Major fertiliser companies are spending a significant amount of money on welfare schemes for their employees. This study of 125 major companies, however, reveals a marginal increase in the ratio of welfare expense to total income to 0.68 per cent in 1998-99 from 0.67 per cent in the preceeding year.

The biggest contributor in welfare expenses was Tata Engineering which set aside Rs 79.73 crore to meet welfare expenses. Others in the top 10 included Larsen & Toubro (Rs 74.15 crore), Reliance (Rs 59.42 crore), M&M (Rs 40.54 crore), Hindustan Lever (Rs 35.96 crore), GSFC (Rs 30.21 crore), Mico (Rs 29.69 crore), Ashok Leyland (Rs 26.80 crore), Eveready (Rs 26.53 crore) and ITC (Rs 24.64 crore).

In 1998-99, engineering and construction giant Larsen & Toubro's personnel and human resource functions were awarded ISO certifications. The construction group received the prestigious national award for HRD practices from the Indian Society for training and development.

On the other hand, rural development and social welfare constitute an integral part of the Telco's philosophy for growth. The Company's Human Resource Development Group was awarded the Nicco Trophy for excellence in human resource development for the year 1998-99 by the Confederation of Indian Industries (Eastern Region).

Companies with large welfare expenses did not necessarily figure at the top of the league in terms of welfare expenses to total income ratio. Here Eveready with 3.28 per cent took top honours. Others in the top 10 included Indian Hotels (2.88 per cent), ABB (2.73 per cent), EIH (2.42 per cent), Blue Star (2.32 per cent), Mico (2.23 per cent), Escorts (1.65 per cent), GSFC (1.44 per cent), Birla Corp (1.41 per cent) and Colgate-Palmolive (1.38).

Eveready spent more money for improving the water supply and electricity to the workers in tea estates. Efforts in developing the infrastructure facilities in and around the tea estates continue and emphasis is laid on overall development in respect of child care, cultural and educational activities.

Of the 125 companies, 50 firms witnessed a fall in welfare expenses to total income ratio while 70 companies notched up a higher ratio in 1998-99 over 1997-98. Remaining five companies ratios are same in both the years.

Significant declines in the ratio were witnessed in the case of NIIT (1.89 per cent in 1997-98 to 0.95 in 1998-99), Reckitt &Colman (1.39 per cent to 1.18 per cent), Bata (1.27 per cent to 1.16 per cent), Infosys Technologies (0.91 per cent to 0.60 per cent), Philips India (0.96 per cent to 0.67 per cent), Smithkline Beecham Pharma (0.94 per cent to 0.79 per cent) and Nicholas Piramal (0.98 per cent to 0.80 per cent).

A significant improvement in 1998-99 was noticed in the case of ABB (2.33 per cent in 1997-98 to 2.73 per cent in 1998-99), EIH (2.08 per cent to 2.42 per cent), Motor Industries (1.71 per cent to 2.23 per cent), GSFC (1.21 per cent to 1.44 per cent), Birla Corpn (1.23 per cent to 1.41 per cent), LMW (0.92 per cent to 1.23 per cent) and Apollo Tyres (0.67 per cent to 0.91 per cent).

An attempt has been made to compare the ratio of welfare expenses to total income for 125 major companies spread over 20 industries for 1997-98 and 1998-99.

The ratio of welfare expenses to total income for 20 industries has also been studied. The ratio has declined marginally from 1997-98 to 1998-99 in the case of aluminium (1.12 per cent in 1997-98 to 1.04 per cent in 1998-99), electricity (0.41 per cent to 0.38 per cent), electrical goods (1.00 per cent to 0.95 per cent), computers (software & hardware) (0.96 per cent to 0.70 per cent), paper and paper products (0.74 per cent to 0.72 per cent), pharmaceuticals (0.71 per cent to 0.66 per cent), manmade fibres (0.43 per cent to 0.42 per cent), tobacco (0.33 per cent to 0.32 per cent) and diamonds and jewellery (0.05 per cent to 0.02 per cent).

In the diamond &jewellery industry (2 units), a significant decline of -55.0 per cent in welfare expenses during 1998-99 pulled down the ratio of welfare to total income during 1998-99 from 1997-98.

In pharmaceuticals industry, Nicholas Piramal India showed a decline of -32.6 per cent to Rs 3.59 crore in welfare expenses during 1998-99 from Rs 5.33 crore during 1997-98.

An increase in the ratio can be seen in the case of auto and auto ancilleries (0.95 per cent in 1997-98 to 1.00 per cent in 1998-99), engineering others (0.91 per cent to 0.93 per cent), fertilisers (0.68 per cent to 0.69 per cent), cotton textiles (0.38 per cent to 0.42 per cent), paints (0.55 per cent to 0.57 per cent), tyres & tubes (0.76 per cent to 0.91 per cent), hotels (2.57 per cent to 2.68 per cent) and misc (0.45 per cent to 0.48 per cent).

In the cotton textile industry (3 units), a significant increase of 19.6 per cent in welfare expenses during 1998-99 pulled up the ratio of welfare to total income during 1998-99 from 1997-98.

In the tyres & tubes industry, MRF showed an increase of 37.5 per cent to Rs 18.50 crore during 1998-99 from Rs 13.45 crore during 1997-98.

Three industries namely cement and cement products (0.69 per cent), chemical others (0.46 per cent) and food products (0.41 per cent) showed same ratios in both the years.

The highest and lowest welfare to total income ratio during 1998-99 can be seen in the case of hotels (2.68 per cent) and diamonds & jewellery (0.02 per cent) respectively.

FE Research Bureau