurement and

metrics.

Top company for leaders in Asia Pacific-2003 in Hewitt Survey.

The golden web Awards 2003-2004 for the wipro website:

www.wipro.com

Ultra web level 3 Award for the Wipro Website, February 2003:

www.wipro.com

K2 excellence Silver Award, February 2003: www.wipro.com

Dexter’s Gold Web Award for the Wipro Website, February 2003:

www.wipro.com. The gold award is the highest Dexter award and is

given to only the best web sites.

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j. work Flow model

The internal operations of the Factory are divided into the following five primary functions.

1. Commercial - Material and Distribution, Planning, Procurement, Inspection, Storage and Distribution.

2. Manufacturing.3. Quality Control & Effluent treatment.4. Engineering.5. Accounts, Personnel, Boiler and Utilities.

a. Materials and distribution – material planning, Inspection and Storage, Distribution of finished goods

PRODU

b. Manufacturing

c. Engineering

d. Contracts and amendments

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PRODUCTION PLAN

RECEIPT INCOMING QC STORAGE

MANUFACT-URING SECTION

FINISHED GOODS

STORAGE

RECEIVING DESP.PLAN FROM BO

ARRANGE TRANSPORT

ARRANGE DESPATCHES

PRODN. PLANNING

MANUFAC-TURING

INPROCESS QC

PACKING FINAL QC

FINISHED GOODS

MATERIALS & MANPOWER PLANNING

MAINTANCE TRIAL RUN HANDOVER EQUIPMENT

CUSTOMER MADD CONTRACTS & AMMENDMENTS

REVIEW WITH CONCERNED QLTY & QTY

INFORMATION TO AFFECTED DEPT

PERSONNEL ACCOUNTS UTILITIES

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k. Future growth and prospects

The objective of Wipro is to be a world leader in providing a comprehensive

range of IT services to their clients. The markets are undergoing rapid change due to

the pace of development in technology, changes in models and changes in the

sourcing strategies of clients.

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Part B

Mckensy’s 7S frame work with special reference to organization under study

Structure

COMMERCIAL DEPARTMENT

Material admn. & Stores warehouse distribution dept.

COMMERCIAL DEPARTMENTAL STRUCTURE

Commercial department plays a vital role in the day-to-day activities in the factory.

Materials are planned depending upon the marketing environment which further depends on

the market study and commitment by the sales team. Materials are sourced through

authorized stockiest and directly from the manufacturers at the best possible cost and who are

evaluated form time to time for quality, quantity and timely service

Commercial department is considered as the most important department as it meets

the Raw Material requirement of the production departments, which are essential for the

production purpose. The requirement plan is prepared commercial department based on the

requirement of marketing depending on the forecast made by marketing materials which

helps in finding out future requirements, the raw materials to be purchased etc., Materials of

good quality are purchased at most economical cost by this department. It is undertaken

because:

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Factory manager

Commercial manager

Senior officer materials

Commercial assistants

Commercial assistants

Sectional in charge

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Commercial function consists of mainly

Purchase function

Distribution function

Commodities function

Stores function

1. Purchase function:

This function is taken care by a separate section, which deals with the procurement of

raw material from various suppliers by keeping in mind the quality aspect. This section

ensures that vendor supplies in accordance with the quality assurance department’s

requirements through proper inspection and testing .Wipro maintains a very cordial

relationship with it’s suppliers.

The head of the Commercial department is the commercial manager who reports to the

general manager.

2. Distribution function/warehouse function:

Distribution function is a service function undertaken by Distribution section. In

Wipro, distribution takes place according to the requirement and estimated sales placed by

different marketing area offices at Business Office in Bombay, where centralized distribution

department is there for facilitating distribution. Economy aspect is considered while making a

distribution which includes items like Toilet Soaps, Oil etc.

Distribution reports are prepared, production status, stock reconciliation, freight

standard are also checked and records relating to it are maintained.

3. Commodities function:

It is a service function rendered by the commodities section, which acts as a custodian

of oils. Oils are purchased through daily purchase commitment with the business office

Bombay, according to the standards fixed by the president. The different types of oil

include palm oil, coconut oil etc. while purchasing oils the “General terms and conditions

for purchase or delivery of Wipro” is followed. Maximum time limit for receiving of oil is

4 p.m. Daily Material Administration Department (MADD) reports are maintained, which

contains the information about the opening stock of oil, receipts, issues, closing stock, des

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sent to Bombay. Purchasing is done through brokers. In Case of delay in delivery, debit

note is issued and penalty is levied for which broker is responsible.

The commitment register is maintained which is a book of prime checking. Separate

books are maintained for imported oils and other locally bought oils. The commercial

manager is authorized to purchase bulk oil in expectation of increase in oil price in future

but, the excess cash ploughed for this purpose get interested i.e. interest is charged for

excess cash used.

4. Stores function:

An efficient and well equipped “stores” section is an asset to effective inventory

control. Stores are the place where raw material and other purchases are kept. In stores

department the materials are classified according to the needs of the production departments.

Eg. Materials for refinery and T.S.P. are kept separately.

The materials after being ordered by purchase section come to the stores which

undergo for inspection, after that only material are stored as per the needs of various

production departments. The rejected materials are stored as per the needs of various

production departments. The rejected materials are kept side and sent back to suppliers.

Certain materials bought are tested by quality assurance lab and only after its verification

materials are accepted and stored.

The stores section is spacious and also has a cold storage area in which materials are

kept to prevent any kind of deterioration.

Computerization of purchase department facilitated the easy access to information

relating to the stores such as stock position, value, quantity of raw material issued, quantity

remaining etc.

The main functions of stores are:

Receipt of raw material from vendors after verifying delivery Chelan

Inspection of raw material

Issuing of user departments by issue slips

Updating of stock ( stock verification)

Stores work in close co-ordination with purchase and finance department. For

procurement of raw material, standard is set by commercial manager for maintaining quality

level which is an element according to Wipro.

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ENGINEERING DEPARTMENT

ENGINEERING DEPARTMENT STRUCTURE

The important and main function of the engineering department is maintenance

department is to keep the machines in good conditions (i.e. running efficiently and

effectively). This department has to see that production process is carried on smoothly,

keeping in accordance with plans and schedules and reducing the idle time of machines. This

department is mainly concerned with the mechanical, electrical and civil works relating to

machineries.

Some of the important activities performed by this department are as follows:

Keep the machine in proper condition and avoiding downtime of machineries.

Projection of working of machines and modification undertaken in case of

necessity to save power and time and to keep up production

Conducting periodic checking and planning for uninterrupted, systematic

operation.

Maintaining records relating to machineries.

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Factory Manager

Officer Maintenance/ Shift in charge Maintenance

Operator

Manager Maintenance

Welder

Helper

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Placing orders with commercial department for the spare parts required and

checking the quality and specification, standard of it when it is received.

Boiler inspection, factory inspection i.e. pressure vessel maintenance.

Electrical Diesel generator section:

This section takes care of the following activities:

o Overhauling and generators maintenance.

o Electrical installation.

o Checking all electrical equipments like earth etc. preventive maintenance,

supervision of major break down.

o Work schedule preparation and if position is critical, making shut downs.

o Removing dust, maintenance of break-down records and planned measures

relating to it.

o As a preventive measure checking cabling, starters, sign boards, earth’s

loose connections and taking safety measures.

o Checking whether minimum electrical material stocks are maintained in

stores and if not placing purchase requisition.

o Supervision of workers.

o Proper lubrication of machines and greasing and regular audit of all critical

parts after their identification and keeping records of it.

Major repairs are handled by sub-contractors. Technical assistance is also

taken from outside to improve the quality of maintenance. Six sigma for

maintenances adopted which covers the following activities:

Meeting customer requirement (i.e. production department

requirement). Finding cause for defects and preparation of cause

and effect diagram so that affected areas are made defect free.

Action plan preparation for implementation.

Preparing checklist for preventive maintenance, submitting reports

on observations made and giving suggestions/ proposals related to

it.

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QUALITY ASSURANCE DEPARTMENT

QUALITY ASSURANCE DEPARTMENT STRUCTURE

Quality: means fitness, merit or excellence. In purchasing, quality is related to

suitability and cost. Quality is not always related to inner excellence. The best quality is

that which can be purchase at reasonable cost to fulfill the need. In Wipro, quality and

service get prime importance and price get the secondary consideration.

Quality Assurance: all those planned and systematic actions necessary to provide

adequate confidence that a product/ service will satisfy given requirement for quality.

The quality policy of Wipro, is to design, manufacture and market at competitive

prices, products of such quality which results in total consumer satisfaction, quality

reputation and market leadership.

Some objectives of quality assurance department are:

Cost reduction.

Quality and process improvement and development.

Maintaining required quality manuals as per internal and external / statutory

specifications and so on.

The main functions performed by this department are:

Raw material testing.

Intermediate samples and finished products are also tested.

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Factory manager

Quality assurance manager

ETP

3 Operators1 each in shift

QA7 Analysts2 in each shift1 in general shift

Contract2 helpers(QA)1 in gen.shift1 in night

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In case, when products quality is not met, the materials are rejected and for

finished goods dispatching is not permitted. While purchasing ago based products if

quality is not met, rebate in payment is done. The specifications for products are

revised yearly and the standards are set b the department itself.

The Wipro has implemented the quality policy through Company wide quality

management programme called Six sigma which emphasizes on:

Improvement of lather in soap.

Change in the shape of soaps.

Use of latest technology, management tools, statistical techniques,

defect prevention methods and document procedures in all activities.

Process control during purchase, manufacture and testing.

Participation of all departments and all employees in continuous

improvement activities through structured six sigma quality

improvement proramme.

Regular reviews and quality testing are performed to monitor

effectiveness of programme.

The daily audit and weekly audit are done, which is submitted to

president. No time and date for audit is specified to ensure continuous

awareness among other departments.

The authority is delegated to sub-ordinates and has full freedom to take

decisions relevant to their work and they have given full chance for self-

development. Some samples are given to different employees to conduct test

for the purpose of internal analysis and also to know the employees capability

so that proper guidelines are given to them in case of any difficulty.

The new quality testing improvement if any made will be

communicated to other plant situated at Amalner to help in overall

development of the concern.

In Wipro, the overall quality assurance department is looked after by

the quality control manager who is the head of the department, who is assisted

by chemists and he is responsible for quality programme implementation and

acts in consultation with vice-president (Q.A) for this purpose.

SSIBM -2009 24

WCCLG, TUMKUR

PRODUCTION DEPARTMENT

All the aspects relating to the manufacture of Soaps are taken care by this department.

The products produced essentially meet the application and quality requirements of the

customers and yet conforming to National and International standards including aesthetic

characteristics with special attention to ease and economy of manufacture.

Some of the functions performed by production department are:

Directing and controlling of production operations to meet business plan within

approved budgets which include material conversion cost, usage of utilities and

chemicals, inventory and operating maintenance costs.

Taking care of safety programmes.

To supervise, appraise, motivate and lead sub-ordinates to achieve planned

performances through mutually supportive organizational relationships.

Carryout bench marking exercises on competitor’s product to improve quality of

products.

To install, implement and maintain quality system in accordance with standards.

Keeping relationship with other departments and business office and provision of

accurate information in a supportive manner.

Providing support and guidance to shift officers in increasing efficiencies of

operations and removing bottlenecks.

To ensure compliance with statutory regulations of FDA/ weights and Measures Act

and also review quality and management by conducting meetings.

Monitoring manpower usage and production to achieve planned productivity ratios.

Participating towards product development by planning and organization pilot and

plant level trivial.

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Problem solving/complexity:

Processing of raw material which is oil based has to be carried out with

minimum information and analytical support, without affecting operational

efficiencies.

Regular analysis of operations and processes to increase efficiency with

respect to cost and volumes.

Constantly interacting with different divisions and control of in process

socks so as to be within approved limits.

Planning and coordinating departmental activities during periods of high

absenteeism and sudden pressures from market.

Meeting statutory requirements and keeping with production schedules and

keeping abreast of latest technology development in new methods,

materials, process and products.

Job purpose:

Planning, organizing and controlling the manufacture of Toilet soap, fatty acid

and glycerin noodles in line with business plan, meeting norms of quantity,

cost, quality and statutory requirements.

There are two production departments viz,

1) FAG plant &

2) TS plant engaged in the manufacture of Fatty Acid and Toilet soap

respectively.

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FAGP (Fatty Acid and Glycerin Plant):

FAGP STRUCTURE

This plant was started in 1990. In FAG Plant, Fatty acid was produced.

There are about 15 workers in 3 shifts working in this plant. Production

manager is in charge of this plant and he is responsible for production planning,

control, maintaining coordination with customers, keeping interaction with inter

departments, providing necessary raw materials to the process. Next to

production manager, junior officer of production is there who look after the

implementing part of production plan, communicating production plan to shift

in chargers, effective coordination with employees as well as higher authorities,

interacting with other departments in providing necessary raw materials and

transferring finished goods, solving interdepartmental problems etc.

Shift in chargers are responsible for implementing production plan as per

instruction from higher authorities. Coordination and control over jobs in

respective sections with concerned employees. Handling maximum

responsibility during shift, making decisions during shift timings when higher

authorities are not available.

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Factory Manager

Manager FAGP

Shift Officers

Charge hands Operators and helpers

WCCLG, TUMKUR

.

TSP (Toilet Soap Plant):

TSP STRUCTURE

Production officer who is below production manager is responsible for

reparation of cumulative reports, maintaining T.F.M.(Total Fatty Matter),

conducting new trial , following standards, allotting shifts to people,

absenteeism, overtime control and keep informing to production manager.

Production function shift in chargers look after the quality, production,

out skipping and safety matters.

The raw material used in this plant is Fatty Acid and Caustic Soda and these

raw materials are received from FAG plant as by-products through placing

weekly requirement with FAG plant and stores. Any wastages arising during

the time o production like stiffener and wrapper are thrown or burnt out.

All information relating to production, stocks are recorded in log books

and compressed information are written in main book which also includes

human resource used. The records maintained are shift report, operation report,

transfer slips prepared to make Distilled F.A. report, process report by quality

department, quality control report and weekly reports.

SSIBM -2009 28

Factory Manager

Charge hands

Manager TSP

Shift Officers

Operators & Helpers

WCCLG, TUMKUR

ACCOUNTS DEPARTMENT:

ACCOUNTS DEPARTMENT STRUCTURE

Finance department is considered as a nervous system of the organization

as performance of every activity needs money one way or the other. There is

also necessity of maintaining proper books of records relating to the

transactions for which existence of accounts department is essential.

Objectives:

The objectives of the accounts department are to help the firm to achieve its

target for the year in coordination with other departments, keeping up-to-date

records and making it easily accessible.

Wipro makes efforts to provide the customer the desired goods and to

maintain a very high quality and it is ultimately directed towards achieving

profitability which is a must for concern’s growth and sustenance.

Functions:

The important function of accounts department is maintaining different

accounts for carrying the business. These accounts include purchases a/c, sales

a/c, cash transactions, payment of salaries and wages including incentives to

employees, central excise and sales tax payments.

Costing section:

This section follows a standard costing system as a cost control technique.

Each processes idle time to be taken, quantity of raw material used, rate and

other details are maintained and it is reviewed yearly and rates are changed

SSIBM -2009 29

Factory Manager

Manager accounts

Resident Engineering

onLien

Jr.Offer payment &

Banking

Officer Account’s

sales tax and commercial

tax

Staff costing & Finance accounts

WCCLG, TUMKUR

quarterly. In Wipro accounts are maintained as per periodic cycle (PC). Four

weeks make 1 PC and 13 weeks make 1 quarter. Monthly MIS is done and

reports are maintained.

President and specialist in concerned field fix the standard for each item

and for each step control is exercised. The duties of this section are to find any

adverse variation in cost and planning about activities. Process costing is done

for each process.

Accounts section:

The important functions carried on by this section are:

Passing entries of purchases

Maintenance of vouchers

Making financial entries

Excise regulation as excise is calculated on the basis of cost statements.

System section:

The system analyzer and the programmer take care of this section and

perform the activities like software, hardware management, programme

development and rectification of problems if any.

SAP is used in programming and UNIX operating system is followed in Wipro.

Hardware maintenance is taken care of by the people from Bangalore division.

Wipro has more cash transactions than credit. It has minimum number of

debtors for whom maximum of 45 days of credit period allowed for payment

and now, extending the period to 60 days was in process. Bills are managed by

stores and are then sent to accounts department. This section looks after bank

operations, costing works and maintains party’s accounts also. Most of

transactions are made through DD and Cheques, valuation is also done. Sales

may be consignment sell or direct sell. Sales invoices are prepared as per

statutory requirement and only some scraps are sold from unit.

Depreciation policy:

The firm follows the rates and procedures indicated in schedule 16 of

company’s act, 1956 to provide for depreciation on assets. The firm follows the

straight line method of depreciation.

Cash and Bank Transactions:

All cash transactions are affected by accounts departments. These may be

in the form of sale proceeds of stearic acid, scrap and toilet soaps. Receipts are

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received from Bombay by T.T. Other items are sold on advance payment but

for stearic acid 30 days credit period is allowed. The books maintained are:

Sales register, Product summary (monthly), Tax summary (monthly),

Purchase register, Summary vouchers, Bank and cash books, General ledger,

Party’s ledger

The transactions of this unit are done through SBI and B.R. statement is

prepared for the transaction for verification purpose.

Finance for new projects:

Working capital is used as one of the sources for financing and sales

earnings are also used for financing. Treasurer department in Corporate

Office will take care of outside source for financing purpose.

The Accounts department controls the expenditure by formulating

budgets. It advises management and signals wherever the department

budgets exceed the actual budgets. The department helps and activates the

collection from customers. It helps to keep the interest on overheads less tan

the budgeted level and helps in achieving profitability.

Excise and sales tax:

Raw material is used for final products art purchased after paying duty on

it by the party which is accounted in books A part 1 where final

consumption of quantity entries are made. A part 2 consists of amount of

duty paid by the suppliers.

To clear the final products 16% duty is paid. CENVAT is also taken care

off and materials are classified as finished and raw material going towards

final products to make it easy for calculation. Raw materials a/c, capital

goods a/c are maintained for record purpose. Factory gate sale is based on

costing and in consignment selling fixed trade discount; expenses are

deducted from raw material cost and net amount used for calculation.

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HUMAN RESOURCE DEPARTMENT:

HUMAN RESOURCE DEPARTMENT STRUCTURE

Personnel department is well organized and prime importance is given to

workforce which is the primary objective of personnel department and focus

is more on labor rather than machine.

Functions:

Man power planning: Wipro forecast personnel needs, assesses

personnel supply and match supply demand factors through

personnel related programmes. To achieve long term objectives

regular manpower planning is essential.

Recruitment: Wipro recruit highly qualified and experienced

persons to right jobs. Recruitment is based on written test, group

discussions and interviews. Training and development after

recruitment, training is given to fresh employees to develop specific

skills, impart knowledge and abilities so that current employee’s

performance can be increased which in turn increases productivity.

SSIBM -2009 32

Factory Manager

H R Manager

Security Officer

Staff security shift incharge

Chief HR Executive

WCCLG, TUMKUR

Performance appraisal: Employees performance is measured with

such factors as job knowledge, quality and quantity of output,

leadership abilities, supervision, cooperation, versatility, health etc.

Employee remuneration: it is one of the major functions of

personnel department. Remuneration is paid to the workers for their

efficient work in the organization. Remuneration depends upon

nature of job, seniority and merit. Workers are loyal to their jobs and

to the organization in Wipro.

Integration: integration of management and workers are quite often

so those grievances of the workers are solved, this increase the

harmony and discipline in the organization.

Promotion policy: works men are promoted on the basis of

Vacancy

Seniority

Staffs are promoted on the basis of

Merit cum seniority

Performance

Welfare measures:

Wipro runs a canteen to facilitate its employees. The

company gives 90% subsidized food to the

employees.

Medical facilities provided to the employee are

absolutely free of cost and there is a provision made

for annual medical check up to all the employees.

Industrial relations in Wipro are good. Company products are given

to the employees at reduced rates and rewards are given to the

departments which have achieved the set target. Uniforms, shoes and hand

gloves are provided to the employees.

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Skill:

This module highlights the procedure for identifying, organizing and reviewing.

Training programme for employees at Tumkur. This is prepared in accordance with

competence, awareness and training procedure of quality manual

Procedure:

The success of any organization depends upon the knowledge, skills and capabilities of its

people. It is very essential that an organization identify the factors, which would affect the

performance and initiate actions to correct these. One of the interventions could be well

designed. The employees in the factory are put through the following training programmes.

1. Induction training

2. Orientation training

3. Need based training

4. Development training

5. External training

6. On-the-job training

Except for On-the-job training all other programmes are co-coordinated by personnel

department.

1) Induction training:

All employees upon joining go through an induction-training programme conducted by

personnel department.

This programme comprises of the following:

“Our promise” as enumerated by the company chairman are

covered in detail by personnel department.

A brief session about the organization, organizational structure,

product profile and company policies.

The employees are briefed on the functional knowledge of each

department.

The Head of the Department in which the employee is placed, gives a briefing on the

quality system of the factory department and new incumbents role in the system.

2)Orientation training:

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The orientation for all newly inducted employees is organized by personnel

department and training is imparted on the following subjects as show against each of the

following:

5S (House-Keeping)- personnel department

Plant & departmental procedure- respective department

Quality system: confirming ISO-9001-2000 –Management repetitive

Safety policy & procedure- safety coordinator

1) Identification of training needs:

The training needs for Jr. Staff and management are identified through the

Annual performance appraisal by Head of the Department. Such identified training

needs are summarized and recommended by Personnel department.

Through performance review by HOD on an “On Going” basis individual

training needs arising out of Annual performance appraisals are picked up and

seminar or courses that address these needs are identified.

Training of workmen is basically on the job activity. They are trained

periodically on the subjects/ areas as specified. The training needs assessment for

them will be limited only to any specified requirement for the job.

Training needs for trainers will be assessed once in a year by Personnel

department in consultation with factory managers. Training will be imparted as per

assessment.

2) Need based training programme:

i. The training needs of employees (except for on- the job training) as identified by

HOD is based upon the performance or wherever any specified training needs arise

are recorded in Training need assessment form.

ii. The filled in training need assessment forms are forwarded to personnel department.

The training calendar is prepared for the financial year by personnel department in

consultation with HODs.

iii. Considering the area/ course content of training, in-house or external training

programme is organized. In-house training imparted by approved trainer.

3) Development training:

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Development training is organized for individual to enable them to be effective and

productive on their respective jobs. The focus of such training is on methods and

techniques for day-to-day work. The emphasis on knowledge, skills up gradation,

sharing of best practices across Wipro. The individual required to attain such training

are identified and recommended by personnel department to factory manager.

4) External training programme:

Training sponsorship forms for employees who are to be sent for external

training programme are filled by departmental head. The personnel department

scrutinizes such training requirement and submits recommendation to factory

manager. The final approval for such training programme is given by factory

manager.

5) On the job training:

Training programme is organized by every department for the following areas:

a) Unit operating procedure (U O P)

b) Plant safety procedure (P S P)

c) Plant emergency plan (P E P)

d) Unit emergency plan (U E P)

e) Job safety analysis (J S A)

f) ISO:9001:2000 Awareness

The common training subjects for all employees are:

First aid

Safety awareness

Hygiene sanitation and house keeping

First safety

The training records for On-the-job training are maintained by

respective department for their employees. Information is sent to

personnel department for such subjects in 6 months i.e., once in a

period of two quarters,

Quarter I and II

Quarter III and IV

6) Training Records:

Training records are maintained by personnel department for all In-House

programmes, including on-the –job training. Personnel department records all training

programmes in “Employee Training Record” for every individual.

SSIBM -2009 36

WCCLG, TUMKUR

Training records are signed by employees for recording the proof of having

attended the training programmes. Training records are kept in the respective

departments and a copy is sent to personnel department.

In case of In-House training programmes conducted by internal and external

sources for an identified group of employees, the details are entered in training record

which is signed by all employees attending the programme. One copy is sent to

personnel department for making entry in “Employee Training Record”.

For the purpose of conducting training, a list of approved trainers from

internal sources is maintained. It is prepared by management representative and

approved by factory manager. All facilities are provided for the activity

Records of training feedback receive from the trainers and their sectional

heads are maintained by personnel department.

7) Feedback:

Employees undergoing other than On-The-Job training give feedback

on the adequacy and effectiveness or training programmes in the

feedback form to personnel department.

8) Review of Training programme:

The feedback received from trainers is periodically reviewed by Head

of Personnel in consultations with departmental heads too.

Make necessary changes/ improvements in programmes to

meet changing training needs of employees.

Evaluate training programmes conducted by external agencies

to decide relevancy for sponsoring candidates or continuing

with external agencies.

The reviews are recorded.

Training status is maintained on the training status format by

all the departments.

9) Maintenance of records:

a) The employee training records are maintained as long as the employee

is part of factory team.

b) All the quality records are maintained for a period of one year. After

the retention period is obsolete, records shall be removed from Quality

system records.

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WCCLG, TUMKUR

Style:

Style refers to the leadership style that a leader/ a head adopts to lead a team/ the

members under him. It is not only concerned with leading but also controlling them. As

leadership style could be autocratic, democratic or group effort, the selection of type of style

depends on how and organization depends on how an organization decides to achieve its

goals. At Wipro, each department has HOD who is entirely responsible for the actions

carried by each member of his department. At wipro it is completely democratic and group

effort.

Democratic: Each staff member has the right to take any decision which would result

in befit to the company. The companies always encourage decisions which are

innovative in nature and which inurn would reduce the cost of doing a job.

Group effort: there is an emphasis to carryout a work through a “Team work” wiper

emphasizes on group effort: they believe that not one individual is superior to/ greater

than others.

Strategy:

The competition has made the existence of companies’ havoc. There are many

strategies followed by many countries to survive. Some strategies are:

Price strategies

Quality strategies

Reduce wastage etc.

At Wipro, they have been able to survive in the market by following the above

strategies more effectively. One of the major strategies followed by WCCLG is Six sigma

strategy. Wipro adopted Six sigma in May 1996. six sigma standard is mainly undertaken

to reduce the defects to the main level cycle time reduction, which can be enforced with

the help of learning and internalizing quality through disciplined, project based approach.

On 14th November 97, Wipro launched six sigma, the mother of all quality initiatives. In

simple terms, six sigm involves reducing defects to 3.4 in a million.

Six steps in Six sigma:

1) Identify the product your create or the service you provide.

SSIBM -2009 38

WCCLG, TUMKUR

2) Identify the customer(s) for your product or service and determine what they

consider as important.

3) Identify your needs to provide product/ service so that it satisfies the customer.

4) Define the process for doing the work.

5) Mistake proof the process and eliminate waste effort.

6) Ensure continuous improvement by measuring, analysing and controlling the

improved process.

Six sigma journey at WCCLG:

Started with a lot of skepticism in 1997.

Got early success at Tumkur and Amalner in 1998.

Expand and explode six sigma in all locations in 1999.

Created an example of success for the corporation in 1999.

Created a model for driving six sigma by target setting, reviewing structure and

institutionalizing game.

Few leanings from deploying 6 sigma

It is rigorous

High bench –marking

Requires commitment from the highest level of

management

Requires a lot of tolerance for endless questioning

Requires the business leader drive change from the

front in letter and spirit.

Reuires the tenacityand mental toughness and above

all a dedication to the pusuit of excellence

SSIBM -2009 39

WCCLG, TUMKUR

System

Inventory control System

An efficient and well equipped “stores” section is an asset to effective inventory

control. Stores are the place where raw material and other purchases are kept. In stores

department, the materials are classified according to the needs of the production department.

Purchasing is done through brokers. In case of any delay in delivery, debit note is

issued and penalty is levied for which broker is responsible. The commitment register is

maintained which is a book of prime checking. Separate books are maintained for imported

oils and other locally bought oils. The commercial manager is authorized to purchase the bulk

oil in expectation of increase in oil price in future but, the excess cash ploughed for this

purpose gets interested i.e. interest is charged for excess cash used

The materials after being ordered by purchase section come to the stores which

undergo for inspection, after that only material are stored as per the needs of various

production departments. The rejected materials are kept aside and sent back to suppliers.

Certain materials bought are tested by quality assurance lab and only after its verification

materials are accepted and stored.

The stores section is spacious and also has a cold storage area in which materials are

kept to prevent any kind of deterioration. Computerization of purchase departments facilitate

the easy access to information relating to the stores such as stock position, value, quantity of

raw material issued, quantity remaining etc.

The main functions of stores are:

Receipt of raw material from vendors after verifying delivery Chelan

Inspection of raw material

Issuing of user departments by issue slips

Updating of stock ( stock verification)

Stores work in close co-ordination with purchase and finance department. For

procurement of raw material, standard is set by commercial manager for maintaining quality

level which is an element according to Wipro.

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Staff

Staffs are the people who are thinkers of any organization. They play a key role in the

success of their respective departments and thereby reach the goals of an organization as a

whole. More importantly, the success depends on how the staff is categorized into different

levels, such that each level caries on the work duly bestowed on them.

DUTIES AND RESPONSIBILITIES

MANAGER MAINTENANCEResponsible for :-

Effective Maintenance of Integrated Management System through review and updating.

a) Planning and Implementation of Environmental Management Programs

b) Planning and Implementation of Safety Management Programs

Maintaining Integrated Management System records. Housekeeping and maintaining safe working condition in plant.

Identify training needs and imparting on the job training.

Proactive participation in various review meeting.

Calibration of critical gauges and equipments.

Identifying and implementing corrective and preventive actions.

Play a supportive role in Benchmarking exercise

Playing supportive role in maintaining efficiencies at all stages of

production operation.

Complying with IBR, Factories Act and Electrical Regulations..

Responsible for operation & Maintenance of TSP ammonia

Compressor, Boiler house.

Project estimation, planning and implementing.

Maintenance of equipment and machines in all the plants.

Spread a culture of excellence to vendors / contractors

Communicating relevant procedure / requirements to venders /

contractors

SSIBM -2009 41

WCCLG, TUMKUR

OFFICER MAINTENANCE / SHIFT INCHARGE

Responsible for :-

Maintaining Integrated Management System records.

Planning and Implementation of Environmental Management Programs

Planning and Implementation of Safety Management Programs

Housekeeping and maintaining safe working condition in plant.

Calibration of all gauges and equipments.

Identifying and implementing corrective and preventive actions.

Playing supportive role in maintaining efficiencies at all stages of production

operation.

IBR, factories act and electrical regulations.

Responsible for operation and maintenance of TSP ammonia Compressor, Boiler

house

Project estimation, planning and execution.

Issue of spares and engg. Materials for use in plants.

Maintenance activities of various equipments in the plant.

OPERATORS :

Responsible for :-

Carry out & maintain the Maintenance activities, operation of Chilling plant

Ammonia Compressor plant.

Implementation of Environmental Management

Programs as per plan

Implementation of Safety Management Programs as

per plan

HELPERS/ASSISTANTS

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WCCLG, TUMKUR

Responsible for :-

Implementation of Environmental Management Programs as per plan

Implementation of Safety Management Programs as per plan

Shared value

Winning is about making customers successful. Winning is about making all

stakeholders successful. In business, Winning is not about ‘Winning Against’ but it’s about

‘Winning With.’

Intensity to win is the burning desire to stretch and challenge our limits. It’s the desire

to realize and expand our potential. It’s about continuous innovation and striving to be better

every time. It’s about excelling in everything we do. It’s about multiplying forces as a team.

No one wins 100% of the time, but those who have the Intensity to Win, win more often than

not.

Vision:Fuelled by culture and values

Wipro is built on a foundation of Values. The values form the essence of their culture. The

values are a guide to their behavior. With 75,000 people across 29 countries, its’ the values

that ties them together that is what makes Wipro, Wipro. They call their values the Spirit of

Wipro.

The spirit of Wipro is deeply rooted in their history and in what they are, and at the

same time is soaring with their aspirations. Each Wiproite is expected to live the Spirit of

Wipro- manifest it in thought and action.

Spirit Of Wipro

Intensity to win

Make customers successful

Team, Innovate, Excel

Act with Sensitivity

Respect for the individual

Thoughtful and responsible

Unyielding Integrity

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Delivering on commitments

Honesty and fairness in action

The spirit of wipro is an invisible synthesis of all three statements. It means manifesting

intensity to win, acting with sensitivity and being unyielding on integrity all the time.

Mission:

Quality has always been a strong part of Wipro’s proposition. Wipro boasts of many

pioneering achievements in quality journey. Quality is focused on not only in the product

or service that touches its customers, but also on internal processes and as an enabler

facilitating on going business transformation to meet dynamic market challenges.

Quality policy:

Their quality policy shall be:

1. To sustain a competitive edge in quality through continuous assessment of

customers expectations and needs.

2. To pursue excellence in all aspects of production operation.

3. To promote a culture of conforming to specifications and requirements.

4. To involve people at all levels in the pursuit of excellence.

5. To spread a culture of excellence to all the vendors.

Environment, Health and Safety Policy

We at Wipro Consumer Care engaged in manufacture of Soaps, Fatty Acids, Glycerin

are committed to provide safe and healthy environment to all our employees and

stakeholders through suitable Environment Management Systems aimed at:

1. Prevention of pollution and workplace hazards through compliance

with relevant legislations, regulations, applicable to our organization and

operations.

2. Conservation of natural resources by efficient use of energy, water and

effective utilization of all raw materials and resources.

3. Prevention of losses by way of damages to environment, personal

injuries, loss of life case by fires, accidents and security lapses.

4. Continual improvement of Organization’s, environmental,

occupational health and safety performance through periodic reviews of

the systems, its processes and training of employees at all levels.

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SWOT Analysis of the Company

Strengths:

1) Wipro consumer care is certified by ISO 9001, ISO 14001, ISO

18001 and all these certifications integratedly contributed to Integrated Management

System.

2) Wipro’s business engine is powered by people, process and

infrastructure excellence. It is fuelled by culture and values, innovation, brand, good

governance and good citizenship.

3) Wipro are the pioneers of process excellence in Information

Technology. In the world of IT they have been the first to deploy and ingrain ISO,

Six Sigma. CMMi, PCMM and Lean.

4) Their scalable, robust processes have delivered value to customers

through their Global Delivery Model, Software Factory Model and the Offshore

Delivery Centre Model.

5) For consumer care and lighting products, it has access to more

than 1.5 million retail outlets. This distribution reach provides Wipro with a

significant competitive advantage and allows it to grow business with minimal

increases in personnel.

6) The ability to retain highly skilled personnel is enhanced by

leadership position, opportunities to work with leading edge technologies and focus

on training and compensation.

7) Wipro’s strengths in Research and Development services position

it to take advantage of a recovery in global research and development spending.

Weakness:

1) Wipro’s failure to complete fixed price, fixed time frame contracts on budget and

on time may negatively affect the profitability, which could decrease the value of

the shareholders investment.

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2) Wipro is investing substantial cash assets in new facilities and physical

infrastructure, if the business does not grow proportionately, the profitability could

be reduced.

3) Most of the client contracts can typically be terminated without

cause and with little or no notice or penalty, which could negatively impact Wipro’s

revenue and profitability.

4) Communication between the company and endusers is not

satisfactory.

Opportunities:

1) Wipro has the opportunity to engage in future acquisitions,

investments, strategic partnerships or other ventures that can enable to anticipate

and develop new services and enhance existing services in order to keep pace with

rapid changes and in echnology and the industries on which it focuses.

2) The BPO services revenue depend to a large extent on a small

number of clients and the revenue could decline if a major client reduces the volume

of services obtained. Wipro has the opportunity to increase the client base.

3) Low quality, delay in service, inability in customized design

and requirement, inferior finishing of other brands have posed an opportunity for

Wipro to capture major share in the market.

Threats:

1) Wipro focuses on high growth industries, such as networking and

communications. Any decrease in demand for technology in such industries may

significantly decrease the demand for its services, which may impair the growth and

cause the revenues to decline.

2) The revenues and expenses are difficult to predict due to fluctuation,

given the nature of the markets. This increases the likelihood that results could fall

below the expectation of market analysis, which could cause the price of equity

shares and ADSs to decline.

3) The revenues could be significantly affected if the governments, in

geographies that Wipro operates in, restrict companies from outsourcing work to

foreign corporations.

SSIBM -2009 46

WCCLG, TUMKUR

4) An economic slowdown, terrorist attacks in the states and other acts of

violence or war could delay or reduce the number of new purchase orders and

disrupt operations in the United States, thereby negatively affecting the financial

results and prospects.

5) Restrictions of immigration may affect the ability to compete for and

provide services to clients in the US, which could hamper growth and cause revenue

to decline.

SSIBM -2009 47

WCCLG, TUMKUR

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BALANCE SHEET AS ON 31ST MARCH 2007

(Rs. In Million)

SOURCES OF FUNDS

Shareholders’ Funds

Share capital

Share application money -

pending allotment

Reserves and surplus

Loan Funds

Secured loans

Unsecured loans

Minority interest

2007 2006

2,918

35

93,042

2,852

75

63,202

95,995 66,129

1,489

2,338

451

307

3,827

29

758

99,851 66,887

(BALANCE SHEET CONT....)

SSIBM -2009 49

WCCLG, TUMKUR

APPLICATION OF

FUNDS

Fixed Assets

Good will

Gross block

Less: Accumulated

depreciation

Net block

Capital work-in-progress and

advances

Investments

Deferred tax Assets (Net)

Current Assets, Loans and

Advances

Inventories

Sundry debtors

Cash and bank balance

Loans and Advances

Current Liabilities and Provisions Liabilities

provisions

Net Current Assets

9,477

37,287

18,993

3,528

24,816

12,911

18,294

10,191

11,905

6,250

37,962 21,683

33,249

590

4,150

29,391

19,822

16,387

30,812

594

2,065

21,272

8,858

12,818

69,750 45,013

33,667

8,033

18,527

12,688

41,700 31,215

28,050 13,798

99,851 66,887

SSIBM -2009 50

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SSIBM -2009 51